Terror of Nazi Action In Germany Recounted Accounts of Persecution Are Understatements of Actual Conditions, Congressional Board Told By LaFollette, Yarnall WASHINGTON, April 21. (V) Two first-hand observers, fresh from Germany, described to a congressional committee today an atmosphere of Nazi "terror," which they said prevailed there, although abhorred by a large majority ROESNER'S SUIT IS THROWN OUT Failure to Post Bond Reason for Action By Judge Is PHOENIX, April 21. (JP A $200,000 slander suit filed by Harold C. Roesner, former Santa Cruz county state senator, against the Friendly Loan and Finance company, Phoenix, and its president, Henry Goodman, was dismissed today by Superior Judge Marlin T Phelps because the plaintiff had failed to post a $250 cost bond. Roesner charged that Goodman slandered him by telling the senate during a secret session that he. Roesner, had demanded a $19,000 bribe to kill a bill which would have- reduced the- interest rate charged by small loan companies. Complaint Cited His complaint alleged that Goodman told the 18 other senators January 30 that Roesner had demanded of him, and proposed to him and the loan company "that if he (Roesner) should receive $19,000. one thousand dollars ($1,000) for each senator, that the bill which this nlaintiff fRnesnerl introduced to regulate the interest o! finance companies on the small loans would be killed." Such a statement, Roesner charg ed, was untruthful, malicious and defamatory and was "privately made" to the senators "to bring about charges in the senat" against Roesner and "to have him expelled from the senate to get re venge for the introduction of me measure. - Resigns Post Members of the senate have never disclosed what occurred at the closed session. The next day Roesner resigned "with regret," writing Senate President Paul Keefe he was quitting "owing to the necessity of giving my immediate personal attention to my business affairs and conditions that require my personal attention." FRANCO POINTS TO SPANISH STRENGTH CORDOBA, Spain, April 21. (JP) Generalissimo Franco gave an indirect warning to foreign powers today that his army of 1,000,000 men merely was an indication of Spain's power. "Our million men to Europe I of the German people. Former Governor Philip LaFollette of Wisconsin and D. Robert Yarnall, Philadelphia manufacturer, gave sober-faced accounts of "persecution of non-Aryans" which they attributed to the dread "Gestapo," German secret police. Refugee Bill LaFollette, just returned from Europe, and Yarnall, who served on a quaker relief mission to Germany last Decembsr, appeared before a joint committee studying legislative proposals which would permit 20,000 German refugee children to enter the United States in the next two years. The two witnesses agreed that published accounts of anti-Semitic and other outbreaks in Germany had been "understated," rather than exaggerated -It would be a great mistake . to call this just a Jewish problem or just a Catholic problem," LaFol lette told the committee. "November 10 (first day,of last fall's anti-Semitic disorders in Germany) produced a lasting and terrible effect on the population, not only because of open brutality but because the youth of the country was used primarily in carrying out these acts. Opposition Seen "If you could have a secret, free anj untrammeled vote in Germany, probably 75 per centof the people would be against tne present regime." Narrating tale after tale of the destruction of Jewish propsrty an Jewish synagogues, the imprisonment of Jews and others who ha'd incurred the wrath of the Nazi government and the expropriation of property, Yarnall said "fear of the Gestapo and the concentration camp "hung hourly over the heads of hundreds of thousands. "The German people are with the regime officially," Yarnall said, "even to the point of a Jew-free Germany, but I am convinced the rank and file are horrified at the extremities to which the govern ment went on November 10, 11 and 12." No Cause Seen Yarnall said there was "absolutely no reason" to the operation of Gestapo against Jewish families "They are utterly merciless," he added. The Rev. Dr. Maurice Sheey, head of the department of religious education at Catholic university, urg ed enactment of the legislation, contending that its defeat would be interpreted by Nazis as a "friendly gesture to Mr. Hitler" and as an indication of "indiffer ence" to persecution j