Evening star. [volume], May 09, 1940, Image 1

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

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Partly cloudy and continued cool to- ^-vLii ; eg?-.-—, m ., u „ ^
night and tomorrow; lowest tonight rnim rmi TO nOinf • f > '-■ . ■ »■:
about 48; moderate winds. Temperatures fgf; ’ ' Within th* Haur*
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Closing New York Markets-Soles, Poge 20_ ^ M„n, Aitociat(d PrM
88th YEAR. No. 35,072._WASHINGTON, D. C., THURSDAY, MAY 9, 1940—FIFTY-FOUR PAGES. *** THREE CENTS.
Chamberlain, Refusing to Quit,
Confers With Chief Critics as
Commons Adjourns Till May 21
X
r Lloyd George Scored
For Aiding Hitler
With Criticism
BRITISH SEIZURE OP Narvik
would give allies valuable base as
well as needed moral victory.
Page A-4
ALLIED-SOVIET AXIS to guard
Yugoslavs seen in Belgrade; mili
tary mission to go to Moscow soon
for consultations. Page A-15
BULLETIN.
BERLIN, May 9 (A*).—The Ger
man Army has taken command
of the country’s railroads over
the Whitsunday holiday period
this week end, exerting rigorous
control over all civilian traffic, it
was reported reliably tonight.
Lt. Col. Bork, transport chief
of the German central staff, is in
charge of the railways during
the period.
For days the press has been
nrging Germans not to travel over
the holiday. Now, placards in
stations notify travelers that
regular train schedules cannot be
guaranteed.
PARIS, May 9 UP).—Important
changes in the French cabinet
were reported under considera
tion tonight as a result of the
failure of the allied campaign in
Central Norway. Reports in
political circles said Premier Paul
Reynaud might change his min
istry even before the Chamber
of Deputies reassembles next
Thursday after a two - week
spring vacation.
By the Associated Press.
LONDON, May 9—The House of
Commons recessed today until May
21, leaving the Chamberlain gov
ernment apparently determined to
remain in office on the strength of
last night’s slim margin on a vote
of confidence. The House of Lords
already has adjourned until that
date.
The Commons rose after David
Lloyd George, critic of the Prime
Minister, had defended himself
against a charge that, by demand
ing Mr. Chamberlain's resignation,
he had encouraged Hitler.
Mr. Chamberlain, members of his
war cabinet and opposition leaders
were reported in secret consultations.
Geoffrey Mander, a left-winger, said
the talks were to decide whether
“by getting rid of the chancellor
of the exchequer and the secretary
for air, the Prime Minister might
be allowed to carry on with partially
fresh colleagues.”
Mander told the House that this,
in his opinion, would be “perfectly
useless.”
Sir John Simon Chancellor of the
Exchecquer, and Sir Samuel Hoare,
Air Minister, have been under at
tack from the opposition, along with
Mr. Chamberlain.
Lloyd George Urged to Reform.
Beverley Baxter, a Conservative
Member of Parliament, journalist
and author, was the man who as
sailed Lloyd George for “helping”
Hitler. Mr. Baxter urged him to
“reform so that his genius and in
domitable spirit may be used in the
future conduct of the war.”
Lloyd George replied that Brit
ain was to blame for Hitler's rise to
power and that since 1922 he ‘Lloyd
George) had been urging the World
War victors to exert their authority
and carry out the pledges they made
In the treaty of Versailles.
“They had the opportunity,” he
•aid. “Germany was prostrate and
the creation of this terrible power
in Germany and the spirit behind it
which makes it so formidable is due
to the fact that we did not carry
out our promises.”
Richard K. Law, son of Bonar
Law, put in another plea for new
leadership before the recess.
He said Mr. Chamberlain was like
H. H. Asquith, part-time World War
premier: Able and loyal, but not the
man for war.
Debate on Adjournment.
The conferences developed sud
denly jvhile the House of Commons
debated a government motion to
adjourn for the regular Whitsuntide
holiday until May 21 and while the
nation speculated whether the
Chamberlain government might re
sign or undergo reconstruction.
After a whispered consultation
among Government leaders on the
front bench in the House of Com
mons, the badgered Chamberlain
left with the seven men who form
his war cabinet.
Only a short time later they were
followed out of the chamber by the
leader and deputy leader of the offi
cial opposition, Laborites Clement
Attlee and Arthur Greenwood, the
leader of the opposition Liberals,
Sir Archibald Sinclair, and sharp
tongued Lloyd-George, elder states
man and Prime Minister in the
World War.
Their departure provoked specu
lation whether they were to take
part in a war cabinet conference re
garding possible entry into a broad,
coalition government.
Majority Cut to 81.
The general feeling in the coun
try was that either Mr. Chamber
lain must reconstruct the govern
ment or resign. He emerged last
night from two days of debate of
the war, particularly in Norway,
with a majority of 81 votes—281 to
200—compared with his normal ma
jority of 210.
Mr. Chamberlain indicated he does
not intend to resign, at least im
mediately, when he announced he
would be willing to arrange a House
of Commons debate on conduct of
the war two weeks hence, after the
recess, “if events should make it
desirable.”
The statement was made to Mr.
Attlee.
Replying to critics of a parlia
(See CHAMBERLAIN, Page A-3.)
r " ■ ■
Mussolini Says Italy Awaits
New Developments in War
'Only Facts' Will End His Silence on Course
Nation Will Take, He Tells Audience
By the Associated Press.
ROME, May 9.—Premier Mussolini
today told his Fascist followers
celebrating army and empire day
that "only facts” would break his
self-imposed silence on the Euro
pean war.
II Duce thus indicated clearly to
his hearers massed under his
Palazzo Venezia balcony that Italy's
non-belligerency remained without
change until some new development
in Europe’s conflict plunged this
country into war.
Mussolini referred to the declara
tion of the Italian empire four years
ago.
“A great day in the history of our
country was that of May 9, 1936,”
Mussolini said.
"After my speeches you must be
come accustomed also to my silence.
Only facts will break it.”
Allies’ Defeat Seen.
Mussolini's brief statement was
drawn from him by the crowd under
his balcony, which kept calling, “The
Mediterranean for us,” and asking
for a speech.
II Duce appeared three times on
the balcony, smilingly shook his
head and placed a Anger on his lips,
which formed the word “No.” It was
only at his fourth appearance that
he spoke.
While Mussolini was addressing
his followers. Fascist authorities in-’
dicated that Italy still is on the
fence waiting the right moment to
Release of Norse
To Return Home
Ordered by Hitler
Decree Sent Commander
Cites Humane Treatment
Of Captured Nazis
By the Associated Press.
BERLIN, May 9.—Reichsfuehrer
Adolf Hitler issued an order today
declaring, “I have decided to per
mit Norwegian soldiers who were
taken prisoner to return home.”
Hitler’s order was issued to Gen.
Nicolaus von Falkenhorst as com
mander of the German Expedition
ary Force in Norway.
The text follows:
“Contrary to the will of the Ger
man people and its government,
King Haakon of Norway and his
cabinet urged war against Ger
many.
“In this struggle the following
facts could be determined:
“During the war in the East, Ger
man soldiers who had the misfor
tune to fall into Polish hands,
wounded or unwounded, were mal
treated in the crudest manner by
the Poles and were massacred to
death.
“In contradistinction, it must be
stated concerning the Norwegian
Army that there was not a single
case manifested of such shameful
perversion in the conduct of war.
“The Norwegian soldier despised
all cowardly and unfair methods
such as were the order of the day
with the Poles. He fought openly
and honestly and treated, respected
and cared for our wounded and
prisoners in the best manner pos
sible to him.
"I have, therefore, decided to per
mit Norwegian soldiers who were
taken prisoner to return home.
“Professional (Norwegian) soldiers
alone must be kept under arrest
until the former Norwegian govern
ment has withdrawn its appeal to
fight againt Germany or until offi
cers and soldiers individually obli
gate themselves by solemn word of
honor under no circumstances to
participate in further combative
action against Germany.”
Turkey Denies Martial Law
ANKARA, MAY 9 (/F).—‘Turkish
officials today denied a German
radio report last night that Turkey
had proclaimed martial law. (The
report was intercepted in New York
by C. B. S.)
Summary of Today's Star
Page.
Amusements,
C-2-3
Comics ...C-6-7
Editorials. A 1011
Finance __.A-19
Lost, Found.D-4
Page.
Obituary __A-12
Radio_C-6
Society _B-3
Sports _D-l-3
Woman’s Page,
C-4
Foreign
Chamberlain confers with critics as
Commons adjourns. Page A-l
Britain brings total potential army
to 4,500,000. Page A-l
Hitler orders Norse captured in war
to be released. Page A-l
German troops reported dropped
from air near Narvik. Page A-2
Narvik valuable to allies, MaJ. Eliot
molds. Page A-«
National
Hopson indicted for mail fraud by
United States jury. Page A-l
C. A. A. shift would end "confu
sion,” Senators told. Page A-l
Walsh would empower Navy to re
place obsolete drips. Page A-2
‘ Export subsidy program to cut com
surpluses announced. Page A-21
Washington and Vicinity
D. C. bill increased $1,406,624 by Sen
ate subcommittee. Page A-l
h >
C. L. u. disputes Trade Board on
McGehee plan. Page A-4
Six local bills approved by Senate
D. C. Committee. Page B-l
Editorial and Comment
This and That. Page A-10
Answers to Questions. Page A-10
Letters to The Star. Page A-10
David Lawrence. PageA-11
Alsop and Kintner. PageA-11
G. Gould Lincoln. Page A-ll
Jay Franklin. PageA-11
Constantine Brown. Page A-ll
Sports
Preakness is likely to have only
starters Saturday. Page D-l
Five bowling records set by three in
tourney. Page D-2
Blozis of Hoyas only Easterner to
top in track. Page D-3
Miscellany
Letter Out. Page C-fl
Bedtime Story. Page C-0
Winning Contract. Page C-0
Uncle Bay’s Comer. Page C-1
Crossword Puzzle. Page C-1
Service Orders. Page D-l
Vital Statistics. Page D-l
Serial Stonr. Pace D-4
9
A
jump in and get what she wants
in prestige and more living space.
Associates of Premier Mussolini
emphasized that Italian prepared
ness for war did not mean neces
sarily that Italy was entering the
conflict soon.
Arms Always Ready.
“Our army is under arms, but
nobody can or must draw arbitrary
or dangerous deductions from this
attitude,” said the newspaper 11
Messagero. "Our arms are always
ready to be shouldered at any mo
ment interests of the country re
quire.”
11 Popolo di Roma Indicated that
Italian interests eventually would
require it, saying “the idea of be
ing able to presere one's own peace
with the most clever and Pilate-like
conduct can be for the present non
belligerents a dangerous delusion.”
None should delude themselves
that any country which stays out
of the war will be able to make its
voice heard afterward as the Ital
ians intend to do. the paper added.
With Italy’s course dependent
chiefly on relations with Britain,
Italians watched the fate of British
Prime Minister Chamberlain’s gov
ernment and expressed belief it
was beaten in Parliament despite
the fact it won a narrow majority.
Mr. Chamberlain, “engaged in
impossible defense, thought himself
justified in involving other persons
and bodies, thus aggravating the
(See MUSSOLINI, Page A-4.)
King's Order Brings
Britain's Potential
Army to 4,500,000
Men Aged 27 to 36 Made
Liable to Service
By Proclamation
By the Associated Press.
LONDON, May 9 —King George
today signed a proclamation making
men from 27 to 36 years old liable
to military service and bringing Brit*
ain's total of those subject to call
to an estimated 2.500,000.
With the 2,000,000 soon to be under
arms, the proclamation brings Brit
ain’s potential war strength of
4,500,000 men.
The last proclamation, issued Jan
uary 1, had rendered men from 2C
to 27 subject to service.
The 27-year age group is sched
uled to register May 25 making the
total already called to the colors
approximately 2,000,000.
The King's new order affects men
born between May 10, 1903, and
May 9, 1921, inclusive.
The proclamation also enabled the
government to call up 19-year-olds,
though they will not be required to
register unless they reach 20 in the
next few months.
It was expected that one age
group, on an ascending scale, would
be called each month unless circum
stances require registration of more
than that number a month.
Exemptions for men in vital in
dustries and for conscientious ob
jectors undoubtedly will cut the total
number of those actually available
for service.
The number of men available de
creases in the higher age groups be
cause from the age of 30 upwards
the schedule of reserved occupations,
such as in textiles and construction,
take an increasing toll.
The number of deliberate evasions
of military service in previous call
ups was reported “comparatively
small,” and the ratio of conscientious
objectors has fallen.
Mexico City Maneuvers
Will Test Defenses
By the Associated Press.
MEXICO CITY, May 9.—Eleven
days of military maneuvers to test
the defenses of Mexico City and
recently acquired tanks, anti-tank
guns and anti-aircraft artillery will
be started Saturday, the department
of national defense announced to
day.
District Bill
is Increased
$1,406,624
Senate Subcommittee
Report Envisons No
Realty Tax Boost
Increased $1,406,624 above the
House approved total of $48,291,717,
the revised 1941 District appropria
tion bill will be reported this after
noon to the Senate Appropriations
Committee.
The changes and additions, made
by the Senate subcommittee headed
by Senator Overton, Democrat, of
Louisiana upset a number of House
plans and provide for more generous
treatment of the public schools, and
particularly those municipal agencies
that deal with the poor, the sick
and the indigent.
The subcommittee also went a
step in advance of the House and
wrote into the bill new provisions
calling for two far-reaching surveys
—one looking toward possible estab
lishment of municipally owned and
operated automobile parking sta
tions; the other designed to develop
a comprehensive five-year program
of Capital improvements that would
anticipate the District’s future needs
through the 1947 fiscal year.
Senator Overton said assurance
had been given by Maj. Daniel J.
Donovan, auditor and budget officer,
that the increases recommended in
the House bill by his subcommittee
would not put the District in the
red at the close of the coming fiscal
year, thus removing a specter of a
higher real estate tax.
Provides for New Sites.
Appreciating the need for addi
tional school facilities, the subcom
mittee added $308,350 to the House
bill for the purchase of three sites
and the preparation of plans for
three new buildings that would result
in consolidation of nine existing
elementary schools. This program
contemplates the combination of the
Cranch, Tyler and Van Ness Schools;
the Moore and Twining Schools and
the Brent, Dent, Lenox and French
Schools.
The subcommittee also eliminated
from the House bill a legislative
rider that would force all non
resident pupils to pay tuition, and
inserted an item providing $30,000
for preparation of plans for a new
building to replace the Wilson
Teachers' College, stipulating it
should be erected on a District
owned site at Thirteenth and Upshur
streets N.W.
The House bill designated the
property at Thirteenth and Upshur
streets as a site for the new Abbott
Vocational School, but the Senate
subcommittee decreed it should be
located in Brentwood Park.
To the appropriations approved by
the House for Gallinger Hospital,
the Senate subcommittee added
$39,620 to provide for 24 additional
employes—10 nurses, 10 attendants
and 4 laboratory technicians. And
as a substitute for the House plan
to segregate delinquent from non
delinquent children in the Children's
Receiving Home by placing the non
dehnquents in foster homes, the
subcommittee added $3,675 to the
bill to begin construction of a new
receiving home on land now owned
by the District, fixing the limit of
cost at $75,000.
Other Additions.
Other additions made to the
House bill include:
1— An item of $47,500 to pay the
salaries of 25 additional policemen.
2— An increase of $30,130 in the
appropriation for the Health De
partment to provide for eight addi
tional general public health nurses
and to equip two dental clinics and
provide for two dentists and one
dental assistant in the Southwest
Public Health Center.
3— An item of $4,500 for installa
tion of an elevator in the Southwest
Public Health Center and one in the
Children’s Building at Gallinger
Hospital.
4— An increase of $15,000 for old
age assistance so that pensions for
the needy blind can be raised from
$30 to $40 a month.
Increase for Handicapped Children.
5— An increase from $15,000 to
$22,400 for the education of handi
capped children, with a provision
stipulating that the teachers shall
be drawn from the personnel of the
public schools.
6— An increase from $25,000 to
$30,000 for original stocking of the
Southwest Branch of the Public
Library in the Jefferson Junior
High School.
7— An item of $75,000 for construc
tion of a new refuse incinerator in
the industrial zone of the Northwest
section north of New York avenue.
8— An item of $20,000 for construc
tion of a wall around the District
Jail.
9— An item of $25,000 for construc
tion of a new bakery at the Dis
trict Reformatory at Lorton, Va.
10— An increase from $900,000 to
$1,000,000 for public assistance to
provide additional help for admin
istration of the food-stamp plan for
distribution of 5-cent milk and
Federal surplus commodities to re
lief clients.
11— An item of $150,000 for pur
chase of food stamps from the
Federal Surplus Commodities Corp.
to be expended under regulations
(See D. C. BILL, Page A-12.)
Boos for Hitler Start
2 New York Free-for-Alls
By the Associated Press.
NEW YORK, May 4.—Pro and
anti-Hitler sentiment precipitated
free-for-alls at two spots on Broad
way last night—one a newsreel
theater and the other the Columbus
Circle soapbox forum.
At Columbus Circle an orator
praised Hitler, a woman objected, a
man spectator kicked her, and all
three were arrested after many of
200 spectators pitched into the fray.
At the newsreel theater two men
of Swedish extraction booed Hitler.
A lawyer and a salesman objected,
about 20 other persons joined in the
rumpus, and the two men of Swedish
extraction were locked up on a
Charge of disorderly conduct.
* fa
The Lion Tomer
Congressmen See
Army Test Two Rifles
And Submachine Gun
No Conclusions Reached;
Thomas Is a Casualty,
Lundeen a Hero
By FRED H. MORHART, Jr.,
Star Staff Correspondent.
FORT BEL VOIR, Va„ May 8.—
More than 20 Senators, Representa
tives and ranking Army officers to
day tested the relative mer.ts of
the Garand and Johnson semi-au
tomatic rifles on a 300-yard rifle
range at this Army post, but no
definite conclusions were reached.
In the final rapid-fire perform
ance the Garand outshot the John*
son. Operated by Capt. Rothwell
Brown. 28th Infantry, the Garand
delivered 160 shots in eight and one
half minutes at rapid fire at 600
yards.
The Johnson took one minute
longer for the same number of
rounds. There were three failures
by the Johnson during this test. It
was explained that they were the
result of the failure of the bolt to
lock, thus putting the gun tempo
rarily out of commission. The gun
was fired by John Morrissey of the
7th Regiment, New York National
Guard.
In the first test, firing 48 rounds
in three minutes, the Johnson shoul
der weapon scored 11 points higher
than the Army’s new piece. The
Johnson score was 404, the Garand
383. In the same round the Thomp
son submachine gun, firing above its
normal range, scored 234 points.
However, in the second round of
48 shots the Garand scored 405
points, against the Johnson’s 348.
The Thompson trailed with 253
points.
Thomas’ Fingers Burnt.
The only casualty of the demon
stration was Senator Elmer Thomas,
Democrat, of Oklahoma, who suf
fered burnt fingers when he grasped
the barrel of a Garand rifle immed
iately after it came off the firing
line. Though he did not drop the
gun, Senator Thomas juggled it and
whistled in pain.
Nevertheless he pronounced the
Garand rifle an effective field piece.
Senator Ernest Lundeen, Farmer
Labor, of Minnesota proved the hero
of the day when he made a perfect
score of eight bull’s-eyes out of eight
rounds fired. He used the Garand
rifle in that test, and later declared
it a shoulder weapon worthy of the
Army.
In today’s demonstration both
long-range and short-range ammu
nition was used. Observers noticed
that the six Army riflemen demon
strating fired low. However, the
scores were called gratifying for all
three weapons tested.
Johnson Recoil Stronger.
It was noted that the Johnson gun
seemed to have a stronger recoil
than the Garand. On several occa
sions it nearly knocked the hats off
the riflemen. The Garand jolted
the entire body of the gunners to
a much lesser degree, being notice
able only as far down as the hips.
There was practically no noticeable
recoil from the Thompson sub
machine gun. The Johnson rifle
made considerably more noise than
the Garand. With a silencer, the
Thompson gun made practically no
noise at all.
Subject of much controversy re
cently, the Garand rifle is being de
livered at the rate of 200 a day to
the Army from the Springfield
Arsenal. Already more than 37,000
pieces have been placed in the hands
of Army troops. Most of these are
now undergoing intensive field serv
ice in the Southern maneuvers.
Basic Principles Contrasted.
Fundamentally, today's demon
stration was a contrast of two basic
principles of rifle design, the Garand
representing the gas-operated piece
and the Johnson representing the
mechanical recoil system. The
Thompson submachine gun, it was
said, was included in the demon
stration to show its short range
usage in tank, armored car and
motorcycle operations.
An interesting feature was brought
out in the discussion about the
Garand, when it developed that
Vice President Garner used one of
the rifles during the last deer
hunting season in Texas. After
using it in the Held during the
November-December season he was
reported to have expressed delight
with its quality.
Last U. S. Freighter
Reported at Bergen
By the Associated Pres*.
The American freighter Charles
R. McCormick, last American ves
sel remaining in Norwegian waters,
was reported today to be at Bergen,
Norway.
Information to this effect has
reached the State Department from
the German naval commander in
Norway.
Three ships were in Norwegian
waters at the time of the German
invasion. The Plying Pish and Mor
macsea have returned to the United
States, but the State Department
and the owners have reported great
difficulty in communicating with
the Charles R. McCormick. Today's
information said the vessel arrived
at Bergen April 8.
House Unit Approves
$975,000,000 Fund
For W. P. A.
Authority for 8 Months
Spending Requested
By President
By the Associated Press.
A House Appropriations Subcom
mittee was reported today to have
approved President Roosevelt's re
quest for authority to spend $975,
000,000 for the W. P. A. in the eight
months starting July 1.
The relief bill, carrying funds for
the Farm Security Administration
as weli as the W. P. A., will be rec
ommended to the full Appropriations
Committee Wednesday, and admin
istration leaders said it was planned
to have the House begin considera
tion of the measure the following
day.
Critics of the proposal to make the
full W. P. A. fund available for ex
penditure in as few as eight months
have contended it was tantamount
to boosting the relief appropriation
to $1,500,000,000 for the full year.
Advocates have said that the money
would not be spent in eight months,
unless the relief situation de
manded it.
D. C. Dealer, One Other
Plead Guilty in '35 Murder
By the Associated Press.
PHILADELPHIA, May 9.—Santo
Ruggerio, 31, of Astoria, N. Y., and
John A. Lagana, 31, Washington
produce dealer, pleaded guilty today
to charges of murder in the strang
ulation five years ago of an elder
ly Philadelphia housekeeper, who
would not disclose the hiding place
of valuables in her employer’s
apartment.
Two others, Joseph Ouida, 48, and
his wife, Helen, also charged with
murder, appeared before three
judges of Quarter Sessions Court,
but were permitted to make their
own pleas later.
Mrs. Effle H. Smith, 58, of Wash
ington is a fifth defendant in the
robbery-slaying of 61-year-old Miss
Winifred Flannery, but did not ap
pear at the arraignment.
Committee Quorum Again
Lacking on D. C. Jobless Aid
For the second time this week the
House District Committee today de
layed final action on a compromise
plan for liberalizing the local un
employment compensation law be
cause of the lack of a quorum. A
third attempt will be made to agree
on the form the legislation should
take at a special meeting tomorrow
at 10 am.
The committee Monday discussed
for nearly an hour the revised Mc
Gehee bill for amending the exist
ing act and decided a vote could not
be taken because a quorum was not
present. A special meeting was
then called for this morning, but
again a quorum was lacking and
the committee adjourned without
even considering the proposed leg
islation.
There are 31 members of the
committee and a majority consti
tutes a quorum. Only eight ap
peared for the special seeslon this
morning. Some of them held prox
Transfer of C. A. A.
Would End Confusion,
Budget Head Testifies
Senators Told Transfer
Would Keep Regulatory
Independence of Unit
By the Associated Press.
Budget Director Harold D. Smith
declared today that merger of the
Civil Aeronautics Authority into the
Commerce Department, as proposed
in President Roosevelt's contested
fourth reorganization plan, would
eliminate existing “functional con
fusion” in the C. A. A.
Testifying before the Senate Re
organization Committee, Mr. Smith
said that the shift would “continue
the independence of the regulatory
and accident investigation func
tions” now carried on by the C. A. A.
Board and the Air Safety Board.
The reorganization plan, already
disapproved by the House, would
abolish the Air Safety Board and
lodge its functions in the five-mem
ber Civil Aeronautics Board.
Mr. 8mith declared that work of
the 8afety Board, the Aeronautics
Board and the C. A. A. administra
tor now overlaps, resulting in con
fusion.
The Safety Board, he said, “can
make only a limited contribution to
air safety” as it now stands. More
over, he argued, transfer of its
duties to the Civil Aeronautics Board
involved a guarantee that the board
would make “independent investi
gations of aircraft accident.”
Senator McCarran, Democrat, of
Nevada dropped his efforts to ob
tain immediate Senate disapproval
of the reorganization plan and
agreed to wait until after the Re
organization Committee completes
hearings tomorrow.
At today’s session. Senator Byrd,
Democrat, of Virginia asked Mr.
Smith how much would be saved by
the aviation shift and the budget
chief estimated $220,000 annually.
Other features of the reorganization
plan, Mr. Smith estimated, would
bring additional savings of $80,000
a year.
The White House indicated today
that a strict hands-off policy is be
ing followed with regard to con
gressional handling of the reorgan
ization proposal.
Stephen T. Early, secretary to the
President, said the Senate decision
is being awaited and that no com
ment on the House action was con
templated. He indicated some op
timism, however, by adding: “While
there’s life, there’s hope.”
Senator Byrnes, Democrat, of
(See CONGRESS, Page A-3.)
Sweden to Seek Trode
Agreement With Soviet
By the Associated Press.
STOCKHOLM, May 9.—The news
paper Social Demokraten announced
today that a Swedish trade delega
tion was preparing to go to Moscow
to negotiate large scale exchanges
of raw materials and manufactured
goods with Soviet Russia.
Swedish-German commercial ne
gotiations already are in progress
in Berlin.
ies for the absentees, but there was
objection to their use.
Among those absent were Chair
man Randolph, who is in West Vir
ginia campaigning for renomination
in the State’s primary election next
week, and Representative Kennedy,
Democrat, of Maryland, ranking ma
jority member, who was defeated for
renomination in the Free State’s pri
mary election Monday by a narrow
margin of 98 votes.
It had been Chairman Randolph’s
hope that the full committee could
agree this week on some form of
legislation to revise the unemploy
ment compensation law so a bill
could be considered in the House
Monday, the first District day of the
month. Unless the committee reaches
an agreement tomorrow, House con
sideration of the legislation will be
delayed for another two weeks.
Proposed changes in the existing
law call for a reduction in the pay
roll tax of employers from 3 to 3.7
per cent and an increase in benefits
tq the jobless.
1
Hopson Indicted
On $20,000,000
Fraud Charge
Associated Gas Chief,
3 Aides Accused of
Mulcting Investors
BACKGROUND—
Howard C. Hopson, who mush
roomed a 17,000,000 utilities sys
tem into a 1900,000,000 empire
between 1922 and 1929, first came
into public eye as an elusive wit
ness before rival congressional
committees investigating utility
lobbying in 1935. He was again
a balky witness at S. E. C. hear
ings in 1938. Associated Gas &
Electric is noio being reorganized
under the Utilities Holding Com
pany Act. Tax leihs totaling 82,
664$64 were filed against Hopson
and several companies in the
system in February.
(Pictures on Page A-3.)
Bt the Associated Press.
NEW YORK. May 9.—Howard C.
Hopson, one of the founders of the
vast Associated Gas & Electric Sys
tem, was indicted today by a Federal
grand jury for making allegedly
unlawful profits in excess of $20,
000,000 in securities of the business.
Indicted with the one-time book
keeper who ran borrowed thousands
into billions were Charles M. Travis
and Garrett A. Brownback. lawyers
for the system and Frederick S. Bur
roughs, former banker for the sys
tem and since 1932 a principal offi
cer of the Associated company.
The indictment alleges the four
men committed mail fraud and
conspired to defraud the investing
public, generally, and holders of se
curities of the Associated system
subsidiaries in particular.
The alleged conspiracy, the in
dictment recited, began in 1922, the
year Mr. Hopson purchased, with
borrowed money, the old Associated
Gas <fc Electric Co. of New York.
Charged With Aiding Frand.
The true bill charged that the two
lawyers aided Mr. Hopson in the
alleged fraud and that Mr. Bur
roughs assisted in financing the
Associated Gas & Electric Co. in the
issuance of certain securities which
were used by Mr. Hopson to derive
fraudulent profits.
jjot. uurrougns was charged also
with having aided Mr. Hopson in
“covering up” frauds and in avoid
ing an accounting of the profits.
The indictment followed a grand
Jury investigation which Attorney
General Jackson last February au
thorized Hugh A. Fulton, executive
assistant to United States Attorney
John T. Cahill, to conduct as a spe
cie) assistant to the Attorney Gen
eral
It contains 18 counts of mail
fraud, on each of which each de
fendant if convicted would be liable
to five years in prison and a $2,000
fine. It also has one conspiracy
count with a maximum penalty on
conviction of two years’ imprison
ment and a $10,000 fine—a total pos
sibility of 92 years and fines totaling
$48,000 each.
More Than 300,000 Investors.
Mr. Fulton asserted that Mr. Hop
son and John I. Mange obtained
control of the Associated Gas and
Electric Co. of New York in 1922
through the purchase of a majority
of the common voting stock for
$300,000, mostly borrowed. The As
sociated then controlled less than
$7,000,000 of utility properties, chief*
ly in Central New York, near Ithaca.
Within two years, Mr. Fulton said,
Mr. Hopson wrote up the value of
the company's assets and caused
dividends to be declared which more
than repaid the amount originally
invested to acquire control.
Currently, Mr. Fulton said, the
Associated system has assets in ex
cess of one billion dollars, with more
than 300.000 investors, and controls
properties ranging from Canada to
Florida and as far west as Missouri,
and foreign companies operating in
the Philippine islands.
It services more than 1,000,000
families with gas and electricity, and
controls some traction systems.
Trawler Feared Lost
AMSTERDAM, May 9 (A*).—The
Netherlands trawler Gloria, 152 tons,
and her crew of seven were given up
for lost today. The vessel left
Ijmuiden April 24 and has not been
reported since.
Speaking of Shoes
Everybody wears shoes and
most people In Washington
read The Star.
You can find out more about
shoes from Star ads than
from all other Washington
papers combined.
Yesterday’s Circulation
The Evening Star
Wed., May 8, 1940..—*157444
Wed., May 19,1939_*151400
Increase.. 5,844
Two years' increase, 17,398
•Return* from newsstands not deducted
and no samples Included.
Yesterday’s Advertising
(Local Display)
Ubm«
The Evening Star_ 37,694
2nd Newspaper....21,082
3rd Newspaper-... 18,787
4th Newspaper.14411
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