Evening Star Newspaper, June 26, 1931, Page 2

TA—2 w¥» THE . EVENING STAR, WASHINGTON, SHAPIRD: FACING 5 1060 YEARS Former Millionaire Penniless | at End of Skyrocket Realty Career. " (Continued From First Page.) ltf‘l in prison or a fine of $10,000, or t] : The trial was completed in 15 daya Two days before the actual trial open 1t became known yesterday, the de(end- ant ?lannerl to request an attorney be sppoicted to represent him. Into the court room walked Mr. New- myer, who had represented Shapiro at his first trial last December and who had withdrawn early this r. Learn- ihg of his former client’s predicament, the attorney volunteered his services 20 Tequestad ‘the court for two, days | in which to prepare his case. The de- fendant’s first trial ended &rccted verdict on motion by defense at the indictment charging fraudulent ntent was faulty. - Mr. Newmyer presented ‘an able de- fense against the preponderous evidence adduced from approximately 80 Govern- ment witnesses. He used the defendant as a witness to show his innocence of Having devised fraudulent intent in his transactions with 20 or more home pur- chasers whom the Government contend- ed had been victimized. Witnesses Prove Boomerang. ‘The attorney also relied on 20 bank- ers, morigage brokers, real estate oper- ators and title house officials to testily 4s to the reputation Shapiro enjoyed smong his fellow men. This move, how- ever, had a boomerang effect, for the prosecutor drew admission from all but two of them that they knew nothing of the real estate transactions involved in the case. From the -other two character wit- with aj: nesses the Government obtained dam- aging evidence. One, a title house offi- clal, gave a recital of the code of ethics ysed here by successful realty operators on settling ground trusts on property before closing a deal. From the other, & banker, an admission was gained lhlt Shapiro's reputation was Whese hidden trusts cropped out llltnlt The defendant corroborated Govern- ment testimony by asserting he had paid off ground trusts from one to three Years after completing deals with home purchasers, and admitting he had kept these trusts a secret from the purchasers because he alone was obligated to pay, and did pay them off without monetary loss to the property owners. Fraud Is Described. In the majority of counts in indictment the Government cha Shapiro schemed to defraud by send! through the mails a nine-word letter, as * Zfollows: “Inclosed herewith please nnd Te- eorder's receipt for your deed.” The receipt showed the property in- eumbered only by two trusts, which the purchaser had agreed to sssume. Teality, however, the second trust as- sumed became a third trust because of the so-called hidden or' ground trust. ‘When the defendant said he was caught short as the result. of the stock market crash he was unable to obtain money to take clx%eo! these obligations. Sub- sequently the purchasers were called on to settle by the mm;-ne- under uu u‘é.hl f:nechfln sacig - hira n apiro Started g here "19 fluh from a mnc !our years eel student at George Wuhinzwn University. Still in his teens, he borrowed $1,000 to buy out & small real estate business, and for the first year he devoted himself to beftig the jack-of-all-trades in his business, painting and tacking up signs-angd.rent- ing and selling property. Worth $2,000,000. After his twenty-first birthday, he ssid, he borrowed money to buy land and build a house, which he sold for a small profit. One year later he bullt 15 homes and started 20 more, employ- ing the same financial methods. In 1826 -ne took stock and found himself with a fortune of $2,000,000. Not all of it was paper profit; he sald, and with his cash he Started constructing homes on a wholesale scale. Early in the next yeéar he had erected a total of 1,000 houses. ‘A, deflation in the realty market here & short time later cut heavily into his equities. He testified he miade enor- mous sacrifices and was about to “stem the tide when the stock market crashed. ‘This ended all hopes of recouping. He found himself penniless and with ‘a summons to appear before a senatorial investigating committee inquiring into real estate practices here... Prom evi- dence obtained by this body he was brought into court. ; “In summing up his case before the Jury, Mr. Newmyer classed the Govern- ment’s action as “‘persecution to satisfy the boys up on the hill.” Mr; Fihelly, however, demanded the defendant be sent to prison to end his career of “running illegally amuck, defrauding :::'l"}i one with whom he came in con- MRS. EMILY SIMMS, ILL TWO WEEKS, DIES Widow of National Guard Com- mander Was Lifelong Resi- ' dent of City, the Mrs. Emily Redin Dunlop Simms, Widow of Gen. Richard Douglas Simms, jt one time commander of the District Columbia National Guard, died in Emergency Hospital yut:rd-y after an wnaeu of two weeks. She was 58 years © Mrs. Simms, a lifelong resident of gl.s city, was the daughter of the late | chi e orge T. Dunlop, at one time presi- @ent of the Capital Traction Co. £ She is survived by a daughter, Miss izabeth Brent Simms; three broth- s, G. Thomas Dunlop, prominent law- of this eity; Dr. John Dunlop, of 'asadena, Calif., and Walter G. Dun- Jop, of this city, and two sisters, ‘Mrs. Richard A. Urquhart, of B‘mmnre. AMERICANS LEAD ‘Three prcminent publishers who appeared at the court hearing today on the. propcsed sale of the Washington. Post. Right to left: Arthur Brisbane, famous editor of the Hearst newspapers; Mrs. Eleanor Patterson, editor of the Washington: Herald, and Edward B. ‘Washington Post. POST SALE HALTED AS M’LEAN SPURNS ONLY TWO OFFERS (Continued From First Page.) what Peyser's interest in the case was other than a broker. Peyser said that he. also represented McLean in a per- sonal capacity. Fraser broke into the argument to say that McLean had not been informed of the cl e until be- tween 6 and 7 o'clock last night. Thom sald that Wilton J. trustee counsel had gotten Py d | the proposed contract with Hearst -na a. copy of the supplemental petition yesterday afternoon for delivery to Mc- Lean. Lambert asked if McLean had been invited to the conference yester- day. Thom replied in the negative, but said that he had always conferred with McLean on every matter related to the In|estate and he was always willing to consult his wishes. Mercier .then took & hand in the col- loquy. He hrought cut that the original Hearst- offer, which was refected, an the Lawrence offer, which was accepted, both had been amended, with the result that acceptance of either would bring about $300,000 more to the McLean es- tate than originally contemplated. The opiginal offers were for the assets of the post. The amended offers were for the stock. Merciér pointed out that the guardians were in full agreement with the trustees on' the sale to' Hearst. He added that it had been ‘“suggested” that if the sale covered the assets llc- Lean might “make a net Ymm $2,000,000 or $2,5000,000, while if the sale covered.the stock, only the income ‘would go to McLean. He sald, however, that he doesn't “think McLean in his capacity as trustee | would want to grab off this money for himself. I think he is beyond that.” At this juncture Fraser arose and pre- sented McLean's statement, which was 1n’t.hg-torm of a petition opposing the sale, Challenges Claim to Veto. The move came with startling sudden- ness. . After Fraser had concluded, Flannery arcse and told Justice Adkins that, inasmuch as the original plan to sell- to. Lawrence had been dropped and that McLean would not-agree to the Hearst offer, “there is'nothing now be- fore the court.” Flannery told the court that there was no dispcsition on the part of the trusfees to force the sale of the paper, but he repeated statements previously made nns 1t was a losing financial ven- ture, that thi nds of dollars in im- nroumenu would be necéssary, that it hould ' be disposed of, but that under the circumstances there appeared to be ncthing else to do but to al by Mec- Lean’s wish s Mercler, however, differed, ‘declaring that there was “a joker” in that section of the will of John R. McLean which his son construed as giving him veto power, and that as a matter ol fact the veto power did not rest with McLean. Calling luclg:lig'n to the fact t.h.d >3 t.h'fi: per money _an p‘nnq had been lost in the Washington & Old Dominion Rallway, Mercler said, “the estate is in a very precarious con- dition financially. ~Very shortly there won't be any estate left.” Adkins Closses Sale. He said that if it was McLean's judg- ment that the paper should not be sold, “his judgment is not worth a picgyuse.” plcnyune g Quinter, his associate guardian, asked “ifitis Dflllbln that the couna gvln. to let him (McLean) get away it.” Justice Adkins said that the other trustee was unwilling to press for the sale in view of McLean’s attitude, -and that he did not feel like pushing the mwer in view of this. also said that he daubtefl» ‘The judge if clear title could be had by any pur- aser in view of McLean's obj unlus tbe tangle over the will Flannery and the nrflhm mlde n clear that the bidders had done everything to meet their ideas as to terms and that they were mlz attempting to do their duty in ri the estate of a losing venture. Justice Adkins then announced .that "there is not anything pending before this court” bearing on the sale.. He said that the trustees and guardians | ref .| had done their duty and ‘“that- Mr. morrow at 10 o'clock. Fhillips, rector of the Chuzch of the #p'prany, Episcopa), will officiate. —. ;' INDIA ACCEPTS PLAN fi SIMLA, India, ‘June 26 (#).—India's iagreement to’the British’ pmpont isuspend_war - debt - payments the: | r #United Kingdom, as from 227y |, undet e Hoover debt holiday.pian, was.an- wwunced in an official communique grom the Indian government tdday. —————— BAND CONCERT. : L By the United States Army Band ghla evening at the East- qultol mp- =t 7:30 o'clock; William summa. leader, P gmrmun'n luic.h . from “The saosiinl . . Meyerbeer ,Ovenure "Merry leu‘ of wmfior;! -w-uu “Wedding of. the Winds”. . Hall £ Excerpts from ....Luders flluu “Lazgemy. and lnrmuunn Espanisn Gypsy, dance: “El ‘Albaiein Espan B 4% 0 ‘Valverde Zcnilean dance: “Mannana”....Missud -selectlcn from "shmxon nnd’“l;euhh," = o 0| which, ‘were in_debt actios McLean, like any one else, had a right to change his mind.” Mrs. Eleanor Patterson, editor of the Washington Herald, was at the hufln:, accompanied by counsel, Louis G. Cald- well. "Arthur Brisbane, Hearst writer, also was present. After McLean ieft the court room he was served with 10 mmnmp mm o( and restraining order in. the !I.Ilt med by Mrs. McLean to prevent him from -car- -on divorce proceedings in Mexico. hul vrevlcu:ly answered this action. Lambert of the | d | Washington. McLean, publisher and owner cf the —=Star Staff Photo. MRS . L RUST DIE OF HEART ATTACK, Thought Recovering From Long lllness When End Comes—Rites Tomorrow. Mrs. Josephine Wheelwright Rust, | wife of H. L. Rust, died suddenly this morning in her home, 2101 Connecticut | avenue from a heart attack which de- | veloped from an illness of several m‘;l;mR it tionall, rs. Rust was nationally mehwn as president of the Wakefield National Memorial Assoclation, which has been restoring the bln.nphcg of George Planned to Leave City. Mrs. Rust had shown such marked improvement in recent weeks that g’d‘ had been made for her departure y to her Summer cottage, near Christmas Cove, Me. Mrs. Rust was born at Efeter, Va., on May 5, 1864. Her parents were Frederic Dodge ~Wheelwright and Eleanor Anne Hungerford Wheelwrig] She was married in Richmond Novem- ber 16, 1892, | Survived by Husband. | She is survived by her husband; two sons, H. L. Rust, jr, and Gwinn W. Rust; a daughter-in-law, Mrs. H. L. | Rust, jr., and three grandchildren, unry | Jane Rust, Rosalind Rust and H. Rust, 3d. Funeral services will be at St. Psul's Episcopal Church, Washington circle, tomorrow at 11 a.m. Interment will be in Rock Creek Cemetery. o (DENY LUPESCU, HELEN POISONING | | | Report Queen's Health Good and Consort Now in : Paris. By the Associated Press. BUCHAREST, Rumania, June 26.— Attaches of the royal palace author- ized the Associated Press today to deny published reports thiat Queen Helen was | suffering from poisoning taken by mis- take. A high authority said the Queen was in a cheerful frame of mind and was in the best of health, physically and mentally. The reports were designated as “absurd inventions.” As for the same rumor Mme. Magda Lupescu, it was said there was not even good ground for the as- sumption that she was in the country, let alone she had taken an overdose of a sedative in a pique at King Carol. LONDON, June 26 (#).—Published re- ports that Queen Helen of Rum might have taken poison by mistake and benlflcflnlmflueflmwmdh- credited toda; by the secretary of the British hnuon in Bucharest. He said -over the telephone that she had risen eatly and taken s horseback ride in the royal gardens. “There is ab- solutely no truf th in the that Qmenneenhmnllll"heuld The denial was due to a dispatch to the Daily ress from Vienna that at- on her dre-ln' uble by mistake. Elaborating on his denial, the' British mu.kxu to her royal herself. She from a ride and ll lhollt %& a meal. Htrwlu wh-vel!hdmenrdmmh umt k. m'c’:‘lngue on- about ing ; members of the ro; afi’ch Whe.n headquarters asked, “there any truth the re- :flmlklm—"moflehlm with' “There is no truth monsieur. I deny it cate ‘When it was polnted out that he had not even e T’: ot T vl rond T “No, no; ition or denial. MAN WHO LURED MURDERER -INTO ARREST ENDS OWN LIFE Fean'ng Revenge by Garland Sfiith,'Convicted, Brooding Trapper of Slayér Commits Suicide. By the Associated Press: LINCOLNTON, N. C., June 26.—The man who led ou‘lmd Smith, gltl'{h ., for ing two peace officers, into the hands of the law, killed himself -here y. = ‘He ‘was Joe P. Hull, .27 -years old. learned of Smith’s deed i| par 4 on the the fairway with a 300-yard drive, but 1 spooh weére I W pnllon] : Just been highness 7 was morning. eries con. There s in it hatever, gorically.’ a Levy, W0 women ; ! RYDER CUP PLAY - Loy FRIPAY, J A Speed Plane’s Last, Flight UNE - 26, 1931, | m‘@l OF SHIP DOOLITTLE WAS GROOMING FOR ‘l'll'l‘l. Sarazen and Farrell 1 Up af ‘ Ninth—Hagen and Shute Are 5 Up. By the Associated Press. COLUMBUS, Ohlo, June 26.—Setting the pace under a blistering hot sun, Gene Sarzen and Johnny Parrell, United States, led their British rivals, Archie Compston and Billle Davies, 1 up, at the ninth hole of their two-ball foursome 'in the international Ryder Cup competition today at Scioto Coun- luge Galleries Follow. In the (ourt.hnMMml'chh t away, the American pair, , stood 1 up at the u:lrd es of 0—4—6 ns _com- iest Whit- wi combe and Syd lhlhrbrook Despite ‘the heat, which was officially in the shade at 10 am. (E. 8. T. and going up, several thousand perspir ing entbusiasts were in the galleries fol- lowing _the quartet of t'o-hsu four- somes on today’s program. Sarazen and Farrell, rtners in uuny an exploit, led the home forces lclhl against Compston and Ocne and John were lucky to halve the first bole, ‘410 yards, in 4. John's drive was in the rough and Gene's ap- proach & trifie short. Farrell rolled the next one dead and Compston's 30-foot bid for & 3 missed by inches. They halved the second hole in 5, one over par, after Farrell and Compston both put the second shots into sand traps bordering the green on this tm-ylrder and halved. Halve Third Hole. After a half on the third hole in par 4, Davis sinking a 12-footer to save the Britons, Farrell and Sarazen gent 1 up ::.d the llo-y.:l’d fourth. ene negotiated a partial stymie for a ptrlwflnlfmgfiu putt rimmed the cup. Farrell and Sarazen went 2 up at the fifth with a par 4. Davies pushed his second shot back of a tree, Comp- ston was unable to go for the pin and the British took three more to get down for & l. They halved the 500- yard sixth in regulation fives despite the poor second shots by Compston and Farrell. Gene and John went 3 up at the seventh, their par ing good enough to win nlthou[h hml} missed an 8- footer for a birdle. They lost the eighth, where Compston laid Sarazen a stymie, also the ninth as Compston hit his tee shot within 6 feet of the pin and D-v‘ln holed out for the birdie. 44434545336 Out 4 5434546338 ,Out . 45446555240 Hagan Play Watched. Hagan, the American ca) Duncan, the keenest ‘nll' rivals in the mmnment hit tee shots for the next foursome. Hagan teamed with Shute, the slim Ohio star, and Duncan with big Havers, a former British open £ hm 500 spectators galloped afte: after hhl-l'l.lufi match, eager to watch the Hagen-Duncan duel, even though it meant they only hit alternate shots. Hagen and Shute, despite a poor drive by the former, jumped in front with a first hole. Duncan split in and Shute made a brilllant recovery for the American side to the edge of the green while Havers' shot faded well to the Britans took three ge! Hagen sank s 35-foot putt for a 4 on the second hole to send the Americans 2 IID ws the British lost a shot in the rough. They halved the third with Ss. Hagen's putter sent the Americans 3 up at the short fourth, where the home captain sank a ' 15-footer for a . On the 445-yard M:‘lh!g Shute 55 535 ; concerning | recovery “BABY FACE" BANDIT IS GIVEN LIFE TERM Wee Willie Doody Sentenced for Slaying Police Chief of Chicago Suburbs. By the Associated Press. CHICAGO, June 26—Wee Willle the “baby-faced” bandit and tenced to it - | to_1929. HE remains of the 400 Racer, designed by Ma]. James Doolittle and which he was grooming for the coming inter- naticnal speed tests at Cleveland, as it appeared in a field near the Curtis-Steinberg Airport after it had fallen froth an altitude of 250 fget when it lost a left alleron and portion of the fabric from its wing. * Doolittle had & narrow escape from death and landed safely after uunk to the trusty wu:huu. —Wide World Photo. LAMONT T0 RADID DEPRESSION VIEWS Forum ' Address Tomorrow Next to Last in Cabi- net Series. The obligation upon business to weather periods of industrial depression through its own efforts, with the Fed- eral Government co-operating, rather than through any great superplan im- posed by governmental supervision, will be emphasized tomorrow by Robert P. | Lamont, Secretary of Commerce, in the National Radio Forum, arranged by The | ‘Washington Star and broadcast over a | coast-to-coast network of the Colum- bia system. This is next to the last of the cabinet | series of radio talks showing what the principal agencies of the Government are doing to help the people by the special advisers of the President. Th~ final broadeast in the series will be by Secretary Willlam N. Doak of the Department of Labor, July 4. Business Man's Burden. Secretary Lamont is preparing to give a solemn, non-political review, stress- ing the fact that the individual busi- ness man through his business organ- ization and in the light of fects gathered by the Federal Government must meet such crises. He will point out that each of these periods of de- pression has taught some lesons as to how business can fortify itself against similar recurrences. For example, that the depressions up to 1907 taught the weakness of the banking system, which has been strengthened by. the Federal Reserve system: that the 1921 depres- sion showed the evil of large mven- tories and that the present de; has shown business that it should be prepared, possibly, to carry large re-| serves to meet difficulties of this sort and to better balance production and consumption. ‘The Nation-wide broadcast of Sec- Tetary Lamont will give a general re- view of the functions and activities of the different bureaus of the Department of Commerce, with special emphasis on the problems that have arisen, and accomplishments during the past two years of business depression and un- employment. He 1 call attention briefly to the work that is always being done by the Department of Commerce, important regulatory work, such as pro- tection and safeguards for navigation. ‘The bulk of his speech will be devoted to a development of the basic idea of the de&smnent—lor , Tesearch, an agency that provides facts for business as a guide and ald in its enterprises— such as the distribution census, studies in retailing, the facts disclosed by the division of current statistics, simplifica- tion of standardization. Discussion of Problems. He will discuss in a general way the problems brought* up during the de- pression and the efforts of the De- partment of Commerce to ald business in making readjustments—such as stimulation of public works through the division of public instruction, and the ald the department has extended to the President’s Emergency Employment Committee. Secretary Lamont, who has been heading up the Government's activities for relief nl business during the greatest periad of industrial depression this country has ever experienced, know; business and mduatry from the grouni up. He Is aduate engineer and lor mora finn 0 years was an officer American Steel Foundries and ptuldent ol that corporation from 1912 He has been an executive officer or director in many other finan- chief of ordnance ofloe War Department. in 1918 and 1919. He has for years been interested in sclentific research and is & member of nearly a score of the most important Government RIVAL EXPOSITION IN ’32 REPUDIATED BY FETE OFFICIALS b (Continued From First Page.) an countries; 1934, to Interna- Americ tional 'rnvol Show and Overseas Ex- | H position, with European features; and 50 on down through the years to come.” park, to cover 12 wrs, would be a trade and cultural cei al 'D Walter, with i‘l'_ May Take Action. Walter advised Bloom, “I have no Forum Speaker SECRETARY LAMONT. DRY CHIEFS GATHER HERE T0 PLAN DRIVE “Board of Strategy” Designs Fresh Support for Pro- hibition. By the Associated Press. More than a score of prohibition lead- ers gathered in the Capital today as members cf a “board. of -strategy” to lay plans for co-ordinated action in the 1932 presidential campaign. Leaders in the group, composed of Tepresentatives of both new and old line prohibition organizations, disclosed the board purposely was meeting as such nearly a year in advance of the coming major party conventions in or- aer to rally support for those two oc- caslons. As the board met this morning, how- ever, one of its members stood pledged to the statement that the organized dry forces thus far had fallen short in their plans and that his newly-created group planned to seek “fresh support for the dry law.” Dr. Daniel A. Poling of New York, chairman of the Allied Forces for Pro- hibition, asserted yesterday he believed this new support, from sources he said thus far had not been wuchad by or- ganized dry ecorts, necessary "vellh the balance between defeat And victory 1n 1932.” In ‘discussing detalls of the allied forces’ plans for a umpnl'n into 257 cities in as many days, Dr. Pollng he believed that “instead of disturbing the support now accorded the Aml Saloon League and the W. C. T. U,, will bring them fresh s “Under no circumstances,” he sald, “would a single dollar of the funds now grle’dl!d filnuwve gone to any other ‘The compaign, as he outlined it, would start in Columbus, Ohio, September 8. ‘Two appointed speakers would hold a series meetings there on that day, to be followed by two more on the sec- ond day and two more on the next day. By the third day, he said, the first two speakers would have been to Indian- apolis and on to St. Louis. ‘The plan contemplates leaving in each of 42 cities on the first swing an organized dry group prepared to expend i'-lell in its own locality. e S e o en ! an more than 20 State organizations “that had begun independent action have unltzd with the new natignal move- ment.” Otker plans of the new group I.m:l\nd.1 the publ of a weekly newl e distribution of “special approve of movement with the .n‘:! MERRIAM AWARDED ROOSEVELT MEDAL Capital Naturalist Honored With Hamlin Garland and Cardoza. Dr. C. Hart Merriam, distinguished ‘Washington naturalist, has been award- ed one of the three Roosevelt medals given each year by the Roosevelt Me- morial - Association distinguished ¢ Roosevelt awards, established the association, for of the following, fields: Adminis- - | tration_ of public lic office, public and international law, indus trial , conservation of natural re- sources, social jus- tice, natural his- tory, outdoor life, national defense, leadership of youth, American history and literature. Besides Dr. Merriam, the recipients this year were: Hamlin Garland, the novelist, and Judge Benjamin Cardoza of New York. Long Service Cited. “C. Hart Merriam,” says the an- nouncement, ‘“receives the Roosevelt medal for distinguished service in the advancement of the study of natural history. He founded the division of or- nithology and mammalogy in the Fed. eral Department of Agriculture in 1885 (later called the United States Biologi- cal Suryey) and, as its chief for 25 years introduced and study which constitute the—basic lt.rletlln of the present school of Amer- fean M , regarded by scientists as the most advanced in the world, “He brought the study of nllul’ll history out of the laboratory in open spaces of field and wood and sky. Theodore Roosevelt in his ‘auto- biography’ acclaimed his leadership.” Dr, Merriam, who received his medi- ul denee at the College of Physicians Surgeons, New York, after stus lt t.he Yale Sheffield Scientific School, practiced medicine from 1879 to 1885. He ied as chief of the United States Biol Survey in 1910 to conduct biological and ethnological Investiga- tions under a special trust fund estab- lished by Mrs. E. H. Harriman. He conducted many biological explorations in the Far West and in 1917-1925 was chairman of the United States Geograph- hic Board. He was president in 1919- 1921 of the American Society of Mam- mlloufl.l and belongs to many scientific Dr. Merriam. Medal of Solid Gold. ~The medal is 3 inches in diameter, I.‘o! solid gold and shows on one side a"head of Theodore R‘ooce\vel:‘,1 and on ‘We | righteousness and peace, I choose righte- ousness.” James Earle Fraser was its designer. ‘The Committee of Award was com- posed of Mrs. C. Grant La Farge, chair- man; Henry J. Allen, Guy Murchie, Al- bert Shaw, E. A. Van Valkenbufg, Wil- liam Allen White and Owen Wister. DELEGATES ARE NAMED FOR LEGION SESSION Stuart Walcott Post Candidate for ‘Watson B. Miller Trophy ‘Will Be Chosen. Delegates and alternates to the Dis- trict American Legion Convention, to be held in August, were nominated at & meeting Tuesday night of Stuart ‘Walcott Post, No. 10, of the Legion. A committee ‘was named at the meet- methods of research | 3¢’ BUSINESS BUREAU NIPS FRAUD HERE Rothschild Gives Out Report at Meeting of Trustees in Press Club. Economic conditions during the pnn fiscal year have led to a notable de- crease in organized financial frauds, but at the same time have contributed to increased demands upon the facili- tles of the Better Business Burcau, ac- cording to the annuasl report of the bureau submitted today by Louis Rothschild, director, The report was made pnbhc at the annual meeting of the board of trustees of the bureau in the National Press Club today. Credit for the practical elimination of promotors and salesmen of fake financial enterprises is given in a largs measure to the bureau’s vigorous edu- cational campaign, “Before You Invest —Investigate.” 'The program, accord- ing to the report, has resulted in bring- ing to the bureau during the past year 2,335 queries, marking a considerable increase over the number for the fiscal year ending June 30, last year. The total number of such inquiries into financial activities since the bureau or- ganized its campaign has now reached 11,853, according to Rothschild’s report. Lauds Business Bureau. Fleming Newbold, business manager of The Evening Star, in a brief address to the gathering, lauded the Better Business Bureau for the high practical value of its work in the protection of the public against fraud. Mr. Newbold pointed out that The Star always has insisted upon truth in advertising and said the Better Busi- ness Burcau had been of tremendous assistance in this regard. Y. E. Booker, local investment bank- er, and J. F. Ballenger, formerly of the local Better Business Bureau organiza- tion, also addressed the meeting on phases of the bureau's activities. The public distribution of facts re- garding questionable promotions and the proper prosecution of the promoters of fake securities has been a factor in stemming the tide of financial frauds, the report states. Alds Capital Prosperity. “The Better Business Bureau has contributed to the maintenance of pros- perity in Washington by constructively striving for ‘Truth in Advertising and Integrity in Business’ the chartered purpcse of this organization,” the re- port, states. “Public confidence in legitimate busi- ness, the harmonious relationships be- tween the consumer and the trade and profession, are reasons why Washing- ton has avoided much of the so-called depression reported from other parts of the country. “Sound publicity has been the ‘big stick’ in the Better Business Bureau,” the report continues. “This medium has been utilized in informing the public what \legitimate firms and businesses were doing for their protection, and in warning agianst and exposing fradu- lent schemes to. take advantage of the unsuspecting individual.” Gives Credit for Assistance. The report, pointing out that the bureau is in every sense a “co-opera- tive enterprise,” gives special credit to the aid furnished in furthering its work by the following: The newspapers, which have published beneficial news and refused misleading advertisements; the radio stations, notably WRC, WMAL and WOL, which have given time on the air for the benefit of the house- wife; the District Attorney's Office and the Corporation Counsel’s Office, for rvices_and assistance furnished; the Police Department, Detective Bureau, istric; Commissioners, Federal ‘Trade Commission, Department of Justice, Post Office Department and the Bureau of Standards, whose co-operation has been most effective, the report states, and “the local business ‘men, who through their financial and moral sup- port make this protection work possible also deserve the npprecuuon of our entire community.” ‘The volume of work handled in &he merchandise division of the bureau in connection with the “truth in adver- tising” paign has materially in- creased during the past year as com- pared with previous years, to the report. The total number cases handled was 5,407, exceeding last year's total by 686. The number ine cludu 2,540 shopping in' 377 consumer complaints and 1,498 o'.her investigations. year passed without a report of no-nlled “bucket shop” activities, ac- cording to Mr. ild's Last year one of the biggest rackets reported here was exposed. ‘The promotion of a million-dollar market and garage scheme started by a promoter of unfavorable record was “ni) in the bud” through prompt action by the Better Business Bureau, the report says, adding: Stock Frauds Nipped. “Another promotion stopped in its deception was that which announced that the enterprise would buy 3 ‘would operate insurance companies and would engage in sundry forms of ‘big’ business. The stock being offered was persoral stock issued to the promoters for services, and not one cent had been fid into the treasury of the corpora= n. “This was another example where prominent men had loaned the use of their names without investigation. ‘The promotion was stopped and one of those primarily responsible for the at- tempt is now a fugitive from justice, because he was successful in victimizing one person to the extent of $3,000. “Typical of this type of promotion worked from time to time in -our city ‘was the wholesale offering in Wash- ington of stock in a British television company, which stock was listed on the London Stock Exchange and quoted there at less than 75 cents a share. This stock was sold in Washington by ~|a group of 10 salesmen at from $2.50 ahnre to $10 a share, depending on the gullibility of Lhe victim,” g LIQUOR RING NET GETS 11, BREAKING UP SUPPOSED GANG (Continued From First Page.) ;| alias Schiattareggia, arrested M’: 47 C :|BOSTON “BULL” FAILS TO COW "~ BROWN ON PASTURAGE STAND street southwest; , . An- tonetta Pelicano, arrested at 1321 Penn- sylvania avenue southeast; bond, $1,500. Bruno Cristarila, who surrendered vol- unurfly to police this. morning. His 'll flxed at $1,000 to Sergt. Little, who con- dutedthe” tpvestigation. and mads fom arrests under the supervi of pl"n'- charge of transportat Police state that liquor wu manu- factured by the gang at 88 K street mortheast, while retailing of the liquor alleged to have been done at/111lz 't xeumlnflueuum er Tutnage for 11 o:lo.c,k .Yllly it will_es- station in Me«