News Brief

The German Embassy at Washington and the German consulate in New York City were definitely identified today as sources of funds for the financing of Nazi anti-Semitic propaganda in this country as the Congressional committee investigating subversive propaganda activities here opened its public hearings with a dramatic and powerful attack on German diplomatic representatives in the United States.

A second surprise came with the admission by Carl Byoir, publicity man previously identified with the Machado regime in Cuba, that the Byoir concern receives $6,000 a month for publicity for the German Tourist Information Office, the German railroads and steamships, the German Board of Trade and the Leipzig Trade Fair.

“PRIEST” ADMITS PAYMENT

Of this amount $1,000 monthly is paid George Sylvester Viereck, chief Hitler apologist in this country, Dickey admitted. Viereck also receives a commission of $750 monthly for bringing the firm German business.

Under a bombardment of questions flung by all members of the committee and Thomas W. Hardwick, its counsel, the Rev. Francis Gross, of Perth Amboy, N. J., who is now free on bail under a criminal libel indictment, admitted that publication of a scurrilous ninety-two page booklet called, “Justice to Hungary, Germany, Austria,” was supported with funds coming through the German Embassy at Washington and the consulate in New York City.

Gross, who described himself as a non-practicing, Hungarian priest, testified that a private check to an embassy envelope came as a result of his appeals for financial aid in publishing the book. He also admitted that six fifth-dollar bills had been given by “an unknown friend” through the consulate in New York.

SUBMITTED BOOK TO CONSULATE

Gross startled the fifty auditors who barely filled the first three rows in the huge House caucus room where the hearings are being held by declaring are being held by declaring that he had submitted the book to Otto Kiep, then German Consul General. He received Keip’s favorable comment, he testified, and $300 “three from an unknown friend” in August, 1933.

Gross admitted having asked for $2,000 from the embassy, which referred the matter to the consulate, when the $300 came. The entire affair came to light through the testimony of John Bado, of Hoboken, N. J., printer, who charged payment of only $175 of the $535 charge for the printing of 5,000 copies of the book and 5,000 copies more of a 32-page supplement denouncing the Jews, particularly those holding public offices. The balance is still unpaid, Bado testified, and Gross corroborated this statement.

PRINTER VERIFIES NEGOTIATIONS

Bado declared that Gross continually wrote to the embassy and consulate for funds, meanwhile stalling off payment with promises that “those people” would eventually come through. The printer testified that he had verified Gross’s negotiations with the consulate by calling a consular official named Mueller in Gross’s presence.

A number of calls from Bado to Mueller, who is now believed attached to the embassy here, were made according, to the evidence of telephone company records. Mueller, Bado said, corroborated statements of Gross that the consulate was prepared to give, $400, part of which was to go to payment of the printing bill.

Gross, when he learned that only $400 was to be forthcoming, went on a rampage, Bado said, and declared he was going to send a threatening letter to Ambassador Hans Luther, but was persuaded to modify its tone.

INDICTED FOR CRIMINAL LIBEL

Gross’s pique was reflected in a letter admittedly written by Gross to Bado after he had been indicted for criminally libeling Samuel Untermyer, anti-Nazi boycott leader.

The letter offered a settlement of the printing bill, which involved transfer of the copyright to Untermyer in exchange for a noble pressing of the indictment and was urged upon Bado because of “documents and correspondence in my possession by which the proof is established that in publishing my books, Ambassador Dr. Luther was the sponsor, financial backer and promoter of my books.”

THE LETTER

The letter follows in full:

“Prompted by a desire to have payment made for your printing bill I make the following offer:

“For the sum of $1,000 (out of which your bill will be paid) I will turn over to you all the books and booklets (retaining for my own use two copies) not sold for a noble prosse of Mr. Untermyer’s libel charge I will transfer to him my copyright. Concerning documents-correspondence in my possession by which the proof is established that in publishing my books Ambassador Dr. Luther was the sponsor, financial backer and promoter of my books-permit me to state if these documents would be used in a further discussion, repercussions and sensation in the American and world press might even cause the recall of Dr. Luther-and the friendly relationship between our country and Germany might become clouded for a long while Overcome I myself will be in a storm center in which I might not be strong enough to overcome antagonism from opposing factions.

“I think that we all shall honestly work to keep the fire of passions already flaming under ashes and try to bring once more harmony into the disturbed relationship between our Jewish element and the present Germany, although I feel that I was not only used but more abused by the German embassy at Washington, which I have been used to fight Germany’s battle and have been thrown overboard by the German embassy when the fight became heated. “I do not want that Germany shall suffer for the blunder of its ambassador in Washington so I hope that you agree with me that the less it will be discussed in this matter the better it is for all concerned. I write this strictly confidential and I hope that you see the wisdom of my points.

Thankfully Yours, F. Gross.”

PAID VIERECK’S EXPENSES

Dickey, who testified at the second session this afternoon, revealed that the Byoir concern receives payments of $6,000 monthly under a contract signed October 1, 1933.

He asserted that he had known Viereck for ten years and was familiar with his war-time reputation as a propagandist. He admitted his firm also pays Viereck’s rent, lighting, and stenographer and said he had shared an office with him until May 1.

He described Viereck’s duties as furnishing advice on Germany and the publication of a semi-monthly economic bulletin sponsored by the Committee for Better Trade with Germany.

BULLETIN WIDELY DISTRIBUTED

Dickey, who is an associated in journalism at the Columbia School of Journalism, revealed that Fred Hamlin, a Berlin correspondent, receives a salary of $90 weekly and expenses of about $1,000 monthly. the bulletin issued is sent to newspapers throughout the country.

Under examination by former Senator Hardwick, who questioned him about the many article on Reich foreign debts appearing in the bulletin, Dickey admitted meeting Ernst Hanfstaengel, Hitler intimate, in Berlin last August but said “we talked only about beer.” He said Byoir is now in Europe but not in Germany.

Representative McCormack, chairman of the inquiry committee, in opening the public hearings, declared that “any organized propaganda that seeks to teach the American people that other government systems, either Communistic or Fascistic are preferable to our own, is dangerous to a degree. Any efforts to organize our citizens or residents of the United States into a group or bloc along racial lines are organized efforts to implant distrust in the minds of our people.”

GROSS DENISE INCITEMENT

His examination of witnesses was along the same line and he closely questioned Gross to learn if his book was not an emotional appeal to incite Americans against Americans and particularly, the mass of people against the Jews. This Gross weakly denied.

Congressman Dickstein, quoting from the book, asked Gross what he meant by fighting Germany’s battles when he is an American citizen. Gross flared up and declared:

“Because Jews like Dickstein and Untermyer are fighting against Germany, I think it proper to write along these lines!”

Samuel Untermyer, head of the Non-Sectarian Anti-Nazi League in Defense of Human Rights, late yesterday predicted that the McCormack committee would uncover “Sensational evidence” before the hearings are over. Mr. Untermyer declared he had furnished the committee with a mass of material which would astound the people of the United States.

Dr. Luther refused to comment for publication on the evidence of the Rev. Francis Gross.