"served By Leased Wir. 01 The I W * . * £%■ . I Toial Net Paid ' ASSOCIATED PRESS ♦ I rVTrti^ rti*i4ti4 rt eATtiii STAR-REWS circulation j&calasM 1 UJUluyUin UHlUlQ vicir yOL, u—NO- 285 __WILMINGTON, N. C., THURSDAY, JULY 31, 1941 FINAL EDITION ESTABLISHED 1867 Nazis, nnns Claim Gains On Leningrad u___ object of pincer — - • Fall of Former Capital Ex acted Momentarily, Says German Command By The Associated Press BERLIN, July 30.—The German .r.mies on the Leningrad front are fighting their way to a “fast ap proaching important decision” and this second largest Russian city is now in a precarious situation, Ger man sources said tonight. (The Associated Press was in formed in New York the German Finnish drive on Leningrad had made such progress that the Ger man high command expects the {all of the city at any time.) German forces both north and south of Leningrad are exerting a pincer squeeze which the Germans believe seals the fate of this great Soviet Western port, jvhich, as St. Petersburg, once was the capital of the Czars. Two Russian divisions have been destroyed west of Lake Peipus in Estonia, on Leningrad’s southwest ern front. German dispatches said, and the Germans there were de clared to have poured in between Leningrad and large Russian units in Estonia which formed part of the outer defenses of the Lenin, grad area. Close Quarter Fighting Fighting was at close quarters with hand grenades and automatic pistols. The Russians’ retreat ap parently was cut off, and the Ger mans asserted that these units were doomed to certain annihila tion. The Germans also continued to express complete satisfaction with the progress of German-Finnish forces pushing down on Leningrad from the nijrth across the Karelian isthmus, completing the Leningrad squeeze. The German radio stated that these German-Finnish units carried out attacks successfully despite the fact that retreating Rus sian forces poured oil in their for ests and set them afire. Important Decisions The Germans also predicted im portant decisions soon on the Smo lensk front, along the path of the main westward drive on Moscow. They called attention again to day, however, to the extensive na ture of the engagements on the eastern front and asserted that because of the distances involved even a blitz offensive cannot be (Continued on Page Three; Col. 1) CITY SELECTED AS RAID CENTER One of Three Air Attack Warning Stations in State to Locate Here <)ne of three “filter” centers to serve as headquarters for the air raij warning system now being set up in the state will be established in Wilmington. The other two will he located in Raleigh and Charlotte. The warning system will be used in connection with the First Army maneuvers in the state this fall with •he local post serving a large part i c£ the eastern section of the state. I Calls From Spotters • center, which will receive calls 'r°m trained civilian aircraft “spot ,crs. ’ will be under the Third Inter wptor command of the Army air corps, . . Major R. tv. Douglass of Tampa, a-’ executive officer of the com 'r'ar‘r|. conferred wi h Governor J. . ' BrouShton in Raleigh yesterday pSarding the centers. Major Doug Page Three; Col. 4) WEATHER v. j, „ FORECAST finnr. 11 Carolina, South Carolina : Con seatt "arm and partly cloudy with Thn-f1 afternoon thundershowers terS Friday partly cloudy, scat ‘ afternoon thundershowers. B. S. Weather Bureau) Biri. 2r#1°6ical data for the 24 hours enr-me 7 ;30 p. m. yesterday). iTempreature m-T *• W. 79; 7:30 a. in. 81; 1:30 p. m. ttum -i p- m- 83; maximum 94; mini 141 mean 84; normal 79. Pan Humidity 63- 7 & m- 91; F:30 a. m. 94; 1:30 p. m. ’ P. m. 80. Tnt„i , Precipitation l,1!,40' the 24 hours ending 7:30 of lncl>es. Total since the first e month 7.79 inches. ;p,_ Tides For Today B. p„°* Fide Tables published by U. ast and Geodetic Survey). _ f&ha W;30a '4asonboro Met_ Sunrise 5-99. V**1' 7:48p tits i9 -„5-22a! sunset 7:14 p; moon - u o8p; moonset_a. »RJ,VerJit?*« at Fayetteville at 8 " Wednesday, 10.15 feet. (Continued on Page Three; Col. 5) Kremlin Receives Hopkins F, R.’s Aide Hears Stalin Jell of Smashing Rus sian Victories MOSCOW, July 30.—Wl—Harry L. Hopkins heard from Joseph Stalin in a Kremlin conference tonight what kind of American equipment would help the Red army, whose boynet counter-charges were re ported to have put the Germans on the defensive in some sectors. The lease - lend administrator talked with Stalin as Prendent Roosevelt’s personal representative a short time after arriving in Mos cow by plane. There was no im mediate announcement on the out come of the conference on pur chasing and delivery of American war materials. Vyacheslav Molo tov, Soviet foreign commissar and U. S. Ambassador Laurance A. Steinhardt were present. (Acting Secretary of State Sum ner Welles said in Washington that lease-lend aid was not contem plated in Russian war orders now being placed in Washington.) Jubilant Claims Hopkins’ visit came as Moscow read the most heartening mi’hary news in days. The Communist newspaper Pravda said Soviet troops beat repeatedly at the in vaders in a series of far-spread attacks, turning some Nazi thrusts into slow and bloody retirement after checking drivers on Moscow, Kiev and Leningrad. Pravda listed as typical an at tack by a Red army unit which waded chin-deep through a swamp and charged a German battalion with bayonets. The Germans were said to have been rputed. Although it did not comment di rectly on Hopkins’ arrival, a Prav da article by Alexei Tolstoy, well known Soviet author, said Germa ny would be “helpless to halt the unwinding springs of American war industry.’’ He added that British determina tion to continue the western fight, growing Red miitary strength and American production would thwart Hitler’s Russian plans. The Ger man Fuehrer, he said, had counted on an English desire for peace and unwillingness of the United states to become involved in EuroDe tc aid the blitzkrieg drive. There was no claim that a Rus sian general offensive was under way, but Pravda said Russia’s aim now was to “convert t he checking of the German offensive into defeat of Hitler’s armies.’ "Now the enemy often has to turn from the offensive to the de fensive at certain points,” Pravda said. The Soviet high command in its (Continued on Page Twelve; Co). 5) ADMITTED — After considerable difficulty during which time she was detained on Ellis island by U. S. Immigration officials, Pola Negri, above, famous Palish movie star of silent days, was admitted to the United States. She had forgotten, she said, to renew her five-year re turn permit. She intends to become a U. S. citizen. HOUSE DEBATES HUGE TAX BILL Republicans Attack 'Gag Rule’ Clause Adopted to Expedite Passage WASHINGTON, July 30.—®— The House began three days of debate on the $3,529,200,000 tax bill today and approved a curb on the number of amendments that may be offered to the unprecedented measure. Republicans denounced the pro cedure as “gag rule” which they contended had no place in “the last bulwark or democracy,” but it finally was adopted by a roll call vote announced as 203 to 168. Before this action was taken, however, a modification of the originally-planned procedure was agreed to by the leadership to permit a separate vote on a provision which would require married couples to file joint in come tax returns and thus prevent them from escaping higher sur taxes by dividing their incomes. As a result, the House will get a chance to vote for or against that provision, designed to fineld about $323,000,000 but the only other changes which it will be possible to consider under the rule will be those sanctioned by the Ways and Means committee. Chairman Doughton (D.-N.C.) of the comittee and other leaders told the house that it would be dangerous to throw the bill wide open for amendments and some republicans conceded that such a course would be unwise. In opposing the rule. Rep. Fish R.-N.Y.) said that the new tax measure “doubles and triples taxes on persons who make from $3,000 to $30,000 a year, such per sons constitute only 5 per cent of the population but “pay all the taxes.” Senate Investigators Hit T. A. Loving Profit WASHINGTON, July 30.—(^)— Chairman Truman (D.-Mo.) of the Senate Defense Investigating com mittee contended today that a •‘tremendous profit’ made by an army camp contractor through renting equipment to the govern ment was not justified because the contractor received in addition a fixed fee. ruman made the assertion after hearing testimony by C. B. Mc Nairy, vice-president of T. A. Lov ing and Company, Goldsboro, N. C., contractors who built an army cantonment at Fort Bragg, N. C. on a cost plus fixed fee basis. McNairy told the committee that after receiving the contract, offi cers of the Loving company formed an equipment company to rent equipment for the project. He said that he did not have exact figures on profits of the equipment company, but he ex pressed a willingness to accept an estimate by Hugh A. Fulton, com mittee counsel, that the company had assets of more than $500,00 ,in excess of liabilities. McNairy, who said part of the equipment company’s profit re sulted from renting equipment on other jobs, agreed to supply exact figures later. “Appreciable” Profits He acknowledged that the com pany had realized “appreciable' profits on the equipment rentals, but contended they were justified because of the investment risk en tailed. He said the rental rates were fixed on an estimate of 3 months use, but that when the project ran longer, the government exercised its option to purchase the equip ment at retail list prices, whiiMi he conceded were higher than those the company had paid. The company’s profits, he said, resulted chiefly because of the re capture—that is, the1 government buying the equipment - at highe prices. “It could have developed the op (Continued on Page Three; Col. 1) COUNTY’S BUDGET COMPLETION SEEN Board Chairman Believes Annual Task Will Be Fin ished Within 10 Days Preparation of the budget for the new year will be completed within 10 days, Addison Hewlett, Sr., chairman of the New Hanovr county board of commissioners, estimated yesterday. * There are so many phases in this county’s financial problms with which to deal it has not been possible for commissioners to com plete the budget so far, the official stcttcd. He indicated commissioners at their meeting Monday afternoon will probably devote a portion of (Continued on Page Twelve; €oi. 6) Konoye In New Warning ■ M.r ■ . TO PRESS POLICIES Execution of ‘Fateful Pro gram’ to Be ‘Swift, Deter mined’, Says Premier By the Associated Press TOKYO, July 30. — Premier Prince Fumimaro Konoye declared Japan’s resolve today “to proceed on a historic renovation of its pol icies from an entirely new stand point,” and said the execution of this fateful program must be swift and determined. These policies — of which he spoke while Japanese convoys con tinued to land troops for occupa tion of bases in southern French Indo-China — were not described, but he connected them with a warning that Japan “must always be prepared to meet the worst.” He said too, again without elabo ration, thaj the German-Russian war “is bringing serious effects on Japan.” . . (This reference to the Nazi in vasion was heard with the great est interest in view of the ex pressed conviction of informed Chi nese quarters in Peiping that Ja pan is making ready for an as sault on Soviet Siberia if and when the Red armies of the west are smashed by the Germans.) The premier spoke before the general mobilization inquiry com mission. Denounce United States The Japanese press went on de nouncing the United States and Britain, calling them the masters of the Dutch East Indies and blam ing what they called American meddling for the suspension by the islands of the oil shipment agree ment with Japan. As to the possibility of a full oil embargo by the United States, which already has frozen Japa nese assets in that country, news paper discussion was to the effect that Japan had in reserve enough oil for several years. . ENGINEERS 1 ' HERE TOW OW Wilmington Club to Host State Society at Ocean Terrace Hotel Assisted by the Wilmington En gineers club, the North Carolina Society of Engineers and the North Carolina section of the American Society of Civil Enginners will in augurate an annual two-day sum mer convention tomorrow morning at 10 o’clock at the Ocean Terrace hotel at Wriglitsvile beach. First technical session of the meeting will begin at 2:30 with Mayor D. J. Herrin of Wrightsville Beach making an address 01 wel come. Two addresses wii1 be heard at the first technical session. Henry H. Armsby, fie.a coordinator. U S. office of education, Washington, D. C„ will discuss “Engineering Science and Management of De fense Training” and Harry Tuck er, member of the state utilities board and the Raleigh planning commission, will discuss “Trans portation and City Planning.” Hewett Toastmaster An informal banquet will be held the first night of the meeting at the Ocean Terrace with engineers, their wives and guests to attend. Thomas J. Hewlett, president of the Wilmington club, will be toast master and will introduce Gusta vus Dyer of Vanderbilt university, Nashville, who will make the prin cipal address of the evening on “The Value of Engineers in the Defense Program.” (Continued on Page Three; Col. 7) CONGRESS TERMED FA VORABLE TO PRICE CONTROL PROPOSAL; U. S. BOAT BOMBING PROTESTED GUNBOAT DAMAGED ' President and Welles Act Swiftly After Navy Vessel Damaged on Yangtse \ WASHINGTON, July 30.—Iff)— Acting swiftly and in a manner to show that its patience was sore ly tried, the United States called Japan to account today for a new attack on an American gunboat in China and indicated the incident would not pass with a perfunctory diplomatic exchange. , The 370-ton gunboat Tutiola of the Yangtse river patrol was dam aged by bombs which narrowly missed the United States embassy during a Japanese raid on the Chinese capital of Chungking. No casualties resulted, but the Navy said the stem superstructure of the small craft was damaged slightly. Soon after the news reached Washington, President Roosevelt discussed the bombing with Sum ner Welles, acting secretary of State. Apparently in answer to a summons from Welles, the Japa nese ambassador, Admiral Kichi saburo Nomura, called at the State department. Representations Made Emerging from his brief confer ence with the ambassador, Welles announced at his press conference that representations had been made to the Japanese government. He declined to say whether he had administered personally a se vere rebuke to the ambassador, as he did last week in denouncing Japan’s move to take over mili ary and naval bases in French Jndo-China. With tension in the Pacific al ready high as a result of the Indo China move and retaliatory eco nomic measures against Japan by the United States, the British em pire and the Netherlands, a stern attitude was indicated here in con nection with the Tutuila incident. Welles refused to say whether any indemnification was demand ed as in the case of the sinking of the United States gunboat Pa nay in China on December 12, 1937 with a loss of two lives. For that loss, the United States demanded and received $2,214, 007.36 for property damage and personal casualties, together with a profuse Japanese apology. Welles indicated the United States would reject any Japanese claim that the Tutuila bombing was a mistake. The gunboat and the American embassy, he pointed out, were on the opposite side of the Yangtze river from Chungking proper. They were in a so-called “safety zone”. He said a flight of 26 bombers raided the Chinese capital, drop ping bombs near the Tutuila and American property—the embassy. Shanghai reports said the official residence of the embassy also suf fered damage and that the damage to the Tutuila resulted from a mis sile which struck ten feet away. The Tutuila, which narrowly es caped bombs during a raid on June 15 which led to a strong American protest to Japan, is un der command of Lieut. Command er William Alger Bowers, 39, a native of Sevierville, Tenn. It car ries a ■ normal crew of 58 officers and men. TAX EVADER TO WED ATLANTIC CITY, N. J., July 30. —!£!—Enoch L. (Lucky) Johnson, Atlantic county Republican leader who was recenty convicted of in come tax evasion, will be married tomorrow to Forence Osbeck, form er Broadway showgirl. Council, Commission Divide On Share Of Charity Finances City councilman and county com missioners debated long yesterday over a $15,000 appropriation for the Associated Chari tie-; at a joint budgetary meeting with the mailer finally being settled with a motion that the governmental bodies pay proportions based on 1940 tax as sessment valuations. J. R. Benson, city clerk, and Thomas W. Woody, clerk to the county board of commissioners, were instructed to confer with J, A. Orrell, county auditor, and fix the proportional percentages. Debate was on whether the pro portion should be 35 per cent and 65 per cent, or 40 and 60 per cent —the smaller for the city and the larger for the county. Last year Associated Charities received $15,000 with the city pay ing $6,000 and the county $9,000. The joint bodies approved a mo tion that the governments would equally divide an appropriation of $12,000 for the ceding year for the Community hpspital, plus $3,000, the latter to be earmarked specifi cally for the construction of a laundry. McCaig‘Presents Bequest W. D. McCaig, chairman of the board of trustees for the hospital, had appeared before the board and requested that the appropriation be increased from $10,000 to $15. 000 for the current fiscal year. The two governmental agencies also Increased personnel of the board of trustees of the hospital from five to seven members, nam ing H. R. Gardner, a county com missioner, and Councilman J. Neveland Brand, Jr., as member to represent the city and county. W. Albert Brown was named tn fill a vacancy. The city council also received a petition signed by Aaron Gold berg, attorney, and other residents of the 300-block of Grace street (Continued on Page Three; Col. 1) LIGHTS OUT FOR DEFENSE—In an attempt to force the Consolidated Edison Co. of New York to use AFL electric ians instead of regular employees in a power plant construc tion job, 8000 electricians started a general strike in New York city, halting work on many defense projects. First general electric strike since 1907, the work stoppage, if long continued, would eventually affect a major part of all city construction work. Above are pictured some of the pickets at the Consolidated company's Waterside plant.___ Predict Early Passage Of Retention Measure WASHINGTON, July 30.—UB Army intelligence reports that Ger many has expanded her army from 810,000 to nearly 4,000,000 men since the start of the war were cited by zSen. Thomas today to emphasize the need of retaining selectees, guardsmen and reserv ists in service beyond the present one-year limit. Opponents of the service exten sion, led by Senator Taft (R.-Ohio), asserted that the general staff sought to abandon its original con cept of training a large reserve of men in favor of perfecting a compact fighting force in which a selectee might find himself serv ing for the duration of the emer gancy. The khaki of a dozen soldiers dotted the crowded galleries as the Senate opened debate on the controversial legislation. Mean while the House Military commit tee, by a 15-7 vote, approved a similar bill and leaders made plans to press it in that chamber next week. Thomas referred to the army intelligence data when Senator Tobey (R.-N.H..) demanded to know what the “brass tack facts were” that President Roosevelt and General George C. Marshall presented to the military commit tee in urging the extension. Thomas said that Germany had expanded its armed forces from 54 divisions in September, 1939, to 260 as of last July 16, a German division numbering about 15,000 men. The Italian army, he added, had been “rejuvenated” by the (Continued on Page Twelve; Col. 1) State Ends Fiscal Year With 7 Million Balance RALEIGH, July 30.— MV-A bud get bureau statement showing a $7,280,272 cash balance in the state treasury at the end of last fiscal year brought a statement of grati fication and of warning ,iom Gov ernor Broughton today. The report of the largest cash surplus in the state’s history, he &000 BLAZE HITS DOWNTOWN PLANT Currin Wholesale Packing Co. Damaged as Truck In Shed Ignites Fire, believed to have started from a short-circuited truck caused dam age estimated at $5,000. to the Cur rin Wholesale company building at 6 Brunswick street at 6:30 o’clock last night. The truck, parked in a shelter that separates the wholesale com pany from a vacant strawberry packing plant, started burning. Flames quickly spread to the shelter and interior of the Currin building. In addition to the truck which started the fire, another in the shel ter also was destroyed. Firemen were able to pull a semi-trailer ma chine from the shelter to safety. Spread Through Doors Although the wholesale company building has brick walls, the fire spread through open doors leading (Continued on Page Twelve; Col. 2) said, “shows the state to be in a sound and financially healthy con dition,” and he added. “As the state enters the new fiscal year and a new biennium confronted with many grave eco nomic uncertainties, it is gratify ing to begin such a period with this comfortable cash balance. “This increase, however, should be considered as a protective bal ance for emergency conditions and not as a ‘green light’ for extrava gant or reckless spending. “No one can foretell what the next two years, or even the next year may bring with respect to fiscal problems. We should there fore approach these problems in a spirit of confidence and conserva tism.” The figures, the Governor said, justify the 1941 general assembly in its appropriations, which were the largest in the state’s histoi'y General fund collections amount ed to a new high of $45,520,613 and expenditures totaled $43,015,955. The credit balance at the end of the previous fiscal year amounted to $3,018,088. Major expenditures in 1940-41 were $2,588,100 for executive and administrative purposes, $2,645,752 for educational institutions, $2,095, 078 for charitable and correctional institutions, $2,468,075 for state aid and obligations, $27,745,410 for pub lic schools, and $4,570,814 for debt service. The highway commission had not furnished the budget bureau with figures on which to base an an nual statement and this report will be released later. ■/ I OBJECTIVE APPROVED Debate Seen on Method of Application; Wheeler In dicates Support of Bill By RICHARD L. TURNER WASHINGTON. July 30.—— President Roosevelt asked Con gress today for power to regulate prices in order to cncck inflation, and many members of the national legislature immediately expressed approval of the general objective he outlined. Their comments indicated that debate would center about meth ods, rather than the goal. Price legislation, Mr. Roosevelt said in a special message, was necessary to protect the nation against "the evil consequences of a chaotic struggle for gains which must prove either illusory or un just and which must lead to the disaster of unchecked inflation." It developed, meanwhile, that Chairman Steagall D. Ala.) had been at work since Friday on spe cific legislation—a bill authorizing Mr. Roosevelt to prescribe maxi mum prices and rental charges, to deal with excesses in install ment credit, and to make pur chases or sales of commodities with a view to stabilizing the price. Where1 farm commodities were concerned, it was understood that the new checks would become op erative only when the * rices of these go above parity—that is abov,e a level where farm products have the same purchasing power, in terms of industrial goods, that they had in 1909-1914. Broad Powers The bill, it was said, would em power the ^President to act thrnimh any agency he might designate. It was on this point that the prin cipal controversy seemed likelv to develop. Some members of Con gress were of the opinion that power so broad should be granted only to a specially created con gressional agency, and not to the executive department. Neverthe less, nearly all seemed agreed that some action should be taken to keep prices within moderate lim its. Senator Wheeler, bitter critic of the administration in the field of Foreign affairs, announced imme diately that he was “entirely in accord with the view that action was necessary. “I thoroughly agree,” he said on the floor of the Senate, “that something has got to be done about prices.” Rep. Wolcott R.-Mich.) the ranking Republican member of the House Banking committee, made known his agreement with the gen eral objective and suggested that Congress should also give study to controlling “one of the most direct (Continued on Page Three; Col. 2) RUSSIANS SCRAP ANTI-POLE TREATY New Agreement With Ex iled Government Provides Polish-Russian Alliance LONDON, July 30,— (7P> —The Soviet government today scrapped the Russian-German treaties of 1333 partitioning Roland and signed with the Polish government in exile a new agreement freeing approximate ly 300,000 Polish prisoners in Russia and pledging mutual Russian-Polish “aid and support of all kinds in the present war against Hitlerite Ger many.” Thus Russia, whose armies march ed into eastern Poland after Ger many had invaded the- western part of the country two years ago, now accepts the Poles as allies in a com mon fight against Hitler. Germany, meanwhile, has occupied all of the former Polish territory which Rus sia took over and r.ow has re nounced. Today’s agreement provides for formation in Russia of a Polish aYrtiy* tinder a Polish commander to be “subordinated in an operational sense” to the Soviet command, upon which the Polish army is to be rep resented. Polish Foreign Minister August Zaleski resigned a« a result of the agreement, and it was learned that some other ministers were expected to do likewise. Zaleski and others were known to have opposed persistently any steps for bringing Russia and Poland Into agreement, ar.d a London source said Zaleski’s views in receht con ferences had been so outspoken as to be unacceptable to the both the Polish and British governments. The-Polish army will be formed from among the war prisoners fi under the agreement.