Evening Star Newspaper, December 10, 1935, Page 1

WEATHER. (U. 8. Weather Bureau Forecast) Cloudy tonight, followed by rain tomor- row; much colder, lowest temperature to- night about 26 degrees; fresh to strong northwest winds. Temperatures—High- est, 62, at 1 p.m. yesterday; lowest, 35, at 4 am. today. Full report on page A-9. The only evening paper in Washington with the Associated Press News and Wirephoto Services. Closing N. Y. Markets, Pages 15, 16, 17 No. 33,460. BRITISH COMMONS| AND LEAGUE REBEL ON CONCESSION 0 IL DUCE FOR PEACE Grave Crisis Is Foreseen at Geneva if Newspaper Ver- sion of Anglo-French Pro- posals Is Confirmed. SOME MIGHT RESIGN IN PROTEST ON PLAN London Orders Ambassador Clerk in Paris to Reopen Negotiations for Modification of Accord. Baldwin Suffers Vehement At- tack in Parliament. BACKGROUND— Anzious to dissipate war clouds which have gathered over Europe since Italian aggression against Ethiopia, Britain and France drajted several peace proposals, most recent suggesting land ces- sions to Italy in return for sea port to Ethiopia. Exerting pres- sure for acceptance by Mussolini is decision of League of Nations to apply trade bans against Italy, threat to ertend embargo to oil, life blood of Il Duce’s military ma- chine. Meanwhile, Italian troops advance slowly jrom mnorth and south, send fighting planes ahead; bombing of Dessye, damaging of American hospital most recent “successes” of invaders. By the Associated Press. GENEVA, December 10.—Represent- atives of the smaller powers which are members of the League of Nations were reported tonight to have under- taken a virtual rebellion against the concessions to Italy reported offered by France and Great Britain as a price for peace between Italy and Ethiopia. (In London insistence upon unbend- ing application of pressure against Ttaly to give up her venture in Ethiopia grew to the proportions of a revolt in | the House of Commons against Prime | Minister Baldwin. The revolt was at- tributed to what was described as a| proposal to permit Premier Mussolini | of Italy to dictate “conqueror’'s terms” to Ethiopia.) Entered as second class matter post office, Washington, D. C. Manchukuan Army Invades Chahar, With Many Killed Tanks and Airplanes Used to Drive Special Police From City—'Malcon- tents’ Occupy Chiuhai and Tacheng. BACKGROUND— Their determination strength- ened by preoccupation of world with war scare in Europe, Japan last month furnished military background for proclamation of “independence” by five North China provinces. Over past week end, movement seemed centered in Ho- peh and Chahar; “understanding” reached by Central Chinese and Japanese governments as latter's troops maneuvered in disturbed area. Spread of Japanese influ- ence on Asiatic mainland received contemporary momentum with ac- quisition of control over Manchuria and Jehol, establishment of “inde- pendent” Manchukuo. By the Associated.Press. sources reported tonight that an in- b WASHINGTON, D. C, PEIPING, December 10. — Chinese | vading Manchukuan Army, using tanks and airplanes, had driven the special police of Southeast Chahar into the city of Kuyuan after a battle in which many were killed. As a result of the troop action, it ‘was said, the forces of the Japanese- directed empire of Manchukuo were in control of more Chinese territory. The Chinese reports came from Kalgan. They recounted that the special po- lice of the demilitarized area in Cha- har Province were unable to block the alleged invasion and that the police now wer held in‘a virtual state of siege in Kuyuan. The invasion was said to have start- ed this morning with the fighting at an end at nightfall. { Chinese authorities immediately made representations to Lieut. Col. | (See CHINA, Page 4.) ONTONNAGE STUDY Conference to Plunge Into Quantitative Problem. Success in Balance. BACKGROUND— Japanese demands for naval parity with United States and Great Britain became insistent during 1934 resulted in breaking up of preliminary conference in London as United States declined to accept British compromise sug- gestion of “paper parity” for Orien- tal empire. Last week Japanese representatives warned that only approval of their demands could clear way for progress at present sessions. Washington Conference in 1921 allowed Britain, United States and Japan capital ships in 5—5—3 ratio. London agreement in 1930 gave Japan slightly higher ratio for cruisers, destroyers and submarines. BY LLOYD LEHRBAS, (Copyright, 1935, by the Associated Press.) LONDON, December 10.—An au- | thoritative source disclosed today that | the International Naval Conference has decided to plunge immediately into Grave Crisis Is Seen. 1 Some delegates went to the limit of gaying that if newspaper versions of the Anglo-French peace plan were confirmed, a grave crisis would de- velop within the League. The forecast that certain nations might even resign on the probable grounds that the League was being used to give a premium to aggrf‘silon‘ by strong powers against weaker. | One delegate described the reason for the rebellion as saying his country had participated in the League sanc- tions against Italy to prevent aggres- sion against Ethiopia and to establish a precedent for the future of collective security against war. Cites Financial Losses. Another delegate, alluding to the financial losses suffered by some of the sanctionist countries, demanded: “Why should we lose money to fa- cilitate a big power deal?” The efforts by France and Great Britain to end the Italo-Ethiopian War may block further sanctions against Italy, an authoritative source indicated. A League of Nations’ official said there was a possibility the Committee of 18, scheduled to meet Thursday, might not convene until some future date. The committee's agenda calls for the discussion of an oil embargo against Italy. The official indicated the Anglo-French negotiations had reached such a stage that new sanc- tions might embarrass the cause of peace. Dr. Augusto Vasconcellos of Portu- gal, chairman of the committee, how- ever, told the Associated Press he had (See SANCTIONS, Page 5.) RED SOX GET FOXX IN $300,000 DEAL| Collins Also Buys Marcum and Lines Up Cramer and McNair of A's. By the Associated Press. CHICAGO, December 10.—The Bos- ton Red Sox today announced the purchase of Jimmy Foxx, home run slugger, and Pitcher Johnny Marcum from the Athletics for cash, and Pitcher Gordon Rhodes and Catcher George Savino, who was with Syra- cuse last year, Eddie Collins, general manager of the Rex Sox, announced the deal, which is expected to be followed ehortly by another, in which Out- fielder Roger Cramer and Infielder Eric McNair will come to Boston in & deal totaling $300,000 and several players, Foxx, one of the most sought stars in base ball, will play first, Col- lins said. Young Washington Washington is to get a glimpse of its young generation — at school, at play, at work and as just youngsters. The Star is publishing @ new picture series of boys and girls, snapped at random throughout the city. They will appear each week day—may be your friends or relatives. Selections will be made ijust as the photographer finds them, Today’s picture oppears on page B-1 of this edition. the question of total tonnages of the world’s greatest navies. The delegates requested Japan to make a detailed statement of their de- | mands for total tonnages and present | this statement at tomorrow’s meeting of the other powers—the Unitéd States, | Great Britain, France and Italy. Following the meeting it was stated authoritatively that the British re- firmed their opposition to the Japa- nese demands for fleet equality. Japan Presses Decision. Although there was a discussion at the initial meeting of the possibili- | ties of dividing the session into two classifications, the Japanese pressed for the immediate consideration of their demands for a decision concern- ing the total tonnages of navies main- tained by the great nations. ‘The two classifications which have been considered were total tonnage and limitations according to sizes and types of ships and guns. The Japanese insistance conformed with their announced attitude of seek- ing a decision on the total sizes of navies before the possibility of any | decision concerning secondary limita- ticn questions. Next Few Days Vital. Since the total tonnage problem now | becomes the vital question facing the | conference, it is considered by in- formed persons that the success or failure of the efforts to achieve a new agreement will hinge upon the next few days’ deliberations. The BRBritish government issued a communique which said the first meet- (See PARLEY, Page 6.) GRAZING ACT CONTESTED Constitutionality Attacked in Suit Filed -in Oregon. PORTLAND, Oreg, December 10 (#).—Constitutionality of the Taylor grazing act, which gives the Secre- tary of Interior power to Withdraw grazing lands from use, was chal- lenged in a suit filed in Federal Court here yesterday. The action was brought by Joe Abasolo, Eastern Oregon sheep man. Harold L. Ickes, Secretary of the In- terior; F. R. Carpenter, director of grazing, and Carl C. Donaugh, United States attorney here, were among the 38 persons named as defendants. JAPAN WINS FIGHT ROOSEVELT BACK IN WHITE HOUSE Returns to Desk After West- ern Trip to Confer on Budget. BY J. RUSSELL YOUNG, Staft Coriespondent of The Star. | President Roosevelt returned to the | White House today after one of his | busiest days. Yesterday he made four | speeches and received a degree from | Notre Dame University. | The President’s special train ar- | rived at Union Station at 10:30 a.m. | After talking briefly in his car with Secretary of State Hull and Secretary of Commerce Roper, who were on | hand to welcome him, he motored directly to the White House and lost little time getting to his desk. ‘The President’s face was beaming as he waved to a small crowd at the station who had assembled to ap- plaud him. In response to greetings, | Mr. Roosevelt said he had a great time and never felt better in his life. To Confer on Budget. During the afternoon the President was to hold an important budget con- | ference with Secretary of the Treas- ury Morgenthau, Daniel Bell, acting director of the budget, and other ex- perts working on the final figures of | the budget, which the President will | submit to Congress when it convenes | |in_January. ! In his renewed budget survey one of the first problems confroniing Mr. | | Roosevelt will be the completion of the budget estimates for the District | of Columbia. These estimates were | |not in shape to take with him to| | Warm Springs to include in his| budget study in the quiet of that re- treat, The President's activities yesterday suggested strongly to many in his party that his campaign for re-elec- tion has actually begun, at least to | some extent. Two of the four speeches were set speeches and had been pre- pared by him with great care. The first of these was before a huge gath- ering in the Chicago stockyards am- phitheater on the occasion of the an- nual meeting of the American Farm | Bureau Federation. His other set speech was later in the afternoon, at Notre Dame University in South Bend, at a special convocation to commemo- | rate the new commonwealth govern- ment, for the Philippines and during which he received an honorary degree of doctor of laws. In his address the | President asked for church liberty and toleration. Urges World Peace. Mr. Roosevelt’s other two speeches | were extemporaneous. One was at a luncheon given in his honor by the famous Saddle and Sirloin Club in the (See ROOSEVELT, Page 4.) VALUABLE COINS FOUND Two Bags Discovered in Flue of 0ld House. CLINTON, Conn, December 10 (#)—Two bags containing old coins having an estimated face value of $1,000 and a real value believgd much higher have been uncovered in the home of Albert Marquard by work- men installing a new furnace. The cache was found in an old flue. The coins are dated between 1817 and 1865 and include many Spanish and Prench issues. The Marquard house is more than 100 years old and the money is be- .| chase, lieved to have been placed in the flue during the Civil War. Santa Asks Help of Public For Children He Might Miss Toy Round-Up by and N. B. C. Set for Saturday, When Theaters Will Childish faith in Santa Claus is at its height. Little boys and girls are planning and dreaming. They are beginning to think of Christmas trees —and what Santa Claus will bring them when he comes on Christmas morning. Some mothers, listening to their children, are beginning to wonder if there will be any Christmas. Many fathers are unemployed. It makes & difference. “As my husband is out of work, we are unable to have any toys for Christ- mas.” That is an oft-repeated line in the letters coming each day to Santa Claus, in care of The Star. Here is a sample letur' “Dear Santa Claus “We would like for you to vislt our A I Star, Warner Bros. Honor Givers. house Christmas, as my husband is out of work and our children are look- ing forward to Christmas, but we will not te able to get them wnything for Christmas. We have !our boys, ages 11, 9, 7 and 3 years. ' We have two girls, ages 13 and 1 year. We truly hope you will not forget to stop at our place and that you will be able to make Jur children’s hearts glad by letting them know that Santa Claus hasn’t forgot them.” ‘That letter was signed by a mother facing the possibility of seeing her loved ones jump out of bed on Christ- mas morning and have all their faith in Santa Claus destroyed. It will be mighty hard for little chil- Sl b oo i e ] (S¢e BANTA, Page ».. WITH SUNDAY MORNING EDITION MOVE TO GIVE CITY MODERN AIRPORTS DISGLOSED BY U.S. Hopkins Promises to Aid With Funds to Clear Up Controversy. LETTER OF COMMERCE AIDE REVEALS PLANS Present Airport Would Be Remod- eled and Gravelly Point Site Developed. BACKGROUND— One of few large cities in the country without a municipal air- port, Washington is most air-back=- ward of world capitals, has waged a 10-year fight for a modern air ter= minal. Washington Airport, pri- vately owned, has been repeatedly condemned as inadequate and dan- gerous. Civic agitation for estab- lishment of an airport started in 1925, congressional hearings have been held each year since 1926. Development of Washington Air- port by its commercial operators has been Dblocked by pending boundary dispute and by presence of Military road, which divides the field into halves, creating an ever= present hazard. BY WILL P. KENNEDY. The end of the long fight for ade- quate air facilities for the Capital loomed today when it was disclosed that negotiations are under way look- | ing toward the construction of two | airports by the Federal Government. This development, coming unexpect- edly, was disclosed in an exchange of correspondence between Representa- | tive Jennings Randolph of West Vir- ginia, chairman of the Subcommittee | | on Parks and Playgrounds of the Dis- trict Committee, which held extensive hearings on air facilities, and J. M. Johnson, Assistant Secretary of Com- merce. The plan under consideration en- tails taking over and improving Wash- ington Airport to care for immediate needs, and then developing the Grav- | elly Point site—a three-year undertak- ing. Public works funds would be used, and Johnson said he understood Harry L. Hopkins, works progress ad- ministrator, had promised to help. It is proposed to complete the improve- ment of Washington Airport in six months. U. S. Would Supervise Ports. Both fields would be under Federal supervision and the District of Co- lumbia would not be required to share any of the expense, as proposed in previous legislation. Just how the plans would shape in | with the recent renort of the Virginia- District Boundary Commission which held both sites properly belonged to Virginia would have to be determined. Randolph believes that this plan is a satisfactory compromise which should be supported by all interested parties. He pointed out the Depart- ment of Commerce plan voiced the committee’s contention that the Gov- ernment should undertake the estab- lishment of adequate airport facilities in the Nation’s Capital and that it should not be left to the local com- munity. Johnson, in his letter, said: “We are all convinced of the urgent need for improvement of airport fa- cilities in the District of Columbia. The present transport terminal here, in our opinion, borders on a condition of danger. “It is suggested that the Depart- | ment of Commerce recommend that a Federal airport be established at the present Washington Airport site—that P. W. A. funds be allocated for its pur- and that relief labor be ob- tained from W. P. A. in order to make the necessary improvements for a suit- able airline terminal. This projecy | could be completed in six months. “At the same time work could be started at the site known as Gravelly Point with Works Progress funds or Public Works funds with a view to completing the project over a period of three years. “The Department of Commerce does not wish to take the initiative in this matter if it might conflict in any way with the plans of your committee and I would therefore appreciate your views on the subject. “I understand that Mr. Hopkins has already signified his willingness to be of assistance in this matter. If these improvements are to be carried on under W. P. A, it is highly essential that the plans be expedited and that an allocation of funds be asked for without delay. “It is our opinion that we are ap- (See AIRPORT, Page 5.) —_— TRUCE IN POLITICS HALTS CAIRO RIOTS Fighting Subsides With News of Union Against British Domination. By the Associated Press. CAIRO, December 10.—Street fight- ing. except for widely scattered small clashes, subsided today in Cairo after a month of intermittent battles be- tween Nationalists and police. ‘The peace followed an announce- ment in the Arabic press that Egyp- tian political parties had agreed to present a solid front against alleged British domination. Neither official announcements nor statements from any leaders were im- mediately issued to confirm the news- paper announcement, but political ob- servers stated they believed Egypt's internal disagreements were ended, at least for the present. It was stated that a coalition would not involve changes in the cabinet, although the government would be guided by the wishes of the united Authoritative sources said such & codltlon'pmhbly would be satisfied nothln:zlnthmthcmplm mfl of - British influence B, A SILVER COLLAPSES ON LONDON MART Heavy Offerings Force Halt. | Traders Afraid U. S. Buying at End. By the Associated Press. | LONDON, December 10.—Flooded with heavy offerings from the Far East, the London silver market col- lapsed today and all dealings were suspended as brokers locked them- | selves in the exchange and refused to set a priee in the absence of offers from the United States. Brokers announced at 2 p.m. the doors would reopen at 4:15 pm. but | they were still closed at 5:15 p.m. The spot price was below 29 pence | per ounce for the first time since | April, and speculators were deeply worried over the possibility that the United States does not intend to con- tinue President Roosevelt's silver- buying policy. The brokers' meeting broke up at 5:55 pm Leaders announced they were clos- ing without fixing a price because there were no buyers. Stock Market Affected. NEW YORK, December 10 (#).— | Principal world silver markets came | to a standstill today as selling orders flooded London and buyers could not be found. Non-ferrous metal shares dropped $1 to about $8 a share in the New York Stock Exchange but the mar- ket turned quiet after the selling flurry subsided. The impasse came in the silver markets after a slump in London yes- terday, and the marking down of the New York price for foreign silver by 5 of a cent to 64% cents an ounce. Refuse to Set Price. . Handy & Harmon, principal New York silver brokers, announced today that no price would be fixed for foreign metal unless a buyer could be found, after Lodon brokers refused to fix a price. The United States Treasury price for newly mined metal from American mines was continued at 77.57 cents an ounce. It was believed in Wall Street to be the first time that a situation of this kind has arisen in the London market. There have been occasions in the past, prior to the American ‘Treasury's silver program, when Lon- don was unable to fix a quotation based on business there, but on those occasions brokers collaborated with New York and the sterling equivalent of the New York price was usually posted as the official London price. 20,000,000 Ounces Offered. Private advices to Wall Street metal circles from London said there were about 20,000,000 ounces of silver offered for sale in that market today without a single buying order to offset it. In the past féw months the American Treasury was said to have been the only buyer of silver of any importance in world markets. There was a moderate amount of confused trading in silver futures in the Canadian Commodity Exchange in Montreal, with losses ranging from 2.05 to 3.80 cents an ounce by mid- afternoon. The December position was then quoted at 59.59 cents bid, 59.61 asked. BOY WHO KILLED FATHER IS FREED Haugeman Falin, Virginia Youth, Said to Have Slain Parent in Self-Defense. By the Associated Press, APPALACHIA, Va., December 10.— Trial Justice J. T. Hamilton yesterday freed Haugeman Falin. 16-year-old Wise County boy, charged with the shotgun slaying of his father in their ‘Wildcat Valley shack. The youth was placed on probltlon however, and must report each month to Welfare Officer E. P. Boyden during the next year. Ten witnesses, including Hauge- man’s mother, Mrs. Maggie Falin, testified in support of the youth’s contention that he killed his father in self-defense. Although he did not take the stand today Haugeman, upon surrendering TUESDAY, DECEMBER 10, 1935—FORTY-SIX PAGES. ANYHOW, 0L GIRL, MINE'S AT LEASTA DEMOCRATIC HAT G-Men May Ride In Compartments, To Conceal Guns McCarl Concedes Added Expense May Be O.K. as Contingent. The G-men have landed Controller General McCarl. Consequently agents of the Federal Bureau of Investigation hereafter will be allowed to use a Pullman com- partment or drawing room when traveling on missions requiring them to go heavily armed. This was disclosed today when a de- | cision was made public in McCarl's ¢ Foening Star ek ke ke IVES LINKS G. W. HALFBACK IN GASE AI|e§es G. W. Trinastich Tried to Stop Prosecu- tion of Hoeppels. George W. Trinastich, who allegedly tried to stop the prosecution of Rep- resentative John H. Hoeppel of Cali- fornia and his son, Charles J. Hoeppel, | was identified today as a halfback on the George Washington University varsity foot ball squad. James W. Ives, star Government office in which he reversed a previous | witness, yesterday identified Trinastich ruling to the Justice Department when | in District Supreme Court as the man he had held that the economy act | Who recently urged him to drop the prescribed that travel must be “at|case against the Hoeppels, charged | which | with conspiring to sell Ives a West | Point appointment for $1,000. the lowest first-class rate,” meant simply a lower berth. ‘The depnn.mem. had protested (See “G-MEN “ Page 2.) A. A. A. Constitutionality Is Attacked by Pepper in Supreme Court. BACKGROUND— Imposed to raise revenue jor payment of farm benefits, process- ing tazes brought storm of com- plaint from concerns subject to levy, became basis for court at- tacks upon constitutionality of ag- ricultural adjustment act. First test reached Supreme Court this Fall on complaint by Hoosac Mills of Massachusetts, plea for recovery of $81,694 tares. Federal district judge in Boston ruled law valid, was reversed by Circuit Court of Appeals. Supreme Court consented to review case, oral arguments opened yesterday, decision erpected in January. By the Associated Press. New Deal farm subsidies were de- nounced as bribery and robbery today in the Supreme Court. Challenging the constitutionality of the A. A. A, former Senator George ‘Wharton Pepper, Republican of Penn- sylvania, argued the Government “of- fers a pecuniary award to the farmer who can't afford to decline it. “He sells his freedom for a mess of pottage and sells his allegiance to the States,” he said, in defending refusal of the Hoosac Mills of Massachusetts to pay processing taxes amounting to $81,000. The nine justices listened in silence for the most part. The thronged court room was still. Solicitor General Stan- ley Reed waited for a final few words before the case would go to the guard- ed conference room of the court for final decision. < Polls of Farmers Hit. Belittling the polls of farmers to determine whether they should con- tinue the crop control plan and re- ceive benefits, Pepper likened these to a count of “college students as to whether the allowances from their fathers should be continued.” A. A. A. debate occupied the time until midafternoon, when the turn (See COURT, Page 17.) NEW DEAL SUBSIDY‘{ 1S CALLED BRIBERY After Ives had identified Trinastich, who was seated among the spectators in the court room, the George Wash- ington athlete was served with a subpoena and ordered to the witness room following a conference between Judge Daniel W. O'Donoghue and de- fense and prosecution attorneys. The defense expects to call him as a wit- ness later. Ives Cross-Examined. ‘Throughout cross-examination of | Ives, former Olympic athlete, the de- | fense today attempted to support its contention that the Representative's interest in Ives’ appointment to West Point was due entirely to a desire to aid a group of Army officers in getting an outstanding athlete for the Military Academy. Maj. Gen. Samuel T. Ansell, U. 8. A, retired war-time judge ad- vocate general of the Army and chief of Hoeppel's defense counsel, showered Ives with questions about the War Department’s interest in his efforts for admission to West Point. Ives, however, insisted he did not know any Army officers were particularly interested in his candidacy. Ives had told how in his efforts to to the War Department with a letter of introduction to Gen. Edgar T. Con- ley from Maj. Gen. Paul Malone, for- mer commanding officer of the 3d Corps Area. Later he told of dictat- ing a letter to Representative Hoeppel about a West Point appointment in the adjutant general’s office on which | Col. Raymond S. Bamberger made a written notation. Gen. Ansell inquired if Col. Bam- berger’s interest or the interest of other Army officers in him was due to an apparent desire to get a first-class athlete for the Military Academy. To that question Ives replied: “I don't know what their thoughts were. Nothing was said or done to give me that impression.” Ives had just previously testified he sought the appointment because he was interested In an Army career and not its athletics particularly. (Picture on Page A-11.) CLIPPER SOARS WEST ALAMEDA, Calif, December 10 (#).—Pan-America’s Philippine clip- per roared toward Honolulu today on the second westbound trans-Pacific airmail flight. Over the route blazed by the China clipper, the air cruiser left Alameda with 15,000 letters late yesterday on the 2400-mile journey to Honolulu. That is the first leg on a flight sched- uled to carry her to Manila by Decem- ber 16. PHILIPPINE FREEDOM Will Self-Rule Bring Independence to Islands or Will Another Power Move In as United States Moves Out? OBSERVER OUTLINES SITUATION 2 McKelway, News Editor of The Evening Star, who attended the Quezon inaugura- tion, gives the background of the problem in a series of nine articles, the first starting today on page A-3. UP Means Associated Press. get a West Point appointment he went | Yesterday’s Circulation, 133,713 Bome Returns Not Yet Recelved, TWO CENTS. HARDGROVE DENIES HE BANKED §81,000 OVER 1524-33 PAY Former I. R. B. Official Ad- mits Winning Big Sums on Races. TAPPED-WIRE EVIDENCE HELD MISINTERPRETED Telephone Conversation Dealt With Discussions of Personal Nature, He Testifies. While admitting winning large amounts on the races, John W. Hard- grove, former internal revenue official charged with income tax conspiracy, denied in District Supreme Court to- day he banked $81,000 more than his Government salary between 1924 and 1933. 2 Hardgrove, former associate chief conferee of the bureau, was subjected to a vigorous cross-examination by United States Attorney Leslie C. Gar= nett concerning his admitted game bling operations and about $9,500 in payments made to him by a “Mr, Pierce,” identified as a man who had some tax cases pending before the Internal Revenue Bureau. Hardgrove took the witness stand in his own defense and denied ve- hemently the Government’s accusa- tions that he conspired with Hen- ning R. Nelson, a former employe of the bureau, and Frank B. McElhill, New York tax consultant, to defraud the Government by fixing the tax case of Thomas W. McCarter, New Jer sey public utilities executive, for a fee of $10,000. Denies Trust Accusation. Garnett brought out that Pierce recorded a deed of trust as security for the $9,500 subsequent to Secre- tary Morgenthau's revelation of the alleged McCarter plot. “As a matter of fact,” Garnett de- manded of the witness, “didn’t you put that deed of trust on your house, 50 as to make it appear that Plerce’s payments to you were loans and not gifts?” Hardgrove denied this. He agreed, under Garnett's questioning, that he paid no interest to Pierce until after the deed of trust was recorded. Hard- grove denied, however, having had anything to do with Pierce’s tax cases in the bureau. Quizzed by the district attorney about deposits running into thousands of dollars which Hardgrove made in | banks here and in New York City, the defendant said he got some of the money out of a box, some of it from his wife and much of it from betting on horses. Asked specifically about a $6,000 de posit at a local building association, | Hardgrove replied: “That was some | money I had.” “Where did it come from?* Garnett inquired. “Well, I did a little gambling prob= ably—on race horses.” Garnett asked if his income in ex- cess of his Government salary in 1933 did not amount to $10,000. Hard- grove estimated he had won about $15,000 that year on the races. Agents Were in Error. Hardgrove under further cross-exe amination asserted internal revenue agents were in error when they testi- fied they overheard references to the McCarter case when they tapped in on Hardgrove telephone lines. William H. Collins, attorney for Hardgrove, sent a parade of character | witnesses before the jury this morne |ing. Those who testified that Harde | grove’s reputation was good were | Stanley G. Willis, next door neighbor to Hardgrove on Varnum street; John E. McClure, attorney; Olin G. Garde ner, accountant; Dana Burnett, fore mer internal revenue commissione: Robert Mancill, internal revenue em= plove; John E. Walker, attorney; Richard 8. Doyle, attorney, and Ar- thur D. Furlong, Harry P. Reed, Frank A. Lindsell and William T. Spear, all of the conference section of the income tax unit. Spear, 8 reviewer in the section, testified he had approved and signed the McCarter tax adjustment without previously having discussed it with Hardgrove, who occupied the adjoine ing desk. The mophone conversations were ex- (See TAX 'rRlAL. Page 3.) TEXAS FLOOD RECEDES; MANY LEFT HOMELESS Toll Is at Least One Dead and $2,000,000 Damage in Houston. About 20 Missing. By the Associated Press. HOUSTON, Tex.. December 10.— Flood waters receded from Houston today, leaving hundreds homeless, one known dead, almost a score missing and damage estimated at more than $2,000,000. National Guardsmen patroled the flood section to prevent vandalism last night and police and firemen searched wreckage for bodies. Joe Wilson said he felt sure his son, Ollie, 15, was dead. Playmates told of seeing the boy drown. All highways were reopened last night and railroad and bus traffic was resumed. Readers’ Guide Amusements Comics Cross-word Puzzle Editorials Finance Lost and Found ‘Washingtort Wayside Women’s Features ... i