Evening star. [volume], May 19, 1937, Page A-4, Image 4

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

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OU PONT CALL CASH
TOTAL J33JM0
Balance Before ’29 Crash
Aired by Financier Just Be
' fore Leaving Stand.
Ui the Associated Press.
NEW YORK, May 19.—A month be
fore the Wall Street panic, Pierre S.
du Pont had $33,020,000 cash in the
call money market, it was brought out
today as the Government ended its ex
amination of the Wilmington indus
trialist in the 1929 income tax case
against him and his business associate,
John J. Raskob.
■ In concluding his questioning, Ma
•on B. Leming, chief of Government
*unsel, took up Du Font's testimony
that he bought around $20,000,000 of
securities after the crash to bolster
the market.
“Did you consider the stocks you
bought at that time good stocks?”
Leming asked.
"I thought they were," Du Pont re
Jrtied, "that's why I bought them.”
Q. It was a sort of a bargain day,
Wasn't it. Mr. du Pont?
A. I don't know whether you could
ball it that or not.
Q. Well, it turned out to be, didn't it?
A. You couldn't tell at that time.
JJobody knew whether it was or not.
* mruai ran Alleged.
The Government, contending a
aeries of cross-sales between Du Pont
and Raskob after the panic was fic
tKious and was accompanied by an
iljegal repurchasing agreement, seeks
$617,316 deficiency tax from Du Pont
and Si,026.340 from Raskob.
, The sales were made on November
IS and December 26. 1929, with re
purchases on January 6 and 27 of the
following year. With these cross
sales the two established losses of more
than $7,000,000, in comparison with
pre-panic values, which they deducted
from their income taxes.
Just before Du Pont was excused
as a witness, Leming went into his
call loan accounts. He handed Du Pont
a batch of ledger and bank accounts
and asked him:
"When did you take your money
out of the call loan market?"
Du Pont examined his papers and
•aid:
"There was a balance of $700,000
at the end of September. 1930."
Q. Reduced from what?
S4.000.000 in March, 1930.
A. Well, at the end of March, 1930,
it was S4.000.000.
Q. What September was that0
A. 1930.
Q. Oh well, let's go back to Sep
tember, 1929.
A. At the end of September, 1929
tt was $33,020,000.
Q. V’hat was it a the end of Oc
tober, 1929?
A. It was $25,800,000.
James S. Y. Ivins, chief counsel for
De Pont, objected vigorously to this
line of testimony, contending the rec
ords were already in evidence and that
there was no necessity of having
Du Pont figure out the balances with
pad and pencil.
"If your honor please.” he said to
Richard L. Disney of the United States
Board of Tax Appeals, who is hearing
the case, "I want to object to this little
»ct Mr. Leming is putting on here.
He’s seeking to dramatize, with his pad
and pencil stunts, things which have
been in the record all along and which
we have been willing to stipulate from
the beginning. A lot of time could be
caved here.”
"Your honor, I don’t think I should
stand silent in the face of Mr. Ivins’
remarks. I think the questions an
swered by Mr. du Pont with respect to
the stocks he purchased and the money
he possessed justified my asking
them.”
Says Queries Justified.
Disney came to the aid of the Gov
ernment counsel and remarked:
”1 think so. too. Mr. Leming. I
think your questions have been justi
fied.”
Before Du Pont left the witness
etand—after almost two full days of
testimony, in which he defended the
legality of his cross-sales with Rask'ob,
stating he made them to establish de
ductible losses in his tax return—Dis
ney said:
"There's one question I’d like to ask
the witness.
"I haven’t gathered yet, Mr. du
Pont, as to whether there were any
other transactions—I mean transac
tions of consequence—between you
and Mr. Raskob between November 13,
the date of the first sale, and the
end of January, 1930, when the last
repurchase of stocks was made?”
"The transactions in the record in
this case, Du Pont replied, "are the
only ones.”
POLICE CO-OPERATION
VITAL, SAYS HOOVER
Chief of G-Men Addresses Conven
tion From Office by Tele
phone.
By the Associated Press.
Director J. Edgar Hoover of the
Federal Bureau of Investigation said
today the time “is rapidly approach
ing” when law enforcement agencies
cannot “with immunity” fail to co
operate.
Hoover addressed by telephone from
his office here the nineteenth semi
annual convention of the Tennessee
and Mississippi Sheriffs and Peace Of
ficers’ Association assembled in Nash
ville.
He pictured a force of 4,300,000 per
aons over the country as a common
enemy of society, who last year com
mitted a serious crime every 24 sec
onds.
“Their depredations can and must
be minimized,” Hoover said.
He pledged his organization would
lend every possible aid “to law enforce
ment officers throughout this and other
countries.”
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Suspicion That Boy, 3, Killed
Sister Removed by Autopsy
Three-year-old, Noel Galvin telling Neio York police hoiv he
dropped a metal toy on his baby sister.
—Copyright, A. P. Wirephoto.
By the Associated Press.
NEW YORK, May 19—A medical
examiner's autopsy today cleared 3
year-old Noel Galvin of suspicion that
he might have been the cause of the
death of his 3-months-old sister, Doris,
when he struck her with a toy air
plane and toy truck while they were
playing.
“The child died of a large thymus
gland, an ailment often fatal to in
fants,” reported Dr. George W. Ruger,
official medical examiner.
Earlier Assistant District Attorney
Anthony dt Giovanni had reported
that "the baby was undoubtedly killed '■
by her brother.” !
ECONOMY DRIVE
MAY CUT DEFICIT
Reduction Seen Possible as
Agencies Announce Sav
ings Effected.
By the Associated Press.
A Budget Bureau tally of results
of the administration s year-end econ
omy campaign led some authorities
today to forecast a reduction in the
estimated $2,557,000,000 Federal defi
cit.
President Roosevelt told his press I
conference yesterday departments had
co-operated in shaving expenditures
between May 1 and the end of the
fiscal year, July 1.
Daniel W. Bell, acting budget di
rector, said the exact savings could
not be made public until reports from
individual departments have been
summarized.
The reports were made in re
sponse to a letter from the Presi
dent in April demanding “an im
mediate curtailment of expenditures."
Bell said some departments had
not attempted to give estimates of
savings in dollars and cents, but
(merely had advised they were “not
! spending a single dollar that isn't
absolutely necessary.”
Fiscal authorities awaited Bell’s
summary for an indication of how
much higher the public debt will go
by July 1. It reached a new peak
of $35,096,164,000 on May 15.
They expressed confidence savings
would be effected in an estimated
$650,000,000 of expenditures this year
by civil departments and agencies,
which they predicted would bear a
major portion of aggregate economies.
In addition, they cited that bonus
bond payments have totaled only $56,
000,000 thus far this year, against Mr.
Roosevelt's latest estimate of $559,
000,000 for the entire fiscal period.
01 GIRL
Other Members of French
Family to Be Called in
Slaying Trial.
By the Associated Press.
JERSEY CITY, N. J„ May 19.—
Two high school "pals,” who some
times pondered life’s problems to
gether after classes, faced each other
in court today.
One is on trial for her life, accused
of the hatchet slaying of her mother;
the other, a prospective State's wit
ness.
Pretty, dark-haired Doris French,
the “chum” to whose solace blond
Gladys MacKnight fled one hot Sum
mer night last July when Mrs. Helen
MacKnight was killed in her kitchen,
was ready to testify in the trial of
her 17-year-old friend and Donald
Wightman, 18, known with Gladys as
Bayonne High School’s "perfect cou
ple.”
In purported "confessions” of the
slaying, made to Bayonne police and
admitted yesterday as evidence, Gladys
and Donald told how they went to
Doris’ house after the slaying, before
starting the automobile ride that ended
with their arrest In Jersey City,
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FREE PARKING CAPITAL GARAGE
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Declares Group Is Showing
Country the J/Vay to
Lessen Crime.
»
The Boys’ Club of the Metropolitan
Police Department is showing the
country tile way to lessen crime in
America by turning potential crim
inals into good citizens, Attorney Gen
eral Cummings said today.
Perturbed at the wide extent of
lawlessness in the United States,
Cummings told his press conference:
"We have to have crime prevention.
We can't go on waging a bitter war
between the underworld and law en
forcement agencies.
"What the Metropolitan Police are
doing here for boys is an excellent step
toward insuring that crime prevention.
It is the first time the so-called hard
boiled police have indicated they un
derstand the fact that crime is rooted
in the social environment of the
criminals.
"I am 100 per cent for what the
police are trying to do here. I want to
see it done everywhere.”
Twenty-five policemen will be
designated by Maj. Ernest W. Brown
today to solicit employes of the
various Government departments for
funds in connection with the $75,000
drive of the club. The money will be
used to cover 1937 expenditures of the
club.
Attorney J. Layton Cornwell of the
Justice Department is chairman of
the police unit.
Board members and the club’s
Ladies’ Auxiliary, led by Mrs. Brown,
left this morning for an inspection of
Camp Brown at Scotland, Md.
Last year the camp cared for 100
boys a week for one month. This
year it is planned to double the capac
ity and keep the camp open from
about June 15 to September 15.
-•
Watch Stolen at Ball Game.
PHILADELPHIA, May 19 04>).—Lou
Wilgarde, Mayor’s secretary, reported
for W’ork today without his gold
badge. It was stolen at a base ball
game.
Ex-U. S. Official to Battle for
Busy New York-D. C.
Transport Trade.
A battle for air transport supremacy
on the world’s busiest air route, Wash
ington to New York, Is anticipated
between a new air transport company
now being organized by Eugene L.
Vidal, former director of air com
merce, and Eastern Air Lines, it was
learned today as a result of the gath
ering of national aviation leaders at
Langley Field, Va., for the annual en
gineering conference of the National
Advisory Committee for Aeronautics.
Vidal’s group is said to be planning
hourly service between Washington,
New York and Boston.
Eastern Air is one of the Nation’s
largest air transport systems and Is
the line which swallowed up the for
mer Ludington Lines, pioneer Wash
ington-New York service which estab
lished the world’s first schedule of
flights ’’every hour on the hour."
When the Ludington system was
forced out of aviation six years ago,
it was charged that it was forced out
as a result of price-cutting competi
tion of Eastern Air, made possible by
an airmail subsidy which was denied
Ludington.
New Schedule.
The first gun in the war believed
impending between Vidal and Eastern
was fired last Saturday when Eastern
inaugurated a schedule of 20 round
trips daily between Washington and
New York, offering service "every hour
on the hour.” Such service has not
been offered since Ludington was
taken over six years ago by Eastern.
Interviewed at Langley Field, Vidal,
who is a member of the National Ad
visory Committee for Aeronautics, to
which he was appointed by President
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Roosevelt during his term of office as
director of air commerce, confirmed
the fact he is planning to return to
the field of air transportation, in which
he became prominent before taking
over Federal leadership of civil avia
tion.
He expects to assocate with him In
his new undertaking Paul Collins and
Samuel J. Solomon, president and vice
president of Boston <b Maine Airways,
which Is expected to form the nucleus
for the new group. Collins and Vidal
were fellow vice presidents of the
Ludlngton Lines. Solomon also is
general manager of Washington Air
port and was a business associate of
Vidal before the latter’s appointment
to the Commerce Department post.
Has New Type Plane.
"We have a new type of airplane on
order,” Vidal said. “I am not prepared
to say much about this ship yet, except
that we expect it to be one of the most
efficient transport types yet produced.
It is possible deliveries may begin by
July 1.”
The hourly service planned by Vidal
between Washington, New York and
Boston, would connect with the Boston
Si Maine system. Vidal declined to
comment on the possible effect on his
plans of Eastern Air Lines’ inaugura
tion of hourly service to New York,
said that there will be no delay in
plans for organization of the company.
He also declined to discuss the routes
over which he expects to operate, but
did say that his company expects to
seek airmail contracts.
Friends of Vidal are outspoken in
their belief that the inauguration of
hourly schedules by Eastern Air is a
direct blow at Vidal and is intended to
forestall his entrance as a competitor
for the heavy Washington-New York
air traffic.
Driving License No Good.
RICHMOND, Va. UP).—State offi
cials revoked for a year the driving
license of B. O. Arehart because of a
drunken driving conviction. When
they came to notify Arehart they
found him In the State penitentiary
for two years.
WOMAN HELD SUICIDE
Certificate Issued in Death of
Miss Katherine O’Donnell.
A certificate of suicide was Issued
today by Coroner A. Magruder Mac
Donald in the death of Miss Katherine
O'Donnell, 35, of West Hazelton, Pa.,
who died yesterday in Garfield Hos
pital. She was found unconscious Sat
uray night in the corridor of an apart
ment house at 3150 Sixteenth street.
The coroner found she died "from
an overdose of sleeping powder, taken
because of melancholia.” Miss O'Don
nell was visiting friends in the city at»
the time of her death.
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Loveless Hwd. Co., 23 Fla. Ave. N.W.
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