Evening Star Newspaper, January 7, 1942, Page 2

Two Extra Pages In This Edition Late news and sports are covered on Pages 1-X and 2-X of this edition of The Star, supplementing the news of the regular home delivered edition. Closina N. Y. Markets—Sales, Page 18. ch —— e 90th YEAR. No. 35,680. 56-Billion Dollar War Budget And Nine Billion in New Taxes Asked by Outlay Is Called Largest of Any Nation in History President ' War Budget By the Associated Press. Today's war budget, calling for expenditure of $1904 every sec- ond during the year, clinched the all-spending title in American history to date for the Franklin D. Roosevelt Administration. Stacked up against the more than 133,000,000 people in the country and the more than 31.- 000.000 seconds in a year, here’s how the spending figures dut: Per Per- _Per son. Second. 300 $444 $1.904 186,000 397 87,200,000 176 421,038,907 830 (Text of Budget Message, Page A-8.) By JOHN C. HENRY. President Roosevelt laid before | Congress today “the budget of a | Nation at war in a world at war,” | calling for the expenditure of approximately $56.000,000,000 in the United States’ battle effort of | the fiscal year 1943 and propos- ing new taxation estimated to raise about $9,000,000,000. Described by the Chief Executive at a special press conference yester- day as probably the biggest budget in the history of any nation at any time, this proposed fiscal chart would leave the United States on June 30, 1943, with a public debt of | British Again Refreat, ’ sivaimeanis i coend | Jang” Forces Move estimated to total $59,027,000,000. | . Closer to Singapore Facing facts as the course of his- tory now seems destined to shape them, it is more than probable that Nipponese Penetrate English Lines at One Point on Perak Front 194 Spending $59. Defense _ 52, Taxes Debt ___ the debt will be even larger than this record-breaking estimate. To Pay “Whatever Price.” The President’s message, sent to Capitol Hill for reading before both branches of the Congress, was | screened in all the generalities which might properly be expected in the case of “a nation at war” but By the Associated Press. | SINGAPORE, Jan. 7—Japanese | forces fighting their way down the WASHINGTON, D. C, WEDNESDAY, WITH SUNDAY MORNING EDITION . ¢ Foening Star JANUARY 7, 1942 K JapaneseRenew Heavy Attacks OnU. S. Forces MacArthur's Troops Continue Resistance; Corregidor Raided : for 1943 Reds Tighten Trap on Nazis At Sevastopol West Crimea Landing Smashed in Brisk Battle, Nazis Say By the Associated Press. Sea-borne Russian troops, striking | back into the Crimea at many | points, were reported tightening a | trap around Adolf Hitler’s siege armies at Sevastopol today, while on | the central front, retreating Nazi forces were said to have left 10,000 dead on the battlefields and yielded | 572 towns in five days. | Renewal of heavy Japanese as- | | saults along the entire front of | the American and Philippine de- | fense lines off the northwest of | Manila was reported by a War Department communique issued | at 9:45 a.m. today. Corregidor Fortress and instal- lations on the Batan Peninsula | again were bombed for several| hours yesterday and several Japanese planes were hit by | anti-aircraft fire, the com-| munique said. Gen. Douglas MacArthur's forces were continuing steady and valient resistance, the communique re- ported, as their front lines were subjected to continuous bombing and machine-gunning by enemy aircraft. Reports of yesterday’s land opera- At the same time, the Germans | tions were the first made here in the acknowledged a heavy Soviet push | last 24 hours and indicated that | in the Donets River valley of the the Japanese were trying to make | Ukraine against the industrial city | & frontal attack with increasing of Kharkov, Russia’s “Pittsburgh.” | pressure at all points on the lines. A bulletin from Hitler's fleld head- | The communique declared the |Quarters asserted that Russian | damage and casualties from the | troops who landed from barges at | bombing of Corregidor was unde- Yevpotoriya, on the West Crimean |termined. At least 45 Japanese coast 40 miles north of Sevastopol, bombers took part in the attick. had been wiped out “in brisk house- | to-house fighting.” | Countering the German version, a | Text of Communique. The text of the communique, | No. 49, follows: < G RITERL ST 3 2l WHAT'S THA) gy G An Evening Newspaper With the Full Day’s News LOCAL—NATIONAL—FOREIGN Associated Press and (#) Wirephotos, North American Newspaper Alliance, Chicago Daily News Foreign Service and The Star's Staff Writers, Reporters and Photographers. Press. THREE CENTS. District Budget Is Held fo §54,548,562 $2,000,000 Less Than at Present; No More Taxes Needed By JAMES E. CHINN. A District of Columbia budget | totaling $54,548,562, held down to provide only the most urgent | of public improvements for the wartime-inflated city during the | new fiscal year beginning July 1, was sent to Congress today by President Roosevelt. Tailored to fit the District pocket- book without added revenue from new or higher taxes, the budget is nearly $2,000,000 under the amount of regular appropriations approved by Congress to run the Municipal Government in the present fiscal year. Despite the extraordinary de- mands on municipal revenue oc- casioned by National Government defense needs, only the normal Fed- eral contribution of $6,000,000 is recommended by the Budget Bureau. ‘To keep the budget from expand- ing to a point where it would place Big Part of Jap Fleet Escorted Troops to Luzon, Admiral Says Protection So Strong U. S. Subs Could Not Get At Transports, Senate Committee Hears By the Associated Press. | that the time had come for greater there was no dispersion of a single intense emphasis—that here was | Malayan peninsula inched closer to represented the determination of a | Singapore today as the British ac- London radio broadcast reported that the Russians had established a beachhead, that “heavy fighting is | “1. Philippine theater: Heavy fighting has been resumed along the The Senate Naval Committee heard testimony today that a siz- emphasis on smaller and more effi- cient craft in naval operations. able portion of the Japanese fleet | | the District in the red, many pro- posed public school projects were | sidetracked along with improve- ments carried on from year to year such as reclamation of the Ana- | costia flats and the acquisition of | park lands. The schools suffered | the most serious setback of all; out of 20 new buildings sought by Supt. Frank W. Ballou, he was allowed one, 100 More Policemen Allowed. Excluding the schools, the budget aims to provide some of the impor- tant projects and municipal services vital to the expanded sections of District Committee Calls Hearing on Transportation Here Transit Company Announces Order for 300 Cars and Buses The admiral told him that a navy | the city. For instance, increased ap- Government, and a people, to pour | knowledged for the third successive |80IN€ on along the shore” at|entire front, with the enemy in- every ounce of effort and economic strength into the cause of defeating our enemies. “Nothing short of a maximum will suffice,” Mr. Roosevelt said with | Jower Perak front, where a com-| “I cannot predict | munique said the Japanese had| quiet realism. ultimate costs because I cannot pre- dict the changing fortunes of war. |ing supported by mechanized units | I can only say that we are deter- | mined to pay whatever price we | must to preserve our way of life.” | Noting that actual war expendi- tures are now running at a rate of $2,000,000,000 monthly and are likely to surpass $5,000,000,000 monthly during the 1943 fiscal span, the Pres- ident itemized estimated expendi- tures of $18,618,615,000 for the War Department during this period, $6.- ;clme the extent of the withdrawal. | 849,359,000 for the Navy Depart- ment and $10,318,212,000 for the na- tional defense activities of all other | ‘Government agencies. To this total, | he added the round figure estimate of $17,000,000,000 under the heading of “supplemental items.” 24 Billions Available. With these four cateBories | amounting tv $52,786,186,000, the | President pointed out that there should be added the net war outlays of such Government corporations as | the Reconstruction Finance Corp. in | the sum of nearly $3,000,000,000 to | bring the total expenditures for the | year to approximately $56,000,000,000 more than half of the estimated | national income during that period. | Already appropriated and avail- | able for application to this gigantic L program is $24,000,000,000 in unobli- gated funds, to which Mr. Roosevelt | asked the speedy addition of $13,634,- | 614,769 in appropriations. This latter sum, the President broke down to | day that their forees had been com- pelled to withdraw southward under the steady battering of the invaders. Heavy fighting was reported on the launched a violent attack this morn- and had succeeded in penetrating the British lines at one point. On the opposite side of the pen- insula, where the Japanese were ad- mitted yesterday to have captured Kuantan, only 190 miles from Sing: apore, the British continued to with | draw southward “according to plan,” | the bulletin declared. The announcement failed to dis- British headquarters indicated there had been no change in the-sit- uation in Selangor state to the south, where sea-borne invasion forces yvesterday were reported threatening Kuala Lumpur, 240 miles from Singapore. The disclosure that heavy fight- |ing still was continuing in Perak | served to dispel doubts whether the British still held any part of that state — doubts which were raised yesterday by reports of British with- drawals on that front and by men- tion of Japanese activity in Selan- gor State to the south. ¥ It appeared today that invasion forces which had infiltrated along the coast into the Kuala Selangor area, 240 miles from Singapore, had made no further progress. Japanese aerial activity over Malaya was described as consider- able, and Singapore itself had an alarm last evening, but no bombs were dropped. Yevpatoriya, and that German forces were moving north from Sevastopol to combat the threat at their rear. Nazis Admit Breach in Lines. The German high command also asserted that Rumanian soldiers had “smashed” & small Soviet landing party southwest of Feodosiya, in the Eastern Cgimea, and declared that Nazi dive-bombers “effectively at- tacked" other Russian troops landed on the peninsula. In the Ukraine, Hitler's headquar- ters admitted that the Soviet counter-offensive had breached Ger- man lines northeast of Kharkov, |but declared that German troops counterattacked and succeeded in straightening out the front. Meanwhile, diplomatic quarters in Turkey said general mobilization was under way in Rumania and Hun- gary, with the Germans trying to ) | check the retreat in Russia. pected to drive the invaders behind the Leningrad - Smolensk - Dnieper River line—more than 200 miles west of Moscow—around February 1, “turning the Nazi retreat into a military catastrophe in the bitterest part of the winter.” Advices reaching London said the pace of the Russian counterswee was increasing as reinforcements | poured steadily into Red Army lines. Picture of Front. The picture of the fast-changing front, as sketched by latest reports | and official communiques, follows: From the main northern anchor at Leningrad, the Russian line ex- | muster all possible manpower to | Soviet informants said Russia ex- | creasing pressure at all points. Front lines of American.,and Philip- pine troops are being continuously bombed and machine-gunned by enemy aircraft. Defending troops are continuing their steady and vailiant resistance. “The fortifications on Corregidor Island and installations on Batan | | Peninsular again were bombed for | several hours yesterday. The extent | | of damage and casualties has not yet | been determined. It is estimated | that at least 45 bombers participated in this attack. Several hostile planes | were hit bv our anti-aircraft fire. “2. There is nothing to report from other areas.” Indies Offensive Begun. ~ Meanwhile, Japan appeared have launched an offensive against |the Netherlands Indies, now that | her forces have established them- | selves in the Southern Philippines. | A United States War Department | communique reported that the Mi- kado's sea-borne invasion armies in !the Philippines have massed a | powerful striking force at Davao | Bay, only 600 miles from Dutch Borneo and 400 miles from Dutch Celebes. A Rome radio report heard in |London indicated that the thrust| | may already have started, declaring | | chute troops had landed on the east | coast of Dutch Borneo. Simultaneously, Netherlands In- dies headquarters at Batavia re- ported that a formation of eight Japanese flying boats attacked mili- | tary objectives during the night on the island of Ambon (Amboina), site | was used to protect the transports must have all types of ships, from which carried the invaders to Luzon | crash boats to battleships, to func- | in the Philippines. 2 tion successfully. A contrery con- Rear Admiral S. M. Robinson told | clusion, he contended, could not be propriations are recommended for Washington's wartime transporta- | extensions in the water, sewerage tion problems will be considered by and street lighting systems. One | the House District Committee at a hundred more men are allowed to the committee that the enemy trans- ports were protected “by a fleet, in- cluding capital ships, airplanes and everything else you can think of.” “Otherwise,” he said, “our sub would have got at them.” Admiral Robinson made the ob- servation in reply to Senator Wiley, Republican, of Wisconsin, who wanted to know whether the recent successful defense of a seaplane tender against prolonged air attack in Far East waters did not suggest drawn from isolated incidents. The successful defense of the tender. he asserted, was possible be- | cause it was a poor target fQr bomb- | ers, whereas a destroyer or other | naval vessel could have blown it out | of the water with one shot. It would be possibie, he said, to | make a good argument for having a navy composed entirely of sub- marines or entirely of airplanes, “but it wouldn't work.” Plea fo Take In One U:'S. WorkerEach — Representatives Ask Young to Help Shelter Incoming 40,000 An appeal to Commissioner Young | to call upon each District home | P | that strong forces of Japanese para- | owner “to provide decent living ac- commodations for at least one Gov- ernment war worker during this emergency” was made today by Chairman Downs and Representa- tive Manasco of the House sub- decentralization of Federal agencies. D..C. Homes-May Get Steinhard Is Named To Be Ambassador O0fU.S. fo Turkey Sending Him Is Viewed As Significant; Moscow Post Is Left Open Laurence A. Steinhardt, who has been serving as Ambassador to So- viet Russia, today was nominated by President Roosevelt to be Ambas- sador to Turkey. ! the Russian post was designated. It has been rumored that Maj. Gen. James H. Burns would be offered | committee conducting hearings on|the post. | Mr. Steinhardt would succeed J. No successor to give the War Department $6,388091,- | The Japanese also bombed Klang, was space for supplemental appro- Nazi Plane, Tank, Sub year already have passed the $37.- | 1s completed. D | that Germany is producing more For public notice, the President |Ds fallen slightly below the peak | | tend: £ of a major Dutch naval base, 800 nds 280 miles southeast to Vysokoe. | miles south of Davao. 45 miles west of Kalinin; thence | through Staritsa in a sweeping arc| “The enemy dropped 20 bombs menacing German-held Mozhaisk, | 2nd machine-gunned the island,” 57 miles west of Moscow, with Soviet | the communique said, reporting that troops striking from Volokolamsk, | three civilians were killed and four Narofominsk, Borovsk, Maloyaro- | Persons wounded. slavets, Kaluga and Mozelsk. Mo-| The bulletin also noted lively selsk knifes into German-held terri- | aetial reconnaissance over the far- tory 140 miles southwest of Moscow. | flung archipelago—often the tipoff From Mozelsk, the line runs south- (See WAR, Page A-6.) east to Belev; then 150 miles south- = Ifalian Press Tells Latins east to Tim, 40 miles east of Kursk; thence 250 miles south along the Donets River to near Stalino, and southwest 80 miles to Taganrog on In a joint letter to the commis-| V. A. MacMurray in Turkey; both | sioner these two House members em- | are now in the United States. phasized that the hearings have dis-| Secretary of State Hull explained closed that more than 40.000 addi- | that Mr. MacMurray would be given tional workers will come to Wash- | a position in Washington that would ington within the next 10 months. | make use of his extensive knowledge “We have had great difficulty in| of Far and Near Eastern problems. finding office space, but our greatut‘ “In view of Mr. MacMurray's long problem is finding living quarters for these people,” they wrote. Their | and the Far East.” Mr. Hull said, letter asks Commissioner Young to|“the President is accepting his submit to them figures on the num- | resignation as American Ambassa- ber of private homes in the District | dor to Turkey in order to avail him- at once. self of Mr. MacMurray's services Believe Room Can Be Made. here in Washington on expiration of s ittee in | his present leave of absence.” m’:‘h;p}p{::]se “svuvl:co;r;rg;l ,h::‘dmm The sending of Mr. Steinhardt to experience in both the Near East | 747, the Navy Department $5932,- on the Malayan west coast about 746,-768. and all other departments | 200 miles north of Singapore, but no $1.313,776.254. | damage or casualties were reported, Left unestimated and unitemized & communique said. priation items. By contrast with the 13 billions for which he is asking quick appropriation, the actual war appropriations in the present fiscal 0 HH utput Up, British Say (3100.l{;tzo‘.t:lflot mark and there is no i;,u.?.momudnexs oul at this figure will be far ex- | B ceeded before the 1043 fiscal period | LONDOK, Jan. 7-Tne Minlsry be:«Lgr%e supplemental requests will | planes, tanks and submarines than e “LZ”&""S%J&"’SL’S 3: |in’the' spring of 1941, although the pacity,” Mr. Roosevelt promised. | over-all production of armaments informed the Congress that “I can- | leVel reached at that time. not hereafter present details of fu- | The ministry saic the Germans ture war appropriations. However, | wler: p;ll;tn ?hgelr full aims in sub- total appropriations and expendi- | P Lo tures will be published so that the | public may know the fiscal situation | and the progress of the Nation's effort.” Estimates Revenues. On the revenue side of his 1943 balance sheet, the Chief Executive | estimated that net receipts for the present fiscal yvear will be $11943,- | 993000 and that continued opera- tion of the present tax structure | would bring in $16,487,200,000 in the | succeeding 12 months. | With 1942 expenditures already | slated to exceed $30575,000,000 for | a budget deficit of $18,631,803,162, the public debt as of next June 30 | 1s now figured at $70,612,246,697. In event Congress should fail to | impose new taxes for 1943, an emi- | nently unlikely prospect, the deficit under the present schedule and the contemplated expenditures would amount to $42,440,792.300 for the sin- gle 12-month period. Even with $7.000,000,000 of the new taxes which | Mr. Roosevelt is asking—$2,000,000 000 more taxes would go to social | security reserves—the deficit for the coming year is bound to exceed $35,- | 000.000,000. | “Total receipts from existing tax | legislation will triple under the de- | fense and war programs,” the Presi- | dent said, referring back to a scant | (Continued on Page A-8, Column 17.) Senegalese Released By Nazis Reach Dakar By the Associated Press. BERLIN, Jan. 7 (Official Broad- cast). —The Berlin radio quoted a Havas dispatch from Vichy today as saying the first French North African soldiers to be released from German prison camps—most of them Senegalese infantrymen—had arrived at Dakar. “They will be sent immediately to their homes,” it was said. ~ marine production had been im- peded by the R. A. F. Armaments production in German Europe, outside of Germany, are not anythiing like fully utilized—in France because of the shortage of raw materials, in Czecho-Slovakia because of internal trouble and in Italy because of a shortage of work- ers and food. : The ministry added that German war production was not likely to be seriously restricted during the next six months by the metal shortage, but that stocks of some metals, | particularly nickel and copper, ought to be exhausted by the end | of the year at the present rate. The Nazis were also in urgent need of iron ore and paper pulp, the imports of which were restrict- ed by the fact that they owe $800,- 000,000 to people in Europe, the report said. There is also a defi- ciency in textiles. Argentina Bans Military Alliances With Americas By the Associated Press. BUENOS AIRES, Jan. 7.—Enrique Ruiz Guinazu, Argentine Foreign Minister, indicated today that his country could not agree to military alliances or *“measures of pre-bel- ligerency” at the Rio de Janeiro Conference of Western Hemisphere Foreign Ministers opening Janu- ary 15. In an interview with La Nacion he said continental solidarity “does not imply automatic actions and even less should it be confused with mili- tary alliances.” He pointed out that Argentina can- not make any engagements of “pre- belligerency” without approval of her Congress. the Sea of Azov. The British radio said Russian troops had crossed the upper Donets —perhaps in the region of Kharkov, which lies 250 miles northeast of ‘Taganrog. Finns Admit Russians Pierce Their Lines HELSINKI, Finland, Jan. 7 (#.— Russian units have penetrated Fin- nish lines on the east front north of Lake Onega in severe winter fighting and the Red Army offensive is continuing, a Finnish war com- munique said today. It declared the Finns were en- gaged in destroying enemy units which made the penetration. Free Thailand Movement Against Japs Reported By the Associated Press. NEW YORK, Jan. 7.—The Bata- via radio reported today in a broad- | cast that a free Thailand movement | against Japanese occupation had | come into existence. N. B. C. heard | the broadcast. \To Preserve Neutrality | By the Associated Press. ROME, Jan. 7 (Andi Agency)- Italian newspapers carried today & semi-official note urging South American nations to stand for a “benevolent, intelligent neutrality” when they meet January 15 in the Pan-American Conference at Rio de Janeiro.* “The decision of the Pan-Ameri- can conference should not be based upon the Axis declaration of war against the United States,” the note said, while “the whole future of South American countries les at stake.” The note added that “the Axis and Japan limit themselves to the hope | that at this grave moment in human history the South American states | can find among their ranks states- real interes¢s of their countries lie.” Blackout Hides Flames SEATTLE, Jay. 7 (#).—Blacked-out windows last night screened a fire | raging inside the Home Laundry: until the blaze gained such headway | | it resulted in damage estimated at | about $50,000. would cause some inconvenience on the part of the home owners but we are asking our boys to leave com- | fortable homes to fight to protect | our homes, our liberties and our future. It might be necessary for many Government employes who own homes in the District to give | Ankara fresh from his diplomatic service in Soviet Russia was regard- ed in some official quarters as sig- nificant. | and forth between the German and | United Nations’ cause as the tides of | war have changed on the Russian front. Turkey has appeared to | observers here to be wavering back | special session at 10:30 am. Sat- the Metropolitan Police Department | urday, it was announced today as| ————— the Capital Transit Co. disclosed it has placed orders for 200 additional buses and tentative orders for an additional 100 vehicles. Chairman Randolph of the Dis- trict Committee said the commit- tee will attempt to work out a plan with District officials and represent- atives of the streetcar, bus and taxi- cab companies to assure adequate mass transportation service for the city's inflated population. Invited to attend the meeting are the Commissioners, Gregory Hankin, chairman of the Public Utilities Commission; Capt. H. C. Whitehurst, director of highways; Traffic Direc- tor William A. Van Duzer, E. D. Merrill, ptesident o7 the. Capital Transit Co,, and officials of taxicab firms. D. C. SURPLUS claimed by Budget Bureau; D. C. heads dis- agree. Page A-9 FOOD STAMP PLAN dropped; “ceilings” on relief payments eliminated. Page A-9 15 STREETS TO BE repaved; five street-widening projects pro- vided. Page A-9 NEW POLICE PRECINCT &nd new fire station are provided in budget. Page A-9 SCHOOL FUNDS are cut; only one new - construction project pro- vided Page A-9 NORTHWEST HEALTH CENTER completion provided in funds rec- ommended. Page A-9 TRAFFIC BUREAU reorganization indicated in 1943 budget for per- sonnel. Page A-9 D. C. WATER SYSTEM budget in- cludes funds for large improve- ments. Page A-2 i ‘Would Exempt Cabs. Representative Randolph said the committee also would consider & resolution he recently introduced to exempt taxicabs from the Gov-| ernment’s tire-rationing order. and six for the Park Police force. In announcing plans for purchase Five street widening projects are of new equipment, Mr. Merrill said | listed to remove traffic bottlenecks, the tentative orders for an addi- and increased funds are asked for tional 100 vehicles were subject to! traffic lights and traffic safety edu- later confirmation or cancellation. | cation. He estimated the cost of the 300 With Washington the Nation's No. vehicles at $3.700,000. 1 defense center, all the approved Chairman Hankin of the Utilities projects, including some of those now Commission declared a public hear- | under way for which the budget ing or other formal proceeding on carries funds for completion, may the plan would not be necessary obtain the necessary priorities, “because the need for more buses is officials hope Notable among too obvious.” The commission, he projects under way are the new said, would sanction the orders. sub- main Public Library Building on ~(See TRAFFIC, Page A-4) |the north side of Pennsylvania avenue near Sixth street NW., on which work already has stopped, and five school buildings—the Kramer { Junior High, Spingarn Senior High, Abbott Vocational, Benning and Van Three Tire Boards Acting On First Applications | Ness Senools. Though nearly $2,000,000 less than The first batch of applications for | regular approprietions for the cur- new tires under the District’s tire | rent fiscal year, the new budget rationing program will be acted on | woyld have been the highest in his- this afternoon by the three boards | {ory had not Congress, because of assigned the job of doling out the | ine geyte traffic situation, already 1922 tires alloted to the District for authorized the Highway Department Jamfar,v. i i to advance work on projects it pro=- By noon today, 13 requests ‘; |posed to execute in the coming been received at the board’s head- | fiscal yeer to improve approaches quarters in the old Force School to the Potomac River brid, r ges. These They were from doctors. nuUrses. con- | jnejyde construction of & grade sep- struction firms engaged in defense . 3 aration at Fourteenth street and wor_k and a plumbing and heating | njaine avenue S.W., extension of equipment firm. | Independence avenue from Four- teenth street to the Lincoln Mem- them up and go to other areas. We believe that room can be made for the 40,000 additional workers in the | Mr. Steinhardt, a lawyer by pro- fession, is a native of New York men capable of realizing where the | | Metropolitan Area if the people here | are fully apprised of the need, for ‘we know that the people of the Dis- trict are just as patriotic as people in other sections of the country. Speed is of the utmost importance and your immediate attention and co-operation. will be appreciated.” The various “O” agencies now working on national defense already have some 9,000 employes in Wash- ington, a number expected to be multiplied within the next few months, Wayne Coy, assistant ad- ministrator of the Federal Security Agency, told the subcommittee to- day. He and other officials of agen- cies subsidiary to the O. P. M. as- sured the subcommittee that they could not operate with the same efficiency outside Washington, that costs would be increased and essen- tial co-overation with other agenci | Summary of voyed troops, U. S. hears. Page A-1 British expect A. E. F. to.make isles a huge invasion base. Bad weather hampers British at- tacks in Libya. Page A-4 Seven million more Japs Killed, Chinese claim. Page A-5 National. Laurence A. Steinhardt named Am- bassador to Turkey. Page A-1 Defense housing bill compromise sought. Page A-4 More war evacuees reach West Coast. Page A-5 4 | Sizable part of Japanese Navy con- | Page A-2 | Today’s Star Washington and Vicinity. James L. Martin appointed secretary for birthday ball. Page A-4| | Five-year-old boy dies, six overcome | in Southwest fire. Page A-3| Rush-hour jitney service by taxis proposed by Delano. Page B-1 Cogswell says rent rulings won't be retroactive. Page B-1 Common sense by building guards urged during raid. B-1 Board of Trade sells $1,326,200 De- fense bonds here. Page B-1 Miscellany Army Orders. Births and Deaths. Nature's Children. Marriage Licenses. (See DI Nazi Radio Reporis U. S. Battleship Sunk By the Associated Press. LONDON, Jan. 7—The Nazi-con- trolled station at Hilversum, the Netherlands, broadcast a report this morning that Japanese torpedo boats had attacked the United States battleships New Mexico and Mis- sippi and that one of them was sunk. - (The Associated Press found no confirmation of the report and no such claim was heard from the Tokio radio. In Washington the Navy De- partment said it had no information and no comment.) The Hilversum broadcast said the attack occurred as the battleships were en route to Darwin, Australia. | City and a graduate of Columbia University. The three boards were scheduled | to meet separately at 3 p.m. before = ‘Whitney Leary of the Rationing |~ ’ Board and the Executive Committee at 4 pm. Creek to Key Bridge and widening of Twenty-third street from Con- | stitution to Pennsylvanie avenues. By the Associated Press. Responsible military officials sald today it is “definitely in the cards” that Germany may use her Zeppe- lins in token raids on the East Coast cities of the United States. The Nazis, these sources believe, still have the two dirigibles which bore the swastika at the war’s out- break—the trans-Atlantic veteran, Graf Zeppelin, and the great LZ-130, ssiter ship of the Hindenburg which was destroyed by fire at Lakehurst, N. J,, in 1937 Either dirigible could be fitted to carry up to 10 bombers within easy striking distance of the Atlantc Coast and could hover off shore while the planes loosed destruction on the cities, experts here said. Or the Zeppelins themselves could un- dertake a suicide mission and do their own bombing. President Roosevelt, in his mes- sage to Congress yesterday, acknowl- edged that the enemy might try air attacks on great population centers in an attempt at “terrorizing and undermining morale. In the East, Navy aircraft experts noted, the endency was to think of such a possibility in terms of surface aircraft carriers, but they recalled Use of Zeppelins to Dispatch 'Bombers Over U. S. Anticipated Giant Ships Could Carry Up to 10 Planes In Silent Approach to Atlantic Coast Other Highway Projects. Notwithstanding the emergency shifting of highway projects, the Highway Department’s allocation for further improvements in the street and road system amounts to $5.- 000,000. The major portion of this money is earmarked to take more kinks out of the highways. Most costly of the approved projects are the widening of Independence ave- | nue from Sixth to Twelfth streets, ,the well-authenticated report that Maine avenue S.W. from Twelfth Germany built a dirigible in the |~ first World War for the express pur- | pose of bombing New York This ship was the LZ-70, the largest airship produced by the Reich in that conflict. It had a capacity of 2,500,000 cubic feet, much smaller than gither the Graf Zep- pelin or the LZ-130, but could have made the trans-Atlantic round trip with ease without refueling. Ger- many was beaten before the raid could be made and the ship was destroyed. The Graf Zeppelin, by compari- son, is a ship of 4,000,000 cubic feet, and the LZ-130 has a capacity of 7,000,000. The latter probably could better the Hindenburg's trans-At- lantic crossing time of 55 hours for it cruises at 70 miles an hour and has a top speed of 85. Moreover, years of trans-Atlantic dirigible operations have given the Nazis a corps of experienced Zeppelin men. The airship, it is pointed out, would have little to fear from sub- marines and surface craft which menace surface carriers, and if weather conditions were appropriate, would be most difficult to locate as it hovered with silent motors near or over its American objective. A 3 (See D. C. BUDGET, Page A-9) Japs fo Start Ralio_ning |Food in Six Provinces | By the Associated Press. | SAN FRANCISCO, Jan. 7—Food | rationing will begin February 1 in six of Japan's most thickly popu- lated provinces, the Tokio radio said today in an official Japanese language broadcast. Air-Raid Alarm The Office of Civilian Defense for the Metropolitan Area has asked The Star to publish for the information of the public these air-raid signals for the entire region, including nearby Virginia ‘and Maryland: Alarm—Pive blasts of half- second intervals, sounded three consecutive times; a total of 15 blasts. All clear—Three long blasts of one and one-half seconds A