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Weather Forecast First in Washington— Rain this afternoon and tonight; mini- ___... mum temperature tonight about 38 First in the news coverage that degrees; tomorrow partly cloudy and builds public confidence—First in 39. at l p.m.; lowest, 35, at 2 a.m. circulation and advertising that . Full report on page A-2. reflect public confidence. Closing New York Markets, Page 22. _ _uF) Meant A»«oci»t«d Pr«««. 87th YEAR. No. 34,610. gAraa_WASHINGTON, D. C., THURSDAY, FEBRUARY 2, 1539-FIFTY-TWO PAGES. ***_ THREE CENTS. President Talks With Committee On Army Needs Arms Bill to Provide $50,000,000 for War Planes BACKGROUND— Disclosure last week that a French agent had been given a ride in a new American military plane led to the present agitation in Congress for a thorough in quiry into the administration’s foreign policy. The White House says it is willing that France buy as many planes in the United States as possible. Objection is made to the secrecy with which the White House proceded in this instance. B> the Associated Press. President Roosevelt and members of a House Appropriations Subcom mittee studied today “world affairs” and “technical developments" in connection with the Army defense program. Mr. Roosevelt conferred for about an hour with Chairman Taylor, Democrat, of Colorado of the full House Appropriations Committee and an eight-member subcommittee headed by Representative Synder, Democrat, of Pennsylvania. The subcommittee has been framing the War bepartment appropriation bill. “We were just talking over the technical details as to the general situation in world affairs and what this committee is considering,” said Mr. Taylor. “It was a very ordinary and friendly discussion of the situation.” Both Representatives Taylor and Snyder said the President did not go into a broad outline of the back ground of foreign policy as he did at the White House meeting Tuesday with the Senate Military Affairs Committee. Mr. Snyder added there was no mention of the sale of planes to Prance. To Provide for Planes. Mr. Roosevelts talk with the Sen ate committee on the purchase of warplanes In this country by dem ocracies aroused a great flurry of debate in Congress on whether the American aviation could supply the Army with 3,000 new planes and fill foreign orders at the same time. Mr. Snyder would not predict when the Army bill would be ready, but said it would carry a provision to make $50,000,000 immediately available to get mass production of planes for our Army under way. This fund was especially requested by the President. The War Department announced today that Brig. Gen. Bartor. K. Yount had taken general charge of the training of several thousand ad ditional flyers needed in expanding the Air Corps. Gen. Yount, former commander of the Air Corps training center in Texas, became chief yesterday of a new training and operations divi sion here. To man the 3,000 or more new war planes for which President Roosevelt asked Congress for funds, the Air Corps plans to add 2.200 of ficers and 1.200 flying cadets, and upwards of 25.000 enlisted men. Denies Fund Used. Secretary Morgenthau. who ad ministers the Treasury's $2,000,000, 000 stabilization fund, denied today it had been used to help France or any other power buy military sup plies or merchandise in this coun try. "directly or indirectly.” He said he hoped the Senate Mili tary Affairs Committee would make public his testimony of last week to show what, if any, help he gave France in buying planes in this Country. The stabilization fund, created out Of the profit on dollar devaluation In 1934, conducts foreign exchange market operations in an effort to Stabilize the dollar in reference to foreign currencies. Mr. Morgenthau Said secrecy was Viecessary to the fund's operations, adding that its usefulness would be lessened by the full publicity advo cated by Senator Lodge. Republican, of Massachusetts and others. He declined to comment directly on a proposal of Senator Lodge for an independent audit of the fund, but said such a resolution would reflect on the integrity of three Treasury employes who audit the fund's accounts every year. More Information Sought. Without identifying the trio, Mr. Morgenthau said each had worked In the Treasury for 27 to 29 years. Meanwhile, Republicans demanded that the Senate Military Affairs Committee summons airplane man ufacturers to clear up the question of whether Army orders and for eign orders both could be handled. Senator Austin, Republican, of Vermont said the five Republican members of the committee wanted first-hand information because this was a vital question in the con troversy over proposed sale of the latest type of military planes to France. The projected sale aroused a stormy debate in the Senate yester day, with critics of the President (See DEFENSE, Page A-3.) Senate Votes $25,000 For T. V. A. Inquiry By the Associated Press. The Senate voted today to provide an additional $25,000 for the congres sional investigation of the Tennessee Valley Authority. At the same time it agreed to ex tend the life of the joint committee to April 1. The committee’s life technically expired when this ses sion began. The House, which will pay half the cost, must act on the extension be fore it becomes effective. Chairman Donahey, Democrat, of Ohio has announced the committee expects to hold no further hearings but must have additional funds and more time to prepare a final report. DOORN, NETHERLANDS—FOURSCORE FOR EX-KAISER— This is the first photo to show the aging Wilhelm of Germany as he celebrated his 80th birthday anniversary in exile. With him is his wife, Princess Hermine. Thirty members of the former ruling family attended a glittering reception January 27. —A. P. Wirephoto. Schmeling Denies Being in Trouble With Nazi Officials Says He Is Willing To Fight Joe Louis Again, and Will Win I Picture on Page A-3.) Fv the Associated Press. NEW YORK. Feb. 2— Max Schmeling, former world heavy weight boxing champion, arrived from Germany today emphatically denying that he or his wife had any trouble with Nazi authorities, or that he had any intention of quit ting the ring. “I'm ready to fight Joe Louis again, but first I want to meet one or two of the leading title con tenders,” he said as he left the Normandie. Schmeling’s hopes of regaining his heavyweight crown were given a decided setback last summer when he was knocked out in 2 minutes and 4 seconds of the first round by Champion Louis. Max said Mike Jacobs had been in touch with him for some time and that he planned to see Jacobs dur ing the, day. He tossed aside with an emphatic “nein” any suggestion that he had been sent to this country by the German government to quiet rumors that all was not well between him and his wife and the Nazi authori ties. Just Came to Say "Hello.” "I just came over to say ‘hello' to my friends here and to pay a little visit,” Schmeling said. “The whole story about my trouble with govern ment leaders was a lot of bunk. And the report that Propaganda Minister Goebbels was beaten up by some friends of an actress is abso lutely silly. "I was never reprimanded or de tained in any way by the Nazi party and I never said I would break Herr Goebbels neck if he paid attention to my wife.” Mrs. Schmeling. Anny Ondra of the German films, couldn't make the trip with Max because she is under contract to start work on a new picture March 1. "But I prom ise I'll bring her along on my next trip.” he pledged. Later, while speaking for the newsreel, the beetle-browed heavy weight refused to make any refer ence to the rumored row with Nazi authorities. Diplomat in Parrying Questions. He parried persistent questions about his reported difficulties like a diplomat. “Why ask me all these things about politics?” he finally demanded. “I’m not a politician. Ask some politician. Things are fine in Ger many now. “You ask me why I came on a French boat (the Normandie). Well, why not? I’ve crossed the ocean 20 times and I did not always come by a German liner.” Max said that although the back injury he suffered when Louis flat tened him last summer is now all healed, he had been under the doctor’s care until only 10 days ago. “I was in the hospital for 14 days after my return to Germany last summer,” he said, “but my spine is all well again now.” “I weigh about 196 now—just a couple of pounds heavier than when I was here last'summer. I’ve been in light training, but have done no sparring. “I want to fight Joe Louis again— and I think I can beat him if J have the chance. I don’t want to quit the ring with a defeat.” Winant Sworn as Head Of World Labor Office By the Associated Press. GENEVA. Feb. 2—Former Gov. John G. Winant of New Hampshire was sworn in today as director of the International Labor Office at the opening of the Governing Com mittee's 86th session. Mr. Winant, who resigned as head of the United States Social Security Board in 1936, was elected to the post June 4, succeeding Harold B. Buoler of England. Ickes Scoffs at U. S. War Peril During Roosevelt Regime Calls Hoover Alarmist; Says Government Is Strong for Peace By NELSON SHEPARD. Secretary7 of Interior Ickes said today he saw no danger of the United States becoming involved in a foreign war "under this admin istration.” The assertion was made during questioning at his weekly press con ference in connection with a state ment made by former President Hoover last night that* the admin istration’s foreign policy threatens to lead this Nation into war. “Mr. Hoover is an alarmist,” Mr. Ickes commented. "His statement is no more than an exaggeration of a good many other similar statements he has made.” Mr. Ickes said he felt inclined to be “considerate, kindly and forbearing toward a heart-broken man.” but suggested that the former President “owes it to the office he filled for four years, if not to the American people, not to misrepresent the present situa tion and become an alarmist when there is no occasion for being one.” Mr. Ickes declined to discuss the general European situation in the face of Hitler's warning to democ racies and the debate at the Capitol over this Government's assurances that it would back the democracies in Great Britain and France. Claiming he is a "man of peace,” Mr. Ickes said there is “no one in this administration, so far as I know who is not ardently in favor of peace.” The secretary’, who recently played an important part in bar ring the sale of United States he lium for German dirigibles, ex plained today the question of dis posing of helium to Poland has not come before him officially. He said he had not been advised as to the attitude of the Munitions Control Board on the question. Acting under a recent congres sional act governing the sale of the non-imflammable gas, Mr. Ickes op posed Its sale to Germany because this Government was not given posi tive assurance the helium would not be diverted to military use. -B ■ . -— Protects Strikebreakers MANILA, Feb. 2 (/Pi.—President Manuel L. Quezon told reporters to day he would afford protection to any man wanting to work, even in the place of a striker. He said strikes were lawful, but often hurt the strikers themselves. The Philippines recently have been the scene of a senes of strikes. Summary of Today's Star Page. Amusements, C-6-7 Comics C-10-11 Editorials __A-12 Financial __\-21 Lost and Found, C.7 Page. Obituary ___A-14 Radio _C-3 Short Story.C-5 Society _B-3 Sports _C-l-3 Women’s Page, C-4 Foreign. * Anatole Deibler, guillotine master, dies in France at 75. Page A-l Vatican disputes Hitler denial of persecution. * Page A-3 Rebel police seize many in Barcelona for aiding foe. Page A-4 Fascist press cites Hoover as foe of Roosevelt policy. Page A-5 Remove Ruling refugees, Japan warns powers. Page A-19 U. S. planes assist evacuation of Chile’s injured. Page B-2 National. Schmeling denies trouble with Nazi Party. Page A-l President calls conference on Army needs. Page A-l House takes up conference report on W. P. A. bill. Page A-l Hoover fears Roosevelt policies may lead to war. Page A-2 Senate to uphold Roberts rejection, critics declare. Page A-3 A. F. of L. seeks tightening of Labor Standards Act. Page A-5 Testimony swings toward "higher ups” in W. P. A. trial. Page A-19 House Adopts W. P. A. Report After Clash a Bill on the Way To the President With Funds Cut By J. A. O LEARY. Congressional action on the $725, 000,000 W. P. A. appropriation *bill was completed this afternoon when the House dropped its fight for a limitation on wage differentials by roll-call vote of 252-to-140. The remainder of tlje conference report, embodying amendments to keep politics oift of relief, had been agreed to earlier without a record vote. When the House receded from the Tarver amendment to place a 25 per cent limit on wage differentials on work projects in different locali ties, the relief measure was ready to go to the White House for sig nature. House action came after a verbal clash between Democrats over the action of both ’Houses in reducing the administration's estimate from $875,000,000. Opponents of the Tarver amend ment construed it as destroying the prevailing wage rate principle now followed by W. P. A. Although the hourly pay rate on work projects is based on the prevailing rate, the number of hours of work of indi viduals is regulated to produce a given monthly security wage for the area in which the work is being car ried on. Southern members, sup porting the Tarver amendment, con tend the wage differentials on .work relief projects are too great between that and other sections of the coun try. Compromise Suggested. In the Senate yesterday, Senator O'Mahoney, Democrat of Wyoming, tried to have the Senate conferees instructed to consider a compromise proposal, because, he said, he be lieved there is grave danger the prevailing wage rule may be seri ously impaired. To indicate this, he said he understood the conferees had almost decided on aasubstitute under i which the new appropriation would not be available after 60 days, unless hourly rates for the same work in areas of the same general type are so fixed as to eliminate as far as possible, consistent with local eco- j nomic conditions, differentials of more than 25 per cent of the maxi mum rates of pay. He argued that the only concession to the prevailing wage rule in that proposal would be the words “con sistent with local economic condi tions.-’ That language, he said, would not preserve the prevailing wage. The Wyoming Senator moved to instruct the Senate conferees to con sider a provision that within 30 days the W. P. A. shall so determine and fix the numbfer of hours per month of workers that the monthly security wage shall not be lower in any area than that paid workers in that same occupation in areas of the same gen eral type within the same security wage region, regardless of variations in county population. His proposal was ruled out of order, with the bill in its present parliamentary status. Wheat-Laden Ship Sinks in Lake Port ^ORT COLBORNE, Ontario. Feb. 2 (Canadian Press(.—The freighter Northton of Colonial Steamships I Limited, with 117.000 bushels of j wheat aboard for storage, sank at \ her berth at the west pier of the : harbor here today. The 2.227-ton vessel started set tling in Lake Erie shortly after mid night. She gradually went lower and by 7 am. her hatches were awash. Two‘hours later she was on the bottom in 30 feet of water. J. O. McKellar of Sarnia Steam ships. Limited, in charge of the ship, said he could give no reason for the sinking. -. m — Soviet-Manchukuoan Border Clash Reported By the Associated Press. TOKIO, Feb. 2—Domei (Japanese ! News Agency) reported today from I Hsinking, capital of Manchukuo, j that a Manchukuo garrison had killed five Soviet Russian soldiers and wounded three in a clash 60 miles northeast of Manchuli. Manchuli, on the northwest border of Manchukuo, is the point at which the railroad across Siberia reaches Manchukuo. Washington and Vicinity. Lawyer challenges Government theory in Warring case. Page A-2 Medical Society loan opens way for prepayment care plan. Page B-l Utilities Commission orders lower electric rates in D. C. Page B-l Representative starts intensive traf fic safety campaign. Page B-l Plan to cut Jobless fund payments to be considerea. Page B-l Editorial and Comment This and That. PageA-12 Answers to Questions. PageA-12 Letters to The Star. PageA-12 David Lawrence. Page A-13 Alsop and Kintner. Page A-13 G. Gould Lincoln. Page A-13 Jay Franklin. Page A-13 Delia Pynchon. Page A-13 Sports. Nats start earliest spring training with 19 recruits. Page C-l Appendicitis blasts Walker's hopes for bowling titles. Page C-2 Gulfstream Park, newest race track, opens auspiciously. Page C-3 Miscellany City News in Brief. Page A-23 After Dark. Page B-8 Vital Statistics. Page B-12 Nature’s Children. Page C-12 Bedtime Story. Page C-10 Cross-Word Puzzle. Page C-lft Letter-Out. Page C-10 Winning Contract. Page C-ll WHATb MAKING N \JHEM SO SNOOTY?; They ve \ JUST BEEN PUT > IN HITLERS HALL op FAME! j Cox Declares Ickes Has Made Dies 'A National Figure’ House Rules Committee In Stormy Session on Reviving 'Isms' Probe By the Associated Press. Representative Cox. Democrat, of Georgia asserted in a stormy House committei'hearing today that Secre tary Ickes’ criticism of Chairman Dies of the House Un-American Committee boomeranged to make the Texas Democrat "an outsanding national figure." Arguing with Representative Hill. Democrat, of Washington before the House Rules Committee. Mr. Cox said the cabinet member "went on the stump to attack Mr. Dies." This, Mr. Cox said, was "perfectly out rageous." Told by Mr. Hill he had no right to criticize Mr. Ickes. Mr. Cox flared: "Why not? He certainly had a right to answer. Whether they meant to or not. they have made Dies an outstanding national fig ure.” Mr. Ickes once called Representa tive Dies an "outstanding zany.” They were then disputing the fair ness of Mr. Dies’ conduct as chair man of the committee investigat ing un-American activities. The Rules Committee is considering re vival of the committee, and House approval of continuing its inquiry was considered a foregone conclu sion on Capitol Hill. Action Likely Today. Action was likely later today, after a closed session to hear Mr. Dies answer various criticism. Representative Dies, meanwhile filed application for admission to practice before the Supreme Court, explaining that he desires to sub mit a brief in the deportation case against Joseph G. Strecker of Hot Springs, Ark., which was brought because of Mr. Strecker's member ship in the Communist party. The case will be heard by the Supreme Court February 9. The committee chairman, a law yer, made the application chiefly be cause Secretary Perkins has said the Supreme Court's decision on Mr. Strecker would determine future steps in deportation proceedings against Harry Bridges, C I. O. iparitiine labor leader. Mr. Dies l»s demanded Mr. Bridges' deporta tion. Representatives Keller, Democrat, of Illinois and Dingell. Democrat, of Michigan criticized the conduct of the Dies inquiry to the Rules Committee yesterday, contending there were political motives* behind the hearings last summer. Murphy Declared Hit. Mr. Dingell declared the testimony had blackened the character of Attorney General Frank Murphy. Mr. Keller said the testimony had defeated Mr. Murphy for re-election as Governor of Michigan, and other wise had assisted the Republican party in Minnesota and California. Representative Keller introduced a resolution in the House asking that a new 11-member group be named to replace Dies’ group. Mr. Keller charged that the latter committee had “violated every fundamental principle and consti tutional right-of American citizens” and held up House members to “scorn and ridicule.” He accused the committee of making "abso lutely no attempt to investigate the credibility or reliability” of wit nesses. Representative Dies clashed fre quently with the witnesses, asking them to “keep tf^p record straight” and not repeat hearsay statements. Senator La Follette Opposes Giving Labor 'Right to Sit Down' B» tbe Associated Press. POUGHKEEPSIE, N. Y„ Feb. 2.—United States Senator Rob ert M. La Follette believes the rights of labor should never be extended to the “right to sit down.’’ After an address before mem bers of a Vassar College forum last night Senator La Follette was asked: “How far do you think the rights of labor should be ex tended?” "Never so far as to Include the right to sit down,” he re plied. MERVEL A. HUTSLER. —Star Staff Photo. Bandit Seizes Truck, Flees With $1,200 In Daring Holdup Robber Deserts Auto Three Blocks From Hot Shoppe Theft An armed bandit escaped with $1,200 in a daring holdup of a truck driver at the A. & W. Hot Shoppe, Fourth street and Florida avenue N.E., during the breakfast rush hour this morning. Mervel A. Hutsler. who was mak ing his daily collection round of the Hot Shoppe chain, was forced at the point of a revolver, just as he was about to get in the truck at the curb, to surrender the machine in which he had eight money bags, each con taining approximately $150. accord ing to police. The holdup man abandoned the truck three blocks from the scene of the robbery after smashing the locked money compartment and taking its contents. Mr. Hutsler said he had come from the Hot Shoppe near Washington Airport, where he picked up five bags of cash, and had made his col lection at the Florida avenue res taurant when he was approached by the bandit, a middle-aged colored man. More than a dozen customers milled in and out of the shop, un mindful that the holdup was in pro gress. “Get in and slip over.’’ the man commanded, brandishing a revolver, “this is a stick-up.” The driver climbed through the cab of the truck and out the other side, but the bandit started the mo tor and drove away. Mr. Hutsler ran to a customer parked nearby and asked him to take up the chase. Despite the fact that the victim urged more speed, the driver of the passenger car insisted on stopping at two stop signs, Mr. Hutsler told police. On reaching Fourth and L streets N.E., they found the truck at the curb and the money missing. Mr. Hutsler told detectives he rec ognized the bandit as a former em ploye of the Florida avenue shop. In a similar holdup at the same restaurant four years ago, Mr. Huts ler was forced to surrender approx imately $300 to two armed youths. They later were captured and con victed. Employes of the chain re called today that the driver also had been the victim of "a third robbery in which he lost more than $2,500. Master of French Guillotine, Who Killed 300, Dies at 75 By the Associated Press. PARIS, Feb. 2.—Anatole Deibler, 75-year-old hereditary high execu tioner of France, died suddenly to day. The aged “Monsieur de Paris,” whose family has given France her executioners since the revolution, col lapsed in a subway station on the outskirts of Paris and died shortly after he reached a hospital. M. Deibler had executed more than 300 men on the guillotine since he inherited the office from his father, Louis Diebler, just before the end of the last century. A mysterious and sinister char acter to most of France, he was in reality a mild old man who always spoke in gentle tones of his gruesome job. He kept entirely to himself, his Gross Income Levy Advocated for District , Representative Schulte Urges Scrapping of Combined Tax Plan Representative Schulte, Democrat, of Indiana today advocated scrap ping the combination income-sales tax feature of the District's proposed new tax program and substitution bf a gross income tax on both in dividuals and corporations. At the same time, the Fiscal Af fairs Subcommittee of the House District Committee postponed, be cause of the absence from Wash ington of its chairman. Representa tive Jack Nichols, Democrat, of Oklahoma a public hearing on the tax program tentatively set for to ; day. The gross income tax. Mr. Schulte ! said, was adopted in Indiana four ! years ago at the suggestion of former i Gov. McNutt and has raised more j revenue than needed, resulting in a surplus which now totals $11, I 000,000. Its Use Urged Here. j Corporations under the Indiana I law. according to Mr. Schulte, are S taxed one-fourth of 1 per cent on gross receipts, and individuals pay 1 per cent on gross receipts in excess of $1,000. "The gross receipts tax is doing marvelous work in Indiana.” Mr. Schulte declared. "And I believe it would solve Washington's tax prob ! lems. It does away with the com ■ plexities of taxation, and in my opinion is an equitable form of taxa ! tion.” As the surplus in tax revenues mounted in Indiana under the gross income tax, Representative Schulte said, real and personal property taxes were reduced and the State adopted a plan of contributing $600 a year toward the salary of every public school teacher. To Go Before Subcommittee. Representative Schulte is a mem ber of the House District Commit tee. but he is not serving on its Fiscal Affairs Subcommittee, which will write the new tax legislation. He said, however, he expected to appear before the Fiscal Affairs Subcommittee during hearings on the tax program and urge sub stitution of the Indiana gross in come tax for the proposed combina tion sales and personal income tax. ---. Russia Will Close Budapest Legation By the Associated Press. MOSCOW, Feb. 2.—Tass. official Soviet news agency, announced to day that Foreign Commissar Maxim Litvinoff had informed the Hun garian minister that Russia had decided to close its Legation in Bud apest and expected that the Hun garian Legation in Moscow also would be closed. Tass said that it “learned from competent sources’’ that this deci sion of the Soviet government was connected with “the fact that as a 'result of the Munich agreement Hungary lately has been subjected to strong pressure from certain states.” “The policy of the Hungarian government.” Tass continued, "shows that it easily yields to this pressure and has lost its independence to a considerable degree.” family and a close circle of friends. Although said to be a millionaire in francs, he made such a fetish of privacy that he refused to have any servants in his home, which he al ways kept shuttered. Even delivery boys were not allowed to enter. Always in traveling about France with his three assistants he used a private train compartment, the shades of which he usually kept drawn. Invariably he traveled un der an assumed name. For many years one of Deibler’s great sorrows was that no one in the family was willing to take over the functions of executioner. In 1936, however, he persuaded his nephew, Andre Obrecht, to accept the re sponsibility of keeping the Job in the family. Townsend Plan Is Denounced by Ex-Sponsor Sheppard of California Tells House Group He Quit Organization BACKGROUND— President Roosevelt recently suggested Congress extend and liberalize Social Security Act on basis of experience in its opera tion since enactment in 1935. House Ways and Means Commit tee started hearings yesterday on Social Security Board's proposals for changes, and all other pro posals for giving greater security to aged. By GARNETT D. HORNER. Representative Sheppard, Demo crat, of California told the House Ways and Means Committee today he was "washed up" with the Town sent old-age pension organization because he did not believe it was functioning on an "honest basis.” "When Townsend speakers kept telling the old people that they were going to get them $200 a month and their own bill did not provide for that," Mr. Sheppard said, "I just couldn't take it any more.” Mr. Sheppard, who introduced the Townsend bill in the House at the last session of Congress, appeared before the committee to urge ap proval of a new measure sponsored by the General Welfare Federation of America, whose congressional Steering Committee he heads. Called the "General Welfare Act,” it would provide a 2 per cent tax on gross incomes of more than $100 a month to finance pro rata pensions of from $30 to $60 a month for all Americans over 60 years old. Origin of Bill's Title. Chairman Doughton asked Mr. Sheppard how his bill get its title, pointing out the Townsend organ ization also called its measure a General Welfare Act. Mr. Sheppard said the title was originated by Arthur Johnson, legislative secretary of the General Welfare Federation, who formerly worked for the Town send movement. Then Mr. Doughton asked, “Would you mind giving us the reason for the divorce, if any. between yourself and the Townsend outfit?" Mr. Sheppard replied: “My reason for leaving the Town send organization was predicated upon the conduct of its national leader and many of its officers. The organization was not functioning on what I considered as an honest basis.” Asked to explain more fully what he meant by his charges of the lack of an “honest basis,” Mr. Sheppard referred to transposition of pages in the minute book of the organization to give what he termed a false im pression and to what he described as false hopes held out for the elderly people who w’ere contribut ing their dimes and quarters. Called Embarrassing. In addition, Mr. Sheppard said, ‘‘the general conduct of the leader (Dr. Francis E. Townsend) was of such a character that it was em barrassing to us members of Con gress who were diligently trying to accomplish something for our senior citizens." “We called Dr. Townsend to a conference," he added, “to see if we couldn't get some amendments added to the bill that would make it more reasonable and acceptable to Congress. “The good doctor refused to do that. In the next issue of the Townsend weekly, he gave us Con gressmen plenty of hades for calling such a meeting without his per mission. "Things went from bad to worse. We called another conference and tried to talk to him. "In response to an inquiry about the $200 a month question asking why he did not have his national speakers confine themselves to the facts. Dr. Townsend said: “ ‘You fellows have heard that old saw about whisk a straw’ in front of an ox, haven't you? Well, that's the purpose of the $200.' Townsend’s Attitude. “I said, 'Is that your attitude about this whole legislation?’ He said, ‘Yes.’ "Then I said I was all washed up with his outfit.” Mr. Sheppard evoked laughter from the committee members and spectators by reading from what he said was a recent issue of the Town send weekly, claiming remarkable progress for the Townsend move ment in Congress because its bill in the Seventy-fourth Congress was numbered “H. R. 7154" and in the present Congress is known as "H. R. 2.” Mr. Sheppard quoted the article as saying this means "we are now close to the top of the heap of the thousands of bills introduced in Con gress.” Chairman Doughton interrupted with a chuckle to say, “It would ap pear Dr. Townsend has made nom inal progress.” Chairman Doughton asked Mr. Sheppard if he thought tnc article (See SECURITY, Page A-4.) Wood Resigns Post On District Committee Representative Wood, Democrat, of Missouri, resigned today as a member of the House District Com mittee. He gave as his reason the pressure of business on two other committees on which he serves— War Claims and Labor. A member of the District Com mittee for four years. Mr. Wood has taken an active part in all labor and somal legislation it has con sidered. A week ago. Chairman Randolph selected him to head die Public Utilities Subcommittee for the present Congress. Mr. Wood’s resignation created the first vacancy that has occurred on the committee since its organi zation two weeks ago.