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Red Armies Planning Drive on Smolensk as Nazis Still Refreat Fall of Kholm Breaks Hitler Line in North; Huge Stores Taken B the Associated Press. MOSCOW, Jan. 24.—Russians declared tonight that Red Arm- ies beating the Germans back with ever-increasing momentum have cracked the northern an- chor of Adolf Hitler’s winter line at Kholm, and cut deeply into his winter reserve supplies as well, in the farthest advance of a brilliant general offensive conceived and directed by Jo- seph dtalin himself. With achievement of this stun- ning victory, which imperiled the Germans south of Leningrad and on the central fronts, the newspaper Pravda said the Russians now would concentrate on clearing the Nazis out of occupied southern areas be- tween Kursk and Orel and at Smo- lensky, west of Moscow. The Soviet midnight communique raid the advance up and down the front continued today and that nu- merous localities were rco:ccupled.' but it gave no clue as to where they were located. It sald three German planes were shot down on the approaches to Moscow during the day. Most of Losses Regained. It took just over a month for the charging Soviet forces to cancel out some two-thirds of the invaders’ gains between Moscow and Lenin- grad and send them reeling back to Kholm, only 120 miles from the | Latvian border. Furthermore, Pravda boasted that the Russians have regained up and down the entire front territory as large as England and Scotland put together. In driving to Kholm Red forces were credited with drawing the Ger- mans out of position by tricky feint- ing maheuvers, then smashing them one by one. Not only was this northern anchor of the German line seized, but the Pussians found evidence in town after town that the Germans had stocked up for a winter stand, Izvestia declared. Warehouses packed with food and military supplies were reported cap- tured. At recaptured Andreapol alone it said large stores of French wine, 1000 barrels of gasoline, 10,000 cans of Norwegian food and 150 freight cars laden with war supplies were taken. News is lacking of such sweeping advances on the southern front as in the northwest, but there have been indications of heavy engage- ments similar to those preceding yesterday's announcement of the recapture of Kholm and numerous sirategic centers in that area. » Another 10-Mile Advance. A 10-mile advance farther along the road beyond reclaimed Moz~ haisk toward Smolensk was an- nounced today with the recapture of Borodino, where Napoleon won his last great victory. Warfront dispatches from sectors farther south said Soviet forces were continuing their advance, lib- erating numerous places and in- flicting tremendous losses on' the re- treating Germans. Nazi counter- attacks with tanks were declared utterly defeated. In one undisclosed sector the Rus- slans announced a 13-mile advance in the last 24 hours. “The whole of the Tula region, 100 miles south of Moscow, has been completely freed from the German hooligans.” Pravda said. “The free- ing of all districts in the Moscow region now is approaching com- Ppletion. “A large part of the by-passed Kalinin region, 90 miles northwest of Moscow, is being freed. Liber- ation of the territories of Smolensk, Orel Kursk and & number of other regions now has begun.” Premier Stalin, who personally took over the defense commissariat last July, emerged meanwhile as the brains of the victorious Red Army sweep. 5 Military observers credited him with the Soviet plan of attack, based principally on surprise. Col. V. Derman of the Red Army said the offensive was carefully worked out to the minutest details and dates from the day the Russians stopped the Germans cold. Moved During Darkness. The Stalin plan called for artil- lery and infantry to be moved up during darkness. Whenever it was on a front skirting the Gulf of THE SUNDAY STAR, WASHINGTON, Sirte, north of Agedabia. D. C, JANUARY 25, 1942. LIBYA.—WAR BOOTY—A British soldier examines the mechanism of a German anti-aircraft gun mounted on a truck-tractor, captured by Allied armies in the Libyan desert. The main Brit- ish forces in Libya now are locked in a new tank battle with the counterattacking German Army —Wide World Photo. D. C. Finances (Continued From First Page.) | cluding emergeney reservoirs and mobile equipment. Federal Debt $12,362,000. | At the same time, the statement | of the Commissioners shows that the city already is in debt to the United States to the extent of some | $12,362,000 under various acts of Con- | gress, not including whatever debt | may accure under the through Con- gressional approval for a Federal | | advance under the amended Lan- | | ham Act. This debt may amount to | more than $2000,000, which would | raise the total considerably above | $14,000,000. Just what the Commissioners will | elect to do if Federal officials and Congress refuse increased grants to meet wartime means of protecting the National Capital was not stated, | ibut there were suggestions that a | boost in the District income tax | combined, perhaps. with a local sales | tax might be asked. However, there were indications | such steps would not be proposed until a last-ditch fight had been mace for assumption by the United States of its full responsibility toward the National Capital. The Fowler statement, approved ‘b,v the Commissioners, recited that during the past calendar year Con- | gress had approved regular, de- ficiency and supplemental approp- | riations for the District due to em- | ergency and, later, wartime condi- | tions which increased municipal ex- penditures by no less than $5238,- 860. Like Items in 1943 Budget. To this they added similar costs totaling $1,627,140 which the Com- missioners and the Budget Bureau | had approved for inclusion in the estimates for the fiscal year be- | ginning July 1, now awaiting action in the House and to the second to- |tal the Commissioners now add $11,308,3%0 which they have tenta- tively approved at requests of Dis- | trict department executives either as additions to the pending 1943 budget ;estimates {dr as defitiencles | for the last four months of the | current fiscal year. Among these items are funds: (1) To provide for the induction of | 500 special police at $5 a day for 313 days, plus employment of 100 more regular policemen, at a total cost, plus uniforms and equipment, of $1033220; (2) To provide for construction to accommodate 1,000 additional beds at Gallinger Munici- Figures on D. financial picture are as follows: First Deficiency Act, April 1, 1941: School building sites _ Street imiprovements ‘Washington Aqueduct: Protective fencing _ Water Department, system Sewers, assessment and permit Gallinger Hospital __ .. ‘Water Department, extension Metropolitan Police _ Street improvements ‘Washington Aqueduct, covered Public Act 316, November 21, 1941: Metropolitan Police Third Supplemental National December 17, 1941: Emergency rent control Street improvements . In 1943 D. C. Budget estimates: Sewers, construction Metropolitan Police Gallinger Hospital . Washington Aqueduct, reservoir bther items: ‘Metropolitan Police Maintenance and operation. Fire Department, for emergency under President’s emgrgency Recommended by director of pal Hospital and at the District | Tuberculosis Sanatorium at Glenn | Dale, Md., and to Permit employ- | ment of nearly 240 additional work- | ers at these places, at 2 total esti | P- W A loan. including interest to Juiy 1, 1942 mated cost of $3984,000; (3) To provide emergency fire-fighting fa- cilities and personnel, $798.870; | (4) To extend sewers and water | mains to meet emergency housing | replacements, $500,000; (5) To aug- | ment water and sewer facilities to | | meet conditions that will arise if | Washington's population is in-| creased by the expected 250,000 per- | sons in the next year, due to war- time operations here, $4,993,300. Extra Costs Top 18 Million. | From this tabulation, it would af- | | pear that the District's extra costs, | directly attributable to the war- time emergency; including appropri- | ations already approved by Con- gress and those now approved or tentatively approved by the Com- | missioners, total more than $18.000,- | 000, all chargeable, to date, to nor- mal District revenues. In fact,| Treasury officials a few days ago! | insisted that the District heads | | should sign a formal agreement for | | payment of interest on the $1.000,- 1000 advanced to the municipality , work. . 100,000 L 15,000 190,000 s i 2 52,600 distribution system 90.000 447,600 250,000 50,000 563,750 164,720 E 200,000 reservoir 400,000 15,700 e e 120,330 Defense Att, 22,570 - 1,911,620 130,000 2,063,570 $5,238,860 TABLE 11 | 437,140 -‘Ifll‘ - $1,627.140 $1,033,220 ........... 1,124,000 --$1,674,000 defense (pend- fund) . 798,870 500,000 sanitary engi- 4,993,300 $11,309,390 TABLE TIL Present Indebtednes® $8,804,707.94 215,000.00 2,192,958.54 Recorder of Deeds Building Capper-Cramton Act __ “Blackout Act” ____ Loan authorized under Lanham Act. ‘Situation Is Shown by Tables Prepared by Budget Director Fowler ‘The tables prepared by District of Columbia Budget Director Walter L. Fowler and adopted by the Commissioners to illustrate the District TABI Sewers, assessment and permit work Buildings and grounds, public schools. Conversion of hydroelectric station Additional guards and equipment__ extension Collection and disposal of refuse . Buildings and grounds, public schools. ‘Water Department, protective fencing.. Washington Aqueduct, covered reservoir. * Administration of Rent Control. . Sewers, assessment and permfl.r Collection and disposal of refuse. ‘Water Department, Anacostia main. Temporary hospital buildings Construction and equipment. Maintenance and operation._ Sewers and watermains (for emergency housing) neering (see exhibit “A")____ C. Finances LE 1. (Charges within the last year directly attributable to abnormal wartime activity.) $160,000 180,000 250,000 Additional Urgent Deficiency Act, May 24, 1941 D. C. Appropriation Act, July 1, 1941: Sewers, assessment and permit worl Collection and disposal of refuse. . Buildings and sites, public schools- Present Needs Tentatively Approved. Health Department (including Gallinger Hospi- tal and Tuberculosis Sanatoria) ing with Budget Bureau for consideration ? $12.362,666.48 | ' The following outline was given as “Exhibit A" referred to in Table 2, as an explanation of water and sewer needs for the national emergency here, to cost nearly $5,000,000, for which funds have been re- | quested by departmeny executives and tentatively approved by the Com- | missioners: 30,000,000-gallon third high reservoir.. 15,000,000-gallon reservoir at Fort Totten iy Capitol Hill, new water main and readjustment of trunk line mains ... . Chlorination plant af plant 60,000,000-gallon pump at sewage Engineering, etc., 15 per cent. treatment planli:.. 7 Addition of two sludge digestion chambers to sewage trea treatment plan;,: 5 Additional pipe line on third high Dalecarlia to Reno Reservoir Dalecarlia pumping station, first section._ ----- $1,000,000 400,000 250,000 210,000 tment - 230,000 52,000 100,000 $4,342,000 651,300 $4,993 300 though they may not share fully our municipal burden. By this I mean that it is quite possible that very necessary to bring up these units | under the District Blackout Act for | few of those who come will be clas- by day they were camouflaged. If a big operation had been ac- complished by day the occasion was chosen when flying weather was bad, making it impossible for Ger- man aerial scouts to see what was happening. The grand strategy worked out by Stalin in his Kremlin office, Col. Derman said, called primarily for outflanking the Germans from the west. This has been best accom- plished by ski troops snaking deep into the Nazi rear and causing great confusion among the Ger- mans. The Soviet chieftain received daily reports from Red scouis on German fortification groupings. ‘Weather conditions were studied closely and Russian troops dressed accordingly. Even the density of the ice on northwest front rivers and lakes was known to the inch when heavy Soviet tanks were to be used on their frozen surfaces. Paying tribute to Stalin’s careful preparations, Col. Derman said the offensive has been worked out so well that the Red Army has not suffered a single minor defeat. Despite his active generalship Stalin has not let the extra work keep him from the public. He ap- peared publicly at the Lenin cere- mony at the height of the Russian drive. But you do not see him on Mos- eow's streets any more than be- fore. Neither do you see his car N | | protection of life and property in|sified as residents for the purpose! | the National Capital although this ; | act of Congress made no .nention | | either of interest payments or when | | or how the advance should be re-! | paid to the United States. | District Budget Officer Fowler, in | | his appraisal of the emergency | | financial situation—which was in- | | dorsed by Commissioners Young an | Mason as their own statement—said: “We cannot deny or ignore the possible tragic implications which ‘thc’ present and near future situa- tion holds for this municipality. Present wartime activities are pre- senting problems far more complex than those which confronted us in 1917. We have endeavored to keep pace within the limits of anticipated revenues, plus an inadequate Fed- eral contribution of $6,000.000. Sees “City Within City.” “We must now realize that there is to be in all probability a city! within our city—a literal beehive of ‘,wnrtlme activity. This calls for re- | vision of estimates and a broader | | vision. The thousands upon thou-| | sands of additional workers and | families of workers will be entitled | to every municipal service, even sweep up and down the capital's | broad thoroughfares. How and where he lives during the offensive which has lifted his people to loud cheering, the Red Army still is as much & mystery to foreign newsmen as to the Russians. of paying income taxes. “Attention is also called to the fact that our revenues, like all other! by the Commissioners. The third | cities, undofibtedly, will be very vitally affected by the automobile and gasoline situation. We must, therefore, begin to think in terms| expect -outright grants from the/ of grants, loans and increased taxa- | shows our contribution thus far | directly attributable to abnormal wartime activity. In other words, were it not for the war effort, this burden would not have been as- }aumed. The second table shows our present_needs tentatively approved | table shows our present indebted- ness. | “For some of these needs we should Additional | Federal Government. d | tion. The first table presented below | loans may have to be sought. This | BUHL January Special © 10 MODERN STYLES! o LENSES & FRAME » ANY PRESCRIPTION GLASSES COMPLETE CPTiTAL 1.500,000 r P » ~ The Axis left these be! hind them. These German planes never got off the ground as Allied air forces struck at the Libyan des- ert airdrome where they were based. —Wide World Photo. Heavy-caliber German bombs abandoned at the Derna airport are examined by an officer who wof part in the British drive through Libya.—A. P. Photo. 11 Japanes; Warships [ Invasion Liner Upset, | 2 Other Vessels Hit In Raid Yesterday By the Associated Press. BATAVIA, N. E. I, Jan. 24— | Dutch bombers, maintaining aerial | supremacy over the Strait of Ma- cassar, upset a great Japanese inva- .{ slon liner and scored clean hits on | | & destrover and another transport today in their second assault in two | days on the enemy's southbound expeditionary fleets. They brought' their fwo-dsy: acore to 11 warships, transports or sup- | ply ships bombed with direct hits— | a grave blow to the Japanese naval | forces which are bent on extending | their line of invasion footholds southward along the coasts of Bor- neo and Celebes and thence to Java, heart of the Indies. In two days the Dutch have not lost a single plane. Today's_ attack was delivered off Balik Papan, the oil port which the Dutch have burned to the casing- heads to insure that the invader can salvage nothing he can use in a long time. | Japanese aircraft previously had | attacked Samarinda, -above Balik | Papan, presumably in an attempt to | neutralize air bases defending the 1/000.000,00 | Jower east coast of Borneo. How poorly they succeeded was mani- fest by the Netherlands air force returning to the attack today. | Actually, the Dutch planes are | believed to be operating from secret airdromes so well hidden in the in- land jungles that the Japanese have 4not been able to spy them out. | Today the Dutch bombardiers | used 300-kilo (660-pound) bombs to score two direct hits and several near misses on the big passenger | liner which, under the force of the blasts, rolled over on its side and turned keel up. ¥ | office believes in rigid economy and sacrifice to the end that every effort and every available dollar may be | used for the successful and hasty conclusion of the war. However, if | | 250,000 or more people are coming | soon, the expansion of our facilities | is absolutely essential. In prepara- tion for this, and the contingencies | which are bound to arise, this of- ;nce advises the Commissioners to | consider immediately the subject of increased revenues through addi- tional taxation for general and wa- ter fund purposes.” " Sovi;I Union I; Seen wea Sent Down by Duich Losing All Faith in Bombers in 2 Days Japanese Propaganda Russian Magazine Cites Potential Power Of U. S. and Britain By the Associated Press. KUIBYSHEV, Jan. 24. — The abundantly sown seed of Japanese propaganda against the United States and Britain is falling on un- fertile soil in the Soviet Union and observers are watching closely for the signs of a change in the trend of Russia’s relations with Japan. Although showered with Japan- ese circulars filled with ambitious laims, the Russians and their press | are showing marked sympathy for L the Americans and British, as well as confidence in their ultimate vic- tory. For one unofficial barometer of the trend between Russia and Japan, observers are keeping an eyve on Japanese Ambassador Yoshitsugu Tatekawa's negotiations for 2 renewal of the Soviet-Japan- ese fisheries pact. The agreement, which gives Japan certain fishing rights in waters off the Siberian coast, expired Decem- ber 31 and there has been no an- | nouncement of its renewal, which in | the past has come in mid-January. | Japanese claims of Pacific naval victories apparently have had little effect on the trend of Russian thought. In the latest issue of the Maga- zine, Bolshevik, an article by T. Yerhashev, widelv read Soviet naval commentator, said Japan is building 5000 to 6000 planes a year—and added that Britain and the United States together produce that many each month. “The main problem of the present war in the Pacific,” the article said, “is the problem of military and economic potentialities of the bel- ligerents. In the long run the course and outcome of the hostilities de- pends on economic strength and | ability to bear continued economic stoain = %' “The United States and Great Britain have everything necessary for protracted, tense war. They have only to win time to set in motion their enormous war poten- tialities. “Thus,” the article concluded, “we | see that the belligerents are in an | unequal position. Japan is forced to | hasten and by all means prefers | the smashing strategy or ‘blitz’ | Hitler strategy which has gone bankrupt in the war against the Soviet Union * * *.” OPEN CO. 5116 Visit Our Showroom SLIP COVERS Large and colorful selection of new spring fabrics expertly cut to fit properly and beautifully. Pinisheu vithy box pleats. Pre- season prices. ANY Two- § ) A.95 24 PIECE SUITE Extra Chairs, HOFFMANN UPHOLSTERERS and DECORATORS 244749 18th St. N.W. Buy Defense Savings Bonds Now! Eatimates cheerfully. submitted by our expert decorators in D. C,, nearby Md. or Va. without cost.. Call COL. 5116. EVENINGS CO. 5116 Free Parking el REUPHOLSTERING Furniture reupholstered and rebuilt with new filler, webbing and springs where needed. New appearance a n d condition. Prices include labor and material, SINGLE CHAIRS _____ $1 9’95 Any two-piece smite 34995 | Pocket Subs Like His, |Says Mexican Inventor B the Associated Press MEXICO CITY—A Mexican banker says the pocket submarines the Japanese used in the attack on Pearl Harbor appear similar to one he invented and turned over to the foreign ministry in 1936. Gonzalo Sanano Anita, of the Agricultural Credit Bank, said the published descriptions and pictures appear to describe the same: ma- chine he invented. He said if they were built from his plans, the plans must have been taken from the foreign relations files did not discuss them with any foreign government. Cold Salvages Water CAWKER CITY, Kans. (#).—A break in the city water main wasn't such a bad break after all. It caused the water tower to drain but the water flooded a nearby park and froze into a first-class skating rink. Washington . . . hence second floor of pianos to coming in. Every pigno Prices Start at (AMPBELL 2 DOORS NORTH because he 721 11th St. N.W. British Smash Back At Counteratfack of Germans in Libya Nazis Apparently Hit At Supply Depots Set Up in Desert By the Associated Press. CAIRO, Jan. 24.—Mobile columns of the British 8th army smashed tonight at the counterattacking forces of Nazi Gen. Erwin Rommel in a hard and sprawling battle of tarks on the ‘eastern side of the Cirenaican desert hump. The engagement was on a battle- | field of great size, in a triangle bounded by Agedabia, Saunnu, 42 | miles to the east, and Antelat, 30 | miles to the north. British Near East headquarters was without word of precise results, but felt able to report that the strong R. A. F. forces in the desert had done “great execution” in the bombing and strafing assaults on the enemy’s mechanized transports all around Agedabia. Using Several Columns. Gen. Rommel’s force was split in several columns, each with tanks. His immediate objection appeared to be destruction of the big depots of supply which the British are said to have established in the pres- ent battle area as a preliminary to continuation of their general drive | on Tripolitania. Gen. Rommel began his eastward thrust Wednesday, and the forces | which he now is deploying at Age- | dabia have covered some 125 miles from their Gulf of Sirte base at El Agheila. British forward troops | withdrew Thursday from Agedabia, | and the fighting now is in an area somewhat more than 80 miles below British-held Bengasi. While the Nazi general obviously has received appreciable reinforce- | ment in air power, man power and | probably tank power, his supply condition probably does not com= pare with that of the British. | R. A. F. Hits Tripoli. | In addition to its own ample stores the 8th Army captured enormous amounts of supplies from the Axis during its 400-mile advance west- ward. Against this is the factor of the long British lines of communi- — | cation through Egypt and eastern | Libya, but steps to ease this posi- tion have been taken recently. | Behind the Axis forces meanwhile | the R. A. F. kept smashing at Trip- oli, the enemy’s only sizeable sup- ply port, and a communique said a bomber raid Thursday night scat- tered dockside fires and set flames to two naval vessels, one of them apparently an anti-aircraft ship. ‘Children in Wartime' ToBe U.F. W. A. Subject “Children in Wartime" will be the subject of Miss Alice Mendham, leader in pre-school education for young children, at a meeting of the Women'’s Auxiliary of the United States Federal Workers 6f America, 1407 L street NW., at 8:15 pm. Wednesday. | 'Miss Mendham will describe the | experiences of Great Britain in car- ing for youngsters during the war. She also will discuss the necessity for protecting the children of Amer- ica by adequate day programs dur- ing the present period when many | women are being called into de- fense industries. | | | CLEARANCE SALE KIMBALL PIANOS To Make Room for Additional Stock There’s simply no warehouse space available in we must clear our entire make way for new models in our store drastically re- duced .in price for this sale—reduced as they may not be again for a long time to come. make your selection while stocks are” complete! SPINETS « CONSOLETTES « GRANDS A Few Pianos of Other Makes Included 519522 LIBERAL CREDIT TERMS Come in and MusIc co. NA. 3659 OF PALAIS ROYAL ‘ . A