The Waterbury Democrat., 1940-11-21

the tremendous influence that could be exerted from a bureau established in the German ministry at Berlin.
 "The whole scheme. in short, is typical of the thoroughgoing intent to establish direct control, through the agencies indicated, of large section of the economic structure of America"
 The Kertess plan for the bank said it was not intended to compete with American banking institutions. It declared in this connection:
 Tn view of the fact that in New York alone about 750,000 German (citizens of the Reich as well as Germans generally are domiciled. And that in addition there is a large number of local representatives of large and small German industries it is reasonable to assume that such a German banking institution as is proposed would be assured a most promising field of operations"
 The committee report dealt at length with the purported Thom- senzapp correspondence. One letter, dated March .., 1889 requested Zapp to, furnish news to Nazi con- suis in Ottawa and Montreal, Cam ada, and to Adrien Arcard, who, the Dies committee said, "at that time was the fuehrer of the Canadian national unity party" The Nazi cor respondence almost invariably end- ed with the salutation, "Heil Hit Ter"
 Letters of Zapp
 The committee also produced let ters which it said Zapp had written , or received from Ulrich Won Gien- anth, identified as propaganda ministry representative in the Ger man embassy; Dr. Herbert Blan- kenhorn and Herbert Won Strem- pei, of the embassy, and officials in Berlin. A number of cabled orders from Berlin to zapp, and core spondence with consular officials in New York, Boston, New Orleans, Cincinnati, and Cleveland, as well as South and Central American consulates were reproduced. Most of the letters pertained to Zapp's trans-ocean news reports.
 The Berlin orders included direc- tions to disseminate widely a Nazi policy atrocity report, to carry dis patches from Rome, to disseminate radio photographs, an urgent re- quest for most detailed report concerning the investigation" = the Dies inquiry-and another request for an urgent" report on whether President Roosevelt was running in the Illinois primaries.
 One Message -.
 One message from Berlin to Zapp said:
 Urgent. Stockholm paper alleges that Hollywood police received in- numerable phone calls that Nazis had landed in America. Extras in Nazi uniforms marched for the shooting of an anti-German film. Give us details"
 This, the Dies committee said, Sis indicative of at least one type of information that Berlin desired from zapp concerning happenings in the United States"
 The committee document also purported to show that zapp en- gineered the American publication of what was known as "the first German white paper" consisting of United States diplomatic papers the Nazis claimed to have seized when they took Warsaw.
 Translation Denied
 The committee charged that on or about April 1, 1940, the New York publishing firm of Howell, Soskin & Go. approached the Ger man embassy at Washington" for the English translation of the Ger man white paper. and received a negative reply. But four days later zapp told the publishers he could furnish the translation and on May assured them by telephone he could sell 10000 copies. Zapp, the documents showed, got a 10 per cent royalty.
 The committee said that the state department apparently considered distribution of the book as "dis- tribution of propaganda on behalf Of Q foreign government" because it sent a registration statement - under the law requiring registration by agents of foreign principals = to Howell, Soskin & Go. The firm inc formed the state department 1t did not distribute the book "and ace cordingiy the matter was dismissed" l"
 The comms tee said . letter from zapp to pr. Adolph Faust. in Ger many. contained further evidence .. that Zapp at ali times was en-