Evening Star Newspaper, November 15, 1936, Page 8

BUSINESS PIRAGY ISBAREDBYF.B.1. Hoover Agents Arrest Many on Bankruptcy Act Vio- lation Charges. BY REX COLLIER. Recent inquiries by the Federal Bu- reau of Investigation have disclosed that organized crime has invaded the fleld of business with & racket that is netting its promoters huge profits. “Commercial piracy” is the term ap- | plied to the racket by J. Edgar Hoo- | ver, director of the F. B. I Numerous arrests have been made by his sgents during the last few weeks, and ring- leaders have been charged with viola- tion of the not-so-well-known Federal bankruptcy act The racket, in brief, begins with the “purchase,” on credit, of valuable stocks of merchandise for the alleged purpose of opening & store. After the goods are delivered by the unsuspect- ing wholesale dealers, trucks are backed up to the “store” at night, and the entire stock is carted away, to be disposed of through “fences.” “Purchasers” Disappear. The “purchasers’ usually disappear about the same time. The frauds often are not discovered until creditors in- | stitute bankruptey proceedings against the missing “merchants,” whereupon it often is found the names of the lat- ter are fictitious, A Federal grand jury at New York City returned indictments last week | against 14 members of an alleged ring of such “commercial pirates,” the so- called “front man” of which told the G-men he formerly was chauffeur for the late Arthur (“Dutch Schultz”) | Flegenheimer, notorious gangster, slain last year by underworld enemies The “front man,” Albert Thomas, 1s well known to police in New Jersey and New York. He assumed the name “Hugo Berg” for the purpose of pos- | ing as a business man. Nine of the men charged with conspiring with him | “to conceal assels” have police rec- ords and five have been convicled of previous bankruptey frauds. This ring, - Hoover asserted, has “swindled creditors of merchandises costing well over & quarter of & mil- | lion dollars.” He sald it opened in Boston & “rackel” known as the Aetna Sportswear Co., through which thou- | sands of dollars of merchandise was purchased on credit through various fraudulent and deceptive devices.” | Goods Disposed of Quickly. “As rapidly as the merchandise was received at Boston.” Hoover said “they would dispose of it immediately by reshipping it to various other points, where it would be disposed | of at greatly reduced prices through fences,’ and In some Instances they would conceal the merchandise by storing it in hiding places known as| *drops.’ " | Hoover stated that when the cred- ftors appeared at the place of busi-| ness of the company they found no one there and all stock gone. In an| effort to forestall identification, he declared, the racketeers had washed | all shelves, counters, walls and floors | before leaving | The F. B. I recently invoked the | bankruptey act against snother na- tionally known (in police circles) | swindler and ex-convict who had worked a similar racket in ecattered parts of the country. man, Max Kennet Reiner, alias Harry | B. Rosen, was sentenced a few years | ago to five years in a Federal peni-| tentiary for “concealing assets” in Los Angeles, Calif. 3 Diverted in Transit, The investigation of Reiner showed he was disposing of his merchandise | *o0 rapidly that some it never reached | his store, but was diverted In transit | : to “fences.” Reiner had opersted in| Cleveland, Ohio; Denver, Colo.; New | York City and other citles. Agents of the bureau are investi- gating cases of ‘“commercial piracy” in other places, it is understood. These inquiries are apart from | racketeering investigations nu(horm:d by the Federal racketeering statute, which makes it a Federal crime to employ terroristic tactics against in- terstate trade. TEACHERS TO MEET Dance Instructors to Have Ses- sion Here Today. The Dancing Teachers Club of the District, Maryland and Virginia will meet today at 3 pm. in Thayer's Stu- dio, 1215 Connecticut avenue. Mrs, Montie Beach of Houston, Tex., will be the principal speaker, and plans for the convention of the Dancing | Masters of America to be held here | next August will be discussed. Joshua T. Cockey of Baltimore, Md., first vice president of the national or- ganization, and Ruth Eleanor Howard, editor and publisher of the American Dancer, also will speak, widely | & Thi.!" E THE SUNDAY STAR, WASHINGTON “Cave Woman” Sent to Jail Keeping a revolver at hand during at at‘empt to take Phineas Crooker, 44, of Marlboro, Mass., to the altar and a subsequent tour of taverns earned Mrs. Esther O’ Rumke 29,-seven days in jail at Chicago. Crookzr at r:gM She is shown, left, in court with her attorney, Catherine Carpenter and »‘Cupjnght A. P. Wirephoto. COMMON COLD AIDS INROADS OF DISEASE| Contagion Usually Begins by Contact—Medical Society Urges Care in Bulletin. ’ Most contagious diseases are usher- ed in by what appears to be a com- mon cold, which may last for several days before the disease ilself appears, it was pointed out yesterday in & bulle- tin issued by the Committee on Public Health of the District Medical So-| clety. Discussing ‘the spread of conta- | glous diseases, the bulletin said this “takes place from one person to an- other, either by direct contact with the sick person or with some article with which the sick person has been in contact. By observing a few simple rules, the spread of communcable dis- eases can be controlled to & great ex- tent. “It is during this period,” referring | to the common cold, it was explained, | “that the patient is most highly con- taglous and can spread the disease by nasal discharge or by droplets of spu- tam expelled by coughing. Don't neglect & common cold, especially if there is a fever, for this may be the onset of some contagious disease. “If your child has been exposed to & conlagious disease, notify your fam- {ly physician immediately. If & mem-|and fumigating of the sick room | ber of your family has & contagious | after the ness. disease, see that it does not spread to another member or to another fam- 1ly The bulletin urged isolation in | single well-ventilated room of any | one suffering with contagious dis- | ease, sterilization of all articles from | the sick room used by other members of the family und thorough cleaning | "OUR PLUMBER’ WHICH OIL BURNER? Compare the Autocrat with any oil burner regardless AUTOCRAT e OIL BURNER FREE! 275 Gals. of Fuel Oil With Every Installation QUIETER MORE_ECONOMICAL LONGER LIFE @ SIMPLE IN OPERATION @ STURDILY CONSTRUCTED NOVEMBER ONLY 250 , Regular Price $325.00 NO MONEY DOWN THREE YEARS TO PAY. ALL PARTS GUARANTEED THREE YEARS! AUTOCRAT OIL BURNER SALES CO. 3102 Monroe St. N.E. North 6759 ON DISPLAY EXCLUSIVELY AT George’s RADIOBAR } WITH PHILCO...... b W_HOMECOMING EVENTS PLANNED Formal Dedication of New Social Science Hall to Be Feature. Ofcials and students of George | Washington' University will be busy | this week and next with preparations for the annual home-coming cekbm- tion Thanksgiving day. A feature of the ceremonies will b(— | the formal dedication of the new social sciences hall at 5 p.m. Thanks- | giving eve. Student and faculty com- | mittees will be on hand that Wed- nesday to greet alumni and alumnae, register them and show them through new buildings, including the biologi- cal sciences building, the Hattie M Strong women's residence, sorority | hall, the fine arts studio and me president’s building. A tea for the alumni will be held Get MORE 1936—PART ON at ¢ p.m, November 25 in the Strong dormitory. At 4:45 President Cloyd Heck Marvin will welcome visiting graduates at a campus rally at which there will be songs, cheers and music by’ the university band. Praternities will hold open. house from 8 to 11 pm. that night, dec- orating the fronts of their chapter houses in competition for a cup. ‘The next event will be a “pep meet- ing” at the Rialto Theater at 11 p.m. In addition to hullabaloo by the stu- dent body, etc., movies of the G. W.- Rice game will be shown. On Thanksglving day the pig at- DISTRIBUTOR WANTED For a Famous BEER ond ALE Exclusive Territory Write for Details Address Box 39-T, Star Office traction will be a foot ball game be- | of the Federal Bureau of Investiga- tween George Washington and the| University of West Virginia. _rh”uon heads the committee making are day will end with a ball at the Wash- | FAngements for entertaining as many ington Hotel. of the university’s 16,000 alumni as Hugh H. Clegg, assistant director | accept home-coming invitations. 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Modern enter- tainment calls for a 1937 Philco Radio Bar. *875 No Money Down Extra Liberal Allowance for Your Radio Relic RECEPTION GUARANTEED 15 TUBES 27 TUNED CIRCUITS 5 TUNING RANGES FOREIGN TUNING SYSTEM NEW COLORED SPREAD BAND DIAL *200 Complete With Aerial The Philco High-Efficiency Aerial insures greater local and 6orengn reception— value $5, and included in the price. At George’s During November— Special Features! Sensational Events! THANKSGIVING'S a harvest of feasting and fun CHALFONTE HADDON HALL Tue bracing joys of the seashore in autumn and the festive hospitality of these beachiront hotels will make it a holiday long to remember. A prime Vermont turkey for your own family table. Good things galore to go with it. Sunny Ocean Decks and seaside lounges. 1000 cheerful rooms. Come and stay long. Low fall rates. Leeds and Lippincott Company ATLANTIC CITY A Store Near Your Home 814-816 F 5t. N.W. 3107-3109 M St. N.W, 2015 14¢h St. N.W. 1111 H Se-N.E 4" Stores Open Till 9 PM. District 1900 Selection Priced from $69.95 to $875. A Store Near Your 814-816 F St. N.W. 3107-3109 M St. N.W., 2015 14th St. N.W. 1111 H St. N.E. Al Stores open £ill 9 p.m. District 1900