[Information Digest. No. 543]
[From the U.S. Government Publishing Office, www.gpo.gov]

NEWS BUREAU	SEPTEMBER 2, 1942
OFFICE OF WAR INFORMATION	N0. 543
WASHINGTON, D. C.
INFORMATION DIGEST
ARMY PROGRESS
Col. Paul R. Hawley, Chief Surgeon of the U. S. Army is Europe, reported in London that the sickness rate of American forces in Britain during the past six months was below that of troops in the United States.
Assistant Secretary of War McCloy, speaking in Cincinnati, Ohio, said during the last week of August planes in all theaters destroyed 41 enemy planes, probably destroyed 26, damaged 6 -- for a total of 73 casualties as against 1 American plane destroyed, 3 missing, 3 damaged — for a total of 7 casualties. Mr. McCloy said "In the war with Japan, not including planes lost on the ground or by antiaircraft, the total score from February 1, 1942, to August 30, 1942 (the period over which we have accurate reports) is Japanese planes destroyed by the Army in the air — 234; American Army planes lost — 109. That does not include damaged planes or the AVG record of General Chennault, which alone is: Jap planes destroyed — 218, against 84 AVG's lost. These records are due mainly to the performance'of P-4"'s.
Mr. McCloy said "Spitfires were used to protect our bombers (on the raids over France) only because we had made a deal with England whereby we would get our bombers intc action faster by using their excellent fighters as support pending the arrival of our own. When ours arrive and are properly coordinated with the bomber flights we know we shall be able to make a much deeper sweep into the Continent with our fighter protection than the Spitfire can afford us... Our high altitude fighter...particularly...the 2 engined P-38... will have at least as great firepower as the Spitfire, will climb and perform as high and it will for all practicable purposes go wherever the bomber goes, which the Spitfire having a very limited range and time in the air, cannot do. The P-47 which is now in production, will...also out-perform and outfight any fighter that we know about at any altitude..."
"To insure as high a degree of mechanical perfection as is humanly possible, the Army Air Forces has developed a system of technical inspection and maintenance supervision that is undoubtedly the finest and most thorough in the world," Army Air Forces Technical Inspection Director Beverley announced. Col. Beverley, who recently returned from a European inspection tour, said planes of the Army Air Forces now on duty in the European theater are maintained mechanically in the best possible condition. He said the system which makes possible such a condition begins with the airplane crew which maintain a continuous and comprehensive check of their craft. Other echelons of inspection check the work done by the airplane crews, Inspect hangars and equipment, and in addition there is constant supervision by the Technical Supervisor, operating out of his office in Washington.
Col. Beverley said there is great need for enlistment of men directly in the Air Corps who are qualified mechanics between 18 and 44, and who are U. S. citizens. Ap
plications should be made a{ the nearest Army recruiting office. Applicants do not have to be airplane mechanics to be eligible, because automobile, Diesel, truck, tractor, and farm mechanics can readily adapt their skills to airplane maintenance and repair; gunsmiths, instrument makers, cl^^imakers, water meter repairmen are among thiase who can be utilized as aircraft armo-ers; radio and communications men can become radio operators and mechanics; and all sorts ol^weldera and metal workers can find opportunities among ground crews, the announcement said.
THE WAR FRONT
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The Navy announced officers and meii of the U. S. Coast Guard served as crews of transports and as members of gun crews on the transports in American forces which attacked and seized Japanese strongholds in the Solomon Islands -- marking the first time in the history of the Coast Guard that its members had engaged in combat operations of an offensive nature so far from their home bases. "Observers present in this engagement were impressed by the expert manner in which the Coast Guardsmen handled their ships and manned tFeir guns," the Department said. "The accuracy of their fire was described as exceptional. "
Secretary of Navy Knox told a press conference no one could speak dogmatically on the purpose of the Japanese in moving into the Aleutians, but the Japs were probably using Kiska as an observation post. He said no Japanese land bases have been built on the Islands "that we know of."
Allied planes made two heavy attacks on Japanese combat forces who are thrusting with steadily increased power against Australian troops in the Kokoda area 55 miles across New Guinea from Port Moresby, Gen. MacArthur announced. Racing fighter planes raked enemy troops and communications with machine gun and cannon fire at tree-top level in the raids. The communique said dispatches indicated the Australians had succeeded so far in holding the enemy to the area of Kokoda village, down the northern side of the Stanley Owen mountains, but the Japanese were increasing their pressure steadily. On the southeastern tip of New Guinea, Australians in guerrilla operations are continuing to mop up the Japanese scattered through the jungle after their defeat at Milne Bay, the communique said.
NAVY PROGRESS
Navy Secretary Knox told a press conference the submarine menace is "not by any means solved," but there has been a "steady diminution of ships sunk off our own shores." He said "The minute you make it tough for them off the coast and the British Isles, they hunt new areas — the high seas far from land."
Secretary Knox announced that all officer« of the Regular Navy whose 58th birthday will be reached during this calendar year have been ordered to appear for special physical examinations, and examinations of the approximately 130 officers — admirals, cap
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INFORMATION DIGEST
NAVY PROGRESS (Continued) tains and commanders -- in this classification are already under way. He said the new policy was adopted because of the strain and grind of modern warfare. Although men at sea are especially subject to this strain, the examinations are being given to men ashore as well as to those afloat. One physical examination board has been appointed to meet at Washington and one at San Francisco.
Mr. Knox said steps hare been taken to insure the availability of sufficient officers in the various grades for the Navy’s expanding air arm. "In View of the rapidly expanding aeronautical organization, it may be expected that temporary promotions of Naval aviators will occur at earlier dates than regular line officers, 11 Mr. Knox said.
RELATIONS WITH BRAZIL
President Roosevelt announced a special U. S. technical mission of industrial engineers, headed by Morris Llewellyn Cooke, will leave
SEPTEMBER 2, 1942
for Brazil soon to assist the Brazilian Government in expansion of its industrial war machine. The President said in a statement that the mission was organized at the request of the Brazilian Government by the BEW, the State Department and the WPB. The general plan of the mission, he said, was agreed upon several weeks ago but since then the scope and urgency of the work have been increased as a result of Brazil’s declaration of war against Germany and Italy.
The basic objectives of the mission, Mr. Roosevelt said, are: (1) to increase local production of essential products to save shipping space by making their importation unnecessary; (2) to convert local industries to use of substitute materials replacing supplies previously imported; (3) to improve transportation facilities; (4) to lay plans for longrange strengthening of Brazil's entire industrial economy. "The program will be directed toward a further increase in Brazil's already important contribution ol vital materials for her own and the United Nations joint war effort," the President said.
CONTROLLING THE COST OF LIVING
PURCHASE OF WAR BONDS
State War Savings Bond quotas for September, totaling $776,000,00* for the country, were announced by Treasury Secretary Morgenthau. The national quota for August was $816,000,000. High quota for September is $125,000,000 for New York, while Nevada is expected to sell the smallest total of $950,000. California's quota is second largest, $61, 250, 000, and Pennsylvania's third, $60,000,000. Mr. Morgenthau also announced the Treasury Department is eligible to display the Minute Man Flag because 92.2 percent of the Treasury's 61,4«2 employees throughout the country have subscribed 10.4 percent of their gross payroll to the purchase of Bonds.
WAR FINANCES
War expenditures in August totaled $4,882,498,436, more than 3 times the amount spent for national defense in the same month a year ago, the Treasury reported. August war expenditures raised the total war costs for the first 2 months of the fiscal year to $9,376,959,122. Spending for all purposes, including war and public debt retirement, in August amount to $6,215,417,813, bringing the fiscal year's total to date to $10, 377, 681, 471.
The Treasury Foreign Funds Control Division reported it had information indicating that persons in the U. S. have been unintentionally violating the freezing regulations by sending securities, currency, checks, drafts, and promissory notes to persons in Switzerland, Spain, Portugal, Sweden, and other European countries. Treasury Department Public Interpretation No. 6 issued on August 31 states the above-mentioned financial instruments may be sent to a blocked European
neutral country only pursuant to a Treasury Department license, and that as a general policy the Treasury does not issue specific licenses permitting the sending of the instruments to such countries. Exceptions may be made"in certain cases, however, to permit the collection of foreign securities and coupons. Such remittances may be made in certain cases through established banking channels under appropriate Foreign Funds Control, general or specific licenses which require that the payment be effected by means of non-negotiable mail, or cable payment orders addressed to a bank in the country in which the payment is to be made.
RATIONING
In an amendment to passenger car rationing regulations, effective September 3, OPA ruled new automobile purchase certificates will not be granted hereafter to applicants who since January 1, 1942, have disposed of cars adequate for their needs, unless there were justifying circumstances at the time they were disposed of. Test of the adequacy of such cars will be the same as it would be if they were currently owned by the applicant.
MAXIMUM PRICES
In order to facilitate dispatch of essential war materials, the OPA exempted from price control the rates and charges for STEVEDORING and for CAR LOADING and UNLOADING when these services are supplied under a contract for any war procurement agency. Stevedoring and car loading and unloading when performed otherwise than for a war procurement agency remain subject to price regulation.
CONCENTRATION OF PRODUCTION
The WPB cut bicycle manufacture to 10,000 a month and concentrated entire production in two plants, the Westfield Manufacturing Co., Westfield, Mass., and the Huffman Manufacturing Co., Dayton, Ohio, in order to free t h.e remainder of the industry
for war work. The Westfield Co. may produce 6,000 a month, and the other Company the remainder. The Army, Navy, Maritime Commission, WSA, and Lend-Lease Administration will have first call on all bicycle production, the Board said, and any remainder after their requirements are met will be distributed among civilians under OPA's bicycle rationing system.
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INFORMATION DIGEST
WAR WORKERS AND CITIZENSHIP
A joint memorandum signed by Under Secretary of War Patterson and Under Secretary of Nary Board directs all present and prospective Army and Navy contractors and subcontractors may accept applications for employment under such contracts, if applicants: (1) produce an official certificate of naturalization or citizenship, or a birth certificate or other satisfactory evidence of American birth; or (2) if nonorably discharged from the Army, Navy, Marine Corps or Coast Guard of the U. S., produce the honorable discharge certificate or such certificate as may be issued in lieu thereof, unless such certificate shows on its face that the bearer was an alien at the time of issuance; or (3) execute a prescribed Declaration of Citizenship form in the presence of two witnesses, one of whom must be an Army or Navy District Procurement, Factory or Plant Protection representative, if available, or an officer of the United States Army, Navy or Marine Corps, or a member of the Auxiliary Military Police on duty at the plant. The memorandum said the three recommended procedures do not relieve the employers from the primary duty of making further investigation when there is reason to question the applicant's loyalty or citizenship.
TRANSPORTATION
ODT Director Eastman reported more than 200,000 miles of major railroad trunk lines are "virtually clear of congestion* and ready to undertake this fall "the heaviest movement of revenue freight traffic in history."
The ODT announced that following a recent meeting of ODT representatives, refrigerator car owners and the Association of American Railroads, it had approved a pool arrangement whereby all refrigerator cars in the country will be operated as a single unit for distribution. The action was taken to forestall refrigerator car shortages in handling the country’s perishable food supply.
SHIPPING
The WSA announced that on the advice of the OPA it has withdrawn nominal war risk insurance rates covering importation of certain commodities, and, effective September 1, such shipments take the rates which prevailed under insurances granted by the WSA in July and published in WSA Bulletins C-5 and C-6. The commodities affected are newsprint, nickel and alloys, manganese ore, industrial chemicals, chrome ore or chromite, dressed and undressed furs, soap and toilet preparations, artworks and antiques, woodpulp, private importations of meat and meat products, unmanufactured cotton, wheat, gem diamonds, jewelry and metal articles, and flaxseed. Inquiries concerning whether specific types of merchandise fall in the classification should be srbmitted in writing to the WSA underwriting agent through whom the policy in question was issued.
STRATEGIC MATERIALS
Commerce Secretary Jones announced the Defense Supplies Corporation has issued regulations under which compensatory adjustments will be made in connection with the movement of petroleum and petroleum products into the Eastern area of the United States. The adjustments are necessary, he said, to assure movement of sufficient quantities of oil to heat homes during the coming winter, to keep
SEPTEMBER 2, 1942
war plants operating at full capacity, and to supply enough gasoline for essential uses. Payments will be made to persons, corporations, or firms who produce, manufacture or purchase crude petroleum or compensable products in Districts Two and Three, and import such materials for manufacture or sale into District One, by abnormal means of transportation. "Compensable products" are defined as gasoline, kerosene, distillate fuel oils and residual fuel oils. Applications for adjustments are to be filed at the RFC office, 33 liberty Street, New York City. Copies of the regulations are available at RFC offices in New York and Washington.
WFB Aluminum and Magnesium Branch Chief Bunker announced production had started in the Government-owned magnesium plant at Las Vegas, Nev., which will be the largest of its kind in the world.
PRIORITIES AND AIJ.QCATIONS
The WPB announced its Compliance Branch is investigating illegal use of priorities by some plants to improve and expand their own capital equipment. The Board said Industry Branch officials have reported "many instances" in which war plants which have obtained priority reratings under the Production Requirements Plan have used the reratings "contrary to correct priorities procedures," and "appropriate action will be taken" to penalize offenses uncovered by the inves t igat ion.
All owners of USED CONSTRUCTION EQUIPMENT are required, under Limitation Order L-196, to file within 30 days on WPB Form 1159, a report showing the type and location of the equipment in their possession. Owners must also report on WPB Form 1333 any change of status of such equipment,' as movement from one location to another, change of ownership, or a change from being used to becoming idle. All forms are to be submitted to the nearest WPB regional office.
The WPB announced drastic cuts, effective September 7, in the amount of CIVILIAN CONSTRUCTION allowable without specific authorization after reclassifying all types of construction which can be undertaken without authorization. At the same time, WPB said a prospective builder should not make commitments for materials until permission to build has been granted. The fact that necessary materials may be available without priorities assistance "will not, in itself, govern whether he should be permitted to use them in construction," the Board said.
The Army, Navy and Maritime Commission have agreed to rigid restrictions confining COPPER to vital war uses which are named in "Military Exemption List" of Copper Conservation Order M-9-c now issued in final form, the Board announced. To provide adequate supplies for military needs of several important CYANAMID DERIVATIVES — cyanides, melamine, guanidine, and dicyandiamide — not covered by General Preference Order M-165, the WPB issued an amendment to place them under complete allocation control. The cyanamid derivatives named are used in nonferrous mining, in explosives, and in plastics, and present and impending shortages in these materials require stricter control of supplies.
USED LAUNDRY EQUIPMENT valued in excess of $100 was brought under the restrictions on distribution contained in Order
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INFORMATION DIGEST
PRIORITIES AND ALLOCATIONS (Continued)
L-91 which previously covered only new and rebuilt equipment. The order now subjects used laundry equipment, dry cleaning equipment and tailors' pressing machinery to the same control exercised over new and rebuilt machinery.
The Board directed the nation's entire supply of COTTON LINTERS, used in manufacturing explosives, plastics and other vital war materials, be sold exclusively to the Commodity Credit Corporation.
WASHINGTON MILITARY DISTRICT
TRANSFERRED
The War Department announced removal of the Military District of Washington from the jurisdiction of the Third Service Command. Services of Supply functions formerly under the jurisdiction of the Commanding General, Third Service Command, Baltimore, will now be under the Commanding General, Military District of Washington, who is Brig. Gen. John T. Lewis. The Military District of Washington is a unique organization in that it is a tactical unit under the jurisdiction of the Eastern Defense Commander, and, at the same time, exercises the function of a Service Command in this area, the Department said.
ESPIONAGE AND ALIEN PROPERTY
Herbert Karl Friedrich Bahr of Buffalo, who returned to the D. S. from Germany aboard the Swedish diplomatic exchange liner Drottningholm, was sentenced to 30 years imprisonment as a spy by Federal Judge William F. Smith in Newark, N. J. Bahr, who turned Nazi spy after he won an exchange scholarship at the Technische Hochschule in Hanover, Germany, was convicted August 24 in Newark of conspiracy to commit espionage.
Alien Property Custodian Crowley announced seizure of Japanese interests in 30 American companies, most of whom were engaged in the import-export trade. Companies seized which were best known in the U. S. were Mitsui & Co. and Mitsubishi Shoji Kaisha, American subsidiaries of two powerful Japanese concerns which exported raw materials from the United St at es.
LABOR DISPUTES
Secretary of Labor Perkins certified to the War Labor Board the following disputes: Winchester Repeating Arms Co., New Haven, Conn.; Pend Oreille Mines 4 Metals Co., Spokane, Wash.; General Optical Co., Mt. Vernon, N. Y. ; Hercules Powder Co., Hattiesburg, Miss.; The Pure Oil Co., Cabin Creek, West Va.; and American Smelting 4 Refining Co., Leadville, Colo.
APPOINTMENTS
MAJ. GEN. CHARLES M. WESSON, Army Chief
SEPTEMBER 2, 1942
of Ordnance from June 1938 until he retired on May SI, was appointed ASSISTANT to Lend-Lease Administrator Stettinius. Gen. Wesson will "advise and assist" the Office of Lend-Lease Administration, the announcement said.
ROBERT A. NIXON, Viroqua, Wis. , a member of the Wisconsin Public Service Commission, was appointed DIRECTOR of the newly created OPA Division of Transportation and Public Utilities, OPA announced.
The Agriculture Department announced the following changes in personnel in the Agricultural Adjustment Agency:
EDWIN D. WHITE, Little Rock, Ark., from Assistant Chief to ASSOCIATE CHIEF of the agency.
FREDERIC B. NORTHRUP, Long Beach, Calif., from Assistant Director of the Division of Special Programs to ASSISTANT CHIEF of the agency.
WILLIAM G. FINN, Burlington, Ky. , from Director of the East Central Division to DIRECTOR of the Division of Special Programs.
JOSEPH L. ORR, Lindley, N. Y. , from Chief of the Economics and Statistical Section of the Division of Special Programs to ASSISTANT DIRECTOR of the Division.
CHARLES D. LEWIS, Eubank, Ky. , from Assistant Director of the East Central Division to DIRECTOR of the Division.
JOHN H. EAST, Churchville, Va., from Administrative Officer, East Central Division, to ASSISTANT DIRECTOR of the Division.
LOUIS L. NEEDLER, Indianapolis, Ind., from Chief, Division of Equipment and Supplies, Office of Agricultural War Relations, to DIRECTOR of the newly created Division of War Board Services.
JAMES H. McCORMICK, Springfield, Ill., from Chief, War Board Section, Office of the Special War Board Assistant to the Secretary, to ASSISTANT to the Director of the Division of War Board Services.
W. CAPEN SHANK, Johnston County, Kans., was appointed REGIONAL DIRECTOR of the WPB with headquarters at Kansas, City, Mo. Mr.
Shank is President of the Crowe Coal Mining Company of Kansas City.
ERNEST KANZLER, WPB Deputy Chairman for Program Progress, was named WPB DIRECTOR GENERAL for OPERATIONS by WPB Chairman Nelson. Mr. Kanzler succeeds Amory Houghton who resigned to return to his job as Chairman of the Board of the Corning Glass Works, Corning, N. Y.
(All information herein is from official sources.)
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