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THE EVENING STAR Washington, D. C. WEDNESDAY. AUGUST 30. ISSI Hopewell Gambler Says U. S. Has Power To Smash All Rackets ly th* Associated Press HOPEWELL. Va.. Aug. 29. The special Hopewell grand jury had some unsolicited “testimony” to consider today, and it came from the man who touched off the investigation into the city’s gambling life. W. H. (Billy) Sampson, who has admitted being the operator of a numbers syndicate, told a news paper reporter the Federal Gov ernment could quickly lower the boom on the Nation's gambling activities. Sampson, in an interview with Charles McDowell of the Rich mond Times-Dispatch, said: "The Federal Government could stop the numbers game and it could break up the horse books and slot machines all over the United States. “If the Government continued to demand accurate returns, con tinued to investigate them, and then would help prosecute known gamblers, the gamblers just couldn’t operate.” “Hard Business to Stop.” The 71-year-old Sampson said “The numbers business is a hard business to stop the way things are now. “As long as your income tax re turn is honest, you can stay out of trouble with the Federal Gov ernment.” (Gambling is not a Federal crime, but a matter for State and local authorities. Some States have anti-gambling laws, others don’t. In Virginia, gambling is unlawful.) Sampson said the Government could drive gamblers out of busi ness overnight by denying the validity of income tax returns on gambling enterprises. Sampson hasn’t been summoned before the grand jury, which is; trying to find out how much num bers racketeering is going on in the Hopewell area. , When the inquiry started some two weeks ago. numbers writers in Richmond. Petersburg and Hope well were reported to have gone on “vacation.” Gambling (Continued From First Page.) the North Beach Amusement Co.,' owned by the Nelsons. Mr. Nelson has been men tioned frequently in her own right. Her husband has referred to her as his business partner and an amateur investigator has testified that she was the one who rode in a suspected numbers car to its headquarters. The car was! stopped by Prince Georges Countv police August 8 but chickens and vegetables instead of numbers were found. Alleged Aide to Testify. Another of today’s grand jury witnesses has been described as one of Nelson’s chief lieutenants. He is Heber McWilliams, sr., said to be the owner of the Ranch House, a house near North Beach, Md., which was described before the Crime Committee as num bers headquarters. In all. q dozen witnessed showed up to testify today. One of them was Robert Main, son of Irwin I. Main, the veteran Democratic Party leader in Prince Georges County who resigned recently as chairman of the board of the Seat Pleasant Bank as a result of dis closures that he approved an un secured $6,000 loan to an asso ciate of Nelson. The younger man said his father also had been sub poenaed but was on vacation. Others Slated to Testify. Also subpoenaed to testify were: Mr. and Mrs. Henry Clay HoganJ They were called presumably in connection with a raid on Hogan’s house in the 600 block of L street 1 ’ N.E. This house was described by Inspector Roy Blick of the vice squad as one of Nelsons places. Milford Burkley, 37, colored who recently sued Nelson for , $50,000, charging damages from an alleged assault. Burkley at ti acted attention of Government piosecutors because in his suit he said numbers operations were “protected” under a complicated code system. He was called be fore the grand jury last week but his attorney said he wouldn’t talk until he got some assurances of immunity from prosecution. Arthur Beach. 313 East Del Ray street, Alexandria, Va. The name of an Arthur Beach appears as a defendant on a 1940 compilation of receipts where Nelson paid fines and legal and bondsmen’s] fees for 23 defendants in Mary land, Virginia and the District. Stenographer Listed. Mrs. Leona Weightman. stenog rapher at Nelson’s farm and wife | of the former manager of Nelson’s bonding business. James L. Pumphrey, Nelson's partner in the P. & N. Amusement Co., who also appeared before the grand jury last week. Mr. Brooks, who returned to await his grand jury appearance after attempting to shield Mrs. Nelson from photographers. As the grand jury picked up its Investigation where it left off last week, there were these other Capi tol developments: 1. Chairman Neely of the Senate District Committee, who has been trying to persuade the Senate Rules Committee to approve a $50,000 budget for a District Com mittee crime investigation, ex pressed optimism that he would get a “reasonable amount of money.” He sounded more hope ful after what he termed a “very satisfactory” conference with Chairman Hayden of the Rules Committee. 2. The Senate District Commit tee's judiciary subcommittee an nounced a long list of witnesses to testify at tomorrow’s opening session on the House-approved District crime bill. The measure was produced after an investiga tion by a House District sub committee. Confidential Report. In another development in the crime picture, the District Com aolssioners made public what ■ h 11 B BPS I I IS SSI B m mm Bii K:> i iB w j waF Jl ST W A B k B H1 PHA fm. «v jEgj i mi ■B. i i mmmmmmKSmm y J ! 188 |a M MM pjß 1 ■ \Vfl H ygl . ■ " ’* JE MB SHROUDS FACE—Mrs. Virginia Madge Nelson, wife of Charles E. Nelson, the target of a Dis trict grand jury probe, swathes her head in a red scarf to avoid photographers after appearing before the grand jury today. With her are Calvin Humphrey (left), manager of the Nelson farm, and Ray Brooks, general manager of Nelson’s North Beach (Md.) enterprises. —Star Staff Photo. police described as a confidential monthly report on vice, gambling and liquor cases made by police during July. The report showed that in 39 cases made by the headquarters gambling squad and 133 in the precincts, the offense was gam bling but the charge was disor derly conduct. Police officials said those arrested for gambling and charged with the lesser of fense of disorderly conduct were usually caught in dice or card games. When it was recalled that Rob ert Knowland, a key figure in the Nelson inquiry, was charged with j disorderly conduct after a num bers raid last winter, officials con ceded that occasionally an unsuc cessful raid results in a disorderly conduct charge. Other Disclosures. For other gambling, the report disclosed that the headquarters squad charged gambling offenses in 31 cases and there were two gambling cases each in the 3d and 10th precinct. The totals do not mean there were 35 different arrests since persons arrested in gambling cases are frequently charged both with a felony and a misdemeanor. The report showed the follow ing precincts made no arrests for either whisky or gambling viola tions: sth, 6th, 7th, Bth, 11th, t l2th and 14th. 1 1 Gambling—how widespread it is si and how the gamblers get away . with it here—has become the J focal point of the agitation for a i new investigation. It was pointed . out on Capitol Hill that when the ; House District Subcommittee • headed by Representative Davis, Democrat, of Georgia made its i crime investigation last year, it 1 steered clear of gambling because . it believed at that time that the 1 ; Senate Crime Investigating Com ; mittee was going to cover it here. , Invited to testify at the Senate! ; District subcommittee hearings on the Davis bill are District Com missioner John Russell Young,! Chief Judge John Biggs, jr., and Judge Albert B. Maris, both Fed eral judges from the third judicial circuit, representing the Judicial! Conference Committee on Sup porting Personnel of the Courts: Corporation Counsel Vernon E. West, Police Supt. Robert J. Bar rett, Inspector Walter Storm, po- 1 lice executive officer. Hugh Riv ers, member and executive of the District Parole Board; Bourbon Dawes of the Hotel Association of Washington; Norman A. Bomzi, Washington Restaurant Beverage Association, and Herbert P. Lee man, president of the Federation of Citizens’ Associations. Hyattsville Registration Registration will be held from 9 a.m. to 4 p.m., Friday, in the' Forty-third Avenue School, Hy-; attsville, for all pupils expecting! to attend grades 1 to 6 who have! not previously enrolled. S FLAT WALL FINISH Professional painters call It the best bal- f ant ed flat wall finish on the market. Made with patented pre-shrunk Thermolyzed Tung Oil, It combines extreme washability, ease of application, one coat hiding and l uniform drying on most types of surface. 1 jBj 1 Use on any surface with any applicator, 1 1 J brush, spray gun or roller. Exclusive Washington Distributors For O’Brien’s Paints Master Painter's Store, 2328 Champlain St. N.W. MM«FREE PARKINGbhbm JUNK WANTED NEWSPAPERS Magazines & Books HIGH PRICES PAID FEDERAL JIM CO. 1125 FIRST ST. N.W. ST. 8686 E 2 Women Reds' Bail Is Cut Second Time J By the Associated Prc&i !; BALTIMORE, Aug. 29.—Fed . eral Judge W. Calvin Chesnut . yesterday lowered the bail of two women Communists to what they can afford to pay. The bail of Mrs. Regina Frank , feld was lowered to SIO,OOO and [ Mrs. Dorothy Rose Blumberg’s to $17,500. It was the second reduc tion for both. Legal representa | tives told the court that was the limit that could be raised for them. The two women have been in city jail in default of $20,000 bail each. Judge Chesnut continued the bail of Philip Frankfeld at $30,000. He told him he could petition for reduction again when he had definite information on how much ihe can raise. Frankfeld, Com ; munjst party chairman in Mary-: 1 land for five years, had asked to ! be freed without bail. 1 The three were among six per sons arrested by the FBI three weeks ago and charged with con spiring to advocate violent over throw of the Government. All are or had been connected with Communist Party activities in Maryland and the District of Columbia,. Originally, Frankfeld’s bail was SIOO.OOO and the other five $75,000 “j 2 Children Hanged, Mother Found Slain By the Attociated Pr*»» EASTON. Pa., Aug. 29.—Police reported today that a 34-year-old woman who has been receiving psychiatric treatment hanged her i two small children and then killed ! herself at the family’s home here. Detective Matthew' Ewadinger said James W. Liebermann re ! turned from night work as a supervisor at the Bethlehem Steel Co. plant in Bethlehem to discover the bodies of his wife and the two children, Marna. 10, and James, 6. Pianos lor RENT Very Low Rates l STerling 6300 1 I PIANO MART I J 1015 Seventh St. N.W. | set by United States Commis sioners. Judge Chesnut reduced these previously and Attorney Maurice Braverman already has been freed on $5,000. The two other defendants, Roy Wood and George Meyers, have been unable to raise the $20,000 and have been refused further reductions. SALE We shall open our new clothing depart ment September 4th with all new merchandise so we are clearing our odds and ends at unusual price. *BS to *llO Regular Weight SUITS NOW $5450 *6B 6l *7B Regular Weight SUITS NOW $39 5 ° No C.O.D. s No Charge No Alterations —e/*—vinc <Ti4th&gJ> Virginia's High Court To Review Conviction Os Lewis in Lee Case By th* Associated Pros RICHMOND, Aug. 29. —The Virginia Supreme Court will re view the conviction of Joseph G. Lewis on a charge of armed rob bery in Arlington. The court’s action was an nounced here yesterday on a peti tion by Lewis’ attorney, James J. Laughlin, who contended the Arlington Circuit Court should have granted a new trial because the county police “wilfully sup pressed material evidence.” Mr. Laughlin said he would argue the appeal in November or January. Lewis had been sentenced to nine years in the penitentiary on a charge of holding up the home of Blight Lee, Arlington gambler, now being sought unsuccessfully by a District grand jury, and tak ing $l6O from Mrs. Lee in March, 1950. Lewis' brother, John William Lewis, turned amateur sleuth and went after Prince George County gambling in an effort to clear him. Mr. McLaughlin’s position be fore the State Supreme Court also contends the Arlington Court erred in refusing to require the prose cution's chife witness to submit to a mental examination. The witness. George W. Kiley, had entered a plea of guilty to the robbery and had implicated Lewis. Mr. Laughlin said today he has asked Arlington Commonwealth's Attorney Denman T. Rucker to call a special grand jury to deter mine whether Lee committed per jury at Joseph Lewis’ trial. According to the attorney, Lee insisted in court that he was "de voting his entire time to the poul try and egg business.” Senate Finance Group Tackles Tax on All Farm Co-ops By th* Associated Press The Senate Finance Committee today makes another stab at the knotty problem of whether to impose the corporation income tax on all farm co-operatives. The committee has been wres tling with the issue since Monday in its consideration of the House approved $7.2 billion tax increase ball. The Senate group has re duced this $1.6 billion by cuts in personal income and corporation excess profits tax rates, is now looking for ways to increase tax revenue. One member said 15 different proposals for taxing co-ops and other groups receiving some form of tax exemption had been pre sented by staff experts, but that the matter was extremely compli cated. Sees SIOO Million Revenue. Chairman George of the com mittee told newsmen Monday he thought as much as SIOO million in additional annual revenue could be raised by a tax on co-ops, mutual savings banks, building and loan associations and some in surance firms, and other groups. Indications were, however, that the committee was closely divided on the issue. The House rejected a similar proposal. The National Farmers Union, STORE HOURS: 9 A.M. TO 6 P.M. Sellout When Advertised Last January! Despite Advancing Prices, We Were Fortunate in Secur ing Just 594 Pairs at the Same Low Price! Sale LEATHER-LINED, CUSTOM-PETAILED BRITISH SHOES JMLL y dtl\ \ J u f. *» Hn Ia \ / After the quick sellout lost Jonu ary, we immediately placed an order for another shipment of these shoes that have been hand-crafted __ for us ky tradition-steeped British . cobblers, using finest quality Eng “ lish and Scotch leathers. Exception al for appearance, comfort and durability . . . exceptional at this price! Sizes 6V2 to 13; widths A, B, C and D (some styles in E). Come early! Shown Top to Bottom: Straight tip medallion, calf, brown. Wing-tip brogue, calf, brown, black. Straight tip, plain, calf, in black. NO MAIL, PHONE ORDERS! LIMIT: TWO PAIRS TO A CUSTOMER ' Plain toe blucher, calf, brown, black. On Sale at Our Washington Store Only Wing-tip bluchtr, Scotch grain, brown. Sat tz F STR “T 1341 F STREET IN WASHINGTON J 1178 NO. HIGHLAND ST. IN CLARENDON 1 (which has many affiliated co-ops, yesterday received a letter from President Truman which it in terpreted as opposing any “unfair tax discrimination” against farm co-ops. The President wrote that his administration always had sup ported them. He said the Demo cratic Party opposed any changes in the law which would curtail “their most effective functioning.” Bitterly Fought Issue. The co-op issue was one of the most bitterly fought in the open hearings before the Senate .com mittee. Briefly, it calls for levy ing the regular corporation in come tap on undistributed earn ings of co-ops. Farm groups contended Con gress had supported tax exemption for agricultural co-ops under cer tain conditions for 35 years. They said this was a studied policy to help the farmer both in his sales and purchases. Representatives of several busi ness groups argued that the ex emption privilege resulted in un fair competition. They said many co-ops had grown to large size and had branched out into nu merous lines of business. Only about half of the farm 1 co-ops are tax-exempt. None of the non-farm co-ops are. RFC Acts so Loosen 1 Jam Up in Housing By th* Associated Brass The Reconstruction Finance Corporation is reported planning to put up millions of dollars to break a credit log jam holding up big defense and military hous ing projects. The RFC would say only that the proposal is before its loan policy board. But informed sources said an agreement to start the program will be an nounced “very soon.” The plan involves the lending of funds for housing projects to relieve shortages in critical de fense areas and on military reservations. The loans would not require I any commitment for banks, in surance companies or other in vestors to take up the mortgage. An informant said there is a backlog of some S4OO million worth of housing projects already approved by the Federal Housing Administration, but which have not been started because of credit troubles. - Hermit Dies on Own Pyre SYDNEY, Australia, Aug. 29 j(CDN). —As New South Wales police reconstruct it, Selby Mat ! thews spent his last days chopping up logs and arranging them in a huge pile. The 60-year-old hermit then lit a raging fire, climbed onto 1 the pile and cremated himself.