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Evening star. [volume] (Washington, D.C.) 1854-1972, March 07, 1938, Image 1

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(V. 8. Weather Bureau Forecast.)
Fair tonight and tomorrow; warmer to
morrow; lowest temperature tonight about
32 degrees; gentle westerly winds. Tem
peratures today—Highest, 49, at 3 p.m.;
lowest, 35, at 1 a.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.
M Meant Associated Prett.
86th YEAR. No. 34,278.
£r&S‘S^Sin.,nSUe£. THREE CENTS.
Measure Carries Fund of
$48,166,000 for Coming
Fiscal Year.
Parking Meter Amendment Not
Mandatory, Senator Thomas
Tells Senate.
The District appropriation bill
has been creeping through Congress
since January. The chief changes
made by the Senate in the bill, as
passed by the House, eliminated
appropriations for underpass at
Thomas and Dupont Circles and
added appropriations for bridges
over Anacostia Creek and. Rock
The Senate today passed the S48,
166,000 District appropriation bill for
the coming fiscal year, after voting
In favor of a tryout of automobile
parking meters.
Resuming consideration of the meas
ure at noon, the Senate quickly sus
tained Senator Thomas, Democrat, of
Oklahoma in his motion to suspend
the rules to make the parking meter
amendment in order. Vice President
Gamer then declared the amendment
adopted on a viva voce vote.
There was a lusty chorus of noes
as well as ayes on passage, but the
move to suspend the bill had carried
a moment before on a two-thirds
standing vote. No one demanded a
division of the vote on passage.
capper Flan Rejected.
The Senate rejected the amendment
of Senator Capper. Republican, of
Kansas, to add $73,000 to the Gallinger
Hospital appropriation in order to
shorten the schedule of attendants
who. it was stated, work 12 hours a
day and 78 hours a week.
Senator King. Democrat, of Utah
was successful, however, in getting into
the Police Court appropriation a pro
viso prohibiting payment of any salary
in excess of $3,000 a year to the clerical
staff of the court.
Senator Thomas told tha Senate the
parking-meter amendment is not
mandatory, and carries no appropria
tion. It merely authorizes the Com
missioners to install the meters and
to pay for them out of the fees placed
In the machines by motorists. The
Commissioners would fix the amount
of the fee and whether it would cover
30 minutes, an hour or some other
period of time.
Burke Is Opposed.
Senator Burke, Democrati, of Ne
braska, whose point of order last Fri
day forced Senator Thomas to move
suspenion of the rules, opposed the
amendment on two grounds.
"First,” he said, "I am against it
In principle, because I do not believe
It is right to rent space on the public
streets. All persons who have occa
sion to use the streets should do so on
the same terms.
"Second, It is not the right way to
handle the traffic situation. I know
that in some cities the meters have
met with some approval, but I think
the Commissioners ought to devote
themselves to a serious duty of park
ing and traffic problems.”
He indicated he thought adoption
of the meter plan would discourage
and postpone such serious study.
Senator Thomas called Washing
ton's traffic problem "the most acute
of anywhere in the United States. ’
Persons seeking to transact business
at banks, stores and public buildings
have great difficulty in finding a place
to park, he said. The meter proposal
is merely a plan to regulate parking,
he added.
Attempt Is Third.
This is the third year an effort has
been made fb authorize a parking
meter experiment here. Two years
ago it went out in conference. Last
year Senator Burke's point of order
stopped it, but this year Senator
(See~D~c7b1uu ”PageAT67)
Kurt Wannow Receives Hard
Labor Sentence for Embezzlement
From Von Ossietzky.
the Associated Press.
BERLIN, March 7.—Kurt Wannow,
a Berlin lawyer, was sentenced to two
years at hard labor today for em
bezzling a large part of the 1935 Nobel
Peace Prize awarded to Carl von
Ossietzky, German pacifist.
Wannow also was deprived of his
Civil rights for three years and fined
1,000 marks ($3,200).
It was alleged that the attorney
charged 20,000 marks for fees and
•pent large sums for other purposes,
leaving only 16,500 marks ($6,600) for
Von Ossietzky out of the 100,000 marks
($40,000) prize money.
Jailed in Reich
By the Associated Press.
BERLIN, March 7.—Baron Gott
fried von Cramm, Germany’s great
tennis player, was arrested today by
the criminal police on "serious
While admitting Von Cramm had
been arrested, police headquarters de
clined to divulge the nature of the
charges. It was admitted authori
tatively later, however, that he had
been taken into custody on "suspicion
of moral delinquencies.”
The authorities, however, qualified
Von Cramm’s "arrest” by stating he
had been summoned to police head
quarters "for clarification and exami
nation, pending which, he was held
in custody.”.
Says It Will Ignore Plea of
Private Utilities to Hold
Up Jobs in Dispute.
(Digest of Mr. Morgan’s statement
on Page A-4j
The Public Works Administration
announced today that it will ignore
a request from private utility operators
that municipal power projects be held
in abeyance during negotiations be
tween the power companies and the
Tennessee Valley Authority for the
sale of the private properties.
This statement, coming after Arthur
E. Morgan had indicated he would
stick to his post as chairman of the
T. V. A. board of directors despite
suggestions from his two co-directors
that he resign, served to intensify
further the acrimonious power con
Intimating he would not relinquish
his post Chairman Morgan said “to
surrender the chance to make some
contribution to decency and effective
ness in Government does not seem to
be the right course."
Request Made by Willkie.
Tlie request that P. W. A. suspend
its municipal power projects for SO or
90 days was made Saturday night by
Wendell L. Willkie. president of Com
monwealth & Southern Corp., after
T. V. A. Director David E. Lilienthal
had proposed a plan for the purchase
of the private utility properties in the
Tennessee Valley. Presumably, Mr.
Willkie's request was made 'on the
theory the utility operators could not
negotiate freely with T. V. A. while
their power systems were being men
aced by municipal competition.
The P. W. A. statement, issued
through an aide to Secretary of In
terior Ickes, said:
“The private utilities have tried in
many ways to block the municipal
power program. They tried to dis
suade towns from building their own
systems and when that failed, tried
to tie us up with injunctions. The
Supreme Court, however, has ruled
in our favor and many contracts have
been made between municipalities and
P. W. A.
will Not Back Down.
“The P. W. A. attitude is that we
will abide by these contracts. We will
not back down in any way, and won’t
act in any way on Mr. Willkie’s pro
It was said, however, that P. W. A.
will not seek to force any city to go
ahead with its municipal program un
less Federal funds already have been
advanced for it. Even in the latter
case, it was stated, the municipalities
may withdraw from their contracts if
they return the P. W. A. money.
This applies to Memphis, Tenn„
which has received more than *1,000,
000 from P. w. A. to start construction
of a *10,000,000 power distribution
system. Other cities that may be
affected include Knoxville and Chatta
Asserting a firm belief in the social
and economic aims of the T. V. A.
experiment, Mr. Morgan said.
"For those great possibilities to be
lost by habits of misrepresentation,
intrigue and arbitrary action seems
Tokio Military Seeks to Kill
Olympic Games, Barring Army
By the Associated press. j
TOKIO, March 7.—War Minister
Oen. Sugiyama announced today the
army was prohibiting soldiers on the
Active list from participating in the
1940 Olympics, to be held Jn Tokio,
and advocated their cancellation.
Home Minister Admiral Nobumas
Suvetsugu. in less positive statement.
Indorsed the view “if the situation
grows worse.”
It was the first expression of op
position to the Olympics from official
quarters. Hitherto, an anti-Olympic
movement has been carried on by
patriotic organisations not connected
vlH the government.
Bugiyama and Suyetsugu appeared
before a Diet Committee conducting
hearings on the national mnbm^t-ion
bill giving wide powers to the army.
A member asked the war minintc^
their views on the Olympics and 8uy
etsugu observed that "not only sol
diers in active service, but those on the
retired list now are being called to the
"Therefore,” Gen. Sugiyama added,
"the authorities have decided to pro
hibit the former (active list group)
from participating in the Olympics.
“Of course, if the current conflict
(with China) should end, Japan would
have no cause for abandoning holding
I «e games. Otherwise, I believe Japan
; should not hold the games.”
Moves Toward Removing
Bans on Federal, State
Butler and McReynolds, in
Minority, Deplore Overthrow of
Previous Decisions.
Specifically reversing two former
decisions, the Supreme Court today
took a long step forward in breaking
down restrictions it had imposed on
the respective rights of State and
Federal Governments to tax the agen
cies of each other.
Only in rare instances does the
Supreme Court specifically reverse its
rulings, and today's decision drew
from dissenting Justices Butler and
McReynolds the assertion that the
court has destroyed concepts of the
taxing power which have prevailed
since the famous ruling of Chief
Justice Marshall in the case of Mc
Culloch versus Maryland in 1819.
That ruling forbade the State to tax
the assets of a Federal bank in Bal
timore, Chief Justice Marshall assert
ing^ that “the power to tax Implies
the'power to destroy.”
Commenting on today's ruling,
Justice Butler said:
“The opinion brings forward no
real reason for so sweeping a change
of construction of the Constitution.”
Hughes Delivers Opinion.
The court divided five to two, with
Chief Justice Hughes delivering the
majority opinion. Justices Cardozo
and Reed took no part in the decision.
In another ruling of importance,
the court held that the Internal Rev
enue Bureau may proceed to collect
an assessment of <364,354 against
Charles E. Mitchell, former head of
the National City Bank of New York,
for allegedly filing a fraudulant in
come tax return in 1929. Mr. Mitchell
had been indicted for the alleged fraud,
but was acquitted on all counts when
brought to trial.
' This acquittal, Mr. Mitchell con
| tended, cleared him of the fraud alle
! gatlon and served as a bar to the col
lection of the assessment based on the
supposed fraud.
In ruling against him, the Supreme
Court reversed the lower court on the
theory that the failure to prove fraud
i in a criminal case does not necessarily
mean the Government would be un
able to establish its charge in a civil
proceeding to collect the assessment.
Justice McReynolds dissented In the
Mitchell case and Justice Brandeis
delivered the majority opinion.
Wyoming Case Involved.
The court's analysis of the facts, in
the decision announced by Chief Jus
tice Hughes, showed that the State of
Wyoming had made a lease covering
a section of school land to the Mid
west Oil Co. for the purpose of. pro
ducing oil and gas, reserving a royalty
j to the State. The oil company then
; executed a declaration of trust- under
which a corporation known as Wy
oming Associates derived certain bene
This set -up presented the question
whether Wyoming Associates was sub
ject to a Federal income tax on the
financial benefits it received, immunity
being claimed on the ground that
under the declaration of trust Wyom
ing Associated was a State instru
Stated generally, the theory of the
immunity claim was that a tax on
its benefits operated to the disad
vantage of the State by jeopardizing
its royalties under the agreement.
The chief justice then pointed out
that the claim of tax immunity was
justified by decisions of the Supreme
Court in cases known as Burnet vs.
Coronado Oil St Gas Co. and Gil
lespie vs. Oklahoma. In announcing
the court's decision to overrule these
cases, the chief justice said in part:
"In numerous decisions we have
had occasions to declare that • • * the
power to tax should not be crippled
by extending the constitutional ex
emption from taxation to those sub
jects which fall within the general
application of nan-discriminatory laws,
and where no direct burden is laid
upon the governmental instrumen
tality and there is only remote, if
any, influence upon the exercise of
the functions of government • * *
Regard for Direct Effects.
“These decisions in a variety of ap
plications enforce what we deem to
be the controlling view—that Immunity
from non-discriminatory taxation
sought by the private person for his
property or gains because he is en
gaged in operations under a Govern
ment contract or lease cannot be
supported by merely theoretical con
ceptions of interference with the func
tions of Government. Regard must be
had to substance and direct effects.
And where it merely appears that
one operating under a Government
contract or lease is subject to a tax
with respect to his profits on the
same basis as others who are engaged
In similar businesses, there is no
sufficient ground for holding that, the
effect upon the Government is other
than indirect and remote. We are
convinced that the rulings in Gillespie
versus Oklahoma and Burnet versus
Coronado Oil & Gas Co. are out of
(See COURT, Page A-7.)
B? the Associated Press.
TUCSON, Aria., March 7.—Gen.
John J. Pershing looked forward to
basking in the sun again today as he
continued his slow improvement.
The general, whose rally from a
heart ailment and uremic poisoning
last week amazed his physicians,
spent 44 minutes on the sun porch of
Desert Sanitarium yesterday, u was
khe second day he had been TMeeled
out Of dOOEB
Disarmament to Follow If
They Succeed, However,
Says Chamberlain.
England’s Economic Stability
Held by Premier a ‘Deterrent
Against Attack.*
Britain is launched upon five
year program of rearmament to
cost more than $7,500,000,000, with
nearly t2,OOO,OOO,OOO to be spent in
the next fiscal year. Prime Min
ister Chamberlain has undertaken
to discuss terms of settlement with
Italy and Germany which will
lessen European tension and per
mit disarmament.
By the Associated Press.
LONDON, March 7.—Prime Mine
later Neville Chamberlain told the
House of Commons today that if the
vital peace talks with Italy and Ger
many. opening this week, failed
Britain would speed up her already
gigantic rearmament program.
But he said if the negotiations suc
ceeded. disarmament would follow in j
due course.
The conservative majority repeatedly
cheered the Prime Minister as he ex
plained his policy of rearming and
at the same time trying to prevent
Europe drifting “toward the cataract
of wrar'' by means of frank talks with
the leaders of Italy and Germany.
Denies Bias.
Answering opposition charges that!
he was biased in favor of the dic
tatorships, Mr. Chamberlain in a
fighting speech replied:
"I have to deal with a world in
which dictatorships exist. I have
no interest in other systems of govern
ment except in so far as they react
on other countries. I have no bias
in favor of Nazism. Fascism or
Bolshevism, because all of themTseem
to be inconsistent with what is all
important to me because it is the root
of my political creed—that is, indi
vidual liberty."
Vote of Confidence Asked.
Mr. Chsmberlaft opened a, "full
dress" debate on national defense with
a demand for a vote of confidence.
The whole country is determined to
carry through Britain's gigantic five
year rearmament plan to the finish,
the "realistic" prime minister de
clared. Last week the government an
nounced the original estimate of
$7,500,000,000 for this program prob
ably would be exceeded.
The debate, involving foreign policy
as well as rearmament, was based on
the government’s "white paper” of
March 2, estimating 1938-9 armament
costs at 351,750,000 pounds ($1,758,
Amendments Proposed.
Both the labor and opposition par
ties introduced amendments assert
ing that rearmament was excusable
only if used to reinforce a policy of
collective security, which some of Mr.
Chamberlain's recent statements, ex
pressing doubts of the effectiveness of
the League of Nations, have appeared
to abandon.
Unusual importance was attached to
the debate because of the vital con
versations opening this week with
Italy and Germany.
Praising Britain’s ‘‘economic sta
bility,” Mr. Chamberlain said it was
a "powerful deterrent against attack.’’
He continued:
"Unless a nation can feel it possible
to knock out its opponent by a
sudden blow—and recent experience
is not very encouraging to that theory
—then the strongest people may hesi
tate to risk a struggle with a country
whose staying power may indefinitely
prolong its resistance.”
Fleet in Grand Review.
The debate coincided with a grand
fleet review to form a gun-studded
background for the talks with Italy
and Germany.
At the same time, both hom< and
Mediterranean fleets opened a vast
day and night series of seven tactical
exercises, "westward of Gibraltar,” to
test naval strength.
I i,
Five Planes Fail to Strike
. Mistake Seen.
British warships have been
placed in Mediterranean as part
of international patrol to protect
shipping against pirate raiders on
high seas. Nyon anti-piracy agree
ment concluded last September
was instituted by French and
British as precaution against sub
marine attacks. Patrol was
strengthened after recent torpedoing
of the British collier Endymion.
Bt the Associated Press.
LONDON, March 7.—The admiralty
disclosed today that the British de
stroyers Blanche and Brilliant had
been attacked—but not hit—by five
unidentified bombing planes.
The attack occurred yesterday off
the Spanish coast in the same general
area where the Spanish government
fleet torpedoed and sank one of the
insurgents’ prize cruisers.
An admiralty official said he pre
sumed the attack on the British vessel
was a result of the naval battle. He
added, however, that it obviously was
a case of mistaken identity.
Spanish government warplanes took
an active part in the naval battle,
bombing insurgent warships and
strafing their decks with machine gun
Planes Believed Loyalist.
Authorities at Gibraltar said they be
lieved the attacking planes belonged to
the Spanish government. Seamen
from the Blanche said the British de
stroyers did not return the fire.
The British destroyer Boreas, which
rescued several hundred survivors
from the torpedoed insurgent cruiser,
arrived at Gibraltar bearing the body
of a British seaman killed during
rescue work. Three wounded British
seamen were rushed to a military hos
The Blanche and the Brilliant were
on Nyon patrol duty, protecting neu
tral shipping in the Western Mediter
ranean against so-called "pirate”
Believed "Mopping Up."
Although the attacking planes were
unidentified the admiralty official
said he presumed they were "mopping
up” for one side or the other after
the naval battle and mistook the
Blanche and Brilliant for enemy ships.
“They went for them,” he said.
"Unfortunately they were ours.”
The planes dumped several bombs,
none striking the destroyers, and then
wheeled away.
The Blanche has been involved in
two other incidents. She rescued the
British steamer Thorpehall from the
insurgent warship Almirante Cervera
off Bilbao last April, and she was
(See LONDON, Page A-6.)
Summary of Today's Star
Page. Page
Amusements B-l* Obituary ...A-l*
Comics . B-14-15 Radio .B-ll
Editorials .. A-S Short Story ..B-S
Finance ... A-13 Society_B-3
Woman’s Pg. B-l* Sports .. A-1S-17
Lost St Found B-ll
Japanese military seeks to bar 1040
Tokio Olympics. Page A-l
Five planes attack British destroyers
off Spain. Page A-l
Britain to speed arms program if
peace talks fail. Page A-l
Bucharin accused of plan to kill
Lenin and SUlin. t Page A-l
Supreme Court reverses two former
rulings on taxing right. Page A-l
Big demand for rural relief since re
cession, says Qill. Page A-S
Byrd renews attack on reorganisation
Mil. Page A-S
Senate passes D. C. bill, votes parking
meter trial. Page A-l
Roosevelt signs bill to set up small
claims court. Page A-l
Eight "camera eye" detectives form
new "pick-up squad.” Page A-l
P. W. A. to proceed with municipal
power projects. Page A-l
DicUtors attacked by Kerensky before
Town Hall. Page A-4
Symphony volunteers increased by
300. Page A-5
Seven dead in traffic yesterday and
early today. Fdge B-l
Fraud charges mark loan fliWplasolu
tion proceedings. FlWe B-l
Editorials. Page A-8
This and That. Page A-8
Washington Observations. Page A-S
Answers to Questions. Page A-8
The Capital Parade. Page A-9
David Lawrence. Page A-9
Dorothy Thompson. Page A-9
Constantine Brown. Page A-9
Lemuel Parton. Page A-9
Steel revival slow. PageA-18
Rail bonds ease (table). Page A-13
Stocks sell off (table). PageA-14
Curb shares down (table). Page A-1S
Niagara Hudson nets $10,502,217.
Low volume worries brokers. Page A-15
Job lights loom with Nats’ squad at
lull strength. Page A-lf
Trio of lefty boxmen hearten head
man of Grlffmen. PageA-18
Death claims President McKeever of
Dodgers at age of 85. Page A-18
Eastern, St. John’s meet tonight for
basket title. Page A-17
Stagehand hailed as real Kentucky
Derby threat. Page A-17
Archibald risks ring streak against
Mirabella tonight. Page A-17
Shipping News. Page B-4
City News in Brief. Page B-4
Bedtime Story. Page B-5
Nature’s Children. Page B-9
Dorothy Dlx. Page B-19
Letter-Out. fage B-14
Crossword Pussie. “age B-14
Contract Bridge. Page B-II
“H«m” Is First
to Talk With
Pitcairn Isle
By the Associated Press.
BINGHAMTON. N. Y., March 7 —
A “ham” radio operator claimed to
day the distinction of being the first
American to communicate by wire
less with Pitcairn Island, the isolated
dot in the South Pacific settled 148
years ago by the crew of the ship
F. W. Wolfinger of Binghamton as
serted he had not only performed the
feat, but had actually talked by radio
phone with Andrew Young, a direct
descendant of Fletcher Christian,
sailing master of the Bounty and one
of the original settlers.
Mr. Wolflnger said he was twirling
the dials of his short wave receiver
early Saturday morning when he
heard the call "VRA, VRA, VRA . .
He called back and found that he
was in communication with Pitcairn
Island—6,000 miles away,
Move Intended to Provide
Assistance to Needy
Establishment of small claims
branch of Municipal Court was
proposed after such tribunals had
proved successful in other jurisdic
tions. The new court would simplify
legal procedure for benefit of
needy litigants unable to afford
counsel. Under the new plan the
presiding judge, when necessary,
would be authorized to examine
witnesses and ignore formal rules
of evidence in effort to settle dis
putes promptly and equitably.
President Roosevelt today signed an
act of Congress to establish a small
claims and conciliation branch of the
Municipal Court of the District of
This legislation was for the purpose
of improving the administration of
justice in minor cases, to provide
assistance to needy litigants, and to
expedite the business of the Municipal
The creation of this branch marks
the'realization of the dream of Judge
Nathan Caytor. of the Municipal Court,
who almost slnglehandedly brought
about the enactment of the law.
Judge Cayton was delighted when he
learned the President had signed the
“I am happy,” Judge Cayton said,
“to learn that a two-year battle for
this measure has finally been crowned
with success. I am sure a small claims
court will work to the advantage of
all concerned.”
According to wording of the act,
the small claims and conciliation
branch will not be established until
30 days after the bill is signed by the
President. When the court Is set up
It will be possible for debtor and
creditor to meet in informal fashion
and discuss their case In non-judieial
language at virtually no expense.
Besides handling claims of $60 or
less without the usual court pro
cedure, the small claims court would
be empowered to act as conciliator in
large cases regardless of the amount
involved, if all parties involved re
quest it The small claims court will
reduce expenses to litigants by provid
ing a minimum flat fee of $1, which
may be waived for those unable to
pay, obviating needless and costly con
tinuances and making It unnecessary
to be represented by counsel, either
to Institute or defend a suit
Judge Cayton said that between
now and the time the act goes Into
effect the Judges of the Municipal
Court will adopt the necessary rules
for operation. The understanding now
is that the five Judges on the muni
cipal bench will take turns presiding
over small claims cases and acting as
arbitrators. Judge Cayton said that
hd probably will make special trips
to New York and Chicago to visit
small claims courts in these cities.
He added that no additional personnel
or funds will be needed to finance
the new branch aW the Municipal
^ *
Eight Crack Detectives to
Rove About Capital in
Hunt for Suspects.
Eight crack detectives, picked for
their 'camera-eye" ability to recog
nize hunted criminals, were assigned
today to an enlarged “pick-up" squad
U.( Sklnnn.
which immedi
ately began work
ing out of police
headquarters on
roving assign
ments in a -new
attack on crime
in the District.
Detective Sergt.
Joseph W
Shimon, credited
with breaking
some of the ma
jor robbery cases
here in the last
several months,
was promoted to
acting lieutenant
as head of the squad.
The squad's special mission is to
arrest men and women suspected of
committing crimes, those known as
notorious criminals here or elsewhere
and any other suspicious characters.
Prisoners not wanted on any other
charges will be prosecuted for vag
rancy in an effort to keep them off the
streets as a crime preventive measure,
police officials said.
MaJ. Ernest W. Brown, superin
tendent of police, who announced en
largement of the “pick-up” squad from
two to eight men after a long series
of conferences with other command
ing officers, planned to confer this
afternoon with Corporation Counsel
Elwood H. Seal on measures to
strengthen the present vagrancy law.
Has Seven Aides.
Working under direction of Lt.
Shimon on the special squad are De
tective Sergts. H. H. Britton, Frank
O. Brass and J. K. Baker, and former
Precinct Detectives D. L. Guest. W.
G. Fawsett, H. H. Carper and E. E.
Fredette. Heretofore the squad lias
included only Sergts. Brass and Baker.
Detectives Guest, Fawsett, Carper
and Fredette were transferred from
their precinct assignments to the
headquarters squad because of their
special knowledge of crime conditions
in specific sections of the city.
MaJ. Brown said all eight detectives,
who already are known for their
memory of faces and their ability to
pick out suspects on the street, will
make it a part of their Jobs to study
carefully ‘ rogues' gallery" pictures and
descriptions of known criminals so as
to be able to recognize them when they
show up in Washington.
Seen Cutting Down Crime.
Activity of the squad should cut
down crime in the District as well
as speed solution of those crimes that
are committed simply by making it
tougher for criminals to live here,
Maj. Brown said. He pointed out
that ‘ many undesirable characters
would stay out of the city rather than
face police inquiry into their records
and possible prosecution for vagrancy
If nothing more serious was found
against them.
Maj. Brown emphasized, however,
the need for putting teeth into the
vagrancy laws. Convictions are diffi
cult under present broad interpreta
tions of the law. He did not predict
what might result from his conference
with Mr. Seal.
The police superintendent has advo
cated a law requiring all persons with
prison records to. register at police
headquarters. This would Increase
the value of the “pick-up” squad tre
mendously, be said, because violators
of such a law would find it harder
to escape prosecution than under the
present vagrancy statute. •
Bank Continued Business
Though Charter Expired,
Court Declares.
$1,000,000 INVOLVED,
Auditor Is Directed to Determine
Which of 1929 Depositors Will
Be Benefited.
Park Savings Bank closed in
March, 1933, with total liabilities
of over t3.000.000. Vice President
Robert S. Stum committed suicide.
Depositors have received dividend
of 20 per cent plus 5 per cent made
available before bank closed.
Litigation brought by depositors
resulted in several suits.
The 28 directors of the defunct
Park Savings Bank were held today
by the United States Court of Appeals
to be personally liable for all deposit*
in the bank on August 30. 1929, which
were not withdrawm subsequent to
that date.
The amount of the liability has not
been ascertained, but was estimated by
attorneys representing depositors to
exceed $1,000,000.
The opinion of the court, written by
Chief Justice D. Lawrence Groner. is
the culmination of some four years of
continuous litigation and followed a
Court of Appeals decision in 1935 that
the directors were not liable for money
deposited in the bank after August
30, 1929, which was the date on which
the institution’s charter, issued by the
State of Alabama, expired#
Continued Active Business.
Notwithstanding the expiration of
the charter, and apparently without
actual knowledge of its expiration,
officials of the bank continued an
active banking business up to March 6,
1933, when the Park Savings was
closed, along with all other banks in
the city, by order of the President. At
the time of the closing, the bank was
hopelessly insolvent, the cpurt said,
“the greater part of its assets having
been embezzled by its principal officer
(Robert P. Stunz), who shortly after
the closing committed suicide.”
Under the statutes of Alabama,
which apply to the present case since
the bank was incorporated there, the
directors automatically become “liqui
dating trustees" upon expiration of
the charter, and personally liable for
all assets which come into their hands
from the bank's officers at that time.
These assets form a trust fund for the
benefit of creditors, the court said.
In its 1935 opinion, regarding lia
bility for deposits after the expiration
of the charter, the Court of Appeals
said depositors after that date were
assumed to have constructive notice
of the expiration of the charter and
hence were estopped from proceeding
against the directors for post-charter
Sent Back for Trial.
At that time the Court of Appeals
sent the case back to the District
Court for trial of the question whether
the directors were liable for deposits
in the bank on August 30, 1929.
The trial court held that they were
not, saying that the depositors and
other creditors were estopped to as
sert such a liability on the part of the
directors since they left their funds in
the bank, thereby recognizing the bank
as a continuing institution.
The Court of Appeals, however, re
versed this holding. It said that al
though the directors were “wholly
lacking in any element of bad faith,”
they could not escape their liability
as trustees, at the expiration of the
charter, by claiming that the deposi
tors had waived their rights to proceed
against them.
Such a waiver would have had to be
given with a full knowledge by the
depositors of their legal rights, the
court declared.
The case was referred to the District
Court auditor to determine which de
positors of the bank, as of August 30,
1929, allowed their money to remain
there. This problem is more com
plicated than it first appears, since it
may be held that the liability extends
only to the actual money on deposit on
that date and not to subsequent
replenishments of the same account.
The depositors were represented by
E. Hilton Jackson, William E. Richard
son and Ward B. McCarthy, who filed
the original bill, later they were
Joined in the same contention by the
receiver of the bank, John F. Moran,
represented by Attorneys J. Bruce
Kremer, George B. Springston and
Herbert M. Bingham. The receiver
originally opposed the plea of the de
positors, but later withdrew this op
position and filed a cross bill, Joining
forces with the Depositors* Committee.
The directors upon whom the li
ability will fall are: Frank E. Altemus,
Wade H. Atkinson. Charles W. Bolg
iano, L. T. Breuninger, Justice Joseph
W. Cox, H. F. Dismer, Peter M.
Dorsch, G. W. Forsberg, J. O. Gheen,
E. T. Goodman, John H. Holmead,
C. F. Jenkins, A. F. Jorse, E. 8.
Kennedy, N. Mountford, C. M. Murray,
Claude W. Owen, Robert L. W. Owens,
Norman O. Oyster, H. A. Polkinhorn,
(See PARK SAVINGS, Page A-«.)
new Regular Stamp Series
To Honor AH U. S. Presidents
The regular series of United States
postage stamps will be completely re
vised this year, when the portraits
of 12 former Presidents will be re
produced on issues for the first time,
replacing other designs, it was an
nounced today by Postmaster General
James A. Parley.
With designs already in prepara
tion, it was thought the first of th#
new stamps would make their ap
pearanee about tUe 1. and the rest
follow at interval, but details of
distribution still are to be worked out
Entailing the first revision since
1933-3, the new series will Include
four new denominations—4 Vi cents,
18, 35 and 40 cents. This will raise
to 31 the denominations used. There
will be 10 stamps removed from cir
culation to make it possible to honor
all deceased Presidents, and there
will be a general rearrangement of all
issues, so that the sequence of the
values—from minimum to maximum—
mar coincide wt£ the chronological
(See STAMPS, Pag* M.)

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