Indianapolis Times, Volume 46, Number 199, Indianapolis, Marion County, 29 December 1934 — Page 1

e |“I * ft' Tu|f ■ scrjpps - HmvZrtp]

U. S. GIRL HELD BY NAZIS; SLANDERED HITLER, IS CHARGE Former Employe of John W. Davis Law Firm Jailed by Border Guards Pending Hearing on Wednesday. AMERICAN CONSUL TAKES UP CASE Arrest Follows Remark That Fuehrer Is of Jewish Descent, Is Report; Was on Way to Visit Parents. (Copyright 1934. By United Press* WALDMOHR, Germany, Dec. 29.—Miss Elsa Sittell of New York was in solitary imprisonment at the County Jail today, facing a charge of slandering Adolf Hitler. It seemed improbable she could be released even on parole to await trial before next Wednesday. It was understood G. A. Makinson, American Consul General, was on his way here in an effort to see her. Miss Sittell has received no visitors since her arrest Monday. Requests for her release have been made to the state's attorney but no decision in her case is expected until after the New Year’s Day holiday. Miss Sittell was arrested Monday, the day after she left Paris to seek the parents she had not seen for 10 years. She

has been held at Waldmohr, it was learned, despite a statement by Waldmohr police hat she had been indicted . id imprisoned at another place which they refused to name. The charge against Miss Sittell is "publicly insulting both Hitler and a customs guard who examined her luggage.” Court officials at Franknthal informed the United Press that Miss Sittell said: "Hitler is of Jewish deccent.” and that it is with making this statement that she is charged. Inquiry Is Ordered American Consul Gen. Douglas Jenkins took charge of the case in Miss Sittell's interests today. He instituted an investigation and effected touch with the competnt German officials in Berlin. He also instructed the American Consulate at Frankort to follow the case. Gendarmes at Waldmohr. near the Saar frontier, admitted they had arrested Miss Sittell "because she made insulting remarks about the reichsfeuhrer” <Adolf Hitler'. They refused to specify the charges against her or to reveal what she did or under what circumstances. Steele Case Recalled The circumstances were similar to those in the case of Miss Isobel Lillian Steele of Hollywood. Cal., who has just arrived in the United States after months of imprisonment. In Miss Steele's case it was weeks before American authorities even learned she was held, and months before they obtained her release on charges of "espionage.” never formulated and never explained. News of Miss Sittell's arrest came dramatically in an unsigned telegram yesterday to the American University Women's Club of Paris, where she had been a guest. "Prevent trunks going steamer Miss Sittell arrested frontier,” it said. Embassy Aid Sought Miss Sittell had booked passage on the liner Washington, sailing for New York today. Officials of the club appealed to the American Embassy at Paris, and news of the arrest was sent also to consular authorities at Berlin, who knew nothing of Miss sittell s imprisonment. Miss sittell was employed in New York in the law offices of Davis, polk. Wardwell. Gardiner and Reed, of which John W. Davis, former Democratic candiate for president and former ambassador to Great Britain, is a member. She was engaged in translating documents from the French. She is equally master of English, French and German. Looking Up Parents Several weeks ago Miss Sittell resigned and sailed for France. She said she was going to seek her parents, ■who lived in Lorraine but moved into German territory when Alsace and Lofraine were given back to France after the World War. After a brief visit in Paris. Miss Sittell went to Germany. She told friends she did not know where ner parents were but hoped to find them. Next came the mysterious telegram. Officials of the University Women s Club tried vainly to trace Miss Sittell by telephone to French and German frontier posts. Women Intercede Copyright 1934. By United Press) PARIS, Dec. 29.— American university women today appealed to Miss Sarah Wambaugh, American expert of the Saar Governing Commission, to help aid Miss Elsa Sittell of New York, held in a Nazi prison. In Miss Wambaugh. they sought as a leader a woman internationally admired as an outstanding expert in ethnological problems, who was invited by the League of Nations to aid in its task of arranging for the Saar plebiscite. Os Cambridge, Mass., born in Cincinnati, graduate of Radcliffs, she is 52. Miss Wambaugh was one of three persons selected to draw up the regulations for the Saar vote—one of the mo6t important in post-war history.

The Indianapolis Times Cloudy tonight and tomorrow” probably rain or snow, colder tonight with lowest temperature about 24.

V NRA, WE DO OUQ PAST

VOLUME 46—NUMBER 199

STOCKS RENEW UPWARD TREND Market Adds Fractions to Full Point to Gains of Yesterday. By l nitrd Press NEW YORK. Dec. 29.—Stocks added fractions to a point to their yesterday's gains at an active opening today. American Can made a new high since 1931 on the first sale—6oo shares at 114 3 4 up %. Steel common jumped % to 38% on 5000 shares and other leaders moved forward. ißv Thomson & McKinnon* 10:00 A. M Prev. N. Y. close. C A- O 44% 44' 2 Grt Northern 17*2 17 N Y Cent 21% 20% Pennsylvania 24% 24% Westinghouse Elec 37% 37% Chrysler <2 41% Gen Motors 34% a* * Briggs 28% . 27% Elec Auto Lite 28’* 28% Gen Elec .. 21% 21% Bendix 17% 17% Un Aircraft 15% 15% Anaconda 11% 11% Int Nickel 24% 24 Ker.necott n% 17% Allied Chem 133% 133<i Dupont 96 96 Cons Oil 8% B*2 Phillips 15% 15 S O of Cal 31 % 31 SO of Ind 25% 25 SOof N J 43% 43 Beth Steel 32 31% Rep Steel 14% 14% U S Steel 38% 38% A T Sc T 104 103% Cons Gas 20 19% Western Un 33% 33*, Gen Foods 35 34% Natl Dairy 16% 16% Stand Brands 18*, 18% Com Solvents 22 21 % Natl Dist 28% 28% Celanese 34 33% Am Radiator 15% 15*2 Johns-Mans 54% 54 Mont Ward 29*2 29% Sears Roebuck 39% 39*2 Radio 5*2 5%

Lindbergh and Wife Will Testify at Murder Trial Colonel, State Officials Visit Kidnap Scene; Curtis’ Offer to Testify to Be Refused, Is Belief. By United Press , FLEMINGTON, N. J.. Dec. 29.—Names that held the world's attention in the search for the kidnaped son of Col. Charles A. Lindbergh stood out boldly again today in the maze of preparations for the murder trial of Bruno Hauptmann, opening Wednesday. First was Col. Lindbergh himself; his wife, Anne Morrow Lindbergh, whose first born was murdered; Betty Gow, nursemaid who gave the

alarm on the night of the tragedy; Dr. John F. Condon, Jafsie of the want ads; John Hughes Curtis, hoax perpetrator in negotiating for the baby's return, and others of lesser prominence. All except Curtis will be star witnesses for the state in its attempt to send Hauptmann to the electric chair for the murder of Charles A. Lindbergh Jr. Curtis, the Norfolk (Va.) shipbuilder, made his bid to testify, yesterday, but was received coldly by the prosecution. He was represented as offering to testify that he met Hauptmann and conducted negotiations with him in March. 1932. His confession, made to police before his trial on a charge of obstructing justice, admitted his entire story was pure fabrication. In view of this the prosecution probably would not care to call Curtis. The defense, however, might try to substantiate a theory that Curtis actually was in touch with a gang which might be presumed to be the actual kidnapers. Building up of such a theory might tend to weaken the state’s case against Hauptmann. In addition to Colonel and Mrs. Lindbergh, Miss Gow and Dr. Condon, Atty. Gen. David T. Wilentz was known to have “three surprise witnesses.’ Their connection with the case has not been disclosed. but they were believed to be identification witnesses intended to break down Hauptmann's alibi. The state checked the scene of the kidnaping late yesterday under guidance of Col. Lindbergh, who returned to the house of sorrow in the Sourland Mountains. Mr. Wilentz and his assistant, Robert Peacock,

3 Die in City Auto Accidents County Traffic Fatality Is Boosted to 135 by Deaths. The Marion County traffic fatality toil today mounted to the appalling total of 135, with the death in City Hospital of Edward Mullally. 65, of 407 E. Ohio-st. Mr. Mullally was the third victim of traffic accidents to die in twentyfour hours. He was struck by a cab last night in front of 131 N. Noble-st and received a fatal fractured skull. J. Malcolm Polley. 201 N. New Jerseyst. driver of the cab, said Mr. M.Ulally walked into its path. Mrs. Martha J. Sullivan, 75. of 1634 N. Illinois-st, died at 6:15 last night in City Hospitah to be the 134th victim. She walked into the path of and was struck by the side of an auto at Pennsylvania and Washington-sts after a fellow-pe-destrian tried vainly to stop her from starting to cross the street. Struck by Auto Walter Lauer, 29. of 336 N. Ban-croft-st, driver of the car, was not held. Herbert Parsons, 49, of 1959 Broadway, died at 5:45 yesterday afternoon, to be the 133rd victim. He died in an ambulance taking him to City Hospital from College-av and 20th-st, where he was struck by an auto driven by John George Jr., 22, of 324 E. 36th-st. Witnesses told police that the driver made every effort to avoid the accident. Mrs. Sullivan was born near ■Washington and had lived in Indianapolis for the last 45 years. She was a member of the McGuffey Club and is survived by Mrs. Maude Hardie. Indianapolis, a daughter. Services have not been arranged. Born in Indianapolis Mr. Mullally was born and reared in Indianapolis. He was a foundry superintendent, having been connected with several of the leading foundries of the city. He was until recently a member of St. Patrick's parish, lately having become a member of Holy Cross parish. He is survived by a sister, Miss Margaret Mullally, brothers John Matthew and Harold, all of Indianapolis. and James of Dayton, O. M. J. Scheid, 46. jvas injured yesterday when he was knocked down by an auto at New Jersey-st and Massachusetts-av. He lives at 2830 N. New Jersey-st and was taken to City Hospital. CITY STUDENT GIVEN HARVARD SCHOLARSHIP Sheldon Sommers Zs Awarded High Honor. A John Harvard scholarship, one of the highest undergraduate honors, has been awarded Sheldon Sommers. Indianapolis student. The son of Mr. and Mrs. Charles B. Sommers, Cold Spring Road, young Sommers led his class in scholarship during, his freshman year. He was graduated from Park School in 1933. St. Joseph’s Card Party Set Mrs. Raymond Fleetwood and Mrs. Joseph Clemen will be in charge of a card party at 2:30 Monday in St. Joseph’s Hall. 617 E. North-st. Mothers of the parish will assist in preparations.

went over the house and grounds. It was presumed that Col. Lindbergh re-enacted his movements the night of the kidnaping. Doubt as to whether Mrs. Lindbergh would be called to aid the state was set at rest by an announcement from prosecution headquarters. Her testimony will be offered to establish the time of the kidnaping, about 9:10 p. m„ the night of March 1, 1932. In the midst of feverish preparations and with knowledge of the lengthy ordeal he must face, probably a month or longer. Hauptmann showed no signs of nervousness. The German maintained the stolid air which has characterized his mien since his arrest in New York City. He appeared co’dly contemptuous of the state’s efforts to prove that he murdered the Lindbergh baby. His attorneys seemed confident.

JIMMY PAYS DEBT TO MOTHER—GOES TO JAIL

By United Press HICAGO, Dec. 29.—Mrs. Della Craver cried today with sobs that shook her frail body <or hours and said she was happy because her son is in jail and she put him there. Mrs. Craver is 67 years old. Her hair is gray, her hands are red and calloused. Those hands fed and sheltered her and her son through lean years after her husband died 16 years ago. The boy was 14 then. He’s 30 now,

INDIANAPOLIS, SATURDAY, DECEMBER 29, 1934

WAR DEPARTMENT LOBBYING SCANDAL BARED IN CAPITAL

JAPAN READY TO RENOUNCE NAVAL TREATY Nippon Will Act Formally Today, Ending Two Sea Pacts. By United Press WASHINGTON. Dec. 29.—Japan today acted formally to reduce the Washington and London Naval Treaties to mere scraps of paper. The Japanese ambassador here, Hirosi Saito w T as instructed by the Tokio foreign office to call upon Cordell Hull. Secretary of State, at noon to deliver Japan’s official notice that the Washington Treaty for limitation of naval armaments must end on Dec. 31, 1936. The London Naval Treaty, which was a corollary to the Washington treaty. terminates automatically with the ending of the Washington pact. He carried a note for presentation to Mr. Hull which would start the Washington Treaty down the chute leading to the Wfste basket. This note said that Japan desired the Washington Treaty to be terminated at the expiration of the period of two years’ notice provided in the treaty. By doing so, Japan was deemed to have returned all the political questions and naval rivalry in the Pacific to the status they occupied before the statesmen of five nations labored for three months during the winter of 1921-22 to bring the Washington Treaties into being. Two Other Treaties Involved Two other treaties are bound up in their fate with the Washington Arms Limitation Treaty, in addition to several formal resolutions bearing upon matters concerning the treaties. Officials in Washington. Tokio London have been reluctant to say whether all the treaties signed at Washington will fell by the wayside along with the arms limitation treaty. It was anticipated that a formal statement bearing on this question would be issued by Mr. Hull immediately after receipt of the Japanese note. The Japanese government issuu* a formal statement for publication simultaneously with delivery of the note abrogating the armaments treaty. This was to be given to the public simultaneously in all countries which were party to the Washington Naval Treaty. One of the treaties signed at Washington is considered by many American officials to have been dead, for all practical purposes, for the past three years. This is the nine-power treaty guaranteeing the political and territorial integrity of China. Violated in Manchuria Officials here contend privately that Japan grossly violated that treaty when she sent troops into Manchuria in 1931 and wrested the northern provinces of China from the Nationalist government of Nanking. later setting up a puppet government under the nominal suzerainty of Emperor Henry Pu Yi, but actually under the dominance of Japanese bayonets. This action was considered by most observers to have had a heavy bearing on the failure of the threeparty naval conversations in London to agree on continuance of naval armament limitation by treaty. Japan, acting partially on the premise that her “enlarged responsibilities’’ and partly on the premise that her own national dignity required it, demanded a naval equal in actual strength to the navies of the United States and Great Britain. The Washington treaty fixed the relative naval strengths at 5-5-3 for the United States, Great Britain and Japan, respectively. Britain and the United States both contended the ratio gave Japan "equality of protection.” .

TODAY’S WEATHER

Hourly Temperatures 6 a. m 37 8 a. m 36 7 a. m 37 9 a. m 36 Tomorrow’s sunrise, 7:07 a. m.; sunset, 4:29 p. m. Monday’s sunrise, 7:07 a. m.; sunset, 4:29 p. m. In the Air Weather conditions at 9 a. m.: Northwest wind, six miles an hour; temperature, 36; barometric pressure at sea level, 30.00; overcast, with slight fog; ceiling, 400 feet; visibility, one mile.

The little old lady said today that “Jimmy was the best son possible” until two years ago when he lost a job and could find no other. He tramped streets and hustled for new work at first, but rebuffs sagged his shoulders and he came to spending days idling at home or “down at the corner.” Two weeks ago he brought home a little box, full of bits of jewelry. Mrs. Craver found it. “Aw, a fellow gave it to me,” James explained. * “2k 1

TARGET OF PROBERS

Ik fl

Maj. Gen Foulois . . . “Inefficient”

MISSING PLANE LANDS SAFELY Lost in Mountains Near Albany, Crew Radios for Help. By United Press ALBANY, N. Y., Dec. 29.—The American Air Lines airplane which vanished last night in a heavy- sleet and snow storm radioed today that it had landed safely with its four occupants on a mountain near Albany and was awaiting rescue parties. The men. the radio nmunication said, huddled around a small fire all night. The communication was cut short, officials said, because the marooned men wanted to save radio batteries i0 aid rescuers. The plane, last reported at 11:41 last night after taking off from Syracuse for Albany, sent word to the Albany Airport over its radio that a safe landing was accomplished. ' The brief radio mesage said: "We are down but don’t know where we are. Be believe, however, w'e are somewhere near Albany.” Because of continuing snow, rescue parties immediately set out on foot and by automobile. Airplanes awaited clearing weather. MERCURY FALLING, SNOW IS PREDICTED Temperature May Drop to 24 by Tonight. Gently descending temperatures visited Indianapolis today and may go as low as 24 tonight, with a possibility of a light rain this afternoon changing to snow before morning, the Weather Bureau reported today. Temperatures over the entire state, ranging now from 25 in the northwest section to about 40 along the Ohio River, will drop gently, but there is no indication of a severe or sudden cold wave. The temperatures of the last few days have been decidedly above the average for this area this time of the year. Times Index * Page Bridge 4 Broun ....' 7 Church Services 9 Comics 11 Crossword Puzzle 11 Curious World 11 Editorial 6 Financial 12 Pegler , 7 Radio 2 Sports 8,9 State News 3 Woman’s Pages 4.5 William Kern Opens Law Office William C. Kern, brother of John W. Kern, Mayor-elect, announced yesterday he had opened a law office in 524 Insurance Building. He is secretary of the Indianapolis Bar Assn, and has been named a deputy prosecutor in Juvenile Court.

The mother knew better. A few hours later she walked into a police station, tears dripping off her cheeks on to a ragged coat, and handed the hox to a sergeant. “I think my boy stole this,” she said. “He must pay his penalty.” Jimmy had fled when police learned the jewelry was stolen from a South Side shop and went to the Craver home. He left a note for his mother that she tore to bits, sobbing anew. “He’ll be back, though,” she as-

Entered ag Second-Class Matter st Postoffice, Indianapolis. Ind.

SOCIAL LAWS PLACED FIRST BY ROOSEVELT Message to Stress Plight of Forgotten Man, Is Indication. (Copyright 1934, By United Press) WASHINGTON, Dec. 29.—President Roosevelt is drafting a legislative program to dedicate this session of Congress to the “forgotten man.” One week from today he will present his program in general terms. As the legislative schedule is revealed in detail it will propose a definite program of social security for the individual. Mr. Roosevelt defines his security objective as embracing: 1. Proper housing. 2. Productive employment for all able to work. 3. Protection against misfortune through social insurance. June Speech Recalled It is a long-time program. Unemployment and old-age pensions probably will be the first realization of it. A readjustment of the population by abandonment of millions of agricultural acres and the migration of hundreds of thousands of families to new rural homes would be necessary to achieve the new living standards sought by the New Deal. The program was outlined by Mr. Roosevelt in a message to Congress on June 8 of this year suggesting what he would ask of the new Congress convening next week. “Among our objectives I place the security of the men. women and children of the nation first,” Mr. Roosevelt wrote. “This security for the individual and for the family concerns itself primarily with three factors. Decent Homes Necessary “People want decent homes to live in; they want to**locate them where they can engage in productive work, and they want some safeguard against misfortune which can not be wholly eliminated in this man-made world. “In pursuing this policy we are working toward the ultimate objective of making it possible for American families to live as Americans should. “We can not fail to act when hundreds of thousands of families live where there is no reasonable prospect of living in the years to come. This is especially a national problem.” Many millions of persons can not be eliminated from relief rolls. Mr. Roosevelt believes, unless there is a national policy for the use ->f land and water resources. In p. the abandonment of “many millions” of acres of uneconomic farm land. Mr. Roosevelt said: “The rate of speed that we can usefully employ in this attack on impossible social and economic conditions must be determined by business-like procedure. When the next Congress convenes I hope to be able to present to it a carefully considered national plan covering the development and the human use of our natural resources of land and water over a long period of years.”

Six Tax Laws Approved by McNutt Study Board Action on Proposals to Slash $16,000,000 From Property Taxes Is Deferred Until Wednesday. After approving a half dozen recommendations for 1935 tax legislation, Gov. Paul V. McNutt’s tax study committee yesterday deferred until Wednesday consideration of a proposal which would slash $16,000,000 from the state property taxes.

Wilfred Jessup, Richmond, former State Representative, urged that the tax limitation law be supplied with additional teeth. Under his proposals the emergency provisions, under which tax adjustment boards may permit levies in excess of $1 in rural sections and $1.50 in cities and towns, would be removed. Only for debt service and poor relief could the limitations be exceeded. Also deferred was consideration of the recommedation of Lewis Taylor, Indiana Farm Bureau president, that the intangibles tax be increased from 25 to 50 cents in every SIOO taxable value. 1. Placing on, tax duplicates in-

sured police. “He comes of honest stock.” The cops scoffed. But last night Mrs. Craver walked into the same station, redeyed but with a calm triumph. With her was James. “I want to pay up to make good with my mother,” the man told the sergeant. Policemen on duty took up a collection to send Mrs. Craver home in a taxicab after she had kissed her boy through the bars of a cell. €

House Probers Report Bristles With Charges; Shocked Officials Order Full Exposure, Stringent Action. TWO HIGH ARMY OFFICERS INVOLVED Committee Refuses to Name Suspects; Grand Jury May Make Study; Maj. Gen. Foulois Is Attacked by Board. # By l imes Special WASHINGTON, Dec. 29.—A War Department scandal affecting the national defense shook official Wasihngton today. George H. Dern, Secretary of War, and a Federal Qrand Jury indicated they would press for full exposure and stringent action. The final report of the House Military Affairs Committee as submitted to Congress after an eight months’ painstaking investigation into department procurement methods, fairly bristled with broad charges against lobbying activities of contract negotiators.

FINISH BATTLE OPENSINCHACO Paraguayan and Bolivian Troops Locked in Decisive Fight. (Copyright 1934, By United Press) BUENOS AIRES. Dec. 29.—Paraguayan and Bolivian armies were locked today in a finish fight on three fronts in the Gran Chaco. Enduring torrid heat by day and freezing cold at night, some of them with little food and almost no water, they fought with every weapon of modern war from bayonets to aerial bombs. The fight had moved in from the jungle regions of months ago where wild animals fled in terror from the firing. The armies, estimated to be 80,000 strong, were fighting now for Villa Montes, he great army base at me edge of the jhaco and key to the inestimably rich oil fields of the Chaco and Bolivia proper. Dispatches from the front to the Bolivian war office indicated the tacit certainty in the minds of the high comand that the big battle of the bitter war was on. Between now and January dhen the League of Nations Advisory Committee meets in another effort to end the war, it seemed tha t the entire issue might be determined—a stalemate caused by a stubborn Bolivian defense, or a victory brought about by a Paraguayan advance to Villa Montes. For weeks the Paraguayans have been thrusting toward Villa Montes while the Bolivians have been engaging in a series of strategic retreats by which they hoped to select their own grounds for a stubborn defense of the area. 2-MONTHS-OLD BABY FOUND DEAD IN BED Infant Fed at 1 a. m.; Coroner Opens Inquiry. Mrs. Lucille Mains awakened at 1 a. m. and fed her two-months-old son Robert. At 7:45 today she awakened to find him dead in his bed. Their home is at 926 Coffeyst. Coroner William Arbuckle took charge of the case.

come-producing property owned by religious, charitable, fraternal and educational organizations. 2. Imposing taxes on Barrett j-w bonds,, now tax-exempt. 3. Extending through 1937 the moratorium on public sales for delinquent taxes. 4. Extending through 1937 last year’s law permitting tax delinquents to pay in 20 installments over a period of 10 years. 5. Placing personal and endowment funds used for charitable, religious or educational purposes, on the tax exepmt list. 6. Approval by the 1935 Assembly of a constitutional amendment giving lawmakers greater power in enactment of tax laws. More than $100,000,000 in realty owned by Indiana charitable educational and religious organisations could be placed on tax duplicates if the recommended legislation is adopted, the committee was told. Greek letter fraternities, now exempt from taxes, would not pay levies for educational purposes but would be taxed for all other purposes. Unless in the non-profit class, cemeteries would be required to pay taxes. Another topic for discussion Wednesday will be substitution of a 3 per cent sales tax for the present gross income tax. w %

Capital EDITION PRICE TWO CENTS Outside Marion County, 3 Cents

It involved two high Army officers (unnamed), and revealed that Maj. Gen. Benjamin D. Foulois, chief of the Army Air Corps faced a ; sweeping investigation by the Army Inspector General into charges of the committee that he had been ! "inefficient” and “testified falsely.” Maj. Gen. Foulois was distinctly not involved in the report with the graft charges. Leslie C. Garnett. Federal District Attorney, said today that “if conditions are as I understand they are. I shall present the committee’s evidence to the Grand Jury.” He referred specifically to committee charges that high ranking officers, other than General Foulois, had accepted loans of money or gifts from lobbyists in return for alleged information regarding Army contracts. General Foulois’ case was separated by the committee from those involving unnamed “high ranking officers." The veteran flier who heads the Air Corps was accused last June by the special investigating subcommittee of “willfully and deliberately violating existing law in the purchasel of airplanes and aircraft material.” His removal was asked on this basis ad others, ini eluding a finding by the comrrftttee, that “he accused superior officers of willfully attempting to dyeceive” the committee. Loans, Gratuities Charged A dramatic although nebulous picture of widespread lobbying activities in connection with Government contracts was presented by the committee in its report. “Loans of money and gratuities of various sorts have been offered officials for advance information,” the report said, adding that the condition existing was “deplorable,” detrimental to national defense efficiency and tended to bring the “complete Government procurement system into disrepute.” One high ranking officer the committee said had burned at his home a secret contract specifications document after showing it to an interested dealer. Another, the report alleged, conferred with a fugitive from justice, knowing an the time the sought-for lobbyist was wanted for questioning by the committee. The report indicated the officer had sought' the conference to silence possible production of evidence showing he had obtained an alleged $2500 loan from the fugitive. Contract Methods Flayed Government business has thus too often been carried “on in hotel rooms, lobbies and private homes of Government officers and lobbyists,” said the report, adding that the contract methods used have had a tendency “to corrupt weak Government officials as well as dealers and contractors.” Legislation and new Army regulations were recommended by the committee to center Army contract responsibility and to make competitive bidding more prevalent, especially so in the case where standardized equipment could be bought. Legislation to extend the statute c# limitations beyond three years in onnection with Government officials involved in suspicious contract deales was urged.

The committee, it was understood, kept the names of officers involyad secret, in order not to hinder th'e War Department inquiry ordered by Mr. Dern on Dec. 13. However, it was understood that the evidence assembled in the secret hearings would be turned over to the District Attorney for possible submission to the January Grand Jury. Foulois Case Separate Gen. Foulois’ case, entirely separate from that involving “graft” charges against high ranking Arm# officers, centered entirely on developments in the inquiry of las# spring. In a preliminary report atig that time the committee demanded!! Gen. Foulois’ removal on foujl counts, mainly involving alleged: discrepancies in his testimony at secret sessions. Secretary Dern had refused to act until after conferring with the committee two weeks ago. The report said that Mr. Dern[ after his appearance Dec. 13 in company with Gen. Douglas MacArthur. Chief of Staff, and Harr*’ Woodring, Assistant Secretary cf | War. had ordered the Inspector General to “initiate promptly a searching and complete investiga- 1 tion into the facts” concerning Gen. Foulois.