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WEATHER. . ^ _ * (U. S weather Bureau FbreeaaU ▲ V The Only evening paper toSo^rrow^^Vim rfWV'V'fc'V T VVm f Washington witfi the r;rytsrr«T«’ r.»* 111 ,LCL,L “d Wirephoto Serviccs „ . u ,, UNDAY MORNING EDITION Yederdiy'* Circalition, 120,510. Closing New York Markets, Page 1Z_ (Some return, not yet received.) No. 33,681. waThdinc*t*o“ BDUa WASHINGTON, D. C., SATURDAY, JULY 18, 1936.—THIRTY-FOUR PAGES. <*> M..n. AMoci,t.d Pr..., TWO CENTS. SPANISH PLANES BOMB MOROCCO REBEL TROOPS __ ^—w —III a* 1 Reported Uprisings in Spain Denied Officially. INSURGENT FORCES FACE GIBRALTAR President Manuel Azana in National Palace for Precaution. BACKGROUND Radical Front victorious in Spanish election February 16. Gen eral amnesty decreed for 25,000 Leftists, whose places in jail have now been taken by 2,000 Fascists, violently opposed to movement of • Spanish government leftwards. Unrest reached high point early this week when Jose Calvo Sotelo, monarchist leader, was assassinated by a group of men wearing Assault Guard uniforms. Army and political police leaders split over support for or overthrow of Left government. Political prob lem complicated by differences in ranks of the Leftists themselves. BULLETIN. HENDAYE, France, July 18 UP). —Reports from Spain tonight in aisted that a rebellion which broke out in Spanish Morocco today had spread to Spain itself and that garrisons in cities throughout An dalusia were in revolt. (Copyright, lyse. By the Associated Press.) MADRID, July 18.—Army planes bombed rebellious troops in Morocco, the ministry of the interior announced today, in quelling a sudden revolt which broke out at Mellila and spread to other parts of the Spanish zone. The undersecretary of state who made the announcement denied wide apread reports that there had been a similar revolt on the Spanish main land. but acknowledged that Ceuta, Morocco, just opposite Gibraltar, was In the hands of rebels. Fighting In Spain Reported. (Reports reaching French border points, but not confirmed from any official source, said there was fighting at a number of Spanish cities, in cluding Cadiz, Sevilla and Barcelona. Direct advices from Barcelona, how ever, said that Catalonian City was calm! Mosi oi tne Domoing was at wrum and Mellila, the ministry of the in terior statement said. In an official communique the gov ernment said: "A new criminal attack on the republic has been frustrated. The government did not wish to address the country until It learned exactly what had happened and put into ef fect urgent, inexorable measures to combat it. "Part of the army representing Spain in Morocco has risen in arms against the republic, revolting against its own country and performing a ghameful criminal act of rebellion against the legitimately constituted power. "The government declares that the movement has been limited exclusively to several cities in the Moroccan pro tectorate gone and that no one. ab solutely no one on the peninsula (Spain itself) joined this absurd scheme. "On the contrary, Spaniards have reacted unanimously and with pro found indignation against this shame ful act which has been frustrated a:' birth. "The government is pleased to an nounce that heroic centers and loyal elements are resisting sedition in the military bases of the protectorate, de fending with honor their uniforms, the prestige of the army and the authority of the republic. “Government Dominates.’* “At the present time the forces on land, sea and in the air of the re public, except for the absurd excep tions mentioned before, remain faith ful to the fulfillment of their duties, directing themselves against the reb els to quell the mad and shameful movement with all energy. "The government of the republic * (See REVOLT, Page 37) -• NEW SULTAN OF SULU FACES STORMY RULE Reports From Moroland Indicate Princess Dayang Will Cause Trouble. Mr the Associated Press. MANILA, P. I., July 18.—Reports from Moroland today indicated the path before the new Sultan of Sulu will immediately become a rocky one, with obstacles provided by Princess Dayang Dayang. Although Sultan Hadji Muw&llil Wassit. who was proclaimed spiritual ruler of 500,000 More*, was reported by authorities to have the support of a large majority of his subjects, the princess’ followers have possession of the official palace at Maibun. It was at Maibun, on Jolo Island, that the Sultan was crowned yesterday at ceremonies the princess refused to attend. The princess, adopted daughter of the late Sultan and acting Sultana until the coronation yesterday, claimed that as acting Sultana she •lone waa eligible to call the datus (chieftains) together to elect a Sul tan. Reports stated the princess’ fol lowers in possession of the official palace may make trouble if Wassit at tempts to move in. The Princess’ consort, Datu Umbra Amllbangs*, who is a member of the Philippine Commonwealth Assembly, said here today that his wife would not recognize the new Sultan. The princess was to have left Jolo last sight for Manila. PRESIDENT MANUEL AZANA. NEW ARREST SEEN IN GIRL SLAYING White Suspect Sought as Police Quiz Asheville Hotel Bellboy. Pt the Associated Press. ASHEVILLE. N. C.. July 18 —Chiel | of Detectives Fred Jones announced | today he expected the Immediate ar ! rest of a white suspect in the mys terious assault killing of blond Helen Clevenger of New York. He declined to discuss the forecast ' further, pending developments. The announcement came as polici 1 questioned a colored bellboy whc j Sheriff Lawrence E. Brown said fitted | the description of a man seen in th« doorway of the darkened hotel room of the pretty New York Universltj honor student several hours before het body was found. The bellhop, 27-vear-old Joe Urey who went off duty at fashionable Battery Park Hotel just before the time investigators believed the New York University honor student wai shot and stabbed by an attempted ravisher, was lodged ir. jail by police last night, with no charge preferred. Police Question Relative. As they delved into his actions dur ing the tragic period early Thursday morning. Sheriff Brown went into conference with J. F. Clevenger, the girl's father, who arrived here last night from their home at Great Kills, Staten Island, N. Y. Also present were the girl's uncle. W. L. Clevenger, professor at North Carolina 8tate College at Raleigh, who found her body about seven hours after she was slain, and another uncle, C. B. Clev enger, also a member of the college's faculty. Sheriff Brown said the crime ap peared of local, spontaneous origin, but that he wished to get all possible Information from the father as to connections of the petite coed which might have played a part in her death. The body of the 18-year-old girl, whc«e assailant gashed her face before killing her with a pistol to her breast, will leave tonight for Piqua, Ohio. Her parents are natives of Ohio. The girl was bom in Washington, D. C. There was no specific charge against (See GIRL SLAIN, Page“T) CANTON AIR FORCE DESERTS TO CHIANG Sixty Planes Purchased in U. 8. by Gen. Wong Given to Na tional Leader. By the Associated Press. HONGKONG, July 18.—The deser tion of scores of Canton aviators fly ing 60 airplanes, which they presented to the National Chinese government, was reported through Chinese sources today. The flyers were said to be turning their backs on the southwest forces and entering the command of Gen eralissimo Chiang Kai-Shek on the understanding that he would not ally himself with Japan. Gen. Wong Kwong-Yui, former commander of the Canton air force, landed here in one of the planes and said the entire southwest air force was deserting. Most of the planes, he said, were flying to Siuchow. He said the flyers were unwilling to engage in civil war against the Central govern ment of Nanking. Gen. Wong is one of the best-known military figures in China. Many of the Canton airplanes were purchased by him personally in the United States. Bath Disturber Held by Police Revealed as Wealthy Architect Alden Freeman, 74, who was ad mitted to Qalllnger Hospital Thursday because he disturbed patrons of a Turkish bath by talking about his great wealth, today was revealed to be not only wealthy, but also prominent as an architect, author and political reformer. Forty-eight hours after his com mitment, however, Qallinger officials and police admitted they had taken no steps to get in touch with relatives to verify his story or take care of him, and still were “passing the buck” on whose responsibility it was to do So. Freeman, listed in "Who’s Who," was arrested Thursday while visiting a bath in the 1400 Mock of Q street. On his person, in pockets pinned *' 4. gether with safety pins, was some change and $100 In traveler’s checks. The name Alden Freeman was signed to the checks. Lieut. Horace W. Lineburg, who took Freeman into custody, said: “He didn’t make any objection when be learned he was to be locked up. He just talked in a rambling way. Perhaps the heat had affected him. He seemed to be very agree able." Mental Trouble Rejected. Dr. Joseph U Gilbert, chief of Gal llnger’s jwychlatrlc ward, said Free man la smering mental trouble of some kind, but that it will require "some little time and study” to de (8ee AfeCHTOCT. Page 4.) A ' OU OF SIM WILL BE PRESSED BY DR. TOWNSEND Pension Leader Declares Feelings Toward Okla homan Unchanged. ACTION WILL BE TAKEN AFTER CONVENTION ENDS Norman Thomas Will Address Session Today—Demonstration Aimed at Bell. •»* ,ne Associated Press. CLEVELAND, July 18.—With gaps in their official ranks apparently at least temporarily closed, delegates to the second National Townsend Con vention convened today for commit tee and business reports and to hear Norman Thomas, Socialist candidate for President. Thomas was on his way here from Charlottesville, Va„ for an after noon address. Representative William Lemke, Union party presidential candi date. is scheduled to address the con vention tomorrow. Invitations extended to President Roosevelt, and Alf Landon, the Re publican nominee, were declined, and Prank Arbuckle, convention chairman, said no attention would be paid to a demand by Earl Browder, Communist party candidate, that he be allowed to speak. By resolution the Townsendites al ready had declared their official non partisanship. and the chairman yes terday held that any resolution urging third-party affiliation would auto matically be out of order. Today the convention adopted a resolution de claring that the old-age pension or ganization "shall not at any time dur ing this campaign, directly or indirectly • • • indorse any presidential or vice presidential candidate." Townsend to Press Demands. | Just before the session opened Dr | Francis E. Townsend, leader of the j movement, told newsmen that he would ' nense Kir Unmans) //-»*» tKs mmaiia 1 a 1 I Gomer Smith, Townsend vice presi | dent, after the convention waa over. The doctor said his feeling toward ; Gomer had not changed in the slight est. Dr. Townsend said he was still ! very unhappy over the speech Oomrr ; delivered before the convention de fending President Roosevelt and the New Deal administration. Gomer, In a speech before the con vention Thursday, criticised Rev. Ger ald L. K. Smith, who claims leader ship of the share-the-wealth move ment and a Townsend director. He ! attacked Father Charles E. Coughlin ! of Detroit for the priest's speech in which he called the President a "be trayer and a liar." "My statement still stands that I never intend to sit on another meeting of the board of directors attended by Gomer Smith," the doctor said. "The situation still is that the board had not finally acted on the matter.” As the convention opened the re striction on demonstrations was lifted and delegates paraded. Chairman Arbuckle said it was a demonstration against Representative Bell. Democrat, of Missouri, chairman of the congres sional committee which Investigated the Townsend Plan. Board Makes Statement A threat by Townsend, the move ment’s founder, that he would not sit with the Board of Directors until the ouster of Gomer Smith drew the fol lowing statement from the board early today: "No action will be taken by Dr. Townsend or the national board to censure any of the speakers that have appeared.” The elderly pension chief then is sued a statement which read: "In view of the stress of other busi ness of the convention, no further action will be taken regarding Mr. Gomer Smith remaining upon the (See TOWNSENDITES, Page 3.) TEMPERATURE DROPS AS HUMIDITY RISES Thundershowers Are Expected Probably Late Tonight or Tomorrow. Unusually high humidity readings this morning gave promise of making the day uncomfortable for Washing tonians, despite a break in high tem peratures. A temperature of 76 de grees at 10 am. was accompanied by a humidity reading of 68 per cent. Local thundevhowers are expected, probably late tonight or tomorrow. Cooler weather is forecast for tomor row and Monday. The mercury slipped into the 90’s again yesterday, reaching its peak of #3 at S p.m. The lowest reading was 71, at 5 am. today.__ AND AUTO CRASH Members of Two Pennsyl vania Families Hurled 30 Feet Into River. B/ tbt A.'soeistea Press. DUNDEE. Mich., July 18 —Nine j members of two Pennsylvania families : were killed today when the sedan in ; which they were riding was struck by j an Ann Arbor passenger train a few minutes after they Mt the home where they had been visiting here. The locomotive smashed into the automobile, dragged it 75 feet to a high trestle, and hurled the bodies of the victims 30 feet into the shallow water of the Raisin River. Wreckage of the automobile burst into flames. and Ignited ties of the bridge, but the Are was quickly extinguished. The victims were identified as Mr. > and Mrs. Harry 8cbuster and their daughters, Vina, 1ft; Anna, 12. and Sandra Jean. 6 months old, and Mr. and Mr. Sam Pisano and their daugh ters. Betty, ft. and Mary, ft. The Schusters lived in Farrell. Ps and the Pisano family In Wheatland Brother Collapse*. The two families had stayed over night with Schusters brother, Carl, who collapsed on learning of the tragedy. Mrs. Pisano and Mrs. Harry 8chuster were sisters. The northbound train operating between Toledo and Ann Arbor smashed into the car at high speed. | witnesses said. The crossing is guarded j by signal lights, but the view to the south is obscured by buildings. There is a sharp rise in the highway as itj reaches the crossing. Ray Wilson, operator of a filling station nearby, was the first to reach the scene. "I heard a temffic crash,” he said, "and rushed out. I saw the bodies in the river, and the flaming wreckage scattered along the trestle and far down the right-of-way. Parts of the car dropped off each side of the bridge and the bodies were hurled in all directions. All of them fell in the river in about a foot and a half of water. Signal in Operation. Wilson said the warning signal was in operation. State police and local officers re covered the bodies, which were taken in Mnnrnp hv f!ornn#»r FHwnrH Runn Carl Schuster, who had gone to Pennsylvania for the funeral last Tuesday of another niece, Mary Schuster, 14, accompanied the two families when they crme here. He rushed to the scene of the crash, un aware that the victims were members of his family, and collapsed as the bodies were dragged from the river. The crossing is in the east part of Dundee. The crash occurred less than 10 minutes after the two fam ilies had left Carl Schuster’s home. Used Boats to Recover Bodies. Officers were obliged to use row boots to retrieve the bodies, and to row about 300 feet upstream In order to take them to the waiting ambu lances from Monroe. The bodies were badly mangled. Members of the train crew said the train was traveling about 45 miles an hour when the crash occurred. The train traveled about half a mile before it could be brought to a halt. It was backed up, and crew members tested the signal light and said it was functioning properly. The Schusters leave one son, Harry. Jr., 31, who did not make the trip, and the Pisanos are survived oy seven boys, all at home. Mrs. Schuster and Mrs. Pisano are survived by a sister, Mrs. Sadie Black of Hew Castle, Pa., and two brothers, Joseph Baker of Sharon, Pa., and Conrad Baker at Farrell. Hairy Schuster was a welder em ployed at a steel concern In Sharon. Both he and Mrs. Schuster were 46 years of age. Pisano was 50 and his wife 4S. CRONIN’S MOTHER ILL Bad Box Manager Will Fly to San Francisco Today. B08T0H, July 18 (#)■—Joe Cronin, manager of the Boston Red 8ox, said be would fly to Ban Francisco today, where his mother was reported seri ously 111. Cronin will take off at 4 pm. (East ern daylight time), arriving in San Francisco at $ o’clock (Pacifit time) tomorrow morning. The nature of Cronin's mother's ill ness was not disclosed. Home-Made Outfit Of Youthful Diver Results in Death Garden Hose Connected to Gasoline Can Hel met Springs Leak. By the Associated Press. SANTA MONICA. Calif.. July 18.— A boy’s attempt to explore the bottom of the yacht harbor here with a home made diver’s outfit ended in.death today. With a gasoline can for a helmet and a garden hose fastened to a bicycle pump, 16-year-old Robert Fety and two young companions had been making dives for two years. Two hun dred feet offshore yesterday Harry Wollin, 15. and Hunt Albert, jr„ 16, felt a feeble signal to hoist. They had patched a leak in the hose with tape Groggy when he reached the sur face. Fety relaxed his hold on tha anchor rope and sank. Lifeguards sought the body today. IRRIGATION PUN Drought Area Survey to Be Made in Rural Rehabili tation Program. 8’ the Associated Press. RAPID CITY. S. D.. July 18.—Plans to study small irrigation works as part of a rural rehabilitation program In seven North Central States were an nounced today by Rexford Tugwell, head of the resettlement administra tion, Tugwell ordered that two irrigation engineers be assigned immediately to investigate the possibilities of develop ing irrigation in North and South Dakota, Nebraska. Kansas. Colorado, Wyoming and Montana, after viewing nearly 400 miles of the drought areas in Central and Western North and South Dakota. Immediate Aid Plans. Coming here from Pierre, he met with a group of resettlement official* to discuss plans to extend immediate aid to thousands of destitute fanners in South Dakota and Eastern Wyoming, affected by the drought. He planned to leave for Bellefourche by automobile late today, and tenta tively purposed to investigate condi tions in Eastern Wyoming and Mon tana before returning to Washington. "A survey will be undertaken as to uae of available water supply at once,” Tugwell said. "On every hand throughout the parched area we have traversed, this need waa present.” Tugwell, In passing through the Mis souri River area yesterday, expressed interest in irrigation possibilities in that region. Program an Emergency. "The emergency is the present pro gram of the Resettlement Administra tion,” Tugwell said. “Subsistence needs of farm families, the making available Of sufficient funds for live stock feed, and the marketing and purchase of surplus live stock is the work that resettlement field forces must concentrate on to aid the drought-stricken area.” Gov. Tom Berry, here for the con ference, expressed “gratification" that the Federal relief program would be in full swing by Monday, as promised by Tugwell. “I am confident that there will be no downright suffering because the Resettlement and Works Progress Ad ministrations are moving swiftly to meet the emergency,” Berry said. HEAT BROKEN IN S STATES. ■ * Foreeast Glad News to Michigan, Wisconsin, Minnesota. CHICAGO. July 18 OP).—The heat wave which for 15 consecutive days took thousands of lives was announced as ended today in Michigan, Wiscon sin, Minnesota and probably North Dakota by Weather Forecaster J. R. Uoyd. Seasonable temperatures will pre vail in those States for the next three or four days, at least, the meteorologist said. In addition, rains and cooling breeaes will bring relief over the week end to most of the other States to the Western and North Central drought ana. with the exception of SouSh'Da (See IRRIGATION^Page a.) MAN IN BALTIMORE BELIEVED GOINGS Tells Police of Bus Trip to Philadelphia While Being Sought Here. Special Dispatch to Th« Star BALTIMORE, July 18. — While Washington and the Kensington. Md.. police continued their search for Robert L. Gittings, reported missing at. the Maryland town since Wednes day night, a man walked into the Frederick road police substation here and identified himself as Sittings. Gittings, manager of a Washington dry cleaning establishment at 1925 New York avenue, in Washington, failed to come home from his place of business after an argument Wednesday ; with a colored employe, who, accord ing to Oittinga, said "111 get you to night." Gittings' abandoned car with a note addressed to his wife was found neat the Potomac River water front. It aaid. "I am going down on the moon light." Telia of Bus Trip. He told Baltimore police, however, that he did not take a nearby moon light excursion boat as he originally in tended, but went to a bus terminal, the Great Eastern, bought a ticket for Philadelphia and left to try to find the colored man, who was said to have threatened him. The colored man's father, the man said, operates a blacksmith shop in Philadelphia. He failed to locate the place and boarded a return bus yes terday afternoon, getting off just north of Baltimore about 6 p.m. Althouh Gittings said he read the story of hie disappearance in the Evening Sun, he said he "didn’t want to bother any one” and therefore did not then com municate with his wife and mother in xkciwuigion. Police Capt. John L. Carroll of the Southwestern police district, contin ued to question the man and is check ing on the details of his story. Given Breakfast by Felice. The man. who said he was Cittings explained he took the bus be< ..use he had but (14 with him and feared thh would not cover expenses of an auto mobile trip. Without funds, he wat given breakfast at the Southeastern district police station. The colored laundry employe, whc ! supposedly told Glttings “I’ll get you,’ was absolved of all suspicion by Wash ington police today. Officers questioned the man. they said, and satisfied themselves he knew nothing of the case. The complete note left by Gittingi in the car he parked on Water street follows: “Dear Kltt: I can’t stand these hourt any longer. I am through. I am go ing down on the moonlight. Take care of Sonny. I love you allways. “BOB.” australia7s leading GERMANY IN TENNIS Interxone Davis Cup Series Open ing Match 1-0—Anita Lixana Retains Title. WIMBLEDON, England. July 18 (JP), —Australia took a 1-0 lead over Ger many today in the opening match ol the interaone Davis Cup Tennis Seriei as the veteran Jack Crawford won by default over Heiner Henkel. The young German player retired after Crawford won the first two seta. 8—2, 8—2. Later it was announced Henkel had been confined to bed for aeveral days suffering from chills. His weakened condition made it difficult for him to cover court. Night Final Delivered by Carrier Anywhere in the City Full Sports Base Ball Scores, Race Results, Complete Market News of the Day, Latest News Flashes from Around the World. What ever it Is, you’ll And It In The Night Final Sports Edition. THE NIGHT FINAL SPORTS and SUNDAY STAR—delivered by carrier—70c a month. Call National 5000 and service will start at ones. SHOWDOWN NEAR I ~ 1 BY SECRETSERVICE Treasury Officials Question Head of St. Paul Office on Activities. QUIZ OF OTHER AGENTS IN WEST WILL FOLLOW Joseph Murphy, Assistant Chief, Ordered Here From California for Interrogation. BT REX COLLIER. The mystery of the "misconstrued” orders which led Secret Service agents in St. Paul and Chicago to stray from their legal field of operations into an ••Ill-advised” undercover investigation of the Federal Bureau of Investigation ia expected to be cleared up with the arrival here of Joseph Murphy, assist ant chief of the Secret Service. Murphy, quoted as being "horrified” that any of his men might have mis construed "anything I told them,” has been ordered here from Califoria, where he was reached by telephone Wednesday night. Meanwhile Treasury officials were interviewing Grady L. Boatwright, head of the St. Paul office of the i sprrpt who. it is said, has named Murphy as the official who in structed him to check up on F. B. I gunplay In the fatal shooting of Eddie Green, Dlllinger gangster, in 1934. Thomas J. Callahan, head of the Chicago office, and Harry Schaetzel, Secret Service agent, also are to be questioned in connection with an in quiry as to whether the fatal shooting of John Dlllinger in Chicago, two years ago, was justified. Nat Authorised Under Law. Such Inquiries are outside the au thority of the Secret Service, which, as a result of similar activities in 1908 under orders of President Theodore Roosevelt, was restricted by Congress to investigating counterfeiting and protecting the President and his family. Secretary of the Treasury Morgen thau Id understood to have expressed displeasure over the activities of the ! Secret Service men and to have tele ! phoned assurances to Attorney Gen eral Cummings and to Director J. Ed gar Hoover of the P. B. I. that the af fair will be thoroughly sifted. Disclosure that the "check-up” bj the 8ecret Service men on the Dil linger case has been going on for sev eral months has made the matter more puzzling than ever. Persons in St. Paul are said to have informed I the O-men they were approached by Secret Service men as long ago as 1 April and May. More than a dozen j citizens in St. Paul, including under world characters, police and witnesses to the Green shooting were questioned. President Roosevelt is away, but it is believed the White House is being kept advised of developments in the Treasury's inquiry. Conference Long One. Boatwright was in conference foi several hours yesterday with W. H ; McReynolds, administrative assistant j to Morgenthau, and with W. H. Mo I ran. chief of the Secret Service. Both I officials have expressed concern ovei the investigations in St. Paul anc ! Chicago. Apparently none of the persons in terviewed by the Secret Service mer gave information to the discredit ol the G-men. Several tipped off agent of the F. B. I. that an apparent effort to "get” them was under way. It was the belief of these citizens thai Secret Service men were being im personated by enemies of Hoover, anc this led to the sensational disclosure SkaS Ska iniamian-«» «iraM 4m. posters but actual Secret Service operatives. Green, bank robber and machine ' gunner and the man who arrangec medical treatment for Dilllnger aftei the latter was wounded by G-men ir St. Paul on March 31,1934, was fatallj shot when he reached toward his gur pocket after being trapped by F. B. I agents. He survived for a week, mak ing a full confession of his participa tion with Dilllnger in numerous bloodj forays In his apartment were found tw< machine guns, the stock of anothei belonging to Dilllnger, a shotgun, ar automatic rifle, a .45 caliber automatic pistol, a bullet-proof vest and mucl ammunition. Details of the Dilllnger shooting lr Chicago are too well known to repeal here. •-• HUEY’S BROTHER RULES It’s Long Again in Louisiana at Earl Takes Charge. NEW ORLEANS, July 13 (fP) Louislana had another Gov. Long to day. With Gov. Richard Leche en route to Washington for conferences on re lief funds, Ueut. Gov. Earl Lons became acting Governor. He is a brother of the late Hue; Long, who waa Governor before he became 8enator. i in-1 FIDELITY LOAN CO. ORDERED CLOSED; EX-HEAD ARRESTED Fred B. Rhodes Is Charged With Larceny of $13,000 of Deposits. WARRANT IS SERVED AFTER FEDERAL PROBE Use of Funds to Cover Overdraft in Personal Account Laid to Attorney. BILLETIN'. The controller of the currency today closed the Fidelity Building & Loan Association and appointed a receiver for the company William Prentiss, jr., acting con troller of the currency, in a state ment, said he had appointed M. L. Barnett, jr., as receiver, and that the receiver has taken possession of the assets and the books and records of the association. “The action of the controller wps taken while an examination of the condition of the building and loan association was being made by ex aminers from his office. The exam ination revealed apparent irregu larities and losses which exceeded the profits and reserve accounts of the association, and which in the judgment of the controller ren dered the association insolvent. "All offices of the association will be closed to the public for a period of at least 10 days in orler to give the receiver and his staff suf ULieiu unit' lu pirpcue tuc uctca sary records of the receivership. “The main office of the associa tion is located at 610 Thirteenth street. It operates fix branches, located at 3072 M street, 3008 Four teenth street. 735 North Capitol street. 1427 H street northeast. Eighth and K streets southeast and 431 11th st." The Treasury's action followed the arrest earlier in the day of Fred B. Rhodes, an attorney in the National Press Building, and for mer president of the association, on a charge of larceny of *13,000 of the company's funds. The warrant was served on Rhodes at l p.m. and he was im mediately taken to police head quarters, booked, fingerprinted and then released on bond of *5.000. The Fidelity Association has about 16.000 accounts, most of which are small. It does not belong to the District of Columbia Building & Loan League, which includes most of the city’s building and loan as sociations. and its accounts are not insured. It was incorporated in March. 1929. Rhodes became presi dent in 1933. A warrant charging Fred B. Rhodes, well-known attorney and former president of the Fidelity Building & Loan Association, with larceny of $13,* 000 from the association was issued at 12:15 p.m. today by Police Court Judga ! John P. McMahon. Rhodes’ arrest will culminate an in vestigation by Treasury and Justice Department examiners and the office of the United States attorney, which be gan some time before last February when he resigned as Dresident of the financial institution. The Fidelity is one of the city'# larger building and loan associations, having a main office located at 610 Thirteenth street and six branches. Warrant Given Detective. The warrant was issued at the re quest of Assistant United States At torney Henry A. Schweinhaut and was immediately placed in the hands of Detective Sergt. P. E. Ambrose for service. I Schweinhaut said other transactions ; of Rhodes' besides the one described in the warrant are under investigation. Rhodes was specifically charged with obtaining a S13.000 loan from the Fidelity last November 8 through a "straw” party, and with credit ing the money to his own account at the Fidelity to meet an over draft. The loan reportedly was for construction on land in the Guilford subdivision, Fairfax County. Va. When the overdraft had been met only *398 was left of the *13.000. Schweinhaut stated his investigation showed. Larceny Under Code. The former banker was charged un der a section of the District code which states that misappropriation of money of a building and loan as sociation by an officer of the associa tion shall constitute larceny. Schweinhaut said the Fidelity ha# some four and a half million dollars of deposits. Schweinhaut said both the Treasury and the Department of Justice will continue their investigations. Readers' Guide Page. Amusements _ C-12 Art.B-3 Books.-.B-2 Church News_B-4-5 Comics ..B-7 Death Notices-A-8 Editorial .A-6 Finance. A-12-13 Lost and Found..A-3 Music . B-3 News Comment Features A-7 Radio.-.B-8 Real Estate News..C-l-7 Serial Story...B-5 Short Story-B-6 Society_ A-9 Sports.A-10-11 Washington Wayside.A-2 Woman’s Features.B-8