The Miami News from Miami, Florida • 1

li Wczihr Partly cioutyicmghl end Friday Me change in temperature. Air icmpxralSLTc, 2 77. Carets S. Ktzihcr details on page 7-A. r- jUAMI'S OWN HORIE EDITION iIhirligig A il Al i f) I ews Behind The News VOU XLVI.

NO. 123. FIVE CENTS MIAMI, THURSDAY, APRIL 17, 1941 THREE SECTIONS it 7 77 7n Mavoc iiwiy tmr" Vi 3V2 Millions On London; Nazis 4 I 4 If In New Morgenthau Warns Every Revenue Source To Be Used WILL SEEK -1 HOME WASHINGTON, April 17. IV) Secretary Morgenthau announced Thursday that the administration and both Democratic and Republican congressional leaders had agreed to ask $3,500,000,000 in new taxes to be raised in the next Schenck and, Attorney Harold H. Corbin.

IP Wirephoto. Scheiick Found Guilty; Faces 10-Year Teim U. S. Tax Case Jury Passes Up Claim Rent Of Actresses Was Deductible A (UP) Joseph M. Schenck, the ieaeral income tax violations.

He is liable to a maximum' Sen tence of 10 years imprisonment and a $20,000 fine. The poor Russian immigrant boy of 48 years ago, whose first job was in a drug store In New York's Chinatown and w-hose first business venture was a beer con cession the end of a Manhattan trolley line, was found guilty of having evaded more than $250,000 in taxes for 1935 and 1936. A jury, reporting after 22 hours' deliberation, found him guilty of two of the four He was acquitted of evasions in 1937 and of a charge of conspiracy to evade taxes. A co-defendant, Joseph H. Moskowitz, described as a "$1,000 a week bookkeeper" for the Twentieth Century-Fox Film of which Schenck is chairman of the board, was found guilty of complicity in the 1936 evasion and was acquitted on the other counts.

They will be sentenced April 24 by Judge Grover C. (no relation to the defendant) Moscowitz. Another indictment, still outstanding, contains 10 'counts of perjury and charges Schenck with having made false statements to a federal agent v.ho questioned him about' an alleged payment of $100,000 to Willie Biof Western representative of the International Alliance Of Theatrical Stage Employes and Moving Picture Operators (A. F. D.

Bioff, who recently completed an old sentence for pandering in Chicago, was charged with having failed to pay taxes on $100,000 allegedly given him by Schenck. Ruth Nolander, Schenck's former secretary, testified she saw Schenck count out $100,000 in $500 and $1,000 bills in his office in Bioff's presence, one day in June, 1937. Schenck, Moskowitz and about Tur to PB 4-A SCHENCK) NEW YORK, ApriM7i movie executive, who contended that the costs of operating his $1,000,000 yacht, maintaining actresses in lavish apart ments and buying his mends lunches were necessary business expenses," was found guilty early Thursday of flAB BENEFIT A famous jpean ln producer has rep-prtVJvft in thi country ifsrcftlng for the best location for rowing grapes, with the view ml moving from that war-torn land, and 'hiJ It de? tied to place the main office yer York, one of theprin-t pd headquarters would be in y.tml Whirligig ii not at tiie moment to lay what tonctnt is involved, but it ia of the largest on the Euro-ftta continent DISMAYED City officiala undiimayed over the appar-int rropect of having to raise 450,000 for dredging operations the proposed Virginia Key Urbor project. Such a task be impossible, but on the ether hand they are considerably p'ttvd over the situation. With-fil jsssure from the city house jiv i arid harbors committee gtin nas approved the $3,250,000 part project and would allocate jMC.OOO for federal participation.

To city officials this means that the government makes admission the need for the Virginia Key port for the second time in two jttr. It first was killed as an spproved project by presidential vtto, because at that time it was tot considered urgent in the national defense scheme. But re-wntly army, navy and engineering big-wigs have been in Miami, Impeding the site, which gives ncouragement that the government is about ready to put up HI the necessary money. SLOTS GO NORTH Some of the boys who handle the slot machines in these parts, quite slew of them, in fact, are reported to Whirly heading for Pittsburgh, where, it ia said, more than 5.000 will be installed within the next few weeks. The Itory is that with the steel mills in Pittsburgh operating at better than 105 per cent capacity, ind things a-booming, the town to be wide open.

What will happen when the local boys of the Steel City area hear of the invasion remains to be seen. rOUTICAL EXPEDIENCY Suspicions frequently are aimed it candidates whose actions smack of use of official position to foster their personal political ends, but Commissioner Gardner frankly admits such practices. One of his colleagues offered a ration to grant $500 to a high liho band, to help defray ex- jttv on a trip to a national romtiuon. "Will you second tiisj, JUr. Gardner? he was sked.

"What's it about he countered. Being advised, he quickly seconded the motion with remark, 'Sure, I'm running for ffice, fast." LICENSE BY PERJURY Ju- tfnile authorities are apparently en the war path against parents ho have obtained driver's license! for their under-age by misrepresenting their In their first such case, brought up before the juvenile Judge recently, the parents were assessed court costs. officers hint that they may perjury charges in aggraded cases. They point out that ttt parents must take oath to tt child's age before obtaining I f.ate driver's license. BACK YARD SAFARI A city Jrtson guard is considerably perturbed over the prospect of fac-frf.

a possible suit because jie lled a cat in his back yard He was being annoyed nightly yowling, and think-kl it to be some alley cat which disturbing his peace, he wded up the old shotgun, 'sfd the offending kitty and J-1 it Then he found he must wt made a mistake because the he shot was a neighbor's ex-ptcjivt Persian. JILE OF WORK An appeal the Highway Construction Co. Ohio in an old case against I Vv Miami over boom-t eet Paving soon will be Ns Sidney S. Hoehl. as-wnt city attorney, is swamped work in preparation.

One most voluminous cases his has handled, Hbehl last week merely check- the federal court file on the -5" to make sure all papers been included which the c7 wants for the appeal case. CHARCOAL WORRIES If planning an outdoor din-cf charcoal-broiled steaks, greatest worry is not the j4. for they're still available. tnef will come when you try iind the charcoal. There are places in town still servic-f customers, but the defense P5rm taken most of 'it, these day.

of chemical chrcoat, believe it or 7 a major part. Ai ISMXT-Miami Beach fcel. life Kuards and fire- are in earnest in their de-mtion to have a six-day tt 1k the ear round, rath-fc0rt? iut trough the summer con tern plated by the fft council And the issue may exceedingly warm as the cmPan June 5. tX ily- the 'iremen resent MPrt of tbe ssion Wednes-1 "separate arrange-fc, be forthcoming for W. firemen emphatically -Uy week, too.

HIGHER MORALE NEEDED FOR DEFENSE-F. D. R. Complacency Is A Luxury U. S.

Must Stop, He Warns WASHINGTON, April 17. (UP) President Roosevelt said Thurs day that strengthening of the nation's morale is imperative "if national defense is to be an all-out effort." In a special message read at the Opening session of a conference on defense morale, attended by 500 community leaders. Mr. Roosevelt said that "certainly in times like the present complacency ia a lux ury which we must cast aside. "Every community in the coun try has an obligation to scrutinize its services, its facilities for meeting the spiritual, recreational and welfare needs of its own people, his message said.

"Together, the citizen and community have an ob ligation to maintain the wholesome, constructive activities and services which we think of as typically American. "If national defense is to be an all-out effort, the preservation- yes, and the strengtheningof spiritual and social values is im perative." The conference was called: by Federal Security Administrator Paul V. McNutt, Secretary of War Henry I Stimson and Secretary of Navy Frank Knox with the ap proval of Mr. Roost velt. It will be asked to join in a nation-wide movement -to mobilize civilian efforts in behalf of the government's program to build up morale in the Army, Navy and defense Industries.

The program was developed, in co-operation with defense leaders, by the United Service Organizations for National defense, which comprises the Y. M. C. the National Catholic Community Service, the Salvation Army, the U. W.

C. A- and the Jewish Welfare Board and the National Travelers Aid association. Gay da Warns U.S. Should Appease Axis ROME, April 17. Vir-ginio Gayda, authoritative Fascist journalist, Thursday advised the United States to appease the Axis before England goes down to what he described as "more than certain" defeat.

If America persists in her present course in aiding England, the editor in Gior-nale d'ltalia, her action "may be guilty -evidence of a hostile fol-Icy which in the end will turn back upon the country." M. Greek BRITISH FLEET BLASTS AXIS LINES IN AFRICA 3 Italian Destroyers, 5 Transport Ships Sent To Bottom LONDON, April 17. (JP) The admiralty announced Thursday "an extremely successful naval bombardment of Port Capuzso in the Bardia area" of Libya in which many salvoes were seen to burst on' a concentration of about 100 Axis tanks and other vehicles. This announcement clarified re ports from Cairo indicating the fort, which lies in Libya not far from the Egyptian frontier, had changed haods several times and possibly was being held by the British. Striking hard on the North African front 800 miles west an other blockading squadron sought to choke off the vital supply line between Sicily and Tripoli.

The Admiralty announced last night the blockading squadron bad "intercepted and annihilated" an entire convoy of three Italian de stroyers and five cargo ships carrying mechanized equipment, munitions and possibly troops across the 90-mile stretch of water. Other warships, cruising off the coast near the Egyptian-Libyan frontier, were credited Wednesday with "constantly and successfully" bombarding German and Italian troops locked in bitter fighting with Imperial forces at Salum, Fort Capuzzo and Tobruk. Great emphasis was placed Thursday on the reported success of the convoy raiders off Sicily. Two of the ships announced as destroyed were vessels laden with motorized equipment, the Admiralty said; two others of 3,000 tons, "probably transports," were blown up; and the fifth, a ammunition carrier, "blew up with a terrific explosion." The Italian destroyer escort was said to have Included the Luca Tarico, and two smaller destroyers not mentioned by name. During the action which occurred Tuesday night, the British destroyer Mohawk was sunk by Turm to Page t-A CONVOT) Lord Stamp, Wife Among Nazi Victims LONDON.

April 17. CD-Lord and Lady Stamp were killed "by enemy action during the night as London underwent its. worst air raid of the war, it was reported Thursday. was" 'eared that W. Carlyle Stamp, Lord Stamp's eldest son and heir, and three or four members of the house staff, also were killed.

Lord Stamp was the government's economic adviser as head of a committee co-ordinating the work of several ministries. 'Lord Stamp, widely known economist, was raised to the peerage as the first Baron Stamp in 1938. He would have been 61 years old on June 2L 'Lord Stamp was well known in the United States. He held honorary degrees from Harvard, Columbia, California, Northwestern, Johns Hopkins, Southwestern, Syracuse, Duke and Washington and Lee Universities. bombs burst somewhere beyond the line of rooftops.

From inside the glare came a few great flashes. The bombers were dropping high explosives. The raid was still far across town. The first close hit caused the house to heave. The glass of a transom in the hallway fell close.

A table was blown over and a window or two went out in each room. The paper in my typewriter was riDDed in half and a cloud of choking dust blew in the window. I put on my tin hat and went out. It felt very tight and heavy after four months of wearing felt. There had been a second hit nearby.

The back walls of some apartments in the block had been blown in by the blast. In a street of little houses a bomb fell and (Tin to Fac -A BEATTIE) 1 Line R. A. F. Again Assaults Foe's Bases FOLKESTONE.

Enirland. April 17. (P) Heavy explosions on the German-occupied side of the English channel which reverberated through the mist to the Dover coast indicated Thursday that the K. A. F.

had renewed its assaults on German objectives. LONDON, April Hundreds of Nazi planes roared continuously over Lon don for eight hours Wednesday night and eary Thursday to drop uncounted tons or hign explosives and fire bombs in tha heaviest raid of the war. Morgues were crowded and hospitals were jammed. There were blocks on blocks of smouldering wreckage. No one had any accurate idea of the number of dead or wounded or of the vast amount of property BERLIN, April 17.

(FP) Authorized German sources said German speedboats Thursday sank four British merchantmen, totalling 13,000 tons, off the southeast coast of England. Another source said two light German planes sank a British merchant vessel Thursday morning about 20 miles northeast of the Thames estuary. damage in the already battered capital, but there -were no doubts of the intensity of the attack. Thousands of explosive and fire bombs fell. Observers compared it to the fierce raid on Coventry and said it was worse than anything seen in London during the height of the Nazi assaults last autumn.

Among the dead were Lord Stamp, the government's economic adviser, and his wife. His body was recovered, but searchers were still burrowing in debris for Lady Stamp's. Death struck air raid service men in all parts of the city. Members of a rescue squad were killed by a bomb which exploded, directly in front of their truck as they sped to the scene of a previous blast Firemen high on a ladder pouring water into a blazing building were killed when a bomb hit the foot of the ladder. Five fire watchers were killed by a hit on a church.

To an observer standing on the roof of a tall west end apartment building it seemed that all London' (Tun to Pace -A LONDO.N) WHERE TO FIND INSIDE FEATURES Amusements Carter Classified Pages Clapper Comics Crossword Puzzle Editorials Fishing Guide Food Pages 1, 3, Kilgallen Mallon Markets Mergen Cartoon Miami Story Pert in ax Radio Serial Story Society Guy Butler's Topics Sports Pages Travel Time Table Trends of the Times Weather Woman's Pages Wirephotoa 12, 13-A 15-A 3, 6, 7-B 4.5-A 4-C 4-C 14-A 3-B 6, 7, 8-C 12-A 14-A 4, 5-B 14- A 15- A 14-A 6- 7-C 8, 9-A 2- 2, 3-B 3- 14-A 7-A 6, 7-C 10-A DESIRABLE HOMES TO SHOW MARKED ENHANCEMENT That we are approaching a period 1 ef high construction costs, high rental values, -higher interest rates is the opinion of many eminent authorities. It is inevitable, therefore, that the value of desirable residences will rise above present levels. In the light of this probability, it would seem most prudent that renters now seriously consider the wisdom of buying a home. Miami's best home values may be discovered by watching the Miami Daily News Classified Real Estate ads daily. Twees year.

He told reporters after confer ring with leaders President Roosevelt had approved the pro gram and would, at an early date, discuss the move with the American No details of how the money would be raised were disclosed, but the treasury secretary indicated the government would tap every possible means of raising a dollar. Despite former policies of the administration, he indicated that such drastic means as a general sales tax, payroll taxes and other heavy money-raising ideas were under consideration. For the first time in treasury-congressional tax conferences during this administration, Republican leaders, as well as Democratic, were called in. "We reached this figure," Morgenthau said, "on the basis that we ought to raise at least two-thirds of our expenditures by taxation and one-third by borrowing. "We figure expenditures in the coming fiscal year, beginning July 1, will be about $19,000,000,000.

Two-thirds of that is $12,667,000,000. We figure that existing taxes, after adding $1,000,000,000 to previous estimates on account of better business, will bring us leaving us $3,444,000,000 short Tora to Page M-A TAXES) DIXIE OPERATORS' StIUB COAL PACT Removal Of 40-Cent Differential With North Rejected NEW YORK, Apra 17 () John L. Lewis, president of the I'nitpd Sline Workers of America (C. Thursday, announced that the onion was willing to re Bume wage negotiations with southern bituminous coal operators in ah effort to reach an industry-wide accord and reopen the nation's paralyzed soft coal mines. WASHINGTON, April 17.

(JP) Operators of Southern soft coal mines stood pat Thursday in their refusal to sign a new contract with the I. O. United Mine Workers which would eliminate a 40-cent differential in the daily pay of Northern and Southern miners. Northern operators reportedly were ready to accept the union's terms calling for a flat $7-a-day wage throughout eight Appalachian states. This would grant an increase of $1.40 in the South and $1 in Northern states.

The Southern mine owners, who withdrew recently from the contract negotiations under way in New York, charged the Northerners assent to the union's terms represented a "deliberate frame-up" to "impose the contract on Some said they could not stay in business if the differential were eliminated. John R. Steelman, chief federal conciliator, showed plainly that he hoped the Southern operators would work out their differences with the union promptly, but he also indicated that, if no such agreement were forthcoming. Northern operators would sign a separate contract. The.

mines have been closed Tura to Page 4-A STRIKES) be that free speech and a free press are still in the possession of the people of the United States. "Free speech is in undisputed possession of publishers and editors, cf reporters and Washington correspondents; still in the possession of magazines, of motion pictures and of radio; still in possession of all the means of intelligence, comment and criticism. So far as I am concerned, it will re- (In to Pace -A CEK)RHir) Eaitieir Deep Wedge Driven In Defenses ATHENS, Greece, April 17 IIP) Waves of German Stukas hammered with the power of long-range artillery at the Greek-British moun tain line in northern Greece Thursday as the Nazis advanced in a critical battle toward Kalabaka, gateway to the lowlands of Thes- saly. The Germans also were pounding at the eastern entrance to Metsovo Pass, which leads westward through the mountains by a backdoor route to loannina, of Epirus, from which the Italians were turned in their first attacks last November. I A London communique said the German pressure was increasing all along the British front.

The Germans alreadv were some 70 miles deep in northern Greece, and were driving toward Kalabaka in the center, in an effort to reach the important railway center of Larisa to the southeast, and to flank the British out of their Mount Olympus positions on the Gulf of Salonika. Allied artillery and machine-guns, thickly studding the steep slopes, threw murderous fire into German infantry and tanks, which surged forward beneath the waves of Stukas. German casualties were declared to be severe. Greek newspapers reported that the bayonet-skilled Greeks were able to check the Germans in any hand-to-hand combat that de veloped in the war of machines. For the first time in a week Athens had 24 hours without an air raid alarm as the Nazis brought all their air power to bear on the battle zone.

The Nazis were reported hurling one mechanized column at the cen ter of the allied line and another at the right flank based on the slopes of fabled Mt. Olympus. The Greeks acknowledged that the first column had entered the upper valley -of the Aliakmon (Turn to Pass 4-A BALKANS NIGHT CLUB MEN ARRESTED BY U. S. Two Beach Residents To Face Charge Of Harboring Buckhalter Charged with having harbored Louis Buckhalter, alias Louis Lep-ke, former famed federal fugitive and now serving time In a federal pen for various New York shakedown rackets, two Miami Beacli men interested in night clubs here were held undper $25,000 bond each following a hearing Thursday before U.

S. Commissioner Roger EJ. Davis. The men, Morris Wolens, 40, of 3428 Prairie ave and Benjamin Kutlow, 36, of 4130 Royal Palm ave, were picked up by FBI agents here on instructions from New York. They had been indicted by a federal grand jury Wednesday on charegs of harboring a fugitive.

The two men, through their attorney, Leon Stoller, pleaded to have the bonds set at $10,000 each, but Commisioner Davis and the FBI men pointed out the $25,000 bonds were requested by New York authorities. Davis, who said he would reduce the bonds if they could get approval of the New York authorities, set a final hearing at 10 a. m. Monday, in case the men are successful. attention because the Germans recently had been giving London only a casual going over.

The anti-aircraft fire died down. Occasionally there a burst of machine gan fire, or searchlight beams wove a plaid across the stars. Now and again ground bat-terries burst into a spasm aad splashed the sky with bright yellow. Then a big siower of incendiary Weailier Ed Can't Forget i I His Old Job Like a fire horse at the sound of the gong, the weather ed was snooping around the city desk this morning checking on; the weather. Despite his- promotion, he Pxsriy- Cloudy moped around the desk waiting for the weather report to arrive.

When he learned that Weatherman Ernest Carson's prediction was partly cloudy for tonight and Friday, he went away smugly, mumbling something about the chickens on his South Miami farm getting too much sun anyway. Indiana Auto Collision Kills 5 Young Persons NEWCASTLE, April 17. (3) Five young persons were killed Wednesday night in an automobile-truck collision near here on state highway 38. They -were Marjorie Allen, 19; Mary Brown, 23; Robert Johnson, 20, and Irene Troth, 23, all of Hogerstown, and Wilbur Williams, 22. of Tipton.

State police said their automobile hit the back end of a truck ascending a grade. Weather Elsewhere City Temp. 8 a. m. Albany 53 Condition Rainy Partly Cloudy Partly Cloudy Cloudy Partly Cloudy Cloudy Cloudy Cloudy Asheville 54 Atlanta 63 Boston 49 Buffalo 50 Chicago 46 Cincinnati 1 Detroit 45 Indianapolis 56 Partly Cloudy Kansas City 61 Los Angeles 51 Memphis 65 Minneapolis 51 Nashville 64 New York 56 Oklahoma City 66 Philadelphia 58 Cloudy Clear Cloudy -Raining Cloudy Raining Cloudy Clear Pittsburgh 60 Partly Cloudy San Franciso 46 Clear Blast Rips Paper From Typewriter As Reporter Tells Of Bomb Attack U.

S. Won't Control Press. Roosevelt Tells Editors Freedom Of Speech Properly Belongs With People, Conference Assured WASHINGTON, April 17. iP) President Roosevelt told the nation's editors Thursday that, as far as he was concerned, "there will be no government control of news unless it be of vital military information." In a letter to the American Society of Newspaper Writer Returns To London Just In Time For 'Worst Nazi Raid 1 By EDWARD W. BE ATT IE, JR.

LONDON, April 17. (UP) If you throw a door mat on top of a fire bomb, stamp on it and leave it there for five minutes, the chances are the bomb will burn out. In the thick clouds of dust, smoke and cordite fumes last night, the men and women in my district were fighting Editors, read to the organizations 19th annual convention by Tom Wallace, president, the chief executive declared free speech was in "undisputed possession" of the press, magazines, motion pictures and the radio and, so far as he was concerned, "it will remain there for that is where it belorgs." Mr. Roosevelt's letter follows: "The assurance I would bring to the American Society of Newspa-uer Editors if it were possible for me to greet them In person, would incendiary bombs with buckets of sand, brooms and, finally, with their door mats. The bombs were coming down in the streets and on roofs, turning the blackout into an inferno of white hot magnesium light.

Four months ago I left London, after going through all the big raids, for a vacation in the United States. I returned Wednesday night. As I was unpacking the sirens shrieked. Nobody paid much.