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Evening star. [volume] (Washington, D.C.) 1854-1972, March 08, 1938, Image 3

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Circulation of 'Red-Baiting’
Articles by N. A. M. Is
Cited at Hearing.
Circulation of numerous ‘ red-bait
ing” articles directed particularly at
the leadership of the Committee for
Industrial Organization has been one
of the major parts of the "educa
tional" program of the National Asso
ciation of Manufacturers, it was dis
closed before the Senate Civil Liber
ties Committee today.
Among several exhibits placed be
fore the committee was a pamphlet
published by the Constitutional Edu
cational League of Connecticut and
entitled "Join the C. I. O. and Help
Build a Soviet America." About 10,000
copies of this booklet were distributed.
A second exhibit was an article
from the Chicago Tribune, which de
acribed the C. I. O. as a communistic
movement and classified its leaders
as "left wing organizers and agita
tors/' The association distributed 130,
000 copies of this article, it was
An N. A. M. memorandum dpaling
with various phases of the public in
formation program, Introduced today,
remarked that the material was being
used on "an unprecedented scale” with
the "propaganda value" considered i
Weisenburger Offers Defense. j
In defense of circulation of the anti
communist literature, Walter B.
Weisenburger. executive vice president
of the association, pointed out that
much of the information contained
has since been proven true.
Included in N. A. M. correspondence
read into the record today was a letter
from Mr. Weisenburger to the Ma
honing Valley Industrial Council in
June, 1936, describing the setting up
of the La Follette committee and its
purposes of investigating violations
of civil liberties.
“The preliminary ex parte inquiry
preceding the adoption of the resolu
tion," Mr. Weisenburger wrote, “con
fil^?d the inquiry to alleged violations
of ffibse rights by employers or their
agents. It is therefore natural to pre
sume that the committee would be
inclined to tend to limit the inquiry
In this direction.
“If the committee performs its duty
with impartiality it will investigate
and willingly receive evidence with
respect to the notorious coercion, in
timidation and disorder which it has
effectively undertaken to deny either
to non-unionists or to all legitimate
labor organizations not affiliated with
the federation the right which are
under inquiry.
“Every association which has suf
fered an unhappy experience should
compile and bo prepared to present
the widespread testimony which exists
With regard to these matters."
Johnstown Mayor Called.
The committee has summoned nine!
witnesses, including the Mayoi nf I
Johnstown, Fa., to testify tomorrow in j
its investigation of activities connected
with the steel strike in that city early
last summer.
Besides Mayor Daniel J. Shields the
following have been subpoenaed: Da- I
vid Watkins, Steel Workers’ Organiz
ing Committee: L. W. Campbell,
Johnstown Chamber of Commerce: F.
C. Martin, chairman of the Johnstown
Citizens’ Committee: Fulton Connor,
treasurer of the committee: the Rev.
John H. Stanton, a member of the
committee; Sidney Evans and C. R.
Ellicott of the Bethlehem Steel Co.,
and John Price Jones of New York.
A committee aide said a number of
others who were under subpoena were 1
excused "because we didn’t need!
' !
St. Elizabeth's Superintendent
Heard by Civic Group of
Congress Heights.
The wall around St. Elizabeth’s
Hospital should not be looked upon
as symbolic by neighbors, Dr. Win
fred Overholser, superintendent of
the institution, told the Congress
Heights Progressive Citizens’ Associa
tion at its meeting last night in the
Congress Heights School.
Deploring the use of the words
“lunatic" and “insane.” Dr. Overholser
declared that laymen are not as a
whole acquainted with the conditions
as they actually exist in an asvlum
for the mentally ill. There are no
loud, raging, boisterous individuals
roaming the grounds or attempting to
jump out of windows, as many people
believe, but patients of a regimented
system of hospitalization for people
who are sick mentallv, Dr. Over
holser said.
After his talk Dr. and Mrs. Over
holser were elected honorary mem
bers of the group.
The body sanctloneed the proposal
to have a flag for the District W
Columbia. Otto Garnand, president
of the association, offered the pro
posal, citing the city-wide Interest
aroused by the suggestion.
Enrollment of the group passed 100
with the admission of 15 new mem
bers. They are Mr. and Mrs. R. E.
Lee, Benjamin Striner Mrs. G. D.
Branson, Mr. and Mrs. L. A. Quinones,
Fred Hall, Mr. and Mrs. F. J. Ken
nedy, George E. Maddox, Nettie L.
Landman, Edward F. Payne, Victoria
C. Beck, Mrs. R. A. Sullivan and Mrs.
F. A. Carr.
Johns-Manville Workers Get
Report on Company Operation
By the Auoeleted Press.
NEW YORK, March 8.—The job
holders—as well as the stockholders—
of the Johns-Manville Corp. had a
financial report today from the com
Lewis H. Brown,- president, ad
dressed his usual annual- report to
the corporation’s 7,100 stockholders
and then Issued a simplified version
to its 11,200 workers, explaining In
elementary terms the management
"It is the chief concern of the man
agers to try to plan for the best pos
sible uninterrupted annual wage or
salary for both jobholders and stock
holders,’’ Brown said, "then neither
of them will be ‘laid off.'
"Your company managers know
that both stockholders and jobholders
are dependent upon each other and
that neither could profit without the
support and co-operation of the other.”
Mr. Brown said the corporation
during 1937 had paid out $20,31;,813
in wages and salaries—or 51 per cent
of its Income after deducting cost of
materials add transportation charges.
His report showed a corporation
surplus of $6,056,060 and a dividend
of $4,562,000, or 11 Vi per cent, to
stockholders who had invested an ad*
ditional $10,800,000.
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Wheeler Is Slated to Reopen
Debate With Proposal
to Curb Powers.
After an interruption of several days
the Senate is slated to resume con
sideration of the Government reor
ganization bill today, with Senator
Wheeler, Democrat, of Montana pre
pared to outline his opposition to the
power the measure would confer on
the President to consolidate or abolish
bureaus by executive order.
The President's executive orders
would have to be submitted to Con
gress. At the end of 60 days they
would become effective automatically
in the absence of any action by the
legislative branch.
Senator Wheeler is advocating an
amendment to require affirmative ap
proval of Congress, by passage of a
joint resolution, before the changes
would take effect. He probably will
discuss his amendment today.
Would Facilitate Check.
While Congress could initiate legis
lation to disapprove an executive order
without such an amendment, some
opponents of the bill argue it would
not be easy, with other legislation
coming up from day to day, to secure
enactment of the disapproval bill
within 60 days. They point out, also,
that the President could veto such a
measure, which would make a two
thirds vote of both houses necessary
to stop the order from becoming effec
In a brief colloquy with other Sena
tors before the bill was laid aside last
week. Senator Wheeler declared that
"If we had a Republican President
today, hardly a Democratic Senator
would be supporting this bill. Demo
crats would be insisting that Congress
ought to have a right to legislate be
fore the reorganization goes into
Vote’ This Week Doubtful.
Although supporters of the bill are
hopeful of voting on the measure this
week, there appears to be little like
lihood today that that will happen.
It is possible some amendments will
be acted on this week, but there are
indications a good many amendments
will be offered.
The Wheeler amendment will fur
nish a vital test, since it deals with
the general reorganizing power. Other
important votes will be on the pro
posed abolition of the General Ac
counting Office, and the substitution
of a one-man administrator for the
present Civil Service Commission.
Citizens’ Meeting Tonight.
The Northeast Boundary Citizens’
Association will meet at 8:30 o'clock
tonight In the Burrville School.
T. V. A.
_(Continued From First Page.)
Mr. Lilienthal's offer of March 4. said
Mr. Lilienthal's plan would not work
I unless T. V. A. were willing to take
| over the private properties "as going
| concerns.”
| Mr. ijilienthal had proposed pur
chasing the properties on the basis of
i "actual legitimate cost less deprecia
; tion."
Determination of Farts.
The T. V. A. director's letter today
said it was apparent the companies
and T. V. A. would have to get together
on a number of points.
"The first step in the negotiations, I
am sure you will agree, is the deter
mination of basic facts,” Mr. Lilien
thal wrote.
"As soon as the necessary records
are made available, we can proceed
with these studies, and we will soon be
in a position to go forward with the
negotiation of price and other terms.”
Mr. Lilienthal suggested Mr. Willkie
meet him for these discussions at
Chattanooga on March 15.
Meanwhile, as Senator Norris. In
; dependent, of Nebraska prepared to
I speak on the Senate floor in defense of
the Tennessee Valley Authority, it was
disclosed that the controller general's
office has prepared a preliminary re
1 port questioning some $5,000,000 of T.
V. A. expenditures.
Included in the S5.000.000 figure are
some $2,000,000 of T. V. A. expense
items that have been in controversy
since 1934. These expenditures, which
include $10,000 for a private account
ant to audit the T. V. A. cash account,
have been discussed in Congress, par
ticularly by Chairman May of the
House Military Affairs Committee, an
enemy of the Federal power agency.
Since 1934 additional expenditures
in dispute have brought the total to
nearly $5,000,000. It was stated at the
controller general’s office that the fact
these expenditures have been ques
tioned does not necessarily mean they
were illegal. The preliminary report
has requested additional explanatory
information and receipts from T. V. A.,
and when this information is received
a final report will be submitted to
Congress and the President.
standing that no P. W. A. gifts will
presently be made by the Federal Gov
ernment to municipalities with which
to duplicate existing utility property.
"In other words, that there be a
standstill agreement during the period
of negotiation and study.
‘'The T. V. A. should also include
in its studies the cost to Tennessee
Electric Power and other of our com
panies of acquiring and assembling
its business.
■'We also renew our suggestion of
the other day—that a committee con
sisting of such men as Felix Frank
furter of the Harvard Law School;
Dr. Clarence A. Dykstra. president of
the University of Wisconsin, and Dr.
Karl T. Compton, president of the
Massachusetts Institute of Technology,
be appointed to consider the question
of the sale of facilities of Common
wealth As Southern properties to
T. V. A.”
Mr. Willkie said he was writing
Mr. Lilienthal to this effect.
Two Named Judges for Election
for Town Offices to Be
Held in May.
Special Dispatch to The Star.
RIVERDALE. Md.. March 8.—An
appeal to Senator Tydings and
Representative Gambrill to oppose the
bill to impose a tax on fuel oil was
drafted by the mayor and Council
last night.
Former Mayor J. B. Waters and
Mrs. Mabel Munch were named judges
for the municipal election to be held
May 2 when three councilmen and
a town treasurer will be chosen. Clerks
for the election will be named later.
Mayor William C. Wedding an
nounced the town plans to take an
active part in the Maryland State
Firemen’s Association clean-up cam
paign April 10 to 16.
Makes Provision, However, That P.
W. A. Hold Up Gifts.
NEW YORK, March 8 (/£pj._Wen
dell L. Willkie, president of CommorK
wealth & Southern Corp., accepted
today the basis for negotiations with
T. V. A. proposed by Director David
E. Ulienthal, with the provision, how
ever. that there be a standstill agree
ment rm P. W. A. grants to munici
palities during the period of nego
tiating the sale of Commonwealth St
Southern properties.
“We shall be very glad,” Mr. Will
kie said, "to comply with the request
of Mr. Ulienthal and furnish him
with all data regarding our companies
in T. V. A. territory, upon the under
By the Associated Press.
The War Department made Brig.
Gen. Robert McC. Beck, jr., an as
sistant chief of staff today, in a
shake-up resulting from the retire
ment for ill health of Brig. Gen.
George R. Spalding.
Gen. Beck, recently in command of
the 2d Cavalry Brigade at Fort Bliss,
Tex., was put in charge of the Opera
tions and Training Division of the
general staff.
A native of Westminster, Md., Gen.
Beck holds a Distinguished Service
Medal and other decorations for
World War service.
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I. Shoh Known to Washington Orer e Quarter-Century
Senator Truman Tells Unit
World Knows U. S. to
Fight for Rights.
“The world knows that we can mo
bilize, that we can and will fight for
our rights, In spite of a small and
vociferous pacifist group," Senator
Truman of Missouri last night told
members of George Washington Post,
No. 1, celebrating the organization of
the first post in the American Legion,
at the Club Admiral.
“We fought for liberty and honor,
Just as we always have and Just as we
always shall when occasion demands
It. I hope that we shall never have to
fight again, and the best way to keep
from It is to be adequately prepared
for all contingencies."
Senator Truman, who attended the
Paris caucus March 15, 1919, paid
tribute to the late Col. E. Lester Jones,
one of the founders of the American
Legion, who was the first post com
mander of George Washington Post
and the first department commander
in the national organization.
Senator Truman was requested by
Senator Clark to take his place as
guest speaker, owing to being confined
by illness at his home.
Message Sent to Pershing.
Comdr. John P. Dull acted as master
of ceremonies and lauded the work >f
Col. Jones, who was confronted with
many handicaps in founding the vet
eran organization. Past Comdr. Wal
lace Streater presented a telegram
which was sent to Gen. John J.
Pershing, a charter member of the
post, who is recovering at Tucson,
Ariz. The post extended wishes for
his speedy recovery and many years of
continued health and usefulness to his
Representative Gearhart of Cali
fornia, a past department commander
of California, stressed the wish of all
veterans to avoid another great con
flict and referred to the disabled men
as the result of the World War. He
made a strong appeal for peace and
urged the post to back his bill de
claring Armistice Day a national holi
History of Post Related.
Past Comdr. Howard S. Fisk, the
first post adjutant and the first de
partment adjutant in the American
Legion, related briefly the organization
of the post on March 7, 1919. in the
Cosmos Club, and of events that fol
lowed. With L. Clarkson Hines, who
later addressed the meeting, they were
the only two members of the 15 sign
ers of the application for the post
charter present last night.
Gen. Amos A. Fries, past department
commander and a member of the post,
told of the co-operative and instructive
work being accomplished in the public
schools by the Federal Bureau of In
vestigation. under the auspices of the
American Legion. Other speakers of
the evening included Gen. Albert L.
Cox. president of the District of Co
lumbia Chapter of the Military Order
of the World War; Past Dept. Comdr.
Benjamin S. Fisher of Oregon* Vice
Comdr. Jane Cox of the District of
Columbia Department. John Thomas
Taylor, national legislative director
of the American Legion; W. S. Slocum
of the Department of Maine, Mrs. E.
P. Ellis, president of the George Bald
win McCoy Unit of the American
Womens Legion; Harold K. Phillips,
former publicity representative of the
Legion; Past Comdr. J. J. Murphy
and Gist Blair, a charter member of
the post.
At the conclusion of the program
Dept. Vice Comdr. Fred Money cut a
large birthday cake with a cavalry
saber as a signal for refreshments
and dancing.
Naval Officer and Embassy Clerk
Detained, bnt Released at
Charleston, S. C.
By the Associated Press.
CHARLESTON, S. C., March 8 —
Two Japanese, one a naval officer
and the other an Embassy clerk at
Washington, mere questioned yester
day by authorities on reports that they
were taking photographs around
The men. Lt. Comdr. K. Nagasawa
and Hiroshi Harasaki. were released
after about two hours, and continued
on to Savannah, Ga. They are en
route to Florida.
County Policeman Carroll A. Santos
said he took them into custody when
Jje received a report they were taking
Various Federal agencies, including
the Navy, were called into consulta
tion, and the men were questioned at
the immigration office, where their
passports were found in order.
The Japanese had three miniature
cameras. Officers said the photographs
were only of picturesque old houses
and moss hung oaks in this section.
Three Others Cited Under
Lindbergh Law in
Wendel Case.
By the Associated Preu. ’
NEW YORK. March 8.—A Federal
grand jury today Indicted Ellis H.
Parker, sr., Burlington County, N. J.,
chief of detectives; his son, Ellis, Jr.,
and three others as kidnapers under
the Lindbergh law.
The indictment concerned the al
leged kidnaping of Paul H. Wendel,
former Trenton resident, from New
York to the Parkers’ home in Mount
Holly, N. J., February 24, 1936.
At that time, the Parkers issued a
“confession” signed by Wendel that
he had kidnaped Charles A. Lind
bergh, Jr„ the crime for which Bruno
Richard Hauptmann was then under
the death sentence.
The faked confession, allegedly ob
tained by,* torture, delayed Haupt
mann’s execution three days.
The three indicted with the Parkers
were Murray Bleefeld, Harry Weiss
and Martin Schlossman, all of New
York. They have been characterized
by State and Federal prosecutors in
previous legal actions as the tools of
the Parkers.
Both the Parkers have been under
indictment in Brooklyn for the last
16 months in connection with the
Wendel case, but all efforts to extra
dite them from New Jersey have been
Today's indictment, under Federal
j law. opens the way to bringing the
| Parkers here for trial.
Several Controversial Questions
Are to Be Acted Upon at
Meeting Tonight.
The District Bar Association will
mppt in the Mayflower Hotel tonight
to hear a report by the president. Bo
litha J. Laws.’ proposing a program for
the ensuing year.
Several highly controversial ques
tions on the agenda, Including the
proposal to elevate standards for ad
mission to the bar and the question
of whether an appeal will be taken
from the recent court decision dis
missing the association's suit in which
the American Security & Trust Co.
was charged with unauthorized prac
tice of law.
It was said that the advisability of
withdrawing free legal aid, which
hitherto has been furnished by the
' association to indigent litigants, will
j be considered, because of the recent
i enactment of a small claims court law.
• Continued From First Page.)
j the next $20,000, up to 16 per cent on
| all income over $25,000
i All corporations now pay an income
: tax of 8 to 15 per cent and an undis
tributed profits levy of 7 to 27 per
Revenue Estimates Differ.
Republicans said the Treadway pro
posal would lower Government rev
j enues by $80,000,000; Democrats put
1 the estimate at $200,000,000 to $250,
! 000,000.
! Treadway assailed the "iniquitous
! and outrageous principle” of the un
! distributed profits tax, which he said
' had been repudiated from one end
of the Nation to the other.
Representative Vinson. Democrat, of
Kentucky called Representative Tread
: w'ay's proposal a "weasel-like amend
ment" from which he declared the
New Englander hoped to "get some
political advantage."
Knutson Enters Debate.
Represensative Knutson, Republican,
of Minnesota jumped into the give
and-take debate to assert Representa
tive Vinson could make "black look
Administration forces also defeated
two other amendments yesterday. One
by Representative Reed, Republican, of
New York would have encouraged gifts
to endowed colleges by special tax
treatment of revocable trusts.
The other, by Representative Har
lan, Democrat, of Ohio would have
strengthened a provision of existing
law, which imposes penalty taxes on
corporations "improperly accumulating
surplus,” in a way which he said
would make it unnecessary to impose
a surtax on closely-held corporations.
The nomination of Prof. Thurman
W. Arnold of Yale to be assistant at
torney general has been referred to a
Senate committee for study.
Prof. Arnold is the author of “The
Folklore of Capitalism" (published by
the Yale University Press), in which
he developed the thesis that the anti
trust laws have encouraged monopoly
because of ineffectual enforcement.
His Job, if he is confirmed, will be to
direct enforcement of those statutes.
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The Parkers and three oth
ers were indicted today by a
Federal grand jury in New
York under the Lindbergh
Lau\ The indictment con
cerned the alleged kidnaping
of Wendel. whom they said
confessed abducting the Lind
bergh baby.
< Continued From First Page,')
hi* son catch colds, which developed
into double pneumonia, and then de
liberately giving wrong treament. Of
Gorky he said:
"He was a completely ill man, but
his lungs were the worst. KruchkofI
asked me what was bad for Gorky. I
told him long walks, physical exercise,
failure to rest after dinner.
"So he was allowed to walk miles—a
thing he loved so—to work in his gar
den. He also loved fire and flames, so
fires were made in the open air at
night and he was allowed to stand
facing the warmth, having a cold
wind blowing across his back.”
P. P. Bulanoff. another of the ac
cused, long Yagoda's secretary, tes
tified Yagoda wanted to become a
Russian Hitler. He testified that
Yagoda admired Adolf Hitler's rise
from the ranks and thought Hitler's
“Mein Kampf" was "a swell book.”
Yagoda, in a confiding mood, would
say he was going to be chairman of
the people's commissars, equivalent to
premier. But. said BulanofT, Yagoda
was going to make the post supreme,
subordinating to it the secretaryship
of the Communist party, the post in
which Joseph Stalin is Russia's su
preme leader.
Estates’ Plea for Rebate of
$390,000 Fought by U. S.
in High Court.
By the Associated Press.
Government attorneys endeavored
to convince the Supreme Court today
that income tax refunds totaling *360,
000 should not be made to the estates
of Andrew W. Mellon, former Secretary
of the Treasury, and Arthur B. Mellon
of Pittsburgh.
Executors of the two estates won
In the Third Circuit Court of Ap
Refunds were sought on individual
income tax deficiencies paid for 1920
on earnings of two partnerships dis
solved by the death of a partner,
Henry Clay Frick.
V. S. Wins Mitchell Case.
Arguments on the litigation were
called after the court ruled 6 to 1 in
favor of the Government yesterday
in its attempt to collect a *364,454
assessment imposed on Charles E.
Mitchell, former chairman of the Na
tional City Co. of New York, for
“fraud with intent to evade” 1929
income taxes.
Mr. Mitchell contended unsuccess
fully that his acquittal in 1933 on a
criminal charge of fraudulently at
tempting to evade paying a *728.709
tax barred collection of a 50 per cent
In a 5-to-2 decision, the tribunal
specifically overruled previous opin
ions in 1922 and 1932 which had held
that the Federal Government could
not tax Income derived from land
leased from a State and that a State
could not tax Income derived from
land leased from the Federal Govern
Tax Field Broadened.
The decision broadened somewhat
the field of Federal and State taxa
tion, but the extent was undetermined.
Justices Butler and McReynolds, who
dissented, said the opinion constituted
a “sweeping construction of the Con
It involved Federal taxes imposed
on the Mountain Producers Corp. of
Wyoming, based on income from land
leased from the State.
Chief Justice Hughes delivered the
majority decision that reversed the
1932 opinion, in which he had joined.
He was not cn the court in 1922.
Organ Meditations Wednesday.
Lenten organ meditations are being
conducted every Wednesday, from 5
to 5:30 p.m., by H. Jerome Graham,
organist at the Universalist National
Memorial Church, Sixteenth and S
streets N.W. Assistant soloists will be
from the National Capital Choir,
directed by Miss Jessie Masters.
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