Wilkes-Barre Sunday Independent

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SUNDAY INDEPENDENT
The Weather
Sunday:   rloudy,  rooler.
iiratt»r»d Bhowtrs. Monday; Mostly cloudy.
35TH YEAR, NO. 35—4^^ PAGfJS
WILKES-BARRE, PA.. SUNDAY, JUNE 29, 1941
PRICE TEN CENTS
REDS CRACKING, SAY NAZIS; NE\\f ATTACK FROM FINLAND
r
Year's Huge Expenditures To Be Dwarfed in 1942
Russian Pastoral Scene
'41 Spending Was Under Expectations; Predict Costs of 22 Billions to Fill This Year's Program
Red Parachutists at Large n Rumanian Oil Fields
Washington, June 28. (UP)— Administration leaders predicted tonight that the record-breaking expenditures of 1941 would be dwarfed by defense spending in the new fiscal year beginning Tuesday.
Expenditures for the 1941 fiscal year were expected to total about J12,B00,0(X).0(X>- more than a half- billion dollars under what the ad¬ ministration  had  expected.
The rapid expansion of defense Industries and the achievement of much heavier production in the coming 12 months, however, is ex- peeled to push expenditures to »22.000,OOO,0O0. Some of the more optimistic officials of the OPM hoped for spending in the new- fiscal year of mor« than $30,000,- 000,000. lUgret Failure to Spread
Normally, government leaders «r* proud when expenditures are less than expected, but the war made failure of defense production to meet budget spending estirtiatea In 1941 a source of official regret.
Final figures for 1941 will not b« available until late next week, hut on the basis of today's Treas¬ ury statement for June 26, the year- end totals wer« expected to ap¬ proximate:
Receipt!!  % 7,BO0.OOO,O«O
F,xpenditurfi  ..   12,600,000,000
Deficit        .¦>,000,000.000
Next year, the record for the 1942 fl.,cal period was expected to look somethmg like this:
Receipts   $11,000,000,000
Rxpenditurea     22.000,000,000
rVficit     11,000.000.000
Estimates for 1942 by the Budget Bureau were lower than those In¬ cluded In the table here becau.se the bureau figures did not take Into consideration the administra¬ tion's new tax bill pending in Con¬ gress.
Creation of the nation's largest peacetime army and the allocation of billions of dollars for aid to bel¬ ligerent democracies helped push the national debt to a record high In  1941    about $49,000,000,000.
riiblir Deibt on Way I p
By this lime next year, the public debt is expected to be nearlj* $.55,- ftOn.OOO.OOO- pushing toward the new limit of $6,^,000.000.000.
National income this year may pass $90,000,000,000 and government experts estimate $100,000,000,000 for the new year, although the present rise in income may be cut by the dislocation of normal industiy in the interests of defense production.
The Budget "bureau estimated de¬ fense spending next year will be sbnut .«l,'i,500,(X)0,000. < ompared with spproximately $6,000,000,000 this year and $1,.TO,»0.") in the last fiscal yesr. nefense spending in 1941 was expected to be about $400,000,000 under budget  estimates.
Kuchareot, -lune 28 (IP)—The Gi^nnnn-Runianian high rnmmatjil revealed tonight that Russian parachute tronpa have been dropped In Kiiiiiania and said that "the majority" of them had been rap¬ tured. The cnmnuinique reported that Russian forces have attempt¬ ed to eounler-attack along the Ressarahian frontier, but asserted that all theno attempts have "been destroyed."
It admitted that the Red air fleet had attacked the regions of •lassy and Kuzau, the Danube nil port of (iaiatz and the Black Sea oil iM)rt of ronsta7a but rnntended that there had been little dam¬ age aa result of these attarks.
"The Soviets landed pararliulisis at some points," the roninuinli)Ui> said. "The majority were raptured." The language of the rnmmunl- qiie Indicated that some Red parachutists still arc at large. (A re¬ port from Ankara two days ago claimed that the Russians had dropiied i.OOO parachutists in the rich i'leti nil reninn.)
The high ronuuand claimed that action against the Russian forces was continuing from Ruknvlna to the Black Sea and that "German- Rumanian units are fulfilling their mission. All enemy attempt* at counter-attacks have been destro.ved."
The ronununlqiie said that RussUn planes had hnnibed and ma¬ chine-gunned civilian populations "with little effect." It claimed that ISO Russian planes had been shot downj if by Rumanian fight¬ er* and anti-airrraft guns,    (ierman losses were put at three planes.
Two Russian destroyers were «ald to have appeared off C'onstanr.a two day* ago and one destroyer wa» Mid to have been tunic and another rrippled.
70 Billion Money Bill Approved by Congress
Devaluation Power Also Is Extended; WPA Bill Held Up
4,000 Tanks In Gigantic
Struggle
Soviets Tell of Greatest Mechanical Battle in History
IN LUCK SECTOR
Russians Claim Plunge of Panzers To Minsk Blocked
Report Russians Thrown Back on 3,000 Mile Front
Say Troops Are Preventing Retreat Of Demoralized Armies of Soriet; \azis Say Even Red Commanders Do Sol Know Extent of Tremendous Advances As Full German Report Is Delayed; Kept under Constant Stuka Attack
ARGENTINA ALOOF IN HEMISPHERE PLAN
Montevideo, Uruguay, June 28. (UP)- Diplomatic circles believed tonight that Argentina would not participate in united hemisphere action on the non-belligerency for¬ mula proposed by Dr. Alberto Guani, Uruguayan foreign mini.sler.
Under the formula proposed by Rr. Cuani, no American nation in¬ volved in war with a power from another continent would be held subject to the restrictive rules of belligerency by the other American countries.
Diplomatic quarters interpreted the Argentine attitude as meaning that country would remain strictly neutral as it did during the World War. despite the fait that other South American nations broke re¬ lations with Germany when the United .States entered the  conflict.
Washington,    June    28.    (UP) Congress   completed   action   today on the largest War Department ap¬ propriation bill in   history and also sent to the White House the meas¬ ure      extending     the      President's power   to   devalue   the   dollar   and continue the $2,000,000,000 stabiliza¬ tion  fund. j     These  actions were taken  in  an j unusual    Saturday    session    made 1 necessary   by  the   approach   of  the end of the fiscal year at midnight Monday.
Approval of the huge money bill -   $10,384,8'J 1.624    —    came    quickly after the Senate by a 40 to 20 vote [ pas.sed   the   monetary   powers   bill. ; The House previously had approv¬ ed   that  measure  and  the  Senate's vote sent it to Mr. Roo»evelt.    The i engrossed bills were expected to be . flown to Hyde Park over the week- ! end   so   that   President   Roosevelt could sign them Quick  Action   Needed
The devaluation power and stabi¬ lization fund authority would have expired Monday. Prompt action on the appropriation bill was neces¬ sary to avoid inconvenience to gov¬ ernment agencies which have to close  their  books Monday  night.
Final action on the arm.»- supply bill came when the House and then the Senate approved a conference report on the measure which pro¬ vides funos for 12.856 new war- I planes wnd for equipment and maintenance of an army of 1,56.'?,- 908 men. Eliminated from the measure were the anti-strike pro¬ visions the House wrote into the bill.
Rep. Joe Starnes, D., Ala., of the conference committee explained to the House that the amendments were struck at the request of Undersecretary of War Robert P. Patterson and OPM Dire?tor Wil¬ liam S. Knud.^en, who ;;».;>( th-^ pro- vision.-i were impossible to eiiforce. The huge appropriation exceeds by approximately $159,000,000 the previou.s record supply bill - that of 1919 for the American V.'orld War armv. WI'A. Relief Bills Held up
.Still remaining to be aced upon Monday were five apji opriation mea-iures, most important of which were the Agriculture Department, the federal security labor supply and the 1942 relief bills. The $1.- 060,.')00,06.'i Agriculture Appropria- (Continued   on   Page   B-5i
HIT FOR SHORTAGE INU.S.mSl:
Too Many Boards, No Real Head, Says House Committee
—Telephone Photo
This striking  photo,  showing German bombs  actually  falling on  a
Russian  highwa.v, was made  from  the bomber itself.   Notice  bomb
craters  along  road.   (Caption  material  by German  official  censor,
radio photo from Berlin.)
War   !Siiitiiitni*T
New Dealer Takes Early Lead In Texas Senatorial Election
Dallas, Tex., June 28. (UP)—Rep. Lyndon Johnson, New Deal fav¬ orite, took an early lead in the •pecml Texas senatorial election on the face of returns from 123 of the state's 254 counties tonight.
Representative Johnson, Gov. W. Lee O'Daniel, Rep. Martin Dies and Attorney General (Jerald Mann had been   picked   to   lead   the   field   of
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Classified Kditorlal .
Movie* 	
I'olitlc*   ...
Radio 	
Sorlal 	
Sport*  	
6tory  	
. B—12 .C—» A—IT C—t A—17 A—IS .B—1 ..B—11
25 candidates seeking the seat left ' vacant by the death of Sen. Morris Sheppard. and the first rclurns put i them at the head of the field. I The vote announced by the Texas ! election board was: ¦ Johnson 6,5,885: O'Daniel, ,53,44": Mann,   52,237.   and   Dies,  25,970.
There   will   be   no   run-off   elec¬ tion and a simple plurality will be sufficient to elect.   The winner will take the seat of Sen. Morris Shcp- I pard,   who  died   in   April,   and   will I serve   until   Jan.   3.   1943.    Andrew ! Jackson   Houston,   the   87-ycar-old son of Gen. Sam Houston, president I of    the    Texas    republic    and    the I state's   first   senator,   who   was  ap- j pointed  to serve In  the Senate un- 1 til   today's   election,   died   Wedne*- iday in Baltimore.
Wa.shington, June 28. (UP) The House military affairs committee charged tonight that absence of a responsible head for the national defense effort has been "largely responsible for deficiencies" now becoming   apparent.
The committee submitted a re¬ port dealing with shortages in critical and strategic materials. The report criticized the admin¬ istration.
"Emphasis over the past few years." the report said, "has been on social reform rather than national security. As a nation we seem to have forgotten that with¬ out national security, social re¬ form might well prove meaning¬ less. Report Not Toned Down
The report was prepared by a subcommittee on strategic and critical materials headed by Rep. Charles I. <Faddis, D., Pa., on the basis of secret hearing at which army and navy officers and govern¬ ment officials appeared. It was made public only after a committee fight in which an effort to'tone it down " reportedly lost by one vote. In it the shortage in alumi¬ num, rubber and shipping facil¬ ities was discussed in detail.
The committee found five main reasons for what is de.scribed as the administration's "failures" in the defen.sc effort a.s related to acquisition of needed materials. One of these was the "failure to entrust to a responsible head the full authority to carry out the will of  Congre.ss."
"The administration," it charged. "has been too prone when difficult problems arose to easily dispose of them by creating another board, only to add to the confusion of the assortment of agencies we now have. Too .Many Boards
\Vc are now plagued with and will continue, evidently, to be hara.sjsed because of the ab.sence of a coherent organization. We are overble.s.sed with board;? and com- millee.^j and with a legion of liaison officers feeling the necessity of con¬ sulting first with this or that agency. All of this has resulted in a deadly consuming of time and in the end we still have a divided authority."
Other reasons for the defense "failures"   included:
1. "Failure on the part of Con¬ gress, the administration and the public to initiate a stock pile pro¬ gram I for strategic and critical materiaLsi at an earlier date."
2. "Failure of a serua »{ urgency on the part of official* tt purchas¬ ing organization."
3. Delay in establishinjc con.ser- v«tion methods and In ueing sub¬ stitutes. "We do not wLlh to single out  the  automotive industry as  an
Reports from Stockholm said Germany had launched several at¬ tacks against Russia from Finland. German troops were said to be marching across the top of Finland toward the Russian arctic port of Murmansk while another drive was gathering way against Leningrad across the Karelian Isthmus.
In Helsinki, 75-year-old Field Marshal Baron Guslav Manner- heim, in an order of the day, called his troops into battle against Rus¬ sia for the second time in two years.
Russia claimed Sunday that Its armies had stopped a German tank thrust in the direction of Minsk, gateway to Moscow, and reported that 4.1)00 Soviet and German tanks were locked in mortal combat near i Luck, where the \\ ehrmacht is pushing its Panzers toward the rich Ukraine.
i     The   Soviet   high   command   said
Russian troops withdrawing to new
positions were f'ghting fierce rear-
i guard   actions   and   infiKting   con-
' siderable  casualties on  the enemy.
I They   claimed   the   sinking   of   two
' enemy   monitors   in   an   attacks   on
Tulcea,    Rumanian    city    on    the
Danube.
Sxxeeping  German   Prediction*
The    Germans    made    sweeping predictions      of     great     successes which are to be announced Sunday i from     Cliancellor     Adolf     Hitler's 1 field   headquarters   on  the   Eastern [ Front.    But these were balanced by a detailed  Russian  report of what . may have been a set-hack of some ' magnitude   to   the   crack   German 39th   Armoured  Corps,   pace-maker of     Nazi      Panzer      divisions      in the   German    break-through    into France. I     Coupled     with     this     apparent I Soviet      success.      the      German- ' Rumanian   headquarters   in   Buch¬ arest   issued  a communique which admitted      that      Red      parachute troops   have   been   dropped   in   this section.    There  was  no hint as  to where the Soviet parachutists were dropped, but Ankara heard rumors two   days   ago   that   2.000   Russian chuti.sts   had   been   dropped   in   the Plesti     oil     regions    and     Russian I communiques   had   reported   htavy air attacks on that area.
The Russian communique re¬ ported that another attempt by the German-Rumanian forces to cross the River Prut had been beaten back by a fierce cavalry charge which annihilated the Nazi troops. Fighting along the Danube was re¬ ported going favorably for the Russians with capture of some 300 more prisoners.
Budapest said that the Hungar¬ ian army went into action today against Russia, but apparently not on a large scale.
Northward in the Baltic States it seemed plain that most of Lithuania \\as in the hands of the Germans but there was no indica¬ tion that the Nazi forces have pene¬ trated Ijitvia and the Riga radio station was still In the hands of the Soviet. However. It was though* that the German attack is moving toward Riga with tome speed.
On the basis of known develop¬ ments in th» war it would appear that the first week's operations have given Germany most of Lithu¬ ania, about two-thirds of Russia's share of former Poland and little more a showing which British ex¬ perts regarded as favorable for the Russians. The danger point, it was admitted, is Minsk.
At no point do the Germans ap¬ pear to have penetrated more than a few miles into Soviet territory, as of the prP-1939 .status, and every¬ where the Russians continued to oppose the Germans with great stubbornness, according to all ac¬ counts. In the air it appeared that the Russians have suffered heavy losses but the Red air fleet was still in the battle and continued to contest the German advance, at¬ tack Panzer units and bomb behind the German lines.
The (^erman.s were concentrating their attac k on Russian comumni- cation.a and believed that they had already started the Red Army on the road to disintegration. The (Jermans doubted that the great mass of Riussian troops could be extricated from this pasitinn.
The Royal Air Force continued its heavy night attacks on the German Ruhr and North Sea naval ship¬ yard facilities and its daylight .sweeps of the French invasion coa.st and Northern France. Berlin claimed the RAF was suffering a heavy toll of plane losses in thi.s offensive action but the British said that the score was sharply against the  Luftwaffe,
By HENRY SHAPIRO
Moscow, June 29 (Sunday) (UP) —The Soviet high command claimed today that Russian forces had fought off a German tank assault toward Minsk and reported that one of the greatest tank battles in history, with 4.000 thun¬ dering monsters engaged, was be¬ ing fought 2.10 miles to the south¬ west in the Luck sector.
The high command's communiqtie admitted Russian troops were with¬ drawing to new positions in the northern sector but claimed that in fierce rear guard fighting they had inflicted heavy losses on the Ger¬ mans and, in the Siaulai area of Lithuania, captured many prisoners a  great  number  of  tnem  drunk.
Ikieh I'kralne at Stake
The stake in the Luck fighting .•ippeared to be the agriculturally ,ind industriall.v rich Ukraine. The (Germans were thrusting their Pan¬ zer divisions in a drive south of the Polish Pripet Marshes toward Luck and Kiev. Ukrainian capital, 260 miles to the east.
In an earlier communiiie the Soviet high command had reported that a "lightning onslaught" of Red tanks, planes and massed ar¬ tillery smashed a German tank corps at the spearhead of the major Nazi  drive toward  Minsk.
Today's communiuc corroborated that report, adding that Russian forces destroyed 300 tanks of the Wehrmacht's famous 39lh Tann Corps which made history in th.' Polish war.
At Lwow, 1400 miles southwest of Luck, the Soviet command said, fiercely fighting Russians inflicted "severe  losses"  on  the  enemy.
.Sink  Nail  .Monitor*
Ru.ssian warplanes fought with the land forces, the communique said, and at Tulcea on the Danube in Rumania bombed and sank two enemy warships described as moni¬ tors.
Elsewhere, the communique «aid. Soviet troops are firmly holding the border.
Yesterday's comunique aaid that a Nazi flanking maneuver in the Lwow area of Southeast Poland wn.s thwarted and that the "Sixth enemy infantry regiment' which attempted to force a crn.s.sing into Bessarabia over the River Prut wa.s annihilated in a saber-swinging charge of a Red cavalry division.
By FTIEDKRK K (. OEl Hi^NKR
Berlin, .lune 28 (IP)—(German source.s claimed tonight that Kiis.«iia".s armies have been thrown back on a front a> long a.s from New York to San Francisco and .•^ma-shed into a di.sintegiating; retreat from which there can be no recovery.
These sources said that the revelations of the Nazi high command, promised for tomorrow in a communique issuing from Adolf Hitler's field head(|uarters on the P^astern Front, will bear out assertions that the Red armies have begun to fall apart before the blinding fury of Stuka and Panzer attacks.
Today's communique of the high command promised that the first detailed account of "our great successes on tht eastern battlefront will be announced during tomorrow by t special communique."
That wa.s the full text of the high command's statemeni loda.v'  regardinjr the eastern campaign,  raging on a fron from the ice-clioked Arctic seas to the balni.v' waters of tht land-locked Hlack Sea. Block Orderly Retreats
The picture of Nazi oppration.s painted b.\ tlie reports o Ihe DNH official news agenc.v and tlie accounts of soldier reporters of llie propaganda company wiift accompany the troops in the field was one of a concentrated attack on llussian liigliwa\s, railroads, stations, junction points, etc., in order to prevent Red forces from falling back from their .defeats along the frontier in an orderl.v maniior.
So preat has been the destruction inflicted on the already limited Russian communications, it was said, that the mam¬ moth Soviet military forces are bogging down and starting to disintegrate as they seek to retreat over the broad plains )f Western Russia.
The  Russians,  these accounts claimed,  are  harried con-
I Continued   on   Page   B-.^l
Germans Driving to Murntansk and Leningrad
Move from Norway; Moscow Bombed, Finland Hears
VICHY DENIES ESCAPES OF GAMELIN, DALADIER
Vichy, June 28 lUPi The gov¬ ernment tonight officially denied rumors that Gen. Maurice ( imelin, former Allied generelissinio, and former Premier Edouard Daladier had escaped from Bourrasol, where they are awaiting a "war guilt" trial.
Marshal Mannerheim Calls on People Again
'Finn Soldiers! Follow Me— This Last Time'
By HKRBERT IXKIXL
Helsinki, Finland, June 29 (UP) I Sunday I Field Marshal Baron Gustav Mannerheim called on all p'innish soldiers today to follow him "in holy war against the enemy of our nation."
In an order of the day, Manner- : helm said:
"Finn soldiers I Follow me in the holy war against the enemy of our nation. Brothers in arms follow me  this last lime."
\'0T the second time in two years and the third time since the World War the 7!5-year-old soldier was leading the forces of Finland again.st Russia. 1' reed HU People
Mannerheim led the revolution in 1918 which in five months, from January to May, freed Finland from Russian domination. He as¬ sumed the lead again in the losing war with Rusnia in i:-i.'<»-40. I    His order of the day followed 4
24-hour period in which several Soviet bombing raid- on Finland were reported. An official an¬ nouncement said Jocnsu was bomb¬ ed at 6:,V5 a.m. Saturday and that persons on their way to work and a train in the station were attack- :ed.
Heavy explosions were heard at Kotko early yesterday and intense Soviet air activity was reported between the i.«landa of Suursaari and the Finnish mainland.
F'oreata Set Afire
Small groups of Russian planes on P'riday attacked Sodankyiae. Kcmijaervi. scene of heavy fight¬ ing in the 1939-40 war: Tohiiiajervi, i Nauvo, Korppo and Tarku. Fires were set in the forest near Korppo, it was said.
Mouhijaervi also was attacked on Friday, it was reported, and a ship was attaked in the harbor of Porvo. Lovisa and its harbor were i raided by 21 plane.i, it was said, ' and four buildings were destroyed and   three   civilans   wounded.
Two Russian plan-r were report¬ ed shot down over i^nnish ler- rilory Friday.
By HOLGER HANSEN
Stockholm, June 28 (UP)—Press leports from both Berlin and Hel¬ sinki indicated tonight that Ger¬ man troops were driving through .N'orthern Finland toward the Rus¬ sian port of Murmansk and along the Karelian Isthmus In the south toward Leningrad.
Berlin reports said German forces i from Norway had crossed into Fin¬ land toward Pelsamo, northern Finnish port, and were marching across the Arctic tundra against Murmansk.
Well informed presons here said other attacks were being launched against the Russians in the SalK district in mid-Finland, from the district north of I.,ake l,adoga and from   the  Karelian   Isthmus. j
.More Heavy Fighting !
Press messages from Berlin and Helsinki indicated lieavy fighting was under way on the Finnish- Russian border although the main attacks are against Minsk and Kiev and in the former Baltic states.
Reports from Finland said that German planes had heavJly at¬ tacked Moscow and inflicted "con¬ siderable damage" to indu.striai areas, German planes were re¬ ported also to be bombing Russian underground hangars on the Kola Peninsula near Murmansk.
On the Karelian Isthmus it was said German forces were forcing I their way toward Leningrad but that it was not known how far they had advanced thus far. Rus¬ sian resistance was believed to be extremely  fierce.
Only One Road
j     In the Arctic sector, the Germans
' have  only  one   u.seable  road     and
' it was said their advance was slow¬ ed by the many streams. Kngineer troops were said to be building pontoon   bridges   wherever   neces-
I sary.
Neither    German    nor    Finnish
' troops have started an offensive against the Russian base of Hango. ceded by Finland last year, but an attack, it was said, is expected in a few days.
The radio station at Riga con¬ tinued   to   broadcast   Russian   pro-
I grams up to 9 oclock tonight, indi¬ cating that  the  Russians were still
'in control o( tha Liatvian capital
unless the broadcast was from an illegal  station.
The reported raid on Moscow was said to have been one of several in recent days.
(This report has not been con¬ firmed in any official quarters. Dis¬ patches from Moscow indicate there have been no airraids on the Russian capital up to the  present.'
The newspaper Aftonbladet said that it had learned in Russian quarters in Helsinki that the Ger¬ man Luftwaffe had carried out numerous air attacks on Moscow In Ihe past few days. The raids were said to have been "intense."
According to this version, the Russians were said to have admit¬ ted considerable damage to Mos¬ cow, including bombing of indus¬ trial plants.
Finns on Aaland Islands
The newspaper Dagens Nyheter reported that Finnish troops had landed on the strategic Aaland Islands in the Baltic. The Islands, for a long period under interna¬ tional control, had been demili¬ tarized at Russian insistence after after   the   Russo-Finnish   war.
Scandinavian listeners have been paying close attention to broadcasts from the Russian Baltic states due to absence of specific mention of the progress of fighting in this area.
AUehanda reported that the sta¬ tion at Riga, capital of Latvia, waii back on the air this morning, broadcasting the Soviet war com¬ munique simultaneously with trans¬ mission by the Soviet stations at Leningrad and Moscow. The Riga ladio went off the air last night, possibly because of military opera¬ tions in that region.
Reds Htill on Radio
Estonian broadcasts were said to be still under apparent Soviet con¬ trol, and the night transmission concluded with playing of the In¬ ternationale.
The German-controlled Warsaw radio station was heard broadcast¬ ing appeals to Baltic populations to prevent the Russians from destroy¬ ing agricultural produce as they retreat from the  region.
According to press reports from Helsinki. Soviet planes attacked an (Continued   on   Page   B-5)
Dispatches from Euro¬ pean countries are now subject   to   censorship.
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