Show 0 F. F N WEEKLY NEWS S ANALYSIS Fresh Nazi Offensive Forces Red Army To Yield Key Post Back Backof of Rommel Drive Perils Perils' All Middle East c. c U. U S. S Names Leader for European Zone EDITORS EDITOR'S NOTE NOTE opinions are arc expressed In these columns they are those of or the news and not ol or this c analyst necessarily newspaper i Released by Western Newspaper Union T w- w t r r rr t.- t. I rl r V. V t f dI 11 bT ISY Jt i r WAK L GUAM pacific aa l z 7 The strategic importance of the Aleutian islands off Southwest Alaska Is indicated by the above map From Kiska near the western end of the Of chain to Tokyo the distance is less than 2000 miles mites Dutch Harbor lies liest I t 2400 miles miles northwest of 01 San Francisco Jap lap landings in the fog blanketed t Aleutians have bave focused Americas America's attention on that area f RUSSIAN WAR r. r f Nazis Nath Pay Dearly If V Marshal Red army it J had sustained blow after blow on the front as General von Bocks Bock's Nazi hordes tried a n breakthrough breakthrough breakthrough break break- through to swing around gateway to the Caucasus oil fields Stubbornly resisting German forces numerically and mechanically mechanical mechanical- ly superior to them the Russians had been compelled to fall back to new lines Here they had withstood heavy attacks of tanks infantry and planes 4 A Russian acknowledged v- v edged the loss of the railway junction junction junc June tion city of 60 miles southeast southeast southeast south south- east of The Reds were following a st strategy strater strate strate- ate r r gy that had served them well in last years year's bloody campaigns of of fighting fiercely until forced to fall fallback back then withdrawing slowly to Meanwhile Meanwhile Mean- Mean strongly prepared positions r while they were taking an enormous toll in Nazi dead and slowing down Hitler's timetable Meanwhile Britain brought additional addi addi- grief to te Nazis with a world F I record raid on the German port city r of Bremen More than 1000 planes C raided Bremen leaving it in flames f I A British reported the loss of 52 planes I t 5 TAX BILL Biggest on Record i The average income taxpayer faced the prospect of bf f paying about J twice as much as he is now paying when the new federal revenue bill rt becomes' becomes operative r i V As approved by the house ways and means committee the new bill would provide a gross revenue esti- esti I y mated at the the largest F t e tax ever collected in United States r- r history At that it was a billion and I. I IT a half hail short of the treasury departments department's depart- depart ment's ments ent's original origin l request for new levies levies lev lev- ies fes to help finance war outlays i r Surprising to many fiscal experts V i was the house committees committee's action in int t striking out a provision making it v mandatory for husbands and wives to file joint income tax returns The average wage-earner wage would i o 1 be affected three ways under the new tax measure The bill provides 1 J J- a normal income rate increase of ot r. r L from 4 to 6 per cent exemptions r for single men would be reduced from rom to and for married men from 1500 to 1200 surtaxes would be increased from rom 6 C to 12 per i 0 1 f cent on the first 1000 of ot net taxable t income y 1 1 U. U US U.S. S. S INCO INCOME fE c I To Hit Billion J i Marriner S. S Eccles chairman of ot r. r 4 4 the Federal Reserve board told the thet 1 t nation that a new time newall-time time all record of ot billion dollars for the annual i i national income would be reached during the war years t f. f Mr Eccles warned Americans K that this tremendous spending power pow- pow i 5 er will be far in excess of the consumer consumer cont con con- t j sumer umer goods available to the buying buying buy buy- ing mg public Strict curtailment of all but necessary purchases greater great great- I er personal savings and steady buyIng buying buying buy buy- ing of government war bonds he i j said will stop inflation The 1942 national income will be beabout about billion dollars he said in ina r 1 I a radio address This will be about 30 billion more than it was in 1939 r e I EUROPEAN FRONT U. U S. S Takes Steps A further step in the program to tomake tomake tomake make the fighting efforts of the United United United Unit Unit- ed States and Britain more effective and to pave the way for the second front was taken when the war department department department de de- de- de announced the establishment establishment establishment establish establish- ment of a European theater of operations operations operations op op- op- op for United States forces Director of this European theater was Maj Gen Dwight D. D Eisenhower Eisenhower Eisen Eisen- hower recently assistant chief of staff of the war department general staff who had already arrived in London when the announcement of his appointment was made Laconic was the statement issued by the new commanding general In which he said that formal ormal establishment establishment of a European theater is a 3 logical step in co the efforts efforts efforts ef ef- ef- ef forts of Great Britain and the United United United Unit Unit- ed States EGYPT Tank Steeplechase Sidi had fallen and Salum had been abandoned as the British strove by fierce rearguard actions to slow down the rush of Marshal Rommel's victory-flushed victory tank armies armies armies ar ar- ar- ar mies in engagements on which the fate of Egypt and Suez depended The serious plight of the British had been apparent following the surprise surprise surprise sur sur- prise surrender of in nearby Libya Foxy General Rommel lost no time in following up his advantage advantage advantage tage by slicing into Egypt General Ritchie's battered forces had not made a stand at the Egyptian tian tiati border because of the danger of encirclement but had withdrawn to Mersa miles east of the Libyan frontier The British had been in possession possession possession posses posses- sion of Sidi since December December December Decem Decem- ber 11 1940 when they drove out Italian troops which had occupied the town less than three months before before before be be- fore and then launched a 3 drive which swept miles across the Libyan desert F FAMILY Al Y MEN IEN Deferred erred by Draft t I The departure of many a married draft inductee for training camp was halted when President Roosevelt Roosevelt Roosevelt Roose Roose- velt signed legislation authorizing deferment of family men until the supply of single men is exhausted This marked the first time in American Ameri Amen can military history that the policy of so preserving established families families families lies had been fixed by law Draft headquarters announced that married men with children would be the last to be called into service but emphasized that they could count on no permanent deferment The deferment clause applied only to men married before December 8 8 1941 Financial assistance to dependents of service men was provided in the measure with the government furnishing furnishing fur fur- nishi g the bulk of the monthly al allowance allowance al- al lowance check and the service men menthe menthe menthe the balance The allotments would go to army men up to and including including ing tag the grade of line sergeants and navy men including third class petty officers Allowances include 50 a 3 month for for a childless wife of a service serviceman man 62 for a wife with one child and 72 72 for a wife with two chil chil- dren 1 SUBMARINE V WAR AR Caribbean Casualties While President Roosevelt and Prime Minister Churchill labored over the problem of finding ng ships with which to open and support a supreme front against the Axis disquieting disquieting dis dis- quieting news of the increasing men ace of enemy submarines in American Ameri Amen can waters was made public Soon after alter the navy had announced announced announced an an- that a 3 convoy system was protecting shipping along the Atlantic Atlantic Atlan Atlan- I Itie tic tie coast c came me a disclosing disclosing dis dis- closing that Axis subs had sunk 13 ships fn in n the Caribbean in a day 12 period The shift In Axis U-boat U tactics from front our immediate shores to the Caribbean sea lanes presented new problems to an m already overworked overworked overworked over over- worked navy That Tha t these problems would re receive receive receive re- re prompt attention was intimated ed when it was announced that the navy had purchased two big airports in Miami Fla Establishment of air airbases airbases airbases bases here would provide the navy with effective effective- opera operating ing points from which to strike 3 at t submarines in southern waters CONSUMER SERVICE OP OPA A Takes Hand Eland I Prices for shoe-shines shoe and half- half I I soles for funerals pressing pants-pressing and permanent waving reverted to the level existing on March 1 when the Office of Price Administration established fixed ceilings for consumer consumer con con- sumer services The new order affecting a million million mil mil- lion establishments doing a five billion billion bil bil- bil lion dollar a year business stabilized stab stab- costs of important personal service items for every American citizen It was a further step in the theOPA's theOPA's theOPA's OPAs OPA's campaign to prevent Inflation inflation tion and runaway prices For example the laundry that charged 12 cents for a shirt in March and raised the rate to 15 cents in April or June had to cut its figure back to 12 cents on Jul July 1 Among the most common family budget items covered by the regulation regulations regula regula- tion were shoe repairing and shining shin ing pressing altering and repair of clothing hat cleaning laundry electrical repairing food locker service and rental el cleaning aning and dyeing film developing and printing printing printing print print- ing watch and clock repairing and undertakers undertaker's services ARGENTINA End While Argentines Argentine's policy of prudent prudent pru dent neutrality had foundered with the sinking by a Nazi submarine of the freighter Rio Tercero President Roberto M. M Ortiz supporter of President President President dent Roosevelt's policies formally submitted his resignation Inactive for nearly two years because of 4 1 jv- jv S 4 c s sr r DR ROBERTO ORTIZ near blindness Ortiz placed full futI responsibility re re- re for his country's administration administration administration admin admin- upon Acting President Ramon Ramon RamonS Ra Ra- Ra- Ra mon monS S. S Castillo father of the prudent prudent prudent pru dent neutrality policy in dealing with the Axis The sinking of the Rio Tercero fanned a flame fiame of popular resentment resentment resentment resent resent- ment against Germany fo for this was the third Argentine ship attacked and the second sunk in recent months This resentment failed t to calm down even when the government government government govern govern- ment announced it had dispatched an energetic note of protest to Berlin Sterner measures were demanded demanded demanded de de- de- de not only by the public but by the chamber of deputies AUSTRALIA New Airdromes Steady progress In the task ot ol strengthening Australia's defenses against Japanese invasion and providing providing providing pro pro- viding offensive springboards for an eventual United Nations assault on Nippon was reported by Brig Gen Hugh Casey of the U. U S. S engineers corps At least airdromes have been completed in the last fe few v months he said In addition war construction construction construe construe- tion work embracing 1500 major and minor projects Is well in hand despite a scarcity of labor plants and machinery General Casey reported that one airdrome costing had been in 71 days ARMY IY BUDGET 43 Billion for lor Tf War ar With grave news from the fighting fronts in Russia and the Middle East disturbing the nation the house of representatives approved a bill appropriating appropriating appropriating ap ap- ap- ap nearly 43 billion dollar for the army for the next fiscal year This new army bill exceeds by more than a 3 billion dollars the entire entire entire en en- tire cost of World War I. I It brings to to more than billion dollars the total provided for th the thc army and I. I navy nav since in e Pearl Harbor |