Evening Star Newspaper, May 10, 1937, Page 4

o "A—4 wxw DU PONT A “BEAR” BEFORE 192 CRASH Létter Directing Stock Sales 3 Read at Income Tax Hearing. John J. Raskob, former chairman of the Democratic National Com- mittee, and Pierre S. du Pont, mem- ber of the munitions family, are ac- cused by the Government of having engaged in fictitious stock sales to establish losses in order to reduce amount of their income tar pay- ments. By the Associated Press. NEW YORK, May 10.—In the Sum- mer months before the 1929 Wall Street panic, when the “bulls” were in“control of the stock market, Pierre 5. du Pont was a “bear” and was a heavy seller of securities. This was brought out today in the hearing of the income tax case against Du Pont and his close business as- soeiate, John J. Raskob, from whom the Government seeks to collect a total of approximately $1,800,000 in alleged deficiency taxes for 1929. Mason B. Leming, special attorney for the Bureau of Internal Revenue and chief of Government counsel in the tax case, introduced into evi- dence a memorandum from the elder- ly Du Pont to his secretary, Frank McHugh, dated June 25, 1929. It read: “Dear Frank: “I have been thinking of selling more General Motors common, but had not made up my mind to do so until I talked with J. J. R. this after- noon. “If the stock goes to 76, let out 200,000 shares, which will leave about 100,000. Place money on call. prefer- ably with Morgan & Co. or other banks than the Bankers' Trust Co., so as-to divide total.” The initials in the letter referred to Raskob, and Leming, when asked by Richard L. Disney of the United States Board of Tax Appeals, who is hearing the case, for what purpose the letter was introduced, the Govern- ment attorney said “This is just another item showing the close relationship between du Pont and Raskob.” Offers to" Save Time. As on numerous other occasions, ‘when Leming has introduced such evi- dence, James S. Y. Ivins, chief counsel for du Pont, remarked: “We'll save you plenty of time Ly stipulating the closeness of their rela- tionship.” During the Summer months before the crash, when call loans averaged around 20 per cent, du Pont had mil- lions of dollars on call. The exact amount of his call loan account with the Bankers' Trust Co., where he kept his principal account, has not been brought out. His memorandum to McHugh to sell when General Motors common reached 76 came after a stock split-up. Not long before this General Motors— in_ which Du Pont and Raskob had been heavily interested—reached 2143, before the split-up. Du Pont was asked when the noon adjournment was taken if the sale was made at 76. “Td have to look it up,” he replied. *“I don't recall whether this particular transaction was made.” If it wvas, it would have meant around 15,000,000 added to the money Du Pont had out in call loans in the “bull market” days. Leming has introduced much evi- dence to show the close association be- tween Raskob and Du Pont. He charges that they acted with “mutual intent” in a series of cross-sales of stock after the crash. As a result of these sales, Du Pont and Raskob de- ducted losses totaling more than $7,000,000 on their 1929 returns. The Government, charging the sales were fictitious and were accompanied by a repurchasing understanding, seeks to collect $1,026,340 deficiency tax from Raskob and $617,316 from Du Pont. The “balancing off” transaction came late in January, 1930. It has received little attention in the case 80 far. Hindenburg (Continued From First Page.) for four minutes after the ropes were dropped to the ground. Rosendahl was asked after the morning session ad- journed whether his testimony ruled out & spark of static electricity as the disaster cause. “I'm saying nothing about that,” he replied. “All I can say now is that, normelly, static electricity is dis- charged through the trailer ropes to the ground.” Rosendahl also was asked informally ‘whether the fact that the trailer ropes to the ground came from the nose of the ship, and the fire occurred at the stern would rule out the possibility of & static spark causing the fire. He again declined to express an opinion. i Opinion on Lightning. His opinion on lightning as the de- structive agent also was sought'and ha answered: “Lightning, while not a comfortable thing, is not feared.” As !o,r sparks from electrical machinery on board the airship, he said all of it ‘w¢s insulated and protected, “meticu- lously s0.” Lieut. Raymond F. Tyler, the land- officer at the airfleld, was desig- nated the probable first witness of the atpernoon session and South Trimble, Jry Commerce Department solicitor and chairman of the board, announced ng hearings will be held tomorrow. This was to permit crew survivors and naval officers to attend funeral services in} New York for those of the crew who perished. Hearings will resume Wednesday, Trimble said. At the inquiry Rosendahl testified that “Because the ship was late, Capt. Mbx Pruss wished to accomplish the lapding at the earliest possible mo- ment.” He said he sent a message to the Hindenburg at 5:43 and suggested landing be delayed. At 5:53 Pruss replied that the ship weéuld wait until the “landing condi- tions were better.” JObviously,” Rosendahl said, “I cannot give a complete description of, the various incidenis and their charonological sequence—only as they came to me. My description is not a lete one. "I saw practically the whole stern oft the ship take fire first, after the initial burst on the top. “Then the fire spread progressively forward.” Lengthy hose had to be laid to get to the fire, he said. He did not summoned the fire appa- quickly arrived from both on the station. The fire burned “for three or more hours.” Rosendahl was relating his story THE EVENI D. C. Girls in Follies Cherry Preisser (left) and her sister June, shown as they will appear tonight in the Washington opening of “The Ziegfeld Follies” at the National Theater. June is 17 and her sister 19. Both were born in New Orleans, but have spent much of the last nine years here with their uncle, Warren Preisser, 1809 Monroe street northeast, with whom they are staying this week. The girls, who have been with “The Follies” for four years, travel with their mother and a tutor. Each says her greatest “kick” would be dancing before President Roosevelt. without interruption from the board. He told of establishing a military, armed guard around the wreckage to keep it intact and said that he had placed it in the custody of the Commerce Department the day after the crash. He mentioned the one fatality among the ground crew, Allen Haga- man, Lakehurst civilian, and said one Navy officer suffered minor injuries. Rosendahl related his story for an hour and 20 minutes before the in- vestigators interrupted him with ques- tions. Mulligan asked Rosendahl for the “helium situation.” Rosendahl explained that the helium act of 1925, as amended in 1927, regulated the use of helium, produced by the Bureau of Mines in Texas. The United States has vir- tually a world monopoly on the non- inflammable helium. Mulligan asked for a place to project pictures. “There has been a remarkabie set of pictures taken by both private or- ganizations and naval photographers,” he said. “They will be of great assist- ance to the technical men who are assisting in the investgiation.” Rosendahl said the station would co- operate fully and he would return to the stand any time. Mulligan sought to learn from Rosendahl whether static might have caused the fire. Q. Would the first manila rope ground the static? A. My opinion was it definitely would. An airship hull accumulates a charge of static electricity and the first contact discharges that or equal- izes the potential with that of the ground. Men on the ground crew sometimes have been severely shocked by the discharge. On this occasion it was humid and, without doubt, contact of trail ropes would discharge any static on the ship. Q. Was the material used in the gas cells the same as last year? A. It seems impossible that the gas cells would have to be replace in one year. It is improbable they were worn out. As the investigation opened the per- Sistent reports that sabotage sent her to her doom found unexpected support in the internationally known lighter- than-air expert, Capt. Anton Heinen. Discounting the numerous other theories advanced as to the cause of the disaster. Heinen said he leaned to the “conviction” of sabotage. He said he expected to testify at the inquiry. Funreal at Pier Tomorrow. Announcement was made as the afternoon session began that the funeral for crew members would be held at Pier 8, New York, at 5 o'clock (Eastern standard time), to- morrow afternoon. Army as well as Navy will be represented. Instead of calling Lieut. Raymond P. Tyler, landing officer, as had been planned, the board swore in William F. von Meister, executive vice presi- dent of the American Zeppelin Trans- port Co., American agent for the Ger- man operating firm. Von Meister soon after the disaster advanced two theories as to the pos- sible cause: First—that rainy conditions at the air station made for the creation of a static electricity spark when the landing ropes dropped, and such a spark ignited the hydrogen. Second—That a spark from one of the engines set fire to the gas as it was being valved off for the landing. Von Meister described handling ar- rangements and was asked to submit time tables, crew roster, passenger list and other data later. He said he also would file messages sent from the Hindenburg. He had made three North Atlantic flights by dirigible, Von Meister said. Storms Delayed Landing. “The airship was due to land at 6 am. (daylight time).” Von Meister said. “On Wednesday afternoon we received a dispatch from Capt. Pruss to arrange for a ground crew for 6 p.m. Thursday.” He said the ship arrived in mid- afternoon Thursday, but had to delay « « « Don't put off having your eyes ex- amined because you do not have the cash. Kay's Registered Op- tometrist, Dr. Birkett, will give you a thor- ough scientific exami- nation aond arrange easy payments as low ... YOUR CHILDREN'S EYES SHOULD BE EXAMINED FROM TIME TO TIME ® STYLE-VISION: ® visien glas ur face as Tone, sirte well on you .. Kay style dedigned to fit correct your vi face is short er frames will look | P Sy JEWELRY (OmMPANY NG__STAR, landing because of thunderstorms. Von Meister, dark circles under his eyes, clasped and unclasped his hands as he spoke. His voice was steady and he showed no sign of discom- posure. “The ship made a complete circle and came in for her landing at ap- proximately 150 feet,” he said. The wind had died down to 2 knots. “She had enough speed to land and was practically at a standstill when she dropped her tail ropes. It was about 7:20 (Eastern daylighte. saving time). I was standing lat- erally to the ship. There was trouble at the bow line. I had noticed that during the approach the ship valved water bal- last from the stern three times. That indicated she was heavy in the stern and I was interested in seeing if she would have to valve more. Saw Light in Upper Fin. “The ship was slowly settling for 2 landing. I observed a very strong iight in the upper fin. Then there was & burst of flame at the port side of the ship. “The whole stern was then ablaze and the ship started to sink. The ship then sank to the ground after hav- ing broken at the middle. “It settled on the ground and the whole structure collapsed.” “I ran toward the ship to lend whatever assistance was possible.” Abattoir (Continued From First Page.) said, by experience in similar situa- tions in Mississippi. Representative Shafer, Republican of Michigan, another member of the House District Committee, pledged his support to the bill. “Of all citles in the country the Na- tion’s Capital should be kept free of any industry that creates a nuisance,” he declared, “and of all industries, I think the meat-packing business is among the worst from that standpoint, I cannot believe an abattoir with a rendering plant, such as that proposed to be erected in the Benning section, can be made inoffensive not only to the sense of smell of people who live in the neighborhood, but to the pro- posed esthetic development in that area.” Short Joins In. Representative Short, Republican, of Missouri, another member of the House District Committee, likewise voiced objection to so-called nuisance industries here. “I'm not opposed to slaughter houses,” he declared. “But I am op- posed to slaughter houses in Wash- ington. “This is the Capital City of the Nation. It is unique and different and Congress, in setting aside the Fed- | eral City, intended it to be s0. It should | be the goal of every American to make it the most beautiful city in | the world—a goal which it is rap- idly approaching. In fact, I expect it soon to surpass in beauty the most beautiful cities in the Old World. And I for one do not wish to see ‘Washington cluttered up with slaugh- | ter houses or any other nuisance in- dustry. There is plenty of room in the country for those industries. “Washington is not a manufactur- ing or commercial center—it is a gov- ernmental and residential city.” | Representative Bates, Republican, of Massachusetts, who also is a mem- | ber of the House District Committee, | said he vigorously opposed any type | of nuisance industry. | Bates has been Mayor of Salem, Mass, for 13 years and still holds that position while serving in Con- gress. He pointed out there is| “plenty” of available land outside the | District for slaughter houses and other so-called “nuisance industries.” “A slaughter house is that kind of an industry that belongs in an in- | dustrial section,” he declared. “‘The whole character of the industry—the | bringing in and slaughtering of cat- tle and the rendering of hides—cre- ates an unhealthy atmosphere in any | other section.” ! Directed to all members of the as- | sociation, the letter of the American Planning and Clvic Association is a | comprehensive plea in behalf of pro- | tecting the Nation’s Capital from the | less desirable features of industrial activity, Text of Letter. Signed by Miss Harlean James, ex- ecutive secretary, the letter follows: “There has been introduced into WASHINGTON! D. C, MONDAY, MAY 10, 1937. Home Offered Society of Cincinnati The palatial home of Mrs. Isabel Anderson, widow of Larz Anderson, has been offered to the Society of the Cincin zation here. noted diplomat, which nati for use as national headquarters of the organi- The mansion, scene of many brilliant gatherings, is located at 2118 Massachusetts avenue. An Associated Press dispatch from Richmond quoted officers of the society, of which Mr. Anderson was a member, as saying Mrs. Anderson, in offering the property, had requested that provision be made for exempting the transfer fro for the purpose cited. m the gift tax for maintaining the home —Underwood Photo. Fight Abattoir REPRESENTATIVE McGEHEE. REPRESENTATIVE SHAFER. Congress the King-Norton bill (S 2286-H. R. 6834) to prohibit nuisance industries in the District of Colum- bia. This bill is in line with a recom- mendation of the committee of 100 on the Federal City, in its report is- | sued in January of 1924, which reads: “Washington can never expect to develop industrial enterprises such as exist in the prominent manufacturing and commercial localities of the coun- try; consequently will not be an in- dustrial competitor of another city B BOLGIANO'S Now is the time to fill your win- and porch boxes and set out your bedding plants for best results. EXTRA SPECIAL Small Annual Plants for Transplanting 40c Dozen Asters, Scarlet Sage, Dwarf French Marigolds. Verbenas, Snapdragons, Petunias, Zinnias. HARDY PERENNIAL PLANTS Large Assortment Locally Grown, Wrapped With Original Soil 15c ea.; 3 for 40e PANSY PLANTS Field-grown, mixed 2 o basket 59¢ Sturdy, cole: LAWN GRASS SEED Capitel Park, Ib. 35c; 3 lIbs. for $1.00; . i 5 Ibs. $1.30. ‘White House Shady N 5 Ibs. for $1.7 Small bale, 89c; large bale, $2.75. Hyper Humus, 100 lbs., $1.75 Rich Topsoil, well rotted cow manure. Cooper Power Lawn Mowers, $82.50 up Hand and Horse Drawn Mowers All Makes of Mowers Sharpened and Repaired (The Factory Way, At Reasonable Prices.) F.W.Bolgiano & Co. Sale at Both Stores 411 New Yolrk ‘Ave. N.E. on ATlantle 5411 PETUNIA PLANTS Special —Gladiolus Bulbs Genuine Imported Peat Moss |5 ™ 1) Either Store for Free Delivery Tuesday and Wednesday 1 Oc Each All in bloom. Three varieties. Grown in 3-inch pots. FRINGED PETUNIAS—Mag- nificent, crinkled flowers, em- bracing every conceivable rare and delicate shade. ROSY MORN—Dwarf bushy plants, bearing in great profu- sion brilliant, rose-colored flow- ers until killed by frost. PURPLE PRINCE—A rich, vel- vety purple. Other Varieties of Annual Bedding Plants Mostly All in Full Bloom Grown in 3-inch Pots onias, King Humbert onis_dremans 10c orange bloom: President Each Canna, green leaf, red bloom: Peri- winkle, Summer Poinsettia, Iceplant; Coleus, Marigolds, Scarlet Sage, Snap- dragons, Verbenas, Vin Vines, Wandering Jew, Hardy Ivy. ROSEBUSHES, 35¢ Field grown, 2-vear-old. blooming of exceptional quality. best varieties, Blue Ageratum, Be- Ki Thres for 98¢ monthly Al 10c doze: 79¢_per 100 FERTILIZERS Loma 5 Ibs. 43¢; 10 Ibs. 85¢; 25 Ibs. $1.50; 50 I1bs. $2.50: 100 I 81 d Sheep Manure 40c; 25 Ibs. 80¢; 00 1bs, 5 bs. 23¢; 10 Ibs. 40¢; 25 Ibs. H0cs 50 ibs. $1.50: 100 Ibs. $2.50. Vigoro, Cotton Seed Meal, Sul- phate of Ammonia, Blood Meal 607 E St. N.W. (Downgown, Store) Service Atiensl 0091 ¢ * ¢ It is evident that heavy manu- facturing and industrial activities on 8 large scale are neither desirable nor economically feasible in Wash- ington. “For more than a decade, there- fore, the former American Civic As- sociation and its successor, the Amer= ican Planning and Civie Association, have been committed to the policy of protecting the Nation's Capital from heavy nuisance industries. Under the zoning law, industrial areas in Wash- ington are not extensive and Wash- ington as a city has not invited heavy industries to locate here. Now that the century-old practice which has excluded undesirable heavy industries from the District of Columbia is threatened by the proposal of a pack- ing house company to locate a re- glonal abattoir and rendering plant in Washington, with the full knowl- edge that it is unwelcome, it seems highly desirable that Congress pass a law which will permanently bar from the city recognized nuisance indus- tries. The industries to be excluded under the King-Norton bill include manufacture of objectionable chem- icals, explosives, fertilizers and glue, distillation of bones or wood, refining of gasoline and simitar products, smelting of ores, stockyards, slaughter houses, incineration of dead animals and tanneries—all obnoxious to those who must live near them and all tend- ing to exercise a depreciating influence on the value of nearby residence prop- erty. The bill would pr MAKES HUBBY HAPPY Free Cook Book ef Prize Recipes Exclusively on the ent _existing nuisance industries from increasing capacity more than 25 per cent over the average operation of recent years. This would prevent the operation of the proposed enlarged abattoir and attendant stockyards on the Anacostia and would direct the Zoning Commis- | sion and health officer of the District to make sure that existing nuisance | industries shall not be unduly in- Jjurious, obnoxious, or offensive by | reason of noise, smoke, odor, gas, dust, or other objectionable feature, and | that the plant shall be used solely for | the purpose of supplying the needs | of the inhabitants of the District and adjacent territory. “Every citizen in the United States has a stake in the Federal City, for there has been a tremendous invest- ment of Federal funds to make Wash- | ington an outstanding world capital. | Congress is morally bound to protect its investment from depreciating in- | fluences. Nuisance industries should | be barred from the less than 70 square miles which now constitute the Federal City.” That there will be an imposing array of witnesses appearing tomore row in favor of the legislation is cere tain. The Senate committee has let it be known, however, that it is especially anxious to hear from all District resie dents or representatives of civic bodies, thus urging attendance by all who are interested in the proposal. Ickes {0 Send Statement. Secretary of Interior Ickes, who has actively opposed plans to locate an abattoir in the location involved, will submit a written statement in sup- port of the legislation, it was an- nounced today. The District Commissioners, also in favor of the measure, will appear in company with Corporation Counsel Elwood Seal, who is prepared to tes- tify that the King bill as drawn is & valid and desirable statute for devel opment of the Nation's Capital. C. Marshall Finnan, superintendent of the National Capital Parks, plan- ning to appear in person tomorrow, repeated his support of the bill today. “Naturally, from the standpoint of the parks, we favor passage of the King bill,” Mr. Finnan said. “Our investment in the vicinity of the pro- posed abattoir runs into millions, and Wwe are anxious to protect it.” Pollution to Be Considered. Several dodumentary reports dealing with the pollution dangers involved are to be submitted, this evideace be- ing particularly pertinent in view of recent expenditures by the District to eliminate some of the pollution of the Potomac River which would be af- fected by future establishment of new sources of pollution. 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