Evening star. [volume], March 11, 1937, Page A-2, Image 2

About Evening star. [volume] (Washington, D.C.) 1854-1972

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CLAIM OF RHODES
IS DENIED BY IRR
Fidelity Depositor Says He
Did Not Tell Official to
Use Account.
Desire Irr. elder Government Print
ing Office engraver, flatly denied in
District Court today the defense con
tention that he had thrown open his
account at the Fidelity Building and
Loan Association to aid Fred B.
Rhodes, former president of the in
stitution. charged with forgery.
The case against Rhodes is built
on a $1,500 withdrawal slip charged
against Irr's deposits at Fidelity in a
series of transactions the defense says
was necessary to keep the association
going in the face of a fight by the
controller of the currency.
Recalled to the stand as a rebuttal
witness by Assistant United States
Attorney John J. Wilson after Rhodes
had testified Irr pledged him his aid
in Fidelity's troubles, Irr disclaimed
doing anything of the sort. He stuck
to his story under cross examination
by William E. Leahy, chief of defense
counsel.
Trial Nearing Close.
As he left the stand the Government
began the introduction of a number of
exhibits paving the way for final argu
ment. There is a chance the jury will
get the case sometime this afternoon,
although it may go over until tomor
row morning.
The $1,500 withdrawal slip was
dated February 14. 1936, about a week
beiore Rnodes resigned from Fidelity
and approximately four months before
the institution was closed.
When Irr was recalled today Wilson
asked him the date when he first knew
of the withdrawal slip and he said,
as he had previously testified, that it
was March 4. 1936.
The prosecutors, referring to pre
vious testimony, asked the witness if
at any time he had told Rhodes that
he (Irr) had "had a good account in
the Fidelity” and also "not to hestiate
to call on you,”
"1 did not.” the witness said.
Similar Answers Given.
"On March 4, 1936, in your conver
sation with Mr. Rhodes, after he told
you about withdrawing certain sums
from your account, did you tell him
to Go ahead, I told you to do it?’ ”
Wilson asked.
"No, I did not,” the witness empha
sized.
Similar questions of the same nature
drew the same response.
In starting his cross-examination,
Leahy attempted to refresh the witness’
memory about conversations he re
putedly had with Rhodes some years
before when Fidelity was in trouble
with the controller and Irr was said
to have pledged his aid to Rhodes.
The witness insisted no such conver
sation took place.
'T remember one thing—I didn't give
anybody any authority to use my
money," he said.
Rhodes on Stand Again.
Rhodes took the stand yesterday
and was brought back this morning
for examination by his own counsel
and repeated his testimony that he
had not profited “one cent” from the
transactions at Fidelity.
Again he blamed the controller's
office for closing the institution last
July, saying that at first the controller
had ordered a dividend declared and
that when this was done he had de
clared the institution insolvent.
Later in his testimony he said the
dividend was ordered by I. I.
Chorpening, chief national bank ex
aminer. When the directors sought to
cancel the dividend, the controller’s
office refused to allow that, according
to the witness. He then told of an
effort to keep the institution alive by
pledging $41,000 of his own holdings
This plan did not materialize.
Fireworks marked Rhodes' appear
ance yesterday. At one time Leahy was
rebuked for "Impertinence" by Jus
tice Peyton Gordon, presiding, as he
sought to develop the close relations
between his client and Irr.
Rhodes and Wilson Tangle.
Later Rhodes and Wilson tangled
when the former Fidelity head ac
cused the controller of the currency
of keeping Fidelity closed because of
“his fight on me."
A bookkeeping maze was disclosed
In the Government's cross-examina
tion designed to tie up the withdrawal
slip with an overdraft of Rhodes. So
much so that Justice Gordon admitted
that he had become confused in at
tempting to follow the various trans
actions.
The troubles of Fidelity, it was
brought out, revolved principally
around a determined fight to keep
open six branches in which there was
a property investment of $110,000, in
the faoe of efforts to close them by
the controller’s office, which would
not allow these holdings to be con
sidered as assets.
Admits “Charges” to Accounts.
Admitting there had been charges
made against the accounts of cus
tomers other than Irr, Rhodes said
it was necessary to do this to keep
the institution from going under.
"There never was a dollar with
drawn greater than the amount of
real estate held,” Rhodes replied to a
question by Justice Gordon as to the
right of any officer of Fidelity to
switch accounts about. He contended
this was lawful
Recalling that Rhodes had said he
assumed he had the privilege of mak
ing charges against Irr’s account,
Wilson asked the witness if he had
obtained the same authority from
other depositors.
"Some I did and some I did not,”
he said.
"Not one cent did I profit, either
directly or indirectly—not one single
cent,’’ Rhodes insisted.
Congress in Brief
TODAY.
Senate:
Routine business.
Judiciary Committee hears Assistant
Attorney General Jackson on court
reorganization bill.
La Follette Committee resumes civil
liberties inquiry.
House:
Resumes consideration on Guffey
Vinson coal control bill.
TOMORROW.
Senate:
May hold brief session if Appropria
tions Committee is ready to report
Treasury-Post Office bill, otherwise no
session is likely.
Judiciary Committee continues hear
ings on President’s court bill.
Military Affairs Committee holds
regular weekly meeting.
House:
Considers neutrality bill.
Rivers and Harbors Committee meets
10.30 a.m.
*
Washington
Wayside
Tales
Random Observations
of Interesting Events
and Things.
MEMENTO.
WE HAVE in hand a letter
from a lady reporter who
says that Mrs. Edward B.
McLean has on the wall of
her home, in a neat little frame, the
canceled check for $100,000, paid to
Gaston B. Means for the purpose of
recovering the Lindbergh baby.
The canceled check, and one of the
most wonderful Baron Munchasen
stories of the age, were all that Mrs.
McLean got for her money.
Which reminds us that a reporter
who visited the Federal prison where
Means is talcing the rest cure stopped
in to chat with the “best investigator
in the whole wide world."
“Been doing any writing lately,
Gaston?" asked the reporter.
“Nothing very much since ‘Gone
With the Wind,’ ” replied chubby Mr.
Means, his face all bland and inno
cent.
* * * *
FRIEND.
Our night club scribe is begin
ning to worry a bit about his repu
tation. Claims his conduct is
beyond reproach, but the other
night he called Al Norton, who
leads a band in one of the local
cabarets, and, in the course of the
conversation, asked: "Say, Al, will
you do something for me?”
"Sure” said Al. "What precinct
you in?"
* * * *
BIG SHOT.
! \yHEN the 16-ton Army “flying
fortress" came in tor official in
spection at Bolling Field the other
day, Brig. Gen. Henry Conger Pratt,
first Army Air Corps officer to become a
permanent general of the line, arrived
with a party of War Department offl
1 cials to inspect it.
i All were dressed in civilian clothes.
“Fortress" was surrounded by a cor
don of troops instructed to keep spec
tators at a distance. Gen. Pratt ap
proached.
“Sorry, no visitors,” said a guard.
The general said he would like very
much to see the plane, and how could
he go about it?
“Mebbe if you ask the corporal of
the guard," said the soldier
The general saw the corporal and
explained. The corporal sent a courier
to the officer of the day. The officer
of the day thought it over a while
and said "O. K.” A messenger re
ported this to the corporal, while Gen.
Pratt and his friends stood with backs
to an icy gale as they waited. Finally
the corporal passed the word along to
the general, who turned to his com
panions and, smiling, said: "It’s all
right now. The corporal says we may
pass.”
JURISPRUDENCE.
JN THE landlord and tenant divi
sion of the Municipal Court the
other day a landlord had brought
action against a tenant for possession.
The tenant asked for a stay of execu
tion, but counsel for the landlord
objected strenuously to any delay.
Thereupon the judge said, "I have
stated that it is my opinion that I
have no authority to grant a stay
of execution and no discretion but am
required forthwith to enter judgment;
however, unless you see fit to consent
to a stay in this case I may change
my opinion and reach the conclusion
that I do have such authority."
<P. S.—The attorney consented to
the stay.)
* * * *
SELLOUT.
JpELLOW we know went calling the
other evening with his wife. In
the house where they visited the wife
does a bit of trading in antiques on
the side, w'hile her husband is a busi
ness man and, in his spare time, an
ardent horseman.
Visitors arrived to find the husband
slouched dejectedly in an antique
chair, his hands stuck deep down in
the pockets of his riding trousers.
“What's the matter, not feeling so
good?” said our friend.
“Boy,” said the husband, "you don’t
Ipow this antique business. Just to
night, for the fourth time in six
months, I’ve had the bed sold right
out from under me. We get one, I
break it in nicely and begin to like it
and then a customer comes along—
and out I go.”
* * * *
GRAPHIC.
Hidden somewhere in the make
up of most newsboys is a combina
tion of salesmanship and news
judgment, but we have at last lo
cated a lad whose headline sense
Qualifies him as our favorite news
commentator of the year, and
phooey to Boake Carter.
Witness his treatment of the re
cent strike in the Willard Hotel.
Tuesday morning his cry was
"Willard sits down. Willard sits
down. Read all about it. Willard
sits down.’’
Wednesday he cracked, •’Willard
sit-downers stand up. Read all
about it. Willard sit-downers
stand up."
^ w
QUANDARY.
DEBATING team from Woodrow
Wilson High School recently went
to the mat with the argueflers from
Bethesda-Chevy Chase High School
on the question "Resolved, that all
electrical utilities should be govem
mentally owned and operated."
W. W.’s negative team won its de
cision at Bethesda, and so did the
affirmative team at W. W. So, no
matter who is right, they’re both
wrong—or figure it out as you will.
We think It means that the utilities
and the Government will have to shift
for themselves.
Mayori Bar Alcohol.
Mayors of 31 cities and towns In
Victoria, Australia, have refused to
provide alcohol at Council gatherings.
*
ROOSEVELT GOING
TO GEORGIA TODAY
Clears Desk Before Depart
ure for Two Weeks’ Rest
at Warm Springs.
President Roosevelt was busy today
clearing his desk and getting ready
to leave Washington this afternoon
for a two-week stay at Warm Springs,
Ga.
With his series of Supreme Court
speeches out of the way and the
Senate Judiciary Committee starting
its hearings on the President’s pro
posals for revamping the courts, the
President will leave Washington with
a feeling of assurance that he will be
able to get in two weeks’ rest without
any great amount of interruption by
business.
The President is taking along with
him Secretary McIntyre and a skele
ton force from the executive office.
The President alms to enjoy himself
principally by swimming in the Warm
Springs pool once each day and de
voting the afternoons to driving about
the country.
Will Go to Cottage.
He will go directly to his white cot
tage on Pine Mountain overlooking
the foundation which he established
for infantile paralysis sufferers,
Mr. Roosevelt at a press conference
late yesterday said he and Prime Min
ister W. L. Mackenzie King of Canada
had discussed the St. Lawrence water
way treaty during King's week-end
visit here.
Whether the treaty will be sub
mitted to the Senate at this session,
he said, is not yet known. It was re
jected a few years ago.
The President also expressed regret
at the rejection of the proposed child
labor amendment by the New York
State Assembly.
In the party accompanying the
President to Georgia is William C.
Bullitt, Ambassador to France, who
will report on conditions in France
and other places in Europe.
Bullitt will return to Washington
the day after the President’s arrival
at Warm Springs.
Mrs. James Roosevelt, wife of the
President’s son, is accompanying Mr.
Roosevelt as hostess. Her husband,
now a member of the President's sec
retariat, will join the party probably
next week.
Others in Party,
Others in the party will be Miss
Marguerite Le Hand, the President's
personal secretary: Miss Grace Tully
and Miss Roberta Barrows of the sec
retarial staff: Dr. Ross T. Mclntire,
White House physician: George Fox,
! his assistant; Miss Louise Hackmeis
I ter and Edward W. Smithers of White
; House Communications Division,
i Mr. Roosevelt indicated on his de
parture that one of the first things
he will give his attention to on his
return to Washington will be to work
out the details for the relief program
for the coming year.
-•
Raids
(Continued From First Page )
information to some 100 gambling
places.
Although planned with great secrecy,
a slip-up almost spoiled yesterday's
concerted drive, which was designed to
smash Washington’s huge race horse
betting industry.
Word leaked out at Police Court
that deputy marshals were about to go
out on a raid. Yesterday morning a
bailiff telephoned the marshal’s office
with a request that a deputy be as
signed to a jury. He was told no one
was available, since 18 deputies were
being held ready for a special detail.
It was an easy and natural assump
tion that the assembly of the deputy
marshals could mean but one thing—
one or more gambling raids.
The word spread quickly and news
of the ‘‘tip-off” had reached United
States Attorney Leslie C. Garnett by
noon.
Garnett hastily conferred with Maj.
Ernest W. Brown, superintendent of
police, and it was decided to go for
ward with their plans. However, by
2 p.m. it became apparent that the
information had gotten to some of
the city's gamblers, who closed their
establishments.
Four Raiding Parties Halted.
The District Attorney then at
tempted to countermand his orders
for the raids, but it was too late to
catch most of the raiding parties.
Four were halted before they reached
their destinations, but the rest of the
raids went through on schedule.
The raiders, who included 85 police
men and 18 deputy marshals, had
been assembled at Camp Simms, in
Anacostia, ostensibly for "target prac
tice.” It was not until each squad
leader was handed his Instructions in i
a sealed envelope that the men knew
their missions. Cars left the camp at
intervals so that all would arrive at
the places to be raided at about
3 p.m.
Addresses of places entered by the
raiding parties follow: 1230 Four
teenth street, 1127 Fourteenth street,
1116 Fourteenth street, 1110 Fottr
teenth street, rooms on the third floor
of the District National Bank Build
ing, 1409 I street, 2030 Hamlin street
northeast, 922 Ninth street, 503
Twelfth street, 427 y2 Tenth street, 735
Eighth street southeast, a house in
the 1300 block of Good Hope road
southeast, and an apartment at 1636
Connecticut avenue.
At the last-mentioned address the
raiders expected to find Nuckols, 34,
and his wrife, but the place was vacant.
Packed Suit Cases Found.
Two packed suit cases gave evidence
of preparations for a hasty departure.
There were five telephones in the
apartment, where police also found 20
suits of clothes and $650.
Robb later sent several men back to
the apartment, where they waited
several hours Mrs. Nuckols finally
returned and was placed under arrest.
Learning of his wife’s apprehension,
Nuckols went to police headquarters
and surrendered. Warrants had been
Issued before the raid for the arrest cf
the couple.
F. J. Schofield Held.
The only other person taken on an
arrest warrant was Schofield, 40,
who was arrested when police
broke into 2080 Hamlin street north
east. There they found six telephonos,
two telephone switch boxes and a cur
rent “booster,” leading to the belief
by the officers that the place was one
of the secondary stations in the in
tricate telephone network of the Dietz
organization.
When Dietz’s headquarters were
raided. Federal men said they had
evidence that calls from the Albee
Building were relayed by such branch
switchboxes or switchboards.
#
Tussle Marks Hearing
O
Above: Henry C. Adams, alleged gambler, snapped as he
warned news photographers not to take his picture at the gam
bling raid hearings today.
Lower: Commissioner Turnage inspects a glass door in his
office, smashed when Adams reportedly pushed a photographer
into it. _ —Star Staff Photos.
House Subcommittee Named
to Weigh Numbers Racket
Measure.
A special subcommittee of the
House District Committee was ap
pointed today by Chairman Norton to
consider the Senate approved bill de
signed to tighten the gambling laws
here and to destroy the so-called
‘‘numbers racket.”
The subcommittee was named fol
lowing receipt of a report from Leslie
C. Garnett, United States attorney
for the District, explaining the pur
pose of certain provisions in the
measure with whieh members of the
full committee found objections sev
eral weeks ago. As a result of these
objections the committee referred the
bill to Corporation Counsel Elwood H.
Steal for revision.
Representative Palmisano, Demo
crat, of Maryland was selected chair
man of the special subcommittee. The
other members are Representatives
McGehee. Democrat, of Mississippi
and Brewster, Republican, of Maine.
(*arnett Cites Present Law.
Garnett pointed out that one sec
tion of the bill criticized in the com
mittee. which would authorize police
to search a house on suspicion that
gambling was being engaged in is sub
stantially identical with a section of
the District code which has been in
force for many years. This section,
Garnett said, authorizes issuance of
a search warrant "upon complaint,
under oath before the Police Court or
a justice of the peace, setting forth
that the affiant believes and has good
cause to believe that there are con
cealed in any house or place articles
stolen * * * or any gaming table, de
vice, or apparatus kept for the pur
pose of unlawful gaming, or any lot
tery tickets or lottery policies, par
ticularly describing the house or
place to be searched, the things to be
seized, substantially alleging the of
fense in relation thereto and describ
ing the person to be seized.”
As construed by the District courts,
Garnett said, this section of the code
"emphatically does not authorize the
issuance of search warrants upon mere
suspicion or information and belief.”
Another section objected to was one
which it was believed would authorize
the arrest of innocent purchasers of
numbers slips who happen to have
them in their possession. ,
New York Precedent Cited.
Garnett explained that this section !
is modeled after a section of the New 1
York penal law. and is not without |
precedent both with respect to its form ’
I
and with respect to the severity of its
provisions. I
He also pointed out that this section
is directed at numbers runners "and ,
will be an invaluable weapon in their j
apprehension." "It must be assumed," j
he added, "that the prosecuting offi
cers and the police would use reason- i
able intelligence and discretion in ap
plying the statute to commercial i
gamblers only."
It is suggested." Garnett concluded,
"that if the possession of numbers
slips warrants arrest, then possession
of racing forms should be made a
crime It seems clear to me. however,
that there is a distinction between a
newspaper or news bulletin and the
very records and instruments of crime.
A racing form of newspaper containing :
racing information is susceptible of i
lawful use, but numbers slips used in j
carrying on the numbers racket can
be used only for the purpose of vio
lating the law'.’’
GIRL’S ASSAULTER
GETS LONG TERM
Father of Three Children Sen
tenced From Six to 30
Years for Crime.
Edward J. McGee. 23, father of
three children, who was convicted two
weeks ago of criminal assault on a
14-year-old Langley Junior High
School student, was sentenced this
afternoon by District Court Justice
James M Proctor to imprisonment
for from 6 to 30 years, the maximum
allowed by the law.
The jury', which found him guilty,
deliberated only 50 minutes after hear
ing Assistant United States Attorney
Roger Robb ask them to recommend
the death penalty. Their verdict did
not carry any recommendation.
In imposing sentence "Justice Proc
tor denounced McGee in strong terms,
saying he would like to impose an
even heavier penalty.
B. & 0. FIREMAN DIES
AFTER LONG SERVICE
Harry Baker, 51, Baltimore & Ohio
Railroad fireman, died yesterday in
Providence Hospital after a two-week
illness.
A lifelong resident of this city, Mr.
Baker had been employed by the rail
road 33 years. He is survived by his
widow, Mrs. Lue Alfy Baker: a son.
Raymond R. Baker, this city; his
mother, Mrs. Annie Baker, Los An
geles. and a sister, also living in Cali
fornia. He also leaves a grandson.
Funeral services will be held at 11
a.m. Monday in the Episcopal Church
of the Good Shepherd following brief
services at his late residence. 322
Fourteenth place northeast. Burial
will be in Congressional Cemetery.
Capt. Smith’s Slogans and Verse
Warn Drivers to Be Careful
Master the Machine Before It Masters
You ” Says Traffic Expert in
Prepared Safety Talks.
Drive with your head instead of your
feet, Capt. Milton D. Smith, traffic ex
pert of the Metropolitan Police, who
has an aptitude for incorporating
safety rules in slogans, today advised
the automobile operators of Washing
ton.
Capt. Smith prepared a series of
five talks on better driving, in which
he offers these slogans, among others:
Master the machine before i mas
ters you; the best way is the safe way;
it is easier to stop two feet than four
wheels (for the pedestrians); preven
tion of accidents is prevention of suf
fering, be careful; safe conditions are
good, but safe men are better. He
offers also a little poem:
“Be sure to use your eyes and ears,
And think a little, too.
And you will catch an accident
Before it catches you."
Obey the simple rules of the road,
Capt. Smith urges, and help cu‘ down
the accidents which last year killed
25,140 persons in the United States
and resulted in Injury for 782,260
others.
Uck of Definite Signals.
“One of the things,” he said, “that
is a constant cause of complaint, both
from motorists and from others, is the
failure of drivers to give an unmis
takable signal of their Intention to
turn, stop, etc.
“Now, would you believe it, we ar
rest people for failure to give a hand
signal and they, in many instances,
insist they did. I have observed per
sons with the left front window closed,
and even after stopping them, they
would have to roll the window down,
and then when they were told they
were being stopped for that particu
lar violation, they would still say, ‘I
gave a signal,’ when to do so, they
would have had to stick their hand
through the glass.
Never Takes a Chance.
“They tell stories about the lady
motorist who signals for a right turn
and then goes left. Well, I don’t know
but what it does not cover some of our
male drivers also. I also believe that
even that type of signal is better than
none at all, because if I am driving
behind another car and I see a signal
I don’t take anything for granted. I
slow up and wait to see which way the
operator is going to turn. I never try
to slip by and get caught in a pocket.”
The poor driver, Capt. Smith con
tended, is to be found everywhere. He
has seen the road hog, the weaver, the
light jumper on Broadway in New
York, on Broad street in Philadelphia,
on the Pulaski Skyway near Newark,
N. J.; at Niagara Nalls and on the
road to Biscayne Bay in Miami, Fla.
“I wish we could reach the point,”
he said, "where 85 or BO per cent of our
drivers were on the courteous, consid
erate and careful side.”
4
LOAN SENDSFRANC
UP ON EXCHANGE
Quoted at 4.58V8 Cents
With Announcement of
$229,000,000 Bond Issue.
BACKGROUND—
Premier Leon Blum's socialistic
government last Friday bolstered
uncertain French finances by lifting
the ban on domestic gold trading,
hoping to attract funds shipped to
foreign countries back to France.
At same time drastic curtailment,
of public expenditures was prom
ised, with the urge of support for
the new national defense fund, as
suring it would be only treasury
issue during year.
Parliamentary approval was given
$479,ISO,000 defense loan yesterday.
117 the Associated Press.
NEW YORK, March 11—The
French franc rose sharply In foreign
exchange dealings today following an
nouncement in Paris of a new na
tional defense loan of 5,000,000,000
francs (approximately *229,000,000) to
be offered at 98 francs per 100 par
value franc bond, with interest at 4(4
p>er cent.
The French unit was quoted at
4.58(4 cents, a rise of .01 3/16 of a
cent from yesterday’s final rate. The
gain was expected Inasmuch as the
relatively high yield of the loan, 4.60
per cent to maturity, was calculated
to attract some of the French capital
which has found refuge here in recent
years.
Any homeward movement of funds,
it was pointed out, naturally would
set up a demand for francs, tending
to lift the price paid for the currency
in exchange markets.
Billion Surplus in U. S.
Some bankers estimated the surplus
amount of French funds here, that is
the amount not needed for normal
purposes of trade between the two
countries, at somewhere In the neigh
borhood of $1,000,000,000. much of it
invested in long-term American se
curities and unlikely to be repatriated
suddenly.
Short-term Investments and banking
balances here merely for quick profit,
or for relative safety, it was thought,
would be the first to return to France
for investment in the new loan.
The upward movement of stocks in
the New York Stock Exchange in early
trading today indicated, brokers said,
that there had not been any heavy
overnight orders for liquidation of
Fench investments here.
While some American money might
be expected to go into the loan because
of the relatively high interest rate,
bankers expected the amount to be
negligible.
Primary success of the loan, it was
considered here, would depend upon
the amount of confidence engendered
by the drastic financial measures taken
by the Blum government last week.
Possibility of further depreciation of
the franc, failure to balance the budget
j because of heavy government expendi
| tures both for armaments and in the
social program, and the vague threat
of an arbitrary levy on capital had
sent huge sums either into domestic
hoarding or abroad for investment.
Financial Measure*.
The financial measures included:
1. A promise to “defend” the franc.
2. Establishment of a free gold mar
ket, that is. the right to sell gold to,
or buy it from the Bank of France at
approximately the world level, without
; restriction.
3. Announcement of a "national de
fense loan," to be payable in francs,
dollars or pounds sterling at the option
of the holder with the rate of exchange
guaranteed, and the promise that the
loan, a little more than 10,000,000.000
francs in all, would be the only long
term government financing for the
year.
*. Promise to reduce the Treasury’s
burden this year by 6,000,000,000
francs.
Establishment of the free gold
market was considered one of the
most important of the measures.
Under the old law, hoarders who with
drew’ gold, or shipped it aboard with
out permission of the Treasury were
subject to penalties. These have been
removed and sales to the bank of such
gold may be made without revealing
the identity of the vendor.
Much of the gold previously shipped
abroad had been “fugitive,” which the
holders feared to return because
revelation of their identity might sub
ject them to fines. Now, with no ques
tions asked, the Government hopes
much of this capital will hurry helter
skelter home.
Bar Sudden Fluctuation.
Also of importance was the promise
j to defend the franc and to stand by
the tripartite monetary agreement
signed last Fall with the United States
and Great Britain. This meant that
no sudden fluctuations In the currency
would be permitted and that a French
exporter or Importer could make com
mitments for months ahead without
I the fear that a depreciation of the
franc In terms of world currencies
would upset his balances.
To “peg" the franc means to give it
a settled, or nearly-settled, value
In terms of gold, or of other currencies.
To effect this the Bank of France an
nounces the price at which it will buy
and sell gold at the beginning of each
banking day. If gold is permitted to
move freely, the price of the currency
in terms of others remains near its
actual value in terms of gold, and is
thus relatively stable.
To keep It so, the French stabilisa
tion fund is prepared to buy francs if
foreign offerings are so great as to
cheapen their value, or sell them
should they become too high in terms
of other currencies.
This stability of the franc, the gov
ernment hoped above all, would at
tract the gold held by hoarders gam
bling or the profit they would make
should the currency fall in relation
to gold. With no profits in sight it
expected them to return it to circula
tion, or rather to the reserves of the
Bank of France.
BOND ISSUE TOMORROW.
Pint Installment of |XZ5,000,900 Will
Bear 4 M Per Cent Interest
PARIS, March 11 (A*).—The first In
stallment of the new national defense
loan, fixed at 5,000,000,000 francs
(about $225,000,000), will be Issued
tomorrow at 98 (84.41) for each 100
francs. Hie Interest rate was set at
AM per cent, and the loan will be pay
able In 60 years.
Hie Bank of International Settle
ments In Switzerland was named pay
ing agent for the French government
to overcome American and British
objections to London and New York
banks handling foreign subscriptions.
The bonds will be repayable, accord
ing to the choice of the purchasers, in
French francs, Swiss francs, pounds
or dollars.
A
Mar Cantabrico
Sunk, Insurgent
Leaders Report
Salamanca Contradicts
Earlier Assertion It
Is War Prise.
B> the Associated Tress
SALAMANCA, Spain, March 11.
—The Insurgent Spanish regime offi
cially announced today that the gov
ernment munitions freighter Mar Can
tabrico had been sunk, contrary to
previous assertions it had fallen a
prize of war to insurgent warships.
The vessel carried more than *2,
700,000 worth of munitions from New
York and Vera Cruz, Mexico.
(The Mar Cantabrico previously was
reported to have been taken to Per
rol, fortified insurgent port on the
northwest tip of Spain, after being
shelled and captured by the cruiser
Canarias, while attempting to run the
insurgent blockade.
[ (The insurgent announcement deep- I
ened the mystery surrounding the ves
sel since it slipped out of Vera Cruz
Harbor and was unreported for 17
days until it radioed a wild appeal for
aid Monday, using the call letters of a
British ship and electrifying the Brit
ish and French navies.
(It was not known whether the in- i
surgents had removed the huge cargo
of war stores and then scuttled the
freighter or whether it had sunk en
route to Ferrol in contradiction to the
report of its arrival.)
• The loss of the Mar Cantabrico’s
cargo was considered In insurgent cir
cles one of the most crushing blows de
livered to the government.
-•
READ ADMITS PARI
IN ROBDERV PLOT
Murder Suspect’s Brother
Pleads Guilty to Con
spiracy at Rockville.
B> • BUB Correspondent of The Star.
ROCKVILLE, Md„ March 11.—Mel
bum (Peewee) Read, Four Corners,
pleaded guilty to a charge of con
spiracy to rob and to kill Henry Hiser,
; owner of the State Theater in Bethes
da, when brought to trial in Circuit
j Court here today.
The charge was one of several re
, turned recently against Read by the
grand jury for various crimes within
. the last four years, ranging from
burglary to highway robbery. It was
expected the other cases will be set
aside, as the conspiracy charge carries
a maximum sentence of 20 years.
"Peewee” Read did not take the
stand, but Lawrence Gingell, Kensing
ton, who was indicted in the case, tes
tified that he, Read and Richard P.
Stockton attempted to hold up Hiser
last October on Edgemoor Lane in
Bethesda.
j Hiser was taking the night's re
ceipts to the bank, only a stone's throw
away, Gingell testified. As he stopped
for a stop sign at Old Georgetown road.
Read stopped and Gingell got out of
their car and approached Hlser’s, the j
: witness said. However, a radio scout ,
car containing two Montgomery j
County policemen, drove up at that
moment and the trio got back in their ]
car and sped away, according to the
testimony.
Judge Charles E. Woodward did not
indicate when he would pass sentence.
Gingell, who was brought here by West
Virginia State police, will be returned
, to Charleston, W. Va., to stand trial
: on robbery charges. And indictment
was returned against him, William B.
Read, older brother of Peewee. and
War Joseph Kirby, Scranton, Pa., for
1 the murder of Elwood Mathews, 67
year-old Four Corners farmer, last
November, and another murder indict
! ment is being sought by West Virginia
! authorities for the same three men for
j the slaying of Earl Dollman. Charles
I ton salesman, last Thanksgiving day.
AID FOR “40 AND OVER”
TRENTON, N. J., March 11 </P).—
A corporation designed to "change
the attitude of American employers”
toward persons over 40 was filed yes
terday with the secretary of state.
The organization, called the Ameri
can Citizens' League. Inc., said it
would seek legitimate employment for
persons over 40 years of age and aid
in activities to benefit such persons.
Your
Income Tax
Not Always Necessary for
Dependents to Live
Under Same Roof.
X.
A head of a family is defined by in
come tax regulations as "an individual
who actually supports and maintains
in the household one or more persons
who are closely connected with him by
blood relationship, relationship by
marriage or by adoption and whose
right to exercise family control and
provide for these dependent individ
uals is based upon some moral or legal
obligation.” The exemption allowed a
head of a family is $2,500. The phrase
"in one household" may be interpreted
as meaning the taxpayer's personal
residence, an apartment, rooms in a
boarding house, hotel, etc.
Under certain circumstances it is not
necessary that the taxpayer and his
dependents live under one roof during
the entire taxable year in order that
the taxpayer may be allowed the ex
emption. If the common home is
maintained and the parent is away on
business or a child is away at school
or on a visit, the exemption is allow
able. Moreover, if a parent is obliged
to maintain his dependent children
with relatives or in a boarding house,
while he lives elsewhere, the exemp
tion still applies. If, howver, with
out necessity, the dependent makes
his home elsewhere, the benefactor is
not the head of a family.
The same rule is applicable to the
term “living together” in the case of
a husband and wife. If occasionally
and temporarily the husband U away
on business or the wife on a visit, the
common home being maintained, the
$2,500 exemption still applies. The
unavoidable absence of husband or
wife at a sanatorium does not preclude
the exemption. But if the husband
continuously makes his home at one
place and the wife at another, they are
not living together within the meaning
of the revenue act.
ft a
SI
Appears Contented and En
joying Self in Touraine
Chateau Country.
By the Associated Press.
MONTS, Prance, March 11.—Mrs
Wallis Simpson received three Ameri
can reporters today to tell them she
was enjoying to the utmost her stay
in the Touraine Chateau country.
She is likely to stay at the Chateau
de Cande at least a month. She is
looking forward to some golf as soon
as the course dries out.
Mrs Simpson received the press on
i the condition that questions asked
would be agreed upon in advance and
I that she would not be quoted directly.
I The newspapermen met her in the
| library of the beautiful chateau—
reached through a twisting stone cor
ridor with small banks of hydrangeas
and pink roses in the corners.
Appears Contented.
She looked very well and very con
tented.
She was dressed simply in a tight
fitting navy blue two-piece wool dress.
There were two gold flower clips at
her neck and she wore earrings to
match. Her only other Jewelry was a
sparkling sapphire and platinum ring,
on the third finger of her right hand
Mrs. Charles Bedaux, who owms the
chateau, and Mr and Mrs. Herman L
Rogers, Mrs. Simpson's Riviera
friends, also were in the library,
which was surrounded by a gallery
stocked with rare old books.
There was an electric organ at one
end of the room and a bowl of orchids
on a small table in the center. A log
fire flickered cheerfully.
Mrs. Simpson’s accent appeared
more British than American.
Sympathy for Spain.
She asked a former war correspon
dent about conditions in 8pa!n and
expresied deep sympathy for the
people of that country.
As she spoke she sipped a glass of
sherry, but declined a cigaret.
She was particularly eager about tlm
golf, although she said with a little
laugh that her game was none too
famous.
She remarked that her bed room
was lovely; that the sun streamed in
when she awoke this morning.
Rogers wanted to clear up a misun
derstanding about Mrs. Simpson's oc
cupancy of the chateau. He said
neither he nor Mrs. Simpson had rent
ed It, but that the owner. Bedaux, had
placed it at her disposal for as long
as she desired to stay.
Just now. he added, Mrs. Simpson
has no plans to go to Paris or to buv
a trousseau for her wedding to th"
Duke of Windsor.
Mrs. Simpson, a guest in a pre-ren
aissance castle on a 1,000-acre estate
In Monts, has a circular tower-room
boudoir.
She could ramble, if *he chose,
through a thirteenth century under
ground passage, play golf on a course
where the last hole requires a 190
yard drive across 90 yards of water,
or visit a tiny chapel In a forest of
ancient oaks and pines.
Whether the Duke of Windsor,
former King of England, would join
Mrs. Simpson, the woman for whom
he gave up his throne, and Mr. and
Mrs. Rogers at her new retreat, the
j turreted Chateau De Cande, was un
known.
Property of New Yorker.
Charles E. Bedaux, New York in
dustrial engineer who, with his wife,
owns the estate on the River Indre
and invited Mrs. Simpson to it. said
one thing that prompted them to ex
tend the invitation was the fact that
“My wife and I are still in love with
love.”
In Spring, wild flowers star the
i grassy slopes of the estate. Anemones
! and violets bloom in late March and
later, wild strawberries.
Here are some of the castle’s at
j tractions:
A library with several thousand
books and a little gallery.
Sixteenth century reception rooms
with stone floors and fireplaces
beamed ceilings and oak-panelled
walls.
A big. stone-floored, leather panelled
dining room with a long table that
will seat 26.
Most of the chateau has simple
gothic furnishings and few pictures.
Occupies Hostess' “Apartments.”
Mrs. Simpson is occupying Mrs
Bedaux's "apartments.’’ a second-floor
suite of five rooms. Prom them she
can see the broad graveled upper ter
race. on which cars roll up to the en
trance, and in the distance, meadows
with cattle grazing by the river.
Guests have lunch in the “tavern,”
which formerly was a great kitchen
It still has sixteenth centurv meat
hooks in it, a stone floor, caribou
heads on the walls, and a long re
fectory table with wooden benches.
The old tunnel connects the castle
with a smaller building.
Bedaux said that "the longer Mrs.
Simpson stays, the happier we shall be."
-•
SAFE OF TIRE STORE
IS LOOTED OF $564
Combination Operated in Robbery.
Fingerprints on Door
Being Checked.
The safe of a tire company store at
1738 Fourteenth street was rifled Of
$564 in cash during the night by a
burglar or burglars who operated the
combination.
The front door to the store was
found with the main lock open, but
was bolted from the Inside, and the
back door of the store stood open, it
was reported.
A. R. Tracy, an employe of the
store, who arrived at 8 a.m. to open
the place for business, found the main
lock to the front door unlocked and
the door belted. He called Manager
H. B. Cowden. Cowden and Tracy
found the back door open. The outside
door of the safe, locked last night, was
found open and an inner door had *
been wrenched oil and lay on the floor
A number of checks were left In the
safe.
Fingerprints were found on the safe
door and are being checked. Police
were Informed that 5 of the 17 em
ployes of {he store had keys to the
front door.
Hope for Ship Abandoned.
LONDON, March 11 yP).—Hope was
abandoned today for the 462-t
steamer, Stancrest, which sailed on
her maiden voyage February 28. The
vessel and crew of nine disappeared
In the English Channel.
a *