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NOVEMBER 17, 1941
Newswee
10O¢
|THE MAGAZINE OF NEWS SIGNIFICANCE
ee
aE
eo a rd
Trucks, too, must
you need the extra depend- ability of quality-built Dodge Job-Rated Trucks *
Now .. More Power, too!
HORSEPOWER
HORSEPOWER
IN DODGE 112 -TON
% a
“BECAUSE OF _- CORPORATION ENGINEERING
nger!
@ These are days when extra quality, extra
dependability and extra power are needed! - Dodge gives you all three in super-powered Job- Rated trucks. They’re quality-built to deliver extra thousands of miles of dependable, efficient, low cost operation. They’re Job-Rated from engine to rear axle, “‘sized’’ right in every feature to do the job, and to stay on the job. See your Dodge dealer—today.
DODGE PRODUCTS FOR NATIONAL DEFENSE:
Command Reconnaissance Cars e Field Radio Cars e Troop and
Cargo Motor Transports *« Weapon Carriers « Army Carry-Alls e
Ambulances ¢ Duralumin Forgings for Bomber Fuselages ¢ Parts and Assemblies for Anti-Aircraft Cannons
PRICES AND SPECIFICATIONS SUBJECT TO CHANGE WITHOUT NOTICE
CAN DEPEND ON
DODGE bob fied TRUCKS
to 3-Ton Gas,
and Heavy-Duty Diesel
p00 yeur OF’
Ben ranklin’s
Wisdom
About 200 business years ago, Benjamin Franklin said,
** ?Tis foolish to lay out money in the purchase of repentance.’”
In this year of business foresighted leaders are saying—
“Tis smart to lay out money in the purchase of satisfaction.”
There is no money today for the article that misses or gives out.
There is plenty of money today for the arti-
cle that lasts, the article that pays its way, the article that produces now, next year and ten years from now. * * *
When we suggest getting the Mimeograph duplicator for the job today, we have in mind an efficient piece of equipment in your fac- tory or office ten years from now, or more. People never buy duplicators unless they need them. If they need them (and most concerns do), there is true foresight in getting the best—the one that will last.
The Mimeograph duplicator is built to “take it.” With its coordinated stencil sheets and inks, it rolls out all the duplicating work you need from a 3 x 5 label to a 1000-page report, or a complicated form. It will keep your secrets. You can operate it yourself. Its work is neat, permanent and accurate. It is beauti- ful to look at; more beautiful for the help it renders. There are distributors in leading Cities to project its many uses for your line of business. Feel free to call on him for a survey of your own paper work without cost or obli- gation to you. A. B. Dick Company, Chicago.
COPYRIGHT 1941, A. 6. DICK COMPANY
MIMEOGRAPH DUPLICATOR
Mmeocrapnis the trade-mark of A. B. Dick Company, Chicago, registered in the U.S. Patent Office. ©
SCALES HELP PERFECT THEM /
CALES help design airplanes?
Yes, they help vitally! In wind tunnels where airplane designs are tested, scales are the instru- ments which give engineers the figures they need.
And that’s just ove of the un- usual jobs modern Fairbanks Scales are doing for industry! For today there are scales which count small parts or products, weigh
while materials are on the move, print records and receipts, add up weights and record totals, and weigh predetermined amounts automatically.
It’s quite possible that Fair- banks-Morse Scale engineers could point out unsuspected but profitable applications of mod- ern scales in your plant. Their knowledge and experience are at your service in solving any weigh- ing problem. Write Fairbanks, Morse & Co., Dept. K61, 600 S. Michigan Avenue, Chicago, III. Branches and service stations throughout the United States and Canada.
Fairbanks Dial Scale head with Printomatic Weigher. Weights and related data may be printed on tickets, roll tape, ticket and tape... even on sheets as wide as 18 inches.
DIESEL ENGINES ELECTRICAL MACHINERY
PUMPS MOTORS WATER SYSTEMS
FARM EQUIPMENT AIR CONDITIONERS
2 NEWSWEEK
vo. xv IN DEX No. 2 for November 17, 1941
oe —-.
ART 62 AVIATION 4 BOOKS 63 BUSINESS, LABOR, AGRICULTURE = 4 DEFENSE 36 EDUCATION $5 FOREIGN AFFAIRS 22 FOURTH ESTATE
LETTERS Q MOVIES 55 MUSIC 59 NATIONAL AFFAIRS 15 PERISCOPE 1 RADIO : 66 SCIENCE 58 SPORTS 52 TRANSITION 8 Business Tides, Ralph Robey 48 Entertainment Week, John O’Hara BY Perspective, Raymond Moley 68 Sport Week, John Lardner 54 Washington Tides, Ernest K. Lindley 17
War Week Maj. Gen. Stephen O. Fuqua Qi! Admiral William V. Pratt 98
Cover Picture: Wide World (Story on Page 36)
Published by WEEKLY PUBLICATIONS, INC. 850 Dennison Avenue, Dayton, Ohio. Entered as second class matter at Postoffice of Dayton, Ohio, under the Act of March 3, 1879.
LETTERS
Such Fun
In your Letters Section for Nov. 3, under the heading “Fun With Figures,” Mr. Woodhull’s explanation of: “Take any three figures, no two alike—reverse and subtract the small sum from the large sum —reverse the answer—add the last two rows and the answer is always 1089” works out very well with the figures he used in his example. But it won’t work with any three figures where the difference between the first and third number is only one.
T. H. MEARNS
Valley Stream, N. Y.
This worked beautifully until I tried 968—869—99 + 99—=198. Now what do | do?
JOYCE PETRIKAT
University City, Mo.
’ Either Mr. Woodhull’s explanation or his memory is at fault. D. 0. McHUGH Omaha, Neb. _
Several obstreperous numbers refuse to furnish Mr. Woodhull’s result, when the difference between the first and last digits of any number is one. There are 29 of these
ge 36)
VS, INC. ntered as ton, Ohio,
Nov. 3, ‘igures,” ‘ake any rse and rge sum last two y” works used in vith any between one.
EARNS
I tried 1at do |
RIKAT
ation or
CHUGH
refuse to then the ist. digits ) of these
Birth of a Battleship
A typical example of B. F. Goodrich leadership in truck tires
N THE world’s largest Iron Range,
the Mesabi of Minnesota, pic-
tured here, they’re mining ore 24 hours
a day. And it’s here that battleships
are born—and tanks and trucks and planes and machine tools.
They’re moving ore faster than it’s ever been moved before. And they’re depending on rubber to haul it off— tons and tons at a crack. On special tires designed by B. F. Goodrich €ngineers to stand up under punish- ment you’d never believe rubber could take, giant earth-moving vehicles wheel mountainous loads over. any kind of surface—even jagged rocks.
You may have no need for “earth movers.” But the development of these special “tough job’ truck tires is typical of the research constantly in
progress at B. F. Goodrich to provide a better truck tire for every purpose.
Take the new Speedliner Silvertown. In developing this truck tire, B. F. Goodrich engineers tossed away all old ideas of how a truck tire should be built—started right from scratch. As a result the Speedliner was designed on a new principle.
For example, in this new type truck tire you get athicker, heavier, deeper-cut, flatter tread. There’s a tremen- dous volume of extra rub- ber scientifically distribut- ed to give you the most in extra mileage.
And both tread and
body are fortified with Duramin, the amazing
B. F. Goodrich chemical discovery that keeps rubber young, prolongs tire life.
Actual mileage comparisons by truck owners prove this new Speedliner is delivering 25% more mileage than even our own great Silvertown of last year! Get the whole money-saving story! See your B. F. Goodrich Dealer or Goodrich Silvertown Store.
“Goodrich
FIRST IN RUBBER
At
ountry Club...
or Country Store
America’s most distinguished beer is waiting for us just
about anywhere we ask for
it e Some drink it in costly crystal at fashionable
country clubs. Some buy it across the counter in
friendly country stores « That famous flavor
found only in Schlitz is one of life’s finer things
that everybody can afford. Lovers of good beer
know there is no substitute for a beer so fine it
madea
Copr..194!, Jos. Schlitz Brewing Co., Milwaukee, Wis.
BROWN BOTTLES, CANS, ON DRAUGHT
city famous.
a ° we og oS THE BEER THAT MADE MILWAUKEE FAMOUS
4 i NEWSWEEK
Se em Ty
numbers and of course the reverse of e:ich one. E. R. JONES udge County Court of Prowers County Lamar, Colo.
While I was showing off my mathemitti- cal ability, I was confrontea with 8357, Next time it might pay to be correct in your problems.
RUTH FELLEk Mogadore, Ohio
I suggest you take 574 and try this on your new piano and see if you can get it
to work. R. E. DINGMAN
New York City Suggest Ralph Woodhull try this puzzle on 524, 625, 726, 827, 928. If he can get 1089 as an answer, I'll give him a year’s subscription to NEWSWEEK. R. 0. McDONALD Washington, D.C.
Mr. McDonald owes Mr. Woodhull a year’s subscription for the following ex- planation, which incidentally was arrived at by only one of the hundreds of readers who “corrected” him:
I sure started something with my letter. I still insist I am correct, as those who have written me have failed to carry out the cipher as follows: 241 —142
099 +990
1089
; RALPH WOODHULL Bridgeport, Conn.
The Marines Have Landed
It was very distressing to us to see that the Navy couldn’t offer you a photo more accurate than the one you had for the cover of your Oct. 27 issue.
It is very obvious that the sailor in the foreground is wearing civilian socks. Surely our first line of de- fense must have a stray pair of regula- tion socks somewhere for this unfortunate man. Or do we ex- cuse him on the ground of being a boot who hasn’t had time to put in a chit for small stores?
P.F.C. MATTHEW BRAIDIC P.F.C. PHILIP HUTSON
U.S. Marine Corps
Marine Barracks, Naval Air Station
San Juan, P.R.
emiiti- h 847, rect in
The RIGHT Chassis — Body
6 DIFFERENT 126 CHASSIS AND WHEELBASES BODY COMBINATIONS
dhull a ing ex- arrived readers
-d see that to more
FORD ENGINE AND PARTS EXCHANGE PLAN
Will Keep ‘Em Rolling Through The Hard Truck Days Ahead
@ As a plus value when you buy a Ford Truck, you receive the benefits of a plan that extends the life of your truck far beyond the many thousands of miles you normally expect it to serve. Under this Ford Engine and Parts Exchange Plan, many vital parts, including the engine itself, may be exchanged, when necessary, at minimum cost and without loss of valuable time. Ask your Ford dealer for details of this service that means extra savings to you!
FORD MOTOR COMPANY
Builders of Ford and Mercury Cars, Ford Trucks, Commercial Cars, Station Wagons, Transit Buses
The RIGHT Engine
4 DIFFERENT ENGINES
« The RIGHT TRUCK
For Todays Tough
D0 hp V-8, the new 90 hp "6", and the super-economy "4" — offer you the most flexible peower-range in the entire truck field. All the proved Ford economies . . . low first cost, low operating cost, low maintenance cost + +» are yours in a truck that's right
times, for your job!
ACTION NOW
while time | is on our side
MERICA is at last awake...awake to the
A need for action in defense work and in
better planning for essential civilian needs. Keep
every man on the job. The threat of a winter epidemic
of colds, influenza, of needed employees absent at
critical times, is an intolerable prospect. Intolerable
because so largely preventable. The time to take action is now, before winter colds break out.
To that end the banishment of “germ exchange” conditions at the drinking fount, the water cooler, the soda bar, is a matter of business expediency.
DIXIE CUPS remove this contagion hazard. For Dixies are used but once, then destroyed.
Throughout the land, at camp and cantonment areas, on the railroads, at theaters, restaurants, soda fountains and on construction jobs, DIXIE CUPS bear witness that today protecting the public health
is the business of every one of us.
*
Tee
“It tastes better when you KNOW the cup is clean.”
PRODUCT OF DIXIE-VORTEX COMPANY, EASTON, PA., CHICAGO, ILL., TORONTO, CAN.
* Rs BUY U.S. DEFENSE BONDS
———
Newsweek
THE MAGAZINE OF NEWS SIGNIFIOANCE Registered U. S. Patent Office
Matcotm Muir, President and Publisher
Raymonp Motey, Josepu B. Pain, Contributing Editor Managing Edito;
Cuester L. SHAW Assistant Managing Editor
ASSOCIATES
Maj. Gen. Stephen O. Fuqua, U.S.A. Retired Military Affairs; Admiral William V. Prat, US.N. Retired, Naval Affairs; Ralph Robey, Business Tides; John Lardner, Sport Weel: John O’Hara, Entertainment Week.
ASSOCIATE EDITORS
C. E. Fisher, News Editor; Edward W. Barrett Periscope; Bert C. Goss, Business, Labor, anj Agriculture; Harry F. Kern, Foreign Affair William T. Shenkel, National Defense; Harding
T. Mason, Executive Assistant, WASHINGTON BUREAU
Ernest K. Lindley, Chief of Bureau; Walte Fitzmaurice. Assistant Chief of Bureau; Rich ard J. Davis, Herbert C. Freeman Jr., Joy J, Holman, George MacGonnigle, Wesley Mc Cune. James P. O’Dounell, Gordon Stott.
DEPARTMENT HEADS Anthony J. Ballo, Make-up; James W. Welk,
Librarian; Dorothy Woolf, Assistant Nem Editor.
ASSISTANT EDITORS
Loren Carroll, Emily Coleman, Z. D. Cook, Atlan Finn, Roland C. Gask, Gordon C. Hamil. ton, John Horn, Nelson Lansdale, Thursta Macauiey, John T. McAllister, Albert H. Nev- man, John Pfeiffer. Niles W. von Wettbers, Adrian Weinberg, Thomas H. Wenning, Rober G. Whalen.
EDITORIAL ASSISTANTS
Lawrence Arany, A. T. Baker, Olga Barbi, William W. Boddie Jr.. Lucette Colvin, Helen Davis, Fred E. Galbraith Jr., Nancy Gantt,
_ Edward Shippen Geer, Fred J. Harsaghy, Emilie
M. Hatfield, Diana Hirsh, Wallace Irwin Jr, Hilda Loveman, Frank G. McCusker, Anne Moisson, Elma S. Nagle, Marian Pattee, Ruth Rascoe, Gwen Reese. Ann Hollyday Sharp, Ruth Werthman, Evan M. Wylie, Gerson Zelman.
PHOTO AND ART DEPARTMENT
Homer A. Cable. Editor; Pat Terry, Chi¢ Photographer; Richard F. Dempewolff, Rose marie Hoffman, Frank Manning, Jack Rollo, I. J. Starworth, Harry J. Turco.
—<
T. F. Mue.zer, General Manager; Cuaruss F. Boer, Sec. Treas.; ARTHUR V. ANDERSON, Ad- vertising Manayer; W. R. Petxus, Circulation Director. Copyright, 1941 by Weekly Publica- tions, Inc. Printed in U.S.A. Editorial and exec- utive offices, Newsweek Building, Broadway & 42nd Street, New York.
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a dressed to the Circulation Department NEWSWEEK, , 15)
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BOARD OF DIRECTORS Vincent Astor, Chairman E. Rotanp Harriman Matcoitm Mun A. H. Locxerr Cuar.es F. BoMER
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[OANCE
PHILLins, g E:itor
or
\. Retired V. Pratt Dh Robey, ort Weel,
N. Barrett Labor, and m Affairs e; Harding
wu; Walter eau; Rich Jr., Joy J, esley Moll Stott.
W. Welk,
ant New
D. Cook, .C. Hamil. ~ Thurston rt H. Nev-
Wettberg, ing, Robert
Iga Barbi, lvin, Helen ney Gantt, ghy, Emilie
Irwin Jr, sker, Anne uttee, Ruth harp, Ruth m Zelman.
iNT
srry, Chief rolff, Rose jack Rollo,
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cr €ate and extend them
territories and . America: one s, 10
1d a VSWEEK, . 151 Jennison Ave.
BELL TE LEPHON
YRS an
uM Mur -BoMeEr
“THE TELEPHONE HOUR” is broadcast every Monday evening aver the N.B.C. Red Network
Premium Quality without Premium Price
8 NEWSWEEK
TRANSITION °
Born: To Mary Martin, actress who leaped to fame in 1938 with her strip. tease singing of “My Heart Belongs to Daddy,” and Richard Halliday, her writ- ers’ agent-husband, a 7 pound 13-ounce daughter, at Hollywood, Nov. 4... To Dorothy Ruth Sullivan, Babe Ruth’s younger daughter, and Daniel J. Sullivan, a 7-pound 7-ounce daughter, at New York City, Nov. 8. Baseball’s idol thus becomes a grandfather.
Marriep: Cobina Wright Jr., of socicty and screen, and Corp. Palmer T. Beau- dette of the United States Army, at New
Acme
Mr. and Mrs. Beaudette
York City, Nov. 8. After a_ three-day honeymoon, the bridegroom returned to Fort Benning, Ga., for officer training, while the bride went to Hollywood to re- sume movie work. “Everybody,” said the bride’s mother, “has to make some sacri- fices in times like this.”
Divorcep: Boake Carter, columnist and radio commentator, by Beatrice O. R. Carter, at Philadelphia, Nov. 7.
Diep: Simon Guggenheim, 73, mining industrialist and senator from Colorado 1907-13, of pneumonia, at New York City. Nov. 2. In memory of his son, he founded the John Simon Guggenheim Memorial Foundation in 1925, providing fellowships in arts and sciences . . . Philip J. Roose- velt, 49, investment banker-yachtsman cousin of President Theodore Roosevelt, of a heart attack when his sailboat over- turned at Oyster Bay, L.I., Nov. 8... Henry W. Nevinson, 85, British author and famous roving war correspondent for more than 30 years, at Chipping—Campden, Gloucester, Nov. 9... William Sulzer, 78, ex-governor of New York, at New York City, Nov. 6. Sulzer was the only chief executive of the Em- pire State ever im- peached: in 1918, after serving but ten months of his term, he was found guilty of falsely swearing to campaign receipts and expenditures.
International Sulzer
S who
strip- ngs to r writ- Ounce > 2 To Ruth’s llivan, y York
>comies
society Beau- t New
icme
ee-day ed to uining, to re- id the sacri-
st and
O. R.
nining lorado : City, unded morial wships Roose- tsman sevelt,
over- i: or and * more ypden, er, 718,
1ational
Exquisite. 14K rosé gold. No. 4204E. $62.50
— CLAUDETTE
COLBERT
Panamounte new picure,"S kylarke"
le
NLY leading American designers and Elgin’s skilled workers could have given the new Lord and Lady Elgins such grace and beauty. Brilliantly they confirm America’s style supremacy. Elegance marks these master time- pieces. Cases are platinum, gold, or 14K gold filled. There are high-curved crys- tals, mirror-like surfaces, tinted dials. Others will admire the outward charm of your Lord or Lady Elgin. But there’s an even deeper satisfaction for you in the superb dependability it offers. For it contains 19 jewels or more. And it has all Elgin’s celebrated technical advances.
Smartly styled. 14K gold. No. 4505A. $110.00
Light origina -
14K rosé gold filled. No. 4303E. $55.00
ford olain fady cloin
14K gold filled. Bracelet. No. 4306B. $60.00
Distinguished for her exquisite taste, star of Broadway and Hollywood, Claudette Colbert is one of America’s leaders in style. She won the women’s open slalom race at Sun Valley this year .. . paints water colors . . . collects jade miniatures. “The new Lord and Lady Elgins,”’ says Miss Colbert, “‘are eloquent testimony to America’s artistry and creative ability in
the field of fashion.”
The Elginium hairspring* and Beryl-X balance are rustproof, non-magnetic.
Each Lord and Lady Elgin has its own Elgin Observatory Certificate for ability proved in a great time observatory.
Thoroughly American! Elgin is the world’s largest-selling fine watch made in America. And today Elgin craftsmen are also making precision instruments for army, navy and aviation use.
For Christmas—choose a Lord or Lady Elgin. Prices from $55.00. Elgin De Luxe watches from $42.50. Prices include Fed- eral Tax. Elgin National Watch Com- pany, Elgin, Illinois, U.S. A.
*Patent Nos. 1,974,695 and 2,072,489
Mirror-finish. 14K gold filled. No. 4699. $62.50
The Bracket Controls Your Tax
Question: “‘How would a gift to my daughter of 1/5 of my estate affect my tax liability? The present value of my estate is about $500,000, with an income of $25,000 a year.”
Answer: To illustrate the general problem, apart from individ-
ual circumstances, the gift of $100,000, with an income yield ©
of $5,000, would reduce your own net income by only $2,400, as you are subject to a high tax bracket. Your daughter, on the other hand, would be provided with a net income of $4,210, assuming that her taxable income is not more than $5,000. While the gift would incur a gift tax ranging from $3,465 to $7,920, depending upon allowable exemptions, this should be more than offset by lower estate taxes which, on the basis of present rates, are $32,800 less on a $400,000 estate than on a $500,000 estate.
Gift taxes will be increused January 1, 1942. Our booklet ‘‘The Present Tax Situation’’ may be had upon request.
BANK OF New York
New York's First Bank — Established 1784
COMMERCIAL BANKING . EXECUTOR AND TRUSTEE
48 WALL STREET « NEW YORK CITY — Uptown Office: MADISON AVENUE at 63rd STREET
Copyrigbt--1941, Bank of New York
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Vou. XVIII, No. 20
Newsweek
NoveMBER 17, 1941
The Perisco
|
Registered U. S. Patent Office
pe
What’s Behind Today’s News,and What’s to be Expected
in Tomorrow’s
U.S. War Role
Biuntly expressed, here’s the best avail- able picture of Administration plans re- garding the European war as of today: Roosevelt is thinking in terms of intensified naval warfare and of later sending a U.S.
| air force to Britain (not before mid-1942,
since it’s improbable that an effective air force could be sent to Europe before June). F.D.R. now has no intention of
; sending an AEF to Europe, although
aides say a few mechanized divisions might be sent to Africa to help the British. The President believes that, barring com- Russian collapse, the efforts of British-American air and naval forces, plus the psychological effect of American participation in the war, will gradually con- vince the German people that they have
been misled and can’t win. This, he hopes,
will eventually lead to overthrow of the Nazis and establishment of a new German
' government which will approve a “just
peace.”
Washington Trends
The Administration is rushing really
| enormous war preparations in the Pacific as
part of the plan to stand up to Japan 100°%. Large bomber forces are being hustled to U.S. outposts . . . Signs are that, with the Neutrality Act fight out of the way, the Administration will finally
| become much firmer about defense strikes,
about Congressional stalling on price con- trol, and about the defense effort in general ... The majority of Congressional Re- publicans are now “finding themselves” on foreign-policy issues. Most are coming to believe the best position for them political- ly is not isolationist, not outright interven- tionist, but “one step behind the Presi- dent” .. . Despite the President’s appeal, higher taxes won’t be enacted before next year. Social-security tax increases are sure and some income tax deducted from wages is highly likely—but neither of them much before spring.
New Plane Route
Don’t be surprised if Pan American Air- Ways soon undertakes another giant op- eration like its present task of delivering planes to the Middle East via Africa. There are strong hints—without formal confirma-
tion—that Roosevelt will arrange to have the company fly planes to Russia by way of Alaska. Organizational details would be similar to those for the African delivery service.
Soviet-U.S. Gesture
If advance word from Moscow is correct, a dramatic gesture of Soviet willingness to cooperate with the U.S. in postwar re- construction will be made about the time Litvinoff takes over as new ambassador here. It will amount to full endorsement of
, Philadelphia Mint Scandal }
The lid has been kept tightly shut so far, but a whopping political scan- dal will be uncovered in the Phila- delphia Mint before many months pass. Investigators from _ several Federal agencies have been on the scene checking into political manip- ’ ulation, juggling of public funds, ’ wholesale violation of the Hatch § Act, and other unsavory practices. Since the inquiry started, the inves- tigators have been threatened, of- fered fat bribes, and subjected to heavy political pressure. At least ) two prominent political figures have 4 tried to quash the investigation. The case now seems certain to rock both state and Federal politics in Penn- sylvania.
the so-called Atlantic Charter, with Stalin, in effect, promising to adopt more demo- cratic policies. Best information is that Stalin was prepared to make the gesture when F. D.R. announced the billion-dollar Lend-Lease arrangement, then decided to withhold it until Litvinoff’s arrival.
Litvinoff Record
Washington’s “cordial welcomes” to Am- bassador Litvinoff should be discounted. He’s preferred to the unpopular Oumansky and is considered the most capable Rus- sian for dealing with the U.S., but Amer- ican officials think he pulled some fast ones when here in 1933-34 to negotiate for U.S. recognition of Russia and for other Soviet-American understandings. State Department and RFC people still in- sist he changed the terms of an agreement for settling the old czarist debt after previ- ously approving the proposal in F. D. R.’s presence. As a result, the debt negotiations fell through. There are other cases in which Washington claims Litvinoff altered his
earlier interpretations of important under- standings—and the capital hasn’t forgot- ten.
National Notes
F.D.R. has approved sending another 100 volunteer Army pilots to instruct in China, augmenting 100 already sent . . - GOP Chairman Martin, disapproving Will- kie’s support of Roosevelt foreign policy but seeking to avoid a Republican split, has been working hard backstage to stop the efforts to read Willkie out of the party . . » Roosevelt planned to appoint Dean Landis of Harvard Law School as Treas- ury Under Secretary to succeed Bell, who’s becoming permanent Assistant Secretary. But Senator Walsh of Massachusetts warned he would exercise his Senatorial prerogative and block the confirmation.
Trends Abroad
Last week’s news stories about a “counteroffensive” were overoptimistic. Military men regarded the Russian moves as, at most, counterattacks; felt that while Russia could continue to resist, it could not launch an offensive . . . Unseasonable heat and continued sandstorms have been the main factor holding up the expected Libyan campaign . . . Signs are that the much-denounced Nazi Ambassador to Ar- gentina, Baron von Thermann, won’t be ousted but may take an extended “leave of absence” . . . Britain’s food problem this winter will. be further eased because its - own farm production this year is the high- est in history.
De Gaulle’s Political Plans
Working backstage, Free French Gen- eral de Gaulle is trying to get a British commitment that he will represent France in any postwar settlement. So far, Church- ill has refused, holding that the decision is not Britain’s alone and that there is no need for it to be made now. Intimates say de Gaulle is worried about his political future, fearing that in the event of a Hitler collapse several French statesmen highly regarded by Britain and the U. S. will move in at the peace table.
Weygand Caution
General Weygand is still playing cagey in North Africa. Just as he has done be- fore, Weygand refused to commit himself on his future policy when he met secretly with a British emissary just before his last trip to Vichy. The British tried to sound him out on his attitude should British and
(No part of this or the next page may be reproduced without written permission)
12
NEWSWEEK
Free French forces conquer Libya. He hinted that British conquest of Libya would not be “unwelcome,” and then in- dicated that the matter of his breaking free from Vichy would depend on the out- look for the war as a whole. However, he is said to have characterized himself as a “realist” who believed that Russia would be defeated, that Japan would fight the Allies, and that the war would very likely end in a Hitler victory or, at least, in a stalemate.
Chinese Labor Recruiting
Just as they did in the World War, the warring nations are now trying to obtain quantities of Chinese laborers for behind- the-lines duties. In quiet negotiations in Chungking, the British are asking for 250,- 000 Chinese laborers for military and semimilitary work in India and the Middle East. German agents in Nanking, seat of the Chinese puppet government, are at least making a show of soliciting some 100,000 Chinese farm workers, boasting that Germany will have gained control of Siberian transportation facilities in time to bring the workers to Europe for spring planting.
Chinese Desertions
Although by no means reaching propor- tions that impair China’s fight against Japan, desertions from Chiang Kai-shek’s army have lately become a serious prob- lem. Some responsible sources estimate that as many as 200 men run away from training camps and 10 or 15 from front- line regiments each month. Many of these simply return to their farms, but some have gone over to the puppet Wang Ching- wei. The most grievous desertion in re- cent weeks was that of two pilots who flew a new Russian medium bomber over to Wang. Their stated reason: The prom- ise of higher rank and more pay. Chung- king has been trying to keep this incident quiet, fearing it might affect the shipment of U.S. planes to China.
Balkan Terrorism
London has linked the attempt to kill Ambassador Knatchbull-Hugessen in An- kara a fortnight ago with the bomb at- tack on Britain’s Bulgarian Legation staff at Istanbul last March. Both are said to have been the work of a band of Balkan terrorists, several of whom are still at large in Turkey. London claims evidence that they are in Nazi pay.
Foreign Notes
Lord Londonderry, British Air Minister under Baldwin, has prepared a book quot- ing letters and official documents to refute charges that he was pro-German and lax in his duties. He’s seeking permission to publish it. London insiders say the book is of “historical importance” . . . Expect a
teapot tempest in the Mexican press over Axel Wenner-Gren’s visit to Mexico to look over investment possibilities. The Swedish industrialist’s friendship with Gér- ing is well known . . . Maurice Chevalier, French screen and stage star now appear- ing in a Paris revue, has come out strong- ly for Franco-German collaboration.
Odlum vs. Nelson
A hot undercover fight has already de- veloped between SPAB Director Donald Nelson and Floyd Odlum, contract dis- tribution chief. Odlum has been seeking to save a few small businesses at least temporarily by giving them enough vital materials to keep them running. Nelson stepped on this idea, insisting Odlum should, for the present at least, devote all his efforts to getting the small plants into defense work. Nelson also was nettled be- cause Odlum announced his plans before discussing them fully with the SPAB.
FRB Confusion
The pay rises granted recently to em- ployes of several Federal Reserve Banks have precipitated a mild rumpus within the Reserve System. Chairman Eccles, champion of keeping wages down to avoid inflation, has opposed the move. He want- ed to avoid it as long as possible, fearing it would spur other bank workers and lat- er white-collar employes in general to de- mand like treatment. Most of the Reserve
banks agreed in theory but felt they -
couldn’t keep salaries down without hav- ing industrial companies lure away much of their white-collar personnel.
Production Progress
Top defense authorities are still far from satisfied with defense production progress. Nelson and Knudsen recently called on Roosevelt, complaining that the Army was still too slow in awarding con- tracts and getting production. Army men, called in later, calmed F.D.R. down. Now, to show the need for much greater speed, Nelson and Knudsen are seeking permis- sion to release item-by-item figures on contracts let and supplies delivered. Inci- dentally, the latest over-all figures, only partly publicized, are as follows: Approxi- mately $63,000,000,000 has been appropri- ated or authorized for defense, of which $57,000,000,000 is to be spent through contracts. Latest .available figures (Sept. 30) show contracts actually let for a total of about $37,000,000,000; actual disbursements totaled only $10,500,- 000,000.
Business Footnotes
. Friends of ex-SEC Chairman Jerome Frank, now a Federal judge, have been pushing him for the post of trustee of the
—
Associated Gas & Electric Co. He’s re. ported willing . New businessmen brought into the OPM are being give: a quick course in armament making at the Washington navy yard’s gun factory ... Talk about the Administration insisting on limiting farm prices and wages in the price- control bill is premature at best; it’s having trouble enough trying to get action on ‘he present milder plan; Henderson is now working on congressmen individually . . . Good forecasters say the FRB production index may reach a peak of 164 or 165 next month, averaging 155 for this year. They're guessing as high as 175 for the 1942 aver. age.
Entertainment Lines
At the Rockefeller office’s request, Uni-
_ versal will add a prologue to the Latin-
American issues of the Abbott-Costeilo film “In the Navy,” explaining that life in the U.S. Navy isn’t actually as zany as it appears in the film . . . Tipped off that complaints are in the offing although there have been no organized protests yet, Hol- lywood will ease up on the recent “sexy” trend in pictures . . . The song “Modern Design,” a parody on American Tobacco’s Pall Mall advertising, may soon become so popular it will have to be included in American Tobacco’s Lucky Strike Hit Parade broadcast.
Press Notes
The N. Y. Times, long famous for print- ing news and only news, is not only relax- ing its rules against front-page photos but is also about to introduce crossword puzzles ... Sen. Bennett Clark, fed up with being aroused late at night by inquiries from re- porters, got even last week. After being awakened by The Washington Post at mid- night, he phoned Eugene Meyer, Post pub- lisher, and served notice that each time hie was called from bed by a Post man, hie would retaliate by calling Meyer .. . Eric Knight’s best-selling British war novel, “This Above All,” will be offered for news- paper syndication about the first of the year.
What’s Happened To—?
Gen. Peyton C. March, U.S. World War Chief of Staff who had bitter differences with both General Pershing and General Wood over war policy, lives in an o'd- fashioned apartment house on Washiig- ton’s Wyoming Avenue, but spends winters in Florida. Now 77, he’s still in good hea’ th and likes to attend baseball games . William Lemke, former North Dakota Representative and Father Coughli’s
Union party Presidential candidate in 1936, makes his home in Fargo, N.D., but is away much of the time repre- senting law clients in Washington and Chicago.
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A WELL INFORMED PUBLIC IS AMERICA’S GREATEST SECURITY
VOLUME XVIII
November 17, 1941
Newsweek
The Magazine of News Significance
NUMBER 20
International
British convoys, now guarded by American planes, will soon be joined by U.S. merchantmen
Washington Sets a Stiff Pace mn Allied Action Against Axis
Huge Loan Advanced Russia as Tokyo Sends Envoy for Talks; Senate Repeals Ship Bans
On the banks of the Potomac and the Yangtze, the Thames and the Volga, an epidemic of coordinated activity against the Axis spread through Allied capitals last week. In Washington the Senate passed the Neutrality Act revisions to permit armed American merchantmen to sail any- where on the seven seas with war mate- rials for the battle fronts. President Roose- velt set up machinery to harmonize de- fense production with that of Canada, and, as he had done when Britain ran low on dollars, advanced a huge Lend-Lease credit to Russia. There were also significant de- velopments in two war-economy domestic issues: the President requested unprece- dentedly heavy taxes to forestall inflation, and the National Defense Mediation Board refused John L. Lewis’ demand for a union shop in “captive” coal mines.
Prime Minister Churchill, Premier Stalin, and Reichschancellor Hitler re- plied in their own fashions. As Washing- ton prepared to hear Saburo Kurusu make Japan’s final bid for a Pacific understand-
ing (see Washington Tides), Churchill promised in London that, in event of a Japanese-American war, Britain would join the United States “within the hour.” Concerning the loan, Stalin welcomed the “unusually substantial aid” in the “diffi- cult and great struggle against the com- mon enemy, blood-thirsty Hitlerism.” And of the Battle of the Atlantic, Hitler an- nounced on the eighteenth anniversary of his Munich beer-hall Putsch: “I have com- manded German ships, whenever they see Americans, not to shoot thereupon but to defend themselves as soon as they are at- tacked.”
Vote
Underneath the makeshift steel girders which support its glass roof, the talkfest continued for ten days before an almost empty Senate chamber. The 96 had tired of hearing themselves repeat the same old arguments which, they knew, would change no one’s vote on the pending re- peal of the Neutrality Act’s bans against arming American merchantmen and their entry into proscribed combat zones. The senators knew the repealer would pass whenever the flow of words halted. So those who bothered to come to the cham- ber busied themselves by catching up on
the mail, gossiping with their colleagues, or just plain dozing.
Only occasionally did the senators re- gain interest. Once was at the news, on top of the increase in the Reuben James casualty list to 101, that seventeen Amer- ican technicians who had volunteered to operate airplane detectors and other de- vices in Britain had been lost somewhere in the Atlantic.
By Nov. 7, the Senate was ready for a showdown. For the repealers, Chairman Tom Connally of the Foreign Relations Committee summed up by denying the iso- lationist contention that the bill’s passage would “automatically” mean war. But the Texan admitted: “I cannot say that we shall not have war.” For the stand-patters, Hiram W. Johnson of California replied as sole survivor of the “irreconcilables” who kept the United States out of the League of Nations. Holding on to his front-row desk and shaking his forefinger, the veteran Republican cautioned in a sobbing voice: “This is a question, after all, of peace and war. I say, declare war tonight and under the providence of God every man who votes to do so will live to regret it to the last day of his life.”
When the balloting began long after dinnertime, the galleries were so jammed for the historic scene that not another standee could be accommodated. The Senate floor itself was crowded by not only almost all the senators but also their secretaries and a host of visitors from the House of Representatives. The roll call
16
SA aa RT I I Ea ESE Eo a A AEA SATE A
NEWSWEEK
started: “Adams . . . Aiken ... Austin ... Bailey .. .”
At 9:22, it was all over. By 50-37, the Senate voted to reassert the traditional right of armed American merchantmen to sail anywhere on the seven seas. Voting in favor were not only 43 Democrats but also the lone Independent, George W. Norris, and 6 Republicans—including War- ren R. Austin, Styles Bridges, and Chan Gurney, whose initiative had prompted the Administration tc fight to remove the com- bat zones. In opposition, Burton K. Wheel- er led 15 Democrats, 21 Republicans, and the one Progressive, Robert M. La Follette Jr., whose father had joined Norris in fili- bustering Woodrow Wilson’s armed-mer- chantmen bill to death. Four senators were paired on each side. Only one was unre- corded, an unusual event.
The measure was returned to the House, and Speaker Sam Rayburn of Texas pre- dicted that the lower chamber, which had already voted 259-138 to arm merchant- men, would accept the removal of combat zones as well by 50 votes this week.
. .. Andrews
Loan
A mile and a half down Pennsylvania Avenue, the President was not idle while awaiting the Senate verdict. Finding the defense of the Soviet Union to be “vital to the defense of the United States,” Mr. Roosevelt pledged Russia $1,000,000,- 000 in Lend-Lease aid and directed Lend- Lease Administrator Edward R. Stettinius Jr. to work “as quickly as possible” to transfer this amount of war materials. This loan, ten times larger than previous advances made by the Treasury Depart- ment and the Reconstruction Finance Corp., bore no interest. It is to be paid back in ten years, beginning five years after the end of the war. In the mean- time, it may be partially liquidated by Red shipments of necessary defense ma- terials.
To bolster Russian morale, Mr. Roose- velt simultaneously assured Mikhail Kali- nin, Russia’s figurehead President, of the American desire “to do everything possible to assist your country in this critical hour.” He sent this note on the 24th an- niversary of Wilson’s severance of diplo- matic relations with Red Russia, follow- ing the October Revolution. Ironically, the Russian whom Wilson refused to ac- cept as first Communist Ambassador to the United States, Maxim Litvinoff, was that day appointed Stalin’s envoy to Washington.
The new ambassador, who had _ nego- tiated the treaty by which the President recognized his government in 1933, will succeed Constantine Oumansky, who at 39 was the youngest man ever to hold that rank in Washington. Russia’s most out- spoken advocate of collective security, Lit- vinoff was deposed as Foreign Minister before the Russo-German nonaggression pact of 1989. He reemerged from disgrace
~ ‘Harris & Ewing Litvinoff, new Red envoy
to be official interpreter at Stalin’s confer- ences with W. Averell Harriman and Lord Beaverbrook last month. Oumansky, who had been criticized in Washington for ex- cessive secrecy, was made head of Tass, the official Soviet news agency.
Significance
The Senate’s action dealt a mortal blow to the six-year-old effort to legislate peace. The Neutrality Act was based on the premises that the sale of munitions and loan of money to belligerents and the pro- vocative incidents at sea in 1914-17 had dragged the United States into a war which did not affect its security. As was indicated by the indifference of the Sen- ate to its own debate, events rather than arguments caused the scuttling of this act. First the repeal of the arms embargo, then the Lend-Lease Act, and now the Senate vote on the prohibitions against arming of merchantmen and their entry into combat zones have been the reflections on this side of the Atlantic of the German conquest of Europe.
What the repealer would mean in terms of action is this:
As soon as American merchantmen ar. rived in port, the Navy would bolt anti- aircraft and surface guns to their already stiffened decks and would man these guns with Navy crews already trained and se. lected. Enough guns of old vintages are available to arm every vessel destined {or danger zones, but the modern 5-inch dual- purpose weapons, manned with the most efficient crews, would go to ships intended for the dangerous route to Britain. These dual-purpose guns would serve both to keep enemy bombers high enough to im- pair their accuracy and to keep vulnerable U-boats submerged so that they have to use their few and costly torpedoes instead of deck guns.
A wholesale reassignment of American ships would be ordered. The slower ones would be assigned to convoys, which Amer- ican warships will protect all the way across the Atlantic, instead of only part way as at present. This grouping of slower merchantmen to permit the concentration of warships around them, which was the main solution to the U-boat menace in the World War, has some disadvantages: the entire convoy is limited to the speed of its slowest ship and makes an easy tar- get for wolf packs of U-boats. To counter- act these disadvantages, the availability of more ships for the route to Britain would permit the organization of fast and slow convoys. And the fastest ships would go it alone, depending for safety on their speed and guns, just as such vessels as the Levi- athan were not generally convoyed during the World War.
Such actions would make the nation’s position even nearer to open war than Mussolini’s “nonbelligerent” status before Il Duce declared war. In this role, the United States would be far more helpful to the Allies than it was in its unprepared-
ness for months after it declared war in .
1917. The question of a full-fledged decla- ration of war is one which would not be faced until this role has been fully tested. The course of the conflict, and especially of Hitler’s vaunted counterattacks to the American actions, would determine this nation’s future role. In any event, with the death of the Neutrality Act, America could not retreat.
-Anti-Inflation Taxes
To combat inflation, Secretary of the Treasury Henry Morgenthau Jr. last week appeared before the House Ways and Means Committee to urge passage of a new $4,800,000,000 tax bill, largest in the nation’s history. This would include an added income tax tu be deducted from payroll envelopes by employers (for de- tails, see Business Tides, page 48). But the vote-conscious congressmen, all facing reelection next year, “temporarily de-
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NOVEMBER 17,
——— EEE
1941
ferred” action on Morgenthau’s request.
This week President Roosevelt brought strong pressure to bear in behalf of the Secretary's proposals. Making public a letter to Rep. Robert L. Doughton of North Carolina, chairman of the Ways and Means Committee, he declared:
“If we are to prevent a further sharp in- crease in the cost of living and in the cost of the defense program itself, we must take immediate steps to absorb a large amount of purchasing power through ad- ditional taxes, and incidentally to pay cash for a greater part of our defense pro- duction . . . Taxation is a necessary com- plement of price-control legislation because the continuing effectiveness of price con- trol is largely dependent upon the restric- tion of a demand for goods.”
The President added this grim warning:
| “Unless we start within two or three
months to withdraw through taxes a larger part of the current national income, an even greater part may evaporate through inflation, and the upward spiral may gain
oo
Shanghai Good-by: U.S. Ma- res have been bouncing in and out of China intermittently since 1844. But last week, as the Leathernecks approached their 166th anniversary amidst growing Japanese-American tension, President Roosevelt dis- closed that the 970 remaining would probably be recalled.
17
(
WASHINGTON TIDES
)
Some Whys of Our Hard-Boiled Japanese Policy
by ERNEST K. LINDLEY
A high official of our government makes this stark analysis of the situa- tion in the Far East: “The chances of our having trouble with the Japanese are nine in ten.” By trouble he meant war.
This official is extremely well in- formed and noted for his level-headed judgments. His words must be read, however, in the light of the impending arrival of a special emissary from Japan, Saburo Kurusu. Kurusu’s visit may be the final effort to break by diplomacy the impasse between Japan and the Western Powers.
The Administration is prepared to be hard-boiled. If its diplomacy is to be successful, the public also must be hard-boiled. This means that the pub- lic must not flinch at the prospect of armed hostilities with Japan. War may be unavoidable. But it is less likely to occur if all doubt is removed from the minds of the Japanese about our read- iness to go to war if necessary. That is the meaning of the President’s an- nouncement that he is considering with- drawing our marines from China and also of the grim warnings from high of- ficials that the chances of preserving peace are slight.
The search for ways of improving relations between Japan and the United States was begun in March by Admiral Nomura, the Japanese Ambassador, and Secretary Hull. They had many long conversations. Concurrently Ambassa- dor Grew in Tokyo talked with other Japanese officials. By midsummer each side understood pretty - thoroughly where the other stood. Nomura sent his minister, Kaname Wakasugi, home to Tokyo for a formula. He returned with one and saw Hull twice and Under Sec- retary Welles several times. Other lead- ing Japanese called on both Hull and Welles. Nomura meanwhile diligently explored the views of influential Amer- icans, both in and outside the govern- ment.
Nomura has left no doubt about the earnestness of his desire for peace and rapprochement. But up to the present, it can be said on high authority, not even the vague outline of a formula has been found for reconciling Japanese -policy with ours.
The American position is this: Japan can have access to the raw materials
controlled by the British, the Dutch, and ourselves, plus credits to buy them, provided she quits the Axis, negotiates a peace leaving China’s sovereignty and territory intact, and agrees to respect the Open Door principle. But the Brit- ish and ourselves will not bring pressure on China to settle the Manchurian and other Sino-Japanese questions to suit Japan.
The Japanese position, as described by our officials, is this: They will re- orient their policy so as to put their Anglo-American and Axis relations at parity, shelve their Nanking puppet regime, and negotiate with Chiang Kai- shek, provided we halt our aid to Chiang and join with him in recogniz- ing the new order, which they assert will discriminate commercially against no one.
The real obstacle is Japanese ambi- tion to establish a great Far Eastern empire by military force. We insist that they renounce this plan. If they do, we will help them to find prosperity as a commercial power. So far they re- fuse. If they persist in the refusal, our officials expect the expansion to be car- ried out by these successive steps: (1) a drive from Indo-China through Yiin- nan Province to cut the Burma Road; (2) occupation of Thailand by nego- tiation or force; (3) an attack on Ran- goon.
If the Japanese go to Burma, they meet the British and the war is on with the Western Powers, including the Unit- ed States. Steps short of that may require retaliatory measures which make war inescapable. The possibility of a thrust into Siberia is not excluded, but our officials now doubt that the Japanese will attempt it unless the Germans bring the Russians to the verge of collapse.
Reconciliation seems impossible unless one side or the other gives way on the central point. On this, both seem adamant. The Administration reasons: The Japanese are in a box. Why let them out unless we are reasonably con- fident they are going to behave?
In this light, it is plain why responsi- ble officials display no optimism con- cerning Kurusu’s mission. They will listen to him patiently, but they doubt that he brings an acceptable formula.
+
18
such momentum that it will be difficult to regulate.”
In reply, Doughton agreed that the danger of inflation “must be of immediate concern to all of us.” He pledged his “earnest desire” to cooperate with the President.
Vote Vagaries
Many an unorthodox decision was slipped through the ballot boxes of the nation last week by vacillating voters.
q In White Plains, N. Y., Joseph F. O’Neill, a retired auditor, urged friends to vote against him for the $2;400-a-year job of tax receiver, saying: “I hate politics. No matter what you do in politics you’re wrong. Besides I like to fish.” Nonetheless he was elected and rued: “I'll have to take it now, I suppose, but they’re not going to hook me again.”
q In Garrison, N.Y., Samuel Sloan Duryee, New York attorney, was successful in his personal campaign to defeat himself as the Democratic candidate for Putnam County judge. He had been nominated against his will while on vacation.
q In Springfield, Mass., Merrick Winslow, who polled only 1,940 votes when he ran two years ago, announced this year that he wasn’t a candidate for alderman. He garnered 15,828 ballots—and lost again.
q In Yatesville, Pa., four housewives un- successfully opposed their husbands for town offices. “There is no ill feeling,” they announced. “We shook hands with our husbands. The men then left to celebrate the victory and we went home.”
{In Sewickley Heights, Pa., Loretta Bernsdorff, 22-year-old cook, was elected justice of the peace on the Republican ticket. “I won’t be able to accept the office,” she regretted. “My family is mov- ing next week to another township.”
q In Glen Cove, L.I., the electorate de- cided both to reduce City Judge Reginald Moore’s salary to $2,000 and to maintain it at $5,000 by voting an overwhelming “yes” on two conflicting amendments. Elec- tion officials explained that voters usually say “‘yes” to any proposition.
¥ In Queens, New York, Borough Presi- dent George U. Harvey had promised to move to Canada a year earlier if President Roosevelt was reelected, but later backed down, saying that his constituents “need me here now more than ever.” Last week his voters disagreed and replaced him with James A. Burke. The ousted officer will go north, but only to his farm near New Milford, Conn., to raise cabbages.
{ In Detroit, Billy Rogell, ex-shortstop for the Detroit Tigers who admitted he is a “green pea’ in politics, jomed Gus Dorais, University of Detroit football coach, on the City Council.
oe
NEWSWEEK
SES SEP SSDREY 2 PSSA ED SEI DE SD I SES SE TE a a a a Te LE En
La Guardia relaxed at a Philharmonic rehearsal election day .. .
Time To Be Mayor, seit dou or! EDITORIAL
divest himself of his outside civic ac- tivities: pa 4 the ap of Civilian Defense Commis- sioner, and Che big | = of being Mayor of New York rk City, A the energy he can
“4 devote to it. A te ty yeh. A talent and ability, as he has demonstrated. From The New York World-Telegram . then he got a spanking
Mayors of Other Cities
Akron Beacon Journal
Acme George Harter - Cornelius Scully Akron Pittsburgh
Edward Jeffries Detroit
Maurice Tobin Boston
Wide World
Frank Lausche Jasper McLevy Cleveland Bridgeport
Acme
Mayoral Races
Cleveland Provides an Upset; La Guardia Wins Third Term
On election day last week, Fiorello H. La Guardia became the first mayor to be elected to three consecutive terms in New York’s history and carried with him a majority of the important Board of Esti- mate. Endorsed by the Republican, Ameri- can Labor, United City, and Fusion par- ties, La Guardia, who spent two hours lis- tening to a rehearsal of the Philharmonic- Symphony Orchestra under Bruno Walter while awaiting the voters’ verdict, prompt- ly commented that he was in for “four years of hell.” All congratulations, he said, should go to his Democratic runner-up, District Attorney William O’Dwyer of Brooklyn.
Despite President Roosevelt’s endorse- ment, the mayor’s plurality of 133,841 was the smallest of his three efforts, running far behind 1937, when it was 453,874, and 1933, when his lead was 282,000. The La Guar- dia tongue and temper, which had reached new heights, were blamed for cutting his vote considerably (see Perspective). The anti-La Guardia forces made capital of an allegedly obscene message directed by the mayor to an editorial writer of The New York World-Telegram. After the election The World-Telegram explained that the mayor had apologized suitably, applauded his reelection, and urged him to stick to his job.
Elsewhere, mayoralty campaigns came o£ much as usual, Cleveland providing the major turnover. There the Republicans were ousted for the first time in eight years, a record vote being piled up for Frank J. Lausche, Democratic Common Pleas judge who fought the city’s suburban gambling houses last winter. Lausche, a 46- year-old lawyer and son of Yugoslav immi- grants, defeated the Welsh-born Republi- can incumbent, Edward Blythin.
In Pittsburgh, Republicans made their
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NOVEMBER 17, 1941.
SSS
strongest bid for a return to power since the 1932 Democratic landslide but failed to unseat Mayor Cornelius D. Scully, who got back in by a narrow margin. An ardent New Dealer, Mayor Scully promised con- tinued improvement programs with Fed- eral and local funds, an expenditure to which the Republicans objected.
George J. Harter, a former newspaper- man who went blind ten years ago from reading copy, became mayor of Akron, Ohio, defeating Lee D. Schroy, Republican mayor who had served three terms. As a Democratic member of the State Legisla- ture, Harter consistently supported labor legislation.
Edward J. Jeffries, bowling enthusiast
and dog fancier, was reelected Democratic
mayor of Detroit handily over Recorder Joseph A. Gillis. ‘
in Boston the comeback plans of former Mayor James M. Curley, also an ex-gov- ernor of Massachusetts, ran into an earlier stumbling block. Mayor Maurice J. Tobin, a fellow Democrat who had defeated the Curley machine in 1987, did it again.
Connecticut voters seemed satisfied with the government they had been getting. In Bridgeport, Jasper McLevy, hardy Social- ist ex-roofer, gained a fifth term by a healthy margin. In New Haven, John W. Murphy, Democratic incumbent, won a sixth consecutive term. In Hartford, an- other Democrat, Thomas J. Spellacy, won a fourth term.
Diplomatic Target
Peace demonstrations took a belligerent turn in Detroit last week, when the Brit- ish Ambassador, Lord Halifax, was bom- barded with eggs and tomatoes. The mis- siles were hurled by women demonstrators, members of two “mothers vs. war” groups. An egg found its mark. Each of the groups, whose membership is limited, blamed the marksmanship on its rival.
Next day, in Cleveland, the ambassa- dor was loudly booed and greeted with placards bearing such slogans as “Halifax is a warmonger.” A veteran of political demonstrations, Lord Halifax’s only feel- ing about the Detroit fray was “one of envy that the people over here have eggs and tomatoes to throw around.”
Heraldry for Harold
“Honest Harold” Ickes, as truculent a democrat as ever sneered at a title, was dubious last winter when an agent of the American Research Bureau offered to un- earth his family coat of arms for only $2. But the agent finally parted him from two crisp bills, perhaps by pointing out the prestige a crest would lend Farmer Ickes’ eggs.
The agent should have known better. For no sooner did Honest Harold receive
his coat of arms than he loudly branded it a “phony” and the transaction a swin- dle. Extensive research by his own kin, he maintained, had clinched the total ab- sence of any claim of the Ickes clan to such emblazonry. Loosing the furies of the government on the bureau, the Post Office Department issued a fraud order, which caused all mail addressed to the firm to be returned to the sender marked as fraudu- lent.
Last week a Federal grand jury refused to believe that Honest Harold’s ancestry was necessarily so humble as to be with- out pretension to a coat of arms. It there- fore refused to indict the brothers Benja- min and Samuel Adelman, Washington proprietors of the firm. Crestfallen, the Interior Secretary moodily girt on his crestless armor for coming tilts as De- fense Coordinator of Solid Fuels (see page 50).
19
Aid for the Neighbors
Actions Taken to Award Latins Share of Strategic Materials
The United States this week took two steps vitally affecting the economies of its good neighbors to the south. One was the announcement by Secretary of State Cor- dell Hull adding 519 names to the black- list of Latin-American individuals and firms believed to be acting in the interest of the Axis.
The other move was even more import- ant. Under Executive Director Milo R. Perkins (see page 36), the five-month- old Economic Defense Board went to bat this week for Latin-American businessmen who had been clutching forlornly many priority ratings of no more value than Confederate money. After a two-month
” Wide World Tomatoes for His Lordship: noninterventionists greeted Halifax
20
NEWSWEEK
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survey of strategic materials in the non- Axis world, the EDB submitted to SPAB Director Donald M. Nelson a plan to make lump allocations to the Latins, based on a definite percentage of supplies available for 1942. At the top of the list stood steel rails and ship plates, reinforcing rods for concrete construction, electrical equipment, tinplate for canning, chemicals, and agri- cultural machinery.
Significance
The EDB’s plan strikes at a fundamen- tal Pan-American problem. Blockaded fram Europe, Latin America must import from the United States or face collapse in key industries. The Latins never could un- derstand why the United States today could export to them at a rate of only half a billion dollars a year when they are ex- porting twice as much to this nation, in- cluding vital chrome, manganese, tin, ni- trates, and copper. Especially Chileans, for example, had difficulty in understand- ing why they can buy little copper wire here, when Chile sends several shiploads of copper ore north every month.
The Latins’ problem was not solved by the system of priorities, which proved only a synonym for “mafana” to them. Now the allocations plan, which will require only small quantities of “tight” materials, will give imperative South American needs precedence over this country’s civilian in- dustry. Although this scheme by no means will fulfill all Latin requests, the Adminis- tration believes that the increased pinch here will pay dividends in terms of hemi- spheric solidarity.
On the other hand, the simmering Latin discontent at having received few military supplies will undoubtedly continue. Despite such vehement protests as that of Lima when the United States seized for Britain eighteen bombers which Peru had bought, Washington’s theory is still that one bomb- er over the English Channel is worth ten over the Andes. Under Lend-Lease, only six agreements with Latin nations have been completed, and these provide pri- marily for building naval and air bases.
Death in the Big Top
Death stalked the Ringling Brothers and Barnum & Bailey Circus from Char- lotte, N.C., and struck its herd of 47 ele- phants at Atlanta, Ga., last week. Shortly after unloading, Alice died mysteriously. Within two days, deaths of seven others followed: Big Liz, Puqua (one of the show’s two African pygmies), Blanche, Mary, Tillie, Mabel, and Ringling Liz. Worth $15,000 each normally, they are virtually irreplaceable because of the war.
When the circus left Atlanta with a rest- less elephant herd, it left behind three sick pachyderms. They were given medicines by Dr. Miles Standish Piper, a veterinary who had previously handled nothing larger than
Acme
Josephine took an antidote to arsenic
cows. Elephant trainers labored to keep the three on their feet, saying: “If they lie down, they'll just give up.” However, two of them, Clara and Pom, died soon after.
Frank Braden, publicity man, recalled that elephants became ill eight years ago in Charlotte, when seepage from a chem- ical plant poisoned the elephants’ grazing lot. “Tuesday, we played that same lot,” Braden recounted. “The chances are there are still chemical poisons in the subsoil.” After an autopsy on Puqua, State Chem- ist C. Reynolds Clark corroborated the theory of poisoning: he found arsenic.
Week in the Nation
ConcrREssMEN: Only two Congressional seats were at stake election day. Northern Mississippi elected District Attorney Jamie L. Whitten, 31-year-old Charleston Demo- crat, to serve the unexpired House term of Wall Doxey, now a senator. Northeast- ern Pennsylvania selected Wilson D. Gil- lette, a sharp critic of President Roose- velt’s domestic policies, to succeed his fel- low Republican, the late Albert G. Ruther- ford.
Rerorm: William B. Shields, who sought the office of Atlantic City sheriff to carry on his fight for reform against the Repub- lican machine of Enoch L. (Nucky) John- son (NEwsweEeEk, Nov. 3), ran a poor third. He won only 1,329 votes, compared with 27,596 for Dr. J. E. Carmack, a young dentist-athlete sponsored by the machine, and 20,086 for Edison Hedges, outboard-motor racer who was the Demo- cratic nominee.
Sentence: Already serving a five-year sentence for mail fraud, Howard C. Hop- son, former president of the Associated Gas & Electric system, pleaded guilty in New York to evasion of income taxes. Receiving a sentence of two years, io run concurrently with his present term, he returned to Northeastern Peniten- tiary in Lewisburg, Pa. He has lost 78 pounds since entering prison ten montlis ago.
Exite: Irving Wexler, better known as Waxey Gordon, the beer baron who a year ago finished serving seven years for tax evasion, was hustled out of San Fran- cisco and Los Angeles by local police. “I came out here to get a bankroll—I mean, to interest capital in a wonderful cleaning fluid,” protested Waxey, who insisted he had reformed. Police search of his effecis uncovered no samples of the fluid nor lit- erature describing it.
Wreck: Near Dunkirk, Ohio, the Penn- sylvania Railroad’s Chicago- New York express Pennsylvanian left its rails «t 10:22 p.m. Sunday night and smashed into a signal tower, killing twelve and injuring 42. The train was believed to have becn derailed by a cylinder head, which hid blown off a passing freight locomotive and fallen on the track.
Governors: The only governorship :t stake on Election Day was in Virginia, where an appendectomy which curtailid his campaigning did not prevent Rep. Cc'- gate W. Darden Jr., Democrat, from ove’- whelming three opponents. In South Carc- lina, Lt. Gov. J. E. Harley became gove:- nor when his ex-chief, Burnet R. Maybank, entered the Senate.
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NOVEMBER 17, 1941
FROM
——
21
THE CAPITAL
ew
The White House
The President was riding high last week. Neutrality Act revision, toward which he had been working for a year, at last passed the Senate. His candidate for may- or of New York, Fiorello H. La Guardia, won. Hyde Park went completely Demo- cratic for the first time since 1871. With his old friend Prime Minister W. L. Mac- kenzie King, he set up a joint United States-Canadian board to coordinate pro- duction. He had so allayed or scattered opposition to aid to Russia that only ex- treme isolationists spoke up when he an- nounced a $1,000,000,000 Lend-Lease cred- a. .
The royal visitors of the week were Crown Princess Juliana and her children, whose simple and friendly ways have made them great favorites in the Roosevelt cir- cle. White House aides commented agree- ably on the fact that when Juliana’s chil- dren want help they go to their mother, not to a nurse. The Crown Princess and the President’s Scotch terrier, Falla, es- corted the Roosevelts to the Hyde Park polls Tuesday.
Early Wednesday the President arrived in Washington with a lone cup of coffee under his belt and sped to the White House for a hearty breakfast and a heavy appointment list. The Congressional ball carriers arrived to predict neutrality re- vision. In the afternoon Secretary of State Cordell Hull, Coordinator of Infor- mation William J. Donovan, Sen. Tom Connally, and other visitors had to cross a picket line comprised of seven ladies who claimed to represent Women United of New York and We, The Mothers of Chi- cago. Their placards demanded that Pres- ident Roosevelt be impeached and that the British be driven from the capital.
On Thursday, when Mr. Roosevelt fin- ished speaking to 250 delegates of the In- ternational Labor Organization, a portly Greek delegate climbed to the platform, shook the President’s hand vigorously, and then kissed it. Mr. Roosevelt gently patted the fellow on the shoulder. Later in the week, the new officers of the American Newspaper Guild arrived to assure the President that they would operate a union of which he would be proud to have his wife a member. Sunday the President spent
a quiet day, working over memos and let- ters.
Donovan Strategy
Ever since his North African-Balkan tour for Secretary of the Navy Frank Knox last spring, Wild Bill Donovan has considered counterpropaganda_indispen- sable to any strategy for defeat of the Axis. In Belgrade, particularly, he noted
the electric effect of a few broadcasts by the Serb journalist Dr. Svetislav-Sveta Petrovitch, beamed from Boston’s short- wave station, WRUL. (Newsweek, April 7). Petrovich’s news reports, stressing America’s purpose of arming victims of ag- gression, were credited with promoting Yugoslavia’s decision to fight. Ap- pointed Coordinator of Information by the President in July, Donovan mustered a council of geographers, historians, and psy- chologists to contrive an anti-Axis grand strategy. He delegated counterpropaganda to Nelson Poynter, who took leave as edi- tor of The St. Petersburg (Fla.) Times to organize and direct a staff of newspaper- men.
Since then Poynter has worked closely with Michael J. McDermott, chief of the State Department’s Current Information Division. Together, they winnow the day’s diplomatic dispatches and plan an appro- priate shortwave news menu.
Poynter’s force serves this up in a 10,- 000 word daily report. The report is fed to New York and telegraphed to eleven short- wave stations by Stanley Richardson, form- er Associated Press correspondent and co- ordinator employed by the radio industry.
This complex organization is America’s first force designed for direct participa-
~ Wide World
Donowan, counterpropaganda boss
tion in the war of nerves. Following is a specific example of the way it works:
One morning in October, Breckinridge Long, former American Ambassador to Rome, now an Assistant Secretary of State, called on McDermott for speech material. His address furnished Poynter’s staff a 200-word bulletin.
Last week an office memorandum by Poynter’s cable editor, John Ackelmire, summed up the reaction: ©
“The Long speech hit the jackpot ... produced an uninhibited harangue from Axis and Axis-controlled short-wave sta- tions .. . Axis newspapers also took it up, advertising to their own people Mr. Long’s charge that Germany was asking a mil- lion more troops from Italy and inten- tionally weakening her ally in order to betray her.”
Ackelmire cited chapter and verse, as recorded for the COI by its own, NBC, and CBS listening posts. On its North American broadcast, Radio Roma blared: “Clearly an attempt to arouse the atro- cious suspicion that Germany would stab her ally.” For home consumption, another Rome station quoted “Berlin circles” thus: “An infamous and unprecedented maneu- ver to promote the awful suspicion that the Reich would betray its ally.”
Congress
Senate debate on neutrality revision held the Congr®ssional spotlight all last week. But other less pressing but signifi- cant issues awaited their turn.
Insinuations by the press that some businessmen in the government make more than their stipulated $1 a year by manipu- lating contracts prompted Chairman Har- ry S. Truman of the Senate committee in- vestigating defense contracts to initiate an inquiry. All $l-a-year men were directed to itemize their salaries and emoluments if any, their corporate connections, and the defense contracts awarded the firms from which they came. In the House, meantime, Rep. John M. Coffee of Wash- ington claimed 100 members stood ready - to support “an exposure of the connections between $l-a-year men and big corpora- tions.”
The pork-barrel omnibus waterways bill got a green light from the House Rivers and Harbors Committee. The opposition girded for a showdown. Many congress- men fear that mere authorization of a bil- lion dollars, although involving no imme- diate expenditure, will frighten economy- minded constituents.
In the Senate Military Affairs Commit- tee, Sen. Edwin C. Johnson of Colorado plugged for the bill doubling the base pay of enlisted Army men. The boost in Army morale attendant on its passage, he ar- gued, would repay the nation many times over for the $374,000,000 yearly cost.
To maintain defense production levels, Sen. Styles Bridges of New Hampshire, ar- dent Republican interventionist, intro- duced a bill outlawing strikes called by
_ edict of union leaders. The measure would
allow a strike only after a majority of the union involved had balloted for the walk- out in a vote supervised by the National Labor Relations Board.
aa STES
NEWSWEEK
Words Vie With Battle Fury
for Victories on War Fronts
Wave of Speeches Provides Overtones for Bitter Fighting in Mud, Sleet, and Snow
Comrades! Twenty-four years have passed since the victory of the October Social Revolution and the establishment in our country of the Soviet system.
All Russia listened as the flat voice of Joseph Stalin hailed Communism’s great anniversary. The words echoed back down the corridor of years to that fateful, con- fused Nov. 7* in a city then called Petro- grad. Government, society, and army had collapsed; the Soviet workers took over supreme power. John Reed, the American reporter, saw the revolution rise: “Day broke on the city in the wildest excitement and confusion, a whole nation heaving up in long hissing swells of storm.”
Now, in 1941 as in 1917, the supreme test of the revolution came in the heat of war against the Germans. The great men of that early epoch, Lenin, Trotsky, and Krylenko, had long since vanished. In their place stood the single figure of Joseph Stalin—a man who has reached full stature only in the last four months. This war has made him. The points in his speech before the Moscow Soviet last week were an- swered one by one in words and actions from all over the world. Thus were summed up both war and revolution in a grim monologue with Stalin’s words (in italics) carrying the narrative.
The enemy has seized the greater part of the Ukraine, White Russia, Moldavia, Lithuania, Latvia, Estonia, and a number of other regions. He has penetrated to the Don, hangs like a black cloud over Lenin- grad, and threatens our glorious capital, Moscow ... The German Fascist invaders calculated that they would certainly be able to finish with the Soviet Union in a month and a half to two months.
In a beer hall in Munich, the chief of the invading German Armies also hailed an anniversary—the nineteenth anniver- sary of the revolution that didn’t work, the Putsch of Nov. 9, 1922. Hitler’s speech was not broadcast. Radio stations act as beacons for night bombers. But his words might have echoed back across the steppes: “Never was a great empire smashed and destroyed in shorter time than was Soviet Russia this time.”
*According to the Julian calendar then used by Russia, the revolution began on Oct. 25, or thirteen days behind the Gregorian calendar used by the rest of the world.
For the four months of the war so far our losses in killed are 350,000, missing 378,000, and our wounded number 1,020,- 000 men. For the same period the enemy has lost in killed, wounded, and prisoners more than 4,500,000 men.
The raspy voice of the Fiihrer sounded in the rafters of the smoky hall. It said that Russia had sustained losses of eight to ten million men, with prisoners in Ger- man hands amounting to 3,600,000.
“But the enemy does not halt before sacrifices. He. cares nothing whatever for the blood of his soldiers. He keeps throw- ing onto the front fresh units to replace those put out of commission and is strain- ing every effort to capture Leningrad and
Stalin hailed a revolution
Moscow before the advent of winter, for he knows that for him the winter has noth- ing good in store.
Near Berlin a group of newspaper cor- respondents visited the Reserve Hospital and Re-educational Home. They saw 180 men with brain and spinal wounds. Most were from the Russian front. And to many, nurses spoke in the simple phrases used by 4-year-olds.
Hundreds of miles to the east under the leaden skies of the great Russian plains other men under the banner of the crooked cross struggled through the mud, sleet, and snow, An army spokesman cried: “When our dreams come true and the weather im. proves, the whole German front will move forward again, and we shall announce the news to the sound of trumpets.” In ithe Munich beer hall, the Fithrer’s voice fell: “Now we are on the defensive at Lenin- grad.”
A people who have lost all semblance to human beings and who have sunk to the level of wild beasts ... have the impudence to call for the destruction of the great Russian nation.
The old front fighters who carried the Swastika with Hitler when he was an un- known agitator in a raincoat pounded the . tables as he said: “I have no interest in any such city as Leningrad, but only in the destruction of the industrial centers of Leningrad. If it suits the Russians to blow up their cities, they save us, perhaps, much work.”
The German invaders wish to have a war of extermination against the peoples of the Soviet Union. Well, if the Germans wish this to be a war of extermination, they will get it!
The beer hall was quiet for a moment. Then the Fiihrer’s words came slowly: “The fight has become a fight not only for Germany but for all Europe, a fight for existence or nonexistence.”
How is one to explain that the blitzkrieg was not successful in the east? ... The German calculations were based in the first place on the earnest hopes of creating a general coalition against the USS.R.... But the Germans sadly miscalculated ..- Britain and the United States, far from joining the camp of the Fascist aggressors, sided with the USS.R. in its fight against Germany.
In Washington, the anniversary of the Revolution was marked by a reception at the Soviet Embassy that turned into one of the largest diplomatic functions ever held in the capital. Congratulations were sent to Stalin by President Roosevelt. And Prime Minister Churchill hailed the Soviet Premier as “that great warrior.”
The recent tripartite conference in Mos- cow ... decided to help our country s1s- tematically with tanks and aircraft . . . Even earlier, Britain engaged to supply to our country materials such as aluminum, lead, tin, nickel, and rubber.
President Roosevelt announced he granting of a $1,000,000,000 loan to the Soviet for war materials under the Lerd- Lease Act and exchanged cordial perso:al letters with Stalin. In Britain, Lord Bca- verbrook told of one phase of the Moscow negotiations: “Mr. Stalin showed joy,
Tessors, against
of the
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oscow joy,
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NOVEMBER 17, 1941
SEES
In deepest Russia: the Germans dreamed of better weather
pleasure, satisfaction, and relief on being told that we would give to Russia all the aluminum they had asked for . . . I felt it my duty to say: ‘Mr. Churchill did it.’
. and Mr. Stalin said: ‘The old war
horse’.”
There is no doubt that the absence of a second front in Europe against the Ger- mans considerably relieves the position of the German Army, nor can there be any doubt that the appearance of a second front on the Continent of Europe—and undoubtedly this will appear in the near future—will essentially relieve the position of our armies to the detriment of the Ger- man Army.
It was still quiet along the coasts of Eu- rope from Norway to Spain. The Germans had, according to the Fiihrer’s boast, doubled and tripled their defending bat- teries against the possibility of an Allied invasion. But from the sky came the reg- ular throb and hum of motors. It was loud- est on the night of Nov. 7. Nearly 800 planes, the greatest force of bombers the Royal Air Force had ever thrown into ac- tion flew across darkened Europe. Sudden winter storms caught them on the way home, and the losses came to 35 ships— the largest suffered by the RAF in a single hight’s activity so far.
Other British air fleets raided Italy from their bases in Africa. Forty persons were killed and 80 wounded in Brindisi alone, the heaviest toll yet inflicted on an Italian city. At sea another blow fell on the Fascists. A British squadron of two cruisers and two destroyers intercepted Italian con- voys, guarded by a superior naval force, and sank nine merchantmen and two de- stroyers without loss to themselves.
This week during an address at the Lord
Mayor’s luncheon, Prime Minister Church- ill said nothing about a second front. But he did claim that on the third front—the air—the RAF was “at least equal in size and number” to the vaunted German Air Force. And, revealing that he expected the Germans to launch a peace offensive short- ly, Churchill said that the British “owe it to ourselves, to our Russian allies and to . . . the United States” to make it clear that they would never enter into any ne- gotiations whatever with the Nazis.:
Newsweek map—Starworth The Russian-Finnish front, sub- ject of a diplomatic battle
Finnish Fire
Peace Pressure Arouses Anger and Sparks Crisis in Helsinki
On Nov. 2 Risto Ryti, the thin-faced banker who is now President of Finland, granted an interview to Henry J. Taylor, a North American Newspaper Alliance correspondent. When asked if Finland would halt its drive into Soviet territory, Ryti replied: “Finland’s advance will stop at a strategic line, independently selected by her in her own defensive interests of security. The location of this line obvious- ly must remain a military secret at this time.”
That statement apparently summed up the attitude of the Finnish Government at the moment that Secretary of State Hull announced Russia had offered to make peace with Finland. The action was fol- lowed by the application of strong British and American pressure to draw the north- ern republic out of the war and prevent the Finns from pressing on to their “strategic line.”
Washington’s moves—and the clearly implied British threat to declare war on Finland—brought about a crisis in Hel- sinki. Stories circulated that Home Min- ister Vaino A. Tanner, an old-line Social Democrat, had resigned and that the Fin- nish radio had declared operations in Rus- sia were approaching a close. Premier Johan Wilhelm Rangell paid a secret visit to Stockholm for consultations. And the violence of the German reaction to the Washington suggestions was one indication of the seriousness of the desperate choice that the little republic faced.
Significance
It was fully recognized in Washington that Finland was in no position actually to withdraw from the war. If that were at- tempted, the German retribution would be swift and terrible. But what Washing- ton did hope to gain was a cessation of Finnish military activity against the Soviet —whether declared or undeclared. This was based on the reasoning that the Finns have reconquered, with the exception of the Hangé peninsula, practically all the terri- tory lost in the 1939-40 war, plus consid- erable slices of Soviet territory (see map).
The immobilization of the Finnish Ar- mies would represent a military gain of great importance for the Soviet. First, it would relieve some of the pressure against Leningrad, although the Finns might con- tinue to hold the Leningrad-Murmansk railway in the places where they have al- ready cut it. But, more than anything else, it would remove the menace of a Finnish- German drive against Murmansk and Archangel this winter. Practically the only German force in Finland—some four to six divisions under Col. Gen. Eduard Dieti—is concentrated in the Petsamo area, with
26
Calendar of the War
1939
On Sept. 1 Hitler invaded Poland, and two days later France and Britain de- clared war on Germany. Russia invaded Poland on Sept. 17, and Poland surren- dered unconditionally Sept. 27. On Nov. 30 Russia invaded Finland, getting terri- tory in the peace of March 13, 1940.
1940 Between April 9 and June 2 Germany successfully invaded Denmark, Norway, Belgium, the Netherlands, and Luxem- bourg. Despite defeat, four-fifths of the BEF was evacuated from Flanders. Italy entered the war on June 10, and by June 24 France, with Pétain as Premier, had accepted the Italo-German armistice terms. Russia seized Northern Bukovina and Bessarabia from Rumania June 28; the British attacked and rendered useless a major part of the French Fleet July 3. The German air offensive, begun against Britain on Aug. 8 and continued through September, failed to break British mor- ale. Italy conquered British Somaliland and invaded Egypt Aug. 19-Sept. 14. Between Sept. 27 and Nov. 24 German diplomacy and threats brought Japan, Hungary, Rumania, and Slovakia into the Axis alliance. Italy’s invasion of Greece, started Oct. 28, was thrown back into Albania; and the British offensive from Egypt, begun Dec. 9, reached Ben- gasi, Libya, by Feb. 6. 1941 On March 11 the Lend-Lease Act was signed. Italo-German forces drove the British from Bengasi back to Egypt April 3-13. Hitler’s 26-day conquest of Yugoslavia and Greece ended May 1. On April 13 a Russo-Japanese neutrality pact was signed. Between April 19 and May 31 the British quelled an Iraqi up- rising. On May 10 Hess flew to Britain. Between June 8 and July 12 the Allies conquered Syria. Hitler attacked Russia June 22. On July 7 the United States occupied Iceland. Japan completed occu- pation of Indo-China July 23. On Aug. 14 Churchill and Roosevelt announced the eight-point “Atlantic Charter.” Iran yielded to Anglo-Russian forces on Aug. 28. On Sept. 11 President Roosevelt ordered the Navy to “shoot on sight.” On Oct. 16 Gen. Hideki Tojo formed a new Japanese Cabinet. On Oct. 17 the USS. Kearny was torpedoed, and on Oct. 30 the U.S. destroyer Reuben James was sunk by the Germans with a loss of 101 men. Assassination of two German officers in France brought reprisal execu- tions of 100 French hostages on Oct. 21 and 24.
Last Week
Nov. 3-10—Tokyo dispatched a spe- cial envoy, Saburo Kurusu, to Washing- ton. Stalin, speaking on the 24th anni- versary of the Russian revolution, fore- cast the eventual defeat of Hitler. The Fiihrer replied in a Nazi anniversary ad- dress at Munich. The RAF lost 35 planes in Britain’s greatest night air raid against the Continent.
Soviet troops laughed at posters deriding Hitler
Finnish troops holding the rest of the front from Louhi to the Gulf of Finland.
The Germans have been unable to make any notable progress so far because of the baffling Arctic terrain. But the Finns are very familiar with the tundra and in win- ter conduct operations over it with particular skill and speed. Without the par- ticipation of Finnish troops in a White Sea campaign, the Allies have little to fear. With the aid of the Finns, however, the Germans might be able to close both Mur- mansk and Archangel, the two principal ports of entry for British and American war materials for the Soviet Armies.
Land of Bloodshed
In Istanbul, where they had sought refuge, Serbian Orthodox Church officials last week issued one of the most sweeping charges of mass murder yet made against the Nazis. They claimed that since the German occupation of Yugoslavia, some 340,000 Serbians—men, women, and chil- dren—had. been massacred, 800 Serbian priests had “disappeared,” and numerous churches had been destroyed. The Yugo- slav Government-in-Exile in Britain added to this the accusation that the Nazis and Croatian Fascists were “working in ac- cordance with a plan for the destruction and extermination of the Serbs.”
In Yugoslavia itself, according to all accounts, the guerrilla war between Ser- bian Chetniks and German occupation forces still raged, while youths let their beards grow as a sign of protest against the mounting Nazi reprisal executions. Even Gen. Milan Neditch, the puppet Premier set up by the Germans, felt im- pelled to warn Serbs: “We know that for every German killed hundreds of Serbs are executed.”
NEWSWEEK
Ps
Soviotu
Seven Heros
The parade lasted only two hours. But aside from that Moscow put on the usual overwhelming show for the celebration of the 24th anniversary of the revolution. Tanks and armored cars rattled through Red Square. Planes flew overhead—only this time they were on real patrol against German raiders. And the vast crowds of soldiers laughed in holiday spirit at anti- Nazi posters on the walls.
Stalin reviewed the parade from his ree- ular place on the balcony of Lenin’s tomb. Then he spoke to the masses, largely re- peating his radio address of the night be- fore. But he ended on a significant note. He asked the Russians to emulate, above all others, seven men—Dmitri Donskoi, a Muscovite prince who drove the Tatars from the Don Valley; Cosmo Minin, the defender of Moscow against the Poles; Prince Pozhaiski, Minin’s aide; Alexander Névski, the savior of Novgorod; Alexander Suvoroff, eighteenth-century czarist gen- eral; and Mikhail Kutuzoff, Napoleon’s op- ponent in the Moscow campaign. None of them would have approved of Karl Marx.
Wandering Arab
Since 1937, when he fled from Jerusalem in woman’s clothes, Haj Amin el Hus- seini, Grand Mufti of Jerusalem, has al- ways managed to keep one jump ahead of the British, first in Syria, then in Iraq, and, finally in Iran. Last month he made his way to Rome via Albania and was warmly welcomed there. Last week he went on to Berlin, where he was received as “the famous warrior against Judaism and oppression.”
The Mufti’s arrival in Berlin coincided with the reported assassination of one of
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NOVEMBER 17, 1941
his bitterest enemies, Fakhri Bey Nasha- shibi. The member of a famous family in Jerusalem that has generally backed the British, Nashashibi was attacked as he left a hotel in Baghdad.
Pinch Hitter
Kurusu Carries Hopes of Tokyo for Better Relations With U.S.
The hardening of national attitudes and the increased tempo of the war all over the world was reflected last week in Ja- pan. The Japan Times and Advertiser, organ of the Foreign Office, published a seven-point program on which Tokyo would be willing to reach an agreement with Washington—and almost every point was totally unacceptable to the United States. Other papers threatened that the Japanese Army would cut the Burma Road by a drive from Indo-China. Tension with Russia increased, following the sinking of a Japanese steamer in the Sea of Japan, supposedly by a Soviet mine that drifted down from the Vladivostok barrage.
With every Japanese move of this kind, the attitude of Washington became pro- gressively stiffer. War was mentioned as a probability (see Washington Tides). And this week Prime Minister Winston Church- ill proclaimed that in such an event Brit- ain would join the hostilities on the American side within an hour.
In the midst of this darkening scene, however, the Japanese Government sud- denly staged one of its reverse plays. Premier Hideki Tojo decided to send a special emissary to Washington in a new attempt to arrange an _ understanding. And, as often happens in Tokyo, the man with the right qualifications for the job was already standing in the wings.
He was dapper, 55-year-old Saburo Kurusu, a career diplomat of 31 years’ experience. His special fitness lay in his perfect English, his intimate knowledge of international trade and economic prob- lems, and his familiarity with the secret understandings that entered into the Tri- partite Pact. Kurusu was Ambassador to Berlin when the agreement was signed in September 1940, but his reluctance to make Japan a full partner in the Axis brought him into collision with the pro- German Foreign Minister, Yosuke Mat- suoka. As a result, he was recalled from Berlin and placed on the inactive list.
Kurusu began his foreign-service career in 1910 after his graduation from the Com- mercial Academy of Tokyo. Thereafter, consular posts in New York, Chicago, Honolulu, Manila, and Santiago, Chile, were steppingstones to his appointment as Ambassador to Belgium in 1936. During his service in the United States, Kurusu married an American, the former Alice Little of Chicago. He has three American-
27
i]
WAR
WEEK
by Maj. Gen. STEPHEN
Ajong the entire saw-tooth line of some 2,000 miles frontage, from the Baltic to the Black Sea, General Win- ter and his able Lieutenants Snow, Ice, Sleet, Rain, and Mud, plus stubborn re- sistance of the Red Army, seem to have checked the German advance. At the { start of this week, however, there was § a major German effort in progress in the south to reach the Caucasus by a heavy frontal attack against Rostov and a steam-roller drive through the Crimea (see map below).
These movements seem to be coor- dinated in a two-pronged pincers of- fensive and, if successful, will enable Hitler to reach the gateway of the Cau- casus on the line Rostov-Krasnodar. From here it may be expected that Hit- ler will launch his much-heralded winter campaign into this region.
There are three land routes open to Hitler for reaching the Middle East, one east of the Caspian through Tur- kestan, another across Turkey, and the main route via the Caucasus. However, any plan for a campaign into the Mid- dle East must include a supply route across the Black Sea—and these waters are still Russian-controlled.
{ The Turkestan route would be a di- rect thrust against the right flank of the British position in the Middle East. But this passage involves control of the
The Roads Open to Hitler Beyond the Caucasus
O. FUQUA, US.A. Retired
forced, it is generally believed such action would throw the Turks into the war on the side of the British. As such a move would probably create a second front for Hitler, the squeeze on Turkey is now lessening.
Therefore, regardless of all future moves, it seems rather definite that, once at the Caucasus gate, the Ger- mans’ immediate objective will be to establish a firm foothold on the main route to the Middle East by occupation of the quadrilateral Rostov-Astrakhan- Makhach-Kala-Tuapse as far south as the snowbound mountain ranges. This plan would involve a drive directed on
Astrakhan and Makhach Kala.
Gaining of the Astrakhan position would halt the supplies to Russia from India and the Persian Gulf. The routes over which they must come converge on the Caspian Sea and in Russian Tur- kestan, and most of these supplies are water-borne to the interior via the Volga. The holding of the Black Sea coastal front as far south as the moun- tains would deny much-needed har- borage to the Russian Fleet and at Tuapse afford control of the terminals of the railways to Baku and across to the Caspian. Possession of the quad- rilateral would include the “little oil” region north of the mountains around
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Caspian and the occupation in the first instance of the North Caucasus and is, therefore, not available at this time. The route through Turkey would be ideal for German strategy, giving Hitler command of the Dardanelles, an open- ing for a pincers movement against the Caucasus, and an opportunity for a drive southward against the Suez re- gion. But the Turks so far have suc- ceeded in resisting German pressure for | a troop right-of-way, and, if passage is
Newsweek map—Manning
Krasnodar and give to the Germans other much-needed supplies, many mil- itary objectives, and an important strategical position.
Such a winter campaign in the upper Caucasus, if successful, would provide an outlet for German initiative and a setting for a bridgehead in this area that must be gained in preparation for any springtime offensive southward against the British bastion of the Mid- dle East.
28
NEWSWEEK
SS
WAR WEEK
F rom the warm waters of Ran- goon, Burma, to the icy seas of Arch- angel, American supplies are flowing. Soon the flags of our merchant ships, { backed by the power.of the Navy, will be seen in every port. America’s inter- est in the sea war grows even more rap- idly than the headlines indicate. So it is worth-while to attempt to analyze re- cent figures, in order to get a clearer picture of how this struggle is going.
A British Admiralty report last week listed 1,276 U-boat men as having been captured since hostilities began. Of these, 467 are Italians. Italian subma- rines run from 1,450 to 600 tons in dis- placement, with the latest and best in the 950-ton class. Their complements run high, averaging about 48 men. On this basis it is a fair assumption that the Italians probably have surrendered at least ten submarines in the course of the war.
The records, covering many years of submarine operations in all navies, show that when a submarine is really lost she sinks with her entire crew en- tombed. Hence any estimate of subma- rines lost calculated on the numbers of men captured would be too. low for either the Germans or Italians.
The British figures show 809 Nazi crew men captured. German subma- rines range in size from 1,060 tons dis- placement to as low as 250 tons. Par- ticular stress has been laid on the 500- and 250-ton classes. The complements of these types run from 35 to 23 men, a mean being about 30. If then, we as- sume that the entire crews of all sub- marines captured were rescued, this would bring the figure of submarines surrendered to 27.
As pointed out above, this is no guide to the total number of submarines sunk. It is an indication, though, of the num- ber which have been captured, or which, as probably happened in a few rare cases, were caught in circumstances where some of the men could escape. That is likely to be a conservative es- timate, with the rate of losses increas- ing as the air and surface defense is bettered.
On the other side of the ledger must be placed the merchant tonnage
The Tide Is Turning Against the U-Boat
by Admiral WILLIAM VY. PRATT, U:S.N. Retired
losses. The British do not put out many figures, but Berlin does. Mr. Churchill’s statement placed losses for July, August, and September at two- thirds less than the three previous high months or about 472,200 tons. Spread over the three months, this would give about 160,000 tons average.
Undoubtedly that is too low an esti- mate for September, which was a high month in tonnage losses. The German figures for July, August, and September totaled 1,628,200 tons and a comparison of the London and Berlin statistics gives a conservative ratio of about one to three, with the Germans claiming British losses to be three times what the British admit. Taken on this basis, the Berlin September and October figures, respectively 683,400 tons and 441,300 tons, should reduce to approximately 228,000 and 150,000 for each month. This is guesswork, but it should be nearer the truth than the Berlin figures. From the beginning of the war, of course, there have been glaring discrep- ancies between Berlin and London esti- mates on sea losses. This is possibly ac- counted for to some extent by the fact that the British report only those ships actually sunk, while Berlin probably includes both those dam- aged and sunk.
Even if the 300,000-ton monthly rate of sinkings could be kept up during the coming winter months, when subma- rines work at a disadvantage in the wa- ters of the Northern Atlantic, what about replacements? An average dis- placement of 5,000 tons for ships in the transport work requires a replacement rate of two ships a day to break even. When the 10,000-tonners begin to slide off the ways, as they are doing now, this means a replacement tonnage of one ship a day to break even. Anything above this figure is to the good, and the tide in the Axis sea war will start to ebb.
Casualties there will be, perhaps ex- ceeding those of the Reuben James, but the Axis group still does not have the power to retard the growth of our naval replacement tonnage. And as our sup- plies grow and the rate of transport to the fronts increase, while the submarine loses in striking power, our feet are set on the road which leads to final victory.
~~
“2
| Wide World Saburo Kurusu, envoy extraordinary
educated children and even in Japan has lived in an American-style house.
The conservative newspaper Yomiuri described him as “a pinch hitter on the diplomatic diamond.” The terminology was clear to a nation that rivals the United States in its love of baseball, but Yomiuri’s choice of metaphors had _ sour overtones to those Japanese who remen- bered Babe Ruth’s opinion of their play- ers: “They’re clever and agile but they'll never beat the Americans just because they’re not big and strong enough.”
Significance
The decision to send Kurusu to Wash- ington was caused not only by the tense international situation but also resulted from the deep split in Japanese politics. While the army has strengthened its power, it has by no means snuffed out all resistance to its extremist projects. The opposition has become more and more homogeneous and revolves around a body of conservative politicians, all of them close to the emperor.
These men are coming to resemble the old genro*—the elder statesmen, advisers to the emperor, who sponsored the Meiji restoration and thereafter helped to <e- velop Japan as a peaceful, conservative monarchy. They included such figures as Admiral Togo, Prince Inouye, Prince Ito, and Prince Saionji, the last survivor, who died a year ago.
In the last few months, however, the new genro has taken form and applied its influence. This group was primarily re- sponsible for the appointment of Kurusu. They comprise @ roster of the men who, if anyone can, will keep Japan out of war:
The Marquis Koichi Kido, Lord Privy
Seal, the official closest to the emperor,
*Pronounced with a hard g and meaning “first (of the) elders.”
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The Battle that was won in Drawing-Room A
At four-thirty, everything was lovely ...
. . . production plans all set on the big Defense contract . . .the Old Man, the Production Manager, the Plant Superintendent going over notes for the big meeting next morning, six hundred miles away. .
Then, at four-thirty, catastrophe. The supplier they’d counted on can’t furnish vitally-needed cast- ings. What to do?
“*Cast ’em ourselves!’’ snapped the Old Man.
‘*Means re-planning the whole production set-
up,’ said the P. M.
“No time to do that before the meeting,”’ said the Super.
‘“Time, my eye!’’ said the Old Man. ‘“‘We’ll get Pullman drawing-rooms on the Limited tonight —lock ourselves in and iron things out. We can get down to our shirt sleeves and be comfortable. No interruptions — and we can lick this into shape by bedtime. We’ll get a good night’s sleep, and it’ll be duck soup at the meeting in the morning!’’
That’s the way it happened, too. By eleven-thirty that night there were three pairs of shoes waiting for their free Pullman shine.
And even the Old Man’s snore sounded kind of
contented.
* * * That’s the swell thing about Pullman travel—it gives you extra comfort, extra privacy, to any degree you want.
For instance, Pullman offers—on many lines—the other Pullman rooms shown below .. . for just a mite more than separate lower berths for each occu- pant. Better look them over—pick the one that ap- peals most. Then, next trip, try it!
Meanwhile, memorize this sentence: Pullman gets you there—safely, comfortably, dependably—and no fool- ing about it!
COPR. 1941, THE PULLMAN CO.
THE ROOMETTE: (for one). Completely pri- THE BEDROOM: (for one or two). Two extra-
vate—surprisingly spacious. Private toilet and comfy beds, your own toilet and wash basin, lavatory, roomy clothes-locker, a big, soft bed writing table, full-length mirror. Individual and your own air-conditioner. air-conditioning, naturally!
THE BEDROOM SUITE: (for three or four). By day, one big room —by night, two separate double bedrooms—each with toilet and lava- tory, grand beds, comfort-gadgets galore.
For Comfort, Safety and Dependability- Ve Villian
| _.
The One and Original Quisling: With the Swastika in back
| Wide World
of him and German officers on each side, the leader of the Norwegian Nazis reviews his followers. According to rumors from Norway, he recently tried to commit suicide—but was dragged back to life by the Germans.
who handles all documents requiring the imperial seal.
Tsuneo Matsudaira, Imperial House- hold Minister, former Ambassador to Washington and London, and one of the nation’s foremost liberals.
Prince Fumimaro Konoye, former Premier, who staked the life of his Cabinet on a rapprochement with Washington. —
Baron Kiichiro Hiranuma, former Premier, President of the Privy Council and Vice Premier in Konoye’s third Cabi- net, a middle-of-the-roader who opposed the Axis hookup.
Baron Reijiro Wakatsuki, former Pre- mier, called “traitor” by army extremists.
Admiral Keisuke Okada, former Pre- mier, known as a friend of the United States, who barely escaped assassination at the hands of militarists in 1936 for his moderate attitude.
Admiral Mitsumasa Yonai, former Pre- mier, who took a stand against the Tri- partite Pact.
Leyden Shutdown
In 1574, during the struggle of the Dutch against the Spanish, the city of Leyden withstood a long and grim siege. The fol- lowing year, as a reward, William of Orange offered the people of Leyden the choice between paying no taxes over a period of years and a university. They took the university, and it developed into one of the great European seats of learning. Grotius, Descartes, and Oliver Goldsmith were among its famous alumni. The Ley- den jar (electrical condenser) was discov- ered there.
Last week Leyden lived up to its tradi- tions but paid heavily in doing so. Arthur Seyss-Inquart, Nazi gauleiter in the Neth- erlands, ordered the university to sus- pend all examinations beginning Nov. 20 because the students had staged a strike after the dismissal of a Jewish professor. Leyden decided to close down completely.
NEWSWEEK
Men Wanted
Industrial Conscription Fails to Meet British Labor Demands
Two Gallup Polls conducted in Britain tested the popularity of Prime Minister Churchill last week. One showed that sup. port for Churchill had dwindled to 84 per cent as compared with 89 per cent a year ago. The other explained the decline. It showed that 53 per cent were dissatis- fied with the way the government was handling one of its biggest problems—man power.
The man-power debate has raged in Parliament and press for months. In es. sence, it is a matter of orgarization—and the outcome of the war may hang on Brit- ain’s ability to solve the problem. The chief criticism has been directed at Labor Minister Ernest Bevin, the virtual dic- tator of the country’s working population of 15,800,000 men and 6,400,000 women. As if. to support the critics, the Labor Min- istry last week listed 196,594 men and women as jobless—although this figure is the lowest since 1929. The Emergency Powers Act, passed last year, gave Bevin the right to order anyone in Britain to any job; yet it was only last April that he yielded to strong public pressure and in- troduced industrial conscription.
But even conscription apparently has not solved the man-power shortage. Coal mining is one example of an industry that has been especially hard hit. It is now producing at the rate of 218,500,000 tons a year instead of the required 234,000,000, because there are only 690,000 miners to do the job, against a minimum need of 750,000 men. The fall of France and Italy’s entry into the war cut off foreign markets; some mines stopped production, and many men enlisted in the army, which refuses to release them. In addition, trans- port troubles have caused a maldistribu- tion of supplies.
The demand for far more drastic action to remedy the man-power shortage mount- ed last week, and the government consid- ered a bill to raise the male conscription age from 41 to 50, with the aim of increas- ing both industrial and military human reserves. It also discussed a proposal to conscript women for the various army auxiliary services as well as for industry, as is already done. In the compulsory in- | dustrial conscription drive, 2,151,280 wom- en have so far registered, of whom 575,463 have been interviewed about the sort of work they are fitted to do. And last week Bevin warned slackers that women volun- teer workers between 20 and 30 would be reclassified.
Germany
The Germans, always masters at orgal- ization, have as great a head start on the British in industrial mobilization as they —
PAA OA
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/j /]
eet
“Cae
sighing,
HE metal flanks of these “blitz
buggies” respond to the sting of an electric spur. And Auto-Lite supplies no more important Defense equipment than the batteries which speed such mechanized divisions into action. In today’s war, time is important. Victory results from seconds saved. 9 The auto- motive industry has accepted a leading role in preparing America’s Defense. Teamed with it, Auto-Lite is also con- tributing effective aid to the Nation. Our resources and our personnel are enlisted in the making of a wide variety of automotive electrical
it
units — batteries, spark plugs, instru- ments, wire and cable, complete ignition systems—equipment for tanks and mos- quito fleets, for trucks and reconnais- sance cars, pursuit ships and huge bomb- ers. Auto-Lite’s 18 great plants are producing other Defense material, too, including mess kits, map cases, boosters, projectiles and gun-firing mechanisms. q Speeding the successful completion of the country’s Defense Program calls for coordinated effort in every branch of American industry. In this effort The Electric Auto-Lite Com- pany is proud to have a hand.
SPARK PLUGS - BATTERIES * * AIRCRAFT AND OTHER INSTRUMENTS ETCHED, EMBOSSED AND GAUGES AND LITHOGRAPHED NAMEPLATES * * LAMP ASSEMBLIES - METAL STAMPINGS WIRE AND CABLE - IRON CASTINGS * a * HORNS AND SIGNAL DEVICES ALUMINUM AND ZINC DIE CASTINGS PLASTIC PRODUCTS - LEATHER GOODS STARTING, LIGHTING AND IGNITION * * STAINLESS STEEL KITCHEN UTENSILS
NOVEMBER 17, 1941
33
With Newsweek’s Correspondents: Shanghai Faces Winter of Hunger
SHANGHAI: Because of the shortage of foodstuffs, this city faces what may be the worst winter in its history for both Chinese and foreigners. The Japanese blockade of the interior and their “squeeze” on every shipment that does get through to Shang- hai has caused a 900 per cent increase in living costs for the Chinese since the out- break of the war. Last winter the Chinese in Shanghai faced near starvation because of similar skyrocketing prices of rice. This year, as a result of United States export control and priorities regulations, even foreigners face extreme difficulties in ob- taining imported foods. The cost of living for them has increased approximately 40 per cent since August and probably will ‘go up further.
BERLIN: The tobacco situation grows worse. Der Deutsche Volkswirt writes as follows: “In times of trouble and worry, smoking increases. Remember the Munich conference? Statistics show that Germans in 1918 smoked 194 cigarettes per person; in the year 1932, 483 cigarettes; and in 1940 a record number of 840. This year
or
consumption is expected to be still great- er.” Another article in this German eco- nomic magazine claims that because of the lack of feed there will occur in the third year of the war a decrease in the number of chickens, resulting in fewer eggs. Dur- ing the first year of the war production and importations gave each German 85 eggs, in the second year 69 eggs, and this year there will be fewer still. In 1937 importations ran around a billion and a half eggs . . . Here’s the newest official suggestion of how German women can save soap: “To retain white soft hands, wash with sawdust” . . . Instead of sending presents to the soldiers at the front as was done last year at Christmas, Berlin papers are suggesting sending them “wishing papers,” or, in other words, letting the soldiers choose their own gift. For example, a seriously wounded soldier lying in a hos- pital can ask his employer for a different position in a factory on his return, or a soldier who doesn’t want his mother or wife left alone at Christmas can ask for company for her.
Srncapore: The Malayan shipbuilding program, costing $10,000,000, is now un- der way. It involves the construction of 63 vessels, powered with 500-horsepower engines, and a number of speedy patrol launches and mine sweepers, powered with Diesel engines that are manufactured here ...A bill has been introduced in the legis- lative council that makes illegal the traffic in boys, which has risen to con- siderable proportions. The trafficstarted aft- er the Japanese invasion of Fukien prov- ince. Boys were bought for a small sum and sold in Malaya for between $50 and $100 in American money. Traffic in girls is longstanding, but officials deny that boys have been sold here as slave labor .. . Four Chinese mechanics, born and educated in the United States, left here today after a training period in the Allison factory. They will go to Rangoon, en route to Chungking, and _ rep- resent the first of a group of Chinese mechanical experts. These four expect to see China and their grandparents for the first time.
have in military affairs. In 1935 Hitler in- troduced not only army conscription but virtual industrial conscription as well by instituting a strict control of all workers.
Germany also had the advantage of drawing on a much bigger population, which has been augmented by conquest. In 1939 the Reich counted 41,090,000 oc- cupied persons, including some 2,500,000 in the army and Labor Service. By the end of 1940 the number had risen to 44,- 900,000. In July 1939 there were 24,460,- 000 wage earners, 8,130,000 of them wom- en. By this year that figure had fallen to 22,670,000, although the number of wom- en workers had risen to 8,420,000. Unem- ployment is virtually nonexistent.
To fill the shortage caused by the drain of man power for the army, the Reich is now employing about 3,500,000 foreign workers in industry and agriculture. Last ' April it was announced that Germany had 873,000 Polish workers, 177,000 from Bel- gium and the Netherlands, 150,000 from the Bohemia-Moravia Protectorate, 132,- 000 from Italy, and lesser numbers from other lands. In addition, some 1,400,000 prisoners of war have been put to work.
To keep the Nazi war machine running at full speed the Germans also developed a “dual purpose army.” In this system, during the lulls between campaigns, sol- diers left the front for their factories while skilled workers received military training. Britain cannot employ this system. The London Economist has explained why: “Hitler has used his armies when and how he has himself decided. He had been able to command the lulls and the campaigns.
But the British forces have constantly to be on the watch; the initiative is against them.”
International
General Wavell rode combtes style
Sidelights of the War
When they were told that an approach- ing hearse bore the remains of “Mr. Vick- ers,” soldiers guarding an English town during army maneuvers allowed the mourn- ers to pass. Mr. Vickers turned out to be a machine gun—presumably made by the world-famous Vickers-Armstrong firm — and the attackers chalked up a victory.
q The rolling of drums and blaring of bugles that herald German High Com-- mand communiqués when they are read on the radio got on the nerves of Wilhelm Meier. As he drank his beer in a Berlin restaurant last week and the triumphant notes began, Meier delivered a few choice remarks about the bulletins. He was over- heard by shocked Nazis, arrested, and later given a two-and-a-half-year prison term.
q A baker in Chartres was arrested by an agent of the Vichy “economic police” for giving bread to a beggar who had no food tickets. His shop was closed for a month.
q The French Football Federation, under instructions from the Vichy Sports Com- missariat, cut ten minutes from the play- ing time of soccer and rugby matches. Other sports will follow suit in order to reduce the strain on the underfed athletes.
{ Rome has converted a part of the Cata- combs, where early Christians took refuge from persecution, into an air-raid shelter.
g Sir Archibald Wavell, commander of the British forces in India, likes to wear some- thing resembling an American cowboy’s chaps when he takes his early morning canter.
NEWSWEEK
Latin-American Defense: Republics on the U.S. Lifeline
The first installment in Newsweek’s three-part survey of the military capacity of the Latin-American states dealt with Argentina, Brazil, and Chile and the second with the other seven republics of the southern continent.
But the most immediate and greatest American military interest does not lie in these ten republics. It falls instead in Mexico, the states of Central America, and those of the Carib-
Mexico
Against a background of war, interven- tion, and traditional hostility between the United States and Mexico, the Roosevelt Administration in the past seven years has turned a possible enemy into one of America’s firmest friends. One phase of this—and the one that has received the least attention—has been the growing cooperation between Washington and Mexico City in military affairs.
The most important development came last April. Then, Mexico and the United States signed an agreement for mutual use of military and civil air bases. The Mexican Army has also cooperated close- ly with the United States. It numbers 52,000 regulars and 65,000 to 75,000 re- serves. A new law passed last year and scheduled to become effective in 1942 puts all men between 18 and 45 on call for military training.
Central America
The six little states of Central America are almost defenseless. Some of them are still suspicious of the intentions of Wash- ington because of earlier experiences. But each one of them, with its tiny army and tangled politics, is of vital concern to the defenders of the Panama Canal.
Guatemala: A powerful German col- ony remains a constant worry to cham- pions of hemisphere defense, but Guate- mala’s dictator, 63-year-old Gen. Jorge Ubico y Castajfieda, has shown a willing- ness to play ball with the United States. The country’s defenses are limited to an army of 5,000 regulars and 10,600 re- serves.
Honduras: President Gen. Tiburcio Carias expressed his mind on German in- filtration by expelling Hitler’s chargé d’affaires in April this year. One of the poorest of Latin-American lands, Hon- duras nevertheless has an army with a nominal total of 94,650 regulars and re- serves.
El Salvador: In June 1940, El Salva- dor, smallest nation in Latin America, passed a law forbidding totalitarian prop- aganda. President Gen. Maximiliano Mar- tinez ousted the German consul, Baron von Hundelhausen, and Colonel von Bohnstadt, the,German commander of the Salvadorean military school. The
i
America proper.
country’s defense is entrusted to an army of 4,500 regulars.
Nicaragua: Gen. Anastasio Somoza, 45-year-old President of Nicaragua, dram- atized his stand on relations with the United States by declaring a two-day national holiday when President Roose- velt was elected for a third term. Latest figures on Nicaraguan defenses give 3,318 men and 220 officers for the standing army and 4,000 for the reserves.
Costa Rica: Technically, Costa Rica is still at war with Germany, since it joined the Allies in the World War but failed to sign the Treaty of Versailles. Rated a genuine democracy, Costa Rica has based its foreign policy on friendly relations with the United States. A writ- ten agreement between the two countries provides for cooperation in the use of Costa Rican air fields and harbors.
Panama: Under its recently deposed President,-Dr. Arnulfo Arias, the republic of Panama provided a spearhead for Nazi infiltration in the immediate vicinity of the Canal. Now, under the new Presi- dent, Ricardo Adolfo de la Guardia, the little republic has returned to the camp of hemisphere unity. Outside of a well- organized police department of 1,600 men, equipped with Browning machine guns and Thompson sub-machine guns, Panama has no armed forces.
bean area. The reason is the Panama Canal. To insure the de- fense of this absolutely vital lifeline, the United States must either control or work in cooperation with the countries that are closest to it. The state of diplomatic relations between Washington and these nations is therefore a matter of mili- tary importance such as it never is with the states of South
Caribbean
The three independent states of the Caribbean region cover the sea ap- proaches to the Panama Canal and to the southern coasts of the United States. Their history has been inextricably min- gled with that of the United States and now, more than ever before, their rela- tions with Washington are of outstand- ing importance.
Cuba: President Fulgencio Batista y Zaldivar has strengthened the island re- public’s ties with Washington. Cuba has an army of 8,000, a rural guard of 6,000, and reserves of 48,000. The navy’s prin- cipal units are two escort vessels.
Haiti: The black republic made its contribution to American independence by sending 800 volunteers to fight in the Revolution. Since the withdrawal of the marines in 1934, relations with Washing- ton have been good. The Haitian Army of 3,000 men serves principally as a police force.
The Dominican Republic: The after- math of an eight-year occupation by United States marines (1916-24) resulted in the dictatorship of Gen. Rafael Leoni- das Trujillo Molina. The mulatto caudillo cooperates heartily with the United
States. An army of 300 officers and 3,000 men and four armed coastal-patrol boats make up the armed forces.
The Mexican Army cooperates with the U.S. in hemisphere defense
Wide World
“— ~
by ted oni- dillo
ited
,000 oats
World
Our First Line of Defense —The Navy—in ever increasing strength stands watch over the American nation. And each day the tempo of our shipyards, the basic factor in our country’s naval power, is accelerated.
Bank credit—like the U. S. Navy—also is always ready. The Chase National Bank and
other commercial banks throughout the land are actively participating in financing the construction of the new shipyards
which are beginning to dot the nation’s
“Always Ready”
geese be
**...The Navy is always ready”’
Secretary of the Navy Frank Knox May 7, 1941 coastline. The staccato tattoo of thousands of riveting machines heralds the growth of an invincible two-ocean navy, as destroyers and other ships of war glide down the ways months ahead of schedule.
In the building of shipyards, as in other rearmament activities, bank credit, avail able today at costs lower than ever before in the nation’s history, helps to place in the hands of our armed forces the means of de-
fending the country’s safety and integrity.
THE CHASE NATIONAL BANK
OF THE CITY OF NEW YORK
Member Federal Deposit Insurance Corporation
36
NEWSWEEK
DEFENSE
Joint U.S.-Canadian Arsenal
to Mesh Arms-Production Lines
Industry of Each Nation Would Concentrate on Articles It Could Best Produce
In eighteen months as the arsenal of democracy the United States has been piling up armament commitments of $63,000,000,000. To the north, Canada has been striving since the outbreak of the war to make good on a smaller yet no less ambitious assignment—that of chief “empire arsenal” in the British common- wealth.
Canada has a population of only 11,- 500,000, against this country’s 130,000,000, and an estimated national income of $6,000,000,000, compared with our $90,- 000,000,000. Nevertheless, the sprawling but sparsely populated land across the border has already handed its war indus- tries the job of turning out about $2,600,- 000,000 of guns, ships, shells, planes, tanks, and other munitions—orders which in terms of American national income would amount to some $39,000,000,000.
Together, the Canadian and American arms programs represent the sum of North America’s aid to Britain, Russia, and other
embattled countries. And with the arma- -
ment efforts of both New World coun- tries now getting into high gear, the need has grown greater every day for closest coordination of the programs. This must
Harris & Ewing Milo Perkins, supersalesman
be done to eliminate duplications, . speed up cooperation in production, and iron out tariff, exchange, and other difficulties. In line with that, and as a direct result of recent talks at Hyde Park, N.Y., be- tween President Roosevelt and Prime Minister Mackenzie King, Washington and Ottawa last week took a new step to streamline both national efforts. This con- sisted of the appointment of a Joint De-
—
fense Production Committee. Its job will be to survey arms-production capacity in each country and to see to it that each concentrates on the “defense articles which it is best able to produce.”
Supplementing cooperative measures al- ready taken, including the working out of joint strategy for the defense of the North American Continent against any attack, the new body gave the two countries a full-fledged coordination setup consisting of four committees:
DerFense: Appointed in August 1940, the United States-Canadian Permanent Joint Board of Defense, consisting of five Americans headed by Mayor Fiorello La Guardia of New York and five Canadiais, meets about once a month and will assem- ble in Montreal again this week. It has already nearly perfected plans for com- plete integration of defense on both East and West Coasts. And with the Canadian and American Navies already cooperating closely in Atlantic waters, the importance of this committee’s task was brought home last week with an announcement by Angus L. Macdonald, Canada’s Navy Minister. He revealed that U-boats were operating “right off the coast of Newfoundland,” a zone on the direct route to Iceland and hence a special hunting ground for Ameri- can warships which operate in those wa- ters. But he also disclosed that Canadian naval units had recently attacked two of the marauders, possibly sinking one.
Economics: The eight-man Joint Eco- nomics Committee, appointed last May, supervises general economic relations be- tween the two countries. It is a product of the “Hyde Park Declaration” of April 20 last, in which Mr. Roosevelt and Prime Minister King pledged coordination of their countries’ arms programs, shifted to Lend-Lease auspices many American sup- plies used by Canada in producing war
International
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HIDDEN IN A BRUEGHEL MASTERPIECE — the key to this whiskey’s rare flavor !
FINE ARTS
+f lend Neagle Whisk
Ir ts OVER 380 years since Pieter Brueghel’s talented brush captured on canvas the charm of an Italian land- scape in this treasured painting, “The Fall of Icarus.” Brueghel’s distinctive technique in building up and blending his colors to perfection is recreated for you here in the master’s own style by Georges Schreiber, well known contemporary artist.
This analysis of Brueghel’s superb blending tech- nique is the key to another masterpiece—Fine Arts
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FINE ARTS
A Blend of Straight Whiskies
DISTRIBUTED BY CANADA DRY GINGER ALE, INC., NEW YORK, N. Y.
COPR. 1941, CANADA DRY GINGER ALE, INC,
_ THE STRAIGHT WHISKIES IN THIS PRODUCT ARE re OLD — 90 PROOF
{
THAT GOVERNMENT OF THE PEOPLE + BY THE PEOPLE “<p” SHALL NOT PERISH = -
"No matter what it takes, no matter what it costs, we will keep open the line of legitimate commerce in these defensive waters”’
GAIN, America has spoken. She has declared that she will main- tain the freedom of the seas at all costs, and will use every means with- in her power: to preserve our demo- cratic way of life.
To carry those measures through, an important link in the chain of our defense needs strengthening. It is a link vital to the building of ships, planes and armament, because it will determine the speed and quantity of their production. It is adequate freight car equipment.
Transportation is the primary arm of defense, and the primaryarm of transporta- tion is the freight car
The fundamental importance of freight cars is self-evident. We, as a nation, propose a two-ocean navy—a mighty merchant fleet. To build them means, first, freight cars in sufficient numbers to deliver the quantities of
materials needed for their construc- tion and to keep them supplied after they are built.
Again, we propose an armament in- dustry capable of serving as democ- racy’s arsenal—and a modern mobile army. American railroads were pri- marily planned for civilian needs... needs for fuel and food and shelter that won’t cease for the duration of the emergency. Thus, the railroads must assume a double burden. And, beyond that, they must also take over the cargoes of coastal ships trans- ferred into oceanic service.
The full capacity of the car man- ufacturers will be taxed to meet the Government’s estimated freight car requirements.
A new freight car every 4Y, minutes
Right now Pullman-Standard Car Manufacturing Company is turning out one complete freight car every
—Franklin D. Roosevelt
AY minutes of the working day... and that is not the limit of its capacity. As and when materials become avail- able—so that it can make full use of multiple shift operation—the present high rate of production will be sub- stantially increased.
With that as its goal, Pullman- Standard pledges the full efforts of its production, engineering and research staffs ...the full measure of experi- ence embraced by its 82 productive years...and the loyal, untiring de- termination of every worker in its many plants to do his part toward preserving the American way.
For, although Pullman-Standard, in addition to Railroad and Transit Equipment, is building Tanks, Trench Mortars, Gun Carriages, Shells and Airplane Wings, it recognizes that noth- ing it can contribute to our defense pro- gram is more important right now, than the effective use of its total, freight-car- building capacity.
Copyright 1941, Pullman-Standard Car Manufacturing Company
PULLMAN-STANDARD CAR MANUFACTURING COMPANY
CGQHICAGO « ILLINOIS
NOVEMBER 17,
epee ETD
1941
goods for Britain, and arranged for large shipments of Canadian raw materials to the United States. Meeting alternately in Canada and the United States, with the American delegation under Alvin H. Han- sen, Harvard professor and adviser to the Federal Reserve System, it has another job—that of safeguarding Canada’s ex- change position, now under heavy strain because of the Dominion’s immense pur- chases in this country.
Matertiats: Also set up last May, the four-man Joint Materials Coordinating Committee operates to prevent uneco- nomic competition between the two coun- tries for each other’s raw materials. Its chief American spokesman is William L. Batt, OPM production expert.
DeFeNsE Propuction: Largest of all the joint committees so far formed, the newly appointed Defense Production body, consists of six Americans under the chairmanship of Milo R. Perkins, execu- tive director of the United States’ Eco- nomic Defense Board,* and an equal num- ber of Canadians headed by G. K. Shiels, Deputy Munitions and Supply Minister. It will take over the vital job of coordi- nating actual output of completed arma- ments. In this task, the committee will speed up measures under which each country will use the facilities with which it is most favorably equipped to turn out finished matériel or supply the other with parts.
That the new committee will tackle its job efficiently was indicated by the ap- pointment of Perkins, 41-year-old Mil- waukee-born go-getter, to head the Ameri- can members. Onetime Texas supersales- man of burlap and cotton bags, with a $20,000 income, Perkins got his start in the government by writing a letter in 1934 to Henry A. Wallace, then Secretary of Agriculture. In that he announced that he now had all the money he wanted, hence intended to throw up his business so as to devote his time to making the world a better place to live in. To that end, he would gladly take a job in the Administra- tion’s farm program. He eventually got it.
Appointed in 1935 as assistant to Wal- lace, whom he now frequently joins in boomerang-throwing excursions on the banks of the Potomac, Perkins has since made his mark in a series of high-powered jobs. These have included Assistant Ad- ministrator of Farm Security and Admin- istrator of Surplus Marketing, a job in which he authored the stamp plan for distributing food surpluses to reliefers through retail stores. More recently he launched a huge program to buy up food for Britain. Also, since September, he has
*The other American members are J. V. For- restal, Under Secretary of the Navy; W. H. Harrison, OPM production director; Robert P. Patterson, Under Secretary of War; Edward R. Stettinius Jr., Lend-Lease Administrator, and H. L. Vickery of the Maritime Commission.
a
39
been executive director of the Economic Defense Board under Wallace’s chairman- ship.
Significance
During the World War, because of the late entry of the United States as a bellig- erent, machinery for coordinating the Canadian and American armament pro- grams was not set up until the early part of 1918. The result was that little could be accomplished before the Armistice. By contrast, the prompt advent of the United States as a major working part- ner of anti-aggressor nations in the pres- ent crisis has permitted the two countries to get a good start in the vital job of act- ing as a team in defense moves.
The consequence has been a series of effective coordination moves both in the realms of military strategy and munitions making. And the appointment of the new defense production committee opens an even wider field for further cooperation between the United States and its neigh- bor to the north.
Although exact details of operation will not be worked out until the first meeting of the new group, plenty of possibilities for saving time and equipment through cooperation suggest themselves. For in- stance, Canada has a large Naval shell production capacity. If part of its output could be diverted to the United States, it would be unnecessary to increase United States capacity as much as_ otherwise would be necessary. In reverse, Canada could quit worrying about increasing plane
parts capacity by utilizing the plants in the United States. In general, the merger of the two defense manufacturing sys- tems should permit each nation to turn out in quantity the arms and parts it is best fitted to make.
Infantry of Future ? Heavily Armed ‘Rolling Fourth’
Wins Honors in Carolina Games
In the capital of South Carolina, Colum- bians still talk about the capture of the city by Gen. W. T. Sherman in 1865. Last week, Columbia was talking about another capture, for the city fell in the mock war- fare of the First Army maneuvers.
Tronically, this time Columbia’s chief defenders were the 43rd Division from the “damyankee” strongholds of Connecticut, Rhode Island, Maine, and Vermont, plus a field-artillery brigade, an anti-tank force, and a few planes. And most of the attack- ers were Johnny Rebs: the 31st Division from Alabama, Mississippi, and Florida, the Second Armored Division from Fort Benning, Ga., and the Fourth Provisional Motorized Division from Camp Gordon, Ga.
The credit for Columbia’s capture went to an experimental type of division Sher- man never dreamed of: the “Rolling Fourth,” a cross between an armored and a motorized division whose soldiers ride to the front in 2,904 vehicles and fight
if HONOR. ROLL
SERVING THEIR CC
YOUR POST
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HE COMMUNITY
UNTRY FOR NATIONAL DEFENSE
» BGK, IR 8 Sai MAIO NR Bh, 848.
TYHCE OR BANK
* SPRING VALLEYxy
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Tribute: Citizens of Spring Valley, N.Y., chipped in their nickels and dimes to erect this neon-lighted signboard bearing the names of home boys in the armed services. So far 162 names have been posted.
¢
40
afoot. Set up in July as a laboratory to de- velop the infantry of the future, the Fourth has been shuffled and reshuffled as ideas were tried out in the field until it has become a streamlined version of the streamlined division. In this overhauling it has achieved a 50 per cent increase in fire power while decreasing personnel from 16,000 to 14,862.
Instead of the regular triangular division setup of three regiments, each with a sup- porting artillery battalion, it has two rifle regiments, while the third is scrambled to man 54 medium tanks, 52 light tanks, spe- cial anti-tank, anti-aircraft, and reconnais- sance battalions. In addition, the Fourth boasts a 1,000-man reserve support battal- ion, as well as heavy concentrations of artillery, including the still very scarce 105-millimeters.
To this rejiggering of the standard in- fantry division, the Fourth’s officers, headed by Brig. Gen. Fred C. Wallace, have added other radical features. The re- connaissance battalion is used to feel the enemy out while radioing information back, and tanks have been assigned as roving front-line observation posts for high of- ficers. On top of this, more independence of command has been scattered to small units, and a platoon of military police is permanently assigned to protect the divi- sion command post against parachutists.
The Fourth takes such changes in its stride, for it thrives on radical ideas. When a visiting staff officer jokingly suggested it have attack bombers and scout planes as integral components, he was astounded when his idea was seized upon for trial when such equipment becomes available.
This division, held in reserve at Chester, S.C., turned the tide in the assault on Co- lumbia last week. On Wednesday, the at- tacking forces moved on the capital, with the Second Armored ranging ahead prob- ing the soft spots and the 31st on the left flank acting as a steady pressure force of infantry. By Thursday, they were nearing the outskirts of the city but had been slowed down to the point of stalling. To provide the punch necessary to enter the city, they called on the Fourth.
Heading out of Chester by two high- ways, the Fourth raced 70 miles over the foggy Carolina hills. It made contact with its stymied allies in the early morning, passed its fresh forces through the lines of the Second Armored, and poked into Co- lumbia. By 9 in the morning, the Fourth had thrown the defending forces out, cap- turing the city as the maneuver ended.
As a result of the tactical success of this exercise, staff officers are discussing com- bining this type of motorized division with full-fledged panzers to form attack corps. At the same time they are speculating as to whether the Fourth is the prototype of all infantry divisions as an answer to blitz- krieg. Meanwhile, the War Department has tentative plans for about five more similar divisions.
Diaper Priority The Connecticut State Health Commis- sioner, Stanley H. Osborn, doesn’t want to
alarm anybody, but he thinks he has very bad news for the smallest fry. Last week,
—
when he put through a requisition for 380 yards of diaper cloth needed for laboratory work, he was told that the Army and the Red Cross had priorities on the material and that his order probably would be the last one accepted. He was advised to find a substitute.
Civilian Crusade
To preserve the American way of life from the “pagan slavery proposed by the would-be dictators of the world,” Presi- dent Roosevelt last week proclaimed a nationwide Civilian Defense Week. Begin- ning Armistice Day, Nov. 11, and extend- ing through Nov. 16, the six-day period will be used to stimulate public interest in civilian preparedness.
com Col. Duncan, anti-isolationist
NEWSWEEK
Highlights among last week’s prelimi- naries for this event:
The Office of Civilian Defense, at the direction of its chief, Mayor Fiorello La Guardia of New York City, asked the 3,962 local defense councils throughout the United States to key their activities to the following six-day program: Armi- stice Day—emphasis on “total prepared- ness,” including cooperation with vet- erans’ demonstrations in support of civilian defense; Nov. 12—War Against Waste Day; Nov. 13—Sign Up for Defense Day; Nov. 14—Health and Welfare Day: Nov. 15—Civilian Protection Day; Sunday, Nov. 16—Freedom Day.
| Revealing that she had already signed a “consumer pledge” not to waste food in the White House, Mrs. Franklin D. Roose- velt, assistant OCD director, said that American housewives throughout — the nation would be called upon to sign a similar pledge during Civilian Defense
Week.
4] Mayor La Guardia, acting in his capacity as OCD chief, aroused the ire of the Rev. Dr. Charles Clayton Morrison, editor of the nondenominational antiwar Christian Century. The mayor had sent various lead- ing clergymen the outline of a sermon based on the liberties safeguarded by the Bill of Rights, with the suggestion that it might be suitable for Freedom Day church services. Dr. Morrison denounced the “canned sermon” as an “unspeakable in- sult to the clergy of the United States.” In reply, La Guardia pointed out that no- body was seeking to force clergymen to use the sermon.
‘Out of Bounds’
Expressing opposition to “anything like- ly to bring about a division of national effort,” Col. Early E. W. Duncan, 47- year-old tough-looking commandant of the Air Corps Technical School at Lowry Field, Denver, Colo., last week ruled Den- ver headquarters of the isolationist Amer- ica First Committee to be “out of bounds” for the 10,000 men under his command. He also threatened to extend the ban to churches whose pastors continued “op- posing the definite policy of the nation.”
Promptly, the colonel’s move provoked a storm of protest. Arthur Brooks, Colo- rado America First chairman, denied the committee had sought to propagandize soldiers. In Washington, isolationist sena- tors led by Burton K. Wheeler denounced the step as un-American and infringing upon constitutional rights of freedom of speech and worship. And Sen. Bennet! Champ Clark called Duncan a “little pin- headed colonel” who ought to be court- martialed.
Despite the outcry, Duncan stuck to his edict against soldiers visiting America
First offices but said his order had been
on xo eo lure Od eet
city Rev. r of tian ead- mon the at it urch the . in- tes.”
NOVEMBER 17, 1941
41
misconstrued on the question of banning attendance at churches. “I have issued no such order and I do not contemplate issu- ing it,” he declared. He added, however: “I might have to take some action if a church is used as a tool of political or- ganizations or distributes subversive liter- ature or ideas.” ‘
Navy Bulwark
Since last July when the marines landed there, Iceland has been known in Navy parlance as an “outpost.” Last week, with the Navy preparing to follow America’s shipping into the war zones when the Neu- trality Act is revised, the island was official- ly designated a naval operating base.
This gives the Fleet a string of six operating bases in the North Atlantic— Iceland, Newfoundland, Newport, R.L., Norfolk, Va., Bermuda, and Guantanamo Bay, Cuba—with a seventh soon to be completed in Trinidad. The Navy an- nounced last week that all of its Atlantic bases, operating and aviation, would be in service by early next year.
© Letters mailed in the United States in July began to reach the troops in Iceland last week. The delay was caused by the routing of mail via Bermuda and London. Air mail has been arriving by destroyer after a ten-day voyage, and ordinary mail from soldiers at the base to the United States has also been carried by warship.
Army in Business
In the modernistic, blond-paneled re- ception room of Air Associates, Inc., at Bendix, N. J., last week, the official greeter was a burly Army corporal with mud on his feet, a steel helmet on his head, and a rifle in his hands. Beyond him, in the offi-
ces formerly occupied by President F. Leroy Hill, sat the new boss of the plant, Col. Roy M. Jones, Eastern district super- visor of Air Corps Procurement. He was flanked by his staff of experts, Maj. Peter Beasley, a crack production man and a former president of Lockheed Aircraft, and Maj. Karl R. Bendetson and Capt. Charles P. Burnett, former Seattle lawyers.
Day and night since Oct. 30, when President Roosevelt ordered the Army to take over the aircraft-parts plant to end almost four months of labor troubles (Newsweek, Nov. 10), the military has been on the job. To maintain order among the 800 scrapping employes who were hired back regardless of union or non- union status, 1,100 soldiers have camped on the factory grounds in their peak- topped tents. Colonel Jones and his staff have worked both day and night shifts, catching naps on improvised cots in their offices and eating at their desks.
As a result, production now is running above normal, deliveries have been re- sumed, and the plant-expansion program, started under private operation, is going forward again. But licking the production job was only half the struggle. The Army had also to solve the knotty legal problems arising from its first attempt at direct operation of a seized plant. In the World War Smith & Wesson seizure, the Army formed a corporation to operate the fac- tory. More recently, the North American Aviation plant was turned back to private management before the military had to face the legal problems. But at Air Asso- ciates, the Army, in effect, fired the entire personnel, then hired back only the work- ers, dealing itself the active opera- tions job. This brought up many prob- lems which needed kid-gloved han-
dling, since new precedents were being es-
tablished. : Among the first legal knots has been the
question of whether the employes, now
International
The Navy launched the world’s largest flying boat. It’s named Mars
government workers, are eligible for social security. Although regular government em- ployes are ineligible, Army men said they had made special arrangements for Air Associates workers. The question of the Army’s power to fix pay rates, since Con- gress sets the pay for workers hired by the military, was solved by a special order from the Secretary of War. A similar order set up a special Army fund to receive the money taken in by Air Associates.
These problems are similar but much more complicated than the Navy’s at the seized Federal Shipbuilding & Dry Dock Co. at Kearny, N. J. What complicates the Air Associates situation is the fact that it handles about 40,000 different items ranging from nuts and bolts to oil pumps, and that if production stops again it will affect most of the nation’s plane and en- gine makers.
Defense Week
Tanks: Cadillac has developed a new type of light tank which will use the com- pany’s regular automobile engine in place of the airplane-type power plants now in use. It will feature Hydra-Matic Drive to eliminate the necessity for shifting gears, an operation which sometimes stops con- ventional tanks and momentarily makes them targets for enemy fire. Other tank news: Chrysler received a new $18,875,000 contract to double its tank production .. . Fisher Body was allocated $25,782,000 to build a plant at Flint for medium and heavy tanks .. . Still being nego- tiated is a contract for a huge Ford tank plant.
Atiocations: The SPAB moved to- ward an all-out materials rationing sys- tem by ordering a survey of 1942 produc- tion plans for all industries. The plan is to expand the allocations system, now being used to provide defense industries with such scarce commodities as aluminum, magnesium, copper, nickel, and synthetic rubber, to many other critical materials. In many cases this will eliminate the pri- orities system, which has broken down because of shortages so severe that some defense producers with high ratings can- not get needed supplies. Under the alloca- tions plan, the defense and essential ci- vilian industries will get a share of what- ever supplies are available.
‘BattLtesuipe’: Amid cheers from 3,000 spectators and shrill toots from nearby surface ships, the Navy’s XPB2M-1 “fly- ing battleship,” largest craft of its kind in the world, was launched in the Middle River, near Baltimore, on Nov. 8, at the Glenn L. Martin plant. Christened the Mars by Mrs. Artemus L. Gates, wife of the Assistant Secretary of the Navy for Air, the huge 70-ton $2,500,000 patrol bomber will be given its first flight as soon as tests are completed.
42
NEWSWEEK
BUSINESS - LABOR: AGRICULTURE
U.S. Board’s Rebuff of Lewis Climaxes a Hectic Labor Week
Navy Seizes 10 Projects in AFL Walkout at San Diego; Rail ‘Cool-Off’? Faces Test
Many a union leader had a gloomy feel- ing Monday night (Nov. 10) that the turning point in the eight years of gains for organized labor finally had arrived.
Five days earlier, a Presidential emer- gency board had handed down a railway wages decision so disappointing to the rail- way brotherhoods that they rejected it. That was the first such refusal in Ameri- can labor history. Then, early Monday, the United States Navy labeled an AFL build- ing-union walkout in San Diego “an open revolt against the United States of Ameri- ca” and proceeded to break the strike. Finally, for the third and biggest upset of all, the National Defense Mediation Board at 6 that evening confounded all of the labor experts’.forecasts. It voted down John L. Lewis’ demand for a closed shop in the “captive” coal mines, which are owned by the steel companies.
There had been no advance hint to pre- pare unioneers for these reversals. True, in his speech before the International Labor Organization (see page 44), President Roosevelt scolded those labor leaders who “place personal advantage above the wel- fare of their nation.” However, he had voiced much the same sentiments the week before in his Navy Day address.
Hence the nation was unprepared for the Defense Mediation Board’s verdict in the closed-shop case. It was handed out just five days before expiration of the deadline Lewis had set before he had sent his United Mine Workers back to work at the Presi- dent’s request. The announcement itself was surprising enough—just the terse statement from William H. Davis, NDMB head, that the board had voted to recom- mend that the union and the steel com- panies sign an agreement without the closed-shop proviso. The margin of the vote was startling, too, for only Philip Murray, CIO president, and Thomas Kennedy, sec- retary-treasurer of the UMW, upheld Lewis. The four employer representatives, the three liberals representing the public, and the two AFL members—all voted against the union shop.
Lewis refused to comment on the ver- dict. And when reporters asked Chairman Davis how he would enforce the order, the
Summers in The Buffalo Evening News
“The ‘Laboratory’ Experiment”
weary mediator replied: “My God, we are hoping that they accept it!”
When a newspaperman suggested that the miners might reject the decision, he said only this: “We'll cross that bridge when we come to it.”
Navy
The Navy’s crackdown was precipitated by a strike on three’ military projects in the San Diego region to enforce demands for a $l-a-day wage increase. When Navy officials countered with an ultimatum that the strikers return to work or face dis- missal, the AFL, building trades on Mon- day morning staged a general protest strike. That tied up seven additional de- fense construction projects in the region.
Thereupon the Navy ordered Rear Ad-—
miral C. A. Blakely, commandant of the Eleventh District, to take over all of the contractors’ equipment and break the strike. Declaring that the walkout violated the national AFL pact with the service, Blakely threatened to bring Federal civil- service workers on the job if sufficient employes failed to pass the picket lines. The crackdown bore fruit immediately: the OPM announced that international officers of all the AFL crafts except the carpenters had ordered the men back to work.
Rails
The railroad crisis, which threatened the nation with a serious transport strike for the first time since 1922, was a long time
in coming to a head. Early last summer the nineteen railway unions had filed demands ‘or wage increases of 30 per cent and up- ward for the 1,150,000 railway employes, and in July they started bargaining nego- tiations with the carriers’ representatives. Then, when negotiators became hopelessly stymied over the demands, all the complex strike-prevention machinery incorporated in the Railway Labor Act was started up. The Railway Mediation Board first tried to settle the dispute, then the President appointed a special fact-finding boar headed by Dean Wayne L. Morse of the University of Oregon Law School. His agency completed its labors and handed in its report on Wednesday, Nov. 5, almost six months after the unions first broached their deniands.
The Morse board advocated increases for the workers but shaved the demands considerably. It suggested that the 350,000 operating employes, represented by the “Big Five” brotherhoods of engineers, fire- men, conductors, switchmen, and trainmen, get a 7% per cent increase instead of the 30 per cent asked. For the 800,000 non- operating employes—the clerks, shop me- chanics, maintenance-of-way men, etc.— who were represented by the fourteen unions affiliated with the AFL, the board suggested a raise of 9 cents an hour, in- stead of the 30-cent-an-hour boost re- quested.
Immediately after the board’s verdict was revealed, representatives of the broth- erhoods denounced it as the “most disap- pointing recommendation rendered by a Federal tribunal in the last 30 years.” And on Friday, the brotherhood officials de-
Russell in The Los Angeles Times
“The Monkey Wrench Swallower”
OR VEY ow!
Here’s What Keeps the [ron in “Iron Men”
“Pig boats,” Navy men used to call them, but they’ve got to think up another name now, for they’re air con-
ditioned by York. These days submarine crews of the
United States Navy are assured of good air... air that
Fred B. Kinley, York marine specialist, instructs U. S. Navy machinist’s mates in submarine air conditioning at the York-Navy Training School.
keeps red blood red, senses alert, and hands steady. And today, machinist’s mates of the submarine ser- vice, from as far away as Honolulu, are going to school at the York plant to study the air conditioning and
refrigeration equipment that is going into the subs.
In a specially set up schoolroom, the first of its kind ever undertaken, these Navy machinists will operate typical submarine installations, study the equipment piece by piece, as well as the theory of air conditioning and refrigeration. Rigid examinations are assurance that on their return to duty these men are prepared to operate and care for their machinery under the most severe con- ditions of naval service.
York is glad to be able to perform this service for the Navy. York Ice Machinery
Corporation, York, Pennsylvania.
YORK REFRIGERATION AND AIR CONDITIONING
“Headquarters for Mechanical Cooling Since 1885”
A FEW OF THE MANY NATIONALLY-KNOWN USERS OF YORK EQUIPMENT—American Air Lines « Armour « Bethlehem Shipbuilding « Borden Canada Dry « Coca-Cola ¢ Curtiss-Wright « du Pont « Eastman Kodak « Esperson Bldgs. « First National Stores « Firestone « Ford General Baking « General Foods ¢ General Motors ¢ Goodrich « Massachusetts Mutual Life « Montgomery Ward « Pabst Brewing Procter & Gamble « Sears Roebuck « Shell Oil * Swift « Texas Company « United Fruit « U. S. Army « U. S. Navy « Woolworth
4A
NEWSWEEK
clared that the proffered 714 per cent in- crease was an “insult” and ordered a strike call. Under the law, this cannot take place until Dec. 5, thirty days after the fact- finding board’s report was filed.
Elsewhere on the strike front, President Roosevelt persuaded his closest friend in the AFL, Daniel J. Tobin, teamsters’ union president, to terminate a jurisdictional strike among Detroit express workers. Tobin at first refused, but after a second plea from the President consented to sub- mit his case to a special fact-finding board also appointed under authority of the Rail- way Labor Act.
Illegal walkouts staged by locals of the CIO United Automobile Workers also made 20,000 Ford Motor Co. employes idle for a day and threw 4,400 workers at the General Motors assembly plant at Lin- den, N.J., out of work.
Significance
Undoubtedly the legislative situation, as much as the facts of the case, influenced the NDMB’s rejection of the Lewis closed- shop demand. Each new outbreak of de- fense strikes has further aroused public criticism and jammed the Congressional hopper with new strike-curbing and union- curbing bills. Even Sen. George W. Norris of Nebraska, who fathered labor’s pet anti-injunction law (the Norris-La Guar- dia Act), warned that he would support restrictions on unruly unions. Hence De- fense Mediation Board members realized that bowing on the closed-shop issue might cause irritated congressmen to rush through some of the more drastic labor curbs.
As for the railroad crisis, few observers expect it to result in an actual walkout, since the President has plenty of time to arrange a new compromise. Meanwhile, the failure of the Railway Labor Act’s ma- chinery to settle a dispute for the first time in no way detracts from the brilliant record of that model law. Since it was re- vised in 1934 the carriers have lost the trifling total of around 140,000 man-days work in strikes. In contrast, there have been 24,284,981 man-days lost in defense strikes alone just from July 1, 1940, to Oct. 1, 1941. But the greatest merit of the law stands out in bold relief now that its mediatory machinery has failed. That is, of course, the protracted cooling period the statute provides.
Son Steps Up
At the time of his death in 1938 Harvey S. Firestone Sr. was said to have planned ahead for twenty years the future of his company. In 1932 he assumed the chair- manship of Firestone Tire & Rubber, re- linquishing the presidency to John W. Thomas, the broad-shouldered, amiable plant supervisor and vice president who yoined the firm in 1908 and who knows
many workers by their first names. Mean- while, Harvey S. Jr., oldest of the found- er’s five sons, was being trained for leader- ship. After graduation from Princeton in 1920, he worked in the home office for six years and then went abroad to oversee Firestone foreign properties and develop its new rubber plantation in Liberia. In
CO NO
Promoted: Harvey Firestone Jr.
1929 he came home to a vice presidency.
Last week a major step in the founder’s plans unfolded as Harvey Jr. was elected president and Thomas was raised to the post of chairman, vacant since Harvey Sr.’s death. Dark-haired and gray-eyed, Harvey Jr. at 43 is a little-known figure, moving quietly in his own small social circle, but is one of the nation’s hardest-working ex- ecutives. His office day often runs to eleven hours. For relaxation he turns to music, a love he shares with his wife and 17-year- old daughter.
His four brothers, with whom he once formed a creditable polo squad, also hold high executive posts with the company.
Flax Family
Flax straw, used abroad for linen mak- ing, was long a waste product in the United States, where the plant is grown primarily for its seed, to be converted into linseed oil. However, when the war cut off im- ports of French cigarette paper, made from linen fags, flax growers in this country found an outlet for their straw in the rapidly *expanding domestic cigarette- paper industry, which now supplies the bulk of tobacco companies’ needs.
To prepare the flax for paper making,
the fiber is separated by a decorticating
machine from the worthless shive, or woody portion of the plant. One such machine was invented several years ago by the late
Dr. Karl Wessell, textile engineer. To ex- ploit his invention, the American Fibre Co, was formed, financed with Eastern capital and headed by Leland Oliver Walker, 33- year-old former Texas theater operator who became acquainted with Dr. Wessell in 1937 while running a 700-acre vegetable farm near San Bernardino, Calif. Last week the company’s $250,000 decorticating plant at Helm, Calif., one of a number of such plants which have sprung up in the flax-growing sections of the country, turned out its first bale of fiber, forerunner of a 200-ton daily output.
Besides providing the raw material for cigarette paper, both in fiber and pulp form, Walker’s company plans to develop many other applications for flax straw. Through a degumming process he will con- vert it into linen fiber to be sold to cloth- ing mills for admixture with cotton and wool to increase their durability. Lack of linen machinery and the coarse, dark qual- ity of California flax prohibit going into the production of pure linen cloth. He also hopes to open a market for flax in the production of twine, cordage, and oakum, used in shipyards for caulking. Even the worthless shive is to be utilized by convert- ing it into insulating board and plastics.
Walker, 185 pounds and chubby-faced, has five of his brothers associated with him in the new enterprise. His father is the company’s general superintendent and tex- tile engineer and his wife acts as his secre- tary. “The family has had its ups and downs, mostly downs, for a long time,” he observed last week, “but it begins to look like we’re on our way up for keeps now.”
For a Better World
Labor’s Postwar Job Stressed by F.D.R. and ILO Delegates
Twenty-two years ago, when the newly formed International Labor Organization of the League of Nations met in Washing- ton for its first conference, someone with prophetic insight handed the job of straightening out bungled arrangements for space and supplies to the bustling young Assistant Secretary of the Navy, Franklin D. Roosevelt. This country, steering clear of the League, did not join the affiliated ILO until 1934 when ILO’s onetime friend in need was beginning his second year in the White House. Completing the cycle. Mr. Roosevelt last Thursday became the first United States President to address a League of Nations body, when he spoke to 250 representatives of 33 countries invited down to Washington from an ILO con- ference at Columbia University in New York.
Concluding a ten-day session and great- ly heartening the delegates, many from in- vaded lands, the President’s broadcast
speech summed up authoritatively the two-
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fold program for government, employers, and employes stressed by the delegates themselves: to lick Hitler and start planning now for “the better world we aim to build.”
The President admitted that in the struggle against the Nazis this country so far has been called on only for “extremely limited sacrifices.” But he gave a hint of things to come by stating emphatically that the realistic course was to step up United States armament output by using three shifts a day. He also was critical of labor leaders who use their “economic power” to enforce acceptance of their de- mands rather than using the established machinery for mediation of industrial dis- putes. In the postwar world, the President said, there must be no place for special privilege for either individuals or nations.
While ILO conferences in the past have aimed to improve wage, hour, and other working conditions throughout the world, this session, the first since war broke out, necessarily was concerned with what Mr. Roosevelt called ILO’s “essential part ... in building up a stable international sys- tem of social justice for all peoples every- where.”
Impressive evidence of the serious and united purpose underlying the rather for- mal proceedings was given early last week by representatives of Poland, Czecho- Slovakia, Yugoslavia, and Greece. Meet- ing quietly in the Low Memorial Library, these delegates, with the prior approval of their exiled governments, signed a declara- tion looking toward the formation after the victory of a confederation of Central European states to work for common po- litical, economic, and social objectives. Hungary, Rumania, and Bulgaria will be asked to join what would be a_ buffer state of more than 100,000,000 people be- tween Germany and Russia.
47
This bold, “grass roots” proposal for the postwar period will be among many studied in the months ahead by the ILO permanent organization and research staff, the only active international agency work- ing on peace objectives. A year ago the ILO moved its staff and valuable labor files from its palatial quarters in Geneva to a modest building in Montreal fur- nished by McGill University. The chair- man of the governing body is Prof. Carter Goodrich of Columbia, while the acting director is Edward J. Phelan, Versailles- trained British diplomat who took over when John G. Winant resigned as di- rector to become Ambassador to Eng-
land.
Aviation Reported Air-Freight Project Plans Stainless-Steel Planes
William B. Stout, spectacled, bushy- haired Detroit mechanical engineer, is one of the aviation industry’s pioneers. His Stout Metal Airplane Co., formed in 1922 and acquired by Henry Ford three years later, designed and built the famous Ford trimotored aluminum-alloy monoplanes widely used on the nation’s airways a dec- ade and a half ago. His Stout Air Serv- ices, established in 1926 between Detroit and Grand Rapids and now part of United Air Lines, was one of the country’s first passenger ways.
One of the men who put up the capital for these early ventures was Edward G. Budd, president of the Edward G. Budd Manufacturing Co., makers of automobile bodies and railway cars. The story goes that Budd met Stout on a train a couple
of years ago and remarked that he had made a profit of $40,000 on his original in- vestment in the engineer’s companies. “Any time you want to experiment again,” Budd added, “just say the word.”
Last week the trade publication The Iron Age reported that the two men were once more collaborating on an aviation project—this time a freight-carrying plane made entirely of stainless steel. The maga- zine further predicted that an order for 1,000 of the craft would soon be awarded by various Latin-American countries with the RFC or the Export-Import Bank han- dling the financing. Since many airports in the Southern Hemisphere are extremely small, it was stated that the design, drawn up by Stout, calls for a low landing speed. Mass production would be made possible by the Budd company’s exclusive Shotweld process.
Budd officials refused to comment on the story while Washington circles said that the announcement of it was prema- ture. Associates of Stout confirmed that the order was under discussion and _ re- vealed that the first ship of the proposed design, which, among other innovations, will be loaded through the nose, would be flown in January.
Stainless steel has long been used for making many plane parts, including gaso- line tanks, bomb chutes, and pilots’ seats. Budd itself in 1931 built an’ amphibian plane, the Pioneer, entirely of the metal except for the wing covering. More recent- ly, Fleetwings, Inc., of Bristol, Pa., has received a $4,500,000 order for stainless- steel two-place trainers.
Although heavier than the more com- monly used plane materials, stainless steel is considerably stronger and can be used in a much thinner sheet. Hence, Navy ex- .
(Continued on Page 49)
gay Ulumination as in the photo at left (taken Oct. 31), Peachtree Street in Atlanta, Ga., put on the dimmers last week (right photo taken Nov. 6). This can be charged to drought—the OPM ordered curtailment of
nonessential lighting in the Southeast to conserve electricity. But the blackout, aided by rains, made possible a week’s postponement—to Nov. 17—of the 30 per cent cut in consumption of industrial power by companies making non-defense products.
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48
NEWSWEEK
eh
P34
BUSINESS TIDES
Morgenthau’s Latest ‘Tax Plan
by RALPH ROBEY
ee last week by chair- man Doughton of the House Ways and Means Committee that consideration of Secretary of the Treasury Morgenthau’s newest tax idea was to be “temporarily deferred” appeared to indicate that for the moment we might safely forget this latest proposal. But that was far from the case. President Roosevelt made clear in his letter to Doughton on Mon- day that the plan is not to be thrown in the trash heap alongside the Secretary’s suggestion of a few weeks ago that the government should tax away all busi- ness profits in excess of 6 per cent. That 6 per cent idea was little more than just so much idle talk. Of course Mr. Morgenthau thought the plan had merit, but by and large no one else did, so the whole thing was certain to be short-lived. This current proposal is of quite a different character. It’s not something that the Secretary just thought up in an offhand manner. Not at all. This plan is the result of many weeks of work by various Treasury ex- perts and official advisers. It must be accepted therefore as a clear indica- tion of the direction Treasury thinking is now taking in its search for more revenue. It may be, as the Washing- ton dispatches have intimated, that the reason for bringing it forth at this time was merely to hasten action on the price-control bill. That is neither here nor there. The important fact is that this proposal is the real thing, and it will be only a matter of time until we hear more—much more—about it. Therefore it is not too early to start making up our minds about this newest method of levying taxes.
First, let’s review the broad points of the plan. Since the Treasury has not released any official statement as to what it has in mind the news reports have differed rather widely as to what is involved. In brief the idea is as fol- lows:
1—In addition to the present income tax there is to be imposed a special levy of 15 per cent on all income in excess of $750 for single persons and $1,500 for married persons.
2—This new tax is to be collected at the source. In other words it will be deducted by employers from the wages paid his workers, by corporations when
they pay interest and dividends, etc.
3—In case one is self-employed—the owner of his own business, a profession- al person with his own practice, etc.— he makes the deduction from his own income and sends it to the government.
4—If because of having the tax de- ducied at the source one pays less than he should he will be required to file a special report showing the reason for the discrepancy and remit the proper amount to make up the difference. Con- versely, if one is overtaxed he may claim a refund.
5—In calculating one’s regular in- come tax in the following year he omits the amount of his income deducted at the source and figures his tax on the basis of what he actually received.
That, according to those who should know, is the plan as it stands at the moment. It is not a scheme, as some have supposed, for merely collect- ing two years’ taxes in one year. Rath- er, as noted above, it is a.net addition of 15 per cent all along the line to the present tax schedule.
Granting that taxation is one of the best ways to prevent inflation, isn’t this a desirable proposal? It is not. In the first place, because of the personal ex- emptions allowed, the plan would be extremely difficult and costly to admin- ister.
Secondly, also because of the personal exemptions, the plan still will not touch the majority of the American public. Most of our farmers, for example, would go scot-free.
Finally, the plan is a complete dis- tortion of the principle of ability to pay. Under this proposal, in combination with present income taxes, a married man with $1,500 would pay no tax, but if his wage rose to $1,600 he would have to pay 25 per cent of the increase over to the government. And at the other extreme, a person living in California whose net income increase from $500,- 000 to $600,000 would actually be worse off than before, because on this increase of $100,000 his tax would be more than 100 per cent (California and North Dakota have the highest state taxes) .
A tax ait that has those effects is no longer funny. The Treasury had _-bet- ter do some more thinking.
)
ee
NOVEMBER 17, 1941 49 a (Continued fron Page 47)
perts agree, an all-steel plane need weigh no more than an aluminum one of similar
capacity.