davidaulloa/AmericanStories huggingface dataset:
Evening star., 1940-07-22
Gives Up
To Start Term for
Tax Evasion
Publisher Must Serve
Thfee-Yeor Sentence
At Lewisbure Prison
By the Associated Press,

BY the Associated Press
CHICAGO, July 22.-M. L. An.
nenberg surrendered to the United
States marshal today to begin e t-.o
to the Federal penitentiary at Lew.a-
burg, Pa, where he must serve
three-year term for evasion of in
come taxes.
Chief Deputy Marshal Joseph To-
bin said Annenberg appeared at the
Loop Office of his chief counsel,
Weymouth Kirkland, and that the
marshal's Office was advised by tele-
phone
Marshall William H. Mcdonnell
went to the lawyers Office and
started Immediately by automobile
Tor LeWisburg with his 63-year- old
prisoner, who once ruled the turf
news field as one of the Nations
wealthiest men.
The marshal said he and Deputy
Joseph Thinnes would drive the 27O
miles to LeWisburg in McDonnells
coupe. The commitment papers had
been prepared and waiting.
Spent Week End With Family.
Annenberg, Philadelphia publish
er, thus began paying in time his
debt to Uncle Sam for criminal vio-
lation of the income tax laws. He
also has paid 100000 as first in
stallment on an 100000 settle
ment he agreed to make on civil
income tax claims.
Annenberg spent the week end
with his family in Philadelphia,
then surrendered on the day his
stay of execution expired. He was
sentenced July l by Federal Judge
James H. Wilkerson who later
denied him probation.
Mr.. Kirkland said he understood
the marshal would take Annenbere
to the Federal prison farm at Milan.
Mich, by tonight and proceed on to
Lewisburg tomorrow
Meanwhile, United States Attor-
ney William j. Campbell said he
would move in court today or to-
morrow to dismiss remaining
charges against Annenberg and
Joseph E. Hafner, bookkeeper for
the Annenberg corporate setup.
Other Charges to Be Dropped.
Hafner pleaded guilty to aiding
and abetting Annenberg in the tax
evasion and was sentenced to five
months in the Cook County (Chi-
cago) JAIL term he was due to
begin today.
Mr.. Campbell said he also would
move to dismiss charges against
IA individuals and companies as
soclated with Annenberg. The
Government agreed to such dismis-
sails when Annenberg decided to
plead guilty in April to a charge
of evading s12l7,296 in taxes on
his 1886 income. That was one
count of a siX-count indictment
which accused him of failing to paw
taxes, penalties and interest total
ing S5,548,384 for the years 1882 to
1886.
Among those to be dismissed was
Annenbergs only son, Walter.
Evening star., 1940-07-22

atty, the amended sentence placed
him twice In jeopardy for the same
(second ofense. He claimer fur
ther the elevator was a place of
detention within the meaning of the
law.
United States Attorney Edward
M. Curran and Assistant United
States Attorney Arthur B. Cald-
well conceded that If Rowley had
begun to serve the sentences, as
originally pronounced, it was beyond
the courts power to make the
amendment. But they said his
place of confinement had not ye.
been determined.
District Court discharged the
writ of. habeas corpus and remand
ed Rowley to SERVE out the rest of
the second sentence and today the
appellate tribunal, to which Rowley
took the case, found no error in the
lower courts finding and affirmed
its ruling.
The case was heard in the United
States Court OF Appeals by Asso-
ciate Justices Harold M. Stephens,
Justin Miller and Wiley Rutledge.
Justice Rutledge wrote the opinion,
IN which the others Joined.
Evening star., 1940-07-22

Court Holds Judge Can Change
Sentence Before Term Is Beoun

A Judge can change a sentence
making it more severe, If he alters
the record before the prisoner has
left the courthouse, the United
States Court Of Appeals here held,
in effect. today.
The case arose when Frank M.
Rowley, who pleaded guilty on May
3, 1898, to- two indictments on diff
ferent charges of procuring mis-
carriage, was sentenced to.one year
to Is months on each indictment,
to run corlcurrently.
Half an hour later, after the man
had been held in an elevator block
at the courthouse, the justice who
had sentenced him recalled him and
said: Il intended to say consecu-
lively. Change that (sentence) to
consecutively."
Rowley went to Lorton Reforma-
tory, where last Thursday he COM
pleted serving the time equal to
the concurrent sentences and
sought release by habeas corpus,
contending he had begun to serve
the sentence before the correction
was made by the trial justice and
therefore, since 1t increased the pen-
Evening star., 1940-07-22
Supreme Soviet Expected
To Approve Requests

MOSCOW, July % R,.-An early
session OF the Supreme Soviet, Rus
sias Parliament. is expected to
approve the requests of Latvia,
Lithuania and Estonia for mem
bership in the Soviet Union.
The addition of the three states
will increase Russia's Baltic Sea
front, as we'll as her land frontier
with Germany. Their 5,500,0O0 in
habitants will boost the Soviet pop
ulation to around 10000, 900.
With the three Baltic states
members of the Soviet family the
number of independent allied re-
public in the Soviet Union will be
increased to IS, compared to II a
year ago. A 18th, the Moldavian
Republic created from Bessarabia
and Northern Bucovina ceded by
Rumania, is expected soon to be
formally proclaimed.
The first of the newly added ter
ritory was the Karelian- Finnish
Republic, carved. out of the area
obtained from Finland.
Evening star., 1940-07-22
kozi Economist Expects
No Reporotions for War

NEW YORK, July % tP) (Via Ra-
dio) The German radio yesterday
quoted an article by Dr. Joseph
Winschuh, German economist, pre-
dieting that the victors in the pres
ent war would impose no reparations
In gold or manufactured goods from
the vanquished.
Instead, the economist was quoted
as saying Germany would have re-
stored what it was robbed of" in
raw materials and valuable rights.
The broadcast quoted from an
aricle by Dr.. Winschuh entitled
Lacking Backward From the Year
2o0o."
It said that again, as in the
World War, the United States was
thought to be the greatest prof.
teer" and gathered almost all the
worlds gold, until gold came to be
valueless outside the United States
and the European economic ex-
change system won over the trade
Of South America. Finally, the
United Safes, finding no other use
for It's vast gold reserves, used its
gold to decorate public buildings
and street lamps.
Evening star., 1940-07-22
Text of Roosevelt MESSAGE
President Asks $500, 100000 Increase
In Export-Import Bank Capital

This is the text of President
Roosevelts message to Congress
asking for s5O0,00O,OO0 increase in
the capital and lending power OF
the xport-Import Bank:
To the Congress of the United
States:
AS a result of the var in Eu-
rope, far-reaching changes in
world affairs have occurred which
necessarily have repercussions on
the economic life both of the
United States and of the other
American republics.
All American republics in some
degree make practice of selling,
and should sell, surplus products
to other parts of the world, and
we in the United States export
many items that are also export
ed by other countries of the
Western Hemisphere.
The course of the war, the re-
sultant blockades and counter
blockades. and the inevitable dis
organization, is preventing the
flow of these surplus products to
their normal markets. Neces-
sarilv this has caused distress in
various parts of the New World,
and will continue to cause dis
tress until foreign trade can be
resumed on normal basis, and
the seller of these surpluses is
in a position to protect himself
in disposing of his products.
Until liberal commercial poll
cies are restored and fair trad
ing on a commercial plane is re-
opened, distress may be con-
tinued.
Asks Easing of Restrictions.
I therefore request that the
Congress give prompt considera-
ton to increasing the capital
and lending power of the Export
Import Bank of Washington by
100000, and removing some
OF the restrictions on its opera
tions to the end that the bank
may be of greater assistance to
our neighbors south of the Rio
Grande, including financing the
handling and orderly marketing
OF some part Of their surpluses.
Evening star., 1940-07-22
Nine More Merchants
In Alexandria Face
Sunday Law Hearing
Charges of Violations
To Be Heard Tomorrow
In Police Court
BY Staff Correspondent Of The Star.

BY Staff Correspondent OF The Star.
ALEXANDRIA. Va, July o.
Nine more local merchants have
been summoned by Inspector Thorn
ton j. Goods of the State Labor
Department to appear at Police
Court tomorrow on charges of vio-
lating the States Sunday blue law"
Eight merchants were summoned
a week ago. Two were found guilty
and decision on six other cases was
reserved until July 30.
The State law, with certain ex-
ceptions, limits sales to 'necessi-
ties"
Those summoned to appear to-
morrow and their businesses are
Gus Kutrotsos of the 400 block OF
King street, shoe shining and hat
cleaning establishment; Mrs. Ida
Goldberg, 1900 block of Mount Yer
non avenue, delicatessen; T. r.
Brown, 5000 block of Mount Vernon
avenue, bakery; George A. Emmart,
5000 block Mount Vernon avenue,
drugstore; S. Guy Duncan. service
station at Henry and Cameron
streets; D. D. Squires. TOO block OF
North Washington street, service
station; James Worley. auto laun-
dry at 800 block of Gibbon street:
G. A. Harris, drugstore; D. E. Vozo-
las, 700 block of King street, valet
service.
Service station operators were re-
ported TO have been accused of
washing automobiles.
Mr.. Goods warned last week that
church organizations and private
citizens had made complaints. He
said the law would be enforced If
upheld in the first test cases in
Evening star., 1940-07-22
D. G. Pastor Addresses
Church Summer School

FREDERICK, Md, July 22.-The
Rev. Oscar F. Backwelder of WASH
lngton addressed the fifth annual
summer school of the Maryland
Synod, United Lutheran Church,
here today.
The school, which opened Satur-
day. will close Friday. A religious
drama was presented at Hood Col
lege last night for visiting church
members.
A sunset service will be held to-
morrow at High Knob in Gambrill
State Park.
Evening star., 1940-07-22
Tax Experts Draft
Bill Designed 10 Ban
War MiIIionaires'
Defense Problems MAY
ProIong Congress Session
For Many Weeks
BY the Associated Pres

BY the Associated Press.
Administration tax experts brought
out today the first rough draft Of a
bill to prevent war millionaires. ("
1t was an excess profits" tax, to
be levied on surplus revenue. Treas
ury and congressional workers tndi-
Gated the measure of surplus"
would be either normal earnings" or
reasonable return on capital in
vestment," depending on the indi-
vidual case.
President Roosevelt last spring
urged some measure to forestall en-
richment Of manufacturers who
would get huge contracts to build
airplanes and other weapons for the
Army and Navy.
One Of the major question marks
on the bill was whether it would
supplement or repeal the new 7
per cent profit limitation on Gov
ernment airplane and warship con-
tracts. Indications were that it
would replace existing legislation.
Details Withheld.
Pending study by the House Ways
and Means Committee, for which
the draft was made, experts de-
clined to discuss the measures con-
tents in detail.
The experts pointed out that the
excess profits taxes tried during the
World War and for a while after
ward were based either on normal
earnings" alone or on reasonable
return Neither method was found
fair in all cases.
The rates to be charged have not
yet been determined. One informed
source said that rates would depend
on "how much money they want
to raise"
The Treasury, which considers
the excess profits tax one of the
most complex drafting jobs ever
tackled in single tax bill. has
called in two outside experts to help
its already large staff. They are
Randolph Paul, a private tax lawyer
of New York, and Roswell Magill,
former Treasury Undersecretary
now teaching law at Columbia Uni
versity.
Expert Gives General Idea.
One expert gave this general idea
of how the tax will work:
Company "A" has averaged $780,
600 profits in q certain period Of
normal earnings" (probably a Pc
riod of three or more years prior
to 1880. Next year, it earns $780,
900. 1t pays the regular income and
other taxes. In addition. it pays a
tax on its extra or excess" profits
over the 100000 normal" profit,
with some minor exceptions. That
may leave, for instance. SIS 900 sub
ject to the excess profits tax. The
tax on this portion, judging by what
was tried in 1917, would be between
20 and so per cent.
Company "B" has an investment
of $1,000.0O0 in factories, ware
houses and equipment In this case,
the return on capital investment
theory might apply. A 1918 law
that tried this theory allowed profits
equal to 8 per cent of investment,
or $4,000. The excess profits tax
applied to all money earned over
that figure. The rates ranged from
80 to IS per cent.
Evening star., 1940-07-22
Girl Held in SHOOTING
Of Father at COTTAGE
BY the Associated Press.


CHESTERTOWN, Md, July o.
Sheriff Robert E. Lee today quoted
15-year-old Elvira Esling of Balti-
more as saying she shot her father
at a summer cottage near Rock
Hall last night after he became
abusive and threw the dinner on
the floor
The father. John E. Esiing, So
year-old tinsmith, was brought to
the Kent-Queen Anne's Hospital last
night with a bullet wound in the
abdomen. Hospital attaches de-
scribed his condition as good"
Placed in custody of the sheriff's
wife, Elvira sat tight-lipped and pale
today. refused to answer questions
and declined to amplify her first
statement to officers.
States Attorney Harrison w.
Vickers said no charge had been
placed against her pending the out
come of her fathers wound.
Evening star., 1940-07-22
0Iiveri, D. {. Entrant,
Cards IS in Public Links
BY the Associated Press

BY the Associated Press.
DETROIT. July 22.-Par defied
the early finishers today as the
36-hole, two-day qualifying round
of the 10Th annual national public
links championship opened at the
Rackham municipal golf course here.
Scores were in the low 70s for the
most part, and of the first 81 men
to finish reported 72s, one over
regulation figures.
The u shooters included Jimmy
johnson. Detroit; Walter Gillian,
San Mateo. Calf; Lester Jankoski,
Summit, N. j.; Billy Korns, Salt
Lake City, and Jack London, jr., of
Oklahoma City. Andrew j. Oliveri
of Washington had IS.
Evening star., 1940-07-22
Pressmon Found Dead
In Gus-Fi|Ied Kitchen

Ralph S. Wirsching. 50, a press
man employed in the Bureau of
Printing and Engraving, was found
dead last night in the gas-flled
kitchen of his home, 1884 Twenty
ninth street. Mount Rainier, Md.
Relatives said he had been des-
pondent over the death of his wife.
Mrs. Mary Alberta Wirsching, a
month ago.
He is survived by two sons. STAN
ley and Jack Wirsching, both Of
Mount Rainier. A native of Ohio.
he had lived in or near Washington
for % years.
Evening star., 1940-07-22

1t is to be hoped that before
another year world trade can be
re-established. but, pending this
adjustment, we in the United
States should join with the peo-
Piles of the other republics of the
Western Hemisphere in meeting
their problems. I call the atten-
ton of Congress to the fact that
by helping our neighbors we will
be helping ourselves.
In Interests Of All.
1t is in the interests of the pro-
ducers of our country, as well as
in the interests of producers of
other American countries, that
there shall not be disorganized
or cutthroat market in those
commodities which We all eX-
port.
No sensible person would ad-
vocate an attempt to prevent the
normal exchange of commodities
between other continents and the
hA4Cl1 1SdSs uuO "lldb SdIl dllO
should be done is to prevent ex-
cessive fluctuations caused by
distressed selling resulting from
temporary interruption in the
flow of trade, or the fact that
there has not yet been re-estab-
lished system of free exchange.
Unless exporting countries are
able to assist their nationals, they
will be forced to bargain as best
they can.
AS has heretofore been made
clear to the Congress. the Export
Import Bank is operated by direc-
tors representing the Departments
Of State, Treasury, Agriculture
and Commerce. and the Recon-
struction Finance Corp, and is
under the supervision of the Fed
eral loan administrator, so that
all interested branches of our
Government participate in any
loans that are authorized. and
the directors Of the bank should
have free hand as to the pur-
poses for which loans are author
lied and the terms and condi-
tions upon which they are made.
l therefore request passage of
appropriate legislation to this end.
Evening star., 1940-07-22
Relatives Find Amnesiu Victim,
Missing for Twelve Years

Relatives said they learned July 2
that man answering Mr.. Walms-
ley's description had been working
in Raleigh, N. c., for the last eight
years under the name of Russell
Walker. Mr.. Walkers employer Wis
tied here and established the def
mite identification.
Last night, Mr.. Walmsley saw his
mother for the first time in II
years. Relatives said his memory
had not fully returned, but that
he was convinced his name was
Walmsley and that he formerly
worked for the Baltimore bank.
He said he vaguely recalled spend
Ing several years" on a boat, but
could not remember details. He was
23 at the time Of his disappearance.
Evening star., 1940-07-22
Resolution on Soviet
Agreement Rejected

BY the Associated Press.
The House Foreign Affairs Com
mittee today rejected a resolution
by Representative Fish, Republican,
of New York calling on President
Roosevelt to inform the House
whether there was any secret agree
ment between the United States and
Soviet Russia.
Committee action followed a letter
from Secretary Of State Hull saying
this Nation had no secret UNDER
standing with Russia.
Evening star., 1940-07-22
Three Baltic States
Petition Moscow for
Union With Soviet
PorIioments Speed Plans
For Property Control
On Russian Lines
BY the Associated Press.

BY the Associated Press.
RIGA. Latvia, July 22-Commu-
mist Parliaments of Estonia, Lat
via and Lithuania speeded plans
F.; today for state control of property,
industry and banks after voting to
petition Moscow for membership in
the Soviet Union.
Approval of the petitions. with
which delegates were expected to
depart for Moscow later in the day.
was regarded as a foregone con-
clusion and the union was accepted
as an already accomplished fact.
Festive crowds danced and pa
raded in the streets of Riga and
dispatches from the Estonian and
Lithuanian capitals of Tallinn and
Kaunas told of similar celebrations
there.
Incorporation OF the three little
Baltic states into the Soviet Union
was foreshadowed last week end at
parliamentary elections in which
Communist candidates were unop-
posed.
Actually the three sister repub-
lies have been under Moscow's
thumb since last fall when Rus
sia demanded and obtained mill
tary bases and other concessions
from them prior to the beginning
of the Russian-Finnish war No.
vember 30.
Russian domination was complet-
ed June II when the Red Army
staged a bloodless invasion after
demanding the right of passage
through the three countries.
Absorption of the states into the
Soviet Union will eliminate them
AS buffers between Russia and Ger
many i'll the Baltic Sea.
Simultaneous Action.
The decision to unite with Russia
was taken by the three parliaments
at simultaneous meetings yesterday
afternoon in halls decorated with
Red flags and portraits of Josef
Stain. Russian representatives at
tended the sessions.
Cries of Long live Stain" rang
through the halls as the parlia-
mentarians voted to join their coun-
tries again to the nation from which
they won independence only %
years ago.
The three nations have total area
OF IS 5,243 square miles and an aggre-
gate population Of about 5,50O,0OO,
divided as follows: Lithuania. 2,5O0.-
600; Latvia, 100000, and Estonia,
100000.
The Stockholm newspaper Stock
holm Tidningen said in a dispatch
from Riga that German, Austrian
and Jewish political refugees would
be given an opportunity to acquire
immediate Latvian citizenship by
placing themselves at the disposal
of the Soviet and indicating their
Willingness to join the Red Army
at meeting today.
From Helsinki came reports that
small number of Estonians had
fled to Finland rather than remain
in a Sovietized state.
The Russian press printed ac-
counts Of jubilation with which citi-
zens OF Latvia, Estonia and Lith-
uanla greeted the action of their
parliaments. Representatives of the
three nations watched the annual
Red Square sports parade in Mos
COW, in which 20 000 athletes opd
| units of the Red Army participated,
Evening star., 1940-07-22
Lotviu's S Former
Chief Reported
GroveIy Wounded
BY tie Associated Press.

SDs
LONDON, July 22.-An Exchange
Telegraph British news agency
report from Goteborg quoted Swed-
ish sources today as saying that
Karl Ulmanis. former President of
Latvia, was gravely wounded and
In a hospital at Riga.
Before Transforming Latvia into
socialist republic and petitioning
for membership in the Soviet Union
the country's new Communist rulers
decreed the custer last week of g.
year-old Ulmanis. who helped write
the Latvian declaration of inde-
pendence in 1918.
Evening star., 1940-07-22
tomorrow afternoon.

Pressure is high over the Southeastern
States and relatively high over New Eng
land and the north Pacific Coast. Chatts-
inches). and Eastport Me-. NSas and rstoosb stocs
island Wash. 1918 mllibars 13OO4
snci,s: s1nchsS: Pressure remains low over the
zion and a minor disturbance is moving
slowly eastward over Montana. Yuma
Ariz.. 1.O07.5 millfbsrs t2975 inches1 and
blliinRs, Mont, 1.01S.S millibars (o9S5
inchesl; There have been scattered show
ers and thunderstorms in the Dakotas and
n portions OF New England and the
southern States. Temperatures continue
above above normal almost generally over the
Evening star., 1940-07-22
BY the Associated Press.

ny tNc ASSOCIATED HreSS.
ELKTON, Md, July 22.-Richard
A. Walmsley, former assistant treas
urer of the Colonial Trust Co. in
Baltimore who disappeared in 1928,
came home last night, an apparent
victim of amnesia.
Mr.. Walmsley left the trust COM
pany at the close of business June
II, 1928. and vanished. His accounts
were in perfect order.
Shortly afterward, his father, A.
B. Walmsley, resigned his position
as assistant general freight agent
Of the Erie Railroad and spent a
small fortune travelling across the
country In search Of his son. Three
years ago, the elder Mr.. Walmsley
died.
Evening star., 1940-07-22
British Raw Material
Position Seen Improved
BY the Associated pres.

BY the Associated Press.
LONDON, July 22.-An authorita-
tive parliamentary source said to-
DAY the British cabinet has decided
that improvement in Britain's raw
material position warrants restora.
ton OF full ALLEGATION of raw mate
rails for exports.
Restriction of home consumption
is necessary to maintain these ex-
ports" the source said.
Evening star., 1940-07-22
Congress in Brief
TOMORROW.

Senate:
Will be in recess.
Military Affairs Committee may
hold executive session on selective
military service bill.
House:
Considers private calendar.
Appropriations Subcommittee re-
sumes hearings on national defense
program, 10 am.
Evening star., 1940-07-22

Police Court In recent years the
law has not been enforced here.
Establishments classified as com
munity necessities" are generally
regarded as including restaurants
and drug stores. Filling stations
also are specifically exempted in the
State law.
Thirteen grocers who had been
operating on seven-day-week basis
announced Saturday they would
close on Sundays.