Indianapolis Times, Volume 35, Number 59, Indianapolis, Marion County, 20 July 1923 — Page 1

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VOLUME 35 —-NUMBER 59

COUCH IS HELD ON CHARGE OF TAKING MONEY

Former Custodian of Statehouse Locked Lip by Investigator Claude M^Worley— Says He Was "Too.Much of a Good Fellow,” TAKEN TO CITY PRISON UNDER BOND OF $5,000

Charged With Embezzling $9,771,48 While in Office From Which He Was Ousted Several Weeks Ago —Alleged Defalcation Covers Two Years, Roy M. Couch, 35, 4465 Guilford Ave., former custodian of i Statehouse today was arrested on a warrant charging embezzlement of State funds by Claude M. Worley, special investigator for Prosecutor Evans. Couch was arrested at his home and locked up in city'prison. His bond is $5,000.

Couch Is charged with a shortage of $9.771.48 in the custodian’s office. He was discharged by the State several weeks ago. A bonding company made good the shortage Thursday. “I have no statement to make at i this time in regard to the charges against me,” said Couch. “However, I do wish to say that I guess I was too much of a good fallow with the .people who did not make good with Ime. I wish to say—that The Indianapolis Times is one paper that has treated me fairly in the present situation. My arrest today was unexpected, and therefore I did not have my bondsman ready, —friends from Sheridan have been notifd and will sign my bond. I do not ihow who signed the warrant and did jfcot see the warrant. Mr. Worley called at my home and showed me his badge and told me he was there for me. We got Into his auto and rode to police headquarters. My attorney in this case will be Ralph Spann. “I am making arrangements to re? imburse my bonding company for what it paid the State.” The affidavit against Couch charges him with embezzlement of $177 of State funds, constituting one of the Items in the report of the State board of accounts upon his alleged total Presocutor Evans signed Wm* affidavit. B .Worley said the Marion County grand Jury is investigating the case. He went to Couch's home. Prosecutor Evans said that U. S. Lesh, State attorney general, would be represented In the prosecution. The State board of accounts report charges that Couch’s shortages cover the period of two years he was In office. EVANSVILLE PROPERTY BOUGHT BY RAILROAD G. & E. I. Plans Enlargement of Freight Yards. B|r United Pres* EVANSVILLE, Ind., July 20, Property worth $1,500,000, which will be used to enlarge terminal facilities, has been purchased by the Chicago & Eastern Illinois railroad, officials of the line announced today. Inmate Missing Frank Pazur, 22. of Vermilion County is missing from the Central Hospital for the Insane. Police were told Pazur Is four feet ten Inches In height and weighs 130 pounds. He wore a blue serge suit, brown cap and tan shoes.

TWO FLIERS KILLED ► AT RANTOUL FIELD Lieutenants Kinney and McNab Die as Plane Falls Coming Out of Tail Spin,

By United Press RANTOUL, 111., July 20.—Lieut. Edward Kinney, Chicago, and Lieut. Harold McNfb, Decatur, 111., were killed at Rantoul flying field today in an airplane fall. The plane came out of a tail spin several thousand feet above the field when observers noticed it went into HOURLY TEMPERATURE 6 a. m 72 10 a. m 87 7 a. 77 11 a. m 88 8 a. m 80 12 (noon) 87 9 a. m 84 1 p. m 90

‘Municipal Guardianship' of Utilities Is Proposed to Safeguard Public

By BOYD M. RALSTON Municipal guardianship of public utilities, a plan whereby consumers would be sole stockholders, was proposed today by Boyd M. Ralston, realtor, Democratic nominee for piayor in the last municipal election, in a letter to John B. secretary of the Chamber of Commerce. The city government would exerefse considerable control over the , Utility, including such matters as transfer of stock. Ralston says.

The Indianapolis Times

PLANS COMPLETE FOR MEETING OF PENNSY VETERANS 8,000 Railroad Men Expected) for Convention Here Saturday, Final preparations were made today for entertainment of 8,000 guesta expected for the outing of the Pennsylvania Railroad Veterans’ Association at the State fairground Saturday. Gen. W. W. Atterbury, vice president of the Pennsy system, and honor guest of the occasion, will arrive at Union Station Saturday at 8 a. m. from Philadelphia. He will be welcomed by 100 local business men and a comittee composed of W. C. Downing,' General Superintendent; R. D. MeKeon, superintendent Indianapolis division; S. Strouse. general chairman committee on arrangements; Thomas Verkins and W. H. Torrence. The ; Indiana Division Pennsylvania Band [ ajso will be at the station. Benjamin McKeen, vice president. Southwestern region, and I. W. Geer, general superintendent, are expected this evening. Twenty special trains are expected Saturday morning from every division in the Southwestern region. STEEL SUBSIDIArIeSASK REOPENING OF CAR CASE I V _______ Want New Ruling on Special Privileges. i By United Press WASHINGTON, July 20.—Eight Important subsidiaries of the United States Steel Corporation today petitioned the Interstate commerce commission to reopen the assigned car case in. which the commission forbade railroads to give special privileges to companies owning private coal cars. 1 U. S. Steamer Goes Ashore By United Press LONDON. July 20.—The United States Shipping Board steamer Menicut went ashore ten miles off Dungenness in a heavy fog today.

a nose dive and shot straight down to earth. A board of officers has begun a formal Investigation to determine the cause of the crash. Both officers were attending the air service reserve officers ‘training corps. Kinney was 26 years old. He is survived by a widow and a child. McNab was 27 years old. Both officers were commissioned during the war and Kinney received his commission at Ellington Field, Houston, Texas'. McNabb was commissioned at Rantoul.

Ralston asks that the plan be put before the Chamber for opinion as to whether "there Is any merit In the idea. Here Is what he says: All over the country at present there Is an unsettled condition existing between utilities and the consuni lng public. Utility commissions have been created and established, but the public refuses to believe the commissions always act In the inierest of the public. The public concedes utilities should earn fair returns on their investments, but It rightly objects to unfair returns. It seems to be a public con-

POLICE HOLD TWO MEN ON CHARGES OP INCITING RIOTS Officers Are Stoned After Fiery Cross Is Burned — Investigation Starts, Carl Ferree, 32, city truck driver, 22 N. Bloomington St., and Watt Wise, 42, street railway employe, 230 N. Miley Ave., today were under arrest on charges of inciting a riot following investigation by detectives the alleged attack on firemen and policemen by a crowd at Miley Ave. and Vermont St. Wednesday evening. The firemen extinguished a burning "fiery cross’’ and the policemen cleared a path for them through the crowd, estimated at 6,000. Three firemen were struck by stones and broken tile and Police Tooley was struck by an old pain! bucket, it is said. Martin Hyland, street commissioner, announced ha had discharged Ferree. Ferree and Wise, both held under $6,000 bonds, deny participation in the alleged attacks. Ferree, a Republican precinct eommiteeman, said he was a half block from the place where the cross was burned ancT' was with his grandmother. Wise said he was on his porch, two blocks from the scene, when the trouble started. He said he went to the placA but took no part. Claude Worley, special Investigator for Prosecutor William P. Evans,%announced he has started a thorough Investigation. Meanwhile, Police Chief Hetman F. Rlkhoff awaited return of Mayor Shank to lay before him a plan for a conference of officials and leading citizens upon the situation growing out of the alleged burning of fiery crosses In violation of a city ordinance upon several occasions. Rlkhoff said he also would discuss with the mayor advisability of stopping the sale of the papers. The Fiery Cross and Tolerance, upon the streets upon the ground that They stirred up racial feeling. N Rlkhoff and Evans were in conference for almost an hour today In the prosecutor’s office. Evans refused to say anything further than that “matters connected with the police department were discussed.” Firemen and policemen extinguished another burning cross at New York Bt. and Sherman drive Thursday evening.

WATER PETITIONS WM BY CITY Protests of 50,000 Citizens Go to Commission Monday, Petitions of Indianapolis citizens against Increased water rates bearing more than 50,000 names will be presented the public service commission Monday, city officials said today. Mayor Shank had 2,000 political workers and city employes circulating them. Approximately 7,500 petition blanks have been distributed ovfer the city. Members of the police and fire departments are under orders to have all petitions returned tonight. On account of the delay In presenting petitions It is expected that another day will be given to obtain additional signatures Mayor Shank has been at Findlay, 0.. attending the races, where his horse is entered. He Is expected to return .oday. He Took His Pick Burglars raised a window screen at 218 W. Thirty-First St., between 10 a. m. and noon today, entered, selected a sl4 traveling bag, stuffed At with $136 worth of clothing and departed, Mrs. E. E. Emmons told police she discovered when she went home.

clusion that the stock of all utilities is what is commonly known as watered stock. The public believe utilities are unfair in valuation statements. It bases Its belief (mostly) on this proposition in two sections: 1. When utilities make sworn returns for taxation the valuation Is lew— ■*. 2. When utilities petition for rates, the valuation is high— This conclusion then seems reasonable, that Is, that when returns are made for taxation purposes such returns are based on dry stock valuation and when petitions are trade for rates that the valuation is bused on Ws>t or watered stock.

INDIANAPOLIS, FRIDAY, JULY 20, 1923

Barrymore Says Wedding to Irene Is Love Match

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"PLEASE DON’T REFER TO OUR MARRIAGE AS A ‘SCREEN MARRIAGE,”’ PLEADED LIONEL BARRYMORE. WHO RECENTLY MARRIED IRENE FENWICK (ABOVE) AT ROME. "THIS IS A LOVE MATCH,” HE ADDED. TO WHICH MISS FENWICK AGREED MOST HEARTILY.

STOKES GIVES UP LIQUOR PERMITS Local Druggist Takes Action Before Hearing—U. S, Will Continue Investigation for More Evidence. Permits to handle alcohol at his drug stores t 607 liumeMansur Bldg, and 226 X. Meridian St., were surrendered Wednesday by Joseph TANARUS, Stokes, Federal Prohibition Director Bert C. Morgan, announced today. Stokes had been scheduled to have a hearing before Morgan today to show cause why the permits

should not he revoked. Federal Prohibition Agents Seth Wcrl and Ted Davenport raided Stokes’ stores two weeks ago and conflsi.tcd alcohol records and sailed the stores of alcohol. According to the agents, the evidence Indicated Stokes had sold synthetic gin to a number of prominent citzens In five-gallon quantities. Morgan said the investigation would be continued and all evidence turned over to Homer Elliott, United States district attorney. PROSECUTOR SHOOTS ALLEGED RUM RUNNER Prohibition Officers Set Trap For Bootlegger. By Times special LAFAYETTE, Ind., July 20.—Carl B. Stierle, 32, was shot by Prosecutor Parks when he was caught by_a clever ruse. Arrangements were made by prohibition officers for delivery of Illicit liquor. At the appointed time, he appeared in a car. A party .including John Lyle, colored officer from the office of U. 8. Lesh. attorney general, Sheriff Joe Jackson and two deputies, lay in ambush. The prosecutor sprang onto the running board of Stierle’s car. Stierle struck him and drew a gun, the men said. Then the prosecutor shot him dead. EDITORS INVITE HARDING G. 0- P. Scribes Want President Here for Winter Gathering. President Harding will be invited to address the winter meeting of the Republican State Editorial Association in Indianapolis the last Friday in January, George Lindsay, Marlon, president of the association, has announced. Lindsay and Clyde A. Walb, State chairman, will go to .Washington when the President returns from his vacation to present the invitation.

These utilities seem to be able to tfonvince the tax commission of the merit of their returns and beg for mercy for lower tax rates. If the utility does not pay its Just proportion of taxes and the people must shoulder the deficit and make It up, and if they aiv allowed an unfair charge on unfair valuations, the people also suffer by having to pay the extortion. What is the remedy? Is it public ownership? No. My reasons for this are: 1. No public will ever be able ot buy out a well established utility at Its fair valuation. 2. Public ownership means po-

ANTI-SALOON HEAD INDICIEDBY JURY Anderson Faces Charges of Grand Larceny and Forgery, By Unit'd f’rrm NEW YORK, July 20.—William H. Anderson, superintendent of the New York State Anti-Saloon League, was indicted today by a grand jury on three counts, two of grand larceny and one of forgery. Anderson, who was In court with former Governor Charles Whiteman, his attorney, pleaded not guilty. The State superintendent, whose case has aroused tremendous controversy in New York State, was' held in |5,000 ball. He was given a week In which to demur. The indictments arose out of charges made by a former employe of the AntiSaloon League charging mlsapproprl atlon of league funds. O. Blrdaall Phillips, the former employe, charged that Anderson had failed to account for certain monies, amounting to nearly $26,000, entrusted to his care. Anderson, who has been State superintendent of the league for many years, charged a conspiracy to ruin him was responsible for the charges. Purse and Watch Stolen Alice McConnely, 431 N. Illinois at., reported to police today that a purse containing S2O and a gold watch was stolen from her at city market Thursday. Youth Leave* Home Police were asked today to search for Samuel Chambers, 13, who left his home, 2624 N. La Salle St., Wednesday. He is dark complexioned, weaing a gray cap and yellow overalls.

UtlcaJ management and political management may prove to be a greater financial graft than we now endure. Moreover political management would give too mudh power to the "party in power.” My remedy la "Municipal Guardianship.” By this I mean the utility shall be owned by the public under municipal guardianship, and not public ownership. As an example of what I mean, let me make this statement of how the plan w<y ild work, using the Telephone Company for such purposes. Suppose it would take to install a telephone ooapany In In-

Entered as Second-class Matter at Postoffice, Indianapolis. Published Daily Except Sunday.

WITNESS SAYS WATER FIRM MAKES PROFIT

HUB MBS Fll II ME * Gtp ■! Fear of Break With France Holds Up Discussion of Draft, v By United Press LONDON, July 20.—The British cabinet even proved unable to agree upon the terms of the reparations note tb be sent Germany, and further consideration was upder way today, while the allies and the late enemy waited. Discussion of the draft of the note and Its covering letter, which was to have been sent ta France, Belgium, Italy and the United States last night. Was resumed at 10 Downing St., where the cabinet met with Premier Baldwin. It is expected the documents will be ready to be handed to representatives of the allies tonight. Two factors are understood to have delayed unanimous -cabinet agreement upon the note which is Britain’s answer to the latest answer to the German, offer and announcement 'of British policy toward the whole question of reparations. Germany is understood to have interposed certain suggestions. The "die hard*.” whose one anxiety Is there will be no break with France, are understood to be bringing pressure to bear upon Premier Baldwin from the opposite quarter. They seek to prevent the premier from criticising France’s Ruhr venture and adopting ( too lenient an attitude toward Germany.

THIRTEEN INJURED WHEN MINE GAGE FALLS AT CLINTON Engineer Loses Control of Lift in Vermilion Coal Shaft, By United Press CLINTON. Ind.. July 20.—Thirteen men were Injured, Several probably fatally, when a mine cage crashed 170 feet to the bottom of the Vermillion coal Company's mine shaft, five miles southwest of this city, today. The men were being taken down to work when the engine which lifts the cage ran away and let the cage drop like a plummet. Twelve of the fourteen Occupants of the cage were rushed to hospitals In Terre Haute, while the other two were able to go to their homes. All of the Injured men were from Clinton and Terre Haute. Tho cage was not damaged by the fall and the cable was unbrokert. The cage was usod to rescue the men from the bottom of the shaft. PARK POLICEMAN HELD Two Men Arrested on Assault and Battery Charges. Walter Manuel, 38, of 1029 Tremont Ave., and Jasper Wilhite, 68, of 1116 S. Belmont Ave., were scheduled to appear In #lty court late today on charges of assault and battery. They were arrested late Thursday by Patrolman Gibbons. Wilhite, who Is a park policeman stationed at Rhodius park, was said to have been attacked by Manuel after Manuel’s son was struck by Wilhite and ordered out of the park. e Youth Leaves Home Robert Harold Sparks, 17, was reported missing from his home, 1419 Herschel St„ this morning. He is described as having a dark complexion, was weaxing a brown suit, light cap and tan shoes. Police have been asked to search.

dianapolis as good or better than we now have. Suppose there are eighty thousand (80,000) phones in use —compel or let each subscriber take 'one share of stock at one hundred dollars ($100) for each phone he uses—eighty thousand (80,000) phones at one hundred dollars ($100) each would be eight million (8,000,000) dollars. Under municipal guardianship no stock can be transferred except by the consent of the city and then only to a user of the phone. If a user of the phone must discontinue the use of phone, the city can take this stock under the guardianship plan and re-issue It,

Income is Not What Company Has Indicated It Considers a Fair Return Upon Its Investment —Last Annual Balance Surplus, $109,303,66, DIVIDENDS OF $474,190 SHOWN TO HAVE BEEN PAID Obligations Since May 31 Increased $1,150,000, Petitioner’s Expert States —Taxes Termed One of Most Important Burdens, The Indianapolis AYater Company is making sufficient profit to pay dividends and to show a surplus, an income Statement submitted by John Jirgal, account At representing the water company in the rate increase hearing before the public service commission, showed today. The statement, however, does not show the company is making what it has indicated to the commission it considers a fair return on its claimed valuation.

The “set up” as presented by the witness covered the year ending May 31. 1923. It showed a net income for the year of $583,493.66, dividends of $474,190 and a balance surplus of $109,303.66. Obligations Increased The company, since May 31 has Increased its obligations $1,150,000, the witness testified. The income account does not Include payment of interst and dividends on this additional obligation. Jirgal testified that as of May 31 the book vajue of the property was $12,489,609.45. This does not include so-called ‘‘going value” claimed by the company. The outstanding obligations at that time, according to the statement, consisted of $6.017,000 of capital stock. $2,339,000 of general mortgage 5 per cent bonds, and $3,731.000 of 4% per cent first and refunding bonds, a total of $12,087,000. Since that time the company has altere Its finances, Jirgal testified, to show the following liabilities: 5 per cent bonds, $4,500,000: per cent bonds, $3,731,000; common stock, $5,000,000; total $13,231,000. All preferred stock has been retired. The witness testified that the company from Jan. 1, 1922 to May 31, 1923 made net additions to Its physical property of $335,432. Taxes Are Big Burden Taxes, the witness testified, are one of the principal burdens of the company. County, State, township and city taxes were given as follows: For 1921, payable In 1922, $240,540.54; for 1922, payable In 1923, $242,448.47, and for 1923, payable in 1924, $271,651.37. If the tax board should value the property on the same basis as it has been valued by the public service commission, the taxes would total $340,904.37, the witness testified. Testimony showed that while the property was valued at $16,500,000 by the commission, the tax board this year valued It for taxes at only $12,085,700. Jirgal testified that local taxes cost the company 1.7 cents for every thousand gallons of water sold and that Federal taxes cost seven-tenths of 1 cent for each thousand gallons, a total of 3.7 cents. Operating expenses add an additional cost. It was testified of 5.2 cents and nine tenths of 1 cent Is charged to deprectiatlon, making a total cost before anything Is taken out to meet other obligations of 9.5 cents a thousand gallons. The company is asking for a maximum rnetered rate of 18 cents a thousand gallons. Flat Rate Sales Lead The testimony showed the annual metered sales total 61,000 gallons, the (Continued on Page 13)

WHEAT DROP WILL NOT AFFECT BREAD Local Bakers Say They Would Lose Money If Prices Were Changed With Flour Fluctuation,

Indianapolis bread prices are not going down in the near future, despite the break In wheat prices, Jocal bakers said today. Stocked up on high priced flour, the bakers said they would lose thousands of dollars annually if they changed prices to follow fluctuations of the wheat market. The Taggart Baking Company, Grocers’ Baking Company and City Bak

when called for by another subscriber. > v The plant shall be operated by a manager at a fixed salary—such manager to be selected in the case of Indianapolis, by the board of public works or by some non-partisan commission. Those who can pay cash for the stock will be glad to do so. Those who cannot, can give pledges or notes, on which they pay an Interest, the rate to be fixed, and if ready money is needed, these notes can be negotiated by the city standing them. This stock can be retired tha same as any other steak- Undep this plan the stoex is transferable

Forecast Generally fair tonight and Saturday. Not much change in temperature.

TWO CENTS

MAOGHAN MAY ATTEMPT ISO DAYLIGHT FLIGHT Secretary Weeks Sees No Objection to Another Sea-to-Sea Trip. By United Pres* WASHINGTON, July 20.—Although army air service headquarters announced this morning that Major General Patrick, chief of the service, had officially called off the dawn to dark flight attempt of Lieutenant Maughan for the rest of this year, it was indicated later the gallant flier might be given another try. Secretary of War Weeks stated he saw no objection to Maughan having another try and that he would confer with General Patrick on this point. Patrick issued orders for Maughan to bring the Curtiss plane back to McCook Field from Rock Springs Wyoming within the next few days. A third attempt, he said, depends largely on the weather. By United Press ROCK SPRINGS. Wyo., July 20. "I'll have a third trial, and make It, if they'll let me.” Lieut. Russel L. Maughan, Army filer, whose second gallant try at spanning the American continent between dawn and darkness ended in heart-breaking failure late yesterday when the airman w a a within a few hours of his goal, awaited orders from Washington. Maughan was forced to land here because of leak In oi,! pipe. INTERURBAN HITS COUPE Man IJes at Point of Death After Crossing Accident. By Times Special HUNTINGTON, Ind., July 20.—Following an automobile accident at Whippoorwill lnterurban crossing, a man believed to be A. J- Schmittner. Y. M. C. A. building. Ft. Wayne, is lying at the point of death. A coupe in which he was riding was struck by a fast west-bound car of the Indiana Service Corporation.

ing Company reported that costs of labor and bread materials other than flour are high and the 8-cent pound loaf will be with us until something besides the wheat market breaks. Bread prices today are approximately the same as three years ago, when flour cost a baker from $13.50 to sl4. The price generally has fallen to from $6 to $6.60.

only to a user of the phone by the consent of the city and this prevents the stock from falling Into the hands of speculators. The plan can be used on all utilities such as the Gas Company, Water Company, Street Car Company, Heat and Light Company or any other utility. This would put the utility strictly in the hands of the public, owned by the public. If you please, but not public ownership. If the city can spend millions for parks, playgrounds, places for recreation and amusements It certainly can help the public In some way in obtaining the necesearles of life at the lowest possible cost. -