Evening Star Newspaper, October 22, 1926, Page 3

5,035,546 BOSCH PLOT S CHARGED Palmer Among 22 Accused of Conspiracy to Sell Plant at Huge Loss. By the Associated Press. BOSTON, October 22.—Charges of & conspiracy between United States officials and. two nationally known financial organizations to defraud the United States Government of $5.585,- 546, by representing the assets of the Bosch Magneto Co. of Springfield at less than half of their true value, were made yvesterday in a suit against 22 defendants filed here in Federal Court by the Department of Justice. ‘The defendants include A. Mitchell Palmer of Stroudshurg, Pa., former allen property custodian and later Attorney General; Francis P. Garvan of New York, former chief of the Bureau of Investigation of the cus- todian; Joseph T. Guffey of Pitts- burgh, who was director of sales for the custodien, and officers of Horn- blower & Weeks of Boston and New York, bankers and brokers, and the Chase Securities Co. of New York. Fraudulent Report Charged. The scheme, the Government charges, was to have one of the alleged conspirators, John A. Mac- Martin, given charge of the books of the seized property as secretary. He made a fraudulent re- port of its assets, it was charged, and at the same time Hornblower & Weeks were informed of the true value and they, with Chase Securitles Co., financed its sale to Martin E. Kern of Allentown, Pa., another of the de- fendants. The sale was made for $4,150,000 and the company was reorganized info the present American Bosch Magneto Co. The Government charges that actually the value at the time of sale was §$0,685,564.0 After the United States entered the war the Bosch Magneto Co., in con- formance with war-time legislation, made a report of the amount of enemy- ownea stock. Then, it is charged, Palmer, Kern and Arthur T. Murray of Springfield, president of the Ameri- can Bosch Magneto Co.. entered into a conspiracy to seize the property, to appoint Murray us general manager, to sell to Kern at less than its right value and then to reor s to the Government. Officers Are Accused. In carrying out this plot, the Gov- ernment charges, Murray became gen- m G. Fitzpatrick, lawyer, became a director and and MacMartin assistant Garvan had knowledge of it, the Government says. George A. MacDonald, Springfield banker, and J. Harry Covington of Easton, Md., were also made defendants on the ground that they had knowledge of the plot, the first as a director of the company and Covington as counsel for Kern. The directors of Hornblower & Weeks, who were made defendants, were Henry Hornblower and Ralph Hornblower, James J. Phelan, Ed- mond L. Geary and Hen Sweet of Boston; John Prentiss, Charles T. Lovering, James A. Fayne, James L. Detroit secretar SPECTAL NOTICES. T0 THE STOCKHOLDERS OF THE MORT- kage Finance Corporation The annual meeting of the stockholders of the Mortgage Finance Corporation will he Takoma Park, D. C., iesday, November the 2nd, 1026, ai 12 noon, for the election of direetors for the ensuing ear and for the transaction of such yther business s may properly come before this meeting. Sernury i ANSUAL MEETIN ol Builtine 'finud,lgn“wml bs Feal eatatg offices o nhnnon ? 10 ",m S S Monday. i 'th 'u'nsn of Fitic il be fasuied at ments, may Do Tia o to stephonson. {reas at o Too between the houre of 3 am, m OSEPH_GOLDENBERS ‘} NOMAS B PETTY & § RTH BEACH (MD.) T ELECTION— 'olls will be open for res nlion “of voters for the election of mayor. treasurs and six counciimen. as follows: Sat.. Oct Pyl hlln TPman Wa 8,1 to i Sat entliied to Yote at’ election o Nbg 2! 020, unless fexjstered on “one of Above dates. Town treasurer will be present t. cel¥o, taxas on both reristr g MeD ;. for, 16 & atdon < dates OWELL, "Ch' d AVID GRUND. Judgen of oAl ? Regist i lection: FREDERIC e lerk. - W RS K DT BE RESPONSIBL debte other than those co JEORGE DEL _COU ks er. th DR OND T TRD_GRAV ird Manna, 33% Tnd WANTED—A n’ URY ture lmm New Ph: mofe INITH'S TRANSHE “Line 360 1.,4 assistant | ’Dunnnn and Herbert C. Clerck oh { York City and Paul B, Skinner | nt Chicago. Phillips Ketchum of Jamaica Plain, Mass., was made defendant as attor- ney for Hornblower & Weeks at the sale at Chicopee in December, 1918. OUTRAGE, SAYS PALMER. Enemy-Owned Company Legally Sold, He Declaves. % Predicting that the Government will not prevail in the Bosch Magneto suit filed yvesterday A4t Boston, "A. Mitchell Palmer, former alien prop- erty custodian and later Attorney General, orie of the 22 defendants named in the suit declared in a state- ment last night that the attempt. of the Government to assess the defend- ants with the difference between the claimed $9,000,000 valuation of the company and the $4,150,000 sale price was an outrageous abuse of powers." Mr. Palmer said he sold-the “dis- loval and enemy-owned Bosch,Mag- neto Co. at public sale, after wide ad. vertisement, to the highest of several bidders, for $4.150,000.” Now, after eight years,” he con- tinued, “the Government, claiming the property was worth $9,000,000, brings suit against‘the purchasers, a number of public officials who con- ducted the business under my direc- tion and myself to recover the differ- ence. No crime, corruption or wrong- doing is alleged, so far as I know, but we are asked to pay, this enormous sum on the theory that the property was worth it. “Financial experts about the value of the property. only know I got for it the highest price T could at a sale conducted ac- cording to law. The Bosch company could not have been sold for $9,000,000. If it had been, the American citizens who bought it would probably have been ruined. “From 1921, numerous investigations of this sale have been made, by grand juries and otherwise, and noth- ing improper in the sale has been shown. Now, after hiring Merton Lewis of New York, attorney for the German owners, a special assist- ant attorney general, the (iovernment brings this suit. This is the same Lewis who in the first investigation appeared as attorney general before a Senate committee and so deceived the committee that Senator Walsh told him nothing that he might say could be believed. “Despite continued efforts of the Germans, alded by our political c¢ne- mies, to undo the work of the alien property custodian during the war-- efforts which have kept us constantly lin the courts to defend our work at our own expense—in not a single case has the German contention so cailed. Tt will not prevail in this icase, but the bringing of the suit is have differed “lan outrageous abuse of powers.” CIRCLE REOPENS TODAY. Sixteenth Street and Massachuletts Avenue Confluence Repaved. Scott Circle, which has been closed to traffic for several waeks because of street repaving operations, will be re- opened at 4 o'clock this afternoon, it was announced today by Traffic Di- rector M. O. Eldridge. - The busses of the Washington Rapid Transit Co., which were re- routed temporarily, will resume their regular routes via Scott Circle: LANDSCAPE GARDENERS i- 3 English 1 Eas ™ol ot RODMAN BROS., 1449 Park Rd. N.W. 4 Phone Col. 6808 | -2BOOKS BOUGHT==" “Bring Them In” or Phone Fr. nua \IG BOOK SHOP,933 G St.N.W. FLAT TIRE? MAE N 500 LEETH BROTHERS " Mr. Home Buyer Have several small houses obtained under defaulted mortgages — five and six rooms, northwest section. Will sell at low prices on easy terms to reliable pur- chasers. This is a real op- portunity. No agents. Address Box 23-H, Star Office OAD RGN IN Toran Give Us Your Next Order —for Printine—as.! be assured of quality and promptness. The National Capital Press 1216:1212 D ST. N.W \ER DISAPPOINT PRINTING IN A HURRY BYRON S. ADAMS Hign prade but not nigh priced. Tith Sireet N OUR EXPERI NCE SAVES YOU MONEY ~in root repairing. “We know Rootiog YOUR Roo'F‘ READY? Is 1t sound. tight, free from teake? We have every facility care of sour roof troudles ‘romply ‘and StTow cost: Call us up' 119 3rd St SEEUSFOR WINDOW SHADES Qur_Madetgmeasure Shades are aual- s RIEEBLATT Window 51_-. and Screens. LES he choicest apples and_ the it doc vars ot ?ne“v-ue?‘nw Cider gu—'zfi &l ‘E:YYJE! 4.0 oncn.ug :“ p B g P unam —_— how.” S.W. 9th & Evarts Sts. N ruinous to take M. Wallace Did you think it possible to get a motor fuel like Rotor-Gas? 1 wish we could get the thousands of Nash owners in the Washington Auditorium some THE EVENING STAR, THLMAN'S RECORD “ATTACKED BY MISH G.: 0. P( Representative, Up for Re-Election, Is Target for Democratic Opponent. . The record of Representative Fred . Zihlman, Republican, of Maryland, wls attacked by Frank M. Mish, his Democratic opponent, in a series of Montgomery County Democratic ral- les last night, at which Gov. Ritchie also spoke briefly. Declaring that Representative R. Walton Moore, Democrat, Virginia, was instrumental in securing an ap- propriation of $14,000,000 for the Arlington Memorial Bridge, Mr. Mish said: *‘This tmmense sum, which will ‘so greatly and directly help-ail of Arling- ton County, Va., is nearly three times as much as the entire State of Mary- land has received from the United States' Government for Federalaid roads from 1917, when the United States made its first appropriation to build Federal-aid roads in the various States, through July, 1926, to which 1|date Maryland has received $3.112,- 996.62 for such roads, and the $14, 000,000 is over and above Virginia's share of the Federal-aid roads dis- tribution. Cites Tax Shared by State. The cost in United States taxes, of which Maryland pays her_ share, of this one bridge joining Wushlngmn city ard Arlington County, is 40 per cent of the entire .imount of Mary land bonds that the State has issued to build our great system of State roads. “What such improvement has Zihl- man gotten for adjacent Maryland?” Mish inquired. r. Mish also declared that Mr. Moore secured the connection of Ar- lington County sewers with Fort My sewer, thus lessening the sewer ct to Arlington County. Then he asked, “Where has Zihlman so helped Mont- gomery County?” “On the other hand,” he continued, Zihlman allowed the bill giving the proposed Loughborough ~Belt Line Railroad—a menace to $50,000,000 in property; opposed by every town and taxing area in the suburban end of Montgomery County, by all the citi- zens' assoclations of the county; by the Democratic County commissioners of Montgomery County and already withdrawn by its sponsors from the DUCK SHOOTING Finest Location on Wicomico River| __ Address Box 28.H, Star Office | MONEY WANTED 8% Firgt Deed of Trust Notes secured on New_ City Homes and Apartments be: ing interest at 8¢, payable in 5 to 1% years. ~Units of $3. 100.000. Certificates of title, sond Jor.-eom- pletion, insurance policies_and sl pa; pers furnished. All transactions closed through Title Company. 129 to 159 Second Deed of Trust Notes to earn 12% to 15% annually, pagable fn 1 to 3" years or monthly installments. ~AH Cashe closed hroush your bank and Title Company. ankers and Finance D Brotocied. Washington Real Estate 1415 Eye Street N.W. Main 9888. Evenings, Adams 16th & Columbia Rd. N.W. Desirable two and four room, kitchen, hall and bath apartments. reception Unexcelled service and lo- cation. Rentals very rea- sonable. The Argonne 16th & Columbia Rd. N.W. Jurisdiction of the Public Service Coms mission of Maryland appointed by Gov. Ritchie, Democrat—to pass the House of Representatives on the unanfmous consent calendar. One voice in objét- tion. would have blocked the bill.” Mere Routine Worlk, He Says. Accomplishments claimed by Mr. Zihlman's supporters and admitted by Mr. Mish were characterized by the speaker as being routine work which any Representative could undertake and consummate. “As chairman of the District of Co- lumbia Committee,” continued Mr. Mish, “he takes good care of the busi- ness interests and builders’ needs of the District of Columbia and so en- joys their support in his campalgns in adjacent Maryland to a greater ex- tent than any Maryland Reprggenta- tive before him. But what has he done for Montgomery County?” Gov. Ritchie stated that the Re- publican candidates should dwell on some constructive ecriticism, rath than on political propaganda. Other speakers were Representative Tyd- ings, Demncratic candidate for Sena- tor, who attacked what he described as ‘Senator Weller's absentes record: E. Brooke Lee, county Democratic leader and candidate for the House of Delegates: J. Bond Smith, who pre- sided at the Takoma Park meeting; George L. Edmonds, candidate for the House of Delegates, and Willlam S. Gordy, jr., candidate for controller of the treasury. SCRIVENER-CASE LAGS. Word was received by police today that the factory experts attempting to identify the pistol with which De- tective Sergt. A. B. Scrivener was killed would probably forward their report to this city early next week. Other developments in the investi- gation of the -Scrivener case had falled to materialize, although the detectives are continuing an investi- gatiol On Ye Way to FoxRall Village America's Smartest of Group Homes 500 and up BOSS ™o PHELPS OWNE, 1417 K Street Real Estate Salesman Experienced The man we want is now employed, but is looking for an opportunity to better him- self. We are one of the largest builders of homes in the city, and can offer you a permanent position with large earning power. The policy and reputation of this company are well known in the real estate field, and in consequence we want a man of the highest caliber only. t'oron{«n RS Main 9300 Your reply will be treated in the strictest confidence. Our organization knows of this advertisement. Address Box 17-H Star Office APARTMENTS FOR COLORED In the Newest and Most Up-to-Date Buildings in ‘Washington Only a few left in each building. GET YOURS NOW. 2nd AND W STS. N.W. 3 Rooms and Bath $52.50 to $57.50 2922 SHERMAN AVE. N.W. 3 Rooms and Bath $50 to $55 1030 EUCLID ST. N.W. 3 and 4 Rooms and Bath Rent, $47.50 to $57.50 Janitor Service in All Buildings References Required For further information see Janitor or J. DALLAS GRADY 904 14th St. N.W. Main 6181 A Handsome Residence Is Available for Purchase Very Much Below Value We should be glad to have you let us show you this home, which is located on one of the most attractive streets tributary (.«mplele in every detail, modern in all its equipment; and is surrounded by attractively planted grounds. It is one of the higgest bargains that has appeared on the Washington realty market in a long time. For Details Call Our Office Any Hour up to 9 P.M. CKEEVER=4GO to 16th Street.. WASHINGTON, D. €. FRIDAY, OCTOBER 29 1926. SUES KU KLUX KLAN. Towa Printing Corporation Seeks to Recover $13,500. » The Towa Prlntlng and Supply Co. of DesMolnes, Iowa, today filed suit in the District Supreme Court to re- cover $11,300 from the Knights of the u Klux Klan and the Empire Pub- l!sh!ng Co. of Washington for alleged breach of contract. The contract was made in connection with a publica- tion known as the Towa Kourier. Through Attorneys Guy A. Miller and H. Winshtp Wheatley the court is told that the defendants made .an _agreement with the plaintiff in De- | cember, 1923, under which the plaintift | invested $12,000 in a printing press, | for which it was to be paid out of the profits on the publication. After $700 had been paid to the plaintiff under the contract, it is alleged, the con- tract was broken and the plaintiff was no longer allowed m publish the paper. Of the many t\pes of walls, each | has advantages as to cost, durability, decoration, insulation, _application, etc. Which will give you the best average for the job you have m mind? ‘A French Chef has .nothmg on you TuA‘r‘s what your husband ‘will say when he tastes beef loaf covered, before putting in the oven, with a paste made of Gulden’s Mustard, lemon juice and salt. Not only beef loaf—but Acores of other dishes take on a new, fascinating flavor when EI.II.IIENE Tth & Big Rooms 3 Porches Tile Bath Hardwood Floors comfort and content. 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