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Counsel’s Arguments Hamper Trial of Pelley for Stock Fraud

The trial of William Dudley Pelley, chief of the anti-Semitic Silver Shirt organization, and his associates, Robert C. Summerville, H. M. Hardwicke and Don Kellogg, today moved slowly through its third day.

The anti-Semite and his henchmen are charged with violation of the North Carolina capital issues law. The trial is being held in Buncombe County Superior Court before Judge Wilson Warlick of Newton. The specific accusation is that the four sold allegedly worthless stock in the Galahad Press, publishers of Liberation, a magazine.

LAWYERS DISPUTE STATEMENT

Progress was hampered today by lengthy disputation between rival counsels prompted by the phrase “the present rate of prosperity,” which appeared in a financial statement of the Galahad Press. The statement was printed in two issues of Liberation, a virulently anti-Jewish publication.

Although the March and April issues of the magazine in which the statement appeared were published in April and June, Judge Warlick held that the word “pres-

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