Evening Star Newspaper, October 16, 1937, Page 3

~ TAXFRAUD IS LAID T0 YACHT OWNERS| Cadwaladers’ Incorporation of $2,000,000 Vessel Is Assailed by U. S. By the Assoctated Press. The Government made a formal eharge of tax fraud yesterday against & couple recently accused by a Treas- ury official of incorporating their $2,000,000 yacht, the Savarona, in an effort to reduce tax payments. John P. Wenchel, chief counsel of the Internal Revenue Bureau, made the formal charge against Emily R. Cadwalader and her husband, Richard M. Cadwalader, jr., of Fort Wash- ington, Pa. The Cadwaladers had contested be- fore the Board of Tax Appeals a $157.579 deficiency assessment levied by the bureau on their 1932 income. They contended the bureau had given *no reason or grounds” for including & 50 per cent penalty in the assess- ment. Brief Is Submitted. Replying to their request that the board redetermine their tax liability, Wenchel submitted a brief contending the couple filed a “false and fraudu- lent” joint income tax return for 1932 ‘The brief said “part of the deficiency ssserted for said year is attributable to fraud, all with intent to evade tax.” In the recent congressional tax in- wvestigation, Arthur H. Kent, assistant ‘Treasury general counsel, declared the eouple had incorporated their yacht in an effort to reduce tax payments. Kent said the 410-foot vessel, re- putedly the largest private yacht in the world, had been built in Germany in 1931, but never brought into Amer- fcan waters. When American-owned yachts built in foreign countries are brought here, Kent said, a 30 per cent duty must be paid. Stock Basis of Claim. A transaction involving stock of the Savarona Ship Corp., which holds the yacht, was the basis for the Inter- nal Revenue Bureau's deficiency claim against the Cadwaladers. The bureau contended the couple transferred 400 shares of the stock to their attorney, Thomas Campbell, for the purpose of establishing a loss. Wenchel's brief said Mrs. Cadwal- ader “alone, or in connivance” with | her husband or Campbell, “engaged in fraudulent acts and deceptive gestures to clothe the transaction with the ap- | pearance of a bona fide sale, whereas in truth no bona fide sale was con- | summated.” 1t added that the Cadwaladers. both | “with intant to evade tax, fraudulently overstated” the amount of their net| capital losses in 1932, OFFICIAL ACCLAIMS | COMMUNITY CHEST Dr. McClellan Calls It One of | Three Most Important Things ; in Washéngton. ! The Community Chest, the District government and the Federal Govern- ment are the three most important ! things in Washington. Dr. William | McClellan, president of the Potomac | Electric Power Co. and a member of | the Tenth Anniversary Community | Chest Campaign Committee, said last ! night. Dr. McClellan told a meeting of the Executive Council of the Chest, con- | vened to discuss precampaign plans, ! that the needs of the city are grow- ing for such aid as the Chest funds | Pprovide. More money must be brought | in, he said, adding: | “There are thousands of people amply able to give who are not giving. | It all those people would get behind | the Chest, would realize that it is their opportunity to help the less fortunate, would realize that it is sav- ing them from the burdens of 69 cam- paigns, then the Chest would be an overwhelming success. “Prosperity might decrease the re- lief problem, but the probiem of mak- ing better citizens of our under-priv- dleged children, of making the world better is a permanent problem that We must meet.” | e Crime (Association) Pays. PHILADELPHIA, October 16 (#)— The robbers who jimmied open a window of a building and escaped with $300 certainly didn’t believe in signs. The money was to have been used for the salaries of employes of an association that tenanted the building. In large letters the name of the association is painted on the side of the structure—the Crime Prevention Association Building. THE EVENING STAR, WASHINGTON, D. C, SATURDAY, OCTOBER 16, 193 Crowds Visit Art Appreciation Booth Here are a number of Washingtonians who called yesterday at the booth on the first floor of The Star Buildin, project. out the day. JACKSON WILL ACT INU.S. MILK CASE Named to Represent Gov- ernment Against Vermont Firm on Marketing Order. By the Associated Press. BOSTON, October 16.—The Depart- ment of Justice last night announced Robert H. Jackson, assistant United States Attorney General, would present the Government's case against the Corinth Creamery, Inc., on charges the Vermont company failed to com- ply with Federal provisions of a Boston milk marketing order. The complaint, one of 31 brought by Secretary of Agriculture Henry A. Wallace against New England dealers handling milk in the Boston market, is scheduled to come up for hearing October 23 before Judge Harland D. Howe in Federal District Court, Rut- land, Vt. A hearing on complaints filed against the 30 other dealers is sched- uled for October 29 in Federal District Court at Boston. The Government charged the com- panies have “failed and refused’ to comply with a Federal order regulating minimum prices to be paid farmers and establishing a market-wide pool to provide “uniform returns for all pro- ducers in the market.” Federal officials said assignment of Jackson to argue the milk cases in the | lower courts “is significant of the Federal Government’s determination to bring to a close a legal controversy which may be headed for the Supreme Court for a final decision.” Legality of the Federal regulations was questioned by 32 New England milk dealers at recent hearings held in Washington and Boston before De- partment of Agriculture representa- tives. Secretary Wallace had previously asserted a “legal no man’s land” would exist in the milk industry if the Su- preme Court failed to uphold consti- tutionality of Federal milk programs under the agricultural agreement act of 1937. FEW WHEAT EXPORTS TO ORIENT PREDICTED By the Associated Press. Government trade experts predicted today the Orient would import little foreign wheat, includin® grain from the United States, during the 1937-38 season. A survey of supplies in China, Ja- pan and Manchuria indicated three areas were nearly on a self- sufficient basis. § The Shanghai office of the Bureau of Agricultural Economics said hos- tilities made forecasts difficult, but that China apparently would need little foreign wheat. ‘The Chinese government prohibited wheat exports until June, 1938, and is enforcing strict regulation of trad- ing to curb speculation. Japan's wheat crop also should supply domestic needs, the bureau said, with a large carry-over from last year and a large rice crop. Servants Evacuate Mansion In $1,200,000 By the Associated Press. GOSHEN, N. Y, October 16.—Two servants, engaged in litigation for the $1,200,000 estate left by Mrs. Frederick Depeyster Foster, moved out of the palatial Foster home last night. They abandoned, on advice of coun- sel, what had become their fortress during court battles with wealthy Tuxedo Park contestants over the will on which they based their claim to the magnificent fortune® Leaving a court room session in which their counsel charged “great collusion” between witnesses to the contested will and beneficiaries under & prior will, the Foster butler, William lowe, 42, and a former maid, Olivia Olsen, 55, went home and packed their belongings. The servants’ counsel, former Su- preme Court Justice Humphrey J. Lynch, explained: “Now that a tem- porary administrator has been ap- pointed and schedules (of the prop- erty) turned over, the servants prefer to be released from further responsi- bility.” ‘The home the butler and maid left had a substantially stocked cellar, but the pantry was bare. Until now, there had been no funds to keep the place in a state of repair commensurate with the elaborateness of surrounding estates. STRANGER Have received message and am to asstst in_locatin Bobby’s Aunt Beach. Will mee u at station WISV at 3:30 P.M. onday, Oct. 18th, to broadcast detalls.JennyPeabodyof Hilldale. @ Will Litigation ill Litig Earlier they heard Justice Lynch tell Surrogate Charles E. Taylor that John Luft, president of the Tuxedo Park National Bank, and witnesses to the “servants’ windfall” will were involved in collusion. Luft, along with other wealthy and socially prominent resi- dents, had been named in the first Foster will as beneficiary to $20,000. The second document, dated July, 1932, five years before Mrs. Foster died at the age of 92, gives the bulk of the estate to the servants. In present pre- liminary hearings the validity of the second will be being contested. ‘The hearing was adjourned yesterday after examination of only one witness. Alex Lamouree, a Tuxedo Park drug- gist; testified that he signed a paper for Mrs. Foster on September 30, 1932, but he said the document was covered Lndu;m could not'say whether it was a will DO YOU NEED COAL Fuel 0il ‘TELEPHONE 714 13th St. Natl. 3068 {LITERARY DIGEST marketing | g to secure the first set of the famous paintings offered in the art appreciation Raymond C. Reinoehl is behind the counter, busy with sales that ran heavy through- tar Staff Photo Mme. Chiang Sees Spectacular Air Show, With Death Guiding Wife of Head of Chinese Government Gets Hundreds of Letters of Advice From United States. BY MME. CHIANG KAI-SHEK, Wife of the Chinese Generalissimo. NANKING, October 15—What must be an extraordinary phenomenon in aviation occurred in the midst of a serles of dog fights during Wednes- day's Japanese air raids over Nanking. I was watching one fighter when I ob- served a Japanese participant sud- denly break from the engagement and enter into a series of great loops under full power. During that performance & Chinese pilot cruised about watching the performance of his enemy until another Jap pursuit plane plunged | after him. ‘The looping machine continued with | exquisite precision as to the diameter of its circles, but losing altitude with each loop until it disappeared from sight behind the purple mountains. There were some 10 gigantic loops by the Japanese fiyer. The mystery was only explained when the plane was found smashed to pieces on the moun- tainside. Examination of the pilot showed his jacket was punctured with 17 separate bullet holes. He probably was killed -instantly in the air with his hand on the throttle setting the plane for the loops and the plane con- tinued performing with a dead man at its controls until the mountainside intervened. Judging by the slackening of the | Japanese offensive toward China, which has been proceeding for 16 days they've been convinced it is a failure since they have not obtained any of their objectives. (Copyright. 1937.) Gets Much United States Mail. NANKING, October 16 (P).—Mme. Chiang Kai-shek, American-educated | wife of the head of the Chinese gov- ernment, has received hundreds of letters of advice and encouragement from United States groups and indi- | viduals. | Answering the flood of mail makes ! her one of the busiest women in the world, for, in addition, she is the | head of China’s air force and di- rects charities, hospit . and welfare | work. Some of the letters give new formulas on how to win thc war and what to do to the Japanese. Others are from job seekers. Nearly half are sent by individuals and religious groups, many declaring the senders are praying for China and the triumph of her “righteous cause.” A Clinton, Conn., admirer terized Mme. Chiang as " symbol of beautiful, giving goddess far greater than Joan charac- | striking Chinese of Arc.” Women Would Be Flyers. Several American air women have offered their services as army pilots. A Fort Wayne, Ind., resident de- clared that “Christian motives prompt your action; may the Lord give you the strength of your convictions.” A Brooklyn, N. Y., group assured Mme. Chiang of the “prayerful en- couragement of all good citizens,” and a Philadelphia man described the generalissimo as an “honored servant of God.” From a New York organization de- voted to spiritual science came this plea: “Strive to awaken the spiritual senses so we may communicate with heavenly broadcast.” The Greater New York Federation of Churches expressed sympathetic support. TO RESUME TITLE, Sold by Review of Reviews Cor- | poration—Dr. Albert Shaw Retires as Editor. By the Associated Press. NEW YORK, October 16.—The re- tirement of Dr. Albert Shaw as editor of the Digest was announced last night, terminating one of the longest continuous editorships in the history of American magazine publishing. At the same time, the sale of the Digest by the Review of Reviews Corp. and the resumption of its former title, the Literary Digest, were announced through a syndicate headed by George F. Havell, the new owners. Dr. Shaw founded the American Review of Reviews in 1892 and served as its active editor until about three months ago, when he became editor of the Digest, a merger of the Review of Reviews and the Literary Digest. He is 80. Dr, Shaw’s son, Albert Shaw, jr., re- tired also yesterday as .president of the Review of Reviews Corp. The new owners announced that the name, the Literary Digest, wi]l be re- sumed with the issue of November 13 and that publication as a weekly mag- azine devoted to news will be con- tinued. David P. Page, formerly co-man- aging editor of the Digest, will become editor and Havell will become pub- lisher." e Page From 0. Henry. NEW YORK, October 16 (#).—Jus- tice smiled on Frank Powell, modern prototype of O. Henry's “Soapy,” in Brooklyn County Court. Powell forced open a store door on September 15 and then, having taken nothing, requested a policeman to ar- rest him. He said he was jobless, broke and hungry. h.:ud(e‘h:;uyad T;ylor dismissed a charge of attemp! urglary yesterda and gave Powell $5. Y y WHERE TO DINE, The Chevy Chase 5555 Conn. Ave. Cleveland 5764 Home-cooked meals. Ren . Get our supper i TR RESTAURANT 1208 18th St. N.W. The Home of the Italian Dinner O Wine Included Entertainment from 8:00 P.M. till Midnight BLAST INJURES 20 Montreal Building Wrecked by Exploding Gas. MONTREAL, October 16 (Canadian | Press).—Exploding gas wrecked a two- story building in Montreal's northeast section last night, injuring more than 20 persons. The blast, which was reported to have originated in an open illumi- nating gas pipe, demolished a ground- floor restaurant filled with patrons and a dwelling on the second floor. Most occupants of the building fled DEATH QUIZ FACED BY GANG FUGITIVE Partner of Bird Brothers to Be Questioned About Their Whereabouts. By the Associeted Press. PHILADELPHIA, October 16.—The Federal Bureau of Investigation and the State of Ohio today sought from James Widmer, fugitive slayer, the ‘whereabouts of his two desperate com- panions and the story behind the slaying of an Ohio highway patrol- man. The search for Charles and Frank Bird, other members of the Bird Gang, sent detectives and Federal agents curry-combing the city. The trio escaped last month from the Cuyahoga County Jail at Cleve- land, Ohio, after cowing seven deputy sheriffs, stealing a judge’s automobile and killing a woman they ran dowr in their mad flight. Will Be Questioned. Detectives said they expected Col. Lynn Black, Ohio highway patrol su- perintendent, from Cleveland today to question Widmer about the slaying in gangland fashion of Ohio Highway Patrolman George Conn, near Free- port, Ohio, several days after the trio escaped prison. ‘Widmer, captured yesterday with- out any resistance by two motor cycle policemen checking for stolen auto- mobiles, will be arraigned before United States Commissioner William Wecker later today on charges of being a fugitive from justice. His capture was announced by the Cleveland office of the Federal Bu- reau of Investigation. Robert G. Herndon, in charge of the Philadel- phia office, declined comment. Detective Lieut. William Engle of the city police, who questioned Wid- mer, said the prisoner admitted he escaped from Joliet Prison, where he was serving & life term for murder after 12 years. Four or Five Jobs. “I joined the Birds,” Engle quoted him as saying, “helped to pull off four or five bank jobs and escaped after being arrested and imprisoned in Cleveland.” “The last job I did,” Engle reported Widmer as saying, “we got $18,000 from a bank. I kept $10,000 of it and my two partners split the other $8,000.” Widmer and the Birds were await- ing trial for a series of Cleveland bank robberies when they broke out of Jail there. All had escaped previously from the Missouri Prison in separate breaks. Frank Bird, 30, was serving life for murder and his brother Charles was | serving a 10-year term for robbery and auto theft. STUDENT TRAFFIC CLUB FORMED AT MKINLEY William Zeller Named Temporary Chairman—sSeries of Tests Is Given. Half a hundred students at McKin- ley Technical High School, anxious to do their part in combating causes of traffic accidents, gathered yesterday to form another student Trafficlub. After being put through a series of tests given by the American Automo- bile Association to show their reac- tions to traffic dangers, the students selected William Zeller as temporary chairman of the club. Zeller will appoint a committee to study recommendations for *traffic safety in the vicinity of the McKinley School. Carrying on its activities| similar to other clubs throughout the | city, the McKinley unit will hold | regular meetings to discuss traffic| problems. | Sarah Jane Williams, a member of the staff of Tech Life, school publi- cation, was appointed to handle in- formation and publicity for the club. ont the outbreak of a small fire that preceded the explosion. Police and firemen who searched the wreckage said there was no possibility any bodies were buried in it. P handle the best grades of Pennsylvania ANTHRACITE and The Famous BLUE } J. EDW. CHAPMAN Coal Fuel Oil 37 N St. N.W. North 3609 Agent Wayne Oil Burner | 3 ’F LAS VEQAS ALBUQUERQUE LYER CITY CARLSBAD . “You won't need cesh. Poy in No- D.J.KAUFMANx The New Telephone Directory Closes OCTOBER 22 To order a telephone, change of address, or extra listings just call MEttropolitan 9900 The C. & P. Teleohone Co. "Amigo, you'll find @ cordiol welcome herel And the bright, warm colors in our mew Fall out- fits will remind you of edobe homes end tile 100fs in @ New Mezico sunset!” vember, December end Jonuary” Proud Moment for Wilson Forty-Two Natjons Represented at First League Assembly. . Presidents Wilson and Poincare are shown together in Paris just after the World War, when Mr. Wilson, at the Versailles Conference, insisted on inclusio of Nations in the post-war. treaty. % This is the second of a series of three articles tracing the history of America’s peace eflorts. l day in 1920 when he convened the | first ordinary assembly of the League of Nations in Geneva, per- manent home of the world peace or- ganization. Forty-two nations were represented. Before the year was out, six more were to be admitted to membership. Few could foresee then that within another year Wilson's hopes for American adherence to the League he had fathered—the crowning work of his life—would go glimmering in de- feat at the hands of the United States Senate, But despite American aloofness, the work of the League went on. There were many triumphs in store for it, many setbacks. There were some day: when the outlook for its existence seemed hopeless. In the period of 1920-37, the League has functioned with varying success in 42 international crises, ranging in significance from the Aland Islands dispute between Sweden and Finland (which resulted fo a notable gain in League prestige) through German re- armament, two Sino-Japanese con- flicts, the war between Bolivia and Paraguay, the Italo-Ethiopian war and the Spanish crisis. Under the Treaty of Versailles, the Saar Basin, important mining distric BY CHARLES NORMAN, Associated Press Staff Writer. T WAS a proud moment for Presi- dent Wilson on that November was governed by the League for 15| years pending a plebiscite held Janu- ary 13, 1935, which resulted in its adhesion to Germany. An interna- tional police force, composed of con- tingents from the United Kingdom, Italy, the Netherlands and ‘Sweden, maintained order. In the dispute between Poland and Lithuania over Vilna, 1920-22, the League’s offer of a plebiscite under the | Pprotection of an international force Wwas rejected by both governments. In addition, Soviet Russia threatened war JUSTUSE THE PERFECT “CLOTHES LINE"— CLEVELAND 7800 Yw may not know it —but this is a lady doi simple as that—if you satisfaction. Just pick up your phone and ask us to send our driver for your back freshly, cleanly and sweetly laundered—leaving you time for bridge, movies or what not—and money for it, too. Our “THRIFTY” Laundry Service Flot work, handkerchiefs and soft collars nicely ished. Wearing apparel returned damp—starched if desired. Mon. to Wed, 8%c Ib.; Thur. to Sat., 8c Ib. Shirts (plain) are Anished at 10c apiece, starched eol- lars at jc apiece, on request. “FOR HEALTH'S SAKE, MEN'S OUTFITTERS—HEAD TO FOOT DRY CLEANING 5248 Wisconsin Ave. m of the covenant of the League B — if an inter-European force were as- | sembled near its frontier. The Free City of Danzig, important as an outlet to the sea for Polish trade, | 1s under the protection of the League, which guarantees its constitution. » A | high commissioner is appointed by the League Council for three years. The protection of minorities, a sore | point in European negotiations for centuries, remains one of the most im- portant tasks of the League. The League covenant contains also| provisions for the mutual protection of member states. Article 16 declares: “Should any member of the League resort to war * * * it shall * * * be| deemed to have committed an act of | war against all other members * * *| which hereby undertake immediately | to subject it to the severance of all trade or financial relations. * * *" The article further provides: It shall be the duty of the Council Week End APPLE SPECIAL | Quaint Acres Hand picked, carefully graded - GRIMES : GOLDEN | w price. o i turn right ville Pike. at the Bushel Half Bushel from looking at the picture ing her weekly wash. It's as want leisure, economy and week’s washing. It will come in such case to recommend to the several governments concerned whaf effective military, naval or air force the members of the League shall seyerally contribute, * * *” What happened when Italy invaded Ethiopia and this article was invoked? The question of military aid never came up, the members of the League contenting themselves with the ap- plication of economic sanctions against needed raw materials. Oil, however, was not included in the proscribed commodities, and ol many observers have stated, decided the Ethiopian issue in favor of Italy. Had Italy, severely hampered in its operations by the imposition of sanc- tions, bogged down in Ethiopia, the prestige of the League would have been incalculable. As it was, the Italian victory raised the cry that the League was dead. Father Goes to School. IDOHO FALLS, Idaho, October 16 (#).—Although in the Navy he saw 32 countries, Herman Perkins, 32-year-old railroad mechanic, has joined his daughters, aged 5 and 7, in school. Says Perkins, a high school junior: “Travel may broaden you, but it doesn't give you an education.” TREAT YOUR FAMILY TO WAFFLES! BUY FIXT, THE ALL FIXED WAFFLE MIX, TODAY! JUST ADD WATER TO FIXT. .. AND BAKE! The eggs are in. 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