Evening star. [volume], March 12, 1951, Image 1

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

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Weather Forecast
Cloudy, high 50 today. Cloudy, low 33 to
night. Tomorrow, continued cold and
, cloudy. (Full report on Page A-2.)
Temperatures Today.
Midnight 37 6 a.m..- 32 11 a.m.-.45
2 a.m.— 34 8 a.m-. 35 Noon —47
4 a.m.._32 10 a.m... 43 l p.m... 48
Lote New York Morfcets, Page A-17.
Guide for Readers
Page
Amusements .-B-20
Classified ..B-ll-16
Comics_B-18-19
Editorial_A-8
Edit’l Articles..-A-9
Finance _A-17
Page
Lost and Found. A-3
Obituary_A-10
Radio_B-17
Sports_A-13-15
Woman’s
Section_B-3-6
* An Associated Press Newspaper
99th Year. No. 71. Phone ST. 5000
S ★★ WASHINGTON, D. C., MONDAY, MARCH 12, 1951—THIRTY-EIGHT PAGES.
Home Delivery, Monthly Rates: Evening and Sunday. $1.50: S' fTTXrT’Q
Evening only. $1.10; Sunday only, 45c: Night Pinal. 10c Additional. ® A O
$2.8 Million Profit on $100,000
Invested in Ship Deal Revealed
By Ex-Lawmaker at RFC Probe
Casey Tells of Buying
Ships With $10 Million
Insurance Firm Loan
By Robert K. Walsh
An unidentified Government of
ficial was involved with a former
Representative and a Washington
lawyer in buying ships from the
Maritime Commission and selling
them later at a $2.8 million profit,
a Senate subcommittee investigat
ing the Reconstruction Finance
Corp. brought out today.
Former Representative Joseph
E. Casey, Democrat, of Massachu
Grond Jury Begins Study of RFC Case;
Three Witnesses Slated. Page A-6
setts, admitted that he and Joseph
H. Rosenbaum took part in form
ing a firm that had only $100,000
in capital but got a $10 million
loan from an insurance company
to buy the ships.
Mr. Casey and Mr. Rosenbaum
• were associated in representing
several loan applications before
the RFC.
The ship deal apparently had
no direct connection with RFC
Senator Capehart, Republican, of
Indiana, declared, however, that
“there is a lot to be uncovered in
this matter and I hope the sub
committee will get to the bottom
of it.”
Name Is Not Revealed.
Mr. Casey would not disclose
the name of a man he said became
a Government official shortly after
the sale of the ships by the com
pany. He promised to give the
subcommittee that name as veil
as a complete list of stockholders
and tax records of the concern.
The company was called the
American Overseas Tanker Co and
had a “tw’in,” the Greenwich Ma
rine Co., which was under Pana
manian registry, Mr. Casey testi
fied.
Mr. Casey revealed that he in
vested $20,000 in the company and
later sold his stock for $270,000.
Mr. Rosenbaum and Robert W.
Dudley. Mr, Casey’s brother-in
law, who is in Mr. Rosenbaum’s
law firm, were “minor stock par
ticipants” in the twin companies,
Mr. Casey explained.
casey Absolves Kowe.
The only clue that Mr. Casey
would give to the identity of the
stockholder who later became a
Government official was that “he
wasn’t Mr. Rowe.” He was re
ferring to C. Edward Rowe, his
former Massachusetts law asso
ciate who was appointed a RFC
director last August. Mr. Rowe is
scheduled to testify later this week
In the subcommittee's general in
quiry into influence and favoritism
affecting RFC.
Before going into Mr. Casey’s
reported connection with Mr.
Rosenbaum in negotiating for
$6.3 million in RFC loans to the
Central Iron & Steel Co. of
Pennsylvania, the subcommittee
started firing questions about the
ship buying activities.
Some of Mr. Casey’s answers
drew from Senator Capehart a
charge that:
“You are trying to insult the
intelligence of this committee. I
dont' like to be made a fool of ”
Two Separate Purchases.
As related by Mr. Casey, there
were two separate purchases of
ships from the Maritime Commis
sion. He said he and Mr. Rosen
baum represented a client, whom
he would not identify, in buying
two tankers about three vears
ago.
At about the same time, the
American Overseas Tanker Co.
and the Greenwihch Marine Co.
were formed with Mr. Casey as
president.
Those companies, Mr. Casey
said, paid a total of between $7
and $8 million for five ships which
originally cost the Government
about $3 million each. .
The companies later sold the
ships for a total of $2.8 million,
practically all of which was profit,
he added.
This profit, he explained, ma
terialized because the companies,
meanwhile, had leased the ships
to the Standard Oil Co of New
Jersey for enough to cover all
original costs to the companies
Asked the name of the com
(See RFC, Page A-6.)
Phone The Star Now
For Sunday Want Ads
The Star classified advertising de
partment can take ads a week or
more ahead of the date they are
to appear in the paper. The Star
provides this
service to pre
vent a flood of
| telephone calls
as the ad-plac
ing deadline op
proaches, es
pecially on Sat
urday after
noons.
So place your
Sunday classified
ad early in the
week. Don't wait until the 2 p.m.
Saturday deadline. Call STerling 5000.
An efficient staff of telephone ad
takers is on duty froni 8 a.m. to 9 p.m.
weekdays ond from 11 a.m. to 8 p.m.
Sundays.
The Star's classified section—"the
people's market place"—gets results.
Red Jets Collide and Explode
While Chasing American F-80
Bethesda Flyer One of Four Attacked;
3 Allied Spearheads Press on Hongchon
By the Associated Press
TOKYO, Mar. 12.—A spectacu
lar explosion of two colliding
Russian-made jet planes stole the
Korean war spotlight today as
ground action slowed behind re
treating Communists.
The MIGs were trying to make
a tight turn while chasing an
Three From D. C. Area Listed as Killed
in Korea. Page A-12
New Typhus Report to MacArthur Insists
Red Army Is Hard Hit. Page A-5
American F-80 Thunderjet. They
couldn’t cut it fine enough, col
lided and exploded.
“Best damn show I’ve ever been
on,” said Lt. Arthur Walton of
Bethesda, Md.. one of the pilots
in a flight of four F-80s attacked
by 16 speedy Red planes.
The four F-80s reported they
damaged four other MIG-15s in
a 10-minute dogfight. That
brought the bag of damaged MIGs
to seven tor the biggest two days
of jet fighting over Northwest
Korea in this war.
A total of 61 MIGs in flights of
10 to 20 each—engaged United
States F-80s and F-86s in four
dogfights yesterday and today.
On the ground, Red resistance
collapsed on the east central front
and faded sharply before a three
pronged Allied spearhead along
the west-central sector of the
Allies’ advancing 70-mile line.
United Nations tank columns
rolled to within 5 miles of Hong
(See KOREA, Page A-5.)
Truman 'Satisfied'
After Phone Parley
With Hill Leaders
Conference Touches on
Military Manpower, Grain
For India and Auriol
By Joseph A. Fox
Star Staff Correspondent
KEY WEST, Fla., Mar. 12.—
President Truman today held a
j “very satisfactory” telephone con
ference with his legislative lead
ers, reporting that “the whole,
field was covered,” in a session
of about 2 minutes.
The .President took up pro
posed congressional curbs on the
Navy Bill Providing for Huge Carrier
and Atom Sub it Signed. Page A-3
New Multi - BUiion - Dollar Plan for Foreign
Aid Given Truman. Page A-4
military manpower program which
are known to be causing him
some concern, but Press Secre
tary Joseph Short said he could
not discuss the turn the talk took.
Nor did he know if the satisfac
i tion reported by the President re
ferred to the progress of the ad
ministration legislative program.
The issues bothering him are
| (1) the 4 million-man ceiling on
armed forces incorporated in the
bill passed by the Senate and
sent to the House, and (2) the
Senate resolution to require the
President to consult with Con
gress on sending troops abroad.
Discusses India Grain.
Mr. Short said also that the
President discussed specifically:;
His urgent request to Congress
to finance shipment of 2 million
j tons of wheat to India, which is
dragging on Capitol Hill.
A plan to have President Auriol
of France deliver an address to
a joint session of Congress when
he visits Washington, Easter
week. Announcement of plans in
| this direction were left to the
leaders.
Mr. Short also announced that
tthe President would hold a news
conference at his quarters with
the reporters in two weeks.
There was no White House re
action on the appointment of
Dr. Frank P. Graham to head
the Labor Department’s defense
manpower program.
Members of Conference.
Participating in today’s con
ference with the President were
Vice President Barkley, House
Speaker Rayburn, House Whip
Priest of Tennessee, and House
Leader McCormack of Massachu
setts. Senate Leader McFarland
of Arizona was away from the
Capital to attend the funeral of
Senator Chapman of Kentucky.
Meanwhile, the “Little White
House” maintained silence on the
Reconstruction Finance Corp. in
quiry which is moving from Capi
tol Hill to a Federal grand jury
room.
There was no definite word on
(Set TRUMAN, Page A-3.)
D. C. Rent Control
Extended by House
The House today, by voice vote,
passed and sent to the Senate a
resolution to extend the District
Rent Law to June 30.
Action was unanimous on the
legislation called up by Chairman
McMillan of the House District
Committee.
Only one question was raised on
the floor, by Representative Miller,
Republican, of Nebraska, a mem
ber of the House District Com
1 mittee.
He inquired whether this 90-day
extension of the District law from
its present terminal date of March
31 was similar to that proposed in
pending legislation to extend the
Federal law to the same date
June 30.
Chairman McMillan said it was,
, and the bill went through in a
I hurry.
Senate Group Favors
D. C. Annual Authority
For Daylight Saving
Pastore Subcommittee
Reports Adversely on
Minimum Wage Issue
The welfare subcommittee of
the Senate District Committee
today voted unanimously for a
bill to give the Commissioners
continuing annual authority to
decide if the District should have
daylight time each summer.
The measure is to be considered
by the full District committee at
a meeting Wednesday. If past!
practice is followed, the commit
tee and then the Senate will vote
for the bill, sending it to the
House, which has held different
views.
In the past several years, the
House has rejected the perma
nent authority bill and reluctantly
compromised on a “one-year
more” plan.
The House District Committee
last week rejected both a bill for
permanent authority for the Com
missioners and one to let them
decide the issue again this sum
mer.
Reconsideration of those votes,
however, has been promised by
some House committee members
The Senate subcommittee, head
ed by Senator Pastore, Democrat,
of Rhode Island, quickly decided
today that the arguments for and
against “fast” time were so well
known it was not necessary to
hold public hearings. Voting with
Senator Pastore were Senators
Smith, Democrat, of North Caro
lina, and Butler, Republican, of
Maryland.
xn otner actions today, the Pas
tore subcommittee considered but
deferred action on a bill to regu
late optometry and to declare it
a “profession.”
The subcommittee decided to
make further study of the long
controversy over this measure.
Adverse to Minimum Wage.
The subcommittee also voted to
report adversely on a bill by Dis
trict Committee Chairman Neely
to extend the provisions of the
District minimum wage law to
cover the employment of men.
The Pastore group also reported
favorably a bill permitting physi
cians who live outside the District
boundary to sign certificates for
iSee DAYLIGHT. Page A-6.)
Late News
Bulletins
No Word on Chandler
MIAMI BEACH . (A5).—After
they had been in session little
more than an hour today in
their showdown meeting on
whether to renew Albert B.
Chandler's contract as'baseball
commissioner, the 16 major
league club owners telephoned
the former Kentucky Senator
to return to the meeting room.
This indicated some decision
had been reached, but at 1:50
p.m. no further word was
forthcoming. (Earlier story on
Page A-13.)
Annexation Review Granted
RICHMOND, Va. (A5).—The
State Supreme Court today
agreed to review an annexation
court’s award of approximately
seven and a half square miles
of Fairfax County to Alex
andria.
:
Harry K. Green Dies
Harry K. Green, 71, commis
sioner of Revenue for Arlington
for more than 30 years, died at
his home, 1407 Noth Barton
street, Arlington, this afternoon.
Alger Hiss Fails
To Win Review
By High Court
Refusal to Consider
Plea Leaves 5-Year
Sentence in Effect
Alger Hiss failed today in his
effort to have the Supreme Court
review his perjury conviction.
The tribunal in its list of orders
refused to consider the case.
The refusal leaves standing the
conviction and five-year sentence
given Hiss on a jury’s finding that
he lied in denying he fed Govern
ment secrets to Russia from his
high. State Department office.
Justices Reed, Frankfurter and
Clark disqualified themselves from
considering Hiss’ appeal.
Justices Reed and Frankfurter
testified as character witnesses for
Hiss at his first trial but not at
the second trial which resulted in
the conviction.
Justice Clark was Attorney
General at the time the Govern
ment prepared its case against
Hiss.
May Ask Reconsideration.
Hiss now can ask the high court
to reconsider its refusal to accept
his appeal. If that request is
turned down—and the court’s
agreement to reconsider is rare—
Hiss will have to go to prison and
begin serving his sentence.
Hiss has been at liberty under
$10,000 bail since Federal Judge
Henry W. Goddard sentenced himj
January 25, 1950. Last October he
took his case to ttje Circuit Court
of Appeals in New York, which
unanimously upheld the lower
court in a decision handed down
December 7.
Attorneys for the 46-year-old
former State Department official
carried the appeal to the Supreme
Court last January 27.
Hiss’ conviction on thi' perjury
charges, January 21,1950, climaxed
two lengthy and dramatic trials
which pitted his reputation as a
gifted public servant against the
damning testimony of Whittaker
Chambers, former senior editor of
Time Magazine and self-confessed
ex-Communist spy courier. Mr.
Chambers swore Hiss supplied him
with secret material in 1937 and
1938.
Both Trials Held in New York.
Both trials were held in New
York. The first, which ended with
a hung jury on July 8, 1949, was
presided over by Judge Samuel H.
Kaufman, whose handling of the
case came in for sharp congres
sional criticism. The second trial,
before Judge Goddard, involved
39 days of testimony and argu
ment—more than a million words
from 100 witnesses and a battery
of lawyers.
Prosecutor in both trials was
Thomas F. Murphy, New York’s
new Police Commissioner, then
serving as an Assistant United
States Attorney.
The juries in the two cases were
asked to cut through a maze of
conflicting testimony on peripheral
issues in grappling with two es
sential problems:
1. Did Hiss lie to a Federal
Grand Jury in 1948, when he
swore he did not give State De
partment secrets to Mr. Chambers
(See HISS, Page A-6.)
19 Units of Air Guard
On List to Be Called Up
Nineteen non-flying units of the
Air National Guard, with a total
strength of approximately 10,000
officers and men, will be ordered
into active military service within
the next nine months, Gen. Hoyt
S. Vandenberg, Air Force chief of
staff, announced today.
The first of the units will be
ordered to duty within two months
and the remainder spaced over a
seven-month period.
The groups to be ordered up are
service type, including 11 aircraft
control and warning groups, five
signal light construction com
panies, and three communication
squadrons.
The units to be alerted are in
addition to the 22 fighter and
light bomber wings that have been
previously announced as sched -
uled for active service.
The Air Force said its present
plan is to release Air National
Guard units and personnel by the
time they have completed 21
months of active duty.
MR. PROSECUTOR,
- PLEASE REFER THIS
MATTER TO THE **
A GRAND JURY/
House Committee OKs
18i-Year-Old Draft,
Service to 26 Months
UMT Program Also
Kept, 17 to 14, Along
With Quick Expansion
By George Beveridge
The House Armed Services
Committee voted tentatively today
to approve provisions of a draft
bill calling for lowering the com
pulsory draft age to 18 >2 and
extending draft service to 26
months. ,
By a close 17-14 vote, the com
mittee decided also to keep pro
visions for a universal military
training program in the measure,
along with draft act changes to
permit immediate military expan
sion. The vote defeated an amend
ment by Representative Anderson,
Republican, of California, which
would have split the draft expan
sion—UMT proposals into two
titles. -
The actions were taken as the
House committee, behind closed
doors, began a slow section-by
section consideration of the con
troversial draft measure. The pro
cedure is to vote on parts of the
bill as the committee comes to
them, with a final vote on the en
tire measure.
G. O. P. Amendment Lacking.
Contrary to expectations, Re
publicans did not bring up during
the morning session an amend
ment which would require fhat
Congress rule on the “troops to
Europe” controversy before any
more United States forces could
be sent to join Gen. Eisenhower’s
Atlantic Pact army.
Chairman Vinson called an af
ternoon session in the hope of
completing committee action soon
enough to get the bill through the
House before an Easter recess
But today’s slow progress made
prospects of a final committee
vote this afternoon very unlikely
The 17-14 vote against splitting
the UMT provision represented a
strong victory for administration
members, who viewed the pro
posed amendment as an attempt
to kill UMT.
Mr. Vinson said the committee
also voted by an “overwhelming
margin” against an amendment
by Representative Arends, Repub
lican, of Illinois to consider UMT
in an entirely separate bill.
Draft Age Unanimous.
No vote was taken on the 18*/2
age proposal or the provision to
extend draft service to 26 months,
the committee accepting these
unanimously.
Mr. Vinson said the decrease in
the induction age provides that
a man be entirely classified be
fore reaching the age of 18*4, so
that he can be inducted as soon
as he reaches the minimum age
level.
The House bill sharply differs
(See DRAFT, Page A-3.)
Phony Mink Coat 'Found' Ad
Keeps Brannan's Phone Busy
Secretary of Agriculture Bran
nan and The Star were targets of
the warped humor of a practical
joker who yesterday inserted this
ad in the Sunday Star’s Lost and
Found column.
Found: Natural pastel royal
mink coat, 1600 Pennsylvania ave
nue N.W., Saturday morning. OR.
6226.
The coat’s description was re
markably like that of a White
House stenographer whose hus
band has been accused of influenc
ing Reconstruction Finance Corp.
policies. The White House, as all
but a few—including, alas, our ad
taker—know is at 1600 Pennsyl
vania avenue.
But the telephone number—
ouch!—is Mr. Brannan’s. And the
telephone started ringing at 8 a.m.
yesterday, and it rang and it rang
and it rang.
“Do you still have it?” the first
of a long series of voices inquired.
“Have what?” was the sleepy
response.
“Why the coat, of course.”
That’s the way it was, every 5
or 10 minutes another telephone
call, until finally slowly ebbing pa
tience gave way completely and
Mr. Brannan asked for help from
the telephone company. '
The company began intercept
ing calls to the Brannan’s West
chester apartment phone, and de
manding to know the name of
the party being called. But still
the calls kept coming, until 3 p.m.
when peace finally returned to the
household.
Mr. Brannan got another call
at 7:50 a.m. today from a Star
reporter, who had first to clear
it with an intercepting operator.
(See PUR COAT, Page A-3.)
Counsel for Roosevelt Raceway
Says He Paid Costello $60,000
Gave Gambler Money to Keep Bookies Away
From Track, He Tells Senate Crime Probe
By the Associated Pres*
NEW YORK, Mar. 12.—George
Morton Levy, general counsel for
Roosevelt Raceway, told the Sen
ate Crime Investigation Commit
tee today that he paid Frank Cos
tello, gambling figure, $60,000 to
rid the race track of bookmakers.
Mr. Levy said he made the move
to try to save the fashionable
trotting track’s license after a
State official warned him the
| track was “infested with bookies.”
The attorney, appearing at the
start of a climactic series of, com
mittee hearings, said he paid Cos
tello $15,000 a year for four years
ending in 1949.
Mr. Levy said he hired the
reputed underworld boss “on
faith,” and that Costello did “a
very fine job.” The track had no
more trouble with bookmakers,
| Mr. Levy said.
The witness was asked: “To
what do you attribute Costello’s
ability to get rid of bookmakers?”
"I am unable to explain it,”
Mr. Levy said.
He testified Benjamin Downey,
the late New York State Harness
Racing Commissioner, had warned
him about the bookies, and said,
‘if you don’t stop it, I’ll take
your license away.”
The commissioner* Mr. Levy
said, apparently knew he was
seeking the services of Costello,
named recently by the committee
as one of the Nation’s crime syn
dicate bosses.
Socially elite crowds attend the
track’s nightly trotting races dur
ing the summer season.
Mr. Levy conceded he had
known the reputed gambling czar
(See CRIME, Page A-3.)
Vinson Opposes Move
Of G. 0. P. to Tie Troop
Issue to Draft Bill
Question Not Reached
Yet; Debate May Drag
On for Several Weeks
By J. A. O'Leary
Cairman Vinson of the House
; Armed Services Committee came
out flatly today against a Re
publican move to tie the troops
for-Europe issue to the draft bill.
“Of course, I’m against it and
I hope it will be voted down,” he
told reporters.
The chairman conceded thaf
the Republicans may be able to
word their amendment so as to
make it germane. The question
was not reached in the closed
session of the House group this
morning, but before the draft
bill is reported, the Republicans
plan to offer an amendment to
delay any commitment of Amer
ican ground forces to Gen. Eisen
hower’s North Atlantic Defense
Command until both houses of
Congress approve the commit
ment.
Indications today were that the
troops-for-Europe debate is likely
to drag on at both ends of the
Capitol for several more weeks.
Other Developments.
Other developments over the
week end were:
1. Senator Taft, Republican, of
Ohio called for an immediate cut
off of economic aid to other na
tions in view of the need for con
centrating on defense weaporis for
other non-Communist areas. The
Ohioan indicated he would not
object to a limited “point four”
program of assistance to under
developed areas.
2. William C. Foster, ECA chief,
proposed that econoiriic aid be
continued beyond 1952 in areas
“that Cannot be expected to
achieve complete economic inde
pendence by that time.
There have been reliable reports
at the Capitol that whatever ECA
is voted at this session will be
combined with and closely related
to building up the defensive
strength of the Allies.
This line of thought was re
flected by Mr. Foster himself, who
pointed out that much of the eco
nomic aid program “must be put
aside, except in special cases, and
assistance in rearming the free
world substituted for it.”
Members of the House Foreign
Affairs Committee expect to re
ceive from the administration
within a few weeks a single-pack
age bill covering the next year of
military assistance and the rem
nants of the economic program.
Senate leaders had hoped to get
a final vote in that t$>dy before
Easter on two resolutions, approv
ing with general limitations the
(See FOREIGN POLICY, A-6.)
All Pig Tin Controlled;
Domestic Users Get It
Only by Allocation
RFC to Be Sole Importer;
More Steel Output
Taken for Defense
By Francis P. Douglas
The Goverfiment today took
control of all pig tin and ruled
that domestic users of the metal
can obtain it only on allocation of
the National Production Author
ity.
At the same time NPA desig
nated the Reconstruction Finance
Johnston Strikes Walt in Effort to Re
solve Lobor-ODM Dispute. Page A-4
Corp. as the sole importer of tin,
paralleling the action taken in
rubber, when the General Serv
ices Administration was given
control of all foreign purchases of
that product.
NPA announced that tempo
rary increases of tin allotments
will be permitted in the second
quarter of the year to provide for
the canning of perishable foods
and other essential uses.
More Steel Output Taken.
The agency also took these
other steps:
1. Ordered increases in the per
centages of steel products which
producers must set aside for de
fense orders. The increases this
time range from 5 to 28 per cent,
and are the third time the set
aside percentages have been
boosted.
Where a producer heretofore has
had to accept defense orders up to
15 per cent of his carbon steel
wire production, now the set-aside
is 20 per cent. Formerly, 7 per
cent of electrical sheets and strips
of alloy steel had to be provided
for defense orders; that percent
age now is 35. For eight stainless
steel products, the set-aside has
been increased from 25 per cent to
50 per cent. Thirty products in all
are affected.
Oil Well Program Set Up.
2. Set up a program to provide
steel casing, tubing and drill pipe
for drilling oil wells at the rate
of 43,400 wells a year. It is esti
mated that this program, effective
next month, will require 15,000
tons of these steel products a
month. NPA said the wells must
be drilled to tap new supplies of i
oil and gas.
3. Established a procedure
whereby machine tool manufac
turers may apply directly to NPA’s
machinery division for priorities
in getting tools necessary for the
expansion of the machine tool in
dustry to meet defense production
needs.
4. Announced the appointment
(See TIN, Page A-4.)
Beard Alliance
With Erickson
Is Disclosed
Washington Gambler
Arraigned on Charge
Of Evading Taxes
By James J. Cullinane
Star Staff Correspondent
BALTIMORE, Mar. 12. — An
alliance between Sam Beard and
the multi-million-dollar bookmak
ing operations of Frank Erickson
in New York was exposed before
a United States Commissioner
here today when the wealthy
Washington gambler was ar
raigned on income tax evasion
charges.
Beard, long reputed to be the
dominant figure behind gambling
operations in Washington, was
held under $10,000 bond by United
States Commissioner Ernest Vol
kart on charges of evading income
taxes in 1944.
The Government charges he
owes $478,000 in taxes and pen
alties for that year.
Revenue Agent Testifies.
Only one witness, Samuel Ford,
an Internal Revenue agent, took
the stand today. He testified
that Beard, in his 1944 tax re
turns, reported a net income of
only $16,751.76 after deductions.
The return broke down the gross
income sources as follows:
From a partnership in the
Liberty Athletic Club—$8,577.34.
Interest—$5,005.43.
Rentals—$3,754.30.
Investigation disclosed, Agent
Ford testified, that in 1944, Frank
Erickson sent 9 checks totalling
$180,000 to Washington which
were finally Indorsed by Beard
and cashed at the Lincoln Na
tional Bank.
Erickson, who is now serving
two years on a multiplicity of
gambling charges, admitted that
the checks were intended for
Beard, Mr. Ford testified.
Made Out to Other Persons.
The agent said Erickson told
investigators the checks were
made out to other persons at
Beard’s request. Several indorse
ments appeared on each ol them
before Beard signed the final
I indorsement, the agent said.
I No indication of the receipt of
any money from Erickson ap
peared anywhere on Beard’s 1944
! tax report, Agent Ford testified.
At this point, United States
Attorney Bernard J. Flynn said
the Government rested its case
and Beard's attorneys moved for
dismissal of the charge, contend
ing that no evidence had been
introduced to show that Beard
received any income for himself
merely by cashing nine checks.
“The money may have been re
payment of a loan or it could
have been that he merely in
dorsed them as a favor and
turned the money over to some
one else—there are hundreds of
explanations of how he could
have signed the checks without
receiving any income from them,”
Mr. Kenney said.
More Witnesses Demanded.
Beard chewed gum nervously
while his attorneys, Michael
Gould of Washington and Thomas
E. Kenney of Baltimore argued.
The attorneys demanded at the
outset a full hearing before Com
missioner Volkart. Mr. Flynn
protested that the Government
was not ready “for a full-dress
hearing” but added that he was
prepared to prove a prima facie
case against the rotund defendant.
Mr. Gould demanded during the
hearing that the Government pro
duce additional witnesses to sup
port its charges. The burden of
proving that Beard received more
(See BEARD. Page A-4.)
Reds Get 15-Day Injunction
In Fight on Registration Act
By the Associated Press
The Communist Party today won
a 15-day injunction in its fight to
keep from having to register with
the Government.
The injunction was granted by
a special three-judge Federal court
to allow the party to carry its case
to the Supreme Court.
The three-judge court previous
ly had refused an injunction to
halt registration proceedings be
for the Subversive Activities Con
trol Board under the internal se
curity law of 1950.
That law, known as the Mc
Carran Act, requires the Com
munist Party to register and file
a membership list with the Jus
tice Department.
The effect of today’s action is
to prevent Attorney General Mc
Grath and the board from going
ahead with hearings until the
party’s attorneys have a chance
to seek a Supreme Court review.
Featured Reading
Inside Today's Star
FRIENDSHIP'S PAST—Only o stone
wall and iron mermaids remain ef the
extravaganzas of the old Friendship.
Star Staff Reporter George Kennedy
recalls those days as he views the
successor to Friendship—McLean Gar
dens—on Page B-l.
THEY KNOW THE ANSWERS—The
high school "Quiz 'Em on the Air"
series produces some fancy answers—
and a new chollenger. A progress re
port on the latest contest appears
today on Page A-11.