Evening Star Newspaper, May 19, 1937, Page 4

A—4 =x DUPONTCALLGASH TOTAL $3 20000 Balance Before ’29 Crash Aired by Financier Just Be- fore Leaving Stand. 83 the Associated Press. NEW YORK, May 19.—A month be- fore the Wall Street panic, Plerre S. du Pont had $33,020,000 cash in the call money market, it was brought out today as the Government ended its ex- amination of the Wilmington indus- trialist in the 1929 income tax case against him and his business associate, John J. Raskob. *In concluding his questioning, Ma- ®on B. Leming, chief of Government oounsel, took up Du Pont's testimony that he bought around $20,000,000 of s€curities after the crash to bolster the market. “Did you consider the stocks you bought at that time good stocks?” Leming asked. I thought they were,” Du Pont re- fi!?d, “that's why I bought them.” Q. It was a sort of a bargain day, Wasn't it, Mr. du Pont? - A. T don't know whether you could €all it that or not. Q. Well, it turned out to be, didn't it? A. You couldn't tell at that time. Nobody knew whether it was or not. . Tllegal Pact Alleged. *The Government, contending & 8€ries of cross-sales between Du Pont and Raskob after the panic was fic- gnous and was accompanied by an egal repurchasing agreement, seeks $617,316 deficiency tax from Du Pont and $1,026.340 from Raskob. The sales were made on November 18 and December 26, 1929, with re- purchases on January 6 and 27 of the following year. With these cross- sales the two established losses of more than $7,000.000, in comparison with | Pre-panic values, which they deducted from their income taxes. * Just before Du Pont was excused a5 a Witness, Leming went into his call loan accounts. He handed Du Pont & batch of ledger and bank accounts and asked him “When did you take your money out of the call loan market?" Du Pont examined his papers and said: “There was a balance of $700,000 8t the end of September, 1930.” Q. Reduced from what? $4,000,000 in March, 1930. A. Well, at the end of March, 1930, & was $4,000.000. Q. What September was that? A. 1930. Q. Oh well, let's go back tember, 1929 A. At the end of September, 1929, tt was $33.020,000. Q Vhat was it a tober, 19292 A. It was $25,800,000. James S. Y. Ivins, chief counsel for | De Pont, objected vigorously to this line of testimony, contending the rec- | ords were already in egidence and that | there was no necessity of having Du Pont figure out the balances with | pad and pencil. “If your honor please,” he said to Richard L. Disney of the United States Board of Tax Appeals, who is hearing the case, “I want to object to this little | act Mr. Leming is putting on here. He's seeking to dramatize, with his pad and pencil stunts, things which have | been in the record all along and which | to Sep- the end of Oc- Wwe have been willing to stipulate from the beginning. A lot of time could be &aved here.” “Your honor, I don't think I should stand silent in the face of Mr. Ivins' | remarks. I think the questions an- | swered by Mr. du Pont with respect to the stocks he purchased and the money he possessed justified my asking them.” Says Queries Justified. | Disney came to the aid of the Gov- ernment counsel and remarked “I think so, too, Mr. Leming. I| think your questions have been justi- fled.” Before Du Pont left the witness | stand—after almost two full days of testimony. in which he defended the legality of his cross-sales with Raskob, | stating he made them to establish de- ductible losses in his tax return—Dis- | ney said: “‘There’s one question I'd like to ask | the witness. “I haven't gathered yet, Mr. du! Pont, as to whether there were any | other transactions—I mean transac- tions of consequence—between you and Mr. Raskob between November 13, the date of the first sale, and the end of January, 1930, when the last repurchase of stocks was made?” “The transactions in the record in this case, Du Pont replied, “are the only ones.” . POLICE CO-OPERATION VITAL, SAYS HOOVER Chief of G-Men Addresses Conven- tion From Office by Tele- phone. By the Assoclated Press. Director J. Edgar Hoover of the Federal Bureau of Investigation said today the time “is rapidly approach- ing” when law enforcement agencies cannot “with immunity” fail to co- Operate. Hoover addressed by telephone from his office here the nineteenth semi- annual convention of the Tennessee and Mississippi Sheriffs and Peace Of- ficers’ Association assembled in Nash- wville. He pictured a force of 4,300,000 per- #ons over the country as a common enemy of society, who last year com- mitted a serfous crime every 24 sec- onds. “Their depredations can and must be minimized,” Hoover said. He pledged his organization would lend every possibie aid “to law enforce- ment officers throughout this and other Stomach Sufferer “Double Checks” Acids and Wins Relief No wonder KALIN Antacid Powder is 50 popular—it works two ways. First. it gives the delicate lining or membrane of the stomach a protective coating— which stops the over-active acids from aggravating the irritated tissues. Then it neutralizes the excess acids and thus alds in restoring normal digestion. If Suspicion That THE EVENING Boy, 3, Killed Sister Removed by Autopsy Three-year-old Noel Galvin dropped a metal toy on his bab; By the Assoclated Press. NEW YORK, May 19.—A medical examiner's autopsy today cleared 3- year-old Noel Galvin of suspicion that | he might have been the cause of the | death of his 3-months-old sister, Doris, when he struck her with a toy air- plane and toy truck while they were playing. telling New York police how he y sister. —Copyright, A. P. Wirephoto. “The child died of a large thymus gland, an ailment often fatal to in- fants,” reported Dr. George W. Ruger, official medical examiner. [ Earlier Assistant District Attorney Anthony di Giovanni had reported | that “the baby was undoubtedly killed | by her brother.” ECONOMY DRIVE MAY GUT DEFICIT Reduction Seen Possible as Agencies Announce Sav- ings Effected. By the Associated Press. A Budget Bureau tally of results of the administration’s year-end econ- omy campaign led some authorities today to forecast a reduction in the estimated $2,557,000,000 Federal defi- cit. Presisdent Roosevelt told his press conference yesterday departments had co-operated in shaving expenditures between May 1 and the end of the fiscal year, July 1. Daniel W. Bell, acting budget di- rector, said the exact savings could not be made public until reports from individual departments have been summarized. The reports were made in re- sponse to a letter from the Presi- dent in April demanding “an im- mediate curtailment of expenditures.” Bell said some departments had not attempted to give estimates of savings in dollars and cents, but merely had advised they were “not spending a single dollar that isn't absolutely necessary.” Fiscal authorities awaited Bell's summary for an indication of how much higher the public debt will go by July 1. It reached a new peak of $35,096,164,000 on May 15. They expressed confidence savings would be effected in an estimated $650,000.000 of expenditures this year | by civil departments and agencies, which they predicted would bear a major portion of aggregate economies. In addition, they cited that bonus bond payments have totaled only $56,- 000,000 thus far this year, against Mr. Roosevelt's latest estimate of $559,- 000,000 for the entire fiscal period. (ot now oY Trans-Luggage and 726 14th St. Authentie val.), Whipcord or Gabardine breeches ($3.95 val), riding shirts, all colors ($1.25 val), Jodhpur outfits included. A . Regular $13.25 Value Thorey SOMETHING abowd Lier: % Sports Shop MKNIGHT GIRL'S CHUM TOTESTIFY Other Members of French Family to Be Called in Slaying Trial. By the Associated Press. JERSEY CITY, N. J, May 19.— Two high school “pals,” who some- times pondered life's problems to- | gether after classes, faced each other | in court today. | One is on trial for her life, accused | of the hatchet slaying of her mother; the other, a prospective State's wit- ness. Pretty, dark-haired Doris French, the “chum” to whose solace blond Gladys MacKnight fled one hot Sum- mer night last July when Mrs. Helen MacKnight was killed in her kitchen, was ready to testify in the trial of her 17-year-old friend and Donald Wightman, 18, known with Gladys as Bayonne High School’s “perfect cou- ple.” In purported “confessions” of the slaying, made to Bayonne police and admitted yesterday as evidence, Gladys 8nd Donald told how they went to Doris’ house after the slaying, before starting the automobile ride that ended with ther arrest in Jersey Ci FOR THOSE Who PREFER QUALIT) = Tp oesn't stick to your lips Prevents loose ends Always firm, never soggy b " TAREYTON CIGARETTES N.W. Trans-Lux Bldg. RIDING HABITS English atyled riding boots ($7.95 THURSDAY ONLY $9.95 | year it is planned to double the capac- STAR, WASHINGTO BOYS'CLUB WORK Declares Group Is Showing Country the_Way to Lessen Crime. The Boys’ Club of the Metropolitan Police Department is showing the country the way to lessen crime in America by turning potential crim- inals into good citizens, Attorney Gen- eral Cummings said today. Perturbed at the wide extent of lawlessnees in the United States, Cummings told his press conference: “We have to have crime prevention. We can’t go on waging a bitter war between the underworld and law en- forcement agencies. “What the Metropolitan Police are doing here for boys is an excellent step toward insuring that crime prevention. It is the first time the so-called hard- boiled police have indicated they un- derstand the facl that crime is rooted in the social environment of the criminals. “I am 100 per cent for what the police are trying to do here. I want to see it done everywhere.” Twenty-five policemen will be designated by Maj. Ernest W. Brown today to solicit employes of the various Government departments for funds in connection with the $75,000 drive of the club. The money will be used to cover 1937 expenditures of the club. Attorney J. Layton Cornwell of the Justice Department is chairman of the police unit Board members and the club’s Ladies’ Auxiliary, led by Mrs. Brown, left this morning for an inspection of Camp Brown at Scotland, Md. Last year the camp cared for 100 boys a week for one month. This ity and keep the camp open from about June 15 to September 15. Watch Stolen at Ball Game. PHILADELPHIA, May 19 (#).—Lou Wilgarde, Mayor's secretary, reported for work today without his gold badge. It was stolen at a base ball | ame. weight. National 9410 A\ < g My Wil AN the other ingredients. Ask your painter . . . or call us. C. I. SMITH “Washington's anly b): which old mattress springs of resiliency that suits your Sterile, clean, comfortable, sleep-invoking. Only $9 and up. D. C, WEDNESDAY, MAY 1 CUMMINGS LAUDS |VIDAL ORGANIZES AIRLINE COMPANY Ex-U. S. Official to Battle for Busy New York-D. C. Transport Trade. A battle for air transport supremacy on the world's busiest air route, Wash- ington to New York, is anticipated between a new air transport company now being organized by Eugene L. Vidal, former director of air com- merce, and Eastern Air Lines, it was learned today as a result of the gath- ering of national aviation leaders at Langley Field, Va., for the annual en- gineering conference of the National Advisory Committee for Aeronautics. Vidal's group is said to be planning hourly service between Washington, New York and Boston. Eastern Alr is one of the Nation's largest air transport systems and is the line which swallowed up the for- mer Ludington Lines, pioneer Wash- ington-New York service which estab- lished the world’s first schedule of flights “every hour on the hour.” When the Ludington system was forced out of aviation six years ago, it was charged that it was forced out as a result of price-cutting competi- tion of Eastern Air, made possible by an airmail subsidy which was denied Ludington, New Schedule. The first gun in the war believed impending between Vidal and Eastern was fired last Saturday when Eastern inaugurated a schedule of 20 round trips daily between Washington and New York, offering service “every hour on the hour.” Such service has not been offered since Ludington was taken over six years ago by Eastern. Interviewed at Langley Field, Vidal, who is a member of the National Ad- visory Committee for Aeronautics, to which he was appointed by President JOE HiGY *INCORPORATED- "OUR PLUMBER/ LET us make your into one with inner- ~ “AMERICA’S FINEST FINISH” WAL ll//////// I N 7Ll Zi NN This new house paint is setting world’s records for beauty upd lpng wear because the oil in it is permanently PRE-SHRUNK before it is mixed with You can save money and trouble with T. T. O. Cost Less Than 3.50 a gallon for a 2-coat Job COMPANY 2422 18th St. NW. Columbia 6088 thermolyzed tung oit paint store” DENTAL CREAM and follow the Squibb Plon MOST TOOTH DECAY CAN BE PREVENTED Roosevelt during his term of office as director of air commerce, confirmed the fact he is planning to return to the fleld of air transportation, in which he became prominent before taking over Federal leadership of civil avia- tion. He expects to assocate with him in his new undertaking Psul Collias and Samuel J. Solomon, president and vice president of Boston & Maine Airways, which is expected to form the nucleus for the new group. Collins and Vidal were fellow vice presidents of the Ludington Lines. Solomon also is general manager of Washington Air- port and was & business associate of Vidal before the latter's appointment to the Commerce Department post. Has New Type Plane. “We have a new type of airplane on order,” Vidal said. “I am not prepared to say much about this ship yet, except that we expect it to be one of the most efficient transport types yet produced. It is possible deliveries may begin by July 1.” ‘The hourly service planned by Vi between Washington, New York and Boston, would connect with the Boston & Maine system. Vidal declined to comment on the possible effect on his plans of Eastern Air Lines’ inaugura- tion of hourly service to New York, said that there will be no delay in plaus for organization of the company. He also declined ‘o discuss the routes over which he expects to operate, but did say that his company expects to seek airmail contracts. Friends of Vidal are outspoken in their bellef that the inauguration of hourly schedules by Eastern Air is a direct blow at Vidal and is intended to forestall his entrance as a competitor for the heavy Washington-New York air traffic. B e B Driving License No Good. RICHMOND, Va. (F).—State offi- cials revoked for a year the driving license of B. O. Arehart because of a drunken driving conviction. When they came to notify Arehart they found him in the State penitentiary for two years, & ACME QuALITY (NEW ERA ) WOMAN HELD SUICIDE Certificate Issued in Death of Miss Katherine O'Donnell. A certificate of suicide was issued today by Coroner A. Magruder Mac- Dcnald in the death of Miss Katherine O'Donnell, 35, of West Hazelton, Pa., who died yesterday in Garfield Hos= pital. 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