Nazi Court Action Reveals Plan to Evade Possible Libel Suits

A craftily plotted scheme designed to permit the League of Friends of New Germany to libel whomsoever it chose in the Deutscher Beobachter and yet keep its own skirts clear of legal responsibility, was revealed yesterday in affidavits filed with Supreme Court Justice Louis A. Valente by Dr. Hubert Schnuch and several of his henchmen.

The affidavits, which constitute a phase in injunction procedings under which Schnuch is seeking to regain possession of the Beobachter, captured from him by Anton Haegele in a rebel Nazi putsch, also brought to light the unhappy financial plight of Katharina Heiler, stenographer in the Hitlerite organization’s national headquarters at 205 East Eighty-fifth street.

Miss Heiler, according to her own sworn statement, lent $600, which comprised her life savings, to the group which founded the Beobachter to replace the Deutsche Zeitung when the latter newspaper was virtually driven out of business by a successful criminal libel suit brought by former Magistrate Joseph Goldstein.

When she advanced the money, Miss Heiler asserted, she was un-

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