Evening star., 1940-04-29
New Agency Formed
To Combat Neutrality
Violations in j. :.
PennsyIvunjon Heuds Unit;
Shipping at l0-Yeor High
Despite Restrictions
~ the Associated Press.


~ the Associated Press.
Disclosure that American shipping
has reached its highest point in 10
years, despite Neutrality Act restric-
tons, coincided today with the Gre
alton Of special neutrality unit in
the Justice Department.
Attorney General Jackson as
signed to the new agency "responsi-
bility for control" in prosecutions
relating to neutrality, foreign en-
Nstments, treason, sedition, espion-
age, sabotage "or kindred offenses."
Lawyers of the new agency, Mr..
Jackson said, will study cases in
terms of both adequate protection
Of the national interest and the civil
rights Of individuals"
Work With Other Departments.
The unit will work in "active
contact" with guardians of neu-
trality in the State, War, Navy and
Treasury Departments, but will not
supersede or overlap the work Of
the Federal Bureau Of Investigation
or the civil liberties unit. 1t will
be headed by Lawrence M C. Smith
of Pennsylvania, who previously had
made investment studies for the
S. E. G.
The White House said creation of
the unit was intended to provide
better coordination in prosecuting
violations Of laws designed to keep
the country out of war and to assist
rather than detract from any ac-
tivities Of the F. B. I.
Stephen Early, presidential secre-
tary, told reporters the unit was set
up as result Of conversations be-
tween President Roosevelt and Mr..
Jackson and would provide central
point for co-ordinating prosecution
OF cases in a manner that has not
been done IN the past.
Mr.. Early said present working
Of the Government" on cases of the
types involved was entirely too
much scattered"
This is perfection program"
he said, intended to aid and assist
the F. B. I. and doesn't overlap or
subtract from anything they are
doing"
Clearing House for Cases.
Heretofore, Mr.. Early said, cases
have been handled by local F. B. I.
agents and district attorneys. The
new unit, he said, will provide a GEN.
tral point for "the selection of cases
that will or will not be prosecuted"
The departments announcement
made no mention of persons arrested
in Detroit several months ago on
charges of recruiting aid for the
Spanish Loyalist forces. Mr.. Jack
son, upon becoming Attorney Cen
eral, ordered prosecution of that
case stopped.
Numerous charges were made, in
Guiding some in Congress, that the
F. B. I. agents who made the arrests
used "third-degree" methods.
The department did say, however,
that the purpose of the new unit
was to assure uniformity of policy"
which it said was mot possible
when prosecutions are initiated by
district attorneys"
U. s. Shipping Grows.
Meantime the Treasury gave out
figures to show that more American
ships were carrying more freight TO
foreign ports than at any time in
decade.
In January and February a total
OF l,042 American vessels cleared
for foreign destinations with o.
562, 900 tons of cargo. The COM
parable figures for January and
February, 1899, were a32 ships carry
ing 2,264,000 tons.
The Customs Bureau termed this
rise striking in view of the diver
sion Of American vessels from the
war zone to Mediterranean, South
American, African and Asiatic ports
and the withdrawal of passenger
liners from the North Atlantic"
Morse and Danish Cash Frozen"
Another Treasury report showed
that Norway had $66, 1896 900 in cash
In the United States at the end of
January. Denmark, invaded by Ger
many since that time without re-
Sistance, had $28, ,703, 900.
These are the credits which were
"frozen" by presidential procla-
nation after Germany's march to
the north.
Sweden's cash balance was $780,
385 900, and Finland had S23,822, 900
In this country. Belgium had $780,
2l5,000. All the balances were in
creased during January, Sweden
having the largest gain, $40, 0,156, 600.
The Treasury reported net liqui-
dation of American securities by
foreign owners of $4,479,000 during
the month. This compared with
postwar high of $40 500 900 in Octo-
Der and = low Of sl,087 900 in De-
cember.
British and Canadian investors
were among the largest sellers of
American securities, while Switzer-
land and the Netherlands continued
to be heavy purchasers. France in
creased its holdings slightly for the
third consecutive month.