Evening Star Newspaper, December 10, 1936, Page 66

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Only 35¢ 0.A.R.P.ASSAILED ON FIVE CHARGES Characters of Leaders Are Impugned in Findings of House Probers. BY JOHN C. HENRY. Impugning the character of leaders of the Townsend old-age pension movement and directing five specific charges of economic unsoundness at the plan, the House committee named to investigate old-age pension plans and organizations today made public its findings. Signed by only five members of the eight-man committee, however, the majority report was attacked in a blistering dissenting opinion by Rep- resentative John Tolan, Democrat, of California and only outright Town- sendite on the probing committee. Held in check during the many weeks of committee hearings, Tolan accused the committee majority of hand-pick- ing the evidence, of wasting public funds and of wanting “to parade” before “the American public.” The Californian did take occasion, | however, to answer charges that the | administration was backing the in- vestigation for political reasons, but assailed the committee for its failure to make “the slightest hint or recom- mendation for remedial legislation.” Congressmen Blamed. “This particular investigating com- mittee,” he charged, “was conceived and born, not with the present admin- istration, but in the minds of certain Congressmen who were fearful of the growing strength of the Townsend people in their own particular dis- tricts, and in accordance with the trend of the times thought it best to remove this danger by attacking and destroying.” Meanwhile Assistant U. S. Attorney Harry L. Underwood announced that counsel for Dr. Francis E. Townsend, under indictment for contempt of the House because of refusal to continue testimony before the committee, had | informed him that the doctor would | | appear voluntarily before a United States commissioner in Chicago and | post bond for trial appearance here whenever wanted. Two others under indictment, Rev. Clinton L. Wunder of New York and John B. Kiefer of Chi- & | cago, both formerly associated with | Townsend, also have agreed to appear | upon request. | | After a 71-page recital of deve!or»‘ ments in the committee hearings, the | majority report concluded with a 12- point summary. It follows: (1) Old-Age Revolving Pensions, | | Ltd., was organized by Dr. Townsend | and Mr. Clements in the early part| | of 1934. It was completely controlled | by them from the beginning, and now that Mr. Clements has withdrawn, it is entirely controlled by Dr. Townsend. 1t is a so-called non-profit corporation, | but under California law may at any‘ time be dissolved and its assets dis- | tributed to its incorporators. | | (2) The Prosperity Publishing C | which publishes the Townsend Weekly, was organized by Dr. Townsend and | | Mr. Clements in the early pert of | 1935. It was completely controlled | | by them from the beginning, amd | | now that Mr. Clements has sold out | his interest, 55 per cent of the stock is owned by Dr. Townsend and 45 per cent by the Old-Age Revolving Pensions, Ltd., which Dr. Townsend | in tum controls. The Prosperity | Publishing Co. is a corporation for | | profit and may be dissolved at anyI | time, in which event its assets would | be distributed to its stockholders. Its| | assets are several hundred thousand | | dollars at the least. | | $79,000 For Clements. | | (3) Mr. Clements made about $79,~ | 000 in salaries, dividends and profits in a little over one year from his connection with the movement, and all | his living expenses were paid in addi- tion. (4) Dr. Townsend received a total | of between $52,000 and $53,000 in | salaries, dividends and profits from his connection with the movement up THE EVENING STAR, to April 1, 1936, and all his.living expenses were paid in addition. (5) In addition to his earnings and profits from the Old-Age Revolving Pensions, Ltd, and the Prosperity Publishing Co., as set forth above, Dr. Townsend acquired by his activi- ties in the movement the controlling ownership of the Prosperity Publishing Co. He now owns outright eleven- twentieths of the capital stock of the latter company, which he testified was worth ‘well over a million doliars. The Old-Age Revolving Pensions, Ltd., a corporation, owns the balance of the stock in the Prosperity Publishing Co., to wit, nine-twentieths. It is worthy of note at this time that the Old- Age Revolving Pensions, Ltd., in turn is owned by Dr. Townsend, his brother, Walter Townsend, and Gilmore Young. (6) Old-Age Revolving Pensions, Ltd.'s sole purpose was to secure the adoption of legislation putting into effect the Townsend plan, which would give $200 per month to all those over 60 years of age if they agreed to spend it at once. It urged the enactment by Congress of H. R. 7154, the McGroarty bill, for the'pur- pose of bringing this about. (7) The provisions of the Mec- Groarty bill would not result in the raising of sufficient revenue to pay more than a small part of the $200 a month which the Townsend plan promised its followers. (8) At least a million dollars has | been collected in two years by Old- | Age Revolving Pensions, Ltd., to fur- ther the adoption by Congress of legis- lation putting the Townsend plan into | effect. (9) Notwithstanding this, no other | legislation, except the McGroarty bill, | has been introduced by the proponents of the Townsend plan, nor as far as can be ascertained has any such legis- lation been prepared or studied. Men of Bad Records. (10) Some of the leaders of the Townsend movement, aside from Dr., Townsend and Mr. Clements, were men of notoriously bad character and records, and most of the key men in the movement were making large profits out of it, together with re- ceiving their living expenses on a | lavish scale. (11) The refusal of Dr. Townsend F riday’s Special SEA FOOD PLATTER 1 A M. Dellcwus Mndmle Semce Choice of Shrimp Cocktail CI Chowder. Fried Oysters. Sh‘nmnnr BL:E lops. Crab Cake. Fillet of Haddock, Tartar Sauce. French Fried Potatoes. 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For Information or Reservations Telephone District 3300 or National 7370 BALTIM FRIEND LY to proceed with his testimony and his instructions to the leaders of the movement~to refuse their testimony, followed by such refusal in several cases, indicate the unwillingness of this group to make a full disclosure of their activities and their desire to conceal the unsavory records of many of them. (12) The Townsend plan is, itself, economically unsound, because— (A) Ten per cent of the people would receive half the national in- come from the labor of the other 90 per cent; WASHINGTON, D. C, (B) The cost of living would rise immediately, and this rise would con- tinue with increased rapidity; (C) The administration of the tax ‘would be enormously expensive and its enforcement almost impossible; (D) Unemployment would be enor- mously increased; (E) Its operation would wreck the economic and financial structure of the country and bring chaos and ruin. The majority report is signed by Representatives Bell of Missouri, Lu- cas of Illinois and Gavagan of New York, Democrats, and Hoilister of Ohio and Ditter of Pennsylvenia, Re- THURSDAY, DECEMBER 10, 1936. publican, of California filed & one- sentence report in dissent, and Rep- resentative Hoffman, Republican, of Michigan, who frequently criticized conduct of the investigation but was opposed to the Townsend plan and its organization, noted that he would stand on his opposition as expressed on the floor of the House. TOWNSEND NOT COMING HERE. $1,000 Bond in Los Angeles or Chicago Is Arranged. Dr. Prancis E. Townsend, under in- refusing to testify at the old-age pen- slon inquiry, will not be required to answer the indictment here, but will make the $1,000 bond required either in Los Angeles or Chicago, and then appear in United States District Court here whenever wanted. This arrangement, made by counsel for Dr. Townsend, was announced yes- terday afternoon at the office of United States District~ Attorney Leslie C. Garnett. Townsend was represented here by Attorneys G. R. Christianson of | Chicago and Joseph J. Cotter of publicans. Representative Collins, Re- | dictment for contempt of the House in | Washington. 3 Pieces in Solid Maple 1 " This stunning creation for the bedroom will ine stantly appeal to you! Solidly made, cleverly designed pieces in rich honey color maple will add new life and color to the boudoir. Includes large chest, bed and vanity with attached hanging mirror. No Money Down! C swell chair n‘ B Authentic Duncan table | any Phyfe ring construc- The Hub! coffes Lane cedar Chest with red cedar interior. Finished walnut neers. lift lid in Modern hardwoods and finished nut. Seven drawer knee-hole desk built cof in wal- - $]4.95 ve- Automatic 316.95 2-Pe¢. 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