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The Wilmington morning star. (Wilmington, N.C.) 1909-1990, June 04, 1940, Image 5

Image and text provided by University of North Carolina at Chapel Hill Library, Chapel Hill, NC

Persistent link: https://chroniclingamerica.loc.gov/lccn/sn78002169/1940-06-04/ed-1/seq-5/

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SCHENCK indicted
s Grand Jury Accuses
Him Of Fraud, Conspiracy,
H False Statements
.... YORK. June 3.—
M , gchenck, who ran a stake
l«sep' 'ir,0 millions and mastery
^ f "tl>e film industry’s great
e!one was indicted today by
orpoi-adf’ -^ra))d jury f0r income
I ronspiracy, and making
^/‘!tate.ne. *s to government in
lllse -v ^
Russian immigrant
1116.1° ions' ago dreamed of
!C' " ’and success as he doled
and pills in a dingy China
drugstore was charged in
m with having defrauded
? Lyevnment of more than
;,,wioo in taxes from 193o to 1937.
Twentv-four counts were speci
r . ip \w0 indictments against
^ -(k 57-year-old chairman of
liu'in! and executive director
‘ aith-Century-Fox film cor
r.' Hollywood. Schenek termed
. „ hal.„ps "unfair” and said he
thf Clio1:-'- . ,, ..
'vnnfidcm that when all the
■ are finally determined full
vindication will result-’’
He added that two New York
inditine fnms had advised hlm
I for the years in question he
. d "overpaid rather than under
'id n,v taxes” and said charges
Ip had “made false statements to
-uvernment agent about another
'noil's personal tax are not
true-' „ . ^ .
Nuiicd as co-defendant in a con
spiracy indictment was Schenck’s
r'yitni-a-year bookkeeper, Joseph
H Moskowitz, who was accused
n aiding his employer in evading
income taxes.
SChenck was charged with hav
ir; fraudulently deducted from his
jross income "losses” from the
purported sale of stock to his Hol
lywood friends and with having
claimed as business expenses ex
oenditures which actually were
personal—in many instances the
of lavish entertainments.
He was charged with perjuring
himself in statements to an in
[ernal revenue agent, during an in
vfaication of the income of Wil
liam Bioff. western representative
;i,e International Alliance of
Theatrical Stage Employes and
Moving Picture Operators.
Ulinnesota Gale Results
In Deaths Of Five Men
MINNEAPOLIS. June 3—(tf)—A
;ale which at times reached a
cekity of 60 miles an hour churn
ed Minnesota’s lakes along the
Canadian border into sea - like
waves Sunday, causing the deaths
of at least five persons.
Communication lines were dam
aged. trees smashed to the ground
and many craft upset. Heavy rains
accompanied the wind.
Jorma Broman, 19, Fort Fran
cis. Ont.. was drowned in Rainy
ake when his canoe upset; Frank
T. Sansom. 57. and Charles P.
3enassi. 42. both of Duluth, drown
ed in Clearwater lake in another
canoe capsizing, while Helmer Nel
son. 61. and Carl Engman. drown
ed in Lake Superior at Grand Mar
sis when they drove off a dead
end street in the storm. 1
British air raid wardens are
competing with each other to get
gas masks to newborn babies. One
"ade a new mark by supplying a
'cask to a 40-second-old baby, but
•' seconds were knocked off that
record within a day. 2
French Caissons Go Rolling Along — By Horse Power ~~|
•einforce def'enses alZedth«asl^t“PerhaPS hc'r\ ca'leagUe,8 beleaguered in Flanders, pernaps to
e niorce neienses along the Somme—moves a column of French horse-drawn artillery.
Seifert Elected Alumni Presi
dent To Succeed Colonel
George Gillette
RALEIGH, June 3—(A*)—N. C.
State college seniors were warned
by Governor Hoey today that they
would be forced to give up some of
their liberties while the nation went
through a period of building up its
national defenses.
Speaking at the college’s 51st
commencement, the governor
urged Americans to “insist upon
a complete return of all these
rights as soon as the crisis passes.
Degrees were presented a rec
ord graduating class of 358 per
sons, 26 more than last year’s
group. Governor Hoey was intro
duced by Frank P. Graham, presi
dent of the University of North
Carolina, of which N. C. state is
a unit. Col. J. W. Harrelson, dean
of administration at the college,
An honorary degree of doctor
of textile science was conferred
on Charles A. Cannon, Concord
industrialist, Clement L. Garner,
native of Carteret county and now
chief of the division of geodesy
in the U. S. coast and geodetic
survey, received an honorary de
gree of doctor of engineering.
“It is so easy to lose rights,
when once they are denied, unless
there shall be a complete restor
ation,” said Hoey. "It behooves
us to guard sacredly our heritages
of liberty and freedom and our
guaranties of all civil liberty. Al
ready. before the war crises de
veloped, we have been gradually
conferring upon boards and bu
reaus the rights and powers which
are being arbitrarily exercised to
the detriment of the business life
of the nation and the individual
rights of the citizen.”
The governor said that the Uni
ted States, with its great wealth
and resources, had become the
“have nation” of the world. This,
he said has aroused jealousy
among some nations and has
caused some of the South Ameri
'Japan Expresses Concern Over
Developments In Dutch Indies
TOKYO, June 3,—<JP)—Japan has
the same vital concern over de
velopments in The Netherlands
East Indies that the United States
has in events in Mexico and South
America and cannot remain “un
concerned at any developments’
which might change the status
quo in those rich islands, Foreign
Minister Hachiro Arita declared to
The minister addressed a meet
ing of the Institute of the Pacific,
an organization composed of
numerous highly-placed military
and government officials.
He re-emphasized the economic
importance of the East Indies to
Japan and told the Institute that
it “is but natural that Japan
should entertain the most serious
concern over the maintenance of
the economic status quo there as
well as the political.”
Although the Indies belong to a
European nation, they are inti
mately linked with the destiny of
East Asia, Arita said.
“Japan as the stabilizing power
in this part of the world has more
than a passing interest not only
in the Chinese continent but in
areas to the south,” he asserted.
“Our situation may be likened
to that of the United States which
cannot remain indifferent to de
velopments in Mexico and Vene
Earlier, Premier Admiral Mit
sumasa Yonai told newsmen that
there is a “way of improving the
aggravated relations between Ja
pan and the United States,” but
that “of course such a method is
neither being considered nor be
ing taken."
The premier said he wras not in
a position to disclose the nature of
the way to better relations, but
many of his hearers interpreted
his statement to mean that Japan
did not intend to conciliate the
United States by backing down
from her policies toward China or
on other issues in the Far East.
can countries to view the United
States with suspicion.
“We must adopt a broad policy
of international good will,” Hoey
continued, “with special reference
to our relation to our southern
neighbors in this western world.”
Urging a rearmament program,
the governor said all Americans
must be prepared to foot the bill
of national security. The average
man, as well as the rich, must
pay for rearmament, he asserted.
Earlier today, the college’s gen
eral alumni association met and
elected D. W. (Dutch) Seifert of
Weldon as its president.
Seifert defeated H. N. Gurley of
Newton. He succeeds Col. George
W. Gillette of Wilmington.
M. L. Shepherd of Raleigh was
re-elected secretary, with Miss
Maud Schaub of Raleigh continu
ing as assistant secretary and A.
F. Bowen of Raleigh as treasurer.
Gillette was elected chairman of
the executive committee. T. K.
Mial of New York and Raymond
Maxwell of New Bern were elected
association vice presidents.
Executive committeemen elected
were: 3. B. Everett of Palmyra,
Buxton White of Elizabeth City,
F. P. McLendon of Greensboro, L.
C. Atkisson of Greensboro and
Clyde R. Hoey, Jr., of Canton. A.
F. Floyd of Raleigh was named
for a five-year term on the athletic
council. 1
Monroe John3on of South Carolina,
Assistant Secretary of Commerce,
was sworn in today as a member
of the Interstate Commerce Com
mission to which he was recently
apointed by President Roosevelt.
Johnson succeeds Marion M.
Caskie who resigned to enter pri
vate business. 2
Four boys were drowned late to
day when their home made John
boat capsized in the roaring wat
ers below a dam in the Allegheny
river at nearby Aspinwall. The
victims were Jack Meiser, 15; Wil
liam Yester, 16; John Lambert,
18; Charles Gasda 17, all of
Sharpsburg, Pa. 1
BUENOS AIRES, June 3.—(iP»—
Foreign Minister Cantilo reported
tonight that a protest has been
delivered in Berlin over the sink
ing by a U-boat of the Argentine
freighter Uruguay, May 27 off the
Spanish coast. The protest de
mands material compensation for
the ship together with satisfaction
for the injury to the Argentine
LOUISVILLE, Ky., June 3.—(*-T*)—
William Green, president of the
American Federation of Labor, de
tlared today that labor is “solidly
behind the President" in defense
preparation but is opposed to in
volvement “in the European oon
Mrs. Roosevelt Says
Action Against Reds
Is Up To Congress
WASHINGTON, June 3—<«—
Mrs. Franklin D. Roosevelt
said today it was up to con
gress to decide whether the
communist party in America
should be outlawed.
Replying to press conference
questions, she said that as long
as the communist party could
get on the election ballot, its
candidates should have the
same radio privileges as can
didates of other recognized
But if this country follows
the course of Switzerland—
which the first lady described
as a level - headed country—
and outlaws the communists,
“that is another question.”
In the house today, Rep.
Cox (D - Ga.), objected to
a broadcast from the commu
nist party convention in New
York yesterday, and declared
that “it is about time the
broadcasters’ trust was inves
tigated.” 1
Funeral rites for S. S. King,
brother of Mrs. J. H. Garrett, of
208 Wright street, who died on
May 26 at his home in Rocking
ham, were held from the late resi
dence on May 28.
LITHONIA, Ga., June 3. — UP) -
Willia^n B. Harrison, 68, comptroller
general of Georgia, died suddenly to
day while on a fishing trip near
Harrison, long a key figure in
Georgia politics, was ousted from of
fice in 1936 by National Guardsmen
on order of former Governor Eugene
Talmadge but later was reinstated
by the general assembly. Harrison
objected to efforts of Talmadge to
direct fiscal affairs of the state
after the legislature adjourned with
out passing an appropriation bill.
Funeral services for Mrs. Agatha
Russ, 58, who died at her home
at Myrtle Grove sound yesterday
afternoon at 12:40 o’clock after a
short illness, were held from the
late residence yesterday afternoon
at 6 o’clock.
The Rev. George Saunders con
ducted the services. Interment fol
lowed in the Bonham cemetery at
Myrtle Grove sound.
Active pallbearers were: C. L.
Bowden, H. G. Lewis, Henry Wil
liams, ii. C. Johnson, George Bry
an and Owen Burriss. Honorary
pallbearers were: Charlie Blake,
Clifton Warren, Jennings Russ,
Leo English, Lionel Potter, Clar
ence Bonham, J. D. Burriss, L.
W. Morgan, A. L. Fryar, J. T.
Brown, J. B. Williams, W. I. Wil
son and J. D. Lodor,
CAA Makes Plans To Provide
45,000 New Pilots By
July 1, 1941
WASHINGTON, June 3—I#)—1The
Civil Aeronautics authority ex
panded its primary training pro
gram for civilians today to pro
vide 45,000 new pilots by July 1,
1941 — a reservoir of prospective
fighter pilots for the army and
Chairman Robert H. Hinckley
said 15,000 civilians would be giv
en training in each of the three
quarters of the year beginning
June 15 in the 550 training centers
and others to be established in
every section of the nation.
The $5,000,000 which congress
has appropriated for the 1940-41
training period will be used im
mediately, Hinckley said, and an
additional $32,000,000 will be asked
to finance the expanded program.
“I don’t think that under the
present emergency we can wait,”
Hinckley continued. "The civil
aeronautics authority can under
take this task at such short notice
because we are already mobilized
to ao so.
He said that 9,800 new pilots
would be turned out by June 30
under the 1939-40 training program
in which colleges and flying schools
participated and that 90 percent
of them had expressed a desire to
enter the air services.
“While college training is desir
able, it will not be required and it
is estimated that a substantial por
tion of this summer’s trainees will
be made up of young Americans
not now enrolled in regular college
courses,” Hinckley said.
In addition to the primary train
ing, the authority plans this sum
mer to extend secondary instruc
tion of 45 hours to 1,000 students
who have already taken their ele
mentary training consisting of a
ground course of 72 hours and a
flight course of 35 to 50 hours.
During the fall semester of the
coming school year, 3,000 more
will be given secondary training.
An additional 1,000 primary in
structors will be given "refresher”
courses of 15 hours. During the
spring of 1941 the number of sec
ondary trainees will be stepped up
to 5,000. 1
Examinations For U. S.
Position Announcec
The United States Civil Serivc*
commission has announced oper
competitive examinations for th
position of instrument maker ii
the federal service.
The examinations cover fou
grades, with salaries ranging frorr
$1,800 to $2,600 per year, less a re
tirement deduction of three an<
one-half per cent.
Applications must be filed wit!
the commission’s Washington of
ftce not later than July 1 if re
ceived from states east of Colo
rado, and not later than July 5
1940, if received from Colorado anc
states westward.
Applicants must have completed
a 4-year apprenticeship as instru
ment maker, or must have had
certain experience in the trade, ir
either case including work with
high-precision physical, geodetic,
or similar scientific instruments.
Certain substitution of apprentice
ship or practical experience in the
machinist or toolmaker trades may
be allowed for part of this require
ment. For the three higher grades
additional journeyman experience
as instrument maker is necessary.
Applicants must not have passed
their fiftieth birthday.
Full information may be obtain
ed from A. B. Bradshaw, secre
tary of the board of U. S. civil
service examiners, at the post of
fice or customhouse in this city,
or from the secretary of the board
of U. S. civil service examiners
at any first- or second-class post
office. 1
HARTFORD, Conn., June 3.—<JD
—Homer Cummings urged tonight
"with the fervency of prayer” that
President Roosevelt be re-elected
"for our country’s sake.’’ The former
U. S. attorney general, in a prepared
speech opening the two-day demo
cratic state convention, coupled the
plea with the assertion that the
third term tradition "must, of course,
yield to the public good.”
STOCKHOLM, June 3.—<JP)—The
Allies were reported to have shot
down sijr German planes today in
the area around the far northern
port of Narvik, which was wrested
from the Germans last week. In
tense fighting was said to be in
progress along the entire Narvik
front with positions changing
hands frequently.
LONDON, June 3—I#!—A large
scale demonstration in Barcelona
in which Spanish students carried
banners and shouted “Gibraltar is
Spanish” was reported on the wave
length of the Madrid radio tonight
and heard in London. 1
A teacher In Indiana uses his
sportplane to give his students prac
tical illustrations of geography and
the phenomena of climate. Also, fuel
consumption and aerial navigation
provide interesting problems in arith
Moroline is a “one-jar ready-aid
kit". Use as a dressing for minoi
burns, bruises and irritations. Safe.
A M Always Demand -
Associated Press Writer
The French interpret the Ger
man bombing of Paris and the
Rhone valley as a political move,
not a military measure—and there
are factors which lend a color of
credibility to that interpretation.
It remains to be seen, however,
whether the raids are aimed pri
marily at French or Italian mor
ale. They might be an attempt to
encourage hesitating Italy to jump
into the war; or they could be a
prelude to a Hitler demand on
France to surrender or suffer the
consequences of "complete war”.
Whatever the German motive,
the raids also serve to distract
the German people’s attention from
the obvious fact that the huge Nazi
war machine, crushingly victor
ous in the low countries and north
ern France, is closing its grip at
Dunkerque on an all but empty
trap. For days Hitler’s high com
mand has promised the German
public that up to a million Allied
troops in Flanders would be an
nilated or captured. Fulfillment of
that pledge has been balked at
Dunkerque by a miracle of Fran
co-British valor that has thrilled
the world.
Despite the terrible price in lives
and abandoned stores and fighting
equipment, the last scenes of the
Battle of Flanders are turning in
to a moral victory for the Allies
that could influence the ultimate
outcome of the war even more
than could the physical triumph
by Germany. The events at Dun
kerque have already geared Fran
co-British public opinion, stunned
at first by the disaster in Flanders,
to a new fighting tension.
Dunkerque demonstrated some
thing else. It proved that, a reso
lute defense in floodable terrain
could stall the Nazi war machine,
for all its air superiority and its
massive armored divisions.
That is vital for the French, par
ticularly. They are standing along
a largely floodable defense line
from the Channel to the Maginot
fortifications, and they know now
exactly what to expect and much
more about how to meet it than
they did a month ago.
From its British-held left flank,
guarded from blitzkrieg assault
down the Channel coast by the
wide water of the Meuse estuary
the new front in northwest
ern France extends to a point
east of Rethel. The Somme and
Aisne rivers and their canal sys
tems impose a far stronger bar
rier against, the Germans than did
tne Meuse Little ' Maginot line de
The new line can be flooded wide
ly at many points against armored
division .^attack, as the other could
not. Back of it the ground rises
generally 300 feet or more. It of
fers perfect ground for massed
French 75's and heavier guns
and the French learned by bitter
experience how best to use such
there can be no surprise tricks
left now in the German warmak
ing bag. whether in dive-bombers
or massive mobile forts. Moreover,
a purged and battle - hardened
French leadership is in command.
The weak link for the French—
the place where flood waters can
not be loosed—is in higher ground
from the Aisne - Ardennes conflu
ence east of Rethel to the point
where the defense line joins the
still intact Maginot fortiflcations
along the Chiers river, north of
the Meuse. It is a narrow strip
and there have been insistant re
ports that Generalissimo Weygand
has massed heavy forces on that
front, either for defense or in hope
of assuming the offensive.
Against the background of what
is happening still about Dunker
que, the strength of the new French
position on the Somme-Oise-Aisne
line seems impressive.
The initial punch of the Nazi at
tack has failed to score a knocic
out. With its men and machines
worn, the 'German army cannot
hope soon to duplicate the power
of that first blow. Nor can it rea
sonably expect to be aided agaiij
by such happenings as accompa
nied the Flanders victory, collpase
of the French defense on the
Meuse, and the Leopold surrender
order to the Belgian army.
Nazi air superiority and the stun
ning power of German mechanized
divisions, now depleted 40 per cent
according to some computations,
have scored a heavy though cost
ly victory. But they have not won
the war. It seems possible that
continued Italian hesitation over
taking the plunge into the war can
be traced In part to the miracle
of Dunkerque, as well as rising
Allied hopes of balking the enemy
despite four weeks of appaling
This seems true, at least: Nazi
air power was not enough to pre
vent rescue of the great majority
of Franco-British army survivors
in Flanders. It raises a question
for Italy as to whether German
Italian air power could cope with
the heavy Franco-British naval
preponderance in the Mediterra
If not, Italy as a war partner
could become as much of a lia
bility for Germany as she was for
the Allies in the World War on
the Piavo front. Yet Berlin ap
pears to be beckoning Rome urg
ently to come in by repeated Nazi
bombing raids down the Rhone
valley to the Mediterranean and
air blows at Paris.
Is it because, for all his victories
in Flanders, Hitler sees his hopes
of a short war fading, his armies
slowing to a halt just short of full
victory as did those of Kaiser Wil
helm in 1914?
Only Hitler knows. 1
Nearly all icing conditions lie be
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