The Daily Worker Newspaper, January 25, 1935, Page 2

topper, a vital war necessity, ” Page 2s DAILY WORKER, NEW YORK, FRIDAY, JANUARY 55, 1935 ae . BL 6 ee oO meee a Sed ‘ By Marguerite Young doveteii into the basic ar i bankers and indus-~ he Chamber 0: t A in-MeCormack Com! e a new and swift cam trialists united in the Amer Commerce of the Un tiey ion of detit e significant Fascist develop- in the United States, stepping into the plot around General rt only when faced with the danger that it would leak out in the press. Having undertaken to “investigate” the MacGuire-Murphy- Morgan plot, the Committee nev summoned Murphy! Murphy was paying his bend sale ing all the months the es. For some of this, latter devoted himself MecGuire testified to promotin he was w WHAT SERIES WILL PROVE Specifically I shall show 1. During two years before General Butler was approached with the offer to lead the Wall Street army, he had been a focal point of scores of efforts to form mass “patriotic,” “veterans,” “farmers” and “monetary reform” groups arcund programs inc’ ing typically Fascist proposals. The retired Marine General, suspicious of the objectives of at least 40 of these groups, refused to co-operate—in fact, turned over their literature and correspondence to the U. S. Government! The U. 8. Secret Service received information on these organ- izatoins aS early as May 18, 1934, fully six months before the Dick- stein-MacCormack Committee summoned Butler. That summer Paul | Comley French, friend and confidant of Butler, reporter for the publisher David T. Stern’s Philadelphia Record and New York Post, and prom- inent in the Philadelphia Newspaper Guild, was assigned to work on | an expose of American fascism for the Stern papers 3. Although French “broke” the MacGuire-Murphy plot story for his employer, scoring a world-wide news beat, he was summoned shortly afterward by Stern—a close friend of President Roosevelt—and | offered a choice between being transferred to the advertising depart- ment or dismissal. Stern now denies that French was dismissed, while the Post confidentially informs its friends that the reporter was fired for incompetence. French has received no pay since January 26, nor has he been working for Stern since January 10. 4. The Dickstein Committee issued only a chopped-up statement of the Butler-French-MacGuire tes‘‘mony. Only after the hubbub subsided did they issue scraps of the testimony. Meanwhile the Stern papers’ expose of fascism by Stern had “washed out.” 5. From the printed testimony, finally issued in question-and- answer form, the Congressional Committee censored references to the American Liberty League. Financiers backing this League are closely linked with certain officials of the American Jewish Committee—a Jewish organization which is dominated by the banker Felix Warburg, but whose small contributors wholeheartedly oppose anti-Semitism. These American Jewish Committee officials who are linked with Warburg worked closely with Dr. Edward Aloysius Rumley, who is in touch with Nasi leaders. Max Warburg, brother of Felix, came to the United States recently to secure credit to finance Hitler purchases, including Kuhn-Loeb and Co. has developed closer relations with J. P. Morgan and Co. since the Hitler coup. 6. William Randolph Hearst copper interests were under consid- eration by the above group at the time Hearst launched his new anti- Red campaign. Hearst has set himself up to become the American Hugenberg—of course, not anticipating a Hugenberg fadeout. Hearst is adding a network of radio stations to his newspapers, magazines, gold and other metal mines, ranches, Manhattan real estate and movie interests. 7. One Charles Pemburn, who said he was “working for” Hearst, and who was active in the Bonus March of 1982, recently wrote Gen- eral Butler saying he believed Hearst would “again” be interested in backing a veterans’ group—especially if Butler would lead such a group. 8. About the time of the same Bonus Expeditionary Force's en- campment in Washington, whence the soldiers were burned out by Herbert Hoover’s orders, General Butler received a request from a self- described intermediary for the Key Men of America for assistance in forming a veterans’ society out of the B. BE. F. The Key Men of America is a front for one of the most notorious open-shop, spy-em- | Ploying organizations. Harry A. Jung, backer of the Art Smith Khaki Shirts, was associated once with the Key Men. 9. The Dickstein-McCormack Committee knew that a secret Nazi agent worked in the Warburgs’ Bank of Manhattan, but never called Felix Warburg to explain this. The Warburgs have substantial finan- cial interests in Nazi Germany. Certain officials of the American Jewish Committee have kept the entire committee on record as op- posed to the boycott of German goods—something which might hurt American financiel interests abroad. 10. An official of the American Jewish Committee promoted pub- licity in the Jewish press for Father Charles E. Coughlin, the anti- Semitic, radical-baiting radio priest who works closely with influ- ential men who in turn are associated with the American Jewish | Committee. 11. Father Coughlin favors company unions and is opposed to the Workers’ Unemployment, Old Age and Social Insurance Bill (H.R. 2827). 12. The Dickstein-McCormack Committee suppressed testimony that the fascist army which General Butler was asked to lead would be armed by the Remington Arms company, a subsidiary of the du- Ponts, leading backers of the American Liberty League and keystone of the War Department's industrial mobilization plans, | 13. James Rand, Jr., head of Remington-Rand and head of the Committee for the Nation, is working to coordinate the efforts of sev- eral powerful profit-protecting employer groups. Rand is closely asso- elated in the Committee for the Nation, with Dr. Rumley. These two participated early in 1933 in private conferences with bankers, big farmers and industrialists. They discussed “monetary reform” or in- flation, and the danger of “Bolshevism.” Interests which are linked to those of the Morgans, Rockefellers and Hearst converge in the | Remington-Rand Corporation. 14. The programs of a number of new spurious mass organiza- tions, backed by business men, while differing on less important points, have one typically fascist feature in common. They seek to sell the “ American masses the lie that their basic interest lies in protecting ~ property rights at any cost. +) Communist Porty of (he U. »_Sentatives and the Senate protesting the failure of the Dickstein- “S and are recruiting leaders who wield great power through their con- Interviews with the leaders of several of these organizations shows that they all talk alike in expressing fascist ideas. This fascist ideology is spreading rapidly in the capital- ist press of the United States, 15. Fascist and potential-fascist groups are organizing in schools “PROTEST BARRING OF COMMUNI COMMUNIST PARTY OF THE UNITED STATES OF AMERICA DAILY WORKER’ XQ =. CENTRAL OFFICE on tn] et to Weer or met Were Joe Decenber 26,1934, Dear Sir ant wadaa:~ We are nerewith ponding you & copy of the offietal tel ent last week to Chairaan Jorn ¥, McCormick of the *Oongresstonal Committee Inveeticnting Umadmer! oth | Activitien®. We wish to bring te your ettention kr. | MeCermek's nigheanded ard indetene tbl inde ldberately refusing to admit an acthoritative apeleenen Of the Commnntes Party te & public hearing on whet me Annwunced in the proes e & Rearing on Comminiet activition, ‘She Commnist Party offered to anewer any queationt germine to the investigntion of the Communist Party, We wubmit that it would serve the purpose of nccuracy to | mike the attached telagran & part of the official record of the Bouse, Yery traly yours, Copy of ivtter sent by Earl Browder, General Secretary of the - S. to All Members of the House of Repre- jack Committee to call spokesmen f. ‘ : the Commanist Party, 4 ; by an internationally prc | him then French. But, continued Mr. Say General Smedley Butier quoting Robert S. Clark, who sent Gerald C. MacGuire with propesals for a fascist army (the suppressed testi- mony is in bold face): The Published Testimony: | What Butler Really Said: | He (Roosevelt) has either got to get more money out of us, o> has got to change the method of financing the Government, and He (Roosevelt) has either go‘ to get more money out of us cr he has got to change the method of financing the Gov- r ernment and we are going to sec we are going to see to it that he to it that he does not change does not change the me‘heds. He that method. He will not change will not change it. He is with us it. | wow.” I said, “The idea of this group | I said, “The idea of this grect of soldiers then, is to sort of | group cf soldiers, then, is to sort frighten him, is it?” | of frighten him, is it?” to frighten him “No, no, no; not to. frighten him. This is to sustain him when others assault him.” “No, no, no, not him. This is to sustain when others assault him.” He said, “You know, the Presi- dent is werk. He will come right along with us. He was born in this class. He was raised in this class, and he will come back. He will run true to form. In the end he will come around But we have got to be prepared to sustain him when he does.” “Well. T do not know would the “Well, I do not know hat. would the esidentexplain it?” TI said, I said. nections with the press, the church, the schools and universities. 16. The Dickstein-McCormack Committee summoned, but never questioned, Col. John Themas Teylor, American Legion legislative ative and a Colonel in the U. S. Chemical Warfaze Service, Taylor, a close friend of William “hearer, the notorious international fixer, was associated once before same Col. Murphy in a successful effort by the latter to put over a beer vote in the American Legion convention of 1930-—for reasons, I shall explain. 17. The Dickstein-McCormack Committee r ed to follow up testimony that Italian consuls in the United States are participating in propaganda and persecution of anti-Fascists of Italian extraction. I first learned of Wall Strect as to d op mass crganizations to speed the fascist tempo about six weeks before the Dic! -Mac- Cormack Committee summoned General Butler. In official and semi- official circles in the capital one heard echoes of intern nal financiers’ maneuvering to “do something” to avoid the repetition of the San Fran- cisco general strike, Rulers of American capitalism discussed the organization of a group of technician strikebreakers who could be depended upon to keep strategic industries going in case of strike, BUTLER IS SUBPOENAED Later I heard about the overture to General Butler. People told about hearing it second or third hand from the Genoral or his friend, French. The Dickstein-McCormack Committee knew of th repor' for newspapermen had already q d them. But it was not until the story had spread so that there was danger of its being printed that the Committee sought General But story. Then it sent an in- vestigator carrying subpoenas to both Butler and ench. The sum- monses were flashed upon them. Both of them urged that documentary | evidence on the “big shots” behind the agents be obtained before the | story was “broken.” No use! The investigator refused to withdraw the summons. How- ever, he did give assurances that he would put the Justice Depart- ment to work on a report. This report that a Wall Street bankers’ group much earlier had discussed forming a fascist org: ation and | had named General Butler as the leader they desirsd turned up in several places. All reports agree that a dominant role is being played nent partner of one of the great banking firms. This banker never was consulted by the Committec. Another point on which the investigator expressed interest concerned an. Indianapolis “publisher” named Flegg, who told General Butler something about this point—but this lead never was developed, Once summoned by the Commitiee, French was ordered to write. the story for the Stern papers, so that they should not “be scooped on our own story.” He anticipated that the publication of the Murphy- MacGuire episode would merely open a comprehensive series on the whole development of American fascism. He took into his office a sheaf of correspondence of organizations and individuals whence came many overtures to General Butler. All of these organizations, the Stern editors decided, were “racketeering outfits.’ So French was sent cut to “keep General Butler company” for a few days, and then was detailed to the local staff in Philadelphia. He dropped a note to Editor Harry Saylor, who had promised him a bonus if the Butler stcry were handled well, Saylor replied in writing. French says Saylor admitted the Butler story was thoroughly satisfactory, that he didn’t know of any newspaperman in Philedelphia he would prefer to have working for the Butler story hed not produced the exvecied circulation, and therefore thoy could not the bonus. Shortly thereafter, Publisher Stern called French into his office in Philadelphia, FRENCH IS EASED OUT “It was on December 10,” French told me. “On a Saturday. Mr. Stern began by telling me how m he thought of me, end then he said he was going to transfer me to the advertising department, where I could soon become an ex2cutive. I couldn't understand it, of course. When I asked why, he said Mr. Saylor wes not satisfied with my work, nor was the City Editor in Philadelphia. “I said that of course I couldn't transfer to the ad department— because, being totally inexpericnced in advertising, I would be in- competent there. He insisted, however, that I’d have to transfer or he'd have to let me go with two weeks notice. Of course I said I'd have to take the notice. A couple of days later I received a check for two week’s salary.’ In addition to ihis astonishing story, I learned elsewhere that sinee the Stern-French inte: Publisher Stern has been telephoning General Butler, seeking to get tozcther and talk th What I cannot tell. But I wes informed by a x ourcs that ‘ n mentioned to “or that President Rooscvelt wished the General to see the Publisher, y THEY SHIELD PROMINENT LEADERS IN THE FASCIST CONSPIRACY aily’ Reveals Suppressed Testimony of Wall Street Fascist Plot The Committee in session in Wash- ington. Congressman Samuel Dickstein of New York, Dickstein-McCormack In the group are (left) vice-chairman; Congressman U. S. Gnyer of Kansas; Congressman John W. McCormack of Massachusetts, chairman; Congressman Charles Kramer of California, Above is ongressman McCormack, chair- man of the committee. Then I discovered that the Post's officials have told friends— “off the record”—that French was fired “for incompetence.” ‘There are some who believe French was fired for Newspaper Guild ac- tivities. I do not know why he was dismissed. But I know the dis- missal was extremely unusual, for French’s record is as follows: He worked for the Stern papers for more than three years before going to the Philadelphia Bureau of the United Press. In that press as- sociation office, French covered the Legislature, the Lindbergh kid- naping and other important stories—and I have in my possession a sheaf of congratulatory telegrams to French from exevutives as high as Robert Bender, vice-president of the U. P. French was fired from the United Press, apparently for Guild activity, though his employer put out a story that the firing was motivated by French’s doing pub- licity on the side. Mr. French says the story, however, was checked and discredited by Philadelphia newspaper men who formed an in- formal committee and investigated it. Regardless of that—Mr. Stern re-employed French when he was turned out by the U. P.! And I have yet to encounter a publisher who would do such a thing for an incompetent fellow out of soft- heartednéss, STERN DENIES DISMISSAL Therefore, imagine my surprise when I telephoned Mr. Stern on Wednesday, January 28, and asked him whether he had anything to | say about the dismissal of French, and Stern replied quickly: “I deny that French was dismissed or that there’s any more to be said about it.” “Is Mr. French still working for you?” I gasped. “I don't know what his status is now,” he said, “but Paul French Was never dismissed from my employ.” “But Mr. French is not working for you*now, is he?” “No.” “Is Mr. French being paid by you now?” I wanted to make certain of the facts. “I don’t know"—Mr. Stern sounded a bit tired of this—“I'm just looking into the thing now. I received a letter about it this morning, and I understand he was not dismissed.” "Then can’t you tell me definitely. that Mr. French is or is not ig for you still?” “I don’t know,” he said. “Then can you me anything about information I have that since French left your pa you have been trying to get in touch with General Butler, and you told him that the President wanted him to see you?” “Nothing to it at all!” It was a soft exclamation. “Just gossip. You know, nobodys more given to gossip than we newspaper men.” “That's right,” I agreed, “but, you know, nobotiy’s more responsible evaluating gossip which is sometimes true.” Stern hung up. I immediately telephoned French. “What!’ French exclaimed at the story. “Well—I wonder where money is if I wasn’t fired?” i “Were you dismissed?” I asked again. “Just as I explained to you—and I have received no pay since two weeks’ notice expired, and I haven't been working.” “When did that notice’ expire?” “December 26, just about a month ago.’ “And the conversation you recalled to me, the conversation be- tween you and Mr. Stern, you still recall in the same way as you told me?” “Why, sure. It was a choice between going to the advertising departmeni or tivo weeks notice.” “And the date of that conversation with Mr. Stern—do you still re- call ito” “It was two weeks before December 26. On a Saturday, Dec. 10.” In my first ccnyersatior: with French, at the headquarters of the Nowspaper Guild in Phiiadelphia, I asked him whether he thought he had been fired for Guild activity or because of his reportorial connec- ion with the MacGutre-Murphy plot. “I couldn’ answer that,” he saic, “but I know one thing—it couldn't have been incompetence.” Mr. McCORMACK “EXPLAINS” T called on Chairman John W. McCormack of the House Committee investigs “Un-American” activities in Washington two weeks ago. I had t y-three questions to ask him—questions offering him an opportunity to deny or refwie evidence that his committee had delib- erately whitewashed faseisi activities in the United States, Heving admonished me io remember that he was extending to me “the same treatment I would extend to the correspondent of any other newspaper,” Chairman McCormack fixed me with a wolfish glance and allowed me to explain that I came partly out of courtesy to him. “Mutuel courtesy,” he reproved. There followed about a tvo hours’ interview, mostly not for quota- tion. Mr. McCormack began: “There are some things thet should be understood. In the first place, we had only $27,000. First we were directed by the House to investigate Nazi activities. That was the main reason for the passage of the resolution establishing the Committee. Now you will have to keep in mind the $27,000, and the fact that this was a nationwide in- vestigotion and thet there was no clearing house wh: we could pick up our information.” Mr. McCormack removed his glasses and continued severely: “Now, anonymous leads are always dengerous. We got plenty of them, of course, but they are dangerous. Therefore I suggested that in order to protect character reputetion and avoid the danger of anonymous jeads, the Commiitee confine public sessions to evidence which would be adm! le in a court of law. That was just to protecs, character “107, just a matter of decency. After all, the rules of evidence wor for my th ® reputat: are just the rules of decency. “TENDENCY TO MISUNDERSTAND” “Now, there has been a tendency in some directions to misunder- stand all of this, But what is the justice of calling ceriain witnesses who will restify, for example, concerning children in a Nazi camp in the United States? If you were a ten-year-old boy, Miss Young, would you think it just that we aliowed somebody to co:ne in here and tell ut that you were in a Nazi camp, so that when you grow up this thing cculd be exhumed? “Take the Butler story,” McCormack volunteered with a flourish of his hand. “There were several reasons why he wasn't called in public session. In the first place, before he came in, he released his story te the press, From that time on, the thing was paraded in the press and the necessity for oclling him was thezefore eiiminated.” I passed over this a to do, What interested me was Mz, McCormack’s assertion that Diect apology for what the Committee failed | Paul Comley French, reporter for the New York Post, telling of his conversations with Gerald MacGuire (the suppressed testimony is in hold face): The Published Testimony: At first he (MacGuire) sug- gested that the General organize this outfit himself and ask a dol- lar a year dues from everybody. We discussed that, and then he came around to the point of get- ting outside financial funds, and he said that it would not be any trouble to raise a million dollars. What French Really Said: At first he. (MacGuire) _sug- gested that the General organize this outfit himself and ask a dol- lar a year dues from everybody, We discussed that, and then he came around to the point of get- ting outside financial funds, and he said that it would not be any trouble to raise a million dollars He said that he could go to John W. Davis or Perkins of the Na- tional City Bank, and any .num- ber of persons and get it, Of course, that may or may not mean anything. That is, his reference to John W. Davis and Perkins of the National City Bank, During my conversation with him I did not of course, commit the General to anything. I was just feeling him along. Later we discussed the question of arms and equipment, and he suggested that they could be obtained from the Remington Arms Co. on credit through the du Ponts, I do not think at that time he men- tioned the connections of du Pont with the American Liberty League, but he skirted all around it. That is, I do not think he mentioned the Liberty League, but he skirted all around the idea that that was the back door, and that this was the front door; one of the du Ponts is on the board of directors of the American Lib- erty League and they own a con- trolling interest in the Reming- ton Arms Co. In other words he suggested that Roosevelt would be in sympathy with us and pro- posed the idea that Butler would be named as the head of the C. C. C. camps by the President as a means of building up this organization.. He. would. then have 300,000 men. Then he said that if that did not work the General would not have any trouble enlisting 500,000 men. General Butler “released his story to the press.” the only newspapers which had thé story in advance were the Stern For I knew that Papers. I knew that the editor of these papers knew the Committee investigator who subpoenaed Butler and French. In fact; the editor saw the Committee investigator just before the latter went to Butler and Stern. Also, there was the strarige dismissal of French following Publication of the story. I asked Mr. McCormack how his committee happened to receive the “co-operation” of the American Jewish Committee. He exploded, “Let me see all your questions! You know I don’t have to answer questions! I know those questions are asked from a certain premise that I don’t agree with!” REFUSES TO ANSWER QUESTIONS I turned over some questions, He studied: them and -flung them back with a wry grin. Then he began to muse upon the theme of Communism. I am unable to report his thoughts, however, for in the midst of them he caught himself and shouted, “Strike that out! This subject is still under consideration by the Committee and I have no right to have a fixed opinion on it. If you write this down it will look as though I don’t have an open mind on tie subject. And I do | have an open mind on the subject!” In fact, I cannot even report all of the questions Mr. McCormack refused to answer, for in some cases he responded, “Now, just be- tween us—No, don’t you put that down! I know that you can, by saying I refused to answer, create an impression . . .” I think it was about here that something came up which I am quite free to report. It was something I said. It was that I—for one, a least, since apparently the Congressman had never seen another.- wouldn’t mind living in the Soviet Union. “Oh, ho! Are you a citizen?” he asked sharply. And then, though I can’t recall the words, I’m sure there was a certain threatening sug- gestion that I might be exposed for saying I wanted to live under a workers’ and peasants’ government. Well, now it’s out, Congressman McCormack apparently had forgotten that, less than a month before this, he had given a striking example of how his “open mind” functions on this subject. At that time he suppressed a telegram addressed to him by the Editor of the Daily Worker, Clarence A. Hathaway, who, on behalf of the Communist Party, de- manded an opportunity to be heard in what had been publicly sched- uled as an open hearing on Communist activities in the United States. The Communist Party telegram protested against the committee's hastily closing the public hearing after giving it over to the Los Angeles Police Chief, union-haters, reactionary veterans’ leaders, patrioteers, professional red-baiters, military spy heads, Brother Eiks, Ku Klux Klansmen and other anti-Negro spokesmen. “In view of your declared intentions of drafting new measures directed against Communists and Communist Party which would be merely a preparatory step for fascist attacks on the workers’ move- ments as a whole,” Hathawry telegraphed, “the Communist Party de= mands full opportunity for presentation . . . reply to charges of reac- tionary, anti-working class forces now swarming around your Com- mitte CHARGES VINDICATED The truth of Hathawey’s contention that the anti-Communist at- tack was but @ prelude to a general anti-union. drive had. already been preven on that same day, when President William Green of the Amer- (Continued on Page 3) PROTEST TELEGRAM TO COMMITTEE December 18, 1934. John W. McCormack, Committee Investigating Un-Am=> House Office Building, Washington, D. C, The Communist Party vigorously protests against the refusal to hear spokesmen of the Communist Party, accomplished through the arbitrary edjournmens of your committee sessions, contrary to your publicly announced plens, when you were informed of our intention to send a delegation on Wednesday morning to present our reply to the slanderous and distorted stetements made before your committee by well-known reactionaries and professional red-baiters. Your re- fusal to hear authoritative spokesmen of the Communist Party when supposedly you aré “investigating” Communist activities shows up your committee for whet it really is: a tool of the Chamber of Com- merce and the National Manufacturers’ Association in their openly announced. drive to illegalize the Communist Party and to deport and imprison active Communists as the first step toward cutting workers’ wages, speeding up production, cutting relief for the unem- ployed, and introducing fascist measures for the suppression of the workers’ movement as a whole. Your committee started out to in- vestignte Nezi and fascist activities in the United States. Now, in line with the demands of the bankers and manufacturers, for whom the Uearst press has spoken most boldly, you suddenly shift your “investigations” to Communist activities, and, without ever hearing Communist spokesmen, you publicly declare your intention of pro- posing new laws at the opening of Congress aimed at the ‘suppression of Communists. This your committee does in the name of “democ- racy.” Like your prototypes in Italy, Germany and Austria, you cloak your vile attacks on the workers’ movement and on the workers’ living standards with endless talk of defense of democracy. In the name of democracy you become ike midwife for fascist suppression and then open fascist dictatorship. The Communist Party denounces your hypocritical maneuvers and deciares its determination to expose them before the masses of the American public. 4 Activities, ©. A. HATHAWAY, | : For the Communist Party, U. 8, A.