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Evening star. [volume] (Washington, D.C.) 1854-1972, May 23, 1947, Image 1

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Bunny and warmer today, high near 80. Low i -V.#' fp- , *-d*aiaiik- T-'/SUffSSt
tonight about 66. Sunny and Warm tomor- j > * ^WlMBlPW* :■ r *y‘ *'M’iKrX5
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Temperatures todafHBBgh, 74, "aT 1:30 p.m.; i 1 lip Editlal Articles, A-1S Sports "•
low. 80,. at 3:18 am. Yesterday—High, 72, < finance A-23 Where to Go—B-lt
at 5:20 p.m.; low, 61, at 9:40 am. Lost and Found.-A-t Woman’s Page..B-16 {
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95th YEAS. No. 57,638 Phone NA 5000. WASHIN' _27 .“K 5 CENTS
---—-- 1 1 "■ - '■ - ■■———~ 1
32 Pet. Fund Cut
For Agriculture
Goes to House
$807,143,576 Measure
Is 383 Million Below
Truman Estimates
SCHOOL LUNCH fund cut 40 per
cent in supply bill. Page A-2
ly th« Associated Press
The House Appropriations
Committee swung its economy
ax at the Agriculture Depart
ment today, recommending a 32
per cent budget cut.
In sending to the House floor an
$803443,576 bill to finance the de
partment for the year starting July
1, the committee slashed $383,427,
742 from President Truman’s budget
estimates.
The amount approved is $469,542,
475 less tharf the department had to
spend this year. It includes $225,
000,000 in loan authorizations and
$10,429,710 in permanent appropria
tions.
Bring Total to 2 Billion.
The cuts, if upheld by the House
after debate next week, will boost to
slightly more than $2,000,000,000 the
total reductions made by the House
in its drive to lop $6,000,000,000 from
the President’s $37,500,000,000 budg
et for 1948.
This is exclusive of a surprise
$642,Q00,000 “bookkeeping” cut writ
ten into a deficiency appropriation
bill by the Senate Appropriations
Committee and passed by both
houses without a word of debate
earlier this week.
The House committee acted on the
agriculture bill after weeks of
fiosed-door hearings and after Sec
retary Anderson insisted that any
eductions would impair essential
vrm services. The estimates sub-:
fitted, Mr. Anderson claimed, were
ock-bottom minimums.
But the committee rejected this
ontention and said in its report
hat the bill's objective is to make
selective reductions” based on pres
ent and future needs of agriculture.
Statistics Quoted.
To back its contention that less
Federal money is needed, the report
quoted statistics submitted by Sec
retary Anderson showing that be
tween 1940 and 1946 the value of
farmers’ livestock, equipment and
crop inventories jumped 63 per cent
and the value of farm lands soared
68 per cent.
Farm savings rose from $4,200,-;
000,000 to $8,300,000,000 during those
years, while farmers' debts dropped
from $10,000,000,000 to $8,300,000,-;
'000, the report said.
“Here then, is unparalleled testi
mony to the splendid conditions of
American agriculture,” it declared.
The committee’s major cuts were
directed at the Farmers’ Home Ad
ministration, an offshoot of the old
Farm Security Administration; the
Soil Conservation Service, the crop
insurance program and the school
lunch Program.
/•Section 32” Fund Shift.
Of the total recommended reduc
tion, $148,000,000 was accounted for
by transfer from the Agriculture
Department to the Treasury’s gen
eral fund of “Section 32” money
heretofore allotted for various farm
programs, including the school lunch
project and conservation payments.
These funds come from customs
duties, 30 per cent of which had
been earmarked for the Agriculture
Department. The President's budget
had contemplated the use of $100.
000,000 of this money for benefit
payments to farmers.
The committee said, however,
that its action in withholding the
"Section 32" money should not be
"taken to mean that similar action
should be taken in future years.”
"This fund is intended to provide
relief in emergent periods when a
surplus problem exists,” the com
mittee said. “That problem, how
ever, does not exist at the present!
time • * *.”
Conservation Slash.
The committee also (a) cut out
all funds for farm tenant loans,:
<b> trimmed from $267,620,754 to;
8150.000,000 the funds for soil con-j
servation payments and (c) entire
ly eliminated from the bill language
that would have authorized a $200,- j
000,000 soil conservation program ]
for the 1948 crop year.
On the other hand, the committee
approved full budget estimates of:
$2,475,400 for crop and livestock re
ports, $170,000 for investigations to]
develop domestic sources of rubber ;
from guayule and other plants. $179,- j
000 for research into improving I
methods for extracting rubber from!
such plants, $7,161,268 for payments!
to States for operation of experiment
stations.
The committee's recommendations
with respect to major departmental
activities:
Soil conservation and use pay
(SefAPPROPRIATIONS, Pg. A^2.) !
Late Bulletins
Southern Coal Talks Set
John L. Lewis and the
« Southern Coal Producers’ As
{ sociation agreed today to meet
next Wednesday morning to
I negotiate on a new work con
tract. The Southern group
had refused to enter into in
(dustry-wide negotiations along
with the Northern, Midwest
| ern and Far Western operators.
Masked Men Seize Prisoner
MURFREESBORO, N. C. UP). i
The Murfreesboro Herald-News. I
said today that three armed,
masked men seized a Negro
prisoner in the Northampton
County Jail at Jackson early
today and disappeared with
him. After forcing the jailer ;
to deliver the prisoner, the
men marched their captive
into the street, where they
were joined by a small group
of men. The jailer said the
prisoner was accused of an
attempted, assault on a woman.
1,500 Face Loss
Of Jobs Here in
Agriculture Cut
8,000 Elsewhere May
Be Affected by House
Group's Budget Action
By Joseph Young
Approximately 1,500 Agricul
ture Department employes in
Washington face dismissal as a
result of the 32 per cent cut
made by the House Appropria
tions Committee in the depart
ment’s 1948 budget requests, it
was estimated today by Agricul- ;
ture officials.
Another 8,000 or more employes
throughout the country may have to
be dismissed as a result of the cuts,
it was estimated. Agriculture has
66,000 full-time employes, with 11,
800 of them stationed here. In addi
tion, there are about 20,000 part
time employes throughout the |
country.
Although the personnel cuts are
sizeable, they are not as large as
had been feared by Agriculture of
ficials. The committee’s bill, reported
today, showed that a large amount
of the 32 per cent slash was intended
for programs instead of bureau op
erations.
*
Home committee memoers uiui
cated they would make a fight on
the House floor to obtain greater
personnel cuts in the department,
and salvage some of the funds cut
from such Agriculture programs as
the school lunch and Farm Home
Administration functions.
Representative H. Carl Anderson, ;
Republican, of Minnesota, concurred
in the committee's report, but he ,
added a supplemental statement, ]
which said:
‘‘I do not feel that proportionate j
cuts in personnel throughout the j
department have been made con- (
sistent with the program slashes.” ;
Mr. Anderson said he would seek to (
cut the Bureau of Agriculture Eco- 1
nomics by another $500,000, along j
with slashes for other bureaus.
Crop Insurance Hard Hit.
The bureau, with 688 employes 1
here, already is one of the depart- j
ment’s hardest hit agencies, with a .
slash of 30 per cent. This will mean j
that at least 200 employes in Wash- ,
ington face dismissal unless the J
(See PERSONNEL, Page A-2.) ;
Selection of Director i
May Retard Start of :
Greek Aid Program '
Five Found Unavailable; t
Hoffman, Studebaker <
Head, Is Mentioned i
» r
By the Associated Press j
President Truman’s difficulty 1
in finding a top-notch man to 1
run the new American aid pro- ‘
gram in Greece threatens some 5
delay in getting the operation \
under way.
The State Department already Is :
reported to be acquiring a $100,000,- i
000. Reconstruction Finance Corpo- f
ration loan to finance the start of
the $400,000,000 undertaking to but- i
tress Greece and Turkey against any i <
extension of Soviet power over those \ 1
countries. 11
But officials made it clear that i
despite the availability of money i
and the authority granted by Con- I
gress in the bill which Mr. Truman <
signed yesterday nothing very sub- i
stanial can be accomplished until <
an administrator is appointed and
takes over his duties.
Diplomatic officials were hopeful ,
this might be done today. But they j
were uncertain whether it could be. ,
At least five men have been consid- ,
ered, but for a variety of reasons j
each has proved unavailable. In- ^
side speculation at the moment cen
ters around Paul Hoffman, president ‘
of the Studebaker Corp. ,
No mtcn is anticipatea in carry
ing out the $100,000,000 Turkish part
of the program. That involves
mainly supplying military equip- ;
ment to the Turkish Army .under ‘
the general supervision of Ambas
sador Edwin C. Wilson at Ankara.
But the program for Greece is (
much broader, embracing not only ,
military asistance. but economic re
habilitation as well. In addition to i
$300,000,000 under the aid program, ,
the Greeks are to receive $50,000,000 ,
in, direct relief funds under a sep- |
arate bill awaiting the President's
signature.
In Greece the American mission
running the aid program is to be
independent of the American Em- i
bassy and Ambasador Lincoln Me- 1
Veagy. The chief of mission, with
a staff of several hundred persons,
will have the task of regulating the i
flow of money to the Greeks and <
making certain that the United
States gets the results it wants. j
In essence, the declared objective
is to reconstruct the Greek economy ,
(See^FOREIGNTPage A-5.»
Balkans Probers
Blame Tito for
Guerrilla War
Conditions in Greece
Declared Contributing
To Border Conflicts
By the Associated Press
GENEVA, May 23.—The Bal
kans Investigating Commission
today held Yugoslavia primarily
to blame for support of guerrilla
warfare in Greece. The commis
sion sent a formal report to the
United Nations Security Council
recommending that the U. N.
condemn as a threat to peace
the support of armed bands vio
lating Balkan frontiers.
The section of the report critical
of Marshal Tito’s government said
Albania and Bulgaria were blame
worthy to a lesser degree in support
ing the guerrillas, and that condi
tions in Greece were a contributing
factor. The vote on this section was
8 to 2, with Russia and Poland
lined up against the United States,
Britain, China, Belgium, Australia,
Colombia, Brazil and Syria. France
abstained.
9-to-2 Vote on Conclusion.
The commission’s general conclu
sion — that support of frontier
violating bands should be considered
a menace to world peace, and sub
ject to U. N. action—was reached on
a 9-to-2 division, with Russia and
Poland opposed.
Along with the 251-page final re
port, terminating their four-month
investigation of Greek frontier inr
cidents, the commission members
also ordered transmitted to the Se
curity Council more than 10,000
pages of records and documents re
lating to the investigation.
The report to the Council said:
“In the light of the situation in
vestigated by it in the area of its
investigation, the commission believe
future cases of support of armed
bands formed on the territory of one
state crossing into territory of an
other state, or of the refusal by a
government, in spite of the demands
of the state concerned, to take all
possible measures on its own ter
ritory to deprive such bands of any
aid or protection, should be con
sidered by the Security Council as
a threat to peace within the meaning
of the Charter of the United
Nations.”
liujoni; rropusais
The majority proposals were these:
1. That the governments of Greece,
Albania, Bulgaria and Yugoslavia
do their utmost to establish normal
good neighborly relations, to abstain
from all action likely to increase or
maintain tension and unrest in the
border areas, to rigorously refrain
from any support of elements in the
neighboring countries aiming at the
overthrow of lawful governments;
or, should this resource fail, to
appeal to the appropriate organ at
the United Nations.
2. That the countries concerned
should form frontier conventions
along the lines of the Greek-Bul
garian convention of 1931.
3. That the Security Council
should establish a commission or
commissioner in the frontier area
for a period of at least two years
to report to the Council every three
months the functions of the com
mission; to investigate further fron
tier violations, and to try to settle
controversies on frontier violation
and on the applicatoin of frontier
conventions.
Refugee Control Impossible.
Such a commission or commis
sioner, the majority proposed, should
have the right of access to Albania,
Yugoslavia, Bulgaria and Greece.
Liaison officers of Greece's neigh
bors recently told the commission
their government would not guar
antee that the stand-in subsidiary
commission now in Greece would
be permitted to cross their frontiers.
The majority report said it recog
nized the physical impossibility of
controlling the flow of refugees
across frontiers. It urged, however,
that the Security . Council recom
mend that the governments con
cerned study the practicability of
concluding agreements for the vol
untary transfer of minorities.
The report said the commission
believed political refugees and those
who fled their countries in panic
were ‘a serious contributing factor
to the present situation,” and that
(See GREECETPage A-4.) -
Nazi Agent Commits
Suicide in Dublin
By the Associated Press
DUBLIN, May 23.—Dr. Hermann
Goertz, a Nazi agent who was await
ing deportation from Eire, commit
ted suicide today in the Dublin
passport office, by taking poison.
Goertz parachuted into Eire in
June, 1940, and evaded arrest until
November, 1941. _
Plans for World Capitol Draw
Fire as 'Diabolical Dream'
By th« Ajsociated Pr«««
NEW YORK. May 23.—Architects
crossed words today over the shape,
of the new world capitol of the
United Nations in Manhattan, one
assailing it as a "diabolical dream”;
and its chief planners replying:
mildlv that "we expected criticism.”;
Charles C. Platt, president of the
New York Municipal Art Society,
characterized the projected 40-story
rectangular-shaped skyscraper and
attendant buildings overlooking the;
East River as "simply slabs turned
up and slabs lying an their belly
with no unity of composition.”
But Wallace K. Harrison. U. N.
director of planning, emphasized
that the plans still were tentative,;
adding, “there were 14 people on
the board of planning, all of whom
have their own criticisms. The plans;
as announced represent the closest
agreement worked out yet.”
The tentative plans call for a flat
meeting hall before the skyscraper
at Forty-second street, with the
General Assembly Hall jutting from
the flat building and a 30-story sky
scraper for housing U. N. delegations
at the opposite end.
Of these plans, Platt exclaimed:
‘It reminds me of what might be
a patch of woods struck by a forest
fire, leaving the stronger memberS
standing and the weaker members
lying down.
“It seems more like a diabolical
dream of an engineer where stark
efficiency has given way to the
beauty that architecture ^presents.”
Perry Coke Smith, president of
the New York chapter of the Ameri
can Institute of Architecture, said
the plan “looked like a sandwich
on edge and a couple of freight
cars,” while Max Foley, president
of the New York Building Con
gress. declared. “There must be
something in that darn thing that
I don’t understand.”
But Harvey Wiley Corbett, one
of America’s most noted architects,
justified the plans as "the next
step" in the advancement of archi
tecture and said It demonstrated "a
complete change of taste.”
d
House Receives
;
New income Tax
Bill for District
Substitute for Earlier
Commissioners' Plan
Approved by Unit
The new District income tax
bill today was introduced in the
House by Representative Bates,
Republican, of Massachusetts.
The way was cleared for formal
introduction of the substitute for
the earlier Commissioners’ bill at a
brief executive session of the House
District Fiscal Affairs Subcommit
tee late yesterday.
The bill would tax income of per
sons living here seven months of
the year but would allow a credit
against such District tax for any
income or intangible taxes paid to
a State.
Mr. Bates feels the new bill would
! catch many persons who now avoid
the District tax by claiming legal
residence in a State but actually
pay no income or intangible tax in
the State.
He has also suggested many per
sons would elect to pay the lower
District tax.
Larger Yield Seen.
Mr. Bates estimated the yield of
the new tax bill would exceed the
$3,150,000 expected from the earlier
bill of the Commissioners.
The origipal bill would have per
mitted the District to tax incomes of
District residents wherever earned.
It also would have been levied
against incomes earned in the city
by nonresidents, but would have
given reciprocal credits for taxes
paid on the same income in other
States, where the States gave simi
i lar credit to District residents.
Mr. Bates and Senator Cain, Re
j publican, of Washington told the
j Commissioners early in the joint tax
(hearings last March that the bill
would not get through a Congress
afraid of double taxation.
Inclusion in the revised bill of
the credit for intangible taxes paid
in States is designed to make the
measure more attractive to mem
bers of Congress from the 17 States
having no income tax which legal
residents of those States could de
duct from or apply to any District
tax assessed on the basis of actual
residence here.
Seeks to Remedy Defects.
Mr. Bates, who personally dislikes
a sales tax, has been working with
District officials in an effort to draft
a new income tax law to remedy the
defects of the present law and still
get through Congress.
The District’s financial problems
: commanded the attention all day
yesterday of the Horan Subcommit
tee of the House Appropriations
Committee, in charge of the city’s
record-breaking budget of $95,000,
000 plus.
me enu 01 me aay, onairman
iHoran declared the committee's
[ultimate actions should have some
! effect on the city's welfare expendi
tures. He repeatedly has advocated
isavings in relief expenditures. Yes
| terday, he cited reports of two sisters
i who were said to be getting relief
: payments from the District, al
though they still were the owners
of real estate.
Checkup System in Prospect.
Officials said some system would
be established for a check by relief
officials against the assessor’s roster
for property ownership.
Chairman Horan said a discussion
of municipal finance with the Com
missioners also brought out that the
latest estimates of the Commission
ers on tax receipts in the next fiscal
year show some $3,600,000 more
(revenue than had been anticipated
last winter.
But, it was stressed, the District
still would need a new tax program
bringing in more than $10,000,000
extra in the next fiscal year to bal
ance the 1948 budget.
Early action on appropriations
j (See DISTRICT TAXES, Page A-27)
Romney Gets Term
Of 1 to 3 Years in Jail
Kenneth Romney/ former House
! sergeant at arms, was sentenced In
District Court today to serve from
one to three years in Federal prison
on a charge of concealing a $143,863
shortage in his accounts.
In Imposing the sentence, Justice
Alexander Holtzoff said he was deal
ing leniently with Romney because
the shortage had occurred a great
many years ago and that two others
apparently involved are beyond the
law. Earlier, Justice Holtzoff had
overruled a motion for a new trial.
An employe of the House for 31
years, Romney was found guilty May
15 on three counts. The first two
counts charged he filed fraudulent
statements with the Government
Accounting Office on June 1 and
November 1, 1946, concerning the
amount of cash in his office. The
third account charged he knowingly
concealed the amount of cash on
hand in his office in 1946 by carrying
as cash on the books bad checks
I and other irregular financial instru
ments.
In passing sentence, Justice Holt
zoff said the evidence indicated that
some checks Romney had cashed for
former Representative John H.
Smithwick, Democrat, of Florida
had never been paid and that they
apparently represented a good por
tion of the shortage. The jurist
added that the statute of limitations
had prevented Mr. Smithwick from
being accused.
Justice Holtzoff also named Frank
Mahony, a former bookkeeper, as
another who “should stand before
this court together with the defend
ant.” It was testified that Mahoney
took $25,000 of the funds in 1938, too
long ago to be prosecuted under the
statute of limitations.
a
(SIy'MISTTERJT
/WHEN ARE YOU g
\ GOING lb DO ft
i) something m
ft ABOUT TWAT?/^
Mrs. O'Byrne, New DAR Head,
Takes Office as Session Ends
President General Elected by 55 Votes;
'Homecoming' Banquet Scheduled Tonight
(Pictures on Page B-l.)
Mrs. Roscoe C. O’Byrne of
Brookville, Ind., took office as
president general of the Daugh
ters of the American Revolution
today as the 56th Continental
Congress wound up its sessions
with the passage of 11 resolu,
tions, including one urging
prompt action to unify the
armed forces.
The election in which Mrs.
O’Byrne was victorious was not
completed until 3:20 a.m. today and
was one of the closest elections in
the organization's history, as experts
had foretold.
Mrs. O Byrne was chosen by a
margin of only 55 votes, polling 1,186
against 1,131 for her opponent, Mrs.1
Stanley Thorpe Manlove of New
burgh, N. Y.
The results of the balloting were;
announced to 1,500 weary delegates
who had waited through the night
in Constitution Hall to learn the
outcome. Older members recalled
that 30 years ago delegates stayed
up all night while tellers counted
ballots from boxes which were
guarded by policemen.
The total vote of 2,331 was the;
highest in DAR history. Fourteen:
ballots were ruled invalid.
In contrast with her opponent,;
tSee DAR, Page A-5.) j
May Defense Balked.,
In Attempt to Lay
Probe to Politics
Judge Bars Questions
Concerning Activity of
Former Senator Mead
By Robert K. Walsh
Defense counsel in the May
Garsson war fraud conspiracy
trial attempted in District Court
today to have former Repre
sentative Andrew J. May testify
that political motives caused the
Senate War Investigating Com
mittee to look into his dealings
with the Garsson brothers.
Rulings by Justice Henry A.
Schweinhaut, however, barred ques
tions concerning the activity of for
mer Senator James M. Mead, Demo
crat, of New York either as chair
man of the committee or as a can
didate for Governor of New York.
Rounding out a full week on the
witness stand, May was to face
Government cross-examination this
afternoon on charges that he con
spired with Henry and Murray:
Garsson to defraud the United'
States by taking more than $53,000;
in bribes.
Learned of Probe Last June.
The former chairman of the House
Military Affairs Committee declared'
that until June 1, 1946. he did not
know he and the Garssons were be
ing investigated. This was two
months after sale of the Cumber
land Lumber Co., of which he claims
he was the Kentucky agent, without
pay, for the Garssons' munitions
combine. The Government declares
that the Garssons used the lumber
company to make payments to May.
Winding up direct examination of
May, Charles J. Margiotti, chief
counsel for the Garssons, asked the
71-year-old Kentuckian to tell when
and how he first heard about any
investigation of the lumber com
pany.
This line of questioning appar
ently was designed to offset testi
mony of Government witnesses that
May and the Garssons tried to dis
pose of the lumber property and
“fix up" their financial records
when they became aware that they
were being investigated.
May said the matter was first
called to his attention by Henry i
Garsson, who came to his office
about June 1, 1946, and asked if
May’s own committee was investi
gating any of the Garsson com
panies. May said he checked with
the committee clerk and found that
no such investigation was underway.
About the same time, May con-j
! (See GARSSON, Page A-4.) j
Americans Moved by Plane
From Besieged Changchun
•y the Associated Press
NANKING, May 23.—An Ameri
can Army plane evacuated the fam-;
; ilies of the United States and Brit
j ish Consuls-General from Chang
chun today as Chinese • dispatches j
reported Communist shells falling;
in the northern suburbs of the I
I besieged Manchurian capital.
The wife and daughter of the
American Consul-General and the
wife and two daughters of the Brit
ish Consul-General left for Peiptag,
the American Embassy announced
here, together with several mem
bers of the UNRRA stall.
A
Ijliman Settles Down
For Indefinite Stay
To Be Near Mother
Physician Feels Morale
Factor of Son's Presence
Is Her Best Medicine
By Joseph A. Fox
Star Staff Correspondent
KANSAS CITY, Mo., May 23.—
President Truman today seem
ingly was settling down to an in
definite stay here, as his 94-year
old mother, Mrs. Martha Tru-i
man, continued to hold her own
in the fight she has been making
for the past week.
The presence of the President is
considered by Brig. Gen. Wallace
Graham, the attending physician, to
be a definite morale factor in giving
“Mother Truman” the chance he
now feels that she has for recovery.
She also has been greatly cheered
by the daily visits of Miss Margaret
Truman.
Consequently, White House aides
are noncommittal about the return
of the President to Washington.
The possibility of a stay extending
into next week was seen yesterday
when Mr. Truman canceled a speech
scheduled at the annual Memorial
Day exercises at Gettysburg, Pa.,
next Friday.
concert senes rostponea.
At the same time, President Tru
man confirmed reports that his
daughter was postponing a series
of singing appearances because of
the illness of her grandmother.
Dates due to start earlier in Pitts
burgh and Cleveland, where she was
making her debut as a concert artist,
were called off several days ago.
She now plans to tour in Septem
ber and October.
The President took a large batch
of work with him when he went out
to his mother’s home in Grandview
yesterday, to spend the day, after
signing the Greco-Turkish Aid bill
in his suite in the Muehlebach
Hotel here.
That document was dispatched
immediately to Washington in the
courier plane which is ferrying im
portant papers for Mr. Truman to
handle daily, between here and
Washington. He also had the cus
tomary instant telephonic communi
(See TRUMAN, Page A-5.)
Probers Hear Report
Of $62i-a-Ton Bonus
Asked in Steel Deal
Client Was Told Sum
Woufd Go to Company
Officers, Lawyer Says
By the Associated Press
unaries Margioui, nusourgn
lawyer, told,? Senate committee
today that a client of his, trying
to buy steel for resale, was told
by a New York lawyer that he
would have to pay an extra
$62.50 a ton, which would go to
executives of “five big steel com
panies.”
Mr. Margiotti testified before a
: Senate Small Business Subcommit
tee investigating the difficulties
i which small business firms are hav
; ing in buying steel.
The witness did not name the
I “big steel companies.” He said he
i was not accusing any steel executive
I of anything and had no personal
[knowledge of any improper prac
tices, but merely was telling what
his client was told.
"Interesting and Amazing.”
Mr. Margiotti called it “an in
teresting and amazing story—if
true.”
The client is E. A. Kerschbaumer,
who testified yesterday that he tried
to buy 300,000 tons of sheet steel
for resale, but that file deal fell
through.
Mr. Margiotti said Mr. Kersch
baumer was informed by Herbert M.
Karp, New York lawyer, that Mr.
Kerschbaumer could buy 248,000 tons
if he would secretly pay $62.50 a ton
as an “override” for the unidentified
steel executives.
Mr. Margiotti said the total "over
ride” would have amounted to “ap
proximately $18,000,000 for the ex
ecutives and Karp.” Mr. Margiotti
added that “Karp said he would
make the distribution to the ex
ecutives.”
The final outcome of the negotia
tions, as related by Mr. Kersch
baumer, was that the Firth-Sterling
Steel Co., from which he expected
to get the steel, disclaimed the order
and said a letter purporting to
promise delivery was not authorized
by the company.
Mr. Margiotti said he is repre
senting the firm of Hannan &
Kerschbaumer in a proposed legal
action against Firth-Sterling and
other companies.
Mr. Kerschbaumer, a big, black
mustached man, was questioned
about the “Miss Hannan” he said
is his partner.
Committee Wants to Hear Her.
He said she is an elerly woman
who knows nothing about the steel
deal, and her presence at the com
mittee's hearings would be “of no
value.”
An attorney for the subcommittee
said, “We’ve trying to locate her.”
Senator Martin, Republican, of
Pennsylvania, chairman of the sub
committee, told Mr. Kerschbaumer,
“we’ll be the Judge” of whether her
testimony would be helpful.
Another witness was Percy Nagle,
a Chilean who is in this country
trying to buy steel—so far without
success—for Argentine and Chilean
firms.
He testified, with the help of a
translator, that he tried without suc
cess to get some steel from Mr.
Kerschbaumer, and that Karp yes
terday offered him 195,000 tons.
Mr. Kerschbaumer related yester
| (See STEEL, Page-*.-4.)
15 Hopkins Men Are Hostages
For Missing Maryland Terrapin
A “revenge” raid by Johns Hopkins
University students against the Uni
versity of Maryland early today cost
College Park its 400-pound bronze
terrapin—mascot of the school—but
15 of the Baltimore students were
caught and are held hostage for
return of .'the cherished turtle.
The interscholastic "war" appar
ently began early last night when
the Johns Hopkins men found sev
eral of their best sidewalks painted j
in the Maryland colors with slogans |
declaring that “Maryland will beat
Hopkins!”
Unbeaten Johns Hopkins could
take fhe national title if it wins the;
lacrosse game with Maryland sched
uled for tomorrow night.
Immediately after the sidewalk
painting, a task force left in auto
mobiles for College Park. They
arrived at Maryland U. around mid
night and swiftly dismounted the
huge metal terrapin from its pedes
tal in front of Ritchie Coliseum on
U. S. route 1.
Just as the Johns Hopkins stu
dents started for Baltimore, Mary
land patrols spotted the enemy,
commandeered automobiles and
gave chase. Near Laurel, Maryland
University sources said, several
Johns Hopkins cars were forced off
! the road and the raiders captured.
The captured 15 today were shorn
i so that their heads bore only a hairy
-M" on top. They were wearing
placards extolling Maryland’s -ath
letic prowess while being “detained”
pending return of the captive ter
rapin.
The terrapin, meanwhile, is under
guard at Hopkins dormitories.
Neither side seemed disposed to give
in at last reports.
2
| Sunday Reading . ..
Months of careful study of
postwar England and the
| changes wrought by the Labor
: government have convinced
! Foreign Correspondent Hal
O’Flaherty that a controlled
economy cannot grow in a
free state. His interesting
1 findings will appear in the *
Sunday Editorial Section.
A companion piece by Gould
Lincoln, political analyst, deals
with the impressive record
j being pounded out with the
| Senate gavel by President Pro
! Tempore Vandenberg. An
j other by Garnett D. Homer,
1 State Department reporter,
| has to do with the growing
number of war veterans in the
' ranks of the diplomatic corps.
Oil in the mountains of
Southwest Virginia is the sub
ject of a better than average
camera story in the 24-page
Pictorial Magazine. These
features, plus special coverage
on current books, farming
and gardening, amusements,
music, society, art, sports, etc,
supplement the usual accurate
and complete news content of
t£lfcmtiag &tar
1
Callahan Says
He Will Return
To Post by July
Statement Issued as
Youiifi Considers 15
Possible Successors
Police Supt. Harvey G. Calla
han, whose retirement has been
the subject of many recent ru
mors, told The Star today he Is
recovering from his illness and
expects to return to his desk “on
or before July 1.”
Maj. Callahan’s statement cams
shortly after Commissioner John
Russell Young called for the records
of an additional police inspector and
six more captains, raising to 15 the
number of men being considered for
the No. 1 police post.
Mr. Young has had on his desk
for several days the records of six
inspectors and two captains con
sidered candidates for the super
intendency. The Commissioner ad
mitted to newsmen the men were
under consideration in the event
Maj. Callahan found it necessary
to withdraw.
Gains 10 Pounds.
“What else do you think I’d have
them up here for?” he asked in re
sponse to a question.
At his home at 4018 Twenty-first
street N.E., Maj. Callahan told a
Star reporter he is “feeling fine”
and has gained 10 pounds since re
turning from Sibley Hospital April
13.
imo one nas requesueu me wj a^ijr
for retirement and I have no inten
tion of doing so,” he said, adding
that he hoped to be back on the
job by June 15.
The veteran policeman said he
had been walking around his room
on the second floor for some time
and expected to go downstairs in
the near future. His wife later cor
roborated his belief that he is re
covering rapidly.
Maj. Callahan said he lost 60
pounds during the illness which
was reported February 1 and ne
cessitated two operations. The
operations, he said, were for an
obstruction in the intestinal tract.
That condition is corrected and the
incision nearly healed, he explained.
List of Those Studied.
Those whose records Commis
sioner Young called for today w’ere
Inspector Lloyd Kelly, Capt. Clar
ence H. Lutz of No. 10 precinct.
Capt. George R. Wallrodt of No. 3
precinct, in which Mr. Young's home
is located; Capt. Robert C. Pearce
of No. 1 precinct, Capt. John R.
Jeffries of No. 9 precinct, Capt.
Benjamin P. Kuehling of No. 4
precinct and Capt. Walter T. Storm
of No. 11 precinct. -
Earlier in the week Mr. Young
obtained records of Assistant Su
perintendent Walter Thomas, De
tective Chief Robert J. Barrett, re
garded as Mr. Young’s personal
choice for the job; Inspector Oscar
J. Letterman, inspector John Fowl
er, head of the police academy and
the department’s ballistic expert;
Inspector Clarence Talley, Inspector
Arthur E. Milter, chief of the Traf
fic Division; Capt. Floyd Truscott of
No. 13 precinct and Capt. John
Fondahl of No. 11 precinct.
Mr. Young said he had received no
intimation from any source that
Maj. Callahan was planning to re
tire.
He said he planned no immediate
changes within the next day or so
(See POLICE, Page A-4.)
---
Wreckage of B-17
Found in Nicaragua
By the Associated^ Press
WEST PALM BEACH, Fla.. May
23.—The wreckage of a Flying
Fortress missing on a flight from
the Canal Zone to Kelly Field,
Texas, has been found in Nicaragua,
the Army announced today.
The plane with 15 persons
aboard, was located as a vast search
was in progress by the Army and
Navy over Central America, the
Gulf of Mexico and Carribbean Sea.
Morrison Field authorities said the
notification that the wrecked craft
had been found carried no other
details.
The Navy had a report in New
Orleans that the Flying Fortress
had crashed 70 miles from Puerto
C&b6ZAS
The missing plane left Howard
Field, Canal Zone, Wednesday night
and was due to arrive at the Texas
base at 6 a.m. yesterday. It was
last heard from while flying over
the Carribbean 20 miles off the
Nicaraguan coast at 12:10 am. yes
terday_

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