Evening Star Newspaper, November 26, 1934, Page 1

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WEATHER. (U. 8. Weather Bureau Forecast.) Cloudy with slowly rising temperature, probably rain tonight and tomorrow; low- est_temperature tonight about 44 degrees. Temperatures—Highest, 49, at 3 p.m. The only evening paper in Washington with the Associated Press News service. =ty yesterday; lowest, 35, at m night. idnight last Full report on page A-11. Closing N. Y. Markets, Pages 17,18&19 ch Entered as sec post office, W YUGOSLAVS DEFIED BY ITALY REFUSING FRENCH REQUESTS T0 ETRADTE TWO Turin Court Rules Against Removal of Dr. Pavelich and Kvaternik — Second Blow Within Two Days. 33,081. ADDED COMPLICATIONS IN EUROPE FORESEEN Austrian Government Reported Supporting Budapest and Rome Immediate by in Demanding Hearing of Accusations Budapest Authorities. (Copyright. 1934, by the Assoclated Press.) ROME. November 26—Italy today openly defied Yugoslavia's attempt to investigate the plot that resulted in the assassination of King Alexander at Marseilles last month by refusing France's demand for the extradition of two alleged principals The Court of Appeals at Turin ruled against France's request for Dr. Ante Pavelich, alleged terrorist leader, and his supposed assistant, Egon Kvaternik. Both have been under arrest in Italy since shortly after the murder of Alexander and Louis Bar- thou, the late foreign minister of France. A curt three-line communique issued this afternoon announced that the Court of Appeals had decided the extradition “must not be conceded to France.” This is the second blow Italy has delivered to Yugoslavia in two days. Demanded Charges Be Heard. On Saturday she demanded flatly that the League of Nations Council immediately hear Yugoslavia's gra charges that the Marseille assassina- tions were plotted in Hungary, and an Italian government spokesman said Italy and Hungary will be joined by Austria in presenting a united front at Geneva when Yugosiavia's charge is heard. France, acting on the urgent sug- gestion of Yugoslavia, demanded the extradition of Pavelich on the grounds that several alleged accomplices ar- rested in France named him as their leader. He was the acknowledged head of the Ustashi, a Croatian or- ganization aimed at liberating Croatia from Yugoslav control. ‘That France's demand would be met with a negative reply was a foregone conclusion in view of the fact that France had denied 42 Italian requests for the extradition of political exiles in recent years. However, diplomatic sources said that the Italian decision, coming at this delicate moment, would further complicate the situation and embitter the Italo-Yugoslav relations still more. Denial Reasons Not Stated. ‘The Turin court communique did not state the reasons for the denial of the extradition request, but official sources said they were based on legal points of difference between ordinary crime and political crime. The Court of Appeal decision meant that ex- tradition is definitely denied by Italy since, by the law, the minister of Justice, who is given the right of final decision, must issue the same verdict as the Court of Appeal when that court decides in favor of a person under arrest. Reports from Vienna are to the effect that the government of Chzm-I cellor Kurt Schuschnigg strongly sup- ports Hungary and Italy in demand- ing an immediate hearing of the Yugoslav accusations. These three nations will request an investigation by the League of the entire question of political exiles. Negotiations for an Italo-French rapprochement will not be halted by the present situation, the spokesman said. He pointed out that France did not present a note at Geneva to ac- company the one submitted by Yugo- glavia as did Czechoslovakia and Rumania. Italian newspapers editorially called particular attention to this fact and concluded, therefore, that France does not support Yugoslavia's charge. A spokesman characterized the Bel- grade action as a deliberate attempt | to introduce a wedge into Italo-French negotiations Premier Mussolini's attitude toward the Yugoslav move at Geneva changed overnight, it was revealed today. Un- til Friday he wanted to play it down in order that the political atmosphere of Europe not be disturbed. When the Yugoslav letter, however, was published, Mussolini was said, to be amazed at its allegedly violent tone. He decided Hungary could not be permitted to remain under such charges for nearly two months with- out having a chance to reply to them and is now pressing for an early hearing. Pavelich, a Croat, has lived in Italy for at least a year, adding complica- tions to the case. Both he and Kvat- ernik deny any connection with the plot. Mussolini's newspaper, Il Popolo d'Italia of Milan, yesterday warned that Yugoslav charges at Geneva of Hungarian complicity in the assassi- nation threatened to upset any chance of calming the European situation. TROOP MOVES DENIED. Austrian Ministry Terms Reports “Willful Lies.” VIENNA, November 26 (#).—The ministry of defense emphatically de- nied today reports abroad that Austria had moved soldiers toward the Yugo- slav border. A spokesman said, “They are willful lies invented by irresponsible persons and intended only to intensify the ready complicated European situ- ation.” Home Fire Kills Couple. ADRIAN, Mich., November 26 (#).— Mr. and Mrs. George Wilson were suf- focated by smoke early today when fire swept their farm residence. Neigh- bors carried Wilson, 74, and his wife m the burning house, but they Jver regained consciousness. d class ma ington, D. By the Associated ter G Press. among other things, directed them to go to the White House imme- diately. There. a couple of hours later, a statement was issued jointly by Ickes and Moffett indicating har- mony between them. Exactly what was concluded by the telephone conversations with Warm Springs was not made known. It was said, however, that Mr. Roose- velt did not applaud the original statement by Ickes indorsing a huge low-cost construction program. He was reported to have taken the same attitude toward a subsequent state- WASHINGTON, ¢ Foenin WITH SUNDAY MORNING EDITION n. @, \Moffett and Ickes Reported Called on Carpet for Squabble Roosevelt Is Said to Have Taken Both to Task in Dispute Over Housing |S|AYING OF GIRLS Proposal of Secretary President Roosevelt was said in acministration circles today to have ex- | pressed displeasure—albeit in a smiling, jocular manner—to both Secretary Ickes and James A. Moffett, the housing administrator, over their recent clash of opinion on Federal versus private housing. A usually authoritative source told the Associated Press the President . called Ickes and Moffett from Warm Springs, Ga., at 9:30 a.m. Saturday and, | Secretars Ickes. ~ Ment by Moffett would be charged would wreck Moffet finding fault with o "t what Ickes had said. | At the Housing Administration today it was said a large number of business men had given assurance in letters and telegrams that they supported Mof- fett’s contention that low-cost construction on which only 3 per cent interest t's program. Under it the Government guarantees mortgages drawing 5 per cent interest. Ickes and his aides maintained complete silence. (Continued on Page 2, Column 8.) TAX BOOST SEEN INEVENT OF BONUS i President Will Insist on Pro- gram if Legislation Is Passed. BY J. RUSSELL YOUNG, Staff Correspondent of The Star. WARM SPRINGS, Ga., November 26.—Close beside a blazing log fire in the living room of his little white frame cottage here, President Roose- Robinson of Arkansas, majority leader of the Senate. and Pat Harrison of Mississippi, chairman of the powerful Finance Committee of the Senate. This is the first of a series of talks with administration and congressional leaders Mr. Roosevelt will have here before returning to Washington, and it is understood that the President hopes to have his legislative program in fairly definite shape before Sena- tors Robinson and Harrison depart. Also it is known that the President wanted to discuss with them certain features of the budget for the next fiscal year, which is now being made | ready for the opening of Congress, | and the question of taxes. Discusses Finances. Though today’s parley was mapped to cover legislation in general, Mr. { | discuss principally finances. In this connection the proposed two billion | dollar soldier bonus held the atten- tion of this little group for a con- siderable part of their conference. The President is known to be insist- ing upon strict budget limitations providing for general relief. He does not look upon the payment of the bonus at this time as in the category of emergency relief, and he is op- posed to charging it up to anything but direct expenses of the Govern- i ment. Therefore, Mr. Roosevelt will insist | that additional taxes be levied to raise | the necessary additional revenue to | meet such a Treasury outlay as would | be the case in the event of the pas- | sage of the bonus legislation at the comjng session of Congress. On numerous occasions during the ! past few months President Roosevelt |has let it be known that he is un- | alterably opposed to increasing taxes | at this time. He would be happy if | some of the taxes could be either | abolished or reduced, but despite the fact that the revenues have gone beyond the early calculations, it is doubted if this will be possible during the forthcoming session even in the event there is a raid on the Treasury as would be the case of passage of the soldiers bonus. - MINISTER OF FINANCE FOR JAPAN RESIGNS Fujii Seriously Ill After Losing Battle With Militérists Over Budget. By the Assoclated Press. TOKIO, November 26.—Sanenobu Fujii, minister of finance, who is suf- fering from a nervous and physical breakdown as a result of his futile efforts to prevent large increases in military appropriations, resigned today. Physicians said Fujii is seriously ill. Camphor injections were necessary. During the recent disputes over the budgets militarists vigorously de- nounced Fujii. Fujii was loser in the “battle of the budget” Friday when the cabinet voted large increases in army and navy funds. By the Associated Press. * The National Planning Board thinks a bit of star gazing might help in charting the course of the ship of state. The board reasons that the history of climate and how it changes may have important bearing on economic planning and that astronomy, if some astronomers are correct, may throw light on climate. Perhaps with floods and droughts velt today is conferring with Senators | | Roosevelt is taking this occasion to | FULL VINDICATION SOUGHT BY INSULL | Utility Magnate Confident of Acquittal in Other Pending Trials. By the Associated Press, CHICAGO, November 26. — The dream of complete vindication surged high in Samuel Insull today. His first battle won with the speedy acquittal Saturday of himself and 16 co-defendants on charges of a $100.- | 000,000 mail fraud, the former finan- cier said: “I am ready to face these other trials that are pending. I have been vindicated in this case, and I am confident that I will be vindicated in the others.” Government Silent. The Government was silent regard- ing further prosecution of Insull and his associates on bankruptcy charges, and no disposition of the indictment may be made unti: United States Dis- trict Attorney Dwight H. Green a tends Attorney General Homer Cum- mings’ conference on crime in two weeks. 3 But rumor ran through the financial world that the former magnate's dream was of broader scope than for mere vindication—that he planned, if cleared of all charges, to re-enter La Salle street and the utilities field in an attempt to restore his $2,000,000,- 000 lost empire. A State charge of embezzling $66,- 000 from Middle West Utilities Co., his former holding concern, is also | pending against the elder Insull. Martin Trial December 3. Attorneys said State embezzlement | charges against his brother, Martin Insull, extradited from Canada, | would be called today in Criminal | Court, but that trial would not start until December 3. Martin Irsull is accused of taking $364.720 in stock from the Middle West Co. to use as collateral for his private brokerage account. Samuel Insull, jr, a defendant in both the Federal indictments, said he was eager to dispose of charges of embezzlement brought against him and four others in Lake County, Ind., court. Those acquitted beside Insull, sr., and jr., Saturday included Harold L. Stuart, president of Halsey, Stuart & Co., brokerage investment concern, and Stanley Field, philanthropist and nephew of Marshall Field, pioneer Chicago millionaire. PERSECUTION CHARGED. Greek Newspapers Make Scathing Attacks on United States. ATHENS, November 26 (#).— Nearly every Greek newspaper made scathing attacks on the United States today, charging it with having per- secuted Samyel Insull. “an unfortu- nate but great financier.” Bullying_ of Greece by America also was charged in connection with the long negotiations for Insull's ex- tradition while he was a fugitive here. The newspapers said Greek justice was superior to that in the United States. —_—— SAAR RIOTING DENIED Berlin Officials See Report Being Spread Maliciously, BERLIN, November 26 (#).—Police headquarters at Saarbruecken emphat- ically denied today all reports of riot- ing in the Saar territory when calls from nearly all foreign correspondents in Germany kept the lines busy to find out about a supposed clash. Official Berlin circles expressed the belief here the report was being spread maliciously. Star Gazing May Be Next Step Used in Charting New Deal it clear that the earth’s intake of energy from the sun varies to such an extent as to produce difference in climatic states, an extremely im- portant contribution would be made.” The three members, headed by Frederic A. Delano, the President’s uncle, decided that a national plan- ning program need not concern itself specifically with problems in astron- omy. But it added that in any for- ward-looking plan it is essential that there be ‘“continuing consideration and intensive investigation on the greater questions of astronomical Tesearchh.” b MONDAY, IBUS DRIVER LINKS WOMANS DEATHTO Identifies For- tmer as Companion of Chil- dren Carried From Boston. Tentatively MONOXIDE POISONING THEORY DISCREDITED Test Shows No Trace of Gas Ef- fects—Garb of Trio Traced to Source. By the Associated Press. CARLISLE. Pa., November 26—A solution of the mystery surrounding the death of three little girls whose bodies were found along a lonely mountain road Saturday turned more strongly toward a tragedy at Duncans- ville, near Altoona, where a man and a woman were found shot to death. { Paul White. a Harrisburg driver, tentatively identified a photograph of the woman in the Duncansville trage- dy as the woman who made a trip on his bus from New York to Harris- burg Jast Wednesday, accompanied by three children. ‘White previously said he was certain the bodies of the three children in a morgue here were those who made the trip with the woman Identification Tentative. “White said the photograph looks like her,” said Lieut. Harry E. McEl- roy, chief of detectives of Pennsyl- { vania State police. in announcing the i partial identification McElroy said the bus driver left im- mediately for Altoona “to take a good look at the body of the woman.” Neither victim of the Duncansville tragedy has been identified. Meantime, the examination for the | cause of death of the three victims | was_turther complicated by a report | | by Dr. George R. Moffitt that he found | no traces of carbon monoxide poison- | ing or asphyxiation in the bodies of | the girls. | Other Poisons Sought. The physician also reported he found no evidence of criminal assault Dr. Moffitt reported he is continuing his analysis of specimens of the girls’ blood for traces of other poisons. The analysis was ordered after autopsies failed to show the cause of death. State police learned that coats worn by the girls came from a New York manufacturer (H. & J. Block Manu- facturing Co., 507 Seventh avenue, New York) and that their shoes came from Auburn Square, Mass. Woman “Very Tired.” White said the woman on the bus with the children seemed ‘“‘very tired.” He described her as about 35 years old, with chestnut hair. She was commonly dressed. She did not get off the bus on the entire jour- ney from New York, he said. The bus driver said he described the children to investigators before he saw the bodies, even to a hole in the coat worn by the small girl, who was about 7 years old. The others were about 10 and 16. White explained he remembered the youngest girl particularly because he helped her get on and off the bus. “White also positively identified the suitcase, picked up two miles from where the girls’ bodies were found. as one of three carried by the woman on the trip. “One child,” White said, answered to the name of “Jennie.” She was the youngest of the three. Book Carries Name. A child's puzzle book distributed by an oil company is also being checked because one was found in a black bag picked up in the moun- tains near the scene two days before the bodies were found. The book has the name “Norma” scrawled over one page, apparently by a child. A State police check of gasoline stations within a radius of 20 miles showed none know about the books. Officers said this indicated distribu- tion of the book had been started in another section of the country and they also began investigating that angle. ‘William Kasparvich of the State police said the Duncansville angle of the case still looks “very much alive.” The officers are seeking to determine whether there is a link between the three children and a man and woman found shot to death at Duncansville, near Altoona. Dress Will Be Checked. A red dress worn by the woman found at Duncansville is expected to reach Carlisle today for checking. White said the woman accompanying | the children on the bus also wore & red dress. A party of persons from Lykens was rushed to the morgue in an automo- bile before daybreak, #nd will be questioned further today. Kasparvich explained members of the group had not seen the children they had in mind for about three years. He de- clined to give their names. Kasparvich intimated the State po- lice have many clues, which “look good,” and which would indicate an early solution of the mountain mys- tery. At the same time he empha- sized many good clues have led to blind trails in the last two days. In school rooms throughout Cum- berland County and other parts of the country today, teachers inquired (Continued on Page 2, Column 4.) The Star Expedition Planels Headed For Hudson Bay Read Capt. Kleinschmidt’s wire- lessed story describing the ex- pedition’s thrilling flight home- ward to bring back the motion picture films of Santa Claus Land. ON PAGE 2 in Today's Star \% 0///0 o ‘/ WEST Vg, Q&\&\\& 4/// T\ S0L0SE COURT BATILE FORJ0BS D. C. Supreme Court Denies | Temporary Injunction Against Secretary. Employes of the alcohol tax unit facing removal December 1. today lost out in the first move of their legal fight to keep their jobs i Chief Justice Wheat in District Su- preme Court denied a temporary in- Junction to restrain Secretary of the Treasury Morgenthau from dismissing | them. Today's action does not finally dis- pose of the issue. as the Government | now must move to dismiss the bill for | permanent injunction or answer it.| This must be done within 20 days from date of service, which was last | Monday. In the meantime, however, the employes are due to be dropped from service Friday night. 900 Employes Affected. More than 900 employes of the unit are eilected. Transferred to Treasury from the old dry set-up in the Justice Department, they are vic- tims of the so-called “patronage | rider” of an appropriation bill, which | prohibited payment of salaries after December 1, unless they had qualified anew for their positions by a competi- tive civil service examination. They already have this competitive status. In denying the temporary restrain- ing order Chief Justice Wheat said he could not go into the wisdom or the justice of the law. Obligation on Secretary. “I haven't any doubt but that the statute was intended to take away from all these men their salaries after December 1,” Chief Justice Wheat said. “The obligation is on the Sec- retary of the Treasury to prevent | payments and leaves the method of handling the case in his hands.” ‘The employes, represented by Gen. Samuel T. Ansell, former judge ad- vocate general of the Army, and Col. Edward S. Bailey, had contended that although the law barred payment to | the employes, it did not prescribe that they were to be dismissed. and that the Secretary was without power to | dismiss them. They said also that Congress had no right to order dis- | missal of the workers. Civil Service Threat Seen. Another contention that was set up was that the procedure which this law will entail is destructive of civil service. John J. Wilson, assistant United States attorney, who appeared for the | Secretary of the Treasury, said that the law is the “proper exercise of | constitutional power on the part of | Congress.” Recalling that opposing | counsel had said the statute was am- biguous, he asserted that they were attempting to have the court “look | up the spirit rather than the letter of | the law.” “It seems to me the spirit is worse than the letter,” Justice Wheat wryly interjected. Wilson also pointed out that a Gov- ernment employe has neither a con- tractural or vested right in his job and recalled a recent decision by the District Court of Appeals to this effect. Wilson said also that this statute was self-operating and that | by withholding the pay of these employes it automatically kept them from service. Congress Held Unaware. After Chief Justice Wheat had indi- cated his belief he had no right to give the relief sought, Col. Bailey ar- gued that the men could be retained in service without being paid until Con- gress had had a chance again to pass upon their status. One of the argu- ments “advanced was that Congress was unaware of the effects this law would have, having been mistakenly of the impression that it was cutting off pay from employes who had been blanketed under civil service, rather than having obtained it from competi- tive examination. Bailey said that then the employes could recover in the Court of Claims. The Chief Justice would not recede however, saying that if the men were being unlawfully dismissed from their positions they would have a claim for salary in the Court of Claims. ‘The action which was heard today was instituted by Paul Sarlo of Brook- lyn, N. Y. Sarlo had declined to take the new examination ordered by Congress which flunked mere than 900 of his associates. SAILORS’ STRIKE ENDS P. 1, November 26 ().— Settlement of the three weeks’ strike of 1,000 sailors and which had tied up 60 interisland vessels, was announced to the Insular o ot oater o contion, o Sfar SATURDAY'S Circulation, SUNDAY'S Circulation, 120,967 131,807 Some Returns Not Yet Received. NOVEMBER 26, 1934—THIRTY-SIX PAGES. % \ T XN R ‘ \;&\\‘ Q 7 51/4/' b AR N \// & AN A (P) Means Associated Press. TWO CENTS. | LOVE To Do MY CHRISTMAS | SHOPPING IN Post Tunes Plane For Stratosphere Flight Tomorrow By the Associated Press. BARTLESVILLE, Okla., No- vember 26.—Wiley Post, famous round-the-world fiyer, was tuning up his plane, the Winnie Mae, today preparatory to take off for a flight in the stratosphere to- morrow. Post, who believes much of the future flying will be in the strato- sphere, brought his plane here yesterday from St. Louis. The flight here is being sponsored by Frank Phillips, oil millionaire. NAVY PARITY PLEA PRESSEDBY JAPAN Matsudaira Denies Tokio Wants Equality Only With U. S. BY the Associated Press. LONDON, November 26.--Japan's desire for full naval equality was em- phasized again today by Ambassador Tsuneo Matsudaira in a meeting with Norman H. Davis, member of the Washington delegation to the current tri-power negotiations. Matsudaira said Japan wants equal- ity with Great Britain as well as the United States and formally denied some reports published abroad that Japan had suggested equality only with America. The two also discussed procedure after Japan denounces the Washington | treaty but no specific statement was made by Matsudaira. Discussions yesterday between Davis and Matsudaira disposed of many pending points on which clarification was sought. Hope for an agreement was not improved, it was stated. The British delegates will be tied up for several days by debate in the | | House of Commons and plans for the | wedding of Princess Marina and the Duke of Kent. They may be unable to participate in regular meetings until late’ in the week. Japan is reported to be considering | whether to make new proposals for a compromise but it was indicated any Japanese offers probably would be the original proposals in a different form, calling for abolition of the present 5-5-3 ratio. Matsudaira explained to Davis yes- terday tentative arrangements for Japan's denunciation of the Wash- ington treaty, expected in December. Naval and diplomatic circles are in- terested in reports of the possibility of an Anglo-American accord on general naval principles should there not be a pnew naval limitation treaty. QUAKE SHAKES MANILA MANILA, November 26 (#).—An earthquake which lasted 36 minutes | shook Manila tonight, wrecking numer- ous bamboo dwellings in the slum dis- | trict and damaging a few downtown buildings. Police had no reports of any injuries. The quake was declared to be the most severe felt here in several years. Power lines, windows and the cornices of downtown buildings were wrecked. Several thousand persons rushed into the streets as the ground quivered. NUMBERS RACKET BREEDS VIOLENCE | Self-Defense Slaying Is Laid | to Prosperity of Those in Game. Inspector Frank S. W. Burke, chief of detectives, sees the spread of jeal- ousy and hatred, with attendant mur- | der, as a result of prosperity for op- ! erators of the numbers game. { In his long career coping with| | crime, Inspector Burke speaks with authority when he says: “There is | no doubt the numbers game has grown ! | to great proportions in this city. and ' | the effort of The Star to bring an end | | to it is commendable. The Wash- ington Post, Herald and Times and | the local radio stations, in joining the | campaign to suppress the winning! numbers from the race tracks. can | help mightily in the suppression of | a racket.” One Example. how jealousy and hate operate is sh by Inspector Burke, who re- calls the case of a numbers runner who was trailed by a Philadelphia gangster. Harry E. Sladko, some | months ago on New Hampshire avenue. | The Philadelphian, through the under- | world grapevine, heard that there was plenty of money being made by the numbers game runners and operators | in Washington. So the racketeer came | here to see for himself. He learned plenty. One night he trailed a num- | bers runner who was carrying a lot of money. The numbers runner had a bodyguard. When Sladko attempted to “stick up” the numbers game run- ner there was shooting, and Sladko | got killed. Breeds Death. “That is concrete evidence of what | the numbers game breeds,” said In- spector Burke today in recalling this }c-se. “It was death on the streets of | | Washington, and the man who killed | the gangster was exonerated, having | acted in self-defense.” Naturally, the head of the homicide | squad is not anxious to have a repeti- | tion of this affair, but he believes that | | murder will be committed merely as an outgrowth of jealousies and hatreds | engendered among men operating the numbers game unless it is broken up. 'POLICE IDENTIFY | CORPSE IN BARREL Body That of Jewelry Auctioneer.‘ Store Owner and Wife Say. | By the Associated Press. CINCINNATI, November 26 —Cin- | cinnati detectives sent to Columbus, | Ohio, reported to headquarters here today that a man found slain and crammed into a barrel here had been identified as Alvin Brunner of 1817 Flatbush avenue, Brooklyn, N. Y, & jewelry auctioneer. The report said the man had been slain in a jewelry store at 40 East| Main street in Columbus. | “The identification.” the report said, “was established from articles found in the barrel. One of those was a pillow slip and there was a piece of package wrapping ribbon bearing the name of the jewelry store, Rinehart Merz, Jeweler, 40 East Main. The body was found at Cincinnati shortly after midnight last night. Byrd Claims Huge Antarctic Area, Rivaling Texas; for U. S. LITTLE AMERICA, Antarctica, No- vember 25 (via Mackay Radio, de- layed) (#)—A section of land almost as large as the State of Texas was claimed for the United States today by Rear Admiral Richard E. Byrd as a result of discoveries in Antargtica. A huge stretch of ice-covered Ant- arctic wastes which previously had been considered to be over water was said by Byrd to be land. He made this announcement in a radio mes- sage to President Roosevelt following a flight East into Marie Byrd land. He brought back with him conclu- sive evidence that Marie Byrd land The result of the seven-hour flight, together with observations made on November 16, 18 and 22, was to re- verse the preliminary observations of November 15, when Byrd found a sea level depression apparently run- ning East, which led him to believe a long sought trenscontinental strait lay beneath the ice sheet. He had concluded that the elevated land masses of Marie Byrd land con- stituted, if not a separate continent, at least an isolated island of epicon- tinental dimensions. Friday's flight, through the gap of unexplored area falling between the previous flight tracks, proved the strait was more apparent than real, HUGE TAX FRAUD PLOT IS PROBED FOR JURY AGTION Morgenthau Ousts Revenue Bureau Official and An. other Employe. INDICTMENTS OF SIX SEEN AS POSSIBILITY New York “Consultants” Report- ed to Be Involved—Two Utners Face Dismissal. BY REX COLLIER. Smashing what officials allege was a far-reaching conspiracy to defraud taxpayers and the Government, Sec- retary of the Treasury Morgenthau has dismissed two employes of the In- ternal Revenue Bureau, one a respon- cible official, and will seek a number of indictments before the District grand jury. The plot involves two prominent New York “tax consultants,” who are alleged to have conspired with the Revenue Bureau employes to “fix” im- portant tax cases pending before the bureau. _Indictment of at least two and pos- sibly six persons may fesult from a mass of evidence to be presented to the grand jury by special agents of the Intelligence Unit of the Internal Rev- enue Bureau. The investigation which led to disclosure of the alleged plot was conducted under direction of Internal Revenue Commissioner Guy T. Hel- vering. Two Secretly Dropped. One official and an auditor at head- quarters of the bureau here and two revenue agents attached to the New | York office of the bureau have been under investigation. The local em- | ployes have been secretly dropped from the rolls and the agents also will be dismissed shortly, it is said The high-ranking official is said to have been in a position to pass upon tax cases in which legal proceedings were contemplated. He is alleged to have been influenced by the outside tax advisers to quash cases against certain clients of the New York firm. The consultants are alleged to have charged large fees for their “special services” in “fixing matters” at Wash- ington. One of the clients who was approached with such a proposition by the firm is understood to have complained to Treasury officials. An inquiry by the Intelligence Unit was launched under supervision of Elmer L. Orey, chief of the unit. To what extent taxpayers and the Government were defrauded by these methods has not been revealed. Names of thcse accused as conspira- tors are being closely guarded, pend- ing grand jury proceedings. One Case in Six Figures. However, a sum running into figures is reported to be at stake in one case alone and officials at the Treasury are said to believe that the investigation may reveal further rami- fications extending back over a period of years. One of the persons who will be named in the conspiracy has been with the Internal Revenue Bureau for more than a decade. It is possible the Government has been defrauded of many hundreds of thousands of dollars during that period. Indications are that the evidence will be placed before the grand jury late this week or early next week. As additional evidence is collected, there may be further grand jury proceed- ings. LEWIS HEARS TERMS | OF SEAWAY CHANGED Leader of St. Lawrence Treaty Opposition Reports Cost Pro- vision Altered. By the Associated Press. Senator Lewis, Democrat of Illinois, leader of the opposition that defeated the St. Lawrence treaty last session, said today he had heard rumors that several major provisions involved in the controversy had been eliminated in a new treaty being negotiated with Canada. “If this be true,” Lewis added, “it removes from the treaty the provisions upon which the great controversies revolved that resulted in its defeat.” Provisions Lewis said he had “heard” were to be omitted have to do Wwith the American share of the cost of the seaway and limitations on the diver- sion of water from Lake Michigan for the Chicago Drainage Canal. He said rumor also had it that the new pact would acknowledge complete American sovereignty over Lake Michigan. While confirmation of these reports are lack- ing, other opponents of the treaty were predicting opposition in Canada would solidify with the approach of the Jan- uary elections. They expect to contend in their arguments against ratification this Winter that there is no assurance that Canada will ratify the treaty if America doess. -— GREW IS GRANDFATHER TOKIO, November 26 (&) —United States Ambassador Joseph C. Grew to- day became a proud grandfather. A daughter, Alice Emily, was born to Mrs. Cecil Burton Lyon, youngest daughter of the Ambassador and Mrs. Grew, at St. Luke's International Med- ical Center. Amusements Comics

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