Evening Star Newspaper, January 7, 1942, Page 1

Weather Forecast Fair today, light snow late tonight; lowest tem- perature from 5 to 10 d today—Highest, 25, at 4 p. night. From the United. States Weatner Bureau Report. Full Details on Closina N. Y. Markets—Sales, Page 18. egrees. Temperatures m.; lowest, 19, at mid- Pase A-2 90th YEAR. No. 35,.680., REDS New Tax Bil ToBe Speeded, leadersSay 16-Billion Total i Expected Under | President’s Plan ; (Earlier Story on Page A-1) By the Associated Press. Members of Congress made it plain this afternoon they were ready to shoulder the responsi- bility of voting the world’s big- gest budget—the $56,000,000,000 outlay proposed for the next year by President Roosevelt—and to try to raise $9,000,000,000 in new taxes to help finance it. War Department expenses under the budget are placed at $18,618.- 615.000; the Navy Department. $6.- 249.359, and cost of defense activities of other agencies at $10.318.212,000. Another $17.000.000.000 was added for supplemental items The present tax structure. the President said. should bring in $16,- 487.200,000 in the 1943 fiscal year, an increase of about $4,500.000.000 over | 1942, due to increased business. An- other $7,000.000.000 would be raised through intensive cuitivation of the field of progressive taxation and of | anti-inflationary taxes. Increase in social security taxes would bring in $2,000.000,000 more Plan Prompt Action. Chairman Glass of the Senate' Appropriations Committee declared that the appropriations would be made speedily and others said stiff increases in taxes would be voted. “We will make every appropriation the President asks for.” Senator Glass said. “Congress will do any- thing that is necessary to smash the Axis.” Senator Norris. independent, of Nebraska called the proposed ex- penditures “staggering.” but added, “I guess it must be done.” Senator Wiley, Republican, of Wisconsin said he was surprised that the President’s request for $9.000.- 000.000 in new taxes was not larger. “I'm afraid this is only the be- ginning so far as taxes is concerned,” Senator Wiley said. Chairman Cannon said he would ask the House Appropriations Com- mittee to approve quickly a fund of several billions of dollars for part of the vast airplane program Presi- dent Roosevelt requested. i Mr. Cannon said the $56,000,000,000 budget would “meet with the entire | approval of the American people.” ‘Other Comment at Capitol. Other comment: Representative McCormack of Massachusetts. House Democratic | lead: The young men at the front are making the greatest sacrifice of all and the unity that the country has shown means that the people will make any sacrifice necessary. Representative Disney. Democrat. of Oklahoma—"The recommenda-" tions for $9.000.000,000 in new taxes are pretty staggering. We won't know what it will mean specifically until we get down to studying cases.” SeMator Barkley. Senate Demo- cratic leader—“The President’s budget message graphically portrays the tremendous financial obligation which the American people must undergo for the year 1942. This obligation invoives heavier taxes and heavier. borrowing. By either or any method we must all bear our share of the necessary burden. The American people will do this.” Chairman Doughton of the House Ways and Means Committee—"We're going to have to raise all the taxes we can, but it remains to be seen whether we can or can not raise all the President requested. No one can tel]l that.” Count Baillet-Latour Dies; Was Qlympic Chief BY the Associated Press. BERLIN, Jan. 7 (Official broad- cast)—Count Henry de Baillet-| Latour, president of the Internation- al Olympic Committee. died today | at Brussels, his home. He was 67. Count Baillet-Latour had been | closely connected with the Olympic| games since 1903, when he became | head of the Belgian Olympic Com- | mittee. He had expressed confidence that | the games would be held again at| the close of the war, which had| forced their suspension. War Overtakes U. S. Liner on Maiden Yoyage By the Associated Press. HOBOKEN, N. J, Jan. T—A| strange maiden voyage ended today | when an American liner arrived | from a round-the-world trip during | which she was overtaken by the| outbreak of hostilities and zig- zagged her way home 15 days late. ‘The master said there were no untoward incidents. ! OPE Japanese Painted Greén May Have Been Camouflaged By the Associated Press. DES MOINES, Iowa, Jan. 7.— An elderly Japanese brought to Queen’s Hospital, Honolulu, after the December 7 attack was painted green from head to foot, Miss Elsie Nutt, 24, Des Moines nurse, related today. Hospital attendants guessed he had camouflaged himself so he could hide in the foliage and aid attacking Japs, said Miss Nutt, just returned home. Prosecution Says Hill Reprinted Half Million Propoganda Speeches Fish’s Secretary Accused Of Link With Vast German Network Within less than a year, George Hill, second secretary to Repre- sentative Fish of New York, ordered more than a half million “propa- ganda speeches” reprinted by the Government Printing Office and dis- tributed, Special Assistant to the At- @h | | excessive war profits by conferring | | | torney General William Power Ma- | loney said in his opening argument this afternoon at the trial of Mr. Hill in District Court on two charges of perjury. Mr. Maloney attempted to link Mr. Hill with a vast propaganda machine | which he implied was directed by “Goebbels and Hitler.” He said that many of the speeches whose re- printing Mr. Hill allegedly arranged were made in the Senate by the late Senator Lundeen, who was killed in a vlane crash. He said that a close confidant of | 4 WASHINGTON, D. ¢ WITH SUNDAY MORNING EDITION (., WEDNESDAY, JANUARY 7, Senate Opens Debate on Bill to Control Prices Administrator Can Do More Than Any Tax Plan, Brown Says (Earlier Story on Page A-6.) By J. A. O'LEARY. Debate on the administration's price control bill was opened in the Senate today with the declaration by Senator Brown, Democrat, of Michigan, that it has become neces- to avert a “tremendous rise in prices.” Congress can do more to prevent sary price control authority on a “hard- boiled, hard-hitting, unafraid ad- ministrator” than by any tax bill it could write, Senator Brown said. He pointed out that Price Admin- istrator Leon Henderson is operat- ing now under the limited authority of an executive order, and. while the general price structure has been going up, the commodities Mr. Hen- derson has sought to control thus far | have remained at a fairly stable| level. Drive by Farm Bloc. As spokesman for the Banking! committee, which placed broad au- | thority in the price administrator by eliminating the Board of Review in the House bill, Senator Brown is facing a determined drive by farm bloc Senators to transfer farm price control from Mr. Henderson to Sec- retary of Agriculture Wickard. At the outset of his remarks, Sen- ator Brown urged a single authority the Senator was George Sylvester | to supervise the price structure. Viereck—registered with the State “Price control is necessaty in the Department as a German lgem,—-| present situation,” Senator Brown | who he claimed was writing the | said, “because the law of supply and speeches Senator Lundeen delivered. | demand does not operate to main- Reprinted by Thousands. These were reprinted by hundreds | of thousands, distributed by Mr. Hill | breaks down because of the enor- and franked by Senator Lundeen, mous demand for war materials, the Government prosecutor said. | tain a fair equilibrium of prices. | “The law of supply and demand and we have a situation where the Mr. Hill is charged with falsely supply is insufficient if ordinary telling the grand jury investigating | civilian consumption is not cur- Nazi activfties here that he did not | tailed. know Viereck, and Mr. Maloney as- serted he would produce “the high priest himself,” Viereck, and secre- taries of Senator Lundeen to testify to the contrary. The second charge against Mr. Fish's secretary is that he commit- ted perjury when he said he did not order a number of mail bags brought from the office of Prescott Dennett, secretary of isolationist committees | allegedly subsidized by Viereck, to be | taken to the storeroom of Repre- | sentative Fish. Mr. Maloney said he would produce four House Office Building employes to testify that Mr. Hill did give such orders. Defense Attorney John J. O'Con- nor withheld his opening statement while the Government proceeded with testimony. Both Representative Fish and Vie- reck will be among 15 probable Gov- ernment witnesses in the trial of Hill. Mr. Maloney revealed this in- formation in questioning prospec- tive jurors, Attorneys Clash. One sharp clash developed when Defense Attorney O'Connor asked jurors whether they were to fear for their Government jobs because the case is entitled States vs. George Hill" “This is America—not Hitler Ger- many!” Mr. Maloney protested. Curb on Enormous Profits. Senator Brown told his colleagues that the measure was also needed “so that enormous profits will not be obtained as they were obtained in the last war.” “If you can give an effective, over- all control of prices to a hard-boiled, hard-hitting, unafraid price admin- istrator,” he continued, “we can do more than by any tax bill we could write in preventing exorbitant profits out of war.” Senator Brown said that the chief sufferer from rising prices would be the Government, “which is the greatest consumer of all.” Two WO;;\V Mis‘s_ing After Wisconsin Fire By the Associated Press. STEVENS POINT, Wis., Jan. 7.— | Two elderly women were reported missing today in a fire which de- | stroyed two downtown store build- | | ings and caused injury to three fire- | degree below zero weather. “the United | men who fought the flames in 25- The women, Mrs. Ellen Heffron | and Miss Elizabeth Moll, both about “The Government is not going to| force anybod: overruled, however, Dickinson Letts, In picking a jury His objection was by Justice F. the defense pire, whether any of their relatives had been persecuted by Hitler and whether they ever belonged to the T (See HILL, Page 2-X,) Naval Officer and Woman Held for Jury in Death A naval officer and a yvoung woman, who police said was driving his automobile without a permit, were held for the grand jury on charges of manslaughter today when a coroner’s jury decided both were at fault in a traffic death. Those ordered held in the case, believed without precedent here, were Ensign Robert Read, stationed | at the Navy Yard, and Marion L. Robinson, 20, Capitol Heights, Md. Their car was involved in a New Year Day crash at Pennsylvania and Branch avenues S.E. that re- sulted in the death of Charles Fin- ley, 20, of Arlington, Va. Testimony was given that Miss Robinson was operating the en- sign’s car when the accident oc- curred at 1:45 am. She was re- leased on $1,000 bond, while the en- sign was released on the responsi- bility of his superiors. Markets at a Glance NEW YORK, Jan. 7 (#).— Stocks irregularly lower; rails resistant. Bonds steady; im- 70 years old, occupied apartments | over the Moll-Glenn Drygoods Co. ! store, in which the blaze originated. Heat and smoke from the smolder- ing ruins prevented an immediate | search for bodies in the debris. asked all prospective jurors whether | they were born in the British Em- | Siganar (Dattilo) Time: 1:44 1-5 Late Races Earlier Results, Rossvan’s, Other Selections and Entries for To- morrow, Page 2-X. ' Tropical Park ' FIFTH RACE—Purse, $1.000; ing: 4-year-olds and upward; Beamy (Day) 5. Run By (Breen) claim- 1 miles. | 3.80 3.00 730 140 440 | Also 'ran—Banker Ji | Waugh Pop and Gay Man SIXTH RACE—Purse. $1,200: claiming 4-year-olds and upward: 6 furlongs Donna Leona (Coule) 800 5.10 Scotch Trap_(Charlton) 50 Off_ Shore (Pierson) Time. 1:11. Also_ ran—Georg man, Boy Angler, 8h mor Bearer. Fiying Legion. Lamaze, Harry Hei- ortstop, O Play. Ar- SEVENTH RACE—Purse. £1.000: claim- | ing: 4-year-olds and upward: 1/ miles. | Battle Won (Torres) ~ 10.80 5.80 4.00 | Moonlite Bobby (Calvin) .60 6.90 | Dick Bray (Meloche) R Time, 1:45%; Also ran—Catch-Me-Not. Allen's Bov. | Port Brin. Miss Westie. Lazarus. Priority. Melody Tone. White Samite. Fair Grounds THIRD RACE—Purse, $600: claiming: 3-year-olds: G furlongs. | Rangle (Brooks) 5.60 oal to Go (Clark) First Draftee (Barber) — Little Suzanne. Gallacourt, FOURTH (SUB) RACE—Purse, $600: | claiming: 4-year-olds and upward: 6 fur- longs. Otto's Choice (Guerin) ~ 8.20 4.20 4.00 Dinner Jacket (Taylor) 340 340 Bafcee (Litzenberger) Time, 1:15%3 Also ran—Wiid Pigeon. Ki SENATOR ELLENDER TAKES A POINTER.—Senator Ellender of Louisiana, looking over an air raid precautions sign pointing o Star 1942—FORTY-SIX PAGES. the way to a shelter area in the Senate Office Bullding today. * La Guardia fo Keep Jobs as Mayor and Civil Defense Chief James M. Landis Hinted as Executive Aide to Director By the Associated Press. NEW YORK, Jan. 7—Replying to recent widespread eriticism of hi dual responsibility, Mayor La Guar- dia told the City Council today that for the present he intended to con- tinue as the ci chief executive and national director of civilian de- fense. He said that during a conversa- tion with President Roosevelt yes- terday a plan had been worked out whereby he would be relieved of much desk work detail connected with civilian defense. In regard to this, observers re- called that also attending the White House conference was James M Landis, dean of Harvard law school and former chairman of the Se- curities and Exchange Commission This three-cornereg meeting gave rise to reports that Mr. Landis would be named an executive director of | the O. C. D., an act indicated earlier by Mrs. Franklin D. Roosevelt. as- sistant director, during a press con- | Mayor La Guardia refused | ference. to comment on this possibility after leaving the White House The Mayor told the Council that | he could not give up his work with the O. C. D. “until the job is fin- ished.” but added that he supposed that sometime he would have to “make a decision” about his two posts. Daylight-Saving Bill To Conserve Power Passed by Senate Leaves to Pre;idonf Whether to Set Clocks One or Two Hours Ahead (Earller Slory on Page A-4) | The Senate late today passed unanimously a bill suthorizing Pres- ident Roosevelt to order daylight| saving to conserve electricity for the Nation's war effort. The bill, which leaves to the dis-| cretion of the President the deci- sion whether to move the clocks one hour or two hours, still requires House action within the next few da Passage came unexpectedly when Senator Taft. Republican. of Ohio withdrew the objection which blocked the bill yesterday. Senator Taft was not opposed to daylight saving. but thought Congress should fix the exact time. As the bill passed the President may apply the day- light saving order to one or more of | the four standard time zones, Girl Tickles Fiance; His Gun Kills Her | By the Associated Press. 1 RAHWAY, N. J., Jan T.—Clifford Shoemaker, 21, was held on a man- slaughter charge today in the death | of Helen Hermes. his 18-year-old | fiancee. who received a bullet in the | brain when she tickled him. | Police Judge David Needell held | the factory guard for the Union | County grand jury after Detective John Kiesecker said Shoemaker, who | boarded at the Hermes home, related the girl liked to watch him double up whenever she tickled him. Last night | night Shoemaker’s pistol went off | as his sweetheart dug him in the | ribs. i The vessel was two days out of | provement after budget message. chester, The Bullet, Just | | Annapolis to Bar 3 s As a guard against possible air raid fires, the huge sand box been placed in a corridor of the Senate Office Building The also is equipped with a shovel and a hoe. Evelyn Cordell, secretary to Senator Reynolds of North Carolina. poses beside the box. —A. P. Photos. Late News Bulletins Navy Denies Battleship Sinking An authorized Navy spokesman said today that “there is not an iota of truth” in & report that Japanese war vessels had attacked the United States battleships New Mexico and Mississippi and had sunk one of them. The Nazi radio station at Hilversum, in the Netherlands, was the source of the report. (Earlier Story on Page A-1) No Tickets Bought on Daily Double FAIR GROUNDS, New Orleans, La. #.—There were no tickets sold today on the combination which won the daily double—I Might and Phoebus. The winnings were distributed to bettors who held a ticket on either of the horses, as follows I Might and any horse in the second race, $24.20, and Phoebus and any horse in the first race, $9. German General Killed in Russia LONDON (#.—A German broadcast today said Maj G‘env Georg Braun, commander of the Brandenburg division. had been killed on the eastern front in December by a Russian mine. Dutch and Australians to Co-operate SYDNEY, Australia (®.—Conferences between Lt. Gov H. J. van Mook of the Netherlands Indies and Prime Minister John Curtin have resulted in complete agreement on pro- posals of mutual co-operation in the war against Japan, authoritative quarters said tonight. “The Alliles mAst at- tack,” said Van Mook after the conferences. (Earlier Story on Page B-5.) : 'Ban on All Parking Public From Sports 'In Alleys Adopted ANNAPOLIS, Md., Jan. 7—Capt.| A blanket prohibition against T. Starr King announced today the parking of any private automobile general public would be barred from L"dfl;:‘e-‘;i 3_}5?; e SR AT winter athletic contests at the Naval | gfter such an order was submitted Academy because of strict wartime by Traffic Directar Willilam A. Van | regulations governing entrance to| Duzer, carrying out an earlier sug- | order covering attendance was being | 1 1 o | gestion from the city heads. The acadeny grounds. | new rule will become effective after The director of athletics said an| 10 days of legal notice. ‘Tobruk Comm;nder Gets |Medal for 7-Month Siege | By the Associated Press. NEW YORK, Jan. 7.—Maj. Gen. s | Leslie James Morshead, Australian, has been made a knight commander of the Order of the British Empire for his work as commander of Tobruk during its seven-month siege, repared by the superintendent’s of- fice and would be announced soon. GUIDE FOR READERS Page. Amusements Finance _ B-6-7 | Obituary Comics - B-22-23 | Radlo Editorials _.A-10| Serial Story.B-12 Congress Ready to Enact Record War Budget Asked by Roosevelt NIGHT FINAL SPORTS P) Means Assoclated Pri THREE CENTS. N DRIVE TO CLEAR ARCTIC ROUTE Finns Battered Along Line fo 'Murmansk Big Armored Forces Thrown Into Assault; Nazis Still Retreat BULLETIN. MOSCOW, Thursday (7.— Russian troops attacking on the central front were de- clared officially today to have retaken a number of villages, including Meshchovsk, 40 miles southwest of Kaluga. Meshchovsk represents a further gain in the Reds’ drive toward the Vyazma- Bryansk German defense line only 40 miles beyond. (Earlier Story on Page A-1.) By the Associated Press The German armies were in retreat today along the entire 1,200-mile Soviet battlefront and the Russian situation had so im- | proved in the far north that major assaults with strong armored forces were reported being delivered on the Finns while the Red Leningrad garri- son was at the same time being reinforced. A The offensive appeared aimed at securing safe transit for Brit- ish and American aid through | Murmansk. | Dispatches from Stockholm told of a great battle along the southern sector of the Russo-Finnish front For the first time in months. the | newspaper Aftonbladet the Russians have strong armored | forces at their disposal. They are | throwing battalion after battalion into the heaviest fighting seen in | Eastern Karelia since September. | This indicated German pressure on Leningrad had been greatly eased. A Finnish war bulletin also re- ported that Russian troops had penetrated Finnish lines on the east front north-of Lake Onega—a dif- | ferent sector farther north—and that the Red Army offensive was continuing there, In the Crimea, sea-borne Russian | troops struck back at many points to tighten a trap around the Ger- man siege armies at Sevastopol. The Russians also were reported driving in the direction of Kharkov important heavy industry center in . the Donets Basin. Success in this area would reclaim another vital manufacturing point for the U, 8. S. R. and constitute a big step in the Red Army's task of | winning back the Ukraine. 10.000 Nazis Die on Central Front. On the central front, retreating s were said to have left 10.000 n the battlefields and yielded 2 towns in five days. Red cavalry raids were reported in e Mozhaisk sector. 57 miles west Moscow. where the Russians have said the Germans face encirclement. Roads in the Nazi rear were reported cut by sudden night attacks of the horsemen | The pace of the Russian counter- sweep was reported quickening as reinforcements poured steadily into the Red Armv lines. and Soviet in- formants said Russians expected to drive the invaders behind the Len- ingrad-Smolensk-Dnieper River line —more than 200 miles west of Mos- cow—around February 1. This would “turn the Nazi retreat into a mili- tary catastrophe in the bitterest part of the winter.’ | Finns Deny Peace Rumor. | Official Finnish spokesmen denied widespread rumors that Finland is ready to withdraw from the war against Russia Questioned about an editorial in a Helsinki newspaper Sunday sug- gesting that Finland's strategic goal had been reached, these spokesmen said it was not possible at present to make any official pronouncement on the correctness of this intima= tion for military reasons. Authorities admitted, however, | that the Finnish Army has not en- | gaged recently in offensive opera- | tions. ‘Russians Shower Nazis |With Deserfion Leaflets By the Associated Press. LONDON, Jan. 7—The Soviet Em- | bassy disclosed today that the Red Air Force has been showering re- treating German forces with mil- lions of leaflets advising them to | “save their lives by desertion” and | carrying a “pass to safety” on the reverse side. This is the advice the leaflets are giving the Nazis: | 7 “Stay away from your command- ers. Try to lag behind the others. | The Russian population will help you and hide you if you present the pass on the reverse side of this leaflet. “Expose a toe or finger to the cold and try to get it frozen. It is better to lose a finger than your life. “Put your rifle out of commission | and do the same with the motors of | cars, tanks and planes. | “Carry out orders as slowly as pos= | sible. { “Slip away when sent on a scoute Foreign exchange quiet; Cana- dian dollar higher. Cotton un- even; trade buying; hedging and profit taking. Sugar quiet; awaiting new ceiling for refined. Metals steady; considering %l]ln? 00} { Bombay in the Indian Ocean when the United States went to war. Under Navy orders she was blacked | out and in two days the ship was given a coat of war paint by the 117 crew members, aided by passengers. | The ship carried 65 passengers of | to stimulate lead output. whom 42 were American citizens. i tops inactive. 4 d ita Jay. { fBlue Star, fClock Time, Ferryboat. 1 Field. FIFTH RACE—Purse. $1.000: handicap: 3-year-olds and upward furlongs. R ) 16.80 g% 320 Time. 1:134%. Aiso ran—Idie Sun. a 8ir Kid, & Potran- ino Gold Exarch, .. a Lexbrook Stable entry. ATLANTA.—TRAVIS TO BAT FOR THE ARMY—Cecil Travis, | Washington infielder, being examined by Lt. R. H. Gross at nearby Fort McPherson today preparatory to induction into the Army. The 28-year-old Riverdale, Ga., player had a .359 batting average last season to place second in American League hitting. He said he expected to be sworn in tomorrow.—A. P. Wirephoto. ! L Editorial 1 Society - | Features A-11 | Sports ___A: | the British radio said today. | German and Italian units which ing trip. "‘fi;:,m hplisiache m..“?hemmed the Mediterranean port| “Stay in your dugout during ate Lost and | were driven off recently by joint | tacks. Found ....A-3 18 | action of the defenders and British | “The best way of all is to come —_— armored spearheads in the new bat- [ over to the Red Army. We re- (Complete Index, Page A-1.)| B-21| | Woman's Page ... tle of Libya. ceive every volunteer prisoner as a N. B. C. recorded the broadcast. |brother.” ) X % X % % % X % % % X % % ¥ P X . - . X Y, ¥ . 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