Leader-Telegram from Eau Claire, Wisconsin • 1

STATE HISTORICAL SOCrtTY nr wiscomsin HP' 1 CLAIR LEADER EAU CLAIPE, WISCONSIN, WEDNESDAY MORNING, JANUARY 17, 1945 VOL IX1V No: 13 By United Press By Associated Press i If II I li Ked families ge across ir Shatter Defense, Gobdland Budget Jap Shipping Blasted in China Coast Raids; Manila Drive Rolls On Largest Offered in History Submits Wartime Call For $83,157,527 MADISON. Jan. 16. (AP) Gov. Ooodland tonight submitted to the legislature a wartime budget of $83,157,527, largest biennial recommendation In the history of the date.

In a message read to both Ooodland said: EASTERN I Lww, 'ASS I CZECHOSLOVAKIA WENNA Debrecen mmmLx Romania MILES rAxC-v Pj Utgtd 9 jO'Ami The budget I am submitting tovj based on receipts of $85,657,586 fV 100,000 Tons Damaged or Sunk in Ports UJS. PACIFIC FLEET HEADQUARTERS, Pearl Harbor, Jan. 16. (AP) Admiral William F. Halsey's free-roving Third fleet wound up a week of the most audacious naval operations of the war by sending carrier planes Saturday, Sunday, and Monday up and' down more than 350 mixes of the China coast, destroying or damaging more than 100.000 tons of Japanese shipping and' heavily smashing such choice targets as Canton and Hongkong.

Against amazingly puny enemy air opposition suggesting Japan's airforce has its hands full over the homeland and the Philippines the carrier planes ruled the skies as they did over French Indo-China's shore 11 and over Formosa Jan. 8. Formosa Hit 3 Days -f if ig.m Tiina.rM-- vm Hiiimim irMnaMnMiiiMm I i Man mil iTTrlW MAKE A WISH. Traditional wishbone breaking was won by Marjorie Vattendahl as she and Major Richard Bong tugged at the ends of a turkey wishbone at Marjorie's home in Superior, Wis. Bong and Miss Vattendahl have announced plans to be married Feb.

10. AP Wlrephpto) RUSS SMASH WEST While Berlin reported that battles sweeping the entire 600 miles of the Eastern front from Budapest to the Baltic Soviet Marshal Stalin announced a second great Russian offensive in two days south of Warsaw from the Red army's Vistula bridgehead. first drive reported Monday crossed the Nlda river, last water barrier before German Silesia; in. a thrust at Krakow. The second drive, between Krakow and Warsaw, crunched 38 miles Into the German lines on a 75-mile front in three days.

Allies Hit Flanks FDR Says Manpower Needs Beyond Voluntary Controls, to Ask Congress for Draft on Western Front The president told his news conference that he would transmit 5 Reach Yithin 38 Miles of Germany Smash 30 to 38 Miles on 200-Mile Front LONDON. Wednesday. Jan. -17. (AP) Two great Russian army- groups poured like a red flood through broken Nazi defenses on the Polish plain south oi Warsaw today, reaching within 38 miles of the Ger- man border.

Gathering speed as lt went, the gigantic Soviet winter offensive recorded gains oi 39 to ss mues on a twisting battlefront more than 200 miles long (rom Grojec, 25 miles southwest of Warsaw, down to Slom- rk, only 12 miles north oi the historic citadel of Krakow. Premier Stalin in two triumphant orders of the day last night dis- closed that besides the First Ukraine army group that began the offensive Jan. 12. the powerful First White Russian group had leaped into the assault Jan. 14 and in tnree aays had advanced from the Vistula 33 miles on a 75-mile-wide Zhukov In Command The first White Russian group.

commanded by -famous Marshal Gregory K. Zhukov, with at least 44 generals under him. sealed its triumphant drive with the capture at 8 o'clock last night of Radom. powerful German fortress 55 miles south of Warsaw. In, three days this army has taken more than 1,300 communities.

Stalin's orders disclosed as Moscow's saluting cannon roared. A fuller picture of the stunning series of continuing blows dealt to the Germans was presented in -the regular late night communique broadcast from Moscow. It announced that troops of the First Ukraine front led by Marshal Ivan S. Konev, who had begun tne winter offensive five days previously. captured more than 700 additional Polish towns Tuesday, racing within 38 miles of the border of German Silesia at one point and within 40 at many points.

12 Miles (rom Krakow Konev men. besides reaching within 12 miles of Krakow, seat of Germany's government-general for Poland, took KoniecpoL only 23 miles -east of the famous monastery-town and stronghold of Czestochowa. Almost lost In the victorious thunder of Russian cannon on the Polish front was the German lugh command's acknowledgement that the Russians also were pushing a full-scale offensive in East Prussia and had taken the railway city of Schlossbere. 13 miles inside the border of that German province. Altogether, the Germans said the -Russians were on the offensive in 11 different sectors.

Moscow -was silent concerning all except the two interlocking major drives In south and central Poland and the continuing cleanup in Buda pest, where 120 additional blocks were captured Tuesday and the dwindling and encircled enemy garrison lost another 3,160 as prisoners. The Russians now hold 4,300 square blocks of the 4.500 that make up the Hungarian capital. Red Drive in Full Swing Indicating that the Germans probably were correct- about the other Soviet offensives, however, a dispatch from Moscow Tuesday night by Associated Press Corres- pondent Eddy Gilmore said, "the grand Red army offensive aimed at Liberation of Poland and carrying -the war into Germany was In full swing today through the vast snow-covered areas of the longest land front In the world." Gilmore said the German army already was "so badly hurt that it must yield considerable ground al- most immediately' and that the Germans going to be driven many miles westward before they can hope to hold. In support of this prediction, the Soviet communique announced that troops of the First Ukraine front had swept across the enemy's Pilica river line in southern Poland on a front 32 miles wide, "permitting the enemy no chance of organizing defense on it." On that sector Just west of Czesto chowa, the Warta river thus remains as the only water barrier of any lm-portance before Germany itself. L.

FDR Ducks Foreign Affairs Discussion WASHINGTON, Jan. 16. (AP) President Roosevelt declined, to fce" drawn into a foreign affairs 'discussion at his news conference today, beyond stating that he would consult anon with Prime Minister Churchill and Marshal Staling When asked lor comment oh the suggestion of Sen. Oonnally (D-Tex), for an Interim council of the United Nations, Mr. Roosevelt said there was not anything more on that than the reporters knew already that he was going to see anon the prime minister of Britain and the marshrvl of Russia.

He said his recent conference with an eight-member senate foreign re lations sub-committee was a pleas ant one, tnat they were in agreement, and that they also agreed to say nothing more about It. To a request for a statement on the assertion by Sen. Pepper (D-Fla), yesterday that the foreign policy speech of Sen. Wheeler (D-Mont), would encourage the German people, the president asked if Secretary fo State Stettlnius didnt say something along that line last week. That's all, he added.

Cage Player Dies from Game Injuries CHICAGO, Jan. 18. CUP) William Trump, 17, South Shore high school basktball player, died yesterday of a head Injury suffered in a cage gam 10 days ago.1 Trump was kicked la the head as he rose from the floor after a lalL WASHINGTON. Jan, 16. (AP) President Roosevelt asserted today that the need for men In the armed forces and war factories Is now so extreme that voluntary controls will no longer work.

Hence he will send to congress, probably tomorrow, a special communication backing up his recent demand for national service legislation, under which the government would be empowered to assign men to war-Important tasks. Higher Livestock Production Urged WASHINGTON. Jan. 16. (AP) War Food Administrator Jones asked farmers today to plant more acres and produce more livestock this year than in 1944 when output set a record.

The appeal reflected prospects or a longer European war than was expected last fall. A revision in 1945 goals from those announced last November called for special emphasis on production of milk and hogs and for increased marketings of beef cattle to meet expanding military and civilian demands. Since the goals were announced in November, most meats have. returned to the ration list and prospects point to tighter meat supplies for civilians than was indicated in the fall. Crop goals call for a planted acres, or about the per cent more than the 354,72000 planted in 1944.

The 1945 goals, involve some shift in the pattern of production in line with changing demand situations. "We are again asking' for all-out production." Jones salu. "I realize that farmers will be faced with the task of overcoming many wartime production difficulties. Including labor, machinery, and supplies. But, barring adverse weather.

I am confident that 1945 will be another year of splendid farm achievement." The goal for the 1945 spring1 pig crop was Increased from 57.000.0o0 to head. Egg production is aimed how at 450.000X00 compared with the goal in November of Jap Counterattack on Flank Repulsed GENERAL MacARTHURS LUZON, Wednesday, Jan. 17. (AP) One week after landing in Lin-gayen gulf, a powerful American spearhead was more than one-third of the-way to Manila Monday and still rolling southward in dry, clear weather down the broad central Luzon plain, virtually unchecked on land or in the air. However, on the left flank of the broadened front the.

first Japanese counterattack of the Invasion wis reported in- the stubbornly-held Pozorrubio sector-on Sunday. Gen. Douglas MacArthur's communique today said the blow was repulsed. 45 Miles from Lingayen. Conservatively -worded official statements located the deepest American penetration as on the central of three main north-south highways 45 road miles from Lingayen and 83 from Manila.

The Yank column which reached Camiling, 30 road miles south of Lingayen, on Sunday was reported officially to be working its way southward, but the depth of the advance was not pinpointed. Field reports said these troops were progressing against nothing stronger than an occasional harassing patrol. MacArthur's communique today, gave no details of the intensity of 'the Japanese counterattack, but violent enemy reaction had appeared overdue for several days as the Sixth army blows kept the Japanese off Heaviest Fighting There Heaviest fighting of the entire front has been under way In the Pozorrubio sector almost, from the start. Rapid gains were scored Sunday as the battlefront widened east and west around Lingayen gulf. U.

S. troops drove a series of strategic wedges across main highways of Luzon's central plain while patrols pushed ahead in the center to reach Moncada, ten miles southeast of captured Bayambang, on the main road to Manila, 80 airline miles to the south. At Moncada the Yanks, were .32 miles inland from the gulf. North of the Pozorrubio sector American troops executed a flanking movement east of amor Lis, LUZON (Continued on Pag 2. CoL T) Record 7 Billions Spent for Liquor WASHINGTON.

Jan. 16. (AP) Americans spent more than for alcoholic beverages in 1944 a new record. In actual quantity, they drank: 1. More liquor than In 1943, but not so much as in 1942.

2. More beer than in any previous year. ,3. Slightly less wine than In 1943. Those estimates were made by the Commerce Department and an nounced today.

The $7,000,000,000 is roughly one billion greater than the amount spent in 1943 and nearly two billion dollars above 1942 when $5,200,000,000 was laid, down for drinks. The $7,000,000,000 is about $54 for each person in the country. Half of the billion dollar increase over 1943 was due to higher federal taxes on distilled spirits. The tax rate rose from $6 to $9 a gallon last April first. Two billion dollars of the $7,000,000,000 went to Uncle Sam In tavs The Commerce Department is talking about legally soH beverageo.

If bootlegging were thrown in. the liquor bilk would exceed i Here is the 1944 drinking situation as based on the department's esti mates: Distilled spirits 165 million gal lons. Consumption in 1943 was 146 million gallons. In 1942 it was 190 million (the record). In pre-war 1939 it was 135 million.

Beer 80 million barrels (of which 50 million barrels were sold in bot tles and cans and 30 million barrels on draught). Beer drinkers downed 72 million barrels in 1913, 65 million in 1942. and 52 million in 1939. Wine 90 million gallons. Wine drinking In 1943 amounted to 94 million gallons and In 1942 it was 112 million (the record).

In 1939 it was 77 million. Commanders Killed in Luzon Invasion WASHINGTON. Jan 16. (AP) The navy announced today that Rear Admiral Theodore E. Chand ler and Capt Robert W.

Fleming were killed in action during the invasion of Luzon island, in the Philippines. Chandler's last announced as signment was commander of a cruiser division, Fleming's last was a battleship. Chandler's home was in Wash ington where his wife lives. A na tive of Annapolis. he was the son of Admiral Lloyd H.

Chandler, and was a graduate of Annapolis. His grandfather. Wil liam E. Chandler, was secretary of the navy from 1882 to 1886. Fleming's the former Emma Scott Stltt, daughter of Rear Admiral Edward R.

Stltt (Medical Corps), plso lives here. Fleming graduated from the naval academy I in 1917. PARIS. Jan. 16.

(UP) Allied armies, striking perhaps the -first blows from the west in the long- awaited grand drive to crush Ger many in synchronization with the Russian surge from the east, launched attacks today on both, flanks of the far-flung western iront. In the Ardennes bulge, tanks of the U. S. First army captured Houf-falize and Jokied the Third army there to form a strong front that promised speedy elimination of tho remaining stump ox tne sauent which two weeks ago imperiled In the north. Field Marshal Sir B.

L. Montgomery's tanks and infantry went over to the attack at the Dutch frontier only 25 miles from the Rhineland industrial center oi Munchen-Gladbach, seeking to reduce the long-standing German Bombers Strike Deep in Reich LONDON. Jan. 16. (AP) Nearly 1.300 American warplanes made a daring sweep through Germany's greatest flak belt today and blasted an oil refinery, a Mark.

IV tank works and two railway yards within 100 miles of Berlin with 2,000 tons of explosives. The drone of the Britlsh-basetl heavy bombers set off air raid sirens in Berlin. Indications that RAF night bomb ers were following up this daylight assault came from the German radio. The Oslo radio also signalled the approach of bombers. Indicating a separate force of British planes probably was again on the hunt against German shipping off Norway.

Swarming over the heavily defend ed Leipzig area, known to Allied airmen as "flak more than 600 Flying Fortresses and Liberators escorted by 650 Mustangs and Thun derbolts of the Eighth airforce, bombed an oil plant at Ruhland, 65 miles east of Leipzig, the Krupp tank factory at Magdeburg, 60 miles northwest, and freight yards at Dresden and Dessau, 30 miles north. Targets in western Germany also were attacked. Most of the bombs were released by instrument. Some Nazi fighters were sighted, but the Germans of' ered no opposition. Thick weather hanging over the continent last night limited RAF raids to attacks on enemy shipping on the Dutch coast.

Correspondents balanced budget and leaves a small estimated excess of receipts over appropriations of $2,500,000. This surplus will actually be larger, however since some appropriations usuallv are not spent in their entirety." The executive budget for 1943-45 was $78,460,861 before capital expenditures. Tonight's recommendation did not include capital expenditures for postwar building, expected to total around $20,000,000, which the governor said would be i submitted in a separate and supple- mental budget. Explains Increase Goodland said the $4,696,666 ln-crease in his tiennial request was due to statutory bonuses and automatic salary Increases as well as provisions for new personnel." Shortage of manpower material, the chief executive said, -leaves us. but one recourse, and that is to plan as.

best wfc may. using the strictest of. economy and efficiency, and providing forthe day when men and materials again may be had." lt Is recognized that there Is urgent need for more assistance in several vital state services. Insofar as it lies within the power of the executive to dd so, those needs will be met as they arise, and they clji be met and are contemplated with the funds and facilities requested in the budget as submitted. The governor estimated that of the revenue "would come from emergency taxes cigarette, gift, transfer and dividend which expire June 30.

1945, and whllh he said he woujd ask be re -en-ted. Regular taxes would provide Increase For University His recommended appropriations lor the University or Wisconsin for the period was $10,444,508, an increase Of $1,838,956 from 1943-45. Total net aids to be returned to counties and communities for education, pensions, relief and agriculture amounted to $41,139,000 a reduction of $4.754326. Of the total. i educational aids were trimmed from $20,411,505 to $20,196,000 In the current budget while charitable and i pension aids were raised from 365356 to $19488,000.

Agricultural aids were set at 188.200 $600 less than the previous Wennium. The chief executive recommended I Increase tor state teachers, colleges from $4.193509 to $4,429,660 and public welfare institutions from to $9.182348. State boards, commissions and department a would benefit under the new budget, with appropriations BUDGET (Continued on Page 2. CoL S) BY KIRKE SIMPSON Associated Press War Analyst With the Nazi Belgian bulge all but flattened out and British and American armies on both sides of it on the offensive, Moscow now discloses a Red army attack of tidal wave proportions rolling across the plain of Poland. lne ease west squeeze play long ago projected at Tehran to be taking shape at last.

How long it will take to throttle Germany into submission is 'beyond calculation: but there is new and grim warning to the foe of the purpose behind it. The war will go on until unconditional surrender has beon obtain-. ed." Prime Minister Churchill told parliamentary hecklers. Moscow left no doubt of the tremendous scope of the twin attacks launched over the weekend in Poland. That the whole German defense front from the north flank of the Carpathians to Warsaw and beyond is concerted Red army pressure is Nazi-revealed.

Russian bulletins covered two main thrusts boring In beyond the Vistula. In the west front line, reports that the Nazi bulge driven mor than 40 miles deep into Belgium at high cost has been cut to a bare 15 miles. Less thaq, .400 square miles of the maximum of 2.000 the enemy once held there remain in his hands. By official American estimates that lean heavily toward conservatism it cost the Germans men. more than twice American losses, to- gain nothing but a brief delay in the -Allied winter offensive.

That the respite will be brief at best and may already be over is indicated by the British attack in Holland on the Meuse sector and the American counterthFUst down the Moselle valley approathing the Nazi Siegfried line anchorage of Trier. Tho scope of neither the, Meuse nor the Moselle operation is yet clear. The site of the British army at-r tack in Holland. Just north of the American Roer sector and the Aachen salient into Germany, suggests more than a diversion opera-. tion.

it could be the start of a new Allied effort to stab through to the RMne across the Cologne plain. The surprise surge down' the MoV seile valley by the right wing of th American Third army posted south of the Belgian bulge may also be primarily a feeler to test enemy dispositions, its initial progress indicates relative enemy weakness at that point. War Analysis Formosa, once considered a for midable target by itself, was attacked Saturday, Sunday and Monday at the same time other carrier planes were sinking enemy oilers, oombing the royal navy uocks at Hongxong ana tne naroor at canton. In raids dating beak to the Jan. 8 assault on rormosa, Halsey planes now have accounted for well over 3C0.C00 tons of enemy shipping, in eluding several escort warships, and more than 250 planes-the latter figure' so low because so lew planes have been encountered, the bulk of them on the ground.

E.en this is far Irom the picture of devastation wrougnt because Ad miral Chester W. Nimitz, disclosing the preliminary results of the CiUna raios today, gave only in complete totals for Sunday and Monday and none at all lor Satur cay. Japs Weak in Air The bara-hit Japanese displayed stunning weakness in the air as Halsey's Third fleet daringly slashed across Nippon sea life line between Japan ana the oil and rubber-rich Inaies. Miniitz said no Japanese planes at all were encountered over Along kong and -Canton, south Gninas largest cities and major Japanese supply centers for south China operations. Third fleet fliers destroyed 49 Japanese planes and damaged 45 more in preliminary reports on their China coast raios.

Ine stride started Saturday and was continued through Sunday and Monday. i oimosa, 125 miles east across the strait Irom China, also was hit lor the fourth time this month while the captive Chinese cities were swept for the first time in the war by American naval airmen. One of the shipping targets hit was the tanker, KamoL She probably was a first line Japanese tanner. The tanker was last seen listing. Summary of Attacks The Sunday summary on air attacks on Canton, swatow and Hong kong: Nine ships totalling about 22,000 tons were sunk.

These included one destroyer, one destroyer escort, and one tanker. Nine snips and nine small vessels were damaged. Sixteen aircraft were shot out of the air, lg more were destroyed on the ground, and 38 were damaged on tne ground. At Takao, oimosa naval base. seven locomotives and warehouses and docks were destroyed.

Buildings, ammunition dumps and other installations were destroyed or damaged at Pratas Reef, east of Hongkong. 'lhe Monday strike summary: Shipping totalling about 82,000 tons was sunk or damaged. This included the 17,000 ton tanker Kamoi, seen listing, and two oilers. Seven Japanese planes were shot down, one was destroyed on the ground and seven were damaged on the ground. i In Hongkong the royal navy docks.

the former British naval base, and the commercial Toikoo docks, other harbor faciltles and fuel storage areas were heavily damaged. Harbor installations and fuel stor age areas at' Canton, 90 miles up the Canton river from Hongkong, aiso were nard hit. Norwegians Engage Nazis in Finnmark LONDON, Jan. 16. (UP) Nor weslan troops have driven westward across rugged mountain ranges in East Finnmark.

northern province of Norway, where they have engaged German forces below the Por-sanger fjord, the first communique of the royal Norwegian government disclosed tonight. The communiQue also announced that the first detachment of Norwegian police troops, trained in Sweden, have arrived in Finnmark to strengthen the forces in the Arctic battle zone. Russian forces first pushed the German troops out of northern Pin-land and back to the Tana river valley district of Finnmark. The Norwegian troops now have advanced farther westward from the river valley to positions south of the Por- sanger fjord, the communique dis closed. Advancing inland along the Tana and crossing two hfch ranges, the Norwegian forces' have increased the liberated areas of Finnmark to 80.634 square miles, nearly one- naix of the province, it was dis closed.

The Norwegian government said the transfer of pol4ce troops from faweuen is continuing. 4V with a few words of his own, a re port from Geh. George C. Marshall, army chief of staff, and. Admiral Ernest J.

King, commander-in-chief of the fleet. To Stress Urgent Need While Mr. Roosevelt did not comment on this report, it was learned author! that Marshall 1 and King would say that the nation now faces its most urgent demand of the war for the replacement of men and munitions. They were expected to be specific in -outlining the increased needs oc casioned by tne German counter-offensive in Belgium, expanded operations in the to equip a large ivrencn army. Asked about OIO President Philip Murray's opposition to compulsory manpower legislation in testimony before a house committee today, Mr Roosevelt inquired if Murray had an altehative.

The alternative involved a. better use of voluntary methods, a reporter said. The president replied firmly that he didn't think that would bring results. Lists "Critical" Jobs The war manpower commission, meanwhile, designated a list of jobs, as "critical." They include production of aircraft and parts; of ships, boats, and parts; of ammunition; ordnance -and accessories; of MANPOWER (Continued on Page 2, Col. 7) Says Milk Subsidy Adjustment Studied WASHINGTON.

Jan. 16. (AP) Adjustment of subsidy payments to milk producers to encourage more butter production is under consideration by the War Foods Administration. Senator Cordon (R-Ore) said today. Cordon said Assistant War Foods Administrator Grover B.

Hill wrote him that subsidy payments were purposely made more favorable to whole milk than butterf at in farm-separated cream In order to, meet demands of the military for whole milk. is considerable evidence to indicate that the shift has gone far enough and that the program should be adjusted to avoid encouraging a further shortage," Hill wrote. area, they do not have the initiative beyond doubt. They are fighting to regain lost ground, while the Germans fend them off and try to repair their damaged forces. Only the Nazi field marshal can answer the question which will decide whether the battle of the Belgian bulge was a victory or a defeat for the Nazis.

Was it- worth some 90.000 men to seize the Initiative, throw the Allied winter offensive plans off schedule, to maul several American divisions and gain perhaps months of breath ins time? The answer may be hid den in Germanf army records until the end of the war. You can find American military men who declare that the German army never will be the same again; that 20 divisions- -were lost in the tulje fighting, plus more than 1.000 tanks and guns and that such dam age is irreparable. This may be true, but it also is the same kind of op timism which characterized Allied estimates before Von Rundstedt struck Dec 16. A more cautious view is that the Germans have suffered a heavy blow but have withdrawn consider' able armored forces of the two tank armies engaged in the battle and are capable of repairing most of the damage. The only thing which appears certain out of these conflicting views is that while Von Rundstedt is cap able of launching a new attack; it will not have the force -of his I previous effort, which was months i in DreDaration.

salient reaching into Holland be tween Geilenklrchen and Roermond. In the south Lt. Gen. Alexander M. Patch's U.

S. Seventh army in Alsace struck to wipe out tne oer mans' Rhine bridgehead above Strasbourg and immediately cut lt by two miles. just as in we case ox tne Araen- nes salient, it was necessary to re duce the enemy proturberaoces on both flanks before existing breaks In the west wall can be exploited into full -powered drives into- the Ruhr, 8aar and Rhineland. Montgomery's attack, breaking i two-months stalemate 4n the south east corner of Holland was concen trated at a point Just north of Si retard. 11 miles west of Gellenkirchen, where the perimiter of the 200-square-mile salient crosses the frontier.

Mounted with very little artillery support, it apparently caught the Germans by surprise as Initial progress was reported against "only moderate resistance." Bulge Hub Abandoned When tanks of the second "hell on wheels' armored division crashed into Houffalize from the north after calling up bulldozers to clear away the burned-out hulks of German armor, they found the erstwhile bulge hub abandoned. The road had against been firmly sealed by the recapture of Cherain, four miles outside Houffalize, and judging from the nearly 1.500 prisoners taken by the First army in 2 hours the biggest one-day bag to date many of the Houffalize garrison did not escape. In addition to Joining up at Houffalize, the First and Third armies had established several Junctions west of tliat town and all organized resistance had ended west of the line of the Bastogne-Houffallze-Liege highway. embracing about two-thirds of the maximum bulge area. Three First army columns now were battering down on the last stronghold' of Marshal Karl Gerd GERMANS (Continued on Page 2.

CoL 2) Nye Dealing to Buy North Dakota Daily WASHINGTON. Jan. 16. (AP) Former Senator Gerald P. Nye, North Dakota Republican, said today he was "undertaking to make a purchase of.

a dally newspaper in North Dakota, but negotiations have not been completed." Nye. who was defeated In the November election after serving nearly 20 years in the senate, declined to name the newspaper under consideration Doubt Allied tanks destroyed, lt Is pointed out tnat. according to the best informa tion, that figure is higher than the total number of armored vehicles with which Field Marshal Gen. Karl Von Rundstedt began his offensive. Therefore correspondents must be skeptical of such claims.

There Is no doubt that the enemy suffered heavily. Some German divisions honestly can be described as destroyed lor practical purposes, because it is known, for example, that one Volksgrenadier outfit lost 5,000 prisoners from an original strength of between 6,000 and 7,000. But from the Information I gathered personally at the front and from statements of officers whose Judgement I value, the best apprai sal of German losses would be that they were heaw and that the Ger mans can ill afford them. Since the Nazis began to withdraw from the salient under Allied pressure lt would be more correct to describe the withdrawal as having been skilfully made and without unusual losses. In the opinion of many correspondents the home front would profit by remembering that the Americans and British are paying a heavy price for every mile the Germans are thrown back.

With Bulge Battle Closing, 'Who's Going to Hit First' Claims of Heavy Nazi Losses BY WES GALLAGHER WITH U.S. FORCES. IN BELGIUM, Jan. 16 (AP) With the battle of the Belgian bulge slowly drawing to a close, western front strategy has entered a new and critical stage which will decide Itee trend of the fighting weU insrfrspring. In military language it is called "who's going to -seize the initiative; in terms of the man in the street it Is "who's going to hit first?" The capture of Houff alize.

key road junction, and the First army's attack toward St. Vlth. have -brought the bulge fighting into its final phase, wherein the western front battle line can be restored to its original position. As the Allies slowly squeeze the Germans back into Belgium they will shorten the front by many miles, thereby freeing divisions lor new assignments. At the same time.

Field Marshal Von Rundstedt has been fighting only rearguard actions in the bulge for more than a week. He has been withdrawing his prize SS troops, armor and artillery at as small a cost as Thus, behind each side of the line strategic reserve troops are beinz built up. The employment of these forces' will decide whether the Al lies will seize the western front inU tiatlve and carry on an offensive again, or whether Von Rundstedt will launch a new assault which will necessitate new defensive meas ures. Strictly speaking, although 'the American First and Third armies are on tne onensive in the bulge WESTERN FRONT. Jan.

15 (UP) I Manv Allied corresnondents be lieve that some recent Allied claims of the tremendous losses the Germans allegedly suffered in their' win. ter Ardennes offensive are grossly exaggerated and that published reports thereon can only lead to false optimism at home about the German military situation. A staff officer of the First army yesterday told correspondents that the Germans since Dec. 16 had paid an estimated price of 150.000 casualties troops taken prisoner, killed or wounded and lost 900 tanks. Reports emanating from Paris set enemy casualties at 200,000 while Lt Gen.

George S. Patton's 3rd army alone was estimated to have accounted for 80,000. If the 200,000 figure were correct, with the average German division currently reckoned at 10.000 troops, this would mean the Germans lost an equivalent of 20 divisions. Correspondents and officers who should know ridicule the mere thought that the Nazis could have suffered such terrific losses. I In addition it is pointed out that the strength of a German division now averages between 6.000 and As for the first army claim of 900.