Evening star., 1936-12-10
0.A. R.P.ASSA|LED
ON FIVE CHARGES
Characters of Leaders Are
Impugned in Findings
of House Pr0berS.
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 ito parade"
before 1.-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 recon-
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 develop
ments in the committee hearings, the
majority report concluded with a 12-
point summary. 1t follows:
| Cd Old-Age Revolving Pensions,
Ltd, was organized by DR.. Townsend
and Mr.. Clements in the early part
of 1884. 1t 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 Clements has withdrawn.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.
CD The Prosperity Publishing Co.,
which publishes the Townsend Weekly,
was organized by DR.. Townsend and
Mr. Clements in the early part of
1885. It was completely controlled
by them from the beginning, and
now that Mr.. Clements has sold out
his interest, SIS per cent of the stock
is owned by DR.. Townsend and As
per cent by the Old-Age Revolving
Pensions, Ltd, which DR.. Townsend
in turn controls. The Prosperity
Publishing Co. is a corporation for
profit and may be dissolved at any
time, in which event its assets would
be distributed to its stockholders. Its
assets are several hundred thousand
dollars at the least.
$4,000 For Clements.
90 Mr.. Clements made about s79,-
900 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.
"a DR.. Townsend received a total
of between $4,000 and $4,000 in
salaries, dividends and profits from
his connection with the movement up