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Pair, warmer tonight, lowest temperature about 25. Temperatures today—Highest. 39, at 4 p.m.; lowest, 13, at 7 a.m. From Ui* United Bute* Weather Bureau Be port. Full DetaU* on Pate A-2. Closing N. Y. Markets—Sales, Page 14. NIGHT FINAL SPORTS (**> Means Associated Press. 90th YEAE. No. 35,685. Washington, d. c., Monday, January 12, 1942-thirty-two pages. THREE CENTS. U. S. MAPS $400,000,000 RUBBER INDUSTRY Late News Bulletins Army Transport Burns in Alaskan Waters Destruction by fire of the Army transport Cliveden in Alaskan waters was reported late.today by the War Depart ment. The ship, a combinstion passenger and freight vessel of 7,314 tons, was said to be a total loss, but all personnel were saved. The cause of the fire is being investigated, the War Department said, without indicating whether it was believed to be enemy action. The loss was reported in a late day communique which did not mention developments in the Philippines. 9 Ecuador Clears Two Zones of Foreigners GUAYAQUIL, Ecuador <>P>.—All foreigners were ordered today to leave the Salinas and Santa Elena regions within 24 hours. Those sections, along Ecuador's Pacific coast, re cently were declared zones of military and continental defense. Two of the largest hotels at Salinas are under Italian management. Admiral Hart in East Indies The Navy said late today Admiral Thomas C. Hart, Allied naval commander in chief and commander of the United States Asiatic Fleet, is in the Dutch East Indies. The Navy would give no details of the admiral’s trip or say how he traveled, but it did say he had been in the region for a week. Singapore Has Long Air-Raid Alarms SINGAPORE UP).—.Air-raid warnings were ir; force almost continuously this afternoon, but in the downtown area only British fighter planes were seen in the sky. Some bombs were dropped in outlying areas shortly after midday. Nazi General Reported Killed in Russia LONDON <£>).—'The German radio reported today that Brig Gen. Richard Hermann had been killed in. action on the eastern front. Two Benning Flyers Killed COLUMBUS, Ga. (£*>.—'Two Fort Benning flyers were killed instantly today in the crash of a small observation plane during a training flight. The dead were identified as Sec ond Lt. Lucious D. Edwards, 24. of Yazoo City, Miss., a member of Mississippi State’s varsity football team in 1940, and Pvt. Clarence A. Puder, 23. of Dover, N. J. Mayors Hear Biddle Warn Against Persecution of Aliens (Earlier Story on Page A-l.) Attorney General Biddle today warned the United States Confer ence of Mayors against persecution of aliens and declared “unauthorized prosecution becomes undeserved per secution.” He pointed out there were proper authorities to deal with the alien and said that, though at war, civil ians should not try to take matters into their own hands. “The F. B. I. has a job on its hands,” he said. “But those hands are steady; they are controlled from nerve centers which insist upon strict adherence to democratic principles. When they close upon forces seeking to destroy the greatest Nation ever founded upon such principles, those hands have a strong grip.” The Attorney General asked the mayors meeting at the Mayflower Hotel “to impress employers in your communities with the obliga tion that now rests squarely upon them, to keep aliens employed wher ever such employment is feasible ... In no industry should the manage ment direct wholesale layoffs of present employes on the grounds they are aliens Malcolm MacDonald, British high commissioner to Canada, told the conference that nearly 750.000 houses were damaged in London during the intensive months of air raids and that all but a compara tively small percentage already were "tolerably habitable” again. "Altogether a few millions of peo ple in Britain must have been dis placed at one time or another by Hitler s bombs and replaced by the local authorities. It is one of the greatest housing miracles in the his tory of the numan race,” he de clared. Mr. MacDonald said there was “no nobler page” in the history of Brit ain's municipal government than that made by local authorities work ing in harmony in the present war. Wages Will Offset Railway War Profits, Carriers Contend Ten Per Cent Increase In Rates Fair Return, I.C.C. Is Told By the Associated Press. ST. LOUIS, Jan. 12— R. V. Fletcher, general counsel for the \ American Association of Railroads, i estimated today more than $362,-! 000.000 would be required by the Nation's railroads to meet higher wages and increased operating costs this year. He compared this to an estimated increase of $358,911,000 in revenue resulting from defense hauling and increased passenger travel. Chief spokesman for the railroads in their bid for a general 10 per cent increase in freight and passenger rates, Mr. Fletcher was the princi pal rebuttal witness as the Inter state Commerce Commission heard final arguments in the case. More than 250 witnesses repre senting railroads, water carriers— also seeking a 10 per cent increase business, producing and shipping interests throughout the country appeared before three members of the commission at preliminary hear ings on the measure last week. Arguing the proposed 10 per cent hike would bring no more than a “f»jr return” on the valuation of railroad properties, Mr. Fletcher de clared any increases in rail revenue due to the war "will be offset” by decreased shipment of civilian goods. He labeled this his answer to crit ics who maintain the railroads would enjoy sufficient increased business to meet the higher wage and operat ing demands. Mr. Fletcher asserted there were many other “hidden costs” linked with the recent pay roll increase resulting from a mediation agree ment. He cited the increased cost of equipment, higher taxes, salary adjustments for thousands of work ers who are not members of railroad unions and special services due to the war emergency. In discussing the latter, Mr. Fletcher explained the railroads often were called upon to move war materials and troops quickly without consideration of economy. Delegates Converging On Rio for Parley I By the Associated Press. | RIO DE JANEIRO, Brazil, Jan. 12. ! —Foreign ministers of the American republics converged on this capital i today for the conference to deter mine the Western Hemisphere* stand in the World War. The meet ing starts Thursday. Two planes carrying United States Undersecretary of State Sumner Welles and aides reached Belem in Northern Brazil yesterday. Foreign Minister Enrique Ruiz Guinazu of Argentina remained in Buenos Aires because of "a slight indisposition,” but he will leave as soon as his condition permits. Racing Results ! Rossvan’s, Other Selections and i Entries for Tomorrow, Pa*e 2-X. | Tropical Park I B> the Associated Press. I FIRST RACE—Purse. $1,000; claiming; 4-year-olds and upward: H furlongs. Chance Run (Brunelle) 91.40 37.90 25.00 Rissa 'Duncan) 35.30 22.06 Patroi Flight iAtkinson) 8.20 Time. 1:16* s. Also ran—Greenski. Yellow Mask. All Time High. Set. Trimmed. Old Book, Hill'a Palm. Hi-Light. Wha Hae. SECOND RACE—Purse. $1,000: special weights; maiden 3-year-olds: 6 furlongs. Bob s Dream (Bohn) 42.20 12.fio 7.90 Tee Midge iBreen) 4.40 3.50 aPull Over iDay) 5.30 Time. 1:14%. Also rkn—False Play. Easy Jack. Dan's Choice. aTorian. Gay Fad. Here Now. Lease Lend. a E K. Bryson entry. (Daily Double paid $776.90.) THIRD RACE—Purse. $1,000; claim ing: 4-year-o!ds: 6 furlongs. Bright Arc (Lindbergi 6.60 3.70 2.60 Harry Helman tSkelly) 4.50 2.90 ' Down Six (Meade) 2 50 Time. 1:13. Also ran—Sameron. Bulldinger and Belmar Arra. FOURTH RACE—Purse. $1,000: claim ing: 3-year-olds: 1 mile and 70 yards. Miss Carmen (M hrt'ns) 18.70 8.So o.8o Rosy Dollar (Mernell) 5.90 4.10 Marval (Strickler) 9.00 Time, 1:46%. Also ran—Infant Queen. Speedier. Dot Says Not. The Dancer. Deneb. Muskrat. Valdina Fair. Two Ways. Jacobelle. FIFTH RACE—Purse. $1,000: claiming: 4-year-olds and upward: 6 furlongs. Biasing Pan (Arcaro) 9.70 4.70 3.30 La Joconde (McCreary) 5.80 4.00 Star of Padula (Meade) 3.70 Time, 1:13%. Also ran—Balllnderry. Throttle Wide, Anopheles. Chance Sord. SIXTH RACE—Purse. $1,200: allow ances: 4-year-olds and upward; 6 furlongs. De Kalb (Arcaro) 3.80 2.50 out Doublrab (Haskell) 2.80 out Alaklng (Skelly) out Time. 1:11%. Also ran—Sir Marlboro. Lady Waterloo. SEVENTH RACE—Purse. $1,000: claim ing: 4-year-olds and upward; 1A miles. Unknown Land (Smith) 6.80 3.50 2.50 Dear Yankee (Day) 4.80 3.00 Burning Stick (Roberts) 3.00 Time. 1:40 1-5. Also ran—Brown Bomb. Gallant Play and Gay Man. Postal Aides Dispute Hill's Mail Bag Story Say He Ordered Sack; Brought From Denrett's Office (Earlier Story on Page A-l.) Three employes of the House post offlcr today gave the lie to alleged g-.md jury statements by George Hll, a secretary to Rep resentatiie Hamilton Fish. They tod of Mr. Hill's ordering them to ake eight mail sacks— which hac,been brought at his re quest for . "rush pickup’’ from the office of -rescott • Dennett-ee the sixth-floor storeroom of Mr. Pish in the nev House Office Building. Mr. Fisl s secretary is on trial in District Court for perjury. One count charges him with falsely tell ing the gand jury which was in vestigating Nazi activities here that he did no. order the bags placed in this storeixim. Three imy They Heard Orders. Those Tho testified they heard such orde s were Charles Wilson. Irving Q inn, jr., and Michael O'Gorman Dennett was secretary-treasurer of the Islfnds for War Debts Com- j mittee, vhich the Government claims w.s subsidized by George Sylvester Viereck, registered Ger man agen . Today Lester E. Purcell, grand jur' poll clerk, testified that on Septenber 19, 1941. at about 9 a m., a su.pena was served on Den nett to ajpear for the first time before th* grand jury. Frank R Monroe, f(reman of the House mail ing platfo m. testified that shortly after 9 aji. Mr. Hill asked for the "rush piclup” at the Dendett office. ; Before iecessing for the day, the jury hear* Defense Attorney John J. O'Conior shout charges that a speech foind in one of the mail bags figuring li the case "was planted there.” Hitler ‘Interview’ Displayed. Prosecuor Maloney had extracted from th* mall bag an envelope franked 'ay former Representative Tborkelso? of Montana containing a purport xl interview with Hitler, in which trie Nazi leader was quoted as saying: ‘‘Therefore. I say—Amer ica for th* Americans; Europe for the Europeans." Mr. O'C >nnor shouted: *‘X am will ing to sa; that Thorkelson s speech was planed there. This bag has been in tie Department of Justice. 1 want th s mail bag sealed and kept out of tie hands of the Depart ment of /ustice." 2 Indited in Smuggling Of Plal num to Nazis By the Associated Pres*. NEW tORK. Jan. 12—A Federal grand ju.y today indicted two dia mond muxhants on charges of con spiracy tc violate the Export Control Act throigh illegal shipments of platinum from New York to Rio de Janeiro, vhere the metal reputedly was turn’d over to Axis agents, and the illega.' exportation of platinum. Alexamer RadbiU. 38-year-old New Yoner. was charged with con spiracy it one count and with trans portation in two counts, and Al phonse I urkdjibachian. trading In Rio De Janeiro, was accused of conspiracy. Both are Brazilian citi zens. Th. maximum penalty under each indctment is two years' im prisonmeit plus a $10,000 fine on each couit. Hurled: bachian was said to have disposed 'f the platinum at from 70 to 100 pe‘ cent more than its value in New \ork or Brazil. Radbill was arrested last month and held in $1,000 bnl for the grand jury, but his co-dtfendant has not been ap- | prehendel. Long A de Tells Senators He Left Poitics After Hatch Acf (Earler Story on Page A-7.) By the Asnciatfd Pres?. Heiber, W. Christenberry today told a Senate Judiciary Subcommit tee cons.dering his nomination for United S tates district attorney at New Orleans he had not engaged in politics snce adoption of the Hatch Act. A fomer political worker for the late Serator Huey P. Long, Mr. Christenberry testified he had sup plied Sei ator Long with some of the material the Senator used in a Sen ate speech in 1935 dealing with what Senator »ng charged was a plot to i assassinfje him. He sail he had listened to politi cal foes of Senator Long from an’ adjoinin/ hotel room and reported what he heard to the former Louisi ana Senator. Earlie in the day O. John Rogge, former assistant Attorney General, who prcsecuted Louisiana political cases in 1939 and 1940, had testified he feit Mr. Christenberry's loyalty to a political organization exceeded his loya.ty to the Justice Depart ment. Freight Train Wrecked , By the As jciated mu. SOUT4 BEND, Ind., Jan. 12 UP.— Five of he 53 cars of a west bound New Yoit Central freight train were derailed here today when the engine struck a rail patch at a crossover and brok' loose from the train. No one was nurt. Police investigated to determiie whether the wreck might I have be*n caused by saboteurs. a NEW DEFENSE EXECUTIVE—Dean James M. Landis of Har vard law school (right), new civilian defense executive, is shown with Mayor La Guardia, director of civilian defense, and Mrs. Roosevelt, assistant director. Mr. Landis had just arrived in Washington to take over his duties when this photograph was ; made today. (Story on Page A-l.) —A. P. Photo. I Trial Starts lor 61 In 'Million-Dollar' Lottery Ring Case Charged With Using Mails in Scheme Based On Treasury Balance By the Associated Press. PITTSBURGH, Jan. 12 —Sixty- ( one persons, including one woman. | went on trial In Federal Court here today, charged with violations of postal laws In the operation of an eight-state lottery- ring which Post Office agents have described as a "million-dollar” enterprise and one j of the largest of its kind in the Na- , tion. Of the 71 men,and women indicted Tut February 28, thrfc pleaded guilty today, four entered pleas of no defense and one man failed to appear. Two of the defendants have died since the indictments were re turned. The defendants are charged with using the malls for the furtherance of a lottery and with conspiracy to violate postal regulations through distribution of materials for a lot- ! tery based on the Treasury balance and sports results. The Indictments followed an 18 month investigation of the organi zation, known as Pool Owners’ As sociation, in Pennsylvania. New Jer sey, Maryland, Ohio. New York, Massachusetts, Florida and Dela ware. Among the 61 who pleaded in nocent were Louis Cohen, former Boston attorney, of Wilmington, Del.: his brothers, Joseph of Cleve ; land. Frank of Syracuse, N. Y.; i Charles of Albany, N. Y„ and Harry ; of Philadelphia. The indictments charged that the four Cohens, with two brothers-in law, Joseph C. Ginsburg of Pitts burgh and Samuel Bornstein of Philadelphia, were the founders and principal operators df the organi zation. Truman Says President Wants Probe Continued President Roosevelt said today he wants the Senate committee inves tigating national defense to con tinue its work. Senator Truman, Democrat, of Missouri, the com mittee’s chairman, reported to the press after talking with Mr. Roose velt at the White House. Senator Truman said that in view of Mr. Roosevelt's wish, he would request the Senate for more funds to finance the committee’s activities. The committee so far has received $40,000. The Senator intends to make his request after publication of the committee interim report, ex pected in the next 10 days. Mr. Roosevelt told him the committee had done a good job and that It should be continued. The Senator recalled that he talked with the President before he launched the national defense in vestigation and that the President encouraged him to begin it on the ground that it was wiser and more profitable to make such an Inquiry before war than afterward. Gen. Pratt to Command At Trinidad in Caribbean Reports that Maj. Gen. Henry C. Pratt, formerly of Baltimore, has succeeded Brig. Gen. Ralph Talbott as commander of the Trinidad base in the Caribbean, were confirmed by the War Department today. Gen. Pratt formerly commanded the 3d Corps Area, having been suc ceeded at that post last week by Maj. Gen. Milton A. Reckon!, for mer 39th Division commander. Gen. Talbott has not been trans ferred as yet from Trinidad. New Jersey Jurist Dies PRINCETON, N. J., Jan. 13 OP).— Vice Chancellor Malcolm O. Bu chanan, a member of the New Jersey Court of Chancery since 1919, died today of a heart ailment. He would have been 61 March 10. * Disease, Disunity and Disaster Stalking Hitle/s Legions Tropps in Russia Fighting Typhus, While Reports of Disunity Spread to Navy (Earlier Stories on Pages A-l and A-3.) Br the Associated Press. Disease, disunity and military disaster stalked the once con quering legions of Adolf Hitler today and. barring surprises, seemed to be hastening the day of Hitlerism's ultimate defeat. Hundreds of additional doctors < and nurses were reported by the Berlin correspondent of a Swiss newspaper to have been rushed re cently to the eastern front to com bat a wave of vermin-spread typhus, | both among the wavering troops in Russia and behind the lines in con- j quered countries. German troops were reported engaged in a “battle against lice." Reliable sources in London de- ! dared that dissension in tha Nazi , high command—primarily a split , over th# reverses In Russia—now j had spread to the navy, with a j sharp disagreement between Grand i Admiral Erich Raeder and his sub- j marine chief, Vice Admiral Karl Doenitz, over the way the battle of the Atlantic is going. The London Star also quoted a] Moscow broadcast that Field Mar shal Gen. Wilhelm Keitel, chief of the Nazi high command, suddenly had been taken ill. The Keitel re ! port has not been verified. Norwegians Face Arrest. Berlin itself added a footnote to the chapter of European unrest with j : an announcement that all former officers of the Norwegian air force and navy had been ordered arrested because some 100 of their number 1 had escaped to England to fight for I liberation of Norway. The announcement said the Nor wegian officers, released after cessa- ! tion of German-Norwegian hostili ties. were being rounded up under an order issued by Josef Terboven, German commander in Norway. Another decree issued by Ter boven ordered arrest of 20 former high court officials and close friends of the Norwegian royal house in re prisal “for the kidnaping of eight members of the National Sampling "-1 ^Quisling* party by Englishmen in violation of international law.'' The British radio relayed a report from the German-controlled Sta vanger radio that homes of Norwe gians who have gone to England are being burned and that near rela tives are being arrested. The B B. C. broadcast was heard in New York by N. B. C. Frenchman Executed. Newspapers reaching Vichy from Bordeaux told of the execution of a Frenchman by a Nazi firing squad for posaessing firearms, while at Doual, Nord Department. 28 so called Communist suspects, six In absentia, were reported condemned to death or life imprisonment. The British radio quoted a report from Switzerland that 62 German soldiers had been executed at Besancon. occupied France, because they mutinied against orders to re turn to the Russian front after a furlough. In Holland Nazi leaders were try ing to quiet Dutch anxiety following a statement by the Nazi civil admin istrator. Dr. Arthur Seysz-Inquart, that Germany planned to annex the Netherlands after the war. Plan Is Denied. Anton Mussert, the Dutch Nazi leader who has just returned from extensive discussions in Berlin, is sued a statement widely published J in the Netherlands press. “Germany doesn't intend to treat Holland either as a colony or as a protectorate after the war,” he said. "It is rather contemplated to estab lish a natural connection and com munity between Holland and Ger many.” He did not explain what he meant by “natural connection and com munity." Tunney Asks Two-Fisted Men, Not 'Smokes and Hostesses' BT tfcc Associated Press. NEW YORK, Jan. 12.—Lt. Comdr. J. J. “Gene” Tunney said today that he favored vigorous athletic activities, including boxing and rope skipping, as morale builders for service men rather than “smokes for the Yanks and the gentle ministrations of hos tesses.” The former heavyweight boxing champion said in an interview that the greatest morale he had witnessed was in the United States Marine Corpe. in 1917-18, “where they got up at 5:30 in the morning and learned the trade oftwo-fisted fighting men —warriors with a purpose.” Sports, he added, would do more for service men “than all the civilian concern about their comfort and en tertainment.” Comdr. Tunnev was here to enlist chief petty officers for duty as physical instructors. Among applicants were Chester Gladchuk, Boston College All-Amer ican football player in 1940 and now with the professional New York Giants; Robert Tierney, former Princeton football player: John T. Kelly, Holy Cross halfback several years ago, and James OHora, physi cal instructor at Penn State. Summary of Today's Star Page. Amusements. B-14 Comics B-1Z-13 Editorials ..A-8 Editorial Articles . A-9 Finance ...A-14 Legal Notices . B-ll Page. Obituary .-A-1,0 Radio _B-12 Serial -B-7 Society_ B-3 Sports A-12-13 Where to Go. A-16 Woman’s Page -B-9 Foreign. Dutch hammering Japs as British retire in Malaya. Page A-l Entire Philippine line under new attack from air. Page. A-l Trapping of two Nazi regiments claimed by Russians. Page A-l Nazis rush doctors to Russian front to combat typhus. Page A-l Fifteen known dead in Quebec fire; investigation started. Page A-5 Nazis reported pressing Petaln to break with U. S. Page A-5 Nazi oil engineers drilling steadily for new deposits. Page A-C Notional. Viereck withholds answers in Fish aide case. Page A-l President to see chairmen on agency removals. Page A-l Knox reviews progress of war on two oceans. Page A-l Wickard defends plan to control food prices. Page A-2 Price ceiling placed on auto tire re treading. Page A-6 House group studies automobile sit uation. Page A-6 Washington and Vicinity. Joint committee takes up price bill. Page A-2 Four killed, two hurt in crash" near Ellicott City. Md. Page A-2 One death reported as D. C. has cold est day since 1936. Page A-4 New Apostolic Mission House dedi cated at C. U. Page A-6 Committees named for Shrine cir cus. Page A-16 D. C. civilian defense needs more volunteer workers. Page B-l 38 petitions filed first day with rent board. Page B-l Palmer asks funds for housing Fed eral workers here. Page B-l Mrs. Roosevelt to open Mile o’ Dimes drive today. Page B-l Commissioners deny Geographic Society tax appeal. Page B-l District Anti-Liquor Price Advertising Bill Passes House Police and Firemen Pay Increases, Small Loans Measures Fail By JAMES E. CHINN. The House this afternoon passed and sent to the Senate a bill de signed to prevent advertising of retail liquor prices in the District and the eventual creation of "dry"; zones within 600 feet of schools, churches, playgrounds, libraries and military reservations. Two other District measures on its calendar were flatly rejected, how i ever. One which would have raised the maximum pay of police and firemen a year was voted down. 68> to j 50. The other would have allowed j small loan companies to operate here with an interest rate of 2 per cent a month on unpaid balances. The drastic anti-liquor advertising j bill was approved without debate immediately after the House spent two hours in bitter debate paving the way for defeat of the small loan legislation. Price Lists Barred. j The liquor bill forbids any hqlder of a retail license, class A or B. to distribute, sell or give away any price list or information with re spect to the price of the beverages he sells. It also provides that no liquor license shall be transferred or issued for an establishment with in 600 feet of the nearest boundary to a school, church, playground. ‘ eleemosynary institution, providing housing for the indigent, a soldiers' home or Army post. Navy Yard, or marine barracks. Existing law al lows liquor stores within 400 feet of such places. The police and fire increase bill i was turned down after a 20-minute discussion, during which its sponsor, Representative Schulte, Democrat. ! of Indiana, admitted the higher salary scale it provided, would add j $1,500,000 a year to the District budget. "Frankly, we are going to try and raise .he salaries and then figure out where to get the money," Mr. Schulte said. He argued that Wash ington now has the "best Police Department in the United States” and that its members, as well as those of the Fire Department, had not had a pay increase for 11 years. I The House voted 190-109 against the bill to permit small loan com i panies to operate in the District, i Charges were hurled freely during debate on the small loan bill that the interest rate of 2 per cent a (See LIQUORr Page 2-X.) Shipyard Worker Charged With Slaying Woman By tbe Associated Press. BALTIMORE, Jan. 12.-Rov L. Price, 35-year-old shipyard worker, was formally charged today with murdering Mrs. Opal G. Burkham mer, 38, of Weston, W. Va.. who died Saturday night shortly after she was found in an automobile in front of a Curtis Bay tavern, i The charge filed by Sergt. John i | Helmer accused Price of assaulting ] and choking Mrs. Burkhammer as j they sat in the car. A hearing for ! Price will be held next Monday be l fore Magistrate Meyer Reamer. Hot Springs Dates Set I LITTLE ROCK. Ark., Jan. 12 UP*.— i The Arkansas Racing Commission today granted the Oaklawn Jockey Club authority to operate its Hot Springs track from February 23 through March 28, excluding Sun days. The Commission, for the first time In history, voted to license all em ployes at the track. Licenses will cost from $1 to $10, depending on the position of the employes. Estate Valued at $45,355 NEW YORK, Jan. 12 UP).—Mrs. Emma Louise Pox, widow of Richard K. Pox, former publisher of the Police Gazette, left a gross estate of $45,355, an accounting filed In Sur rogates’ Court showed today. X Synthetic Supply To Be Financed By R. F. C. Funds 400,000 Tons Per Year Are Expected Under Plans By OLIVER McKEE. Jesse Jones, Federal loan ad ministrator. announced this aft ernoon a $400,000,000 program to manufacture 400.000 tons of synthetic rubber annually— which, he said, virtually was enough to end the rubber short age in the United States by the middle of 1943. The loan administrator, mean while. took steps to stimulate the domestic production of zinc, lead and copper. He made public a let ter to Director William S Knudsen of the Office of Production Man agement and Price Administrator Leon Henderson, offering to pay premium prices to mining com panies which expand their produc tion of these metals. Mr. Jones estimated that the United States needs about 450.000 tons of rubber a year for military and limited civilian uses. He ex pressed the view at a press con ference that this country will not be entirely cut off from rubber sup plies from the Far East and else where. The production of synthetic rub ber in the United States will be approximately 90.000 tons before the year ends, he said. The additional facilities will be built as rapidly as possible and are expected to be in production by the middle of next year. Contracts Already Let. Contracts for capacity of approxi mately 60.000 tons have already been let by the R. F. C. The ex panded program calls for the con struction of facilities for the manu facture of synthetic rubber to an nual capacity of 400.000 tons. Mr. Jones said that he had been assured by industry that sufficient raw ma j terials are available to manufac 1 ture synthetic rubber “to any rea sonable extent.” j The companies which wiU take j part in the program include most of the major rubber and oil concern* that are already working in the synthetic rubber field. The technical and scientific skill of several of these companies, as well as existing patents, have been pooled to insure maximum efficiency and production. The Rubber Reserve Co., an R.F.C. affiliate, and the trade have on hand and afloat more than 600.000 tons of raw rubber, Mr. Jones re vealed. Furthermore, there are more than 1.000.000 tons of used rubber available, he pointed out. which can be reclaimed and re-worked to pro duce at least 600.000 tons of usable rubber. Reclaiming on a decreasing scale will furnish some rubber an nualy over a period of years, it was pointed out. Ready to Supply Capital. The estimated cost of the new facilities necessary to manufacture the raw materials, together with the processing plants Is approximately $400,000,000. The industry, if it wishes to, will be permitted to sup ply anv part of the required capital. The R. F. C.. however, will supply all the capital, if necessary, for the expanded synthetic rubber program. Consumption of rubber in the United States last year is estimated at about 750.000 tons. Normal civil ian use will be sharply reduced through the ban on the construc tion of new automobiles. Mr. Jones declined to make any specific comment on recent criticism that the R. F. C. had failed to get production of synthetic rubber started earlier. "I do not know anybody who an ticipated we would be entirely cut off from the Far East." he said. Mr. Jones added that additional quantities of natural rubber will be available from South America and Africa, and some rubber may be made from the guayule plant. Far East Supply Cut. Before the Pearl Harbor attack, virtually all United States rubber came from the Far East, but the Japanese move imperiled or blocked that source for an indefinite time. Mr. Jones explained that details of the program had not been worked out. However, the leading oil com panies, including Standard Oil of I New Jersey. Gulf, Phillips, Shell and i Sinclair, are expected to make the ! basic material, butadiene. Various chemical companies and ! rubber companies, including Good ! year, Goodrich, Firestone and United I States Rubber, will make the inter ' mediate and finish products In the process. Location of the plants has not ben determined. Offers Price Premiums. Mr. Jones’ plan to stimulate the domestic production of zinc, lead and copper provides that for com panies which produce more of these mewls In the 2'i years following February 1. than they produced pre viously, the Government-owned Metal Reserves Co. will pay a pre mium of 5 cents a pound on the extra copper and about 234 cents a pound on the extra lead and zinc produced. Mr. Henderson is expected to an nounce a quoW plan to enable the producers to determine how they can get these premium prices. Mr. Jones said the premium would bring the price on extra copper to about 17 cents per pound, extra zinc to 11 cents and extra lead to 9>/4 cents. Asked about plans to finance ad ditional aluminum and magnesium plants, Mr. Jones said he was wait ing for the O. P. M. to decide where power facilities are available.