Weather Forecast Increasing cloudiness, warmer; lowest tonight about 34: tomorrow cloudy, warmer, followed by light rain. Tem- peratures today—Highest, 44. at 2 p.m.; lowest, 29, at 5:15 a.m.

From the United States Weather Bureau report. Full Details on Paae A-2.

Closing New York Markets, Page 22.

An Evening Newspaper With the Full Day's News

LOCAL—NATIONAL—FOREIGN Associated Press and (/Pi Wirephotos. North American Newspaper Alliance. Chicago Daily News Foreign Service and The Star *

Staff Writers. Reporters and Photographers.

uFl Mesas Asseciated Frets.

89th YEAR. No. 35,296. WASHINGTON, D. C., THURSDAY, DECEMBER 19, 1940—SIXTY-SIX PAGES. *** THREE CENTS.

Italians Are Trapped in Bardia, British Blasting Tobruk Road; Churchill Expecting Invasion

JL. __

31,546 Prisoners Already Counted, Cairo Declares

BULLETINS. STRUGA, Yugoslavia (at the

Albanian border), Dec. 19 t/P*.— fleets of German transport planes were reported today to be shuttling Italian reinforcements across the Adriatic to the Al- banian battlefront in an effort to halt the Greek counter-inva- sion.

BASEL. Switzerland. Oh).—The newspaper Le Democrat of Dele- mont reported today "from a good source in Zurich" that freight and civilian traffic have been suspended on the Brenner rail- way line to permit the passage of German divisions who are on their way to Italy.

By the Associated Press.

CAIRO, Egypt, Dec. 19.—Italian rearguard forces left to defend Bar- dia, Libya's principal base in the frontier region, have been trapped and their way of escape to Tobruk is under aerial bombardment. Brit- ish war communiques declared to- night

“Advanced elements of our troops which have successfully contained numerically superior enemy forces in Bardia are being steadily rein-

* forced and the position of the rem-

nants of the beaten Italian army in that area can now be regarded as

precarious,” said a British general headquarters communique.

The Royal Air Force, recounting raids and reconnaissance which took British planes over the western desert battle zone and also over

the frontiers with Italian East Africa, reported:

"The Bardia-Tobruk road was

also bombed but little movement is seen.”

Land Patrols Active. Linked with aerial operations

against Italian-occupied Ethiopia and Eritrea were British land patrol operations.

"On the Sudan frontier our patrols were again active in the Kassala and Gallabat areas (facing Eritrea and Ethiopia, respectively), inflicting a

number of casualties on the enemy." said the communique.

General headquarters said that ^31.546 Italian prisoners, including

1.626 officers, had been counted already as the haul of the Libyan offensive and that several thousand more were being removed from battle areas.

** (An Admiralty communique is- sued in London told of continu- ing bombardment of Italian posi- tions along the coast and Prime Minister Churchill in his Com- mons address spoke of army operations.

(In fighting at Sidi Omar, the Prime Minister reported, 800 prisoners and a battery of ar-

tillery were captured. "Perhaps their hearts are not in their work,’’ Mr. Churchill said of the Italians.)

R. A. F. Fans Wide. Bardia, less than 10 airline miles

northwest of the junction of the Libyan-Egyptian frontiers, was an

important Italian supply base and port. The normal population is 2.370.

The R. A. F. fanned wide in its offensive. It made a “w-ave" attack two nights ago on Benina Airdrome, which its communique described as

•‘one of the heaviest raids of the war in the western desert,’’ destroy- ing 18 Italian planes and firing the airdrome.

A Rhodesian squadron raided Ital- ian flying fields and troops in Me- temma area of the Ethiopian-Sudan borderland, while others struck at Jebel Serobatib, in the Sudan-Erit- rea region.

With the fall or Bardia apparently Imminent there were indications that the Italians also were making preparations to abandon Tobruk, 70 miles to the west.

The British said their reconnais- sance planes had observed troop movements in the direction of Derna, 80 miles further west along the coast.

Number Trapped Uncertain. .

How many Italian troops still lay within the net the British were at- tempting to tighten around Bardia was uncertain here. The normal garrison, however, was said to be one division, and it was believed that this number has been aug- mented by remnants of the units routed at Sidi Barrani and Salum.

Heavy rains were said to have handicapped but not halted British mechanized units and the air force W'as said to be playing a major role in the advance despite adverse weather.

(The British radio, in a broad- cast heard by CBS. declared British airmen had shot down or put out of action more than 100 Italian planes during the last seven days while "probably” losing no more than five craft themselves.)

British Using Seized Stores. The British were said to be putting

to good use the great quantities of stores they were reported to have captured in driving the Italians out of Egypt.

The Italians’ only serious shortage appeared to be in metals. Many of the Italian troops had no steel helmets and many of their fortifi- cations had no barbed wire. The Italians also had little gasoline, for most of their vehicles operate on

oil, which was a disappointment to the British.

British Take Back 120 From Somaliland Raid

NAIROBI, Kenya Colony, Dec. 18 (Delayed) (PP).—British headquar- ters announced today that patrols which were reported to have raided El Wak in Italian Somaliland had retired across the Kenya border with approximately 120 prisoners after getting fire to buildings and supply depots.

Hitler Forced to Act in Next 2 Months, Commons Is Told

Armed Parity With Reich Seen in 1941; Losses in African Battle Put at 1,000

Text of Churchill Report, Page B-15.

Bs the Associated Press. LONDON. Dec. 19.—Adolf Hitler

needs "to do something now, or at any rate in the next two months,” Prime Minister Churchill declared today; therefore German invasion still is Britain’s “supreme danger.”

At the same time, in his pre- Christmas war review before the House of Commons, Mr. Churchill spoke joyfully of Britain's continu- ing offensive against Italy in Africa and optimistically of Britain's chances next year of armed parity with Germany. Britain is only half armed now, he said.

If Britain's 1941 strength is not used in defense of the British Isles,

Mr. Churchill said, it may be used in “other theaters.” but he did not say what they might be.

The Battle of Africa, he declared, has cost Britain less than 1,000 killed and wounded as against capture of at least 30,000 prisoners and much material, but above all had demon- strated the quality of British Em- pire forces, permitting Britain “to take bolder views than those open to us before.” The British were

contending against odds of 3, 4 and 5 to 1 in Libya, he declared.

Mr. Churchill suggested that the present tapering off of the German air siege of Britain might mean

“preparation for some other form of activity against Britain.” Bad ~~iSee CHURCHILL' Page A-21.)

Italians Reported Abandoning Key Albanian Towns

Occupation of Klisura And Tepeleni Near, Greeks Indicate

B> the Associated Press.

ATHENS, Dec. 19.—Unconfirmed reports from the Greek-Italian bat- tlefront in Albania said today that Italian forces had withdrawn from the key mountain towns of Klisura and Tepeleni. Another dispatch said that Greek occupation was imminent.

The Greeks apparently were fol- lowing the usual practice of delaying entrance until surrounding areas had been mopped up.

In the case of Tepeleni and Klisura in the middle sector of the front, the Fascist warriors were said to have withdrawn merely to heights about the towns, in position to fire on

Greek troops should they try at once to occupy the two places.

"Despite bad weather.” said one dispatch, “Greek columns are con- tinuing their advance, especially in the central sector where, after heavy artillery fire, they reached Klisura.

“The Italians abandoned their po- sitions, where they had been fight- ing for three days, and left in the hands of Greek troops abundant war

material and quite a few prisoners.” The current Greek offensive also

is aimed at the sea coast town of Chimara.

Meanwhile ,the British Royal Air Force told of a “most successful” at- tack yesterday on the port of Va- lona. which is in the path of the Greeks’ coastal column, 25 miles north of Chimara.

The British encountered “strong fighter opposition” and fought a 20- minute running engagement. One Italian plane was believed to have been downed and one British plane made a forced landing on its return to base.

Germans Are Reported In Taranto and Turin B' the Associated Pres*.

NEW YORK. Dec. 19.—The Co- lumbia Broadcasting System last night reported receipt of a wireless message from Belgrade. Yugoslavia, which said that authoritatve sources “stated German forces are now con- centrated in Taranto, Italy, and that a certain number are in Turin.-’

“No precise figures are available,” the message said. “According to

eye-witness reports reaching the same sources here, German troops were sighted early this week pass- ing southward through the Brenner Pass and others were seen aboard ship in the harbor of Trieste. These reports estimate the Trieste con- centration at one division” (about 15,000 men).

C. B. S. said that despite Italian government denials of infiltration of German troops into Italy, its cor-

respondent’s story of Tuesday from Belgrade was further confirmed by last night’s message.

If German soldiers actually are in Italy in force, it could mean that they are intending to help the Italians in Albania or will attempt to run the British blockade of Africa and aid the Italian forces in Libya.

Senator Johnson Is Added To Influenza Victims By the Associated Press.

SAN FRANCISCO, Dec. 19.—Cali- fornia's influenza epidemic added Senator Johnson, veteran Repub- lican member of the Senate, to its list today.

The 74-year-old Senator was con- fined to his home. His family and physician said his condition was not serious, but he was resting in bed as

a precaution. Thousands of Californians have

been stricken in the last few weeks with a mild form of influenza.

Christmas vacation started early for hundreds of school students as

numerous institutions closed because of the epidemic, which made huge cuts into attendance. ,

Senator and Mrs. Johnson re-

turned to San Francisco from Wash- ington a few days ago to spend the holidays and to visit their grand- son. Phillip B. Johnson, who is Ul in a hospital. %

British Again Smash At German-ltalian Communications

Mannheim Is Blasted Third Straight Night; Milan, Genoa Bombed

BULLETIN. LONDON (JP).—Londoners heard

air-raid sirens shrilling early this evening for the first time in three nights.

i ; B> the Associated Press.

LONDON. Dec. 19.—Three straight nights of R. A. P. bombardment of Mannheim, Southwestern German

; industrial, commercial and com- 1 munications center, were described today in well-informed quarters as

| part of a British move to smash ! communications between Germany

and Italy. Linked with the third attack last

night was an R. A. F. smash at Italy—a factory In Milan, docks at Genoa and an airdrome In Northern Italy, according to the Air Minis- try's announcement.

Informed quarters stressed the Mannheim raids, however, as an

attempt to smash communication links between the axis powers while British troops continued their pres- sure against Italian forces in Libya and British air and sea forces helped the Greeks fight Italy in Albania.

In the darkness last night R. A. F. bombers planted bombs amid the smoke of previous bombardments of Mannheim, the Air Ministry said.

Bombed 31 Times.

By British count, Mannheim has been bombed 31 times since the war started. Aside from its importance in axis communications, the city factories make submarine engines and provide other finished products needed by warring Germany.

Still another motive in the Mann- heim attack, it is believed, is the British wish to give successive re-

gions of Germany a taste of heavy raiding something like the Nazi air force has been giving to various sections of England. Fire damage was reported by the Air Ministry.

The ministry said four large new fires were started in Mannheim, “where smoke from fires of previous raids” still could be seen.

“At Milan,” a communique said, “a large area was seen to be blaz- in furiously.”

e submarine base at Lorient, in Nazi-occupied France, also was

attacaed, the ministry said. The British lost no planes in the

night's raiding, reported to have been carried out despite bad weather.

(The Swiss high command earlier had reported a new vio- lation of Swiss territory by “for- eign warplanes” which "crossed the Jura in a southeasterly di- rection,” the route frequently used in the past by British flyers raiding Italy.)

German Air Force Inactive. Although conditions over the

Channel were described as “not unfavorable,” the German air force remained inactive last night and for the second successive day the morning communique on aerial op-

(See MANNHEIM, Page A-147)

The Idea May Be O.K., Mr. President, but Will It Hold Water? #

•—

Christmas Money to Needy Has Doubled Happiness Value

Organizations' Gifts Brighten Homes That Would Be Dark on a Hopeless Day

Many in Washington have hit on a scheme for doubling their money between now and Christmas.

They double it in terms of human happiness—sending to The Star's Christmas Fund dollar bills and five-dollar bills and checks bigger yet. The money is going to families in extreme need- lighting a flash of Christmas joy < — —.

in Homes tnat now lace only dark- j ness. Your gift in the hands of a

mother of the needy will do more

good than you know. Bring or mail your contribution

; to Christmas House, outside The i Star Building at Eleventh street and Pennsylvania avenue N.W. Here is an account of what some of your fellow citizens did yesterday j for Yule cheer:

Employes of the Coast and j Geodetic Survey held a Christmas party in the Department of Com- merce auditorium, and presented $134.45 to The Star-Warner Bros.- N. B. C. campaign. Their Santa Claus also gave to Bill Coyle, radio

i director of The Star, 200 toys and 50 pounds of candy for distribution to underprivileged youngsters.

A woman, who listens to the N. B. C. Kibitzers broadcast their appeals for the Christmas fund, sent in her second gift.

"I had already given all I thought j (Continued on Page A-3, Column 1.) !

Christmas House Broadcasts

If you're in the vicinity of Christmas House, at Eleventh street and Pennsylvania ave-

nue N.W., at any of tne WMAL broadcasting periods, stop by to make a contribution and take part. Representatives of organ- izations can arrange to appear on one of the broadcasts by calling NAtional 5000 and ask- ing for Christmas House.

Today 12-12:15 P.M.

1:2* to 4:45 KM.

Tomorrow 9:45 to 10 A.M. 4:30-4.45 P.M. 7:15-7:30 PJW.

Freighter Beached After Crash With U. S. Battleship

The Arkansas Hits Cargo Vessel Early Today Off New Jersey

I Pi the Associated Press.

NEW YORK, Dec. 19.—A 26,100- ton battleship, the U. S. S. Arkansas, and a freighter collided in the dark, early morning hours today off the Jersey coast, damaging the cargo vessel so badly she had to be beached after limping 40 miles to New York Harbor.

The crash occurred off Seagirt about 3 a m. None of the personnel aboard either Ship was injured and the Arkansas, oldest battleship of its type in service, was practically un- damaged.

Listing heavily to port, the 5,148- ton freighter, the Melrose, was run

aground by her master, Capt. George E. Tubbs, on Red Hook Flats, a shallows off the Brooklyn shore, within sight of the Brooklyn dry- dock she had sought to reach.

The Arkansas—carrying about 500 Naval Reservists, the last group of some 5,000 undergoing training for commissions—also continued on to New York and dropped anchor in her customary spot in the Hudson.

Capt. John L. Hall, jr„ of Wil- liamsburg, Va„ commander of the battleship, said later, “We all saw the ship for about 15 or 20 minutes before we had this light collision— only a glancing blow—but it could not be avoided.” _He added that, pending an inves-

1 (See COLLISION, Page A^5.) I

Summary of Today's Star 1 Page Page.

Amusements D-10 Radio_D-8 Comics-D-8-9 Serial Story.. C-5 Editorials ..A-12 Society_B-3 Finance_A-21 Sports _D-l-3 Lost, Found _D-5 Woman’s Obituary ...A-14 Page_D-4

Foreign. Britain still only half armed,

Churchill says. Page A-l British again smash at Reich-Italian

communications. Page A-l 30,000 Italians taken prisoner, Eden

says. Page A-l Italians reported abandoning key

Albanian towns. Page A-l Matsuoka pleads for U. S. to stay out

of war. Page A-l Envoys to provide news of Medi-

terranean situation. Page A-19 Risto Ryti elected President of

Finland. Page B-5

Notional Logan-Walter bill objectives seen

approved next session. Page A-S New tactics to speed arms produc-

tion being studied. Page A-l

Military training plan for all youths of 21 predicted. Page A-l

Washington and Vicinity. Princess Juliana to watch press con-

ference today. Page A-18 Dirksen to explore possibility of

D. C. personnel cut. Page B-l

Editorial and Comment. tetters to The Star. Page A-12 Answers to Questions. Page A-12 This and That. Page A-12 David Lawrence. Page A-13 Constantine Brown. Page A-13 Jay Franklin. Page A-13 Gould Lincoln. Page A-13 George Fielding Eliot. Page A-13

Miscellany. After Dark. PageB-14 Christmas Story. Page B-18 Vital Statistics. Page C-4 Service Orders. Page C-4 Nature’s Children. Page D-5 Bedtime Story. Page D-8 Winning Contract. Page D-9 Cross-Word Puzzle. Page D-9 Uncle Ray's Corner. Page D-9

Draft System Change To 21-Year-Old 'Class' Plan Seen

European Principle Said by Sponsors to Have Many Advantages

By CARTER BROOKE JONES. A radical change in the selective

service law, replacing the present system of training available men

between the ages of 21 and 36 with a new plan of calling out each year all qualified men of 21, was

predicted today at a source high in the defense program.

C. A. Dykstra, director of selective service, conferred with President Roosevelt today and admitted as he left the White House that they had discussed proposed changes in the age limits of men liable for military service.

While no definite announcement came from the White House or selective service headquarters, it was

reported that the President is in- terested in the plan to lower the age of trainees. It was indicated that the draft director gave the President results of a study made by selective service officers of the “annual class” system.

This proposed change, currently under discussion by officers of the War Department and the Selective Service System, is expected to be advanced at the new session of Congress as an amendment to the act. It is understood that its sponsors will urge it as a more of less permanent defense policy.

The new plan—an old story in Europe—would retain the principle of selective service, but place it on a more practical and equitable basis, those favoring it contend.

Sponsors Claim Efficiency. The European system of com-

pulsory military service, sometimes known as the Swiss plan, calling out men for training when they reach a certain age and designating them afterward as the “class” of that year, is regarded by Army officers and some members of Con- gress as a more efficient plan and one even less likely to disturb the economic balance and democratic traditions of America than the machinery set up by the Selective Service Act of 1940.

Congress is expected to consider the annual class plan along with other suggested changes in the law, one of which would remove the limit of 900,000 on the number of selectees who may be in training at one time during peace.

Statisticans at the Census Bureau estimate that 1,300,000 Americans will reach the age of 21 during the next year.

If, as at present, jnen between the ages of 18 and 21 were allowed to volunteer, it was pointed out, there would be an annual reservoir of (See CONSCRIPTION, Page A-18.)

265 D. C. Registrants Take Physical Tests Tomorrow Night

296 to Get Examinations Tonight; All Will Have X-Rays Next Week

Selective service authorities today- ordered 265 registrants to report for physical examinations at four Washington Hospitals at 7 p.m. to- morrow. These, with 296 registrants ordered yesterday to appear for tests tonight, make a total of 561 pro- spective selectees out of which the 25 local area boards expect to fill the District’s January quota call of 202 men.

While most of the physical ex-

aminations will be completed in the hospital checkups, all of the regis- trants involved will report to the District Public Health Clinic here beginning early next week for chest X-rays and laboratory tests. As was the case in Washington's first quota call last month (in which SI selectees were inducted for one year of military training) final physical examinations will be given the se- lectees at the Army induction sta- tion for this area.

Induction Station Changed. Since the “token" induction in

November, 3d Corps Area headquar- ers has changed the induction sta- tion in the Washington area from a location at 458 Indiana avenue NW. to the 5th Regiment Armory in Bal- timore, Md.

Brig. Gen. Albert L. Cox, selective service executive for the District, announced today, however, that members of the 260th Coast Artil- lery Regiment, National Guard, will be inducted here instead of in Bal- timore or elsewhere, as had been scheduled. Col. Henry Pillsbury, 3d Corps Area medical officer, conferred with authorities here today regard- ing a place where the examinations for the Guardsmen might be held, and a decision on this matter is ex- pected in the next few days. The tests are expected to begin on Jan- uary 6. and continue at the rate of about 200 men a day until the anti- aircraft regiment members have all been given final checkups.

The Guardsmen, like the selective service men, also will be given chest X-rays and laboratory tests.

Registrants ordered to report to- morrow at 7 p.m. at local hospitals were:

Board No. 1 (Emergency Hospital). Albert P. Gault, jr„ 27, 1430

Thirty-third street N.W.; Sidney Blatt, 27, 4042 Fessenden street N.W.; Clay B. Cofer, 23, 3317 Dent street N.W.; Richard W. Rabak, 23, 2826 Thirty-ninth street N.W.; Joseph W. Widlick. 31, 3739 Benton street N.W.; Charles A. Estep, 24, 3117 N street N.W.; Harold Hughes, 24, 3325 N street N.W.; Arthur E- Farquhar, 21, 3307 O street N.W.; Francis L. King. 28. 3039 Q street N.W.; Wil- liam B. Briggs, 32, 1603 Thirtieth street N.W.: Vernon G. Mastin, 21, 1417 Thirty-fourth street N.W.; Lawrence A. Knapp. 35, 1645 Thirty- first street N.W.; Edward K. Adel- sheim, 25, 2209 Observatory place N.W., and Vivian M. Mastin, 23,1417 Thirty-fqprth street N.W.

Board No. 2 (Garfield Hospital). Claude J. West, 27, 2630 Woodley

place N.W.; Bruce F. Johnston, 28, 2709 Woodley road; Carl A. Landis, 35, 2929 Connecticut avenue N.W.; David Pincus, 25, 3412 Morrison street N.W.; Irving W. Thompson, 22, 2865 Twenty-ninth street N.W.;

(See DRAFT, Page A-2.)

Cabinet Considering New Defense Setup; British Get Go-Ahead

■I

Three-Man Command Is One of Four Or Five Proposals

By JOHN C. HENRY. President Roosevelt will present to

his cabinet today, summoned for an

unusual Thursday session, four or

five plans for reorganizing the ad- ministrative machinery of the de- fense program.

Whatever decisions or conclusions are reached in today's consideration of this problem will, in turn, be

placed before the National Defense ,

Commission at a White House meet- ing tomorrow. The weekly assem-

bly of the council at the White House has been postponed from its customary Thursday hour until to- morrow, to expedite whatever re-

visions may be agreed upon today. Among the alternatives to be

placed before the full cabinet today will be one for the formation of a

three-man super-council of defense, probably to be composed of the Secretaries of War and Navy and a

leading member of the present de- fense commission. For this post, William S. Knudsen, production chief, generally is under considera- tion, and the entire plan is presently being worked out in detail by War and Navy Department officials af- ter a White House conference late yesterday.

Chairman Might Be Named.

Nature of the other proposals for

revamping the defense set-up was

not made public in the White House announcement today that such a

revision is under consideration. There has been frequent specula- tion, however, that a simple ap- pointment of a Defense Commission chairman with more precise author- ity than now exists is one of the courses considered.

Disclosure of the intentions to revise the administrative defense machinery was made by Stephen T. Early, secretary to the President, during the questioning about re-

ports that there had been agree- ment in principle on the three-man supreme defense Council.

Actually, Mr. Early said, the plan was left with War and Navy De- partment heads after their White

; House meeting yesterday and a re-

i quest made to them by the Presi- dent that they return it with fur- ther details.

"The President has before him and is studying along with this one four or five plans,” Mr. Early said. "In an effort to ascertain what, if any, realignment of the defense set- up is necessary. He has yet to decide what part of these may be meritorious or should be applied.

Announcement to Follow.

“With the cabinet meeting this afternoon and the Defense Com- mission tomorrow, as soon as all

hands can work out and agree on

the necessary and best plan there will be an announcement of it.”

Meanwhile. Secretary of War Stimson intimated that President Roosevelt would head the three-man “super” defense council, if it is set up.

He gave a quotation from George Washington in praise of a single, unified command to lend support to his theory that President Roosevelt would retain direction and control over the proposed new council.

Mr. Stimson refused to comment on any details of the duties that would be imposed on such a coun- cil, although he confirmed reports of the administration plan when questioned about it at a press con- ference. At one time he referred to the matter as having been "reported from the White House.” When it was suggested to him that no offi- cial report had been issued from thpt source, he then referred to it as “reports published in the news- papers.”

When Mr. Stimson was questioned about the proposed Defense Coun- cil, he said that was a matter which the President has in charge and

(bee DEFENSE, Page A^l 8 J

Congress Won't Quit Until New Session Ends It, Barkley Says Br the Associated Press.

Senate Majority Leader Bark- ley said today that Congress would remain in session until it expires automatically with the opening of the new Congress January 3.

(Earlier story on page A-5.)

/

Stimson Moves to Protect Soldiers From Exploitation By tbe Associated Press.

Secretary of War Stimson, declar- ing soldiers had been exploited financially and subjected to a bad moral influence in unnamed com- munities near Fort Bennlng, Ga., announced today he would create an organization to deal with such conditions throughout the country.

He told his press conference there would be a committee to work toward improvement of health and sanitary conditions in towns near Army posts, and co-operate with law enforcement and other offi- cial agencies in the communities. The aim would be to control “un- desirable persons and places,” in- crease proper recreational facilities in the towns and protect soldiers "so far as we can from being ex-

ploited.”

Mr. Stimson said it was highly important that the camps where selectees would undergo a year's training be in a good neighborhood, and, if the neighborhood were not good, that it be bettered.

He said he had found on a recent visit to Port Bennlng that there was “great room for improvement in one of the neighboring towns—in all sorts of ways.”

Just as soon as the post at Ben- ning was increased* he said, and a

lot of young officers came in looking for quarters nearby, all the rents in the town went up threefold.

"That inflicted a great hardship upon the youngsters,” the Secretary declared.

"Conditions of a moral character in one of these towns was an even worse influence.”

England Is Told To Buy Pending Final Finance Plan

By BLAIR BOLLES. President Roosevelt and Secretary

of the Treasury Morgenthau this morning made a decision of vast

importance to the British cause, con-

cluding that the British buying rep- resentatives should be given the go- ahead sign at once to take all but the final steps in negotiating for the purchase here of new war ma-

terials without concern about pay- ment.

Mr. Morganthau, in announcing the decision at his press conference, said that actual British contract- signing would have to await con- sultation between Mr. Roosevelt and the Congress on the financing plan for British needs which the Presi- dent outlined Tuesday. Speed is the watchword, and Stephen Early, the White House secretary, explained the idea behind the arrangement:

"Instead of stopping their nego- tiation. let them go ahead and get

l everything ready for the actual ! signing of contracts when the new

j authority is at hand.” Ships Need Not Wait.

The construction of 60 cargo ships in American yards for the British will not have to await congressional sanction of the President's British- financing plan, Mr. Morgenthau said. He announced that the Brit- ish would be told they could go ahead at once with the business of signing contracts for building these vessels. Cargo ships are at the moment the most urgent British need.

The British have $50,000,000 in cash earmarked for the ship-build- ing. The vessels. Mr. Morgenthau said, are to be 410 feet long and weigh 9.300 tons each. It will take a year to a year and one-half to construct them.

The orders have yet to be placed, Mr. Morgenthau said. At the same time the administration's legal ad- visers are searching for a method under international law by which the United States might assume title to 37 Danish vessels docked or anchored in American ports and turn them over to the British.

British Provide List of Needs. Besides the ships and past orders,

l the British prospective war material purchases come to $3,000,000,000, one

j quarter said. On Mr. Morgenthau's ! desk during his press conference lay

a long catalogue of British needs. I which he said had been presented | to him yesterday. The list has been cleared, he said, by the Army, the

| Navy and the National Defense Ad- ; visory Commission, i The Secretary declined even to i hint at what the catalogue included. But the goods listed there are the things on which the British are

being told to negotiate for, provided they sign no contracts until Con- gress has had ample opportunity to study the financing plan.

From other sources it was learned by the Associated Press that the British -were seeking contracts for 12.000 additional planes, at a possible cost of $1,125,000,000 ; 2.000 to 2.500 more tanks, and guns and ammuni- tion costing about $1,700,000,000.

Secretary Morgenthau declined himself to estimate the amount of the new British potential contracts and Mr. Early at the Whitg House said he did not know what quantity of arms England would need to

j finish the war or whether she was

planning ahead for only a year or so. Orders, But No Money.

“Everybody admits and agrees." Mr. Early said, “that time is of the essence. Now comes a period when, I take it, the British authorities are worrying about and working upon orders to be made by them and for which they will not, have cash to pay."

These orders will come under the proposed leasing and mortgaging system outlined by Mr. Roosevelt, provided, it was apparent from what Mr. Morgenthau said, that Congress agrees with the President's idea. The Secretary would not discuss de- tails of the President's plan, but he revealed that the President's press conference Tuesday was the first time that the revolutionary plan had been made known to anybody out- side Government circles.

Not even the British themselves were aware of it, he said. Mr. Mor- genthau said he told Sir Frederick Phillips, the British Undersecretary of the Treasury, about it at 5 p.m. on Tuesday. The Secretary said that he had kept himself from all con- tact with the press or the British until that time on that day so he would do nothing to let the plan leak out prematurely. Form of “Consultation" Uncertain. The Treasury Secretary said he

did not know what form the “con- sultation" between the President and the Congress would take—whether Congress would be asked for legisla- tion on the finance plan or requested merely for its approval by resolution.

He made it clear, however, that “naturally we expect the British to wait for signing contracts until Congress has had a chance to study this plan.”

The orders for the desperately needed 60 cargo vessels may be placed by this week’s end, authori- tative circles said. The ships will be able to move at 10 to 11 knots and cost about $1,250,000 apiece or

perhaps less. When it was drawn to Mr. Morgenthau’s attention that 60 times $1,250,000 is a good deal more than the $50,000,000 earmarked by the British for the purpose, he said:

“If the ships cost more than that ($50,000,000), they are good for more tens, many more tens”—apparently tens of millions.

As for the Danish ships, their cap- tains have refused since the German occupation of Denmark in April a British offer that they permit Brit- ish seizure of the* vessels on the high seas. The Government s hope !■

(See BRITISH AID, Page A-5.)