Indianapolis Times, Volume 35, Number 159, Indianapolis, Marion County, 16 November 1923 — Page 1

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VOLUME 35—NUMBER 159

GOVERNOR TESTIFIES HE SIGNED NAMES OF MANAGERS TO NOTES

Executive, Insisting He Obtained $155,000 From State Board, Lists Collateral Governor McCray testified today in the bankruptcy hearing against him that he gave the State board of agriculture $87,746.85 as collateral for a personal loan of $155,000 from the board. This is the transaction which I. Newt Brown, secretary-treas-urer of the board of agriculture, has contended was not a loan. He has declared the money was given to McCray to be deposited in the Discount and Deposit State Bank of Kentland. “You say the board of agriculture loaned you $155,000,“ said B. J. Vesey, attorney for the petitioners. “What securities did the board of agriculture have?" “I turned over to the board notes of considerable amount,” McCray replied.

Vesey asked for the notes and amount. McCray listed the securities' value at $87,746.85. These Included notes, some bearing the names of farm managers and others indorsed mortgage notes, he asserted. "Turned Over to Brown.” "I turned these securities over to Brown in my office on two different occasions.” McCray said. "Were all of these securities turned over to the board of agriculture?” Vesey prodded. "They ware to the best of my knowledge," McCray said. , He listed the alleged loans from the board as follows: JUNE 2, $25,000. JUNE 8, $25,000. JUNE 11, $50,000-. JUNE 27, $25 J)00. JULY 13, $30,000. / Must Answer Later McCray also was questioned about a loan of $150,000 made by the Kentland Bank to him and which he says was secured. He was unable to describe the securities in detail. He was asked to answer the question later. Brown has been subpoenaed as a witness and is expected to discuss the killeged loan later In the hearing.

BEATING THEORY IN DEATH ABANDONED Coroner Rules Aged Woman’s Bruises Due {o Fall, Theory that the death today of Mrs. Frances Hashman, 72, at her home on the third floor of 407 H S. Alabama St., was due to a beating administered by a man a week ago, was abandoned by relatives after Coroner Paul F. Fobinson ruled causes were natural. Funeral will bo held at Nashville, Ind. Mrs. W. A. Hatten, a daughter, living on the second floor, said the door f Mrs. Hashman's room was locked 11 day last Friday. In the evening, when Raymond Fatout, another tenant, forced the door open they found Mrs. Hashman in a daze on the floor with severe bruise marks. Mrs. Hatten recalled a man had gone into the room earlier in the day. The coroner held that Mrs. Hashman had suffered cerebral hemorrhage and fallen against furniture. She lingered in a state of coma for a week. FORTY ENGINEERS . SEEKSMOKEJOB Lucky One Will Get $3,000 Annual Salary, Forty engineers may take the examination for assistant chief smoke inspector provided in the new smoke abatement ordinance, Francis Hamilton, city building commissioner said today. The position pays $3,000 a year. The technical advisory committee has corrlpleted a list of forty-four questions covering every phase of the smoke problem for the examination next Wednesday in the city council chamber. The ordinance is legally In effect Saturday, but a delay of several days will be necessary until inspectors are provided. GRAVE CANT BE FOUND Men Said to Have Collected Insurance by Man Who Never Died. .Bv Time* Special f NOBLESVILLE, Ind., Nor. 16. Glee Creagmlle and Herbert Shannon, the latter son of James S. Shannon, Hamilton County surveyor, were released on bond today following their arrest on the charge, of presenting a false claim to the Metropolitan Life Insurance Company. It is alleged that the defendants collected $198.50 on account of the death of Henry Unbenhour. The grand Jury indictment against the | men chargee that Unbenhour neven died and that If he did die his, grave canco. be iouucL

The Indianapolis limes

‘COUNTRY RUINED’ IF LAND PROVES WITHOUT WORTH McCray Differs With Creditors in Value of Equity in Holdings. “If my land Is not worth anything, heaven help the country,” Governor McCray said today in commenting on the statement of the creditors' committee that equities turned over to creditors to cover approximately $1,500,000 owned by McCray are worth only $21,345. "If land has no value the whole country has gone to wreck. I don’t think any newspaper or individual should take the pessimistic attitude that the country has gone to the dogs." McCray decla ‘jd he still stands on his statement to the creditors at their meeting Ayg. 31 "The reason for the trust agreement was to permit the holding of the property for three years in the hope that values would increase," McCray said. Stands By Statements He recalled that at the creditors' meeting he had listed his assets at $3,323,417.90. He recalled that he had told the creditors he believed this amount could be realized If the property was held. “I told them that if suits were brought, or if I was forced to make an assignment, or forced Into receivership and the lands sold by order of court they could make as good a guess as I could as to what they would bring. "I still stand by my statement to the creditors. There Is nothing Inconsistent in my attitude." Has Faith In I^and McCray said he still has faith in farm lands and that he believes within the next ten years prices of land will go to the highest point In history. A letter sent by the creditors’ com mittee to those creditors who entered into the trust agreement declared the Governor’s equity in the property turned over to the committee amounts to only $21,345. This Is the only value available to meet claims of unsecured creditors, It Is said. The committee does not represent mortgage indebtedness. Equities, the value of which Is uncertain to the committee, may raise the figure. This equity does not Include equity In property held by the Goodrich pool as collateral on $350,000 raised by the pool to meet McCray's most pressing obligations. The letter stated the equities In the collateral probably would not exceed the amount oh the “pool.” Trust Plan Blocked "The trust agreement under which your committee is operating contemplates that the property may be held in.trust for a period of years in anticipation of higher farm values,” the letter says. "Unfortunately, it is apparent that this plan cannot be accomplished, because the committee, as previously pointed out, is without means to carry the property. It cannot pay taxes and mortgage interest, to say nothing of installments of mortgage principal falling due. Some foreclosure suits have already been Instituted.”

TREE PLANTING LATER Memorial Program to Be Given by W. C. T. U. Nov. 24. The Marion County W. C. T. U. memorial tree planting, scheduled at Brookslde Park at 2:30 p. m. Saturday today was postponed until the same hour Nov. 24.. The same program will be given. • Postponement was due to the fact that the Police and Firemen's Band, which was on the program, is to play at Assistant Fire Chief Simeon C. Hoyl's funeral Saturday. Fair Winners Recorded An official review of prize winners at the 1928 State Fair will be announced in a bulletin to be Issued by the State board of agriculture shortly before Christmas, L Kewt Brown, sworetary-treasurer, said today.

How, State Chief Appeared on’Witness Stand

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• CHARACTERISTIC POSES OF GOVERNOR McCRAY ON THE WITNESS STAND, SKETCHED BY MANUEL ROSENBERG, TIMES ARTIST, AS THE GOVERNOR TESTIFIED IN THE HEARING ON THE PETITION ASKING THAT HE BE DECLARED BANKRUPT. WILLIAM D. WILSON. STATEHOUSE POLICEMAN. IS TIUC MAN TO WHOM McCRAY GAVE A MORTGAGE FOR $30,000. THE MORTGAGE WAS THEN TRANSFERRED TO THE WASHINGTON BA NIC A\ T L TRUST COMPANY. ACCORDING TO THE GOVERNOR. McCRAY REFERRED TO WILSON AS A ” GO-BETWEEN."

Daughter’s Diary in Record

"i YOUNG woman’s diary hardly seems to fit Into offlcjal records of Federal Court, and very rarely gets In. But the "line-a-day" diary of Mrs. William P. Evans, wife of the Marlon County prosecutor and daughter of Gov. Warren T. McCray today was ordered on record in the hearing of the bankruptcy suit filed against the Governor by three Ft. Wayne banks. McCray today asked that he be allowed to correct statements made Thursday that, since he became Governor two years ago, he had spent an average of twenty days a year on his farm. He said ho had looked up dates and had found he had been on the farms twenty five or thirty times a year. He specified eight paj-tlcular dates. Asked by J. W. Vesey, attorney for the banks, how he fixed the dates, McCray said he got them from his daughter’s diary. Although the Governor did not have the diary with him, but had copies of pages, Harry C. Sheridan, referee In bankruptcy before whom the hearing is being held, ordered the diary into the record. As no book can be put Into court records only In part, the whole diary must go in.

ILLNESS OF JUROR HALTS TOY QUIZ Investigation Expected to Be Resumed Monday, The Marion County grand Jury investigating financial affairs of Governor McCray did not meet today on account of the illnea of a Juror, Frank McNeeley. Special Prosecutor Clarence W. Nichols said the Investigation would be resumed Monday. Criminal Court Investigator Claude Worley went to Kentland, Ind., today. It was indicated Worley would get for the grand Jury records of the Discount and Deposit State Bank, now In receivership, oi which McCray formerly was president. Worley’s trip follows appearanace of State Bank Commissioner Eben H. Wolcott before the Jury Thursday. Wolcott's department investigated the bank. The Jury may not meet again until Monday, Nichols having announced It had been planned to be In session only until noon today and then adjourn over the week-end. mrs. wheatcrafTnamed G. O. P. Women Elect Vice Chairman of State Committee. Mrs. Vivian Wheatcraft, Whiteland, today was unanimously elected vice chairman of the State Republican women’s committee at the Severin. She was former chairman of the Fourth District. She is a deputy State fire marshal.

INDIANAPOLIS, FRIDAY, NOV. 16, 1923

POSSES TRAIL MAD ’SLAYER IN WOODS Murderer Forces Girl to Accompany Him While He Kills Her Father, Mother, Suitor and Town Marshal,

By United Preaa KELLIHER. Minn., Nov. 16.—While orders to shoot to kill, heavy armed posses today swept the rugged country for miles around in a hunt for a mad killer who shot,four persons to death following a quarrel over a girl. Maddened by days of broodir.g, Leonard Portano, the slayer, forced the girl. Myrtle Sanders, 13, to accompany him on hla mission of death yesterday. He forced her to witness the killing of hertparents and another suitor and a deputy sheriff Thursday. Early today the girl was found in the slaypr'a cabin, where she had been a prisoner all night. It was nearly noon Thursday when Portano argued with Oscar Timmy, farmer, about the girl. A fight followed In which Portano shot Timmy, wounding him. It was here Myrtle picked up the story of the slayings and told it in detail to Sheriff Johnson. Shot Girl’s Mother "Leonard came to the house and was mad,” said little Myrtle. "I didn’t know what he had donq, but he demanded I should go with him. My nr other didn't want me to and he shot her. Then he ran. "Pretty soon we found Dad, and h* (Portaho) cursed and swore. He took papa Into a cabin and tied him to a bed-post. Dad told him he was a crazy wop, and that made him mad. He raved around a while and then he shot papa through the head. “ 'Come on,’ he said, and we went across the timber to the road. He ran and dragged me. Then the man (Marshal Wilson) came by, and Len shot him. Timmy came by pretty soon and he shot him, too. "I went with him to'his camp and he told me to keep quiet arid not say anything.” Wilson had been notified of the shooting of Timmy and was on his way to arrest Portana when he was killed. 9 * Slayer Leaves Note Portano left a note In his camp, which was found by Sheriff Arthur Johnson of Bemidjl. In it he confessed having killed the four. Portano later called Dr. M. Bone

Phone Girl Nips Bandit Raid

By United Praia |LJ .OOPBTON, HI., Nov. 16. | L 11 —Presence of mind of Mrs. Addie Farrell, night operator at the local telephone exchange, early today, saved this city from an organized bandit raid. Nine yeggs in two automobiles swooped down on the town shortly -after midnight, cut 1,300 telephone lines, and

at Kelllher and told him where ho would find the bodies of his victims. Portano then fled, heading into the wood. Sheriff Johnson stationed eleven men about the camp and brought the girl here. He is undetermined what to do with her. He said she Is somewhat simple-minded and her conversation evidenced she has little understanding of what has happened, fjhe eeemed either dazed or unconcerned. Kept Workers Terrorized. Portano had a lumber camp six miles north of here and employed several loggers. Mrs. Williams, camp cook, said Portano was "crazy” and that he kept everybody in terror. Ever since his brother took him into court nearly a year ago for alienating his wife’s affections, she said, Portano has been "mean.” Mrs. Williams and Sheriff Johnson believe Portano may have disposed of his brother and his wife. Others In Kelllher, however, bellevs the brother Nicholas fled with his wi’e. Portano is heavily armed. He car ried a revolver and rifle and had a large quantity of ammunition. VET COMMANDER ATTACKSjNQUIRY McFarland Declares Disabled Soldiers Are Disappointed, By United Preaa WASHINGTON, Nov. 18. A vigorous attack on the methods of the Senate Committee investigating the Veterans Bureau was made# today by James A. McFarland, national commander, Disabled American Veterans. . "I must tell you the men are astounded at the mis-informatlon and ’disappointed at the lack of constructive proposals for improving conditions of the disabled veterans,” declared McFarland.

started to blow the safes in the two banks and the postoffice. When her lines were cut, Mrs. Farrell realised immediately something was wrong. The thought flashed across her mind and without a moment’s hesitation she turned in a general fire alarm which rings a big bell in the tower of the city hall.

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

Pupil Jurors Reduce Boy Officers

mT was a regular trial, and as the result boy traffic officers of School No. 3, 23 N. Rural St., have bqen reciuec din rank and suspended, while a lieutenant has resigned. All because the boys decided that motdrist* were not putting on their dimmers and that they would attend to it themselves.The trial was before the school board of safety today. When smaller boys testified in “court” that the captain had exceecled his authority, limited to school hours when children were passing dangerous street corners, the “Jury” voted to reduce him to a traffieman and, in addition, suspended him for fifteen days. Another little traffieman, whose zealousness to enforce the city’s laws had brought him into reprimand, was suspended heartlessly for thirty days. Then he must go to Capt. Michael Glenn at the police headquarters before he can get back his badge. MURDER CHARGED IN INDICTMENTS Grand Jury Holds Miners for Cashier Slaying, By United Preaa VINCENNES, Ind., Nov. 16.—True bills charging Theodor# Armstrong and William Jones, Bioknell coal miners, with first degree murder for the shooting of Charles Wright, Edwardsport bank cashier, were returned by the Knox County grand jury today. The two men under indictment are held in the Jail at Terre Haute for safe keeping because of threatened nsob violence against them. Wright was killed when two unmasked bandits attempted to hold up the bank a week ago. Armstrong, according to Knox County authorities, confessed to the shooting and implicated Jones. The latter maintained his Innocence throughout.

As the bell started to toll, night wattehm*®, policemen, firemen and citizens flocked into the streets. The yeggs, frightened by the ringing of the bell, were almost cut off from their automobile by the gathering eitizens. They made good their escape, however, * though citizens still are combing timber land i® this vicinity in search of them.

Witness Defends His Actions in Making Applications for Farm Loans Admission that he had signed the names of his farm managers to notes and later obtained tjhe managers’ written consent, was made by Governor Warren T. McCray today in the hearing before Harry C. Sheridan, referee in bankruptcy, on petition of three Ft. Wayne banks that McCray be declared bankrupt. The hearing is on at the Federal Building. McCray testified he signed the names of Frank Henderson, manager of the Hickory Island Stock Farm, and of a Mr. Pickett, manager of 'another farm, to notes. He said that on Aug. 27—a considerable timo after the notes had been signed—he called on Henderson and Pickett and obtained their written permission to sign their names. He said he had verbal authority from Henderson to sign his nam£ Doesn’t Recall Verbal Authority. “I don’t recall whether I ever had verbal authority to sign Pickett’s name,” McCray testified. “No notes signed with the names of these men are listed among my assets. They are all listed among my liabilities.” “What was your purpose in signing their names?” asked W. J. Vesey, attorney for the Ft. Wayne hanks, who continued the examination of McCray, which began Thursday. “The responsibility was the same whether I signed as indorser or maker,” McCray replied. “The banks required twoname paper. They were buying paper on my indorsement” i'How do you know?” “Because they did not ask about the makers.” Says Manager Has Moved. In answer to a question, McCray testified he signed Pickett’s name as.manager of the Green Stock Farm. He testified Pickett had moved off the farm some time ago. “Did you sign his name after he moved off the farm?” Vesey asked. “I don’t recall,” was the reply. “I don’t know when he meved out. But I think not.” ,

Vesey then directed his inquiries to the question of whether McCray's principal occupation is that of a farmer. Under Federal law a farmer cannot be declared bankrupt involuntarily. "Was your prime purpose in going to Kentland (McCr&y's home town), Aug. 27, that of seeing Pickett and Henderson about their signatures?” asked Vesey. * "No, sir,” McCray answered. "It was to attend a meeting of the farm company’s directors.” Snitches to Bank “I see you list among your assets stock of the Discount and Deposit State Bank of Kentland. "When was it organized?” "Asa State bank, in 1908 or 1909. It had been a private bank since 1879. It was organized by my father, Mr. Ermston and Mr. Ade. When It was organized as a corporation, my father and I each took SIO,OOO worth of stock. My father was president.” "Did you Jater becom-^president of that Institution?” "I succeeded my father on his death. Dec. 13. 1917." "From the time of your father's death until recently, you were president of the bank?” "Yes. sir.” "The actual control of the bank was left at your discretion?” "I was titular head of the bank and I consulted frequently with the cashier.” "What part of your time during the last ten years were you in the bank?” "Nearly Every Day” "I was in the building almost every day and & large portion of every day, up to the campaign. I made a practice of going to the farm nearly every day.” At this point, Vesey objected to MoCray’s volunteering information. Sheridan instructed McCray to confine his statements to answers to ! questions. McCray said he had received a salary of SI,OOO a year as president of the bank until this year, w'hen he voluntarily dispensed with the salary. The Governor testified he wanted to resign as president of the bank ; when he was elected Governor in 1920, but that the directors objected. When asked by Vesey to name any one director who objected to his resignation, McCray was unable to do so. "I Think It Was Unanimous” "I think It was unanimous,” the Governor said. "It was all talked over in a directors’ meetfhg.” “You devoted considerable time to the bank’s business, did you not?" "I gave it as much time as I could.” Vesey’s questioning obviously was for the purpose of trying to show McCray devoted a great part of his time to businesses not connected with farming. "After you became Governor you were able to obtain considerable State funds for deposit In your bank, were you not?" "Yes. But It had State deposits before I was Governor.” "What did they amount to?” "Forty thousand dollars, I believe.” sYou increasced this amount largely, did you not?” "Yea.” "Until it got as high as slso< 000?" "Yes.** je Vesey next took, up the sjsrexs

Forecast PARTLY cloudy tonight. Fair weather predicted for this vicinity Saturday. Cooler tonight.

TWO CENTS 1

Grain Company of Chicago. McCray testified it was organized In 1910, William Simons was president and McCray, vice president, he said. The company, he said, was a member of the Chicago Board of Trade. "Where was the nearest office?" “At Sheldon, six or seven miles from Kentland." "Did you not frequently talk to that office by telephone?” "No.” The Governor denied he had much to do with the active part of the business. “That was in the* hands of Mr. Simons,” McCray testified. Company in Receivership He said the company now is in the hands of a receiver, but that he never had received a statement -• "Did you supply the company with money?" "Yes. As high as $10,000." “Did the company adyanoe you money this year?” ”1 thirtk I got $5,000 from It some time this summer." McCray was unable to fix the date when pressed. He denied he held frequent conferences with Simons about the business. He admitte dhe got SI,OOO a year salary until June 1, 1923, as vice president of the Sawers concern. < Vesey then took, up McCray’s connection with A. Harriman & Cos., road builders of Kentland. "Signed Company's Name” "You signed the company's name to a lot of notes for your own use?” ’’Yes. It was a partnership and Harriman knew all about it.” "Did he find out before or after?” "Both. I had a talk with him and told him. all about it, and he said it was all right. He has signed my name to thousands of dollars’ worth of paper for the company." When pressed by Vesey to tell where this conversation with Harriman occurred, and when, McCray answered: “I believe it was one day when I met him oa the farm. I am not sure.” The witness was unable to fix the date. He said he gave no time to the company’s business and had no money actually invested in it. Credit From Bank "I extended the company credit from the bank, rather than capital,” the Governor explained. At the conclusion of the hearing Thursday attorneys for opposing sides conferred and it was agreed that no session be held Saturday If Referee Sheridan will resume the hearing early next week. KLAN HURLS CHALLENGE Hnge Burning Cross Defies Mayor Bader of Atlantic City. By United Preaa NEW YORK, Nov. 16.—A hr.ge burning cross, which illuminated Atlantic City’s beach for miles last midnight, was accepted as the Ku-Xlux Klan’s challenge to Mayor Bader to pass his threatened ordinance making It illegal for masked men to parade the city’s streets. HOURLY TEMPERATURE 6 a. m 45 10 a. m........ 41 7 a. m.|....... 44 11 &, m,,...... 42 8 a_ rru...,... 43 12 (noon) 41 9 •. 42 1 p. AZ