The News and Observer from Raleigh, North Carolina • 1

THE WEATHER TODAY Sunday partly cloudy with mild temperatures. FROZEN North Carolina: The News and Observer 84,586 Yesterday's Paid Circulation VOL. CLVIII. NO. 23.

FORTY PAGES TODAY RALEIGH, N. SUNDAY MORNING, JANUARY 23, 1944. FORTY PAGES TODAY PRICE: DAILY SUNDAY FIVE TEN CENTS ALLIED LANDING NEAR ROME OUTFLANKS Democrats Call On Roosevelt To Continue World Leadership Committee In Effect Urges President to Seek Fourth Term; Names Hannegan As Chairman 1 to Succeed Walker and Selects Chicago As Convention City Washington, Jan. 22. -(P)- The Democratic National Committee, turning its meeting virtually into fourth term rally, called on President Roosevelt today to "continue great world humanitarian leader" in both war and peace.

After selecting Chicago as the national convention and installing youthful Robert E. Hannegan, hailed as a "Second Jim as new national chairman, the committee members roared approval of a resolution declaring the "liberal spirit idealism" of Franklin D. Roosevelt "must be imprinted in the peace." "We, assembled here, realizing his world leadership and knowing that our Allies are praying with us for the continuation of his in war and peace," serveselution concluded, "do now earnestly solicit him to continue as the great world humanitarian leader." Plea to President. Thus, resolution stopped short of -calling for a fourth term in so many words, but there was no mistaking that the committee members regarded it as a plea for the President to run again. Chicago convention without making any specific offer as to money, and over a surprise bid from Detroit.

Mayor Edward Kelly of simply on behalf Chicago, non-partisan citizens' tee that Chicago would penses of the convention. Republicans, who will meet in Chicago in June, were guaranteed $75,000. It is understood, however, that civic leaders have given assurthat more money will be forthance coming if this does not cover convention costs. The Democratic committee left the date of the convention up to Hannegan, 40-year-old Missouri Irishman who succeeds Postmaster General Frank C. Walker as National chairman.

He is expected to select a date in July. Party Dinner. With their business out way, the committee members settled down tonight, to dinner, eat a a traditional $100-a-plate money- Jackraising feast, and to hear addresses by Vice-President Wallace and House Speaker Rayburn of Texas, both potential running mates for the President, provided he agrees to a term nomination. The committee meeting moved along in complete harmony until all the scheduled business was concluded. Then, former Governor E.

D. Rivers, national committeeman for Georgia, provoked a heated discussion by proposing that the committee instruct a group, yet to be set by Chairman Hannegan, to recup ommend restoration of the twothirds nominating rule for future national conventions after. the 1944 convention. His move was defeated, but he promised to carry the fight to the convention. Rivers said it was the greatest mistake the party ever made when it abolished the two-thirds rule at the 1936 convention.

He said there is a "great difference in enthusiastic cooperation and indifferent acquiescence" in convention actions and that if the rule requiring a twothirds vote 1 to nominate is restored, the party will be sure of nominating men the people want. Wants Farley. He urged, too, former National Chairman James A. Farley, who resigned in a break with the President over the third term issue, be brought back into party councils. "No other Democrat, except the President," Rivers said, "has such a place in the hearts of the rank and file of party workers." Rivers went on to say that President Roosevelt will receive the unanimous endorsement of the next conventoin if he is a candidate.

But he added that any two men nominated and supported by all members of the party, including Farley, can defeat any Republican ticket. Senator Green, national committeeman for Rhode Island, who headed See DEMOCRACIES, Page Eight. Few Citizens New York, Jan. Henry B. Hazard, research and educational head of the Justice Department Immigration and Naturalization Service, said tohe naturalized 3,678 persons in a recent trip to war fronts and Army posts and declared that the new citizens be.

"just as loyal as born in the United States." Describing his 11-month journey, which ended last month, Hazard told a meeting of the National Institute of Immigrant Welfare he naturalized, among others, 1,002 Canadians, 437 Germans, 433 Italians, 369 Mexicans, 227 Poles, and 125 Russians in trips that took him to Italy, Sicily, North Africa, Britain, the Middle East, and Iceland. Eighteen were, service Women. He said the usual requirements of residence, first papers, fees and photographs were dispensed the case of overseas service men, their cases calling for speed "because the men are moving all the time." Discharge Pay Washington, Jan. and House conferees legislation to provide mustering-out pay for war veterans said tonight that they probably will agree Monday on the $100- to $300 schedule approved by the House. First meeting of the ees was held Friday after the House amended a Senate bill providing discharge pay ranging from $200 for less than 12 months' domestic service to $500 for 18 or more months' overseas service.

The House version would provide $100 for less than 60 days and $300 for 60 days or more. Chairman Andrew May of the House military affairs committee, said the House bill, concerned with musteringout pay only, would be followed by other legislation for adjusted compensation. Conferees said that Sen. Styles Bridges one of the authors of the measure, would attend the Monday conference and that he probably would try to save his schedule. They predicted, however the conferees, would adopt the House added ity of making it a straight $300 that there was a slight possibilfor all veterans.

URUGUAY SPURNS BOLIVIAN REGIME United States and Other Nations Likely to Follow Example of Uruguay Montevideo, Jan. 22. The Uruguayan government announced today that it will not recognize the new revolutionary government of Bolivia as long as "present conditions" continue. Uruguay thus became the first American government announce a decision definitely not to recognize the La Paz government at present. Argentina is the only American nation that has accorded recognition to the Bolivian regime.

A curt foreign office announcement said that the "president of the republic, together with the minister of foreign affairs, has decided not to proceed with the establishment of diplomatic relations with the de facto government of Bolivia as long as present conditions continue." The exact reason for the decision was not revealed, although it pretation with the other American sumably was reached, after consulnations regarding the antecedents of the Bolivian junta. Foreign Minister Jose Serrato refused to expand on the meaning of the phrase "present Circles close to the foreign office, however, said that such "conditions" may "continue indefinitely." CUBA ALSO DECLINES TO RECOGNIZE BOLIVIA Havana, Jan. 22. (AP) Cuban Minister of State Bmeterio Santovenia announced today that his government had decided not to recognize the new revolutionary government of Bolivia. SIMILAR ACTION SEEN BY OTHER AMERICAS Washington, Jan.

22. Uruguay's refusal to recognize the new revolutionary Bolivian government today foreshadowed similar action by the United States and 17 other Latin American nations. Argentina is the only nation in the world that has recognized the Bolivian regime. Uruguay, Argentina's neighbor and the smallest nation in South America, was the first to refuse to do so. All the Western Hemisphere na-except Argentina and Bolivia See URUGUAY, Page Eight.

Fifth Army Ends Deadlock On Stubborn Italian Front What Democrats Did Washington, Jan. actions of the Democratic National Committee meeting today: Adopted resolution which, calling on President Roosevelt to "continue as the great world humanitarian leader" in war and peace, gave a powerful boost to the fourth term movement within the party. Selected Chicago for national convention, leaving the date to be set later by national officers. Elected Robert E. Hannegan, 40-year-old Missourian, National Chairman by acclamation after accepting resignation of Postmaster General Frank C.

Walker. Called on Congress to enact a soldier voting law providing for federal ballot, but leaving to the states the validity of each individual ballot. Approved a delegate apportionment providing for 1,176 votes in the convention. Heard Edwin W. Pauley, treasurer, call for a $3,000,000 campaign fund.

Turned down a plea from former Governor E. D. Rivers of Georgia that committee be instructed to prepare a new rule restoring the former requirement of a two-thirds majority convention vote for nomination of President and Vice-President. Soldier Vote Bill Faces Prospect of New Muddle FOUR BANKERS GET TERMS IN PRISON Convictions Are Returned in $232,000 Bank of Black Mountain Fraud Case Asheville, Jan. (P)--Four of the eight defendants who were indicted following the closing of the Bank of Black Mountain last March were sentenced in U.

S. District Court today to terms in federal prison. W. H. Powlas, former cashier of the bank was given sentences totaling 10 years; James B.

Dotson, assistant cashier, who entered a plea of nolo contendere and took the stand as a government witness, was given four years; Woodrow P. Miles, former bookkeeper, was given four years; Lawrence J. Pace, promoter of the Saluda River Lumber Company, was given two years. Robert E. Free, former bookkeeper was given a tour, year sentence, suspended for years on condition that he make certain restitution.

One Man Acquitted. A jury, which received the "conspiracy case" about 4 o'clock Friday afternoon, deliberated until morning before reporting, that Powlas, and Miles found guilty; that no agreement could be reached as to W. C. Honeycutt, Lawrence J. Pace and William Rogers; and that Valdemar Borchgrevin been found not guilty.

Dotson and Free had tendered please of nolo contendere in this case and were not on trial. Miles, was given a total of four years. On count No. 1 of the misapplication indictment, Miles was sentenced to two years, judgment being suspended on counts Nos. 2 and 3 in misapplication.

In the conspiracy indictment, the jury having brought in a verdict of guilty today with recommendation for mercy, Miles sentenced to two years. Pace, was sentenced to two years in federal prison on count No. 4 of the misapplication indictment, judgments suspended Nos. 1, 2 and 3 in the second misapplication case. $232,000 Involved.

The defendants were charged with misapplicationo of funds, aiding and abetting in the misapplication of funds and conspiracy to misapply funds of the Bank of Black Moun- tain in the sum of approximately $232,000. The longest total sentence-10 years was given Powlas. He was sentenced to four years on count No. 1 in the misapplication indictment and to four more years on count No. 4 of this indictment.

Judgments were suspended on counts Nos. 2 and 3 in the misapplication indictment and he was sentenced to 2 years, following a jury See BANKERS, Page Eight. Stimson Warns Against Mail Congestion; Tax Bill Veto Unlikely Washington, Jan. second attempt to get a federal servicemen's ballot bill through Congress gathered momentum today aimed increasing snarl prospects over the of a controversal parliasubject. Briefly, this is the situation: The House expects to take up, probably Tuesday, an amended version of a approved bill which recommends that the States revise their voting machinery to permit absentee ballotting by members of the armed forces.

Simultaneously, some Senators commenced enlisting support for another measure- a "home rule" compromise- approved already, 12 to 2, by the elections committee. Senate passage of this measure coupled with House passage of the earlier Senate-approved bill would cause a legislative tangle that might well be next to impossible for a House-Senate conference committee to unravel, some lawmakers opened. Stimson Warning. Into this picture, Secretary of War Stimson tossed another potential complication today with a warning that overseas mail to the servicemen and women might be delayed seriously it the armed forces are required to give travel priority to state balloting material. The Secretary's comment was made in a letter to Rep.

Worley (D-Tex). The Texan, chairman of the House elections committee, said, nevertheless, that he would offer his bill for a uniform federal ballot, with permissive use of state ballots, as an amendment to the state ballot bill. Under the New Senate bill, service men and women would be given a short ballot on which to mark their choices for President, Vice-President and members of Congress in the November election, but state and local election officials would have the final authority to decide which ballots are valid and countable. Would Allay Fears. The latter provision was intended allay fears of some Southern Democratic Senators and Northern Republicans that a federal ballot commission might try to usurp state election control.

Senator McClellan (D-Ark), cOauthor of the Eastland-McClellan "states right" substitute which the Senate passed several weeks ago, said he wanted to make no positive commitment, but thought the new bill revision of the Green-Lucas measure- -would meet the objections of the states' advocates. Senators wrights opposed previous federal ballot legislation, but said they expected the compromise bill, included Senators TydSee CONGRESS, Page Eight, RATION DEADLINES. Foods: GHJ. Feb. 20.

Meats: RSTU, Jan. 29. Sugar: "Sugar" 30, Mar. 31. Gasoline: No.

8-A coupons, Feb. 8. Commercial Canners Ask For Ration-Free Market Washington, Jan. ing that sales of canned vegetables have fallen off so acutely because housewives' pantry shelves are so well stocked with the home-canned variety, commercial canners are putting considerable pressure upon the Office of Price Administration to take vegetables off the ration list or at least cut point values sharply. The nation's housewives, a representative of canners said today, did such an outstanding job of homecanning last year that much of the commercial pack is gathering dust on the shelves of stores and warehouses.

Before the war, he figured, only about 25 or 30 of every housewives engaged in home-canning. He estimated that at present there are well-stocked pantry shelves of home-canned goods in 80 of every 100 homes. canners Arguing have from taken this their standpoint, case the to OPA and report a "sympathetic The agency's rationing officials Trails In Sub-Stratosphere Like monsters from another planet, Flying Fortresses of the United States Army Eighth Air Force wing their way through the sub-stratosphere, leaving their vapor trails behind them. Trails curving upward were made by fighter escort planes accompanying the bombers on the raid. (AAF photo.) Beaten Germans Retreat From Leningrad Defenses RAF NIGHT FLEET HITS MAGDEBURG Another Big Nazi City Devastated as Allied Air Attacks Grow in Fury London, Jan.

(P)- The central German industrial city Magdeburg, twice destroyed by fire centuries ago, once more was ablaze tonight after a terrific hammering by the Royal Air Force which brought to a climax a highty 26-hour aerial battle involving perhaps 3,000 Allied planes. Large sections of the city, a rail junction harboring a wide variety of war industries, were left in flames by a deluge than 2.000 long tons of explosives and incendiaries dropped with saturating effect in 34 minutes by planes which flew more than 500 miles to reach their targets. The assault brought to at least 300 tons the total weight of bombs hurled on Europe by Allied air armadas in two nights and a day, An RAF assault on Berlin Thursday night and an American heavy bomber pounding of the "Rocket Gun Coast" of France Friday were the other principal raids. Other Targets. the RAF was pulverizing Magdeburg, capital of the Prussian Saxony lying on the left bank of the Elbe 83 miles southwest of Berlin, smaller fleets four-engined Lancaster and plywood Mosquitoes again visited Berlin, and the Germans unwrapped See AIR WAR.

Page Two. UNDER THE DOME J. LACEY REYNOLDS. that he didn't hurt his chances Washington, Jan. Broughton was the hit of the evening Monday night when Southern Governors and members of Congress met to dine on the freightrate issue.

A Gallup poll of the 100 Southern Congressmen composing probably would have shown dience, North Carolinian headed in popular esteem the list of the eight Southern Governors present. the party broke up and each of the governors there had spoken his little piece, Broughton was the topic of conversation at every table. COMMENT-Each state delegation had its own table, and at almost any of them you could hear someone saying: "That fellow Broughton from North Carolina looks mighty good to me, He impressed me more than any of the Governors." What this highly sensitized litical audience liked was the statesmanlike tenor of his words; dignity with which he said and the impression he gave that he still had lots of power in reserve if needed. UNIQUE--The party was unique in that SO many governors were gathered together here at one time. It is not that Washington is overawed by governors.

They are inured to dignitaries. But here for the first time in this political center they were on the same program, and it was possible to evaluate the ability of each man as he spoke. Before the dinner, it was rumored around that Broughton was being eyed for making the keynote speech at the Democratic national convention this summer. If any such thing is in the wind, you can rest assured Germans Surprised So Completely That Thousands of American and British Troops Just Walk Ashore: Air Forces Disrupt Nazi Communications to Block Reinforcement Rush Russians Closing in on Main Rail Center to Moscow and Baltic States London, Sunday, Jan. Russians, pursuing the beaten German besiegers of Leningrad, have closed to within six miles of the great rail hub of Krasnogvardeisk controlling the trunk railways to Estonia and Poland, while other forces to the east have cleared a second Leningrad-Moscow rail, route and are advancing to free third.

The Moscow midnight bulletin, recorded by the Soviet monitor, said 70 towns and hamlets were occupied and over 2,500 Germans were killed in the Leningrad area. In one sector a group of Germans fled in panic when a Soviet, advance surprised them, and sectors many prisoners and much booty were captured. Many Germans laid down their arms and surrendered in the forests west of Novgorod, less than 100 miles south of Leningrad, as the Russians cleaned out the last pockets of surrounded Nazis. The railway station of Tatino, 20 miles north of Novgorod, and two other unnamed stawere captured after a fierce battle, the communique said. White Russia.

Gains also were made in Southern White Russia where seven communities were taken as the forces of Gen. Konstantine Rokossovsky reached out from captured Kalinkovichi through the Pripet Marshes. The Leningrad fighting saw the day's greatest advances as Gen Leonid A. Govorov's forces captured Komolovo and Zaitsevo, both six miles northwest of Krasnogvardeisk. In the north, after capturing Mga Friday, the Russians opened the railway from Leningrad to Moscow Mga, Volkhov, Vologda.

and Yaroslavl. By yesterday's gains, the Russians cleared the Leningradto- Ivinishche, line which via is Mga, shorter. Kurishi and However, the Russians were line through Kolpino-Tosno Kadriving for the tracked main linin, the most efficient route beSee RUSSIA, Page Two. AUSSIES LAUNCH NEW OFFENSIVE Jungle Fighters Drive Toward Bogadjim; More Jap Ships and Barges Sunk Advanced Allied Headquarters, New Guinea, Sunday, Jan. 23.

Australian jungle-fighters in the Ramu valley of northern New Guinea have opened a drive up the Faria River toward the Japanese coastal base of Bogadjim, only 20 miles to the north, a communique announced today. The Australians began pushing forward after four weeks of comparative inactivity after capturing Shaggy Ridge advancing through the rugged, mountainous area following four days of heavy bombings of Japanese positions in the valley and in the Bogadjim and Madang Gen. Douglas MacArthur's communique reported new attack on New Britain, with escorted medium Vunakanau airdrome me near Rabaul, bombers from Solomons bases shooting down 15 planes and destroying three on the ground. Six American planes were lost in the raid. Japanese shipping routes in the island battle area continued under attack as bombers sank a tanker near the Schouten Islands off New Guinea's north coast, and destroyed a freighter off the Admiralty Islands.

Eight barges were destroyed in strafing attacks over New Britain, the communique reported. New Offensive. The drive, which followed yesterday's announcement by a headquarters spokesman that "possible offensive with limited objectives" was underway, was supported by fighters which divebombed enemy positions. Other medium bombers and fightSee PACIFIC, Page Two. President Creates Board To Rescue War Refugees Washington, Jan.

dent Roosevelt created a War Refugee Board tonight and directed it to attempt the rescue of "the victims of enemy oppression who are in imminent of death." The board consists of Secretaries of State, Treasury and War who are empowered to appoint a full-time executive director to administer the refugee assistance program. A White House statement said the President's action was designed to bring about immediate rescue from the Nazis of "as many as possible of the persecuted minorities of Euro religious or political--all civilian victims of The White House said that Mr. Roosevelt stressed that it was urgent for action to be taken at once "to forestall the plan of the Nazis to exterminate all the Jews and other persecuted minorities in Europe." Decision as to how the goal could be accomplished was left to the board. It could, perhaps, make use of the International Red Cross, neutral diplomatic missions, or even underground movements occupied lands. In his executive order setting up the board, Mr.

Roosevelt declared it Allied Headquarters, Algiers, Jan. 22. (P) American and British troops by the thousands landed practically without opposition on the beaches south of Rome and moved inland today in a daring, successful seaborne blow that completely surprised the Germans and deeply outflanked the powerful and "Adolf Hitler" detense lines. The Germans placed the scene 16 to 28 miles south of Rome on a 30- mile flat coast between the Tiber River mouth and the resort town of Nettuno, and they admitted loss of Nettuno harbor. Allied headquarters merely said it was south of Rome, but officially described the assault as phase in our objective to take Rome." The landings caught the Nazis by "complete surprise" and "constitute a grave menace" to enemy communications, headquarters said.

Troops who splashed ashore met "slight" resistance and are making "satisfactory progress" in their drive inland, it was announced hours after the pre-dawn onslaught. Broke Deadlock, Admittedly a hazardous gamble, the great amphibious stroke that ended the Italian deadlock was timed perfectly with a new general Fifth Army offensive on the land front which fully occupied the stubborn German Tenth Army. (The NBC correspondent in Naples reported that the Germans facing the old front in the Liri valley "have started to break, and emy vehicles now are reported moving northward.) Kenneth Dixon, Associated Press correspondent who flew over the beaches south of Rome, said German anti-aircraft fire at a road junction either" was so slight that the Nazis were dispersing their weapons or retreating. Whitehead. Associated Press correspondent who accompanied the amphibious force as representative of the combined American press, wrote that the 2:00 a.

m. landing "was so easily and simply done and caught the Germans so completely by surprise that as I write this dispatch six hours after the landing, American troops litare standing with mouths, utter and amazement." shaking their "I still don't believe it," a Fifth Army infantryman, veteran of other amphibious operations, told him. Air Activity Nil. While landing craft swarmed onto the beaches of Rome's one-time bathing resorts, Allied airmen -said German air activity was practically non-existent. The battlewise British and American troops lost no time in taking advantage of the situation by smashing straight inland toward the Appian Way and the roads leading to Rome.

Severing of these routes, 12 and 22 miles from the coast, would trap the bulk of the German Tenth Army, 13 divisions strong. and leave the path to Rome itself virtually undefended. There appeared to be little chance that the enemy could bring other divisions southward from the Po Valley to protect Rome over bombeverted, roads violent and German railways. counter- Howattack was, expected to develop in a desperate effort to stave off what might become a Nazi catastrophe. To prevent the Nazis from rushing reinforcements southward, Allied heavy bombers today attacked railroad yards at Arezzo, Peruggia, Terni and Pontevorvo.

The Arst See ITALY, Page Two. clined to comment on the possibility of a reduction of point values, pointing out that new values for February will be announced next week and that any intimation of changes planned, whether downward or uprevisions, would affect sales in the interim. They say emphatically, however, that OPA's figures on inventories of is "no possibility" that they canned vegetables indicate that athere removed from the ration list "for some The agency acknowledged that it has received numerous appeals from canners for point-free vegetables or lower point values, but officials said they were unconvinced that the current supply warrants any drastic action. "We understand," a spokesman said "that the National Canners' Association is conducting a survey to determine the amount of homecanned goods housewives have. We would like know just what the situation is.

We'll give the figures careful study." Monday night. REYNOLDS- Stories like this are responsible for persistent rumor that Senator Robert R. Reynolds will run for reelection after all: Reynolds breezed into a closed Military Affairs Committee meeting the other morning, a little late. to his to colleagues, explaining that As the story goes, he apologized his office was "full of constituents from North Carolina." "Why are you still bothering with them?" one of the committeemen inquired. "You aren't going to run for reelection." "I haven't yet decided," Reynolds rejoined.

ANALYSIS that story on got around among North Carolinians on the House side, one of them who derived a quiet pleasure trying to psychoanalyze "Our Bob." evaluated it this way: This Congressman says Bob has been slipping out of the limelight since he announced he wouldn't seek reelection. Bob is like a moth of many colors--he likes the bright lights, and the gathering twilight is not too pleasing. So, in order to cling on AS long as possible, according to the Congressman, Bob is passing out hints like the above that he may enter the race despite his statement that he would not. However. the consensus here is that Bob couldn't make the grade even if he tried, and that he won't try regardless of the morale-building hints to the contrary that he occasionally drops.

MAD--Rep. Alfred L. Bulwinkle of the 11th North Carolina district is hopping mad at Republicans on See DOME, Page Two, War in Brief to all measures within its beakthe policy of this government power to rescue the victims of enemy oppression who are in imminent danger of death and otherwise to afford such victims all possible relief and assistance consistent with the successful prosecution of the war." Mr. Roosevelt stated, the White House said, that he expected to get the cooperation of all the United Nations and other foreign governments in the program. The State Department was directed to appoint special attaches with diplomatic status, on recommendation of the board, to be stationed at spots where help might be rendered to war refugees.

The board will be charged not only with developing plans for rescue of oppressed peoples, but also with working out measures for their transportation, maintenance and relief and for setting up "havens of temporary refuge." The executive order did not specify what government funds would be used for operations of the refugee agency, but Mr. Roosevelt empowered the board and the State, Treasury and War departments to accept contributions, or service, of any private persons or organizations, state agencies, or agencies of foreign governments. Catching the Germans flatfooted, General Clark's Americans and British yesterday landed almost without opposition on the beaches just south of Rome to outflank the stubborn German Tenth Army that has been delaying the Allied drive toward Rome. The landing operations were astonishingly suecessful and the troops now are pushing inland rapidly in an effort to trap the Germans to the south. Victorious Russian troops, having lifted the long siege of Leningrad, now are closing in upon the main railway center linking Moscow and Baltic states while gaining also in other sectors.

Australian jungle troops in New Guinea start drive toward Bogadjim as Allied air raiders hit more Jap ships and barges and down more enemy pianes in raids on Rabaul and other targets. Royal Air Force night bomb. ers devastate German industrial city of Magdeburg as Allied aerial offensive against Germany continues with rising fury. President Roosevelt creates board to aid in rescuing war refugees in Axis-controlled territory, especially Europe. recognize Uruguay new and Cuba Bolivian refuse regime.

to United States and other cans expected to follow example..