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King Gustav Pledges Finns All 'Material Humanitarian Help' Refrains, However, From Any Suggestion of Military Help By the Associated Press. STOCKHOLM. Jan. 11.—King Gustav V, in a speech from the throne, said today the Swedish people's desire to help Finland was “manifested unmistakably” in hu manitarian aid, but he gave no sug gestion of possible military assist ance in the war against Soviet Russia. “Finland's involvement in armed conflict touches the Swedish people in the deepest way,” the King said. “The willingness to hurry assist ance to a brother people is mani fested unmistakably. Sweden feels an obligation to give Finland’s brave people every material humanitarian help which is possible while heeding its own position." Allusion to Neutral Stand. This last phrase was regarded as an allusion to Sweden's official atti tude of neutrality. Sweden is determined to defend her own independence under all cir cumstances, the King said, a senti ment voiced also by Prime Minister Per Albin Hansson, who spoke later. As members of the Riksdag met in the throne room to hear the King and Prime Minister, they learned that Swedens’ record budget of 800,000.000 kronor (about $200,000, 000) for military defense in the next fiscal year would cause a deficit for the first time in many years. The budget for ordinary’ expenses was placed at 1.475.000,000 kronor (about $366,000,000). with an esti mated income of 1,692,00,000 kronor (about $423,000,000), but the mili tary budget was set up as a special item outside this. The finance ministry reported it believed that civil and military needs could not both be covered from taxes or current income and that slightly less revenue was ex pected from income levies which this year produced 470,000,000 kro nor. French Aid for Finns A Duty, Says Herriot PARIS. Jan. 11 (JP).—Edouard Herriot. President of the Chamber of Deputies, asserted today that , "the interest of our own cause" makes it France's duty to give Fin land all the aid in her power. In a speech to the Chamber M. Herriot attacked the Russian gov ernment as "a regime seeking to crush the weak.” Six former Communist Deputies, threatened with expulsion from the Chamber, published a joint letter expressing their opposition to “poli cies that led to the invasion of Finland.” Referring to France's war aims. M. Herriot declared that President Roosevelt had set forth in his mes sage to Congress January 3 princi ples which are the same as those for which France and Britain are fight ing. (The President made no direct reference to allied war aims.) M. Herriot declared the allies are defending liberty, freedom of thought, moral law and democracy, which, he said, is the best form of government evolved by mankind. Finland (Continued From First Page.) Russian Army corps, the two others, of 15,000 or more men each, having been shattered previously in the eame general vicinity, with thou sands reported slain. Finns say that this army corps, the Ninth, has been taking a terrific beating for the past two weeks in Its attempt to sever the country at the narrow “waistline.” Following destruction of the 163d Division, which the Finns described as a rout, they said the 44th Divi sion was decimated and its rem nants were driven back across the border. The Finns reported they now hold a 30-mile frontier strip east of .Lake Kianta. free of enemy troops for the first time since the war began No vember 30. They said the last division of the armv corps was trapped at Kuk kamma, south of the scene of the other victories at Suomussalmi. Battalion Dispersed. A Finnish communique also an nounced that a Russian battalion was dispersed north of Lake Ladoga, with 200 killed and 40 taken prison ers. A communique of the Leningrad military headquarters described merely scouting activities and artil , lery fire at some places and said “nothing of importance” occurred yesterday in the campaign against Finland. The Finns reported the Russians were continuing to fortify their positions on the Karelian Isthmus and believed this was preparatory to a larger offensive on this south eastern front where the two armies have been locked since the war began. Red Attacks Smashed, Says Finn Communique HELSINKI, Jan. 11 (A5).—Smash ing of Russian attacks on the Salla and Petsamo sectors was reported In the Finnish Army’s daily com munique today. Salla is on Finland’s eastern front and Petsamo on the extreme north ern corridor to the Arctic Sea. The Russians were thrown back, it was said, after an attack for which they had prepared by artillery fire. These were the only developments reported in the communique, which was relatively short. The communique said: “Land: On the isthmus (Of Kare lia) and on the eastern frontier there was nothing new. In Lapland the enemy launched attacks pre ceded by artillery fire on January 10 in the direction of Salla and in Petsamo, but was repulsed. “Sea: On the naval front there was nothing important. "Air: On January 10 enemy air craft dropped a few bombs in the Tammisaari and Ruotsinpyhtaa dis tricts. In the latter locality six wom en were wounded. So far no loss of human life has been reported.” Salla is in Eastern Finland just above the Arctic Circle, north of the region referred to in the communi que as the “eastern frontier.” Tammisaari is a port in South-, west Finland, and Ruotsinpyhtaa is a town in South Central Finland near the coast. SOMEWHERE IN ENGLAND.—AFTER “GREATEST AIR BAT TLE”—These British bomber crews, leaving planes after their return from a raid, took part in the ‘‘greatest air battle in history,” the fight over Wilhelmshaven, Germany, December 18, in which, British sources said, between 80 and 100 planes were engaged. —A. P. Wirephoto. Will Meet 'Menace' Of American Navy, Japanese Warn Expansion by U. S. May Precipitate Race, Papers Predict Br ihe Associated Press. TOKIO. Jan. 11—Expansion of the United States Navy would pre cipitate a building race with Japan, newspapers predicted and a Japan ese navy spokesman hinted today. One newspaper called expansion “the American menace.” “Naturally the Japanese navy feels great concern,” the navy spokesman said of the $1,300,000,000 American naval program now be fore Congress. “Apparently it is designed to maintain the United States’ supe rior ratio even after lapse of the Washington treaty.” This treaty, which expired Jan uary 1, 1937, fixed the United States’ naval ratio to Japan at 5 to 3. Asked if he meant that the Jap anese navy would be increased, he said, "You can imagine what action would take place.” Cites Bloch Assignment The spokesman said construction of 52,000-ton United States war ships, mentioned as a possible early development by Admiral Harold R. Stark, chief of the United States Naval Operations, would “concern all naval powers.” He commented aiso mat assign ment of Admiral Claude Charles Bloch to the Hawaiian district "may be a measure to strengthen the United States Navy against Japan." Admiral Bloch has just concluded two years as commander in chief of 'he United States Fleet. Reappearance of the American proposal for naval improvements at the island of Guam was character ized bv the spokesman as "not a graceful attitude.” in view of the -Congress’ previous rejection of it. He declined to amplify his com ments, but Tokio newspaper were more forthright. May Have to Strengthen Fleet. "If the United States, in disregard of the fundamentally peaceful pro gram of the Japanese Navy, seeks to maintain its unjustifiable su periority,” said the newspaper Asahi, “Japan, in accordance with her policy of permitting no aggression, obviously would be compelled to strengthen her fleet sufficiently to meet the American menace.” It said that Admiral Stark's state ment in support of the Washington treaty ratio “most glaringly ex presses the intentions of the Amer ican Navy.” Nichi Nichi said, “the United States has merely indicated in un disguised terms its glaring hostility toward Japan. * * * "There can be no doubt that the United States feels insecure regard ing Japan, much of this being based on misunderstanding. But it is a curious American style of reasoning to attach so little importance to the sense of insecurity which its op pressive attitude toward Japan has created among Japanese. “It is this dogmatic and unre flecting attitude of the United States which one must fear most.” Battles (Continued From First Page.) her, but she suffered slight dam age from bullets. British fighters pursued the raiders. Southeast coast observers reported two Dornier planes flew over the coast at an altitude of 20,000 feet, bound southward. The Evening News sarid that the last 24 hours had been the busiest faced by the Royal Air Force since the war began and the British fly ers “have had to fight their fiercest battles." This was a reference to yesterday’s ; swift British retaliation for German I raids Tuesday on shipping off the I coast by a large-scale raid on the German Island of Sylt Air activity spurted over land also I with the allied high command’s j communique on yesterday’s events reporting two German planes downed on the western front. In this nothing was said of any allied loss, but the German high command said “two enemy planes were shot down” while the Germans lost one which crashed while chasing the in vaders. First Attack on Tyneside. Today's flights brought the first German air visits of the war to the Tyneside, important shipbuilding and shipping center. One plane appeared over South Shields, on the south bank of the Tyne. One report said three raiders reached the region and six British fighters went up to chase them away. Fragments of anti-aircraft shells fell in the streets of South Shields during 10 minutes of firing. Spec tators over a wide area were en dangered. but rushed out, neverthe less, to pick up the bits for souvenirs. Windows of a bus were shattered. After once being driven away, a raider circled and returned above South Shields and again was fired upon. mree large macs pianes, Deiievea by observers to be German, were 1 chased to sea by British fighters over ! the southeast coast of Scotland. East of London heavy anti-air craft firing was heard in a Kent town about 1 p.m. and shell bursts high in the sky were seen in the direction of the Essex coast, north | of Kent, although no planes were seen and no warning was sounded. The planes which drew the fire of the Essex coastal defenses were fly ing eastward over the Thames Es tuary Crowds on the cliffs of an east coast resort watched a bomber at tack a small steamer about 7 miles from shore. Explosions j*Tere heard and the steamer was seen to be blazing. A lifeboat put out while British fighters drove off the at tacker Subsequently another steamer, be lieved to be Italian, struck a mine off the east coast. The crew took to lifeboats and awaited a tug to pick them up as the regular lifeboat on ' the shore had gone to the aid of ! those from the bombed vessel. Battle Accounts Incomplete. Accounts of the large-scale Royal j Air Force raid on the German | island of Sylt yesterday still were incomplete, but observers regarded i them as a sign or Britain's readi ness to strike back hard against Nazi bombings. London newspapers said up to 50 British and German warplanes en gaged in a day-long fight over the fringe of islands on the northwest German coast yesterday, but offi cial sources said these reports ex ceeded the facts. Observers noted, however, that the big sea-air battle over Helgoland last December 18 was not recog nized as “the greatest air battle in history” until some time later, when the air ministry disclosed that 80 to 100 planes were involved. Clear Weather Spurs West Front Fighting PARIS, Jan. 11 (JP).—Return of clear weather has brought renewed aerial #and land fighting on the western front, latest reports showed today. Numerous clashes of small bodies of troops and several air battles were reported. The allied high command an nounced that two German planes were' brought down within British French lines yesterday. Other ad vices stated that a body of 50 French troops on a scouting expedition were set upon by a heavy detachment of Germans, but managed to fight their way to their own lines. The two German planes men tioned in today’s communique were shot down by pursuit ships in the course of “several aerial battles” yesterday, military informants said. No French losses were mentioned. The communique said: “Nothing to report during the night. Two enemy planes were brought down within our lines January 10.” Ernest W. Grant to Speak Ernest W. Grant, president of the Washington Astrological Associa tion. will lecture on “The Uranian Age: What Is It? When Is It?” at the monthly meeting of the associa tion in the Raleigh Hotel at 8 o'clock tonight. Northern Railroads Seek Rate Case Review By tne Associated Press. The North’s railroads served notice today they intend to seek a recon sideration of the Interstate Com merce Commission's recent decision in the long-fought South-to-North freight rate case. The Northern carriers filed a peti tion with the I. C. C. today asking a postponement of at least 60 days from February 1 in the effective date of the commission's order. They added that they were pre paring a petition asking reopening, reconsideration and reargument of the entire proceeding. By a 5 to 4 decision, the I. C. C., largely upholding the South, adopted a general principle that reasonably uniform rates should prevail from producing sections to common mar kets. The South long has contended that it has been retarded econom ically by ’'artificial freight rate bar riers." Rush Pleads Innocent In Registry Case Raphael Rush, formerly vice presi dent and general manager of the Bookniga Corp., today pleaded in nocent in District Court when ar raigned on a charge on aiding and abetting the firm's alleged failure to register with the State Department as required under the law affecting agents of foreign countries. Justice Peyton Gordon placed his bond at $1,500. Rumanians Refuse Anew to Deliver Land fo Hungary Ready, However, fo End Differences Short of Territory Cession 67 the Auociated Prese. BUCHAREST, Jan. 11.—Rumanian officials declare that, short of any cession of territory, Rumania is ready for settlement of long-stand ing differences with Hungary. The biggest bone of contention, however, is Hungary’s wish for re turn of Transylvania, gained by Rumania in the World War breakup of the Austro-Hungarian empire. Officials assert they would not even discuss a transfer of territory, but the feeling grows among foreign diplomats that King Carol shortly might yield to a reported Italian Hungarian proposal that Rumania promise territorial revision, effec tive after the European war. In return, it has been reported, Italy and Hungary would support Rumania against any Soviet Rus sian attack on Bessarabia, a Rus sian province before the World War. , Similar Plan for Bulgaria. Italy was understood to have a similar plan for settling differences between Rumania and Bulgaria, which desires return of the Dobruja district, which, like Transylvania, is an area of mixed nationalities that Rumania took after the war. The Italian plan was understood to call for outright cession of purely Hungarian and Bulgarian districts contiguous to Hungary and Bulgaria aqd for plebiscites in districts of mixed nationality. A transfer of nationalities from districts not adjacent to the present frontier also was envisioned. Reports from Belgrade indicated that Italy was trying to draw Yugo slavia also into her front against passible Russian expansion into Southeast Europe. Entente Meets February 2-4. The Yugoslav government an nounced that the Balkan entente would meet in Belgrade February 2-4. Entente members are Yugo slavia, Rumania, Greece and Tur key. It was assumed that Italian efforts to line up a Southeastern European front would be the center of entente attention, with the Ital ian and Bulgarian Ministers in Bel grade keeping in close contact with the conference. Rumanian officials in informally rejecting the idea of territorial con cessions. said that Rumania was quite willing to begin talks for eco nomic concessions and other moves to improve relations with Hungary. Budapest sources considered this Rumanian attitude as a natural starting point in the international poker game and professed belief that Bucharest was striving for the best possible terms. British Ship, Bound For New York, Lost At Philadelphia By the Associated Press. PHILADELPHIA, Jan. 11.— The King’s men came up the Delaware River yesterday hunting for New York. "Philadelphia?” exclaimed the master of the British freighter Australind. bound “from some where in Great Britain” for New York, when the ship was boarded by customs men. “Jove, there's been a mistake.” Air Industry Chief, Mikhail Kaganovich, Moved by Soviet Given New Assignment; M. Shakhurin Named Successor B1 the Associated Presi. MOSCOW, Jan. 11.—Soviet Rus sia has a new commissar for her aviation industry. The official news agency, Tass, announced last night that Mikhail M. Kaganovich had been relieved as commissar and “transferred to another post.” His successor, M. Shakhurin, is a newcomer to high Russian officialdom. No reason was given for the change. Kaganovich, brother of Lazarus Kaganovich, a confidant of Joseph Stalin and administrator in several successive key positions, formerly was assistant commissar of the defense industry, in which capacity he visited Washington in 1937. As administrative head of the de fense industry, Kaganovich planned assembly-line production of planes and sought to step up and improve manufacture of tanks and guns. A year ago the administration of the defense industry was divided into departments for aviation, ship building, ammunition and arma ment. Kaganovich took the avia tion commissariat. The Tass announcement said also that Y. A. Yakovleff. chairman of the Credentials Committee of the All-Union Congress, and Prof. Voronin, an authority on airplane construction and design, had been appointed as assistants to the new aviation commissar. Sharing foreigners’ interest in the transfer of Kaganovich was a new attack on Great Britain in the Com munist party newspaper Pravda. Britain Complains Of Discrimination In Neutrality Act Embassy Understood to Have Presented Protest To State Department By the Associated Pres*. A British protest that the Neu trality Act is discriminatory is un derstood to have been presented to the United States with the argu ment that neutral shippers are be ing aided to the disadvantage of the English. The protest complains that the Neutrality Act discriminates against Great Britain because it requires transfer of title of goods carried on BriMsh (or other belligerent) ships to certain parts of the world, but does not require it with regard to neutral vessels. One part of the law enacted at the special session of Congress last fall forbids export of goods from the United States to any country desig nated as a belligerent by the Presi dent until all right, title and inter est in them shall have been trans ferred to a foreign purchaser. The statute, however, exempts from this provision, neutral ships carrying goods other than war implements, to certain ports in the Western Hem isphere or on the Pacific or Indian Oceans. in effect, a Dutch freighter could pick up a cargo in New York con signed to Halifax, Nova Scotia, and not have to transfer title from the American producer to a foreign purchaser. Or a Japanese freighter could take on a cargo in San Fran cisco for India without transferring title. And in both cases a British freighter would have to obtain i transfer before it could sail. The protest is understood to have been presented to the State De partment by the British Embassy on behalf of the Chamber of Ship ping of London, an organization of shippers. It is under consideration by the department, but officials in dicated that nothing could be done without changing the law. i _ Dies in Hospital 'Home' ST. LOUIS. Jan. 11 (/F).—Thomas W. Lanahan suffered a broken leg in 1926 and was taken to St. John's Hospital. He liked the service and people so much he made the hos pital his home. * After 14 * years. Lanahan, St. John's oldest "patient.” died Sun day of pneumonia. A retired shoe merchant, he was 87 years old. BefflAe you Buy iee tlul Value! A BRAND NEW, FULL 88 NOTE SPINET PIANO NEWEST, MOST POPULAR TYPE Only *225 ON VERY EASY TERMS A piano that was made to sell for $275! Not only is it well-designed but also well-built and well-toned for a small instrument! Has every usual piano feature . . . full 88-note key board, standard action, heavy posted back, mothproofed and damp proofed hammers, etc., and carries a full long time guarantee. In other words, a good, sturdy little spinet at a price $50 less than you would ex pect to pay for a piano of its quality. *4. We are exclusive local agents for Kuabe, Wurlit ter, Fischer, Mathushek, Estey and other pianos. NATIONAL 4730 I Kuppenheimer and I I Grosner Suits and I I Overcoats! I For Suits and Overcoats — | Group One—The $29.75 and j $35 Suits are now $24.75. j Group Two—The $35, $40 and j $42.50 Suits, including some Kuppenheimers, are $29.75. | Group Three — The $42.50, j $45 and $50 Kuppenheimer j Suits and Overcoats are ! $34.75. Group Four—$50 and $65 Suits and Overcoats, $44.75. 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