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Clear Path to Moscow Will Be Open Soon, Germans Declare 'Battle of Attrition' in Smolensk Area to Clear Way, Berlin Asserts By the Associated Press. BERLIN (Sunday), Aug. 3.—The well-informed Dienst aus Deutsch land commentary predicted today that "the way to Moscow will be open shortly" through the Smolensk area, while German war reports told of the ouebreak of "another great destructive battle" in the Ukraine. Stubborn efforts of the Russians to halt the German advance on the Soviet Capital through the central iront, said the Dienst, a German news service, have led to a "battle of attrition" which now has raged more than two weeks. It declared the outcome would clear the road to the east. Ukraine fightiing flamed between the Bug and Dniester Rivers south of Kiev, with German speed troops officially declared to have cut deeply again into retreating Soviet columns. The sudden shift of power in the Nazi offensive to the southern end of the huge complicated front was reported as another week of the war slipped by without extensive territorial gains in other sectors be ing reported by the high command. Divisions Reported Trapped. Yet further Red army divisions were reported trapped east of Smo lensk, however, with German troops methodically pressing forward to draw tight the net along the road to Moscow. The location of the new southern drive, was given as 155 miles south of Kiev, the capital of the Ukraine. It evidently was launched across the Dniester from Upper Bessa rabia, and possibly was aimed at driving a wedge between Kiev, Rus sia's third city, and Odessa, her chief Black Sea port. The Germans already have report ed advance of their forces across the lower Dniester, and they were said today to be bringing their ar tillery up to within bombardment range of Odessa, which also is an Important naval base and only about SO miles distant from the Dniester. Coupled with the land attack, the high command said, warplanes heavily bombed Moscow and rail Junctions in the upper Volga and Southern Ukraine. 82,000 Prisoners Claimed. While the Germans claimed to have made steady if small territorial advances in the week just ended, they were putting emphasis again and again on the military thesis that the first objective is to destroy the Soviet Army and not th occupy its cities. This war of material against ma terial was held to be developing fa vorably for the Germans. Thus, an unofficial review of the last seven days said 82,000 prisoners and enough equipment to outfit a iair-sized army had been taken. Captured war material, it was said, included 737 heavy tanks, 770 ' field cannon, 27 complete artillery batteries, 1.210 machine guns. 3.000 /motor vehicles, 1.200 railway cars and 2 armored trains. Destroyed yesterday, another re port said, were 129 Soviet planes. The Dienst, commenting on this phase, said the tanks captured were ae many as Soviet industry can build in two months. If this keeps up. said Germans, the Soviet arsenal toon will be empty. Little to Say on Material. As to how much material the Germans are losing, they had little to say. only remarking that German commanders know how to conserve their equipment. Although the Germans admitted they had been subjected to intense Soviet counterattacks in the Smo lensk area they denied the war had become one of position, waged from trenihes across no-man's-land. "The British try to give the im pression it has become a war of position." said D.N.B.. official Ger man news agency, "but Germany has the power and material to force a decision in the East and such a decision is a pre-condition for a finish fight with England herself." Nevel, Novorzhev, Smolensk and Zhitomir, towns used by the Rus sians to describe the areas of fight ing in their communiques all have been in German hands many days, D.N.B. added. In other phases of the war. the seventh air attack on Suez in three weeks was reported, and a "rich fund of information" reported brought back from reconnaissance over England. 20,000 Tons of Shipping. D.N.B. said German combat planes sank more than 20,000 tons of ship ping and damaged an additional 5.000 tons in an attack on a Brit ish convoy off Scotland. A 6,000-ton merchantman was Struck squarely and sank in a short time. D.N.B. said. Another ves sel of between 6.000 and 8.000 tons was set afire by several hits, the agency said, and a tanker of 8,000 tons struck several times in the stern was left listing and in flames so that it was considered a loss. Another freighter of 5,000 tons was struck several times, D.N.B. said. Before the report of this at tack was published an unofficial tabulation set the destruction of shipping destroyed in a week of raids along Britain's shipping lanes at 166.500 tons, including 16,000 tons sunk or damaged yesterday and last night. Cool Wind to Terminate Heal Which Felled Two "A beautiful week end," with clear sties and slightly lower tempera tures today and tomorrow, was pre dicted last night for the District by the Weather Bureau. Cooler air, which has been mov ing slowly southward from Canada, will come into Washington in the form of a gentle north wind, the forecaster said, and is expected to keep the maximum registration today and tomorrow at about 84 degrees. Less humidity also was expected, about 10 per cent below yesterday's mark. A slight increase in humidity was expected tomorrow, however. Yesterday, when the temperature reached a high of 89 degrees, two men were given hospital treat ment for effects of the heat but wene later released to return home. They were Melvin McCoy, 26, of the 4300 block of C street S.E., treated at Emergency Hospital, and John Buchanan, 33, oolored, of the 1200 block of Sixth street N.W. WELD PIPE LINE LINKING U. S. AND CANADA—William H. Wills (left), Governor of Vermont, and C. D. Howe, Canadian minister of munitions and supplies, co-operate in welding an oil pipe line as the Canadian and United States sections were brought together at High Water, Quebec. The line joins a terminal at Portland, Me., with refineries at Montreal. —A. P. Wirephoto. Moscow (Continued From First Page.) manpower—already considerably in excess of 1.500,000—and in materials. "Each day of the struggle brings the German Army closer to defeat and Hitlerite Germany closer to catastrophe." Great Losses Claimed. "The Red Army is beginning to beat off the Fascists from the po sitions they occupy," said an op timistic statement in the Com munist Party organ, Pravda, "is forcing them at a number of places to abandon the offensive and as sume the defensive, and in certain places to retreat with great losses." With the war ending its sixth week, Pravda pictured the Germans as having failed to disrupt the long and laborious task of fully mobiliz ing the full Soviet Army, to seize the three key western cities of Mos cow, Leningrad and Kiev, and as having lost the initial advantage of huge concentrations launched in a powerful surprise attack. Now "all levers" of the Soviet ! strength are being put into action, said the official organ. "From isolated defensive blows the Red Army is going into consecutive counterblows which are hurling back the impudent enemy." uesperaie tnoris. The official communiques said the Germans, in desperate efforts to hold their ground, were rushing in fantry divisions forward under forced marches, while panzer divi sions. cut off from fuel supplies, were burying their gas-dry tanks in the ground to serve as miniature fortresses until help could arrive. Parachutists, it was said, in at least one instance, were sent for ward as reinforcements until the infantry could battle its way for ward. But the Red Army was described as turning back on the Germans the same tactics which the Nazi general staff has used to drive steel fingers into the enemy's lines. Crack Red units, it was. said, were probing for the weak spots in the German lines, driving in wedges, and then exploiting the gains with flank attacks. One Soviet division, the 99th, thus contributed to the destruction of dog-tired German infantry divisions, Soviet military dispatches said. One of these presumably was the Ger man 5th Infantry Division which an eyewitness account from the front said had been rushed forward · to reinforce a parachute unit. The location of this action was not given, though especially severe fighting was reported in the Smo lensk area along the road to Moscow. Mentions Infantry Division. A communique specifically men tioned another German infantry division, the 137th, as having been wiped out at Smolensk. This division was said to have been rushed forward to check a Soviet advance but to have been ferociously attacked from the flank before it could get into action. Sur rounded by artillery, it was virtually annihilated by the storm of fire and succeeding bayonet charges, the of ficial report said. A desperate effort of German motorcyclists and cav alry to cut through the cordon met a smashing disaster when it en countered a unit of Soviet tanks. While Prava said the Germans were being driven back in some places, it warned that in others "the treacherous enemy, despite his great losses in manpower and ma terial, is attempting to expand the territory seized" and is trying by all means to reach the life centers ol : the Soviet Union. I Pay Bill (Continued From First Page.) I program was adopted. First-year promotions under the bill alone are estimated to cost about $5,000,000, with the figure diminishing there after. The pay raises are contemplated at 18-month periods for those employe! receiving less than $3,800 annually, and every 30 months for those over that figure and under $9,000. Ef ficiency ratings of good, or better than good, however, will be required to qualify. Unless the case is ex ceptional, one-step Increases will be the rule; for the exceptional cases, an additional step may be granted. The advances under the Classifica tion Act will be $60 or $100 in the 18-month bracket, and $200 or $250 for the 30-month group. For the E. O. advances, the executive order provided these steps: Grades 1 to 7, $60: 8 to 12, $100; 13 to 16, $200 , and 17 to 19, $250. Inequities Disclosed. The pay raise legislation Is the result of a survey the Budget Bureau made at the request of the House Xpproriations Committee which dig closed widespread inequities in the distribution of promotions from year to year m between different agencies and tnxip· of employee. It is esti mated that the uniform system wûJ permit employes under the $3.800 1 level to reach the top of grade in nine years, and the others, in 10. In expressing the belief that the principal beneficiaries under the emergency order scales would be field employes, officials said that this class of workers in Washing ton generally were at the top of their grades, for the reason that these maxima corresponded to the minima under the Classification Act for comparable work. Such agencies as the Home Owners Loan Corp., Farm Security Administration, Na tional Youth Administration and part of the Public Works Adminis tration were said to be among the groups still operating under the emergency scales. which were adopted when the emergency agen cies were flourishing in the earlier days of the New Deal in an effort to bring about some uniformity. The coverage of these rates is being gradually lessened however, it was said, and they will disappear as the Ramspeck Civil Service Extension Act becomes effective, bringing under civil service agencies now exempt, and extending the Classification Act to the field service. Proponents of the plan contend that in the long run it will pay for itself by lowering turnover and in [ creasing efficiency. War Building (Continued Prom First Page.) be regretted for decades after this emergency is past history in the minds of future Americans? "The members of the Commission of Pme Arts are aware that the National Capital Park and Planning Commission pointed out the prac tical difficulties attendant upon carrying out the program for build ing this huge war office in Arling ton. We have discussed, therefore, problems of traffic, of sewage dis posal, and other troublesome fac tors incident to the proposal. We feel that the presentation of the aesthetic factors are worthy of your careful consideration, for the de struction of these values will result in a movement backward, which cannot help but react against the future worth of this city and cause American citizens to lose confidence in those charged with the duty of carrying out an orderly plan based, not alone upon convenience and health, but also upon those intangi bles we call beauty, delight and great charm. ' Defense Needs Conceded. "The Commission of Pine Arts is fully .aware of the necessity for bending every effort to stimulate more effective measures in the in terests of national defense. Nothing that has been written in this letter ; should be construed to mean that we are not wholly sympathetic to the needs of the War Department. We believe, however, that those re quirements may be fulfilled without the destruction of values which have been jealoilsly guarded throughout the life of this commission. We believe that there are other satisfac tory solutions to the problem and we stand ready to assist in any way we can to the end that the War Department may be served and that this great city may not be made a place of less beauty than now ob tains. "Members of the Commission of Pine Arts served with distinction as officers in the last great war and they are not likely to be accused of taking action to slow down de fense; they rather hope that this action, aimed to prevent the erec tion of a single huge building for the War Department Offices in Ar lington, may result in a new scheme based upon the decentralization of the department, which may obviate a potential disaster resulting from creating a single target for enemy bombs. "Respectfully submitted, "For the Commission of Fine Arts, "GILMORE D. CLARKE, "Chairman." One War Office Planned. As approved by the House, the project is designed to quarter in the single group of structures the entire War Department force—estimated to reach 40,000. The department figures to have 30,000 workers by the end of this year. As the Senate eubcoro:, .'.ttee pre pared yesterday to debae the mat ter, it was indicated that some mem bers, while sympathizing with the desire of war officials to centralize their operations, are greatly con cerned by the difficulties that nec essarily would arise out of such a step. The traffic pro'ilem created on the Potomac bridges is one im portant angle considered; the de mand that woilld follow for other facilities in Arlington County Is an other. The subcommittee expects to grapple with the issue in executive session Tuesday or Wednesday, after testimony has been completed on other phases of the $8,063,000,000 first supplemental defense bill, which includes the building funds. In ad dition to War Department officers, the subcommittee is expected to summon representatives of the Fine Arts Commission and of the Na tional Capital Park and Planning Commission, which has recom mended that the size of the build-! ing be halved. Senate Might Cut Project. In the event the Senate appro priations group decides to reduce the size of the project by provid ing only for an initial unit, or elimi nates it entirely, the final decision would rest with conferees for both branches, since the full amount is already in the House bill. It has been emphasized in the discussion of the proposal that most of the large force of War Depart ment employes living in Washing-1 ton would have to get through not only the District's congested traffic, but across one of the bridges twice a day. Even before the project was put forward, a House committee was considering the necessity for an ad ditional bridge or tunnel to facili tate traffic across the Potomac. No such project has yet been author- j ized, however, and would take con- i siderable time to construct. Dr. Scott Breckinridge Funeral in Kentucky Funeral services for Dr. Scott Dudley Breckinridge. 58, gyne cologist who died Friday in Lex ington, Ky., will be held there at 11 ajn. tomorrow. Dr. Breckinridge was well known here, where he was born and where he studied medicine at Georgetown University. He served an interne ship at Providence Hospital and was a practicing physician here until the World War, when he became a colonel in charge of a base hoe pital In France. After the war. Dr. Breckinridge practiced in Lexington. An expert fencer, he was at one time Ameri can foils champion. He came of the old Kentucky family, descendant of Thomas Jef ferson's attorney general. His father. Gen. Joseph C. Breckinridge, was stationed here for several years. He has two survivors in Wash ington and vicinity, a son, John Breckinridge of the District and a sister, Mrs. Margaret Vance of Chevy Chase, Md. Bread Increased Cent a Loaf by Company Here , The General Baking Co. an nounced yesterday that, effective JBonday, the price of Its bread would Increase 1 cent a loaf due to recent rises in production costs. New prices of the company's "Bond" bread will be 10 cents a loaf for white and rye and 11 cents for whole wheat. Such prices were anticipated by the Office of Price Administration and Civilian Supply last week when it appealed to leading bakers to keep increases to a maximum of 1 cent a loaf and. if possible, to absorb additional operation costs through curtailing promotion and other expenses. Leon Henderson, Opacs adminis trator, said that increased prices appeared to be justified In many areas because of higher costs of flour, labor and other production expenses. But added, increases of more than 1 cent a loaf did not appear to be Justified in any instance. Britain and Germany Warned by Argentina On Propaganda Activities Must Be Toned Down or Bureous Will Be Closed, Ministry Says Bs the Associated Press. BUENOS AIRES, Aug. 2.—Both the British and German govern ments were requested by the Ar gentine Foreign Office today to tone down the activities of their propaganda bureaus in Argentina, so that Argentina would not have to close them. The Foreign Ministry in notes to both governments declared mate rial published in Buenos Aires "more or less" under the auspices οf the British and German Embas sies and picked up by police in a campaign against anti-Argentine activities had been found to con tain "statements injurious and of fensive to one side or the other" in the European war. Tranquility Held Affected. ' The notes added that these pub lications thus "constitute propa ganda which affects deeply the tranquility and order of this neutral country." The notes pointed out the "con venience of preventing intervention In the press offices (of the embas sies) in the distribution of these publications," thus hinting that such intervention be made unnec essary. The government meanwhile sup pressed the "Alliance of National ist Youth" on grounds that the movement "has a totalitarian mil itary character violating in fla grant form the constitutional pre cepts governing the life of our country." Action Follows Raid. Thîs action followed a raid on the German welfare culture move ment· headquarters at Parana and the arrest of some of its members. The raid was made on complaint of residents that secret military drills were being held there at night. • The congressional committee in vestigating anti-Argentine activi ties disclosed tonight it had car ried its inquiry to the Salta re gion. on the Argentine-Bolivian border, and found it to be "a heretofore unsuspected area of to talitarian infiltration." No details were given. Mexico Completing Plans To Oust Foreign Spies MEXICO CITY, Aug. 2 OP)—The newspaper Universal Graflco re ported today that the Ministry of Interior is compiling data on scores of Nazi, Fascist and Communist spies in Mexico preparatory to ex pelling them. The newspaper said the govern ment might take action against such foreign agents next week. Mail Pact With Germany Is Denounced by Peru LIMA, Peru, Aug. 2 Accusing Germany of misusing diplomatic mail pouches, the Peruvian Foreign Office tonight denounced a 1925 agreement with Germany covering such mall. F. D. I. C. Denied Interest On Deposits It Insures Β* the Associated Prrsi. RUSSELLVILLE. Ark., Aug 2 — The Federal Depoeit Insurance Corp. is not entitled to collect In terest on bank deposits insured by it, Chancellor J. B. Ward of Pope Chancery Court held in a ruling announced today. ι Described by court attaches as the first decision of its kind in the Nation, the ruling may form the basis of a test case to be carried to higher courts. "It was not the legislative intent of Congress to allow interest to be collected by the P. D. I. C. upon bank deposits insured by that agency," Chancellor Ward said, dismissing for want of equity the F. D. I. C.'s suit for $3,685.64 inter est on approximately $170,000 in in sured deposits in the Merchants & Farmers Bank of Atkins, Ark. The Atkins bank closed in March, 1939, and the F. D. I. C. paid off the depositors. Liquidators subse quently repaid the F. D. I. C. in full, the final settlement being made last January. The P. D. I. C. sought interest at β per cent on the full amount of the insured deposits from the date the bank closed until the final settlement. 0 The suit was argued before Chan cellor Ward last March, taken un der advisement and the ruling an nounced today. Family of 6 Generations PRESTON, Md.. Aug. 2 (.A*).—A colored family of six generations has been discovered at Jonestown, by Dr. Walter B. Johnson, Caroline County deputy health officer. He said .two of the women became mothers at 14, one at 16 and one at 26. Churchill's Narrow Escape In Bristol Raid Disclosed Prime Minister Next Day Demanded Bath And Got One—In Gravel and Water By SHEILAH GRAHAM. (Special Correspondent of The 8tar and North American Newspaper Alliance.) BRISTOL, England, Aug. 2 — Prime Minister Churchill was in the Grand Hotel here at the height of the worst raid on Bristol. While he was in the hotel a bomb fell and demolished a part of it. I learned this hitherto unreported fact on my arrival in blitzed Bristol. This was the raid during which a great number of people were killed in one short street and business and shopping buildings were reduced to rubble of twisted iron girders. Mr. Churchill sat through the raid with his usual imperturbability, smoking his usual cigar. But in the morning when it was all over he said to the hotel manager: "I would like a bath, please." Water Svsemt Damaged. If he had asked for a flying car pet the manager could not have been more distracted. There was no water in the hotel except on the 1 ground floor and basement. Bombs had damaged the system supplying i water upstairs. Mr. Churchill was upstairs. But if the Prime Minister j wanted a bath, the Prime Minister ' must have a bath. So as they say in 9 movies out of 10, "Boil some hot water," com manded the manager to his minions. I Every spare Jug in the hotel was requisitioned. Ditto every able bodied man. And men and jugs, and as an afterthought a milk can, continued an unending pro- ! cession to the Prime Minister's tub until there was enough water for immersion. And then the manager made a hideous discovery. Not only was the tub full of water, but there also was much gravel as a result of the bombs. Gravel and Water Bath. "We must use filtered water," said the manager. "No," said the Prime Minister, who is a very busy man, "it Is now or never." And he took his bath in gravel and water. A general cleaning-up process Is now going on in Bristol. Démoli- j tion and salvage squads are at work on ruined shop», offices and houses, under which the victims of the Easter holocaust were buried. Un der one pile of bricks and dust they found a woman and her baby. She was feeding It when death struck them both. No one can say for certain exactly how many were killed during the raids, but there were a lot of funerals, the waitress at my hotel tells me. She is mar ried and has a husband in the home guard and a daughter, Enid, 2'/3 years old. "We take shelter under the stair- | case of our house." she tells me, ι "and we got a bit annoyed when a bomb fell on our house. We heard it touch the roof and my husband shouted 'Look out!' I flung myself over the baby so she wouldn't get hurt. She cried and said, "I don't like bombs. Mummie." Shelter Used as Dining Table. For people who prefer to stay at home during air raids, Bristol au thorities are giving free to those with incomes less than £350 a new Morrison shelter which can be used as a dining table as well. It has a steel top over which goes a table cloth with steel legs and steel mesh net sides. There is enough room underneath for two mattresses. The waitress is hoping to get her daughter evacuated before the long dark nights and the expected re newal of the air blitz raids. She put in her application four months ago, but there is a Icing waiting list and it is more difficult to evacuate babies than children of school age | who don't require a nurse. I stopped for lunch at a pub be tween Bristol and Weston. The landlord insisted there was no short age of beer, but that, contrary to what Lady Astor told me a few days ago, more people were drinking it. Run Out of Beer Early. Most of the public houses around Bristol are closed until evening. Then their supply usually runs dry at 9 o'clock, an hour before closing time. Several pubs save their beer during the week and open on Satur day and Sunday for a short but glorious thirst quenching. The landlord of one public house showed me a small room where during air raids he puts up 50-odd people, who walk, cycle or drive from Bristol. In Bristol there are huge cigarette and chocolate factories, but the peo ple of Bristol don't see much of them unless, as a Bristol girl tells me, "you have a brother, father or hus band in the forces. They get ciga rettes and chocolates and it's right that they should, but lots of the men don't like chocolate and they send it to their girls, who give it to their families." Vigilantes to Speed Freight Car Movements By the Associated Press. CHICAGO, Aug. 2—A growing tightness of railroad freight cars prompted the Midwest Shippers' Ad visory Board today to organize more than 100 vigilance committees to expedite car movements. The committees, scattered in 90 rail centers over five States, will each be composed of 10 men rep resenting the railroads, shippers and freight receivers. They will spot un necessary delays, investigate the j causes and recommend faster methods. The Midwest territory includes Illinois, Iowa, Wisconsin, upper Michigan and Western Indiana. Restoration of capital punish ment fer major civil crimes is being advocated in Mexico. :irst of 6 Small Arms ^ants Ready to Produce iy the Associated Press. KANSAS CITY, Aug. 2.—The government's $10,000,000 Lake City slant today became the first of six small arms ammunition factories, jnder construction In the Nation, ,o get into preliminary production. Brass cartridge cases were pro luced In a trial run. More than 200 of the 2,500 ma chines to be installed were in their places today and ready for produc tion. However, it will be several weeks before assembly line proced ure gets into full swing. First cartridge cases were to go to Brig. Gen. L. H. Campbell of the Ordnance Department at Washing ton for inspection. Others were to oe sent to War Department officials and to heads of the Remington Arms Co., which will operate the plant for the Government. 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