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Evening star. [volume] (Washington, D.C.) 1854-1972, February 02, 1938, Image 1

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\(tl. 8. Weather Bureau Forecast.)
Fain and not so cold tonight, with mini*
mum temperature about 34 degrees; to*
morrow partly cloudy and warmer; gentle
winds. Temperatures today—Highest,
41, at 3 p.m.; lowest, 25, at 6:30 p.m.
Full report on page A-2.
Closing New York Markets, Page 14
The only evening paper
in Washington with the
Associated Press News,
and Wirephoto Services.
86th YEAR. No. 34,245.
OP) Mean. Aa.oeiatad Pra'a.. THREE CENTS.
Roper Called to Quiet Dele
gates as Storm of Ora
tory Breaks.
Meeting Finally Breaks Up Into
Smaller Divisions After Hear
ing Roosevelt Message.
Since appearance of current busi
ness decline last fall, frequent
mention has been made oj de
sirability for co-operation between
Government, industry and labor.
To achieve this, several conferences
have been held between President
and representatives of labor and big
business. When point teas raised
that interests of big and little busi
ness are separate, delegation of
spokesmen for small entc~prises
were invited here.
By J. A. FOX.
An opening session so. uproarious
that Secretary of Commerce Roper was
pressed into service to get order,
launched the ‘small business confer
ence'' here today.
With a large group of the 800 dele
gates who filled the Commerce Depart
ment Auditorium striving simultane
ously to get their views before the
gathering. Fred Roth, president of 'he
Whitney-Roth Shoe Co. of Cleveland,
who had been named as temporary
chairman, gave it up as a bad job and
Secretary Roper stepped into the
Shouting to be heard over the tu
mult, Secretary Roper called attention
to the fact a 10-point program had
been devised for group discussion pre
liminary to a conference with Presi
dent Roosevelt tomorrow and urged
that the men and women get to work
on this. He drew majority support
and then, when he asked if the dele
gates desired another hour of discus
sion, a roaring “no" indicated the way
would be cleared for the group meet
ines to begin.
Some delegates insisted on being
heard, hpwever, despite shouted oppo
sition. delaying actual consideration
of the program.
The meeting got under way quietly
With talks by Secretary Roper and
Jesse H. Jones, chairman of the Re
construction Finance Corp., botn of :
whom pledged the assistance of the j
Government and laid stress on the
fact that this meeting is designed to
let small business men work out their
problems without outside interference.
The Storm Breaks.
Then with the question of organi
sation coming up, the storm broke.
Mr. Roth had been named as tempo
rary chairman by Assistant Secretary
of Commerce Ernest G. Draper, who
was instrumental in getting the con
ference together, and as Mr Roth
concluded his opening remarks, a
delegate lrom the floor suggested that i
the permanent organization of the
confeience be elTected. From the
gallery then another delegate, obtain
ing attention, proposed that Mr. Roth
be made permanent chairman.
There were several immediate shouts
of dissent.
•'I think it occurs to some of us that
our temporary chairman has been
hand-picked and might not be satis
factory," came a shout from one dele
From another quarter of the hall
another delegate demanded that Mr.
Roth explain just how “small” his
business was. give further details.
"I have spent my whole life in my
own business," Mr. Roth began.
"How many men do you employ?”
came another shout.
"I employ 15 people,” Mr. Roth said
With a smile.
Assistant Secretary Draper, presid
ing. then called for a standing vote
and declared Mr. Roth had been desig
nated as permanent chairman.
There were shouts of disapproval,
but the Cleveland shoe man took
charge while many of the delegates
wrere on their feet shouting for recog
Almost Forgotten Men.”
A man who said he was William
Siple of Philadelphia, representing the
National Council of Independent
Business Associates, then was recog
nized and launched into a speech. He
described the conferees as “the al
most forgotten men” and added "the
little business man gets little when
supping at* the Government table.
He usually gets only the neck.”
It had been agreed earlier that a
flve-minute limit would be put on
speeches and as Mr. Siple continued,
audible objection to his continued
presence on the platform began to be
"Give that speech to the news
papers,” one delegate shouted.
“I think that organization was born
Just a week ago,” said another dele
gate, referring to Mr. Siple’s group.
There was a momentary lull and
then another delegate shouted, "This
Is God's country: we have not started
this session with prayer. That is the
trouble with this country today. Satan
has ruined it.”
There was no prayer as other dele
gates began raising their voices and
then Secretary Roper stepped in.
It was at least 15 minutes, however,
between the time that the delegates
announced they were through discus
sion and ready to go into group meet
ings until the main meeting dissolved.
In that period several attempted to
gain the speaker’s platform, but were
shooed away by guards.
The groups into which the confer
ence eventually resolved itself are
taking up these subjects: Loans to
small companies, unemployment, fair
trade practices and price legislation,
social security, government research
for small businesses, wages and hours,
housing, installment selling, develop
ment and location of small industries
and finally miscellaneous subjects.
Mr Roper explained that these sub
(See BUSINESS, Page A-3.)
Blomberg Quits as War Chief,
Refusing to Give Up Bride, 28
- * __
Prefers to Surrender Job
Than Quit Daughter
of Carpenter.
By the Associated Press.
BERLIN. Feb. 2.—Marshal Werner
von Blomberg, minister of war, handed
his resignation to Reichsfuehrer Hitler
before going to Capri on his honey
moon. a highly reliable informant dis
closed today.
There had been indications the offi
cers' corps of the army was not pleased
by marriage of the 59-year-old marshal
to Erika Grohn on January 12, and
this was followed by the reports he
would relinquish his post.
Hitler and Von Blomberg conferred
at the war ministry on January 21. Der
Fuehrer was seen to enter with great
excitement, and later emerged appear
ing pale and grave. Soon thereafter
the war marshal left for Italy.
An official announcement will not
be made before the end of the week,
and may be delayed longer. It will
be coupled, an authoritative inform
ant indicated, with publication of a
scheme for conduct of military affairs
in the future.
Von Blomberg retains the title of
field marshal, there being no retire
ment for that rank. Field marshals
remain active "for life.
Marshal von Blomberg and his bride
have been honeymooning in strict
! seclusion on the Isle of Capri, near
Naples, for the past five days. They
passed through Rome on their way to
the island without seeing Italian
Col. Gen. Werner von Fritsch, com
I mander in chief of the Reichs.vehr,
| who was said to have acted as spokes
(See BLOMBERG, Page A^T)
Chief of Operations Tells
House Body Navy “Has
No Plans.”
One by one, major nations of
world have increased expenditures
during recent years in adding to
armaments. Among last to par
ticipate have been Britain and
United States, but former is now
devoting herself to program involv
ing record expenditure, and Amer
ica is apparently on verge of fol
lowing suit.
Meanwhile, ufcr* rage in Spam
and China.
n> inr Associated Press.
Admiral William D. Leahy, chief of
naval operation.', told Congress today
the Navy “has no plans" for combining
with any other nations "in a possible
The Navy's top-ranking officer made
this statement to the House Naval
Committee during the third day of
hearings on a proposed $800,000,000
naval expansion program.
His flat denial of the existence of
any such alliance came after Chairman
Vinson called attention to demands
made in the Senate yesterday for clari
fication of the administration's for
eign policy.
Senator Borah, Republican, of Idaho
was one of those who told his col
leagues the impression had been given
there was a "tacit alliance" between
the United States and Great Britain to
build up their navies.
"This ibuilding) program is justi
fied by a need to provide naval
strength in the same proportion that
was provided in the Washington and
London naval treaties—the 5-5-3
ratio,” Admiral Leahy said.
No Plans for Alliance.
In response to a direct question by
Representative Maas, Republican, of
Minnesota Admiral Leahy said:
“The Navy Department has no plans
for combining with any nation in a
possible war."
Questioned by Representative Vin
son concerning statements that the
proposed increase represented a radical
change in American policy of seeking
reduction in international naval arma
ments, Admiral Leahy replied that
“exactly the opposite is true.”
President Roosevelt told his press
conference yesterday that his foreign
policy was very clear to most people.
He made the statement after Sen
ator Borah and Senator Johnson,
Republican, of California had raised
their questions in Senate debate.
In response to another question at
his press conference, the President said
his current recommendations for in
creased appropriations for the Army
constituted all he now had in mind for
that branch of national defense.
Pittman Takes Issue.
Chairman Pittman of the Senate
Foreign Relations Committee was
quick to take issue with Senators
Johnson and Borah in the Senate yes
America, Senator Pittman said, was
avoiding “allegiance either for offense
or defense.” Naval expansion was
made necessary, he contended, "by the
very fact that our policy calls for no
military alliances.”
The administration, he said, has
never swerved from the “noninter
ference, nonintervention” policy enun
ciated by President Roosevelt when he
took office.
Admission Made by Foreign
Minister in Answer to
By the Associated Press.
TOKIO, Feb. 2. — Foreign Minister
Koki Hirota told the Japanese Diet
(parliament) today:
‘‘There is no Chinese central gov
ernment recognized by Japan. A state
of war exists between the two coun
Thus far in the seven months of
Chinese-Japanese hostilities, Japan
has not declared war on China.
The fore;gn office spokesman refused
to comment on Hirota's statement, say
ing it spoke for itself.
Hirota’s statement was in answer
to a question by Takejiro Nishioka,
who declared that foreign powers, with
Great Britain and Russia in the lead,
had beeir supplying. China with arms
and military funds for which some
sort of compensation or security must
have been offered.
He had asked the foreign minister
his views on "rights and interests” ob
tained before the outbreak of hostil
ities "by powers which enter into con
tracts with the National government
of China which they recognize, but
which Japan does not recognize.”
Admiral Mitsumasa Yonoi, naval
minister, also was questioned by Par
liament members. On naval policy he
“Japanese naval policy is inde
pendent, designed to meet Japan's
own needs Even if other naval pow
ers build ’million-ton warships' it does
not necessarily follow that Japan
must do the same.”
Previously, he said, there was no
feeling of insecurity in Japan. But
if other naval powers carry out huge
expansion schemes, he added, Japan
must reconsider its own plans.
Wedge Seen for Act Use.
By the Associated Press.
Some congressional neutrality advo
cates said they saw today an opening
wedge toward possible invocation of
the Neutrality Act in the statement
of Japan’s foreign minister that a
“state of war exists” between China
and Japan.
Senator Nye, Republican, of North
Dakota said that it appeared to him
that the statement of Koki Hirota
“ought to occasion immediate invoca
tion” of the act.
“It seems to me,” Senator Nye said,
“that there now is no past left to hide
(See TOKIO, Page A-4J
Sheriff Says Missing Boy May
Have Been Carried Away.
URIAH, Calif., Feb. 2 (^.—Possi
bility that 4-year-old Teddy Thomp
son might have been murdered was
hinted today by sheriff's deputies
searching for the child, missing since
Deputy Sheriff B. C. Broaddus, re
vealing officers were working on the
theory the boy “might have been car
ried away,” declared, “We know whom
we want to question, all right.”
Broaddus said weather conditions
were “pretty bad” in the vicinity of
the Thompson homestead, 45 miles
north of here in an isolated, mountain
ous section of Mendocino county.
Big Case of Jitters Engulfs
Little Business at Session
xr a cross section of the first session
today of the conference of representa
tives of little business is truly repre
sentative of little business, Heaven
help it. It has the.Jitters.
Willingly and gratefully, 800 persons
who draw their livelihoods from the
laundries, brickyards, small stores and
factories of the country, trouped into
the auditorium of the Commerce De
partment today to try to settle for the
President what their big business
brothers have thus far failed to ac
complish. If outward signs were an
indication, the purpose remained un
accomplished at 12:30 o'clock today.
Barely had the first speaker told his
audience, “Gentlemen, I have some
thing to say that is of interest to you,”
when at least 15 little business men
jumped to their feet in the audience
with exceptions to the speaker's re
marks. From then on It was touch
and go.
The speaker retired shortly in con
fusion, when it was suggested that the
temporary chairman be made holder of
the office throughout the conference.
“No! He was hand picked,” one Rel
egate shouted.
Violent discussion arose on the floor
and the speaker finally consented to
give a resume of his history in business
as proof of his qualification for office.
In the end. the temporary chairman
was elected permanently. Then an
other man spoke—too long, some
thought. There was a chorus of "Shut
him up, he’s talking too long,” and he,
too, retired.
A third speaker quoted statistics
from an organization which a member
of the audience yelled he doubted was
in existence. The brief argument be
tween the speaker and the doubter was
interrupted, however, by a delegate who
Failure of U. S. to Provide
Sufficient Money for
Capital Is Hit.
Is Giving Close Personal Atten
tion to Problem Here Before Se
lecting Successor to Garnett.
Attorney General Cummings told re
porters at his press conference today
he believes ope of the contributing fac
tors in the “disgraceful” crime situa
tion here is failure of the Government
to provide sufficient funds for the Cap
ital City.
Reiterating and amplifying recent
statements he made before the Wash
ington Criminal Justice Association.
Mr. Cummings expressed his “disgust"
with the way the District has been
grossly neglected with respect to law
enforcement needs.
He said he could not blame anybody
particularly for the fact the Nation's
Capital stands so low in the list of law
abiding cities. He believes the “key
people” in charge of the various
phases of law enforcement are doing
the best they can with the inadequate
money given them.
Qui77.ed on New Attorney.
The Attorney General made his
vigorous comments in response to an
inquiry as to when he would send to
the White House a recommendation
for appointment of a successor to Les- 1
lie C. Garnett as United States at
torney here. He said he considered the
local district attorneyship as a highly
important one and for that reason was
giving close personal attention to
Washington's crime problem. He in
dicated he would continue to watch
Washington's law enforcement prob
lem for some time before deciding on
a recommendation for the district at
torney post.
Mr. Cummings is known to be
pleased with the efforts being made
by Acting District Attorney David A.
Pine to facilitate prosecution of major
criminals. Mr. Pine was appointed by
District Court to serve until the Pres
ident nominates a permanent United
States attorney.
Distressed Over Events.
Mr. Cummings told reporters of his
deep distress over the bad reputa
tion which Washington has gained
as a crime center.
He said he deplored the fact the
Capital of the greatest country of the
world, with its renown for aesthetic
development, should stand so low in
law enforcement.
He expressed the opinion that
Washington should be a model city
in all respects and that the Govern
ment of the United States can make
it so. It was at this point that he
commented that the city is starving
for funds.
The Department of Justice can do
little, he said, to improve the situa
tion as. except for functions of the
district attorney's office, the depart
ment has no jurisdiction in local law
enforcement work.
-. ■ ■ — >
Parliament Is Dissolved Shortly
Before Reconvening After
Month Suspension.
Ba the Associated Press.
CAIRO, Egypt, Feb. 2—Farouk,
Egypt's newly married boy King, today
returned from his honeymoon and
dissolved the Parliament which had
voted non-confidence in his hand
picked month-old cabinet. New elec
tions were ordered within two months.
The parliamentary opposition. Depu
ties of the majority Wafd, or Nation
alist party, countered by marching in
a body to the Parliament building,
forcing a way through cordons of
police and occupying the lobbies.
At their head marched Mustapha
Nahas Pasha, the Wafd leader whom
Farouk dismissed as premier in De
cember. All were armed with sand
wiches. apparently prepared for a long
stay. Later the police, who had been
posted around the building with orders
to prevent all entry, locked them in.
The King's dissolution order was
Issued a few hours before Parliament
was to have reconvened after a month’s
adjournment. The new Parliament
was called to meet April 12.
British Ruler Will Christen Ves
sel September 27, Cunard-White
Star Officials Say.
LONDON, Feb. 2 OP).—Great
Britain’s new liner, sister ship of the
Queen Mary, will be named the Queen
Elizabeth, officials of the Cunard
White Star Line announced today.
Queen Elizabeth herself will christen
the ship September 27, they said,
traveling with King George VI to the
Clydeside Yards in Scotland, where it
is being built.
The liner has been known until now
merely as "No. 552.”
Rathlin Islanders, Cut Off, in
Peril of Starving.
LONDON, Feb. 2 OP).—Emergency
food supplies for Rathlin Islanders in
danger of starvation were dispatched
today by airplane and trawler.
Food supplies on the channel is
land, between Northern Ireland and
Scotland, ran short when continual
storms for three weeks cut It off from
the mainland.
Tests Reveal Pellet Was
Fired From Weapon Now
in Hands of Police.
Russell Hardy, shot in Alexandria
Saturday night by a well-dressed but
unidentified white man. is a prom
inent figure in the anti-trust divi
sion of the Department of Justice,
having worked under Robert H.
Jackson in the prosecution of sev
eral important cases. Included was
prosecution of several automobile
finance firms that led recently to
complaint by Attorney General
against Federal Judge Ferdinand A.
The first definite progress in solving
the mysterious shooting of Russell
Hardy. 44, special assistant to the At
torney General, was made today when
a ballistics test revealed that the .38
caliber bullet taken from his right
thigh was fired from a revolver in the
possession of Alexandria police.
Virginia authorities now will con
centrate their efforts on tracing the
revolver, an old-style weapon, to its
owner. Police got the gun from a
colored motorist who wrenched it from
the hand of a well-dressed white man
who attempted to commandeei his
automobile a few minutes after the
Fought in Front of Hotel.
Mr. Hardy was shot shortly before
6 p.m. Saturday after a fight with an
unidentified man in front of the
George Mason Hotel in Alexandria.
The bullet was removed after he had
been brought from Alexandria Hos
pital to Sibley Hospital. At first he
refused to turn the slug over to Alex
andria authorities, despite the fact
they had obtained a court order calling
for its production. Mr. Hardy changed
his mind yesterday, however, and sub
mitted the bullet for examination.
The ballistics test was made by Lt.
John Fowler of the Washington police,
who made his report to Lt. Edgar Sims
of the Alexandria police.
Jumped Into Car With Gun.
The unidentified man with the gun,
according to the motorist, Cain Jack
son, jumped into his car as he was
waiting for a traffic light to change a
block away from the hotel.
"Drive me out to the country,” Jack
son quoted the man as saying. “I’ve
just killed two people and I'll kill
another if I have to.”
Jackson said the man fled on foot
(See HARDyTPage A7X)
Brand on Cars
Used to Punish
Drunk Drivers
i P> ihe Associated Press.
SANTA ANA, Calif.. Feb. 2.—Four
Inch red stripes on automobiles mean
something in Orange County.
They are Superior Judge James L.
Allen's idea for punishing reckless
Judge Allen started the plan last
Since then he has pronounced the
sentence as a probation requirement
in many cases of drunken, reckless or
hit-and-run driving.
Probationers are forbidden to park
within 300 feet of any place where
liquor is sold.
Judge Allen today expressed grati
; fication over the success of his plan
and added:
“If they are ashamed to drive their
conspicuous machines they can stay
Change in House Program
Forced Delay in Final
Action Today.
A last-minute change in the House
program today forced a delay in final
action on the 1939 District appropria
tion bill until tomorrow.
Instead of disposing of the measure
i and sending it to the Senate—action
that probably would have required two
roll calls of the entire membership,
taking about an hour and 20 minutes—
House leaders decided to give the right
of way to public lands bills on the
The plans now are to call up the
District bill for final action as soon
as the House convenes at noon to
Efforts to pass the bill late yester
day were thwarted by Representative
Dirksen, Republican, of Illinois, who,
in a final attempt to add $1,000,000 to
the relief appropriations, jockeyed the
House into a position where a roll call
of the entire membership was inevit
able by demanding recommittment of
the measure to the Appropriations
Rather than delay adjournment for
at least 40 minutes by a roll call,
(See D. C. BILL~Page^A-Xl
Summary of Today's Star
Page. Page.
Amusements B-8-9 Radio ..B-9
Comics _-B-14-15 Serial Story ..B-9
Editorials_A-8 Society _B-3
Finance _A-13 Sports .. A-16-17
Lost & Found B-9 Woman's Pg. A-12
Blomberg quits as war chief as army
opposes marriage. Page A-l
Hirota admits to Diet state of war
exists. Page A-l
Chinese hurling huge forces into
Suchow. Page A-4
Eden sees envoys on plans to guard
ships from subs. I Page A-4
Soviets plan air dash to aid ice-floe
- riders. Page A-4
Admiral Leahy denies existence of any
naval alliance. Page A-l
“Little men” open session in uproar
over procedure. Page A-l
Dixie Davis seized as "heir” to Dutch
Schultz. Page A-2
Mine workers reject ban on officers’
double salaries. Page A-2
Graceful way to sidetrack anti-lynch
ing bill sought. Page A-2
New row between A. F. L.-C. I. O. seen
over labor act changes. Page A-5
Cummings blames D. C. crime situation
on lack of funds. Page A-l
House due to pass D. C. appropriation
bill this afternoon. Page A-l
Bullet in Hardy shooting linked with
gun held by police. Page A-l
Chinese laundry man found murdered
in home. Page A-l
'Virginia Finance Committee votes on
billboard measure today. Page A-4
Commissioners announce new parking
restrictions. Page B-l
| American Security company cleared Of
bar association charge. Page B-l
Painted face ’ bandit suspects indicted
on three charges. Page B-l
Squad large. Griff predicts big season
for Nats. Page a-16
Detroit fighter may meet Baer.
Page A-16
Wanamaker mile draws fine field.
, Page A-16
Dther countries eager to stage Olym
pics. Page A-17.
Touchdown fete is on at Willard.
Page A-17
Murphy high in bowling orgy.
Page A-17
President to attend horse show to
night. Page A-17
Editorials. Page A-8
This and That. Page A-8
Answers to Questions. Page A-8
Washington Observations. Page A-8
David Lawrence. Page A-9
The Capital Parade. Page A-9
Dorothy Thompson. Page A-9
Constantine Brown. Page A-9
Lemuel Parton. Page A-9
Freight rates increase opposed before
I. C. C. Page A-ll
Bonds irregular (table). Page A-13
Stocks edge higher (table). Page A-14
Bank deposits rise in this district.
Page A-14
Curb quiet (table). PageA-15
City News in Brief. Page A-6
Shipping News. Page A-6
Nature’s Children. Page A-6
Vital Statistics. Page A-7
Bedtime Story. Page B-5
Dorothy Dix. PageA-12
Cross-word Puszle. Page B-14
Letter-Out. Page B-14
Winning Contract. Page B-1B
- |
Woman Discovers Tied and
Garrotted Body of
Laundry Man.
Garrotted and slashed about the
throat, the body of Henry Derr Soo.
55-year-old Chinese laundryman. was
found this morning, tied about the
ankles and sprawled in bed in the
ransacked living quarters above his
laundry at 1405 H street N.E.
Detectives announced a short time
later that they had a “good lead” to
the identity of the murderer or mur- ;
derers, but refused to reveal what new
information they had uncovered.
Mary Tesvie. 37. colored. 200 block
of F street N.E.. a laundress employed
by Soo. and her husband. William, 33.
were booked for investigation at the
ninth precinct.
Meanwhile, six Chinese associates of
the dead man, including his son. King
Soo, were being interrogated by homi
cide squad detectives at the precinct,
particularly as to their knowledge of a
business visitor who dined with the
laundryman last night.
lookout Is Broadcast.
From headquarters police broadcast j
a lookout for a middle-aged Chinese
with graying hair, a large head and 1
an upper gold tooth. The man' was 1
described as 5 feet 8 inches tall and i
when last seen was wearing a blue
suit, dark overcoat and dark shoes.'
The laundress, who discovered the
body about 7 o'clock this morning, said
a middle-aged Chinese called at the
laundry and asked if Mr. Soo lived
The woman replied in the affirm
ative and the man then asked what
hours she worked, she said. She told
the visitor she would leave about 9
p.m.. it was said. Later the caller
talked to Mr. Soo. she said, and she
gathered from their conversation that
the visitor was a former business
partner of her employer’s in Boston.
Mr. Soo came here from the Massa
chusetts city several years ago.
The maid said the visitor remained
for dinner in the three-room apart
ment in which Soo lived alone.
The five Chinese friends of Mr. Soo
and his son voluntarily went to the
precinct to tell what they knew of the
laundryman's associates and business
connections. It was learned Mr. Soo
had been a member of the On Leong
Chinee Merchants Association, but
was suspended three or four years
ago because of delinquency in dues.
As far as could be learned, he had not
re-established his connection with the
uue 1’icKea i p.
After about an hour's questioning
of the friends and the Tesvies, De
tective Sergt. John W. Wise told re
porters he had a "good clue” to the
identity of the slayer or slayers. There
were indications more than one person
might have participated in the crime.
The body was removed to the
Morgue, where an autopsy was in pro
gress this afternoon. Coroner A.
Magntder MacDonald wished to verify
his preliminary opinion that Mr. Soo
died of strangulation. None of the
(See MURDER. Page A-3.)
Embezzlement Warrant Issued for
James King in Montgom
ery County.
BT a St»n Correspondent of The Star.
ROCKVILLE, Md., Feb. 2.—James
King, former assistant to the clerk
of the Police Court, was charged with
embezzling $817.15 of county funds
in a warrant sworn out today by
County Detective Theodore Vollten.
The alleged peculations occurred be
tween February, 1935, and October,
1937, when King was dismissed by
the Board of County Commissioners
after an accounting revealed an ap
parent shortage in the dog tax re
The State’s attorney, James H. Pugh,
said that the apparent shortage was
discovered by an auditor who became
suspicious at an abnormal number of
male dogs licenses as compared with
females, the charge for the former
being $1 and the latter $2. He stated
that the apparent shortage may
amount to more than the sum charged
in the warrant.
Montgomery County police said that
they would probably notify King to
appear at police headquarters this
afternoon to make bond.
Directors Petition Court to
Approve Sale of Assets
to Perpetual.
Schedule Indicates Concern Is Sol*
vent, but 1,800 May Suffer
Partial Loss.
The Montgomery Building & loan
Association, 916 Fifteenth street,
which has a stock liability of more
than $521,000, today petitioned Dis
trict Court for “dissolution” and for
approval of the sale of its assets to
the Perpetual Building Association.
Justice Jennings Bailey immediately
appointed Joseph R. Little, a member
of the Board of Directors of the
Montgomery association, temporary
receiver. He scheduled a hearing for
March 7.
George E. Koplin, jr„ assistant sec
retary of the Montgomery association,
was arrested January 12, on a war
rant issued by the United States
commissioner charging him with em
bezzling $7,708.75 of the association's
funds on March 9. 1935. Unable to
post bail, he was committed to Jail.
Peculations Covered.
Officials said today that Koplin's
peculations were completely covered
by surety bonds, and had nothing to do
with today's petition for dissolution.
Although a schedule of Montgomery
assets and liabilities filed with the
court indicated the concern is “sol
vent,” it stated that it should have
more ample operating capital in order
to safeguard its investors.
Assets were stated to be $567,355.07
and liabilities were listed at $563,063.44.
There are some 3,000 stockholders.
According to the petition, which was
filed pursuant to a resolution of the
Board of Directors yesterday, five suits
by holders of “foundation surplus cer
tificates" of the Montgomery have
been filed against the association for
repayment of investments made. One
of these suits has been successful and
more such actions are possible in the
future, the petition stated.
i onsiaeraoie w unarawals.
Due to these suits and bdfeuse there
has been insufficient business recently
tcrput the association on a safe foot
ing. it is in the interest of the mem
bers that the dissolution be allowed,
the petition stated.
The association also told the court
there have been considerable with
drawals recently, and it has not been
possible to obtain sufficient new capi
tal to meet the association's needs.
The petition for dissolution was filed
by the following directors: Mr. Little,
Charles J. Demas, Howard W. Sharpe,
Charles Brett and R. U. Bashor.
The court was told Perpetual has
offered to purchase Montgomery's deed
of trust and mortgage notes and bonds
at par value, as well as three pieces of
real estate.
Loan Sale Arranged.
The petition said arrangement was
made through the District of Columbia
Building and Loan League to sell for
cash the real estate loans of the Mont
gomery association for the full amount
of the balance due on the loans and
real estate that the association has
taken in at foreclosure at its book
value, thereby making available to the
shareholders of the Montgomery as
sociation an amount of money equal to
the share liability to shareholders of
classes A, B and C only.
It is understood that so-called "sur
plus certificate holders" would come
under a separate grouping, and would
not benefit to the full amount of
their holdings. There are about 1,800
of these.
It was further stated in the petition
that the proposed move would acceler
ate the dissolution proceedings and
make it possible to make distribution
to the shareholders in a much shorter
time than in the ordinary course of a
liquidation proceeding.
Not Member of League.
The Montgomery Building and Loan
Association has never been a member
of the District of Columbia Building
and Loan League or the United States
Building and Loan League.
Justice Bailey fixed the bond of the
receiver, Mr. Little, at $575,000.
Douglas, Obear, Morgan and Camp
bell are attorneys for the petitioning
The association was chartered under
laws of the District. March 23, 1932.
The Montgomery association pre
viously had operated from offices in
Bethesda, Montgomery County, Md„
but had moved its headquarters to the
Fifteenth street address.
Doors of the association here had
been open up to the time Justice '
Bailey signed his order this morning.
Motorist Uses
Uas Tank for
Savings Bank
Has Mechanics Re
move Receptacle Re
covering $503.75,
By the Associated Press.
GAINESVILLE, Ga., Feb. 3.—Most
motorists put plenty of money Into
their gasoline tanks, but Pete Sherlock,
Jr., of Atlanta, takes it out as well.
Sherlock recently turned in his 1936
model automobile on a new ear, but
before driving away he had mechanics
pull the tank from the old one.
They inverted it over a bucket and
out poured $503.75 in silver- dollars,
halves and quarters. Sherlock said he
had been saving the silver—which
weighed about 30 pounds—over a
period of 14 months.
“A gas tank makes a great bank,"
he said. “It’s easy to tut the money la
but plenty hard to get it out.**

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