Served By Leased Wire Of The ' + 1 J4 -~—T^TT^d ’ tlmtttgtnn Ittonmuj #tar ifili -: -------WILMINGTON, N. C., FRIDAY, JULY 18, 1941 FINAL EDITION ESTABLISHED 1867 Marshall Asks Full Emergency Before August SEEKS RETENTION Chief Of Staff Paints Dark Picture Of Army If Se lectees Leave WASHINGTON, July 17.—(A1)—Ap pealing to Congress to declare an unlimited national emergency be fore August 1, General George C. Marshall, the chief of staff, said today that Spain. Portugal and Africa might become the next tar get of Axis aggression. “Each move,” he added, “leaves the Axis forces more and more ready for another move.” Under such a declaration, draf tees, national guardsmen, re serves could be retained in the service beyond the year of train ing for which they were originally inducted. If they are released aft er a year, Marshall said, it will be a “tragic error” which will in crease the danger of involvement in war. The army will be “run ning around in circles,” trying to defend the country, he said. Other Developments As Marshall testified before the Senate Military committee, there were these other developments meantime, on the defense front; Legislation authorizing a $585, 000,000 program of additional ship building, ship repair and naval ordnance facilities was approved by the House and sent to the sen ate. Leon Henderson, the price con trol administrator, told a House committee investigating labor mi grations, that rent control would be necessary in certain areas when defense work is concen trated unless rent increases are limited voluntarily. Defense officials said a new pro gram for a substantial increase in tank production was being drawn up at OPM. Funds were included, they said, in appropriations re cently requested of Congress by President Roosevelt. The OPM announced that rifles and sub-machine guns are being turned out at a rate of more than 1,500 a day. Patterson also announced that the army had reached a peace time peak of 1,477,000 men, and said that substantial deliveries had been attained on a new light bomb er which he said was superior to any dive bomber in Europe. Before the senate committee, Marshall said that close attention was being paid to the German Russian war. Officials did not know what would come next, he added, but they envisioned future steps of great magnitude by the Axis. “You can see Spain, Portugal and North Africa covered very quickly,” he said. “Each move leaves the Axis forces more and more ready for another move. “There is no doubt whatsoever in my mind that unless we make businesslike preparations we may find ourselves in a tragic situ ation.” Senator Hill (D.-Ala.) inquired whether it was true that “each move brings danger nearer to \hs.” “Exactly,” was Marshall’s re (Continjued on Page Two; Col. 4) Eire Promises Fight In Event Of Attac DUBLIN, July 17.—OP)—PJ Minister Eamon De Vale the Dail tonight that one attacks us, then evei of us can die. If neces fighting for what we are tain is a just cause.” ‘‘I say that no matter from which side we are attacked, that is the position we are tak ing up and that is not a cow ardly position. “If we are attacked at all it will be by one of the big na tions of the world. We have to face it and we are prepared to face it. We are determined to live our own life.” WEATHER HALTS BEACH MANEUVERS 18 Ships, With Soldiers, Marines Kept Far At Sea; Cameraman Is Injured JACKSONVILLE, July 17.—M— Squally weather and mountainous seas caused a postponement today of the operations of thousands of soldiers and marines who planned to establish a beachhead on the Onslow county shore. The landing will be made to morrow, weather permitting. It is intended as a practice in landing strategy from the 11 transports and destroyers anchored about four miles out in the Atlantic. A few camiiramerj brgved the rough seas and went out in a land ing boat but couldn’t get close tc the ships. The motor went dead nearly four miles out and the cameramen suffered bruises and bad cases of sunburn. Ty Sanders, Universal newsreel man from Atlanta, suffered a sprained knee when he jumped from a landing boat into the surf. Hugh Humphrey and Rye Page, Jr., Star-News photographers as signed to cover the joint army marine maneuvers in Onslow county, were in the open boat that attempted to make contact with 18 army and navy ransports lying off the Onslow coast yesterday. This cryptic telegram was re ceived from them last night: “No pictures. Rou;|ii s.e a s. Everyone sea-sick including a couple of marines. Huge ground swells prevented boat with camera men from getting anywhere near transports. Maybe better luck to morrow. 2 Resigned Councilman Named City Treasurer WHITEVILLE, July 17. — Jack Hayes, resigned city council mem ber, was appointed by the council to day as town clerk and treasurer suc ceeding F. M. Smith. Mr. Hayes had been a member of the council since the middle of May, having been elected May 6. The new clerk is expected to take orfice by August 1. HOPKINS He Set a Precedent k . . HARRY HOPKINS VISITS BRITAIN Attends War Meeting Of English Cabinet; Con fers With Churchill LONDON, July 17.—(®—Harry L. Hopkins, President Roosevelt’s overseer of the lease-lend program, attended a meeting of the Bitish war cabinet today—an extraordi nary appearance which informed quarters called a history-malr'ng event. The parliamentary correspondent of the British Press association referred to it as “an interesting precedent,” adding: “The prime minister evidently decided that in wartime red tape formalities must be flung away and that if it was a useful thing for the ministers to have a first hand talk with Mr. Hopkins—who is known to enjoy the absolute confidence of President Roosevelt —then there was no reason why he should not be present at the cabinet meeting. “Everything that happens there is of course secret, but it would seem an obvious guess that Mr. Hopkins reported to the cabinet on the lease-lend situation which it is his special province to study. "Although Mr. HopkinS is Mr. Roosevelt’s representative here he holds no ministerial rank, which in normal times might entitle him to attend such a meeting.” Non-members admitted to «feb inet meetings since the outbreak of the war have been Edouard Daladier, who appeared while he was premier of France before the surrender, and R. G. Menzies, the Australian prime minister. Hopkins, who had arrived here during the day in one of a fleet of U. S. built bombing planes, con ferred almost immediately with Prime Minister Churchill. He was met by W. Averell Harri man, the American co-ordinator of aid for Britain, who recently re turned from the middle-east. A conference with Lord Beaver brook, the British minister of sup ply, on problems of high speed production of tanks was understood to be on Hopkins’ agenda. Likewise, it was believed, he would receive reports on the per formance of American-made planes and tanks in the middle-east. An office adjoining Harriman’s was prepared for him and thus there-was conjecture chat he might remain in London for some time. It was Hopkins’ second visit to Britain during the war. He was last here in February.1 United States Bans All Exports To Axis Firms In South America ■' ■ ■ ■— - — By J. C. S'/ARK WASHINGTON, July 17.—MV-In a drastic move to tighten the eco nomic blockade against Germany and Italy, President Roosevelt to day banned the export of vital materials to more than 1,800 firms and individuals in Latin America named on a "blacklist.” Coincident with issuance of what was called “the proclaimed list of certain blocked nationals" deemed to be acting for the benefit of Ger many or Italy, the President set # up virtually an economic warfare committee to supervise the plug ging of trade leaks through Latin American countries to the Axis. On this committee are the sec retaries of State, Commerce and Treasury, the Attorney General, the administrator of Export Con trol, and the coordinator of Com mercial and Cultural Relations be tween the American republics. Welles' Announcement At the same time Sumner Welles, acting secretary of state, an nounced to the Inter-American Fi nancial and Economic Advisory committee the establishment of new government procedure de signed to facilitate legitimate ex ports to other American countries with special consideration of their general cooperation with the Unit ed States. Under this procedure, the other countries will submit to the State department the lists of materials and products needed by the gov ernments or for government-spon sored purposes and priority will be given to these exports. In some cases the United States will act as procurement agent, obtaining the materials for the account of the Latin American countries. The “blacklisting” was the most sweeping economic blow at Ger many and Italy since President Roosevelt “froze” their assets and those of other European countries in the United States on June 14. The President by proclamation prohibited the export of any ma (Continued on Page Five; Col. 3) WEATHER North Carolina—Partly clouCy, scat wrcd showers extreme east and south ^ntral portions Friday; Saturday Mostly cloudy, afternoon thundershow ers. (Meteorological Cata for the 24 hours ending 7:30 p. m. yesterday): (By V. S. Weather Bureau) Temperature: 1:30 a. m. 80; 7:30 a. m. 78; 1:30 p. m. 7:30 P- m- 76; maximum 85; min imum 74; mean 80; normal 79 Humidity: 1:3° a. m. 87; 7:30 a. m. 92; 1:30 p. m. 751 7:30 p. m. 94. Precipitation: total for the 24 hours ending 7:30 ™ > 0.43 inches: total since the first 01 the month, 6.033 inches. IT, Tides For Today: r (r r°m Tide Tables published by U. S. °nst and Geodetic Survey): ti'i, . High IiOW Wilmington- 4:53a. 12:01a. if. , 5:30p. 12:13p. ^asonboro Inlet_ 2:41a. 8:56a. „ 3:17p. 9:«7p. rfoa 5:13a.; sunset 7:23p.; moon he 12 -53a.; moonset 2:32p. vinape Fear river stage at Fayette ,,e at 8 a. m., July 17, 17.06 feet. (Continued on Page Five; CoL 3) AXIS DETAINS U. S. NATIONALS American Consular Offi cials, Families, Held Pend ing Ship’s Arrival By the Associated Press ROME, July 17.—In concert with Germany the Italian government held a group of 76 ousted Ameri can consular officials and em ployes at San Remo tonight as virtual hostages for the safe ar rival at Lisbon of Axis consular staffs ejected from the United States. The foreign ministry confirmed that its decision was made at the behest of Germany to observe the same procedure as Berlin regard ing exchange of the consuls. It will therefore not be possible, the ministry informed the U. S. embassy, to permit the American group to leave Italy until word has been received that the Italian consular party has arrived in Lis bon and disembarked from the U. S. naval transport West Point. (American consular officials and employes who have been stationed in Germany are assembled at Frankfurt-am-Main. An authorized spokesman in Berlin said that “the (Continued on Page Five; Col. 2) Teaching Staff Is Enlarged State Commission Grants 24 To New Hanover; Salaries Boosted New Hanover county’s school teachers will be increased by 24 with the start of the school term in September. Authorization to enlarge the school system’s sorely understaff ed faculty by that number, and fi nancial provision for their salaries, was approved in Raleigh last night by the North Carolina State School commission. The recommendation for the in crease was carried to the Capitol city by H. M. Roland, county su perintendent of schools, who told the state cemmissioners that any lesser increase in the teaching per sonnel of New Hanover would gravely jeopardize the standards of the school system, and might force a curtailment of the school program. The request was granted by una nimous action of the commission. RALEIGH, July 17.—UP)—Com pleting a decade of control over North Carolina’s public schools, the State School commission today ap proved a record-breaking budget of $23,136,848. Nathan H. Yelton, commission secretary, said salary increases provided for in the new budget will raise teacher pay back to pre depression levels. A new top bracket of $150 a (Continued on Page Two; Col. 4) DAYUGHT SAVING APPROVED HERE Most Civic Leaders Favor President’s Plan To Conserve Power Most city and county civic lead ers are heartily in favor of President Roosevelt's proposal for a nation wide daylight saving plan for the conservation of electric power, ac cording to a survey of opinion con ducted by newspapermen yesterday. Mayor Hargrove Bellamy ex pressed the opinion that "in a na tional emergency such as we now have, every effort should be made to conserve our resources. If there is danger of a serious power short age, and the president’s proposal will remedy that situation, I firmly com mend his proposal and hope it will be adopted.” N. E. Drexler, president of the Tide Water Power company, said (Continued on Page Ten; Col. 3) FRANCO “To Intervene . .. Madness . . U.S. INTERVENTION CALLED ‘MADNESS’ Gen. Franco Warns United States Only Ruin Would Result MADRID, July 17.—(^—General issimo Francisco Franco warned the United States in a militant speech tonight that any attempt to inter vene in the European war would be madness. The Spanish chief of state de clared the Allies already had lost the war. He said the Greek cam paign had proved that a fleet could be put out of action by airplanes, and so American entry would only lead to catastrophe. In his speech to the national council of the Falange (Spanish Fascist) parry, El Caudillo said con tinuation o f the conflict might spread it to one between two con tinents, America and Europe. “This could only lead to ruin of the American nations, which need liberty of the seas for their eco nomic life,” he said. However, he discounted the pos sibility of a two-continent war, say ing the conflict was being decided now on the Soviet front. Franco accused the United States, “when they offered us economic help,” of “always trying to force us to obey the will of other na tions.” By contrast, he praised Argentina warmly, saying: "Two years without ships, with out foreign exchange, without credit and still Spain has imported 2,000, 000 tons of grain, thanks to sister nations like Argentina which have given us every aid.” He pledged anew the friendship of Spain with the Axis in the fight against Russia. “The countries of America, called by the Reds ‘semi-colonial peoples,’ can not be separated from this crusade against communism,” Franco declared. Lindbergh Asks Apology From Interior Secretary NEW YORK, July 17.—(ffl—Dif ferences between Charles A. Lind bergh and the Roosevelt admini stration flared again today when the flier, in a letter to President Roosevelt, declared he had no con nection with any foreign goven ment and that he had a right to an apology from Secretary of the In terior Ickes, a constant Lindbergh critic. “Mr. President, I will willingly open my files to your investigat ion,” Lindbergh said. “I will willingly appear in person before any committee you appoint, and there is no question regarding my activities now, or at any time in the past, that I will not be glad to answer.” Refers to Decoration In regard to a decoration he re ceived in the American embassy in Berlin, in the presence of the American ambassador “while I was carrying out the request of your ambassador to that govern ment.” “I was there at his (the am bassador’s ) request in order to assist in creating better relations between the American embassy and the German government, which your ambassador desired at that time.” Lindbergh wrote. White House Secretary Stephen Early said that Lindbergh’s ietter had not come to his attention and that he wouldn’t comment if it had. When newsmen said they had the text of the letter, Early said: “Well, he wrote it to you and addressed it to the President.” Ickes’ View Ickes told a press conference he believed that if Lindbergh “were an upstanding American” he would (Continued on Page Four; Col. 1) Riot, Fights Mark CIO Picket Of Bendix Aviation Subsidiary By The Associated Press Attempts by some employes of Air Associates, Inc., to go through CIO picket lines about its Bendix, N. J., plant led yesterday to fight ing in which at least six persons were injured. The CIO United Automobile Workers union began picketing the plant last Saturday, protesting what it called the dismissal of nine sheet metal workers and what the company said were releases necessitated by a shortage of alum inum. An automobile caravan of work ers headed into the plant yester day and was met with a barrage of rocks from a crowd of men and woment gathered about the gates. Police, using tear gas, dispersed the crowd. The plant employing 700 and engaged on national de fense orders suspended operations, but later resumed them with a partial force. Another labor development was a walkout of CIO steel workers at the Great Lakes Engineering Works, River Rouge, Mich., which is building ships for iron ore trans port. The Michigan state labor media tion board had directed a week ago that a 30-day cooling off per iod be observed before any strike action. Charles Cowl, field repre sentative of the CIO steel workers organizing committee, said “we are not defying the government but we are defying a firm that is defying the government by refus ing to deal with the union of the employes’ choosing.” In Chicago, conciliators attempt ing to settle a week-old CIO strike at the American Car and Foundry company announced their t efforts had proved unsuccessful and that the dispute was being referred to Washington, presumably to be turn ed over to the defense mediation board. BERLIN SAYS DECISIVE BA TTLE BEING FOUGHT; REDS DENY ADVANCES “NO CHANGE,” SOVIETS Reds Tell Of Fierce Fight ing, Counter - Attacks In Central Sector (By The Associated Press) MOSCOW, Friday, July 18.—Red troops successfully withstood fierce Nazi mechanized lunges in the Smolensk sector, 230 miles west of Moscow, and in the Pskov-Porkhov area, 150 miles south of Leningrad, the Soviet information bureau an nounced today in a report telling of heavy battling along the far-flung front. “As a result of the fighting there was no important change in the dis position of our troops on the front,” the communique said. Soviet soldiers also are engaged in fierce fighting at Polotsk, near the Estonian border, and 140 miles to the rear of the dangerous Nazi salient which has reached Smolensk, the Russians said. Kiev Not Mentioned The situation at Novograd-Volyn ski, 130 miles west of the Ukraine capital, Viev (which the Germans say they have reached) remained the same, as did the front extending southward to the Bessarabian sector, it was declared. “Our air force operated against enemy motor and mechanized troops and destroyed aircraft on airdromes,” the communique related. "During July 15 and 16, 98 German aircraft were destroyed. We lost 23 planes." The latest communique told of great tank battles on the surging front, but summed up the combat in much the same vein as yesterday’s bulletin. That said: “In other directions and sectors of the front no major operations took place and no significant changes in the positions of our troops occurred.” This was an oblique way of saying there was no extension of the Ger man thrust acknowledged on Wed nesday night to have reached the vicinity of Smolensk, only 230 miles short of Moscow. (The German news agency DNB claimed that Smolensk, which is on the direct route to Moscow, was in Nazi hands). Farther to the south along the central front the Soviet war bulletin indicated, there had been no change in positions which at last report had been strongly favorable to the Red defenders. This was in the area of a 20-mile long salient formed by a long Rus sian counter-offensive across the Dnepr, where the Germans were de clared to have been thrown back upon Bobruisk, a town long since passed in the main fighting, to a depth of 30 miles or more. Political Commissars During the day, a reorganization of Soviet agencies of political propa ganda and the reintroduction of political commissars into the Red armies was announced. The com missars were empowered to share military responsibility with the reg ular commanders. This was the decree of the presi dent of the supreme Soviet: “1. To reorganize the adminis (Continued on Page Ten; Col. 4) -J New Jap Cabinet Forming ! ——— Vigorous Pressing Of War Like Aims Seen In Group Being Organized TOKYO, July 17. — UP)— Prince Fumimaro Konoye tonight was forming a new government de signed to deal more capably than the last with the difficult and dan gerous choices confronting Japan in the world crisis, especially those arising from the German-Russian war. Emperor . Hirohito commanded Konoye, head of the cabinet which resigned last night because of its troubles with “the ever-changing world situation,” to retain the premiership and progress made in drafting a new ministerial list led to confidence the prince could pre sent his cabinet to the sovereign tomorrow. Indications tonight were that sev eral key members of the retiring cabinet would retain office in the new one, for among Konoye’s first consultants were General Eiki To jo, Admiral Koshiro Oikawa and Baron Kiichiro Hiranuma, retiring ministers of war, navy and, home affairs, respectively. May Ignore Matsuoka It was noted, however, that Ko noye had no conference with For eign Minister Yosuke Matsuoka, who is suffering from a cold and was absent from the emergency cabinet session which preceded the resignation. (Matsuoka has received chief blame for the empire’s in volvement in two accords which Adolf Hitler’s invasion of Russia made irreconcilable to some Jap anese minds—the alliance with Germany and Italy and the neu trality pact with Soviet Russia.) The choice of Matusoka’s suc cessor was awaited as a clue to any new direction in foreign policy, but observers believed that Hira numa’s vigorous, totalitarian tinged domestic policies and the powerful influence of the army and navy would be continued. All through this crisis, experi enced observers said, Konoye has had the complete backing of the armed forces. Financial circles also received his designation for a new term with satisfaction, the stock market today being free of signs of uneasiness. If Konoye succeeds in forming a new cabinet it will be his third. The first saw the nation through the first two years of the war with China; the second, in office almost a year, allied Japan with the Axis and embarked her on an ambitious program of expansion in south eastern Asia. 1 “HISTORIC CLASH” Hitler’s Communique Says 9,000,000 Men In Death Struggle On Front By The Associated Press BERLIN, July 17.—The import ant railway center of Smolensk on the road to Moscow was claimed by the Germans tonight and the high command declared Russia was throwing her last reserves in to the most extensive battle of all time, with 9,000,000 soldiers, fight ing bitterly all along the eastern front. “Great successes are in the mak ing,” the army said. The official news agency DNB reported the fall of Smolensk, which is 230 miles west of Mos cow, and also the capture of Po lotsk, another rail center on the Dvina river northwest of Vitebsk and behind the advance Nazi Pan zer units in this area. One thousand Russians were taken prisoner, the report said. The high command .although re verting to longer descriptive phras es of the big' battle, announced only the capture of Chisinau, the capi tal of Russian Bessarabia, on the southern end of the front. This also was behind the advance lines, the high command having report ed late Saturday that German forc es had crossed the Dnestr river out of Bessarabia and gone into the Ukraine “on a broad front.” Edited By Hitler Today’s communique, dated at the Fuehrer's headquarters and, like those of other days, presum ably edited by Adolf Hitler him self, opened in this way: “Soviet leadership, throwing last reserves into battle, tried to stem the onslaught of German armed forces and their allies. On the en tire east front a tremendous strug gle for a decision is being waged. “Roughly 9,000,000 soldiers are facing each other here in a strug gle the extent of which surpasses all historic conceptions. Great suc cesses are in the making.” Then came one sentence on the fall of Chisinau, and the remainder of the statement was devoted to the sea and air battle with Britain. From Finland to the Black sea the German war machine was de clared to be striking tremendous blows, with the most spectacular action for the moment unfolding at the gates of Kiev, industrial capital of the rich Ukraine, but with power drives in the direction of Moscow and Leningrad continu ing. Kiev In Danger Of the three largest Russian cities being menaced by the Ger man offensive, Kiev on the basis of authorized disclosures seemed to be in the greatest danger. It was reported that the last of the underground bunker fortifica tions in the Kiev defense system had been taken by storm in opera tions carried on by the Germans under cover of artificial fog. It was not claimed that all Kiev de (Continued on Page Two; Col. 3) -—4 196 First Number Drawn For Draft Calling Young Men To Army Service WILLIAM H. WOOD COUNTY’S SOLE 196 Alexander Boney, Draft Board No. 2, With 98 Goes To Top Of List Williain Howard Wood in the city and Alexander Boney had their names plopped to the top of the list of New Hanover registrants in last night’s fishbowl activities in Wash ington. Wood’s serial number, 196, was the first number drawn, and he re ceived sequence number one for city draft board No. 1. The county had no registrant with a number as high as that ,so Boney, number 98, gained top position with the sec ond number drawn in Washington. It is expected that Wilmington’s ratio of new registrants to old will be about 1 to 10. Therefore, New Hanover registrants may get a rough idea of where they stand in the draft by multiplying their num ber by 10 and subtracting 10. That is, number one will be first on the new draft list, number two will be about tenth, number three 20th, and so on. Following are the names which drew sequence numbers 2 through (Continued on Page Two; Col. 1) , (Draft Chart On Pagq Four) WASHINGTON, July 17.—(JF)—A slender, grinning draftee stepped up to a gleaming gold fish bowl to night and extracted from it a pink capsule containing a slip numbered 196—thereby setting in motion the second conscription lottery of the present crisis. Frank Knox, the secretary of the navy, had been scheduled to draw the first number but when his name was called he announced he would prefer to “step aside” in favor of one of a group of selectees to whom a much humbler part in the drawing had been assigned ori ginally. Brig. Gen. Lewis B. Hershey, in charge of the proceedings, called for the senior non-commissioned of ficer among them. Staff Sergeant Robert W. Shackleton of Fort Dix, N. J., strode to the platform in the departmental auditorium and gave Hershey a sweeping and snappy salute. He was blindfolded and then he thrust hi§ hand into the bowl, grasped one of the pellets and hand ed it to a young lady clerk who sat at a desk nearby. She unscrewed the capsule’s threaded metal cap, extracted the slip and passed it on to Hershey, who announced its number. The supplementary drawing was made necessary by the fact that 750,000 men were registered on July 1 who had not reached the age of 21 at the time of the original draft registration and lottery last Octo ber. The order in which the num bers were drawn tonight determined the order in which these new, 21 year-