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Newspaper
Cedar Rapids Gazette
Location
Cedar Rapids, Iowa, United States of America
Date
Jun 30, 1942
Page
1
The administrator warns Congress that price controls cannot hold without legislation allowing subsidies to offset costs. He sketches buying high cost inputs and selling at a loss to keep prices level, and hints at hiring costly labor for manufacturers. The piece contrasts this with political reluctance and broader fiscal pressures.
Red Star dispatches reveal Soviet forces encircled German infantry and smashed more than 200 tanks during two days of Kursk fighting near Kharkov, Sevastopol defense held with heavy losses on both sides, and a looming German general offensive across the front.
London reports Bremen, Germanys second port and submarine base, heavily bombed Monday night marking the third raid there in five nights. The air ministry said a strong force over northwest Germany targeted Bremen while other airfields and intruder raids struck France and shipping off the Atlantic coast. Nine bombers were missing and Berlin claimed ten raiders were shot down.
Russian dispatches report a Red Army artillery unit surrounded by German forces on the Sevastopol front held out for three days under heavy air and ground attack and died to the last man rather than surrender.
The Senate approved a $42.82 billion army supply bill in 31 minutes by voice vote with a single minor amendment banning ad sales in army camp newspapers. The House quickly concurred and sent the measure to President Roosevelt, also adopting a WPA works projects bill funding $280 million for the next fiscal year.
The army will impose strict military control on all civilian travel to and from Alaska with a July 11 start date. A military pass will be required for any civilian entering or leaving the territory, marking the first such order for the Pacific area.
Prime Minister Churchill announced in the commons that Gen. Sir Claude Auchinleck relieved Lieut. Gen. Neil M. Ritchie of the Eighth Army command in the Middle East. Auchinleck assumes the task of stopping the German drive through Egypt, with Miles Lampson authorized to grant Egypt additional assurances.
China thanked the American Volunteer Group known as the Flying Tigers and Brig. Gen. C. L. Chennault as they wind down their unit against Japan. The dissolution is set for July 4 and some personnel may join the U S Army Air Force. The Chinese honor Chennault and his air knights as comrades in arms and foresee the regular U S air force continuing their bravery and skill.
The House approved a second bill to end the Civilian Conservation Corps. In a roll call of 229 to 121, members refused to direct conferees on a labor federal security bill to accept the Senate stance, risking Walace’s tie breaking vote and halting CCC funding for the new fiscal year with a 76 million dollar appropriation.
President Roosevelt met Queen Wilhelmina of the Netherlands for tea at Lee Massachusetts where Crown Princess Juliana is staying at a summer home. The White House announced the meeting occurred on Monday and highlighted the cordial exchange between the two leaders.
Washington reports the last fiscal year totaled about 22.5 billion dollars, the highest in U S history, with direct war costs nearing 25.7 billion from 1917 to 1921. The new year budget is projected at 73.1 billion, including 67 billion for direct war purposes.
A parade over a mile long with about 2 500 participants will officially open Cedar Rapids War Stamp and Bond Sale day at 10 30 a m Wednesday led by Lieut Gov Bourke B Hickenlooper and Mayor Frank Hahn The event aims to promote stamps and bonds with a day long program including noon trumpeters and a civic focus on non commercial sales The parade features 91 business and civic groups and a wheelbarrow sale gimmick with a navy outfit selling corsages and boutonnieres made from stamps Parking restrictions apply on Third Avenue SE The march proceeds through the downtown area ending with a large civic display
Price Administrator Leon Henderson told congressional leaders that price ceilings cannot hold without immediate subsidy legislation. He warned that easing controls to cover higher raw material and transport costs could trigger a massive rise in the cost of living unless the government covers the added costs. He proposed subsidies financed by government losses to keep current prices, noting a 20 cent rise on the East Coast from rail oil shipping costs. Henderson and Secretary Wickard met with Speaker Rayburn and Majority Leader McCormack, and estimated annual subsidy costs at three to four hundred million dollars. The House committee has not been asked to fund the subsidy plan in regular OPA appropriations, though it has heard estimates of colossal sums. He warned March farm-ceiling levels could bankrupt processors unable to pay farmers under price controls.
J C Mike Kennedy longtime manager of Hotel Blackhawk Davenport has been named non managing director of the Roosevelt hotel Cedar Rapids announced by R S Cook president of the Roosevelt Hotel company. Kennedy and family will move to Cedar Rapids in July. He began at Hotel Fort Des Moines in 1924 and later led Hotel Mississippi Davenport before joining the Blackhawk chain. He has been active in Davenport civic and hotel groups and the Rock Island Arsenal club.
President Roosevelt directs every government department and agency in Washington and nationwide to turn in every possible ounce of rubber from their buildings. He expresses disappointment over the incomplete results of the rubber collection campaign and extends the effort.
Allied headquarters in Australia reports only limited air activity in all sectors as General Mac notes. Details on targets or dates are not provided. The brief bulletin emphasizes restrained operations amid ongoing regional tensions.
American and New Zealand troops reinforced British imperial forces in Egypt amid heavy fighting 140 miles west of Alexandria as Rommel drives 175 miles into Egypt. RAF raids hit Axis ground forces west of Matruh and Tobruk, while evacuees claim desert reverses but air control under the RAF steadies morale.
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