Evening Star Newspaper, March 27, 1935, Page 3

: THE EVENING STAR, WASHINGTON, D. C., WEDNESDAY, MARCH 27, 1935. BARUCH PROPOSES PAYAS YOU FIGHT War Plan of Taxation and Price Fixing Urged at Arms Hearing. (Continued From First Page) amplified by the ‘work or fight' pro- vision, but labor would not be con-| 2 | scripted. . | “Conscriptién of labor is unconsti- | tutional, un-American and unneces- | sary. Wages would remain in keep- | ing with the price structure and change only if found necessary. | “The Army and the Navy would handle war matters, but control and direction of our economic life would | remain under civilian management, | directed by the President.” | Baruch estimated his wealth in the r-time period at $9.800,000, plus ome cash balances, the size of which I cannot recall.” In 1917, he said his income de- clined almost 75 per cent from the previous year. In 1918 and 1919, he 1eported no taxable income, “as I had sold large vortions of my hoidings, showing actual losses each year, and reinvested the money in Liberty bonds. My income from them was somewhere around $200,000. * * * “I made absolutely no purchases of securities except bonds, mostly Gov- ernments. “From the time I entered the serv- ice until I left in July, 1919, 1 was rot a participant, either directly or indirectly, in any market transactions.” Swope at Hearing. Arriving ahead of committee mem- bers, he. graciously greeted each one as he appeared and presented to them his companion, Herbert Bayard Swope, assistant chairman of the War In- dustries Board under Baruch. Baruch immediately placed before the committee a stack of reports and records bearing on his World War activities. He said some he sought to produce had been requisitioned by the Government during the Harding ad- ministration “and, as is often the case with Government requisitions,” were | not returned. | Saying the committee had asked | records of his own financial operations during the. war, he presented photo- static copies of his income tax re- turns, commenting meantime “An impression was somehow created | that your committee was unable to| get any copies of my returns.” He summarized his income tax re-| ports to show that in 1916 on an| income of $2.301,028 he paid $261,169; in 1917 on an income of $617,061 he paid $263.762. For 1918 and 1919 he reported losses, recalling to the committee that he resigned virtually all his business con- nections when he took over direction of war-time industry. Made Three Investments. “I carried through the war three major investments in which I am | still interested. They were: First, Alaska Juneau Gold Mining Co.; sec- ond, Texas Gulf Sulphur Co., which never produced an ounce of sulphur | during the entire war, and third, the Atolia Mining Co, a producer of tungsten to which you have made | previous and public reference. I originally invested in this mine | in the year 1905 or 1906, Its po- tential value lay in the fact that it was the most promising tungsten development in the United States. Tungsten became important as an alloy before and during the war be-! cause of the absence of other alloys | in American mines. He declared no one would buy it in | 1917, fearing it had no ore reserve, so | “accordingly I was compelled to retain | my holdings.” “Because tungsten had become in- creasingly important as an alioy,” he ! continued, “I ordered the segregation of every dollar that the mine paid me | and directed that all the dividends | should be paid to various charities.” Gave Thousands to Charity. Sometimes remaining seated, but more often standing while he empha- sized his statements with frequent waves of paper-filled hands, he de- clared his charitable contributions amounted to $400,000 while his tung- | sten dividends reached but $300,000. He presented one Treasury Depart- | ment report showing a statement of | loss approved by a Treasury official | amounting to $418.483 in 1918. The Senate Investigating Commit- tee, armed with figures about earn- ings by industry during the World ‘War, has agreed to submit a definite proposal for controlling war profits to the Senate before April 1. First Harmonica Sold, The first mouth organ made in Eng- land, an instrument about 3 inches long, was sold recently in London for $14. TG_E_REFRIGERATOR, 6 CU. FT. Excellent _Condition. ARYLAND A Open "Evenings Until 7 Bpencer St. Hyatisville, Md. _*_ fOAD OR PART LOAD. PHILADELPHIA or Atlantic City. between now and 30th. 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UNI;'!D STA’ 8 10th | know what they thought about the STORAGE MEtropolitan 1844 TO H. OR LOAD R R Y e al H : ;{:LIBDWPASBN. INC., 1317 Natl._1460. _Local movij .20: bs, $1. Call West . B vase o Customs Agent Honored Treasury officials shown as they congratulated Melvin L. Hanks, crack Seattle customs agent, here yesterday on his recent capture of the Chin group of opium smugglers. Left to right: Hanks, T. J. Gorman, deputy commissioner of customs, and Stephen of customs. B. Gibbons, Assistant Secretary of the Treasury in charge —A. P. Photo. This Changing World Eden and Hitler Are Regarded as Leading Figures in Reich Arms Discussions. BY CONSTANTINE BROWN. ‘Twenty years ago two men, known only to those close to them, were facing each other in opposite camps. | One was Adolph Hitler, then a buck private in the German Army, cursed out and kicked about by his superior officers. The other was Robert Anthony Eden, Oxford graduate and subaltern | in the King’s Royal Rifle Corps, one of the smartest units in his majesty’s | pe adopted toward Hitler. He has an | army. | * ok Ok X Little did they think that fate would British statesmen have decided to put | throw them together a score of years up with the former corporal’s rough later to decide upon the destiny of a strife-torn world. | They are facing each other again today. This time they are in full limelight. The eyes of the world are turned toward them. Instead of being in dugouts and | trenches they are comfortably seated in armchairs in the ancient palace of | Wilhelmstrasse in Berlin pondering how to avoid sending another genera- tion of youngsters into the same trenches which had been their home for four solid years. * X ok There is a world of difference be- tween the British and German con- ferees. Eden, with his Eton and Ox- ford education, a clubman and a suave politician, & man born with a silver spoon in his mouth, is assisting his chief, Sir John Simon, whom he sur- passes in astuteness. Hitler, seconded by his yes-man, Baron Konstantin von Neurath, an old-time diplomat, is| blunt and disregards the niceties of | dominate Eastern Europe, or oppose | crease in the navies of other powers.” the diplomatic language. Eden is the great hope of the British diplomacy. He has won his spurs at Geneva when he proved that he can be as ruthless as he is smooth. Last February the Abyssinian dele- gate decided to submit the case of Ethiopia against Italy to the League Council. Before doing so he called on the two pillars of the League, without whom no' action is possible, Foreign Minister Pierre Laval and | Capt. Anthony Eden. He wanted to | Abyssinian case privately. \ Both statesmen advised the Abys- | sinian to try and obtain a direct set- | tlement with Italy. | Laval said that he could not serve as an intermediary because his free- dom of action was curtailed by the | recently signed Italo-French lgru-f ment. But Eden volunteered to be helpful. “It would be a bad thing to present your case to the Council, especially when you have to deal with a big wer, before having exhausted all possibilities of a direct reconciliation.” * K ¥ & The Abyssinian agreed. Selassie did not want trouble if he could avoid it. Eden promised to do his best, especially since the Abyssinians had a strong case. The next day he summoned Selassie’s representative to his hotel. “It was ezactly as I thought,” said the Britisher, filling his pipe. “The Italians are quite reasonable and ready to meet you more than half way. They have agreed to let you off easily. Just pay $45,000 as an indemnity for those soldiers who were killed in the Walwal engagement and have your troops salute the Italian flag.” The Abyssinian was flabbergasted. “But we cannot accept these terms. They are the original Italian demands, which have brought us to Geneva. Well, I don't see any way out except placing the matter before the Council.” “You can't do it now,” replied Eden. “It is provided in the statutes of the League that no matter can be brought before the Council while direct nego- tiations are going on.” “They are ended right now,” said | the Ethiopian. “Your very answer | puts an end to them.” “That may be so,” answered Eden, | “but T will not admit before the Cous | cil that the Italians have made reply which closes the door to direct nego- tiations.” * ok % % Sir John Simon and Capt. Eden realize that the same method cannot army and an air force. They may bother Great Britain. Hence the two language. ‘There was a fluttering smile on Sir | John's lips when Hitler said bluntly that he did not understand why | Italy's subsidizing of the Fascist| Heimwehr organizations in Austria | did not constitute an interference in | that country’s internal affairs, while | the moves.of the Austrian Nazis were | considered as an interference on the | part of the Reich. * ok X x The British statesmen are willing to | take a good deal from the Reichs- E ture was described as “comparatively n- AGENT TELLS ROLE INOPIUMROUND-UP Hanks, Veteran Officer at Seattle, Heard Secrets by Playing “Crook.” By the Associated Press. A story of how customs agents re- cently broke up what was called one of the largest opium smuggling rings in this country was unfolded today to Treasury officials by Melvin L. Hanks of Seattle, hero of the episode. Hanks, who is 40 and a veteran of | 15 years in the Customs Service, “turned crooked” (that's what he told his quarry) and enlisted in the al- leged ring, described as the “Chin group,” composed largely of Chinese. Hanks stayed with the ring 14 months and smuggled large quantities of opium, making deliveries as far East as Detroit and Chicago. Finally, the time came to strike, as the Treasury officials told the story, and the vessel Tantalus was docked at Seattle with 200 cans of smoking opium which smugglers had placed aboard. The narcotic was valued at $25,000. Hanks was called into con- ference 'With a man whom he de- scribed as the “big shot” of the ring and an elaborate set of signals agreed upon. Flash to Summon Boats. Hanks' job was to cause the with- drawal of the dock guard at a certain hour at night. At that time, & flash- light signal from a stern porthole was to summon men whd were hovering near in a small boat ready to take off the contraband. Hanks' own private plans went off without a hitch. Calling in three other agents with rowboats, he secret- ed them beneath the docks where the Tantalus was moored. The unloading finally began, and after that the cap- simple.” Hanks, summoned to the Treasury at the request of Secretary Morgen- thau, who wanted to hear the story from his own lips, said the operations of the Chin group ran to | mately $3,000,000. His “grab” | Seattle led ultimately to the arrest of | alleged distributors in Detroit and | Chicago. In all, 14 persons—three | white men and 11 Chinese—were | taken. “Big Shot” Held Out Pay. The life of an opium smuggler is | EQUALITY STANDS ASHITLER POLICY Asks Gun for Gun With Other Powers—Seeks Terri- tory Return. (Continued From First Page.) his contention that Germany never had been given equal treatment with France and Great Britain, that the Germans always drew minor assign- ments while French and English han- dled vital political matters. ‘The authority said that in the con- versations between Hitler and Str John the revision of important parts of the Versallles treaty, especially the arms clauses, were regarded “as an accomplished fact” through the Nazis’ own action in decreeing compulsory military training and the creation of an air force. Revision Treated as Fact. “The conversations,” said this source, “were not held to determine whether the treaty should be revised. ‘They were started from the viewpoint that the treaty already had been re- vised by the Germans’ unilateral ac- tion. The question was and is, what to do about a very real fact—German armaments?” Asked whether the French would accept this viewpoint without first ob- taining sanctions against Hitler for having violated the treaty- military clauses, the authority replied: “France, sooner or later, will have to admit the fact that Germany has re- armed and nothing short of war can force the Nazis to go back on what they have done.” Hitler, who started in life as a house painter, startled the British en- voys, it was revealed, by proving him- seli capable of rebutting the British foreign secretary, who is & £20,000-a- years lawyer. The Reichsfuehrer pre- | viously had been regarded as an able speaker but poor in argument. How- ever, members of Sir John's entourage said his ability at argument matched that of the British secretary. Learned From Il Duce. Hitler obviously emerged from the | | conference with Sir John in better shape than he did from his meeting in Venice last year with Premier Mussolini. The Nazi fuehrer, diplomatic quar- ters suggested, probapiy learned a few | pointers about the art of diplomacy from the Fascist dictator. not exactly the one Hanks would choose if left to his own inclinations. For instance, officials said the “big shot” held out on him. After a few | months of prompt payments of com- missions, Hanks was advised. in effect, that hereafter he would “draw down whatever I see fit to give you. You're one of the gang now.” “That's what he thought,” says Hanks. The $1.420 Hanks actually re- ceived was turned over to the customs fuehrer provided thvy can get Ger- many back into the League. Not that Great Britain actually be- lieves that this would settle the pres- | | ent situation in Europe. But they hope that Germany's return to Geneva would appease French public opinion and postpone the imminent danger of another war. x kX % Whether this would solve tem- porarily the trouble is difficult to say. It may be that the present French government will be pleased with such @ palliative. Whether the French nation will accept it is a dufferent question, * xox % At this time there are only two courses open for the French: Either to accept Germany's return as a world power and accept the inevitable fact that within a few years Germany will Germany's revival and strike almost at once. *x % x x In the former case France can live in security without fear of being at- tacked. But she must make up her mind that within a decade she will become another Belgium, a second- class power, in & Europe dominated by Germany. In the latter case she must take | the responsibility and consequence of another European war. As things stand today she may win that war. But if she meets with reverses or if the power of resistance of the Reich INVEST INVERIFIED VALUES" “Verified Values” | service in Seattle. | DIPLOMATIC SERVICE EXTENSION IS ASKED' By the Associated Press. PRINCETON, N. J, March 27.—In an open letter to New Jersey’s United States Senators, President Harold W. | | Dodds and a Princeton University | faculty group called for a decrease in | naval appropriations, the saving to be | | used to extend the diplomatic service. | Warning that able men would be | | forced out of the diplomatic_service | by proposed cuts in the State Depart- | ment budget, the letter declared the passage of a larger naval appropria- tion would “only stimulate a propor- tional, or larger than proportional, in- “It is our conviction that security |is obtained by resourceful diplomacy |and a conciliatory foreign policy, (rather than by a large increase in | armaments, as the history of Europe since 1900 has witnessed,” the mes- | sage said. | is such that the Prench and their allies can register only minor suc- | cesses without striking at the heart of the German resistance, the political and social consequences of a new | conflagration may change completely the social aspect of Europe. * ¥ x ¥ ‘The French rulers are in a difficult dilemma. If they allow Germany to get away with the full Hitler program. | France will lose her allies, on which | she has spent so much money since the end of the war. If she strikes | at Germany now, she must ceunt Great Britain out and rely exclu- sively on the doubtful Little Entente and on the willing but inefficient Soviet Russia, W\ i Provide Safe Investment Return THE tobacco buyer knows all types and grades of tobacco. His judgment is unerring. Upon his advice mil- lions are spent. Those who spend the millions know he buys only “Verified Values” in tobacco. Here Is A SHANNON How We Determine “Verified ‘alue’” in Real Estate Hundreds of shrewd Washington ine vestors ment. trust their money to our judg- They know we offer only “Verified Values.” Property that has been approved and verified by our appraisal experts. Our judgment is sound because our appraisals are based The fact that Hitler held his naval demands to “a small percentage of the British fleet” was regarded as an indication of diplomatic astuteness, | since he did not draw another red her- ring across the British trail by ask- ing equality for the navy as well as i for the air forces. | Atter his dinner with Hitler last night Sir John hastened to inform France, Italy and Belgium of “the | general position taken by both sides during the talks” by calling the French Ambassador, the Belgian Minister and the charge d'affaires of the Italian | Embassy. The Belgians were included in the invitation rather than Poland, it was said officially, because Belgium is con- cerned in the Locarno pact and would be a cog in the proposed air pact ma- chinery, while Poland is not concernec with either. The Nazis, who from the beginning | have been pleased that the English consented to come to Berlin. expressed even greater pleasure today over last night’s communique, which spoke of Germany as “pursuing s goal of peace.” “Heretofore,” Nazi organs said. “the Reich has been treated as a warmaker. Now it is recognized that we, t0o, want peace.” During the first day of the confer- | ence, agreements in principle were reached on two points and these are regarded as the conference’s accom- plishments, although it is known that both sides anticipated greater ac- complishments beforehand. points were listed as: 1. Great Britain would no longer in- sist upon the clause in the proposed Eastern European security pact call- ing for mutual assistance and Ger- | many gave assurance that she did not intend ever to attack Russia. 2. Germany expressed willingness to enter into a treaty of amity and friendship with Lithuania provided that country lives up to the terms of the Memel statute which guarantees certain rights to German minorities. These understandings, however, were in the nature of gentlemen's agree- ments. The British suggestion con- cerning mutual assistance in Eastern Europe was subject to the acquiescence 33 Pontiac Sedan... *33 Plymouth P. D. Coach. The two | of France, Italy and perhaps other nations. ‘The conference ended, Germany turned her energies once more to re- arming. While Sir John prepared to leave for London to report his inconclusive conversations with Hitler, an air min- istry official made known that details of Germany's new military air force would be published soon. Capt. Anthony Eden, British lord |privy seal and Sir John's associate |in the two-day parley, departed last night for Moscow, Warsaw and Praha, where he will continue his “explora- | tions” of the European peace situation. The German cabinet was expected to be called into session at an early date to consider details of the recently announced conscription plans. Garrisons Inspected. Gen. Werner von Blomberg, minis- ter of defense, set out for Silesia to inspect garrisons and survey industrial plants in the area. Gen. Werner von | Fritsch, the Reichswehr chief of staff, recently returned from a similar ex- cursion to Westphalia. Reviewing the conversations on which the British foreign secretary had set high hopes for amelioration of European peace problems, many observers believed the definite results were few. Some suggested, however, that the cumulative effect of successive pro- tests against the Reich’s re-armament policy might modify the prevalent at- mosphere of uncertainty before rep- resentatives of Great Britain, France and Italy gather at Stresa April 11 to analyze the situation. The formal announcement of the outcome of the parleys conducted at the Wilhelmstrasse Monday and Yy terday was made through a brief and unenlightening official communique. “The conversations were carried on in the frankest and friendliest spirit,” it sald, “and resulted in the com plete clarification of each other’s viewpoints.” Both the British and German ministers, it said. were satisfied of “the usefulness of these direct con- versations.” When the British representatives journey to Stresa to present the re- sults of their efforts to Italy and France, they apparently can com- municate only general restatements of what slready is known of the German viewpoint. A moderately optimistic view of the parleys was taken by Deutsche Diplo- matische Korrespondenz, the govern- ment mouthpiece. “The whole German nation hopes the Berlin negotiations mean to all $489 429 134 Chevrolet Mast. D. L. Sdn. 549 *32 Chevrolet Sedan. 132 Chevrolet Sport Coupe Alr Wheels. 133 Ford V-8 D. L. Fordor.... 32 Ford V-8 Tudor.... 32 Ford V-8 D. L. Tudor 30 Ford Tudor............ 20 Ford Town, Sedan 132 Ford 4-Cyl. Tudor. 199 Ford Spt. Roadster.. 29 Ford Fordor.. ’29 Ford Tudor.. 329 1933 Studebaker Coupe Beautiful St. Regis Regal Model 8-73 Commander. Two- tone stone air built-in trynk. preveepray 2 A3~ SPEAKERS ARE CHOSEN Marketing Society to Discuss Pro- tection of Consumers. How consumers’ interests may be ] protected will be discussed at a meet- ing of the American Marketing So- clety at 8 p.m. tomorrow at the United States Chamber of Commerce. The meeting is open to the public. Thomas C. Blaisdell, jr., of the National Emergency Council; C. D. Edwards of the Consumers’ Advisory Board and Miss Alice Edwards, execu= tive secretary of the American Eco- nomics Association, will speak. W. F. SHEA AD. 1258 Most of our friends and n for whom we Free Inspection TERMITE CONTROL €O, Nat’'l Press Bldg. Nat’l 2711 eed Treatment Magnolias, less famous than the cherry blossoms, are first to make their appearance and guarantee Spring in the Capital. shows them in bloom on the grounds of the Pan-American Building This photograph —Harris-Ewing Photo. positively inclined statesmen of Eu- | rope a fresh start and also a change in the method hitherto employed of expecting from others things one | would reject onesself,” the organ said. | “The results of the discussions can only benefit Europe if they are re- ceived and treated at Stresa with re- spect, good-will and sincerity.” Diplomatic observers of the confer- ences noted with interest the inces- sant off-stage activity which the visit of the British statesmen prompted on the part of Viscount Kimimoto Mu- shakoji, Japanese Ambassador. These circles expressed the convic- tion that the Japanese were applaud- ing Germany's resistance to any un- dertakings that would bring the Reich closer to Russia. As long as Germany and Russia re- main unreconciled, it was pointed out | Russia is prevented from throwing her entire strength to the East. RIFT SEEN IN AUSTRIA. Home Guard and Peasant Groups Split on Arming. VIENNA, March 27 (#).—A demand for the restoration of a conscript army in Austria, voiced in the name of the peasants by Josef Reither, minister of agriculture, was regarded today as indicating dissension in the government between the Fascist heimwehr (home guard) and the Catholic peasant element. Dr. Reither's remarks. made Sun- day at Innsbruck, were reported here today. Reither, who is a leader of the Lower Austrian Peasant League, voiced discontent at several gather- ings in the Tyrol over the week end, but the remarks he made at one of these conferences of peasant leaders were so blunt they created an embar- rassing situation within the cabinet. “I don't want to interfere with Chancellor Schuschnigg’s policie: Reither was reported to have said. “But his whole Austrian program is in vain if the peasants are ruined by it. | “We peasants ere tired of political | strife. We want neither Nazi nor heimwehr dictatorship, but unfor- tunately there will be heimwehr lead- | ers who want to play Mussoulini in Austria.” LAWYERS' BRIEFS RUSH PRINTING. BYRON S. ADAMS “Ask Our Customers’ Walnut Finish—3 Shelves 83 40 Specially Priced for One Day.. WHED YU BET TO NEW YORK DWE for a NEW hotel right in the center of New York's most fascinating attrac- tions. .. luxury, comfort and con- venience—yet, you pay no more. 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