Indianapolis Times, Volume 35, Number 158, Indianapolis, Marion County, 15 November 1923 — Page 1

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VOLUME 35—NUMBER 158

GOV. M’CRAY ADMITS HE USED POLICEMAN AS ‘GO-BETWEEN’

FRENCH PROPOSE DRASTIC MEASURE TO OUST WILHELM News of Poincare’s Threat to ) Seize Hamburg Astounds Washington. IN EUROPE France threatens seizure of port of Hamburg. Dutch officials declare return of kaiser to Germany is probable. Stresemann government withdraws support from Ruhr. Socialist members in Stresemann cabinet resign. Sttnnes group may iropen mines in Ruhr and force acceptance of French reparations ultimatum by German government. General Ludendorff freed by Berlin officials. France threatens military action to prevent Hohenzollems from seizing power in Germany and starting new war. Washington fearful of new crisis should France seize Hamburg. By United Pres* WASHINGTON, Nov. 15.—France is considering seizure of the great German port of Hamburg to force Germany to deliver the former crown prince, according to an official report which reached diplomatic headquarters today. This information, understood to reflect directly the attitude of Premier Poincare of France, was to the effect if support of Great Britain can not be obtained to such 3rastlc action, France will proceed alone. report brought the first eonrmation on official authority of the _ umor circulated in Europe France was planning the drastic move of seizing Hamburg. Washington has been astounded at this news. Some diplomatic circles expressed the belief should France seize Hamburg, a crisis of the first magnitude might be developed between France and Great Britain, because of the large British trade with that port. The attitude of Poincare as contained in the information received here is that the French government ia absolutely determined to secure delivery of Frederich Wilhelm by Germany and will take any steps necessary to achieve this.

PARLEY MAY BE RESUMED Reopening of Ruhr Mines by Stinnes Group Under Consideration. By United Press PARIS. Nov. 15. —Negotiations be tween French occupation authorities and the Hugo Stinnes group of German industrialists for re-opening of Ruhr mines may be resumed despite "Wednesday’s break. It was said in authoritative French circles that Germans may yet accept the ultimatum demanding they agree to pay twenty per cent of the coal output for reparations besides a coal tax of ten francs per tor.. STRESEMANN MINISTRY FLAYED By CARL. D. GROAT fi United Press Correspondent BERLIN, Nov. 15.—" The brutal stoppage of unemployment relief in the Ruhr” may be the death of the Stresemann ministry. Socialists indicated today they would make this the rallying point of a fierce attack on Stresemann when the Reichstag opens Tuesday. They strongly condemned the chancellor for his decision to leave two million workers and their three million dependents in the occupied areas to the mercy of France. FOUR KILLED IN RAIL CROSSING ACCIDENT Pennsylvania Train Hits Automobile at Frazeysburg, 0. Bu United Prest FRAZEYSBURG. 0., Nov. 15 Four men were killed today when a Pennsylvania passenger train struck the automobile In which they were riding. The dead: Harry C. Watson. J. E. Turner. Oscar Norville and Henry Campbell, all of Columbus. Defamatory Mail Charged Marcello G. Gioscio, 1313 N. Noble St., was charged in Federal Court today with sending defamatory post cards through the mails. He said he sent the cards ■while mentally unbalanced, his condition being due to the tonarrlage of a girl In Seymour. Ind., 'to another man. after she had promised to marry him. he alleged. HOURLY TEMPERATURE 6 a. m 46 10 a. m. ■ • • 48 7 a. m. 45 11 a. m 48 8 a. m 46 12 (noont 40 9 a. m 46 1 p. m 49

Newest Dances

The Indianapolis Times

Bankers Witnesses in Bankruptcy Case

JAMES P. GOODRICH

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—Photo by Pexheimer. REILY C. ADAMS

Among witnesses subpoenaed in the hearing upon the petition to declare Governor McCray bankrupt before Federal Referee Harry C. Sheridan today were James P. Goodrich, former Governor, and president of the National CRy Rank, and Reily C. Adams, president of the Security Trust Company.

DEBS REPORTED SLIGHTLY BEITER Socialist Leader, Seriously 111, Spends Restful Night, By United Press TERRE HAUTE, Ind., Nov. 16.—A slight improvement in the condition of Eugene V. Debs, noted labor and Socialist leader, who is confined to his home suffering a breakdown, was reported early today by Mrs. Debs, who is personally attending her husband. According to Mrs. Debs, her husband spent a restful night and was feeling somewhat better this morning. Exam for Accountants Held More than seventy persons took accountancy examinations at the Statehouse today, conducted under direction of the State board of accounts. There were fifty-five “all subject” candidates. ten auditing candidates, seventeen accounting candidates and one in commercial law. Bank Is Closed; Cashier Gone By United Press ST. LOUIS, Nov. 15.—The Pattereon Bank, at Patterson, Mo., 120 miles south of here, was closed Wednesday and the cashier, Tracy Kimber, 24, has disappeared. Many Attend Dry Conference By Time* Special MUNCIE, Ind.. Nov. 15.—Hundreds of persons attended a mass meeting here Wednesday night which ended the regional law enforcement conference, held here under the supervision of Bert C. Morgan, Federal prohibition director for Indiana.

Arthur Murray, famous international dancing master, will give free instructions through thin paper. He will also explain ballroom cltquette—the thing* you should and should not do at a dancr. Murray will teach you the American the Ambassador Fox Trot aad thr WUdflower Waltz, this irann't most popular dances.

The High Spots in Governor’s i,. . . Testimony

Governor McCray, testifying today in bankruptcy proceedings against him, asserted before the master in chancery— THAT a $30,000 mortgage now held by a bank originally was made to “Wilson, a Statehouse policeman, and transferred by him to the bank.” THAT he had forgotten to record a deed for Newton County property until the date he mortgaged it. THAT he did not know the reason why a mortgage executed Aug. 30 was not assigned to a bank until Sept. 15. THAT he did not keep hooks on checks that did not concern his farms. THAT he obtained his list of creditors from “a wonderful memory on that sort of thing.” THAT 95 per cent of his business was done through the Dis count and Deposit Bank of Kentland. THAT he deposited his salary checks in Indianapolis and lived on that money. THAT he was the wle owner of a cattle company in lowa and that he made out notes in the company’s name and made them payable to himself.

SENATE WITNESS ABSOLVESWALTON \ Governor Scores in Testimony Regarding Corruption, By l nited Pre*s OKLAHOMA CITY, Okla.. Nov. 15. —J. C. Walton never received any money corruptly while Governor in i the knowledgeof Dr. E. T. Bynum, his former executive counsellor and now principal witness against him, Bynum testified before the Senate court of impeachment today. The court was engaged in airing details of the notorious Tonkawa briberycase and The question was put to Bynum by Walton's counsel. “Did you ever know of the respondent while in office receiving any money corruptly?” There was a considerable pause. Senators pitching forward in their chairs to catch the witness' reply. “No, sir,” came the answer. The trial may last until Christmas. ATTEMPTED ESCAPE OF CONVICTS FRUSTRATED Two “Lifers” Wade Through Sewer, but Bars Block Freedom. Bv f nited Press JEFFERSON CITY, Mo., Nov. 15. —Two convicts who attempted to escape from Missouri prison by wading through a sewer were captured when they were almost frozen from standing neck deep in the cold water. Bars placed across the mouth of the sew-er prevented thejr escape. They were Dave Bartlett and Thomas Seminary, both serving life sentences. VETERANS OF FOREIGN WARS ISSUE WARNING Solicitations Alleged to Be Made by Impostors. Veterans of Foreign Wars today Issued a warning to merchants against solicitation of funds for a prize fight at Tomlinson Hall being made by parties representing themselves as working under auspices of the veterans. “The Veterans of Foreign Wars are putting on no prize fight and persons representing themselves as working under our auspices toward such an end are Impostors,” officials declared. M AID N EAR BR EA KDOW N Victom of Attack Attempt May Be Taken to Culver, Ind. Miss Fern Kessler, maid in the home of E. J. O'Reilly. 4342 Park Ave., who was the victim of attempted attack Nov. 10 by a man. later admitted to be a former suitor, was verging on a nervous breakdown at St. Vincents Hospital today, according to her physician. He said he would recommend her removal to her home in Culver, Ind. DUVALL TAKES HIS OATH New County Treasurer Files Bond of SIOO,OOO With Auditor. John L. Duvall, who will become county treasurer Jan. 1, today fi|ed bond of SIOO,OOO with Leo K. Fesler, county auditor. Surety is the United States Fidelity and Guarantee Com'Ueny. He was given the oath of offfu* by Fesler.

INDIANAPOLIS, THURSDAY, NOV. 15, 1923

Three Cows Three cows caused the arrest of Mrs. Eva Botos, 1016 W. Morris St., today. Failing to convict her of a “wet" charge of possessing two bottles of white mule, found in a hay stack in the rear of the home, police officials filed a charge of violating the municipal code lln Iting any resident to on* cows giving milk within the city limits. Mrs. Botos has three cows, po’ice testified. "Two of ’em aren't giving milk, though," she replied. "Case dismissed,'' Judge Wllnieth ruled.

SIMEON G. HOYL IS MODRNEDBYCITY Services for Assistant Fire Chief Not Set, Funeral arrangements for Simeon U Hoyl. 53, assistant fire chief, who died at 12:15 a. m. today, have not been completed, it was said at his home. 126 W. Eighteenth St. Hoyl died of heart trouble after a few hours’ illness. Chief Hoyl was on duty Wednesday, although late in the day Chief John J. O'Brien excused him when h* said he was not feeling well. Hoyl suffered a heart attack throe weeks ago. Hoyl was born In Indianapolis and had served on the fire department since 1892. He was first connected with pumper company No. 5, and was promoted to captain of hose company No. 12 in 1896. In 1918 he was made assistant fire chief. "The death of Chief Hoyl is a great loss to the department,” said Fire Chief O’Brien. “He had the welfare and safety of evqry man at heart. He was brave and never faltered in duty.” Surviging. The widow, a daughter, Anna Louise: two sons, Donald and George ;a brother, Charles G. Hoyl, all of Indianapolis: and a sister, Mrs. Morton Wilson of Atlanta, Ga. SUCCESSOR RECOMMENDED Fortner Ilea of Department Slated to Get Job Battalion Chief Harry Johnson will be recommended by Fire Chief John J. O'Brien to become assistant chief, taking the palce of Hoyl. Johnson was fire chief under the Bell administration. Capt. William Steinheuer of pumper company No. 30, New Jersey and South Sts., will be recommended to succeed Johnson. The recommendations will be made to the board of safety next Tuesday. CITY RULE ISADOPTED Petersburg Citizens Vote Change From Town Government. By United Press PETERSBURG, Ind., Nov. 15.—8 y a vote of 669 to 200 Petersburg has decided to change from town to'city form of government, a check of ballots today showed. Town officers, elected only a week ago Tuesday, may be set aside and a city election held.

Ballroom Hints

GOVERNOR M’CRAY EJNTERED THE FEDERAL BUILDING TODAY TO TESTIFY IN THE HEARING UPON THE PETITION TO DECLARE HIM BANKRUPT AS ANY' OTHER CITIZEN WOULD. HE WALKED UP THE EAST OHIO ST. ENTRANCE STEPS WITH HIS ATTORNEYS, JAMES VV. NOEL AND GEORGE BARNARD, AND SEVERAL CITI ZENS WHO WERE ON ORDINARY BUSINESS. THE WOMAN IN THE PICTURE HAD NOTHING TO DO WITH THE M’CRAY HEARING. SHE WAS ONE OF THOSE WHO HAPPENED TO BE ENTERING AT THE SAME TIME.

WITNESSES ARE BUSY; PROBE IS DELAYED McCray Grand Jury Adjourns Because Several Persons Called Are at Federal Hearing,

The Marion County grand jury investigating Governor McCray’s financial affairs did not meet this afternoon because some witnesses were among those subpoeneaed in today's Federal Court hearing of a petition asking that McCray be adjudged bankrupt, according to Special Prosecuting Attorney Clarence W. Nichols. Witnesses subpoenaed for the Fed eral hearing: Governor McCray, James P. Goodrich, former Governor of Indiana and president of the National City Bank; H. M. Moberly of Shelbyville, president of the State board of agriculture; I Newt Brown, secretary treasurer of the board; Ross H. Wallace, president of the Aetna Trust and Savings FORBES INVITED 10 PROW CHARGE Senate Counsel Challenges Conspiracy Statement, By United Press WASHINGTON, Nov. 15—Gen. John F. O’Ryan, counsel for the Senate committee investigating the Veterans' Bureau, today challenged former director of the bureau Charles R. Forbes to prove charges of conspiracy to “destroy” him, which Forbes has maae in defending himself before the investigators. O’Ryan declared he on his part was prepared to prove the whole truth of the testimony of Elias Mortimer, accusing Forbes of corruption, misconduct and drunkenness. O’Ryan told the’committee that if Forbes or his counsel, Colonel EasbySmith, had evidence reflecting on the integrity of counsel for the committee or witnesses summoned by him, he wanted it produced.

YOUR VACANT LOTS Turn them from “tax-eaters” into income makers. Some homebuilder wants those very lots worse than you do and you could use his money, couldn't you? Then call Main 3500 and sell them with a Times Want Ad.

Is the title of Murray’s first article. He will tell In his series what you should do to avoid being a “wall flower;” how to Improve yourself socially and become popular. The Instructor’s rules for proper ballroom behavior are somethin you should not miss, and you won’t if look

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

| Company; JKeily C. Adams, president J of the Security Trust Company, and J J. Ivlser, vice president of the Meyer-Kiser Bank and a member of the Governor’s creditor committee. Bank Officials Testify Witnesses appearing before the county grand jury today: Eben H. Wolcott, State bank commissioner: Elmer W. Rogers, secre-tary-treasurer of tho Bankers Trust Company; Albert J. Hueber, vice president of the People's Trust Company, and Howard C. president Bankers Trust Company. A number of bank clerks also were heard. The jury adjourned for the day at 11:45 a. m. and will meet at 9 a. m. Friday. According to Judge Collins, records of the State board of agriculture, impounded in criminal Court, were not requested for use in the Federal hearing today although they are available, he said. According to Nichols, no subpoeneas have been prepared for Friday. .State Examination Made Wolcott was in charge of the inspection of banks, many of which held McCray notes long overdue. He also had supervision of the Inspection of the Discount and Deposit State Bank of Kentland. of which McCray formerly was president and which closed its doors after McCray’s crash. Wolcott, the first to testify, left the jury room at 10 a. m. with Claude Worley, investigator for Criminal Court. Worley 'returnee, later with records presumed to have com s from the bank commissioner's office. Thomas ,D. Barr, who made the examination at Kentland, already has appeared before the jury. Reports that Governor McCray had been subpoenaed to appear before the grand jury were denied. Hf Is not exected to be asked to appear. MEAT DRIPS; SI,OOO FIRE Smoke House at 407 W. Michigan St. Is Destroyed. - The smoko house of Kuhn’s Meat Market, 407 W. Michigan St., was damaged SI,OOO by Are Wednesday. John A. Kuhn, proprietor, said the fire started when drippings from 4,500 pounds of meat stored in the house, dropped on heating grates. Loss is covepgd by Insurance. Kuhn said. Allege Sock Burglar Held Police, called to the Real Silk Hosiery Company, 624 N. Noble St., arrested Jess Adkins, 19, of 602 E. Ohio St., on complaint of Edward Wilson, watchman. Officers say Adkins had four pairs of socks in his shirt.

State Executive Gives Version of Financial Dealings at Hearing The story of how he had given himself notes and of how he had used a Statehouse policeman as a “go-between” to secure a mortgage, was told today by Governor Warren T. McCray when he appeared as the first witness in a hearing in which the Federal Court is being asked to adjudge him bankrupt. The hearing, on application of three Ft. Wayne banks, was before Harry C. Sheridan, referee in bankruptcy, at the Federal Building. McCray admitted the Camby Cattle Company of lowa was not a company, but was a name he used personally- He admitted he had signed notes, payable to himself, with the name of this company. He said he could not remember how many notes he had signed in this way, or the amounts. * The loan secured from the-Statehouse policeman was a mort-* gage of $30,000 on land in Newton County. The Governor said he gave the mortgage to the policeman, whose name he said is Wilson, and that Wilson transferred it to Washington Bank and Trust Company of Indianapolis. He referred to Wilson as a “go-between.” McCray was scheduled to resume his testimony this afternoon.

Governor McCray entered about 10 a. m., accompanied by his lawyers, George Barnard and James W. Noel. The Ft. Wayne banks were represented by W. J. Vesey, B. F. Heaton, R. E. peters, all of Ft. Wayne, and Hume L. Sammons of Kentland. No Preliminary Statement The hearing opened without any preliminary statement. Governor McCray, the first witness called, was questioned by Vesey. "State your name and residence?” “It is Warren T. McCray, Kentland, Ind." “Is Keptland your home now?” “Yes, but I am living in Indianapolis temporarily." "Ho r long have you held residence here?” “Temporarily since 1921. I was inaugurated Governor in January of that year. The family moved here in December. We never moved the furniture here and still retain our home in Kentland.” “How long did you live in Kentland in that home?" Bom On a Farm “Since 1892, when I was married. Before that I lived with my father in Kentland. I was born on a farm thirteen miles northeast of Kentland and moved to town when 5 or 6 years old.” Vesey then put in evidence statements of liabilities and assets, prepared by McCray for his creditors' committee last August. McCray said his listed assets were about the same now, but tha,t the liabilities differed somewhat. He explained the liability list by saying it did not include mortgage indebtedness of about $458,000 or preferred stock indebtedness. McCray testified: "There have been no changes in the list of mortgage Indebtedness since then except a $30,000 mortgage, on Section 31, Lincoln Township, Newton County, Washington Bank and Trust Company.” Made to Policeman “Was it made to*the bank in the first jjlacc?” “No, it was made to Wilson, a Statehouse policeman, and transferred by him to the bank.” “Was it for old or new indebtedness?" "Both. It secured the old indebtedness and they made me anew loan of SIO,OOO. The old indebtedness was secured by cattle notes as collateral. This was insufficient to cover the indebtedness. The new loan of SIO,OOO was independent. It was secured by Walter Rich, $2,500; Alfred B. Conklih, $2,500 and Harry B. Smith, $2,600.” Smith is adjutant-general of the State of Indiana. "The other $2,500,” the Governor continued, "has been taken up in cash. Seventy-five hundred dollars is still there.” Goes Into Explanation The Governor went into a long explanation as to his ownership of the land mortgaged to the Washington Bank and Trust Company. "I got it from John Totten,” the Governor said. "I traded him an equity in a Chicago apartment house, the Drexel. I owned the second and third mortgages on this apartment." “How did you get them?” Vesey asked. "I traded a farm near Ft. Wayne for them." Governor McCray admitted he had not recorded the deed for the Newton County property until Aug. 30, the date he mortgaged it. He explained this by saying: "This was not intentional. I put the deed In a safe and forgot it.” The witness said he had placed a value of SIOO an acre on the land in trading for it. Governor Crumples Paper While he was testifying, McCray nervously crumpled a sheet of paper

In the Times Tomorrow

Forecast CLOUDY tonight and Friday, probably fair. Little change in temperature predicted for this vicinity.

TWO CENTS

Assets Listed by Executive Governor McCray’s assets as stated in an exhibit filed by him in connection with the bankruptcy proceedings, gave his assets roughly at $3,000,000. The mortgage indebtedness, exclusive of the $30,000 mortgage on Newton County land given the Washington Bank and Trust Company, was listed at $448,500. No mention was made of indebtedness to banks or individuals not secured by mortgages. In the list were included more than 15,000 acres of land in various States and Canada. At a secret hearing before > Judge Albert B. Anderson, attorneys for the Ft. Wayne banks said they believed McCray's assets would amount to‘not more than $2,000,000 to $2,500,000.

in his hands and played with a lead pencil. He repeatedly asked his lawyers to prompt him. Vesey continued his questioning: “What did you give for the 640 aerfes of the Newton County farm?” “It was figured at SIOO an acre.” "But you didn’t give money?” What was the swap?” McCray replied that he was not clear as to the details. “As I understand it,” Vesey continued, “the mortgage on this land was executed Aug. 30, 1923, but was not assigned to Washington Bank until Sept. 15. * What was the reason for the delay?” “I don't know.” Delivery to Bank “Was the mortgage delivered to Wilson or to the bank?’’ "To the bank.” “Was the assignment on It when you delivered it to the bank?” "I don’t think it was.” “Was this mortgage prepared at the request of the bank?” “Y'es.” McCray testified the mortgage was executed the day before his creditors’ meeting, held on Aug. 31. "Why didn’t you put it on the schedule you submitted to the creditors?” Vesey asked. "It was on my schedule and I thought Mr. Noel had it on his.” McCray volunteered the information that the land was the finest he had ever seen. Vesey then went into McCray's accounting system. “What books do you keep?” be asked. “We keep a book In which all checks, expenses, etc., are recorded." “Don’t Keep Books on ThetH* “What about checks that do not apply to the fam s?” “I don’t keep books on them.” "Have you any books showing the execution of notes and hills payable?” “No. That book has not been kept up for two years.” "Where did you get j'our list of creditors?” ’I have a wonderful memory on that sore of thing. I made it out from memory and then checked it up.’ McCray said ninety-five per cent of his business was done through the Discount and Deposit Bank of Kentland. He said he deposited his salary checks in Indianapolis and he lived on that money. “Did you usually look after your banking affairs, or did somebody do It for you?” Vesey then asked. “I looked after the financing. My farm managers had the right to draw checks." Farm Managers Write Checks He listed five farm manage®, who he said wrote checks on his account. “Now. Mr. Witness, you have a (Continued on Page 10)

Anew serial story, "A Mating in the Wild*,” starty today on Page Eight- It’s a thriller.. 1