Says U.S. Nazis Run Reich Racket

Friends because of corruption and graft in the organization, summarized his testimony before Mr. Dickstein.

He testified how money sent to the United States from the German Ministry of Propaganda was misappropriated by Nazi leaders here. He charged that Nazi leaders made trips to Germany with expenses paid by the German government and then handed in large expense accounts to the Friends on their return.

SAYS REICH SENT $100,000

Kruppa declared that over $100,000 sent here from Germany was used to found the Friends of New Germany and the newspaper Das Neue Deutschland.

The newspaper, he said, was later sold to the D-Z Publishing Company for $1 and the name changed to the Deutsche Zeitung. Kruppa cited this as an example of corruption.

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