Evening star., 1941-07-24
Transocean Accused
OF Trying 10 Arouse
Uruguay's Anger
Jury Told News Service
Called U. S. Ships Visit
Yankee Intervention

How TranSOcean News Service, IN
its dispatches to South America,
tried to make the visit of two
American warships to Uruguay In
June, 1910, look like Yankee inter-
vention" in Uruguayan internal af-
fairs was described to a District
Court jury today.
DR.. Hugo Fernandez Artucio OF
Uruguay gave the testimony after
William Maloney, special assistant
to the Attorney General, had de-
scribed Transocean as "cancerous
growth spread all over North and
South America" to distribute Nazi
propaganda. The news service is on
trial on a charge of failing to regis
ter with the State Department as
an agent of foreign power.
1T was a subversive agent that
would shock the sensibilities of any
man who believed in freedom of the
press, and here we were harboring
it in New York City," Mr.. Maloney
declared.
He made his statements to Fed
eral Judge T. Whitfield Davidson
while the jury was out of the room
during debate on whether DR.. Artu-
clos testimony about Nazi infiltra-
ton into his country would be per-
mitted.
1T was an outfit that printed
half-truths and untruths,' Mr.. Ma
loney said.
Tho peu,c cary;oa can't oolorod va
ports to its South American sub
Scribers in order to play up inter-
vention by the colossus of the
North" Mr.. Maloney continued.
This was done at the instruction OF
the German Minister to Uruguay,
Mr.. Landmann, the prosecutor said
Mr.. Maloney said that DR.. Ar
tucio is credited with uncovering q
Nazi plot to overthrow the govern
ment OF Uruguay and seize control.
The plot was blocked and 80 NaZi
leaders arrested about the same mo-
ment that "as gesture Of goodwill,
our President saw fit for two Amer
lean cruisers to pay a visit to Uru-
quay" the prosecutor said.
Emil Morosini, jr., defense attor-
ney, objected to the entire line OF
testimony that DR.. Artucio was pre-
pared to give and commented, there
must be other forums where all this
may be presented"
He argued that the acts Of Trans
ocean in other parts of the world
were no concern of this court.
Judge Davidson ruled, however.
that if it were possible to fire a
cannon in New York City to South
America and hurt somebody, 1t
would be a concern to the United
States. BY analogy, he went on, If
subversive material were sent out
over the radio to South American
country that was injurious to some
one it would be concern OF this
Government.
The prosecution charges that the
dispatches were sent from New York
by radio.
The testimony of DR.. Artucio fol-
lowed the introduction during the
trial Yesterday afternoon of a con-
fidential memorandum from Man
fred Zapp to Gunther Tom, ex-
PEELED manager and editor, respec-
lively. of the agency, in which Zapp
said the German Minister had asked
a report on articles from Uruguay.
The note was found on Tom at the
time of his arrest by Federal Bu-
reau of Investigation agent.
.sCpnnio1 l,ta &c atf -
statements" the note continued,
''as, for example, that the American
fleet has restored tranquility in
Uruguay, that American warships
guaranteed the certainty of political
order down there in Uruguay, etc.
Requested Note Be Burned.
II am requesting you to burn
this memorandum after taking cog
nizance Of it"
Other correspondence read by Mr.
Maloney included letter assertedly
written by Zapp to Hans Thomson.
Charge dAffaires of the German
Embassy. discussing a conversation
Zapp had had with the Chilean
delegate to the Pan-American con-
ference in Panama. One item in
cluded reference to Chile's need for
ship tonnage and the possibility that
ships of foreign registry lying idle
in South American ports might be
seized.
Two other letters introduced
showed how, Mr.. Maloney said, the
minds of Zapp and members of the
German Embassy ran in the same
channel with respect to a great
interest in South American affairs.
On the same date, Zapp and a mem.
Der of the Embassy addressed letters
to each other, inclosing the same
newspaper column which dealt with
use of news services in Colombia.