davidaulloa/AmericanStories huggingface dataset:
Evening star., 1938-03-28

By the Associated Press.
The Treasury today reduced from
IS to a cents per ounce its price for
foreign produced silver.
The reduction was the first change
in the Treasury's price for foreign
silver in nearly two years, and followed
a break of slightly more than q cent
in the London silver market today
because of fears that the United States
decision to discontinue purchases of
Mexican silver might presage an
abandonment of its stabilizing infiu-
ence on world silver prices.
Heretofore the worlds largest GUS
toner for silver, the United States
Treasury has virtually dictated the
value Of silver for more than two
years.
Onicials did not explain the reduc-
ton.
Oil Conference Held.
Previously, the announcement of
the decision with respect to Mexican
silver had been connected principally
in speculation by observers with that
country's appropriation of American
oil properties.
Executives of four American oil
companies conferred with Secretary OF
State Hull about the Mexican govern
ment's appropriation of properties
valued at more than $400, ,00O, 900.
The oil men asked the official sup
port Of the United States Government
in their effort to have the expropria-
ton modified
Only q few hours earlier, the Treas
ury had announced it would discon-
tinue its purchases of silver produced
in Mexico, leading to speculation that
this Government already was exerting
pressure on the Mexican government
for a reconsideration of its oil decision.
Oil Men Present.
The oil executives were Walter
Teagle, chairman of the board of the
Standard Oil Co. of New Jersey; w. S.
Parish, president; Eugene Holman,
president of the Huasteca Petroleum
Co., a Standard Oil subsidiary; Judge
Frank Feuille, representing the Stand
ard Oil Co. of California; Albert E.
Watts, president Of the Penn-Mex
Fuel Co., and Judges James w. Reid,
representing the Consolidated Oil Co.
and the Mexican Sinclair Petroleum
Corp.
Announcement of the United States
Evening star., 1938-03-28
MAVERICK BEGINS
REVOLT IN HOUSE
ON !. y. A. PROBE
Brands Deposing of Morgan
as Foundation for Purge
Trial.
WINS SUPPORT AGAINST
BARKLEY RESOLUTION
Texan Declares That Integrity of
Democratic Party Is at
Stake in Fight.
RArYcPnTJAD-

BACKGROUND
After failure OF Presidents "tact-
finding" inquiry into T. v. A. dis
sension and removal by executive
order OF Chairman Arthur E. Nor
gan. Senate approved joint con-
oresstonal investigation OF power
project. Dr.. Morgan had refused
to ansDer Presidents questions or
submit facts in support of charges
made BY him against his co-direc-
tors, insisting disscnsion within
T. v. A. should be proved by Con-
oress.
Evening star., 1938-03-28
BY CARTER BROOKE JONES.


The House passed the Senate
approved numbers bill today without
record vote. It goes back to the
Senate for concurrence in amend
ments.
Sharp debate preceded the voice
vote on the measure. but only a scat
tering opposition developed. A thin
chorus Of noes followed overwhelm-
ing expression Of approval
PaImisano Opposes.
Chairman Palmisano of the Dis
trict Committee, opposing the bill,
charged the Police Department and the
prosecuting authorities with desiring
to ignore the fourth amendment to
the Constitution relating to unlawful
search and seizure"
The Maryland Representative said:
There has been considerable pub
licity given to my opposition to Sen
ate bill I'll, which is known as the
bill to outlaw the so-called number
racket gambling. My opposition to
the bill has always been to a provi-
sion in the bill which I consider is
against the fourth amendment"
This provision, Mr.. Palmisano
said, would give the police the right
of search upon complaint under
oath before the Police Court or United
States commissioner setting forth
that the affant believes and has
good cause to believe there was gam
bling going on in particular house,
because the officer himself saw
number of persons whom he thought
were gamblers entering" the premises.
Assails Inspector.
There has never been any objec-
ton IN having law passed to permit
possession of a policy slip to be con-
sidered prima facie evidence that the
holder was playing the numbers game.
but that is not what the authorities
seek under this act
As Illustration of what he meant,
Chairman Palmisano charged Police
Inspector Bernard W. Thompson with
being "a fanatic" on the subject of
prostitution, although "he seems to be
an excellent officer and commands the
respect of everybody"
He quoted newspaper account of
last week, in which 16 women were
reported released when their cases were
nolle pressed for lack of evidence, but
Inspector Thompson was quoted as
instructing members of the newly-
formed pickup squad to put the
women in Jail "as often as we can ar
rest them
The detective chief was reported to
have added: Even if we get no con-
victions, we can force them to paw
out bond money"
The inspector, Mr.. Palmisano said,
expressed hope continual arrests ulti-
mately would drive the women out
of town.
Right Challenged.
Mr.. PalmiSano said the women were
arrested under the Act of 1885 ~for
the suppression of prostitution" max
ing such women vagrant. The Dis
trict Committee chairman said he had
reported this bill to the House and
had it passed, but it was never in
tended to give the police authorities
the right to pick women up off the
streets on suspicion they were solicit
ing, without any legal evidence to
convict. and the inspector in this
case insists that he is continuing to
(see NUMBERS, Page A-4)
Evening star., 1938-03-28
Priest Attacks Rill

DETROIT. Mich. March % (P.-
Father Charles E. Coughhn said in a
radio address today that passage by
the Senate of the Government reor-
ganization bill eventually will mean
reputation of all debts or a revo-
luton"
Evening star., 1938-03-28
NEW DEAL FORCES
PUSH MERGER BILL
TOWARD PASSAGE
Move for RecommittaI of
Measure Is Beaten in
Senate.
DIRECT VOTE ON PLAN
TO BE TAKEN AT ONCE
Tydings Warns Fear Exists in
U. S. on Concentration of
Administrative Power.

BACKGROUND
Plan to reorgani2e administra-
the branch OF government by re-
pising lineup and duties OF Darious
departments is one of Presidents
most desired reforms. Opposition
to idea became intensified last
meek after administration forces
had beaten seueral amendments.
Senate Uill settle issue today.
BULLETIN.
The Senate late today
passed the reorganization
bill.
The vote was 40 to AZ.
Evening star., 1938-03-28

SPORTS.
Mats weakness against major foes
irks Owner Griffith. Page Ale
stengel still jokester; thinks Bees have
have nag chance. Page A-lo
Gold-plated Red Sox doomed to get
nickle-plated results. Page ALL
Powerful Maryland U. nine opens
season today. Page ALL
Second guessing" seen as threat to
Brooklyn Dodgers. Page A-l2
Archibald faces ring test tonight in
Scioeln. Page Ala
FINANCIAL
Bonds mixed (table). Page A-13
Steel orders gain. Page Ais
silver weakens abroad. Page Ais
Stocks edge up (table). Page Ala
Curb Shares uneven (table). Page Ais
General Electric profits soar. Page Ais
MISCELLANY. ~.
City News In Brief. Page B-s
Shipping News. Page BIS
Betsy Caswell. Page Bile
Dorothy Dix. Page Bile
Service Orders. Page Bill
Natures Children. Page B-I1
Bedtime Story. Page B.14
Letter-Out. Page B.1l
Crossword Puzzle Page B-14
Contract Bridge. Page lis
Evening star., 1938-03-28
MEASURE TO CURB
NUMBERS RACKET
WINS IN HOUSE
Overwhelming Expression of
Approval Precedes
Voice Vote.
PALM|SANO ATTACKS
SEARCH PROVISION
Tendency of Police to Ignore
Fourth Amendment Is
Charged in Debate.


House District Committee re-
ported tauorably the Senate-ap-
proDed anti-numbers bill 10 days
ago, despite opposition of Commit
tee Chairman Palmisano. Designed
to strengthen arm of laU enforce
ment officials, House bill would
make possession OF original num-
bers slips prin,a facie eridence OF
operating a lottery, but the Senate
mas yet to approve this prouision.
Evening star., 1938-03-28
Summary of Today's Star

Amusements Bis Radio ---B-1l
Comics - B-14-15 Short Story B-4
Editorials ----A-8 Society ---- B-3
Finance ---- Alb Sports A-10-ll-12
Lost & Found Bill Woman's Pr Bio
Obituary -----A-6
FOREIGN.
Hungary proposes payment of relief
debt to U. S. Page Al
Franco points to major battle with
hope Of winning war. Page Al
NATIONAL.
Reorganization bill faces close Senate
vote today. Page. Al
Treasury cuts price for foreign silver
to A cents. Page Al
House revolt looms against Barkley
probe of r; v. A. Page Al
Lottery leealization fight fails in
Court Of Appeals. Page Az
WASHINGTON AND VICINITY.
Army mobilization plans to be per-
fected here today. Page A.
Cherry blossoms to attract visitors
throughout week. Page Az
Cab driver disarms bandit; $2,700 safe
robbery reported Page B-l
Arlington delay endansers funds for
parkway project. Page B-1
EDITORIAL AND COMMENT.
Editorials. Page A-8
This and That. Page AS
Washington Observations. Page As
Answers to QUESTION: Page As
Evening star., 1938-03-28

the legislation Was thrown into the
courts in November, 1885, when the
Securities and Exchange Commits
sion filed suit against the Electric
Bond & Share Co. and latter coun-
tered NTH cross-biH attacking the
act. Both the District Court and
the Second Circuit Court OF Ap-
peals upheld the law.
BULLETIN.
The Supreme Court today set
aside an injunction issued in the
District Court here to restrain the
New Negro Alliance from picketing
stores OF the Sanitary Grocery Co.,
Inc. in an effort to compel the
employment of colored clerks. The
District Court, with the approval
OF the United States Court of Ap-
peals, had held the matter did not
involve a labor dispute, but the
Supreme Court said this was an
erroneous Interpretation of the
Norris-La Guardia Act.
Upholding the constitutionality of
the Public Utility Holding Company
Act. the Supreme Court today recog-
nized broad powers of the Roosevelt
administration to regulate and SUPER
wise the activities of holding companies
operating in interstate commerce.
The decision. made in a test case
involving the Electric Bond 6s Share
Co. and rs af11liates, was written by
Chief Justice Hughes, with Justice
McReynolds noting q dissent. He did
not write q separate decision. Jus
tices Cardozo and Reed took no part
in the decision.
The controversy grew out of a suit
by the Securities and Exchange Com
mission to compel Electric Bond L.
Share and its associates to register
under the provisions Of the act. and
, counter-suit by the utilities asking
that the law be declared unconstitu.
tional
The act provides that securities of
concerns refusing to register might
be barred from the mails.
No Room for Doubt.
Affirming decisions of the lower
courts, Chief Justice Hughes said, in
part:
The findings of the district court
based upon the stipulation of facts
leave no room for doubl that these
defendants are engaged in transac-
tions in interstate commerce. That
they conduct such transactions through
the instrumentality of subsidiaries
cannot avail to remove them from
the reach of the Federal power. It
is the substance of what they do and
not the form in which they clothe their
which must afford the
test. The constitutional authority
confided to Congress could not oe
if it were deemed to de-
pend upon the mere modal arrange
ments of those seeking to escape Its
The utilities had contended that
the registration provisions of the act
were unconstitutional and not separa-
bic. thereby invalidating the whole leg
islatlon. The Supreme Court dis
agreed with this view, declaring the
provisions to be valid as well as sepa-
rable.
Penalty Upheld.
Discussing the penalties for failure
to register. the Chief Justice said:
I'm the imposition of penalties for
the violation of its rules, Congress has
a wide discretion. Sanctions may be
OF various types. They may involve
the loss of a privilege which would
otherwise be enjoyed. When Congress
lays down valid rule to govern those
engaged in transactions in interstate
commerce, Congress may deny to
those who violate the rule the right
to engage in such transactions. And
while Congress may not exercise its
(See COURT, Page A-4.)
Evening star., 1938-03-28
j. s. DR0PSPR|CE
f. OF FOREIGN SILVER
Reduction to a. Cents an
Ounce Is First Change
in Two Years.
BACKGROUND

0dI dIhonOOND- n
Mexican government eIpropriat-
ed foreign oil industry, in nhich
more than $500. 900 900 has been
INFESTED, on March 49, Moue re-
suited from refusal Of the II COM
pantes to comply NTH arbitral
dWard sharply increasing Udges
and giving other benefits to 1900
morkers. Companies declared tn
credses were so great they were
confscdtory, since revenues did not
make such ,0dges possible.
Evening star., 1938-03-28
HOLDING FIRM ACT.
IS DECLARED VALID.
BY HIGH COURT, 61|
New Deal Wins Test Case by
Electric Bond & Share
and 26 AffiIiates.
NO ROOM FOR DOUBT
IS HUGHES FINDING
McReynolds Dissents-Ban on Use
of Mails as Penalty Also
Is Upheld.

BACKGROUND
The Holding Company Act Das
passed by Congress in 1885 as a
major phase OF the NeU Deal pro-
gram of business reform. Subject
ing holding companies to strict
Federal regulation and supervision.
the legislation Was throWn into the
courts in November, 1885, ,Uhen the
Securities and Exchange Commits
sion fled suit against the Electric
Bond & Share Co. and latter coun-
tered iDith cross-biH attacking the
act. Both the District Court and
the Second Circuit Court OF Ap-
pedls upheld the law.
Evening star., 1938-03-28

(see T. v. A., Page A-3.)
Evening star., 1938-03-28

(See COURT. Page A-4.)
Evening star., 1938-03-28

(See MEXICO, Page A-7.)
Evening star., 1938-03-28

(See HOUSE, Page A-3.)
Evening star., 1938-03-28

Fair and slightly warmer, with lowest
tonight about 40 degrees; tomorrow cloudy
and warmer, followed by showers; in
creasing southwest winds Temperatures
today-Highest, ST. at pm; lowest,
36. at 6 am. Full report on page Az.
The Washington times., 1938-08-31
Hines Fails Shake Curry Testimony of Police Shifts After Policy Raids
Calls Schultz yellow

BRIDGEPORT, Conn, Aug 31-'Dutch' Schultz was
yellow" according to Eddie Corbett of Bridgeport a
former State lightweight boxing champion who run
boxing school, He said Schultz appeared his place in
August 1885.
WED be boxing Corbett said and he d get mad. He
would start to and get tough Then I'd smash
him pretty hard Then he d want to stop''
The Washington times., 1938-08-31

Miro and "the Dutchman." Davis
proceeded:
There was a discussion. The
Dutchman said, You've been
lodging me and giving me the
run around. You've got IT, come
in and make a deal with me.
Agree on Terms
"Pompey said. "All right, If I
can make a deal with you"
Pompez offered so per cent Of
his business to Dutch and they
argued. Schultz wanted two
thirds and they finally agreed on
sixty-forty.
THE Dutchman turned to
George Weinberg and said,
That's your bank, George. I
want you to take care of it. I'll
give you the money for Pompez
in the morning."
Davis told Of having q meeting
The Washington times., 1938-08-31
MOVE TO STRIKE OUT EVIDENCE
IS REJECTED BY JUDGE PECORA
Hines Trial
Frane-Up'

SAN FRANCISCO, Aug. 81.
Max Silverman, erstwhile
bOndSman to the Dutc b
Schultz mob, made q bid to
get out Of San Quentin today
by directing q blast at New
York District Attorney
Dewey's tactics in the Hines
trial.
Pressure" said SiIverman,
was put ON him by Dewey's
staff In an attempt to make
him q satisfactory" witness
in the Hines case. He con-
tended that he had never been
. fugitive witness and that he
is now willing to return to
New York and testify at the
trial.
dewey had me thrown in
to the TOmbs where Dixie
Davis and George Weinberg
were confined" Silverman de-
cIared, "and both Of them, to-
gether with another man,
told me that they were going
to frame Hines. When they
found they could not get me
to perjure myself, 1 was ex-
tradited to California"
The Washington times., 1938-08-31

Ison getting the one-third. After
some quarreling they agreed on
that. Davis said "the Dutchman'
told George Weinberg he'd have
the money ISon wanted the next
day.
Judge Pecora asked how much
money and Davis answered About
$4,000"
Davis said Ison's business was
crossing about $4,000 a day at
the time.
Dewey asked the witness If later
he talked with Schultz about the
policy business in general" Davis
said yes, at 898 West End Avenue.
This was late in 1881 or early in
1892.
"The Dutchman said he was
going to form q policy combi-
nation" said Davis. "He asked
me or George Weinberg to get
Miro because Miro knew a lot
The Washington times., 1938-08-31
OUSTED LEADER
DENIES RANCOR.
F 0 R EX-FRIEND.

keep his own lawyer. He had a
lawyer already. Schultz said.
You'll have to give the business
to Dick if he wants it. I said
didn't want the business If
he had a lawyer and 1 never
got the Maloney business"
Davis said he had some new
bank business at that time-Miro's
and Flores. He revealed that
Big Harry" Schoenhaus, who
later became Schultz's chief book
keeper, was running Miro's bank
at the time.
@. (By Dewey)-Did you
thereafter defend Miro in the
Federal court?
Al did.
Q.-And 1 prosecuted.
Ayes.
Q.-Miro was convicted and
removed from the scene?
A.-For three years.
Disbarred Last Year
Davis admitted he had been
disbarred from the New York bar
in November, 1897.
do you know the defendant
Hines?" asked Dewey. Davis
The Washington times., 1938-08-31

about Harlem and the policy
game"
Conference Held
So they got Miro to attend a
conference. The chat was at
Davis mothers apartment on
West End Avenue, late at night
after Davis folks had retired.
Davis quoted Schultz as saying
to Miro:
do you know anything about
getting bankers into the organi.
zation?"
He said Miro named some bank
ers - Marcial Flores, Alexander
Pompez among them.
1.-THE Dutchman" told Miro he'd
like to meet Pompez.
So another meeting took place
at Davis apartment. Present were
"Bo," George, Lulu" Carney,
The Washington times., 1938-08-31

later with Edwin Maloney, an
other policy banker. The meeting
was at Conti's restauranr on
Forty-sixth Street near Broadway.
Describing the meeting, Davis
said:
THE Dutchman called ME
over to the table and said to
Maloney: This is Dick Davis.
I want you to give all your law
business to him.
"Maloney said he'd like to
The Washington times., 1938-08-31
Looks Like Hines

Carney is "the gray.haired man"
who is supposed to look like Hines.
The defense has indicated they
may try to show that persons who
said they saw Hines with Schultz
actually saw Carney with the
gang leader.
He told Of later talking to
"SpaSm" Ison. Ison told him he
had lost lot of money on q GER
tain number while playing the
policy game and he wanted Davis
to see "the Dutchman" about
lending him some money.
Davis saw George Weinberg and
arranged a meeting with Schultz.
Davis told of those at the meet
ing-Ison, George Weinberg,
Schultz and Lulu RoSencrantz,
"the Dutchman's" ever-preSent
bodyguard.
"Ison told Schultz he wanted
money" said Davis. "The Dutch
man said, Yes, but what have
you got to offer?' Ison said, I
have nothing but my business.
I'm ready to sacrifice half Of
my business
Schultz said it would have to
be two-thirds and one-third with
The Washington times., 1938-08-31
"Very Friendly"

1.-THE Dutchman greeted Miro
very friendly" related Davis. 81
explained to the Dutchman that
Miro intended to bank numbers
in Harlem. ISon wanted the
/! Dutchman to explain to Miro
that he couldn't bank in Har-
lem, or, if he did, he would have
to bank under ISon's supervision.
F.; The Dutchman told Miro to
bank under Ison."
Judge Ferdinand Pecora inter
rupted to ask Davis how old he
was when he first met Dutch
Schultz.
about 26," replied the wit
ness.
when did you get business
from Schultz?'
Seven or eight months later"
replied Davis. "He recommended
a case to me-the case Of Larry
Carney, who was arrested. He
gave me $1,000"
Dewey asked if Carney was q
member of the Schultz mob and
the witness said Eyes"
The Washington times., 1938-08-31

Leo Rosenthal to make an ap-
pointment.
Odd Rosenthal come to
to you?
A.-Yes. We met the Dutch
man and went down town to
Sixth Avenue between Ninth
and Tenth Streets.
Q.-Previously had you met
Hines?
A.-Yes, at the Monongahela
Club, had seen him.
The Washington times., 1938-08-31
Bladder Weakness

When bladder is irritated and kidneys
sluggish you may have to get up often
at night-sometimes flow is difficult
and smarts and burns.
You probably need good diuretic
and kidney stimulant such as GOLD
MEDAL HARLEM Oil Capsules to help
restore kidneys and bladder to normal
activity. Get IS cent box ana get
results-don't accept a counterfeit.
The Washington times., 1938-08-31

ADVERTISEMENT
The Washington times., 1938-08-31
Met Through Weinberg

Davis said "Big Joe" Ison came
TO him and explained he wanted
to see Schultz about starting up
In the policy numbers again. Davis
said he'd try to arrange it. He
talked to Weinberg about it. He
quoted Weinberg as saying:
"You have never met Arthur?
(Schultz'S real name was Ar
thur Flegenheimer). I'll tell him
who you are and you can 60
over and meet him."
Soon afterward Davis met
Schultz. Weinberg arranged the
meeting at an apartment in which
Davis was living. The apartment,
Davis said, belonged to Martha
s. Delaney, who later became my
wife"
When Davis went to the apart
ment there were present Ison,
Miro, Lulu RosencrantZ, and
George and "Bo" Weinberg. "Bo"
and RoSencrantz were Schultz
Safeguards.
The Washington times., 1938-08-31
Ex-TdnnanyBOSS
SubStQntiQteS
Weinberg
[ CONTINUED from Page "

tC0nt1nued from Page IL
Hines in connection with the al.
legged policy racket conspiracy.
Weintraub's case was severed at
the opening of the present trial.
/ Met "BGnkers" in 1880
Davis said that about six months
after he opened UP the office he
got a policy case" and he met
some bankers" That was in 1880.
It was at that time, Davis said,
that he met George Weinberg,
Joseph "Spasms" Ison, Alexander
Pompez, and others, who sub
Sequently became identified with
"Dutch" Schultz in the $40,
000-a-year policy racket.
II got business from them,"
said Davis. "I was given a re-
tainer by the bondsman to
represent employees Of any Of
the banks who were arrested"
Davis admitted that by the fall
Of 1881 he had a large practice,
handling 10 and Is cases a week
at about $25 per case.
In the summer of 1881 he had
q conversation about Dutch"
Schultz. He said he didn't know
''The Dutchman" at that time.
The Washington times., 1938-08-31

glanced at the defendant and
said, st do"
Q.-Can you tell us when you
met him?
Am the fall of 1882.
Q.-That was after you met
Dutch Schultz?
Ayes.
Q.-How old were you when
you met Hines?
A.-27.
Q.-Hold old was he?
Aground 81 or SIS.
ArrGigned by ''Dutch"
Odd somebody ask you to
come meet Hines?
Ayes. The Dut C h m a n
spoke to me and got in touch
with Leo Rosenthal, who owned
a restaurant at Broadway and
Ninety-sixth Street, and asked
Evening star., 1938-05-23
POST OFFICE PRIZES

The Treasury has offered about
$40, 900 in prizes for the best architec-
tural designs for new post Offices.
Six thousand dollars. including a
$1,000 prize and a $4,000 salary for
consulting on specifications, was Of
fered to the architect drawing the best
design for a new $3.50, GOO post Office
courthouse building in Covington, Ky
Second and third prizes of $4,000 and
81 900 also will be given in this con-
test, which ends July 26.
Prizes Of $1,000 each also were Of
fered for the 10 best drawings for
small post ofiices to cost $4,000 each.
Evening star., 1938-05-23

catch her eye while she is en- route
to social functions, she orders the
chauffeur to stop, jumps out with her
camera and makes pictures for her
files.
Construction of the first Embassy
to be built here by the German gov
ernment will begin soon, Frau Dieck-
hon said.
Exterior plans were made by q
German architect in consultation with
the Ambassadors wife during her
wo-month visit in Germany last win
ter, she said. In July. Frau Dieckhof
will sail again with the Ambassador
to complete plans for the interior
decoration.
The architects drawing shows a
three e-story stone mansion, with six