Evening Star Newspaper, December 13, 1935, Page 6

TAX CONSPIRATORS ARE HELD IN JAIL Two Former Revenue Bu- reau Employes and Con- sultant Are Convicted. . Convicted after less than three bours’ deliberation yesterday after- mnoon by a jury in District Supreme Court, two former Interaal Revenue Bureau employes and a New York tax consultant were behind bars at the District Jail today, awaiting sentence. * The conspirators—John W. Hard- grove, former associate chief conferee f*the bureau; Henning R. Nelson, & er suditor of the bureau, and Prank M. McElhill, tax accountant of New York City, were denied liberty under bond by Justice F. Dickinson Tetts. Fach of the men faces a sentence of from four months to two years or $10,000 fine, or both, under Federal conspiracy laws. Justice Letts prob- adly will pronounce, sentences next Friday. * The jury of 11 men aad one woman bad listened to more than a week of testimony by Government witnesses, who told of plotting by the men to *clear up” a pending income tax assessment of $149,000 against Thomas N. McCarter, New Jersey public util- ities magnate, for a fee of $10,000. Tell of Phone Conversations. The most damaging testimony came from revenue agents who listened in on telephone ccaversations among the plotters after McCarter had com- plained to Secretary of the Treasury Morgenthau about proposals made to him by McEmhill. McCarter was one of the first witnesses for the prosecu- tion. The Federal wire-tappers related to the jury excerpts of cryptic telephone conversations between MCcELhill and the other conspirators, during which McElhill spoke of “the man across the river” and his unwillingness to pay more than $10,000. Part of ° the conversation had to do with golf, and the de- fense sought to show the discus- sion was of per- sonal and social nature only. Another dam- aging point bear- ing on the credi- bility of Hard- grove was the discloture by the Gov- ernment that he had banked more than $81,000 in excess of his Govern- ment salary between 1924 and 1933. Hardgrove denied accuracy of these figures, but admitted having won $15,000 on the races. “The indictment against the men charged them specifically with con- spiring to defraud the Government by dépriving it of the “honest, faithful and efficient services” of its employes. Display No Emetion. None of the defendants displayed emotion or made any comment when the jury foreman announced the ver- dict before a hushed and crowded court room. They were taken to jail immediately in a van, handcuffed o one another. Friends of United States Attorney Leslie C. Garnett congratulated him and his assistant, George E. McNeil, on their handling of the prosecution. The defense attorneys were William E. Leahy, Leo A. Rover and William H. Collins. I THE WEATHER l District of Columbia—Rain tonight and probably tomorrow morning; not much change in temperature, lowest fonight about 36 degrees; fresh to strong northeast and north winds. Maryland—Rain tonight and prob- ably tomorrow morning, except snow in the mountains; somewhat colder @n the coast tomorrow. Virginia—Rain tonight and possibly fomorrow morning; somewhat colder i southeast portion. ‘West Virginia—Cloudy, snow or rain i east portion tonight and probably in extreme northeast portion tomor- fow morning; somewhat warmer to- morrow in west and south portions. 4 Record for Last 24 Hours. Temperature. Baj Hardgrove. Festerday— 4 pm 3 Record for Last 24 Hours. (From noon yesterday to noon todsy.) = Highest, 45. noon today. Year ago, 44. Lo 38, 9:30 pm. yesterday. Year 7 Record Temperatares This Year, s Flshest. 98, on July 20. west, —3. on January 28. Humidity for Last 24 Hours. = (From noon yesterday to noon today.) * Highest, 85 per cent, at 4:15 a.m. todsy. Lowest, 54 per cent, at 1 p.m. yesterday. -1 Tide Tables. d by U t @urnished by United States Coast and ‘Today. Tomorrow. -10: m. 10:59 a.m, ‘9 4146 p.m. 10:01 a.m, - Automopile lights must be turned on ©ne-half hour after sunset. Precipitation. Monthly precipitation in inches in the Capital (current mon! ate): 3 Record. 9 M Bt Ao No Chances on 13 | UF1OFEQ BABY she sits on the beach at Miami the bathing suit she dares to wear. BY CONSTANTINE BROWN. Everything is going along nicely in the world according to plan. The Ethiopians will have to pay for the broken pots by losing their in- dependence and a good portion of their territory to Italy; Japan will not get naval parity, and a camouflaged naval race will begin esrly next year; the five provinces in North China shortly will become Japanese territory, and bigger and better conflicts in Europe are expected within the next few months. * ¥ % * The Geneva sleeping beauty, the League of Nations, had been awakened by the kiss of that handsome prince, Capt. Anthony Eden, and showed a spurt of energy—for a little while. She opened her eyes wide when she heard the thunder of the Italian guns of Ethiopia. Now Prince Charming tells her: “It's nothing, dear, go back to sleep,” and she is going, des the efforts of the other knights keep ‘There are two determining factors which have induced the British cabi- net to become realistic by admitting at the eleventh hour that the Ethiopian war is merely a colonial campaign. One is the fact that the British in- telligence service has produced con- clusive proofs that the Italians mean business and Mussolini’s statements, “we shall meet violence with violence,” were not empty words. Furthermore, Il Duce has the means to make such @ challenge effective. The other factor, probably more important than the first, is France’s reluctance to fight “somebody else’s war.” While Laval was publicly giving assurances to the British government that France would “stand by the League,” privately the French premier was warning his - 89 B Bt 190 ~24 119 -IHOON} SRR vy SRSSS00a, i D 21200 BRSHRR st ommstanen OO BN DI Ba33RBLBIREY: g e acicion e [~} 23 223 H 1assisismess 8oSB83SES: sy tas ke 333888 23 e British friends not to push him too hard. Another war, said the shrewd premier, will make mince meat of the politicians who are ruling France today. The ‘ people will take power in their own hands and will refuse to fight. * ok ok % There is also a third consideration which precipitated the sending of a brand-new set of peace proposals to Italy. That is the situation in Egypt and in Arabia. Mussolini has not spent money and energy in those outposts of the British Empire for nothing. The nationalist anti-British element in Egypt has been active since September. At first it was believed in London T | that the street riots were only the usual outbursts of the Egyptian stu- dents paying their debt to the Italian money lenders. But it soon became obvious that these riots were more deep rooted and that Great Britain might have to face again the music of 1924. King Ibn Soud, despite his friendly feelings toward the Ethiopians, was getting restless, too. He may love Selassie, in accordance with Mo- hammed’s instructions in the Koran, but after all the majority of the Ethiopians are unbelievers and the prospects of eventually becoming King PLYWOOD Makes a Perfect Base for Christmas Displays T 0} - ree, "Get year. 6 NEW TRUCKS assure prompt delivery on even your smallest order. Phone us now J. FRANK ELLY 2121 Ga. Ave. NOrth 1341 3 Pretty Estelle Whitney has every good reason to cross her fingers Today’s Friday the 13th, and just look at ~—Copyright, A. P. Wirephoto. This Changing World War and Peace Ups and Downs of Europe Con- tinue, With League of Nations Going Back to Sleep. | of Iraq—if Britain got really into trou- ble—pleased him. * ok k% That King George should be brought into the picture is only na- tural. The Conservative party obtained a handsome majority in the Parliament mostly because of its stand against Italy and for the League of Nations. Much criticism is bound to de- velop as a result of what the pro- League people call “Great Britain’s betrayal” It is conceivadble that a number of new members of Parlia- ment should oppose the peace terms because of their promises to the electors. There is only one way to hush up all criticism in Britain: To whisper that “the King de- manded it.” The slogan “the King can do no wrong” is accepted 100 per cent by the British people. * ¥ x . Mussolini is naturally delighted with the Laval-Hoare peace plan. He may not lke it all, byt he is con- vinced that henceforth' the British and the Prench will see no serious ob- jection in granting him a little bit more than they have offered at first. The only person who really does not much care what the future has in store is the King of Italy. A prominent American recently re- turned from Rome tells the story that ithe King was asked how he felt about this whole Ethiopian-League of Na- tions-Ttalian matter. Victor Emanuel is said to have answered: “If Mussolini obtains Ethiopia I shall become Emperor of East Africa; if he fails I shall become 1f the Italo-Ethiopian peace ma- terializes, there will be a rush on the part of the smaller nations to obtain protection from the big mer'n, outside the League of Na- They will scramble for shelter under the wing of Great Britain, Italy, France, and Germany, in accordance with their racial afilia- tion and geographical position. This, of course, is nothing new. Ever since the League was bomn, & large number of European states THAT' RULING SUSTAINED Court of Appeals Holds In- fant Is Son of Serv- ant Girl. By the Associated Press. ST. LOUIS, December 13.—The St. Louis Court of Appeals today up- held Special Commissioner Rush H. Limbaugh in his report that a “gift of God” baby, claimed both by Anna ‘Ware, unwed servant girl, and Mrs. Nellie Tipton Muench, former society matron, was the child of Miss Ware. The court decreed that the infant continue as a ward of the court until next Wednesday to allow Mrs, Muench, her physician husband, Dr. Ludwig O. Muench, and two other respondents time to file motions for & rehearing. All" Objections Overruled. All exceptions and objections listed by the respondents last Wednesday to Limbaugh’s report, made after con- ducting s habeas corpus hearing brought by Miss Ware for return of the child, were overruled. In his findings, Limbaugh asserted *Mrs. Muench did not give birth to & child.” Limbaugh, in filing his report De- cember 5, recommended the child be returned to Miss Ware, Baby Born August 18. Miss Ware's baby was born here at the home of a midwife last August 17. Mrs. Muench announced the birth of a son August 18, terming it “a gift from God in my time of distress.” At that time she faced kidnap con- spiracy charges, of which she subse- quently was acquitted, in connection with the 1931 abduction here of Dr. Isaac D. Kelley. Limbaugh asserted she announced the birth to “gain sympathy from the Jury.” Utilities (Continued From First Page.) two days of defending the adminis- tration’s farm program before the Supreme Court, the Attorney General | explained his personal appearance by | saying: “I would not have spoken at all, or have come into this court, except that I ‘have been deeply moved by the strain under which many of my asso- ciates have been working.” The injunction suits attack the holding company law, which would regulate utility holding firms and eliminate those deemed “unneces- sary.” About 50 such suits have been bought. Higgins Says Case “Hand-Picked.” “Suits have been rained upon us from every point in the zenith,” de- clared Cummings, who compared the Justice Department to a pugilist com- pelled to fight “a ringful of opponents™ at once. But John C. Higgins, New York utility lawyer, accused the Government of “hand-picking” its test case, and said it did not cover all points in- down the court battles, if the utilities could have a say in choosing the battleground. Justice Jennings Bailey suggested the disputants try to consolidate the seven cases pending here, but Cum- mings said: “I think negotiations would be en- tirely futile.” Matter Under Advisement. Higgins, jumping to his feet, replied: “We would be very glad, in spite of the Attorney General's statement, to undertake negotiations, but we would not want to force ourselves on the Government.” Justice Bailey took the matter under advisement. His decision is not ex- pected for at least two weeks. In the Electric Bond and Share case the Government seeks to compel the holding firms to register with the Becurities Commission. This is the first step in administration of the new law, passed at the last session of Congress after a historic contro- versy. formed alliances, ententes and what not among themselves, but as a mat- ter of form they submitted these ar- rangements or the part which was fit to be shown—to the League. Hence- forth they will disregard that formal- ity and the various political camps will be more clearly defined. TRUNKS—'mse o=t Repairing of Leather Goods G.W.King,Jr. 51111thSt.N.W, S WHY tAartini & Rossi is the world's standard Telephone Girl Risks Life = |PILOT SHOWS NERVE To Summqn Dashes Into Bumfig Building to Repeat Her Alarm. On Verge of Collapse as First Fighters ° Arrive, Risking ‘her life to summon fire ap- paratus a second time, Miss Frances Martin, 19, telephone operator at the Coast-in-Garage, 514-516 Bighth street southeast, had a narrow escape from flames that swept the establishment late yesterday. Miss Martin telephoned an alarm when the blaze was discovered. After a few minutes, thinking the alarm had gone astray, she ran back into the burning building and again called. On the verge of a nervous collapse, she escaped just as the first contingent of firemen arrived. More than 2,000 persons, homeward bound from the business district, watched the firemen quickly bring the flames under control. Officials of the concern said they could not estimate the damage, al- though it was extensive. The fire is believed to have started from a gaso- line motor on a pump. Deputy Fire Chief John Carrington Fire Apparatus MISS FRANCES MARTIN. ~Star Staff Photo. escaped injury when his car collided with another machine at Ninth street and Pennsylvania avenue as he was snswering the alarm. George L. Lockhart of Gainesville, Va., driver of the other car, also was unhurt. CHARGES DENIED BY CITIES SERVICE Stock Manipulations Laid to Subsidiary by F. T. C. Investigator. By th- Associated Press. Stock market manipulations by a subsidiary designed to create an active market for Cities Service Co. secur- itics were charged yesterday in a re- port filed with the PFederal Trade Commission. The charge brought a guick denial in a statement by Robert Burns, Cities Service counsel, who declared the accusation was an “old story, first put ou: by the Pederal Trade Com- mission two and one-half years ago, and referring to events which oc- curred over six years ago, and has been refuted by the company every time it has been stated.” It was made by A. E. Lundvall, Trade Commission investigator, who asserted that “Cities Service Secur- ities Co, a wholly-owned subsidiary of Cities Service Co., was actively engaged in creating and maintaining an active market” for the securities. Charges Artificial Demand. “This function was most actively performed,” Lundvall reported, “dur- ing those periods in which new origi- nal issues of the securities were marketed. * * * “This function consisted of purchas- ing from day to day in considerable volume on the organized exchange securities of the same kind as the securities then being marketed or about to be marketed. This tended to prevent the market price of the securi- ties in question from sagging under the influence of the additions to the supply because of the demand created by the securities company purchases.” Burns asserted “it was public de- mand and public buying which was, and always has been, responsible for the market prices of Cities Service Co. securities.” Reviews 1929 Rise. “The high prices which the com- mon stock of Cities Service Co. at- tained in 1929 were due entirely to the discovery of & major oil poal by one of the subsidiaries of Cities Serv- ice Co., which attracted public interest at a time when security prices were rapidly rising, both in price and volume.” Lundvall reported that from 1922 to 1930 the Cities Service Co. collected from its subsidiaries $11,611,601 as the amount they would have had to pay in PFederal income taxes if they filed separate returns. Lundvall said Henry L. Doherty & Co. once owned all of the outstanding 1,000,000 shares of 5 per cent non- cumulative voting stock of the com- pany and acted as its fiscal agent. He described Doherty as sole owner of Henry L. Doherty & Co., which col- lected management and engineering fees from the subsidiaries for the ac- count of Cities Service. Film Actress Wins Divorce. LOS ANGELES, December 15 (#).— Alice Carpenter, brunette film actress, was awarded a divorce after she testi- fied she led a lonely existence during most of her married life with Archie Carpenter. “He would stay away from home to gamble,” she said, “and J had to amuse myself with a game of “solitaire.” Open Saturday "Til9 P M, 1314 F Street N. MAIL A BOX of the. Famous Ty Fresh Homemade Candies —now—to the folks back home. Stop at one of the 7 convenient Fannie May shops, select from over 50 famous varieties of the purest and finest fresh home made candies in America. The only charge is the small cost of the carton and postage. We insure your candy free against loss or damage. Leave your order now. Fresh. Homemade Fannie May. Candies taste different, look different and are entirely different and superior to the commercial factory-made box candies. When you buy Fannie May, ydu-are buying candies made FRESH TO-DAY and you select the variety you desire—all at Fannie May's -established low SPECIAL NOTICE—We make price. - This year, CANDIES—THE FAMOUS FANNIE MAY. send a box of a specialty of supplying Fannie May Candies to Sunday Scheols, Ledges, Clubs, group orders of employes. See us before placing your order. All Stores Open ll-ul 10:30 P.M. Evenings and Sundays 7 Fannie May Candy Shops 1010 E St. NW. ' 3305 fath St. N.W. 1704 Pa. Ave. N.W: 621 F St N.W. 1406 N. Y. Ave. N.W. 1384 F 5t N. ' 1317 E St NW. IN CRIPPLED PLANE ——— Passenger Grins in Face of Death as Propeller Cuts Fuselage and Fire Starts. B the Assoctated Press. WICHITA FALLS, Tex, December 13—A drama of the air—a dislodged motor tearing through the fuselage, the plane afire—was described last night by one passenger who said he “grinned” in the face of threatening The 12-passenger (Braniff) airliner, although badly damaged, was landed 8t 60 miles an hour by Pilot Lee Bishop, ripping through a fence to a stop on a ploughed feld near Chil. dress. “First the motor slipped from its moorings and the propeller started cutting through the fuselage,” recalled Ervin Burns, Los Angeles, a passenger with Walter Cline' of Wichita Falls, Tex., on the plane. Both are ofl men. “The propeller was so close that Co- pilot George Farnham had to sit on his feet to keep from being cut, but he kept right on sending out radio messages to nearby airports. “Then the left side caugh’ fire. Bishop immediately cut in the built-in extinguishers and that difficulty was taken care of in fine shape.” 0il Starves Gulls. 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