Indianapolis Times, Volume 35, Number 171, Indianapolis, Marion County, 30 November 1923 — Page 1

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VOLUME 35—NUMBER 171

GOVERNOR IS CENSURED BY COURT JUDGE Letter by Executive’s Attorney, Asking Permission to Go Before Grand Jury, Draws Fire, Governor McCray had no basis for his complaint that he was not being given a “square deal’’ in refusal of Clarence W. Nichols, special prosecutor, to permit him to appear before the county grand jury, Judge James A. Collins of Criminal Court said today. McCray’s attorney, James W. Noel, wrote a letter to the grand jury, through the judge, repeating a request for his hearing.

The grand Jury met all morning, but heard no witnesses, Nichols coming out of the room at 11:30 to confer again with Collins. McCray spent most of the morning in Noel's office. 811 Lemcke build ing. Collins conferred with Nichols today after which he issued this statement: "Under our grand Jury system no person under investigation for offenses against the criminal code is permitted to appear before the grand Jury. This has always been the rule in this country in both the State and Federal courts. Grand Jurors under their oaths have no right to reveal to any one outside of the grand jury room what occurs in the grand Jury room or the results of their deliberations. No person who has not been summoned by the grand Jury has any right to approach the grand Jury or any member thereof, in the grand Jury room or out of the grand Jury room, regarding any matter under Investigation by them, either orally or by writing. World Mean Secret Trial "Such a practice would mean the transferring of the trial of the case to the grand Jury room and there In secret try that which should be tried in open court by a petit jury. As was said In a recent Federal case by a Judge of the United States District Court, ‘I can conceive of no more effective way to discredit the grand Jury as an institution than to confer upon it the power to determine the questions of fact as a trial Jury.' "Under the law Warren T. McCray could not appear before the grand Jury as a matter of right. No one knew tlds better than his counsel, James W. Noel. "Mr. Noel, on behalf of his client, Warren T. McCray, requested that a grand Jury investigation be made of the Governor’s affairs. William P. Evans, the prosecuting attorney for the Nineteenth Judicial Circuit, Joined In this request and asked the court to appoint a special prosecuting attorney. Following this request Mr. Charles W. Moores was appointed, but owing to illness which overtook him shortly after starting the Investigation, he was unable to proceed and at his request Mr. Clarence W. Nichols was appointed his deputy to continue the work of the investigation. Mr. Nichols has Worked diligently and faithfully to bring to the attention of the grand Jurors all evidence relating to matters over which the court would have jurisdiction. Complaint ‘Unfounded’

" While the court has no knowledge of Information of the scope of this Inquiry, It Is Impossible to undertand upon what theory Warren T. McCray could learn that his rights are being trampled on, or wherein he is Justified In saying, “it is contrary to the spirit of America for an indictment to be returned against a man without giving him an opportunity to appear in his own behalf if he so desires.’ "As he well said. 'We are living In enlightened America and not In darkest Russia,’ and in America an indictment is a formal complaint presented on behalf of the commonwealth and upon which .there can be no conviction until after a hearing In open court before twelve good and true citizens. In America the law presumes a defendant to be Innocent of the commission of any crime, and this presumption continues in his favor throughout the trial of the cause, step fcy step, until bis guilt has been established, by evidence to the satisfaction of each Juror beyond a reasonable doubt. "The burden rests upon the State to prove every material averment In the Indictment and every fact necessary to constitute the offense charged. The rule of law which clothes every person accused of crime with the pre sumption of innocence and Imposes upon the State the burden of establishing him guilty beyond a reasonable doubt U not Intended to aid anyone who is In fact actually guilty of to escape from Just and merited punishment, but Is a humane provision of law, which Is Intended, so far [as human agencies can. to guard fagiinrt the dr.-yc: or any innocent

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person being unjustly accused or pun lshed.” Conferred With Moores "Ever, the Governor of Indiana cannot swerve me from my duty or cause me to violate the law,” said Nichols. "This is hot a personal matter,” Nichols said, in making it empha'ic the Governor would not be permitted to testify in his own behalf. "It is a legal matter and I will not disobey the law.” Following is the letter of James W. Noel, McCray’s attorney, to O. L. Miller, foreman of the grand Jury, dated Nov 23: "Dear Sir—Early in the progress of the Investigation with reference to the Warren T. McCray matters. Charles W. Moores, then special prosecutor, said to me t,hat Governor McCray should have full opportunity to appear before the grand jury and testify concerning matters brought to its attention by other witnesses respecting him. Mr. Moores is now ill, and, I am Informed, has had no opportunity to converse with Clarence W. Nichols, the present special prosecutor. on the subject. “We desire to notify the grand jury, through you, that Warren T. McCray desires to appear before the grand Jury before the completion of Its Investigation of his matters, and to testify concerning them, and he hereby requests that opportunity be given him so to do. Desires to Assist "The charges which appear by the newspapers and public talk to have been brought to the attention of the grand Jury are so seriouls and reflect so much upon his reputation and the dignity of the office which he holds that it Is clearly due him and to the public as a matter of Justice and right, and is of public concern, that he be permitted to give such information to the grand Jury as will assist it in arriving at a correct and just result in its investigations. Further than that, as a private citizen, he asks this as a matter of pure Justice. "We assume, of course, that the grand jury desires to ascertain the facts in these matters and Governor McCray is willing to waive his constitutional privilege in the premises In order to do what he can to enlighten the grand Jury in these matters. “I would be glad to be advised as to the time at which Governor McCray may appear before the grand Jury.”

COLDER WEATHER HEADEDFOR CITY 'No Snow, However,’ Forecast for Tonight. HOURLY TEMPERATURE 6 a. m. 3710 a. m SS 7 a. m 3611 a. 38 8 a. m 87 12 (noon) 38 9 a. m 37 1 p. m........ 38 Although the mercury Is expected to drop to between 28 and 32 degrees tonight. no snow Is In prospect, J. H. meteorologist, said today. The thermometer roistered 38 degrees at 7 a. m. todiy and 37 at 9 a. m. The forecast for tonight and Saturday is: "Slightly cloudy tonight and somewhat colder. Pair Saturday." Armlngton said there might be a tendency toward a rise In temperature late Saturday afternoon. History repeated Itself In Thanksgiving w eather this year. So closely did the temperatures parallel each other, that the thermometer at 7 a. m. Thursday registered 88 degrees. Just one degree more than at the same time on Thanksgiving day in 1922. There was a greater rise in temperature a year ago, the mercury reaching II at 4 p. m. ®th days were stormy-

Developments Finding of Mrs. Whelchel’s empty pocketbook on the Rockville Road, two miles east and one-quarter mile north of the High School Road bridge. Statement of Francis Hager Jr., 1854 Applegate St., that he would take part in searching for the slayer as soon as he was able. Assignment of Trafflcmen John Dugan and Robert Taylor to the detective department, and the assignment of Lieut. Charles Sumner, special investigator for Chief RikholT, on the case. Establishment of robbery as cause for the murder instead of the theory that a rejected suitor committed the murder. Further investigation as to the whereabouts of Mrs. Whelchel from the time she left home at 6:30 p. m. until seen at the Lyric Theater dance hall at 10 p. m. Whom she was with and where she was is regarded ns the most important clew to be unearthed at present.

DR. WILHELM MARX IS READ OF NEW GERMANCABINET Stresemann Made Foreign Minister —Formed Subjec' to Reservations, By CARL D. GROAT, United Pres* Staff Correspondent. BERLIN, Nov. 30. —The German government announced today that, subject to reservations, a cabinet has been formed with Dr. Wilhelm Marx as chancellor and Dr. Stresemann as foreign minister. The reservations are due to uncertainty over the eventual reception the announcement will receive. The ministry is a minority one. established by risky political compromises. The provisional cabinet will include: Dr. Marx, chancellor. Stresemann, foreign affaire. Gessler, defense. Luther, finance. Jarres, vice chancellor. Hamm, interior. Brauns, labor. , Hoefle, posts and telegraphs. Emininger, Justice. Schiele, food. Heinrich, economy. Partisan developments in the Reichstag today showed tho provisional cabinet was in danger before it started functioning. TWO CITIES ARE LUCKY! Kat Reductions Ordered by State for East Chicago, Bluff ton. Rate reductions in "two Indiana cities involving about $30,000 annual savings to consumers, were to be ordered by the public service commission today. Water rates of the East Chicago and Indiana Harbor Water Company, a C. H. Geist utility, were to be reduced, which would account for a $20,000 annual saving. Electric rates at Bluffton were to be reduced ■ with a saving of $9,300 a year. Water rates at Bluffton were to be Increased, meaning about $4,500 additional revenue for the water plant. Both orders came as a result of the commission’s Statewide investigation of utility rates.

Lloyd George Will Write Views on U. S. for Times ELOYD GEOROE’S Impressions of the United Statea and Canada, gained in his recent American tour, will form the subject of the first two articles In the now newspaper series which the former British prime minister has contracted to write, beginning in December, for The Indianapolis Times and several score other leading newspapers published in all of the gTeat cities of Eui-ope, Asia, Africa and Noith and South America. Mr. Lloyd George had planned to begin cabling this news series for publication this week, but has Just flashed a message under the sea from London he is finding the present British election campaign so arduous it will be impossible to get down to his Journalistic Job until after the votes are counted. Mr. Lloyd George has carefully refrained from giving any hint of his American Impressions save In a brief paragraph Jn his New York speech, so that his first two articles are eagerly awaited on this side. These impressions have been reserved exclusively for The Indianapolis Times and a limited group of great newspapers against tempting bids from powerful magazines. Following the American articles, Lloyd George will cable his always Interesting comments on current International events, with particular emphasis upon topics of Interest to American readers. There will be thirty articles In the new series and, according to Norris A, Huse, genereal manager of the United Feature Syndicate, who was responsible for Lloyd George’s Joumallstlo efforts, the little 'Welchman is being paid the highest price per wpy4 in history. . UNITED FEATURE SYNDICATE. INC.

INDIANAPOLIS, FRIDAY, NOV. 30. 1923

ROBBER IS MOTIVE IN in? Purse Belonging to Slain Girl Is Found by Police, Robbery was again brought forward today as a motive for the murder of Mrs. Helen Whelchel, 1854 Applegate St., with the discovery of her pocketbook by Ray F. Underwood, 335 S. Taft St., on the north side of the Rockville Rd., fifty feet west of Lynnhurst Dr. The pocketbook, of gray leather, was found open and empty, with the exception of a small coin purse. It was identified by Miss Edna Uphaus, 31 Hendricks PL, as one carried by Mrs. Whelchel. Two spots of blood found on the inside of the pocketbook are the only additional clews. Pocketbood Found With tho dlacovery of the pocketbook detectives redoubled their efforts to tracs tho slayer who kidnaped Mrs. Whelchel at lowa and East St., at midnight Tuesday and later drove to the High School road bridge, one mile north of Ben Davis. The body was thrown over the bridge between the tracks of the Big Four Railroad, nix and one-half miles west of Indianapolis. The body was found by section men Wednesday morning. “Her lost slipper Is near that pocketbook, and when I’m able I’ll take part in this search myself,” said tho father, Francis Hager, Jr.,' today when Informed the pocketbook had been found. Detectives believe the murderer looted t’ a pocketbook while returning to the city after tossing the body over the bridge. The fact that it was found on the north side of the road indicated it was thrown from an eastbound car. The pocketbook was lined with yellow silk with two long blue sets on either side. Jewelry Missing Miss Uphaus believed Mrs. Whelchel did not have more than $2 or $3 in money with her. On the night of the murder however, she wore a wrist watch on her right arm and a (Continued on Page Eight) FARMERS’ SHORT COURSE TO BE HELD JAN. 14-18 State Coni and Potato Shows Will Be Given at Same Time. Bv Times Special LAFAYETTE. Ind., Nov. 80.—The annual farmers’ short course- will be held at Purdue University, Jan 1418, Dean J. H. Skinner of the school of agriculture today announced. Plans are being made for the program which promises to be the best course ever held. The business side of farming will be stressed. The State oorn and potato shows will be held In connection.

Indiana Governor Faces Trial

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WARREN TERRY McCRAY

Crash Moves Come in Rapid Sequence

Events have moved rapidly in the financial crash and subsequent investigation of the affairs of Governor Me Cray. I Aug. 80—Meeting of creditors called and McCray announces he will turn over property to creditors. Aug. 31 —Creditors meet and appoint temporary committee. Sept. 7—Permanent creditors’ committee named and plan for taking over property drafted. Sept. 13—State Savings and Trust Company named trustee for McCray property. Sept. 20—Seven suits filed against McCray at Kentland. Sept. 21—Announcement made Republican State committee will consider attitude toward McCray. Sept. 22 —Marion National Bank asks for grand jury investigation of McCray affairs. Oct. I—Republican committee meets with McCray refusing to attend. No action taken. Oct. 2—John Moorman, friend of McCray, declares President Coolidg© was responsible for G. O. P. committee meeting. James P. Goodrich replies. Oct. 3—White House denies Presi dent’s connection with meeting. Oct. 4—Homer Elliott, United States district attorney, denies Federal Investigation is under w r ay. Oct. 6—Grand Jury Investigation started. Oct. 6—Creditors accept trust agreement. Oct. B—Grand Jury investigation resumed after adjournment over weekend. Oot. 9—Men whose names appear I on McCray notes deny Governor had authority to sign them. Oct. 10—Two men whose names appear on notes testify before grand Jury. Oot. 13.—The State withdraws $60,000 in deposits and the Discount and Deposit Bank of Kentland, of which McCray was president, is closed. Oct. 15.—Forgery charged in a suit filed here by the Brownstown Loan and Trust Company. Oct. 20.—Governor McCray admits In answer to bankruptcy petition that he borrowed $165,000 from the State board of agriculture. Oct. 22.—1. Newt Brown, secretary of the board, denies McCray borrowed the money, declaring it was to have been deposited In the Kentland bank. Oct. 24.—William Darroch, receiver for the bank, says not one cent of the agriculture board money ever reached that Institution. Oct. 29.—Agriculture board meets to discuss McCray loan. Oct. 80.—Grand Jury at Noblesville starts Investigation. Oct. 31.—Judge James A. Collins of the Criminal Court asks for an appropriation of $6,000 to conduct grand Jury Investigation here. Nov. I.—MoCray bankruptcy case referred to referee despite protest of Governor’s lawyers. Nov. 9. —County council appropriates $5,000 for grand? Jury Investiga-

Entered as Second-class Matter at PostofTice, Indianapolis. Published Dally Except Sunday.

tion over protest of county commis sionerß. Nov. 7.—C. W. Nichols appointed special prosecutor because of Illness of Charles W. Moores, who had been conducting the case. Nov. 14—Records of Stats board of agricultural Impounded by order of Criminal Court. Nov. 13—Hearing on bankruptcy petition fl’ed against McCray by three Ft. Wajne banks opens before Harry C. Sheridan, Federal referee. McCray Is first witness. Nov. 16—McCray admits he signed names of his farm managers to notes, asserting he had authority to do so. Nov. 19 —Hears of Discount and Deposit Bank of Kentland, of which McCray formerly was president, appear before grand Jury. Nov. 21—James P. Goodrich, former Governor, and I. Newt Brown, secretary of board of agriculture, appear beforo the grand Jury. Nov. 23—Additional bankruptcy acts charged against McCray by Ft. "Wayne banks In Federal Court. McCray asks permission to appear before grand Jury. Nov. 2G—Two members of board of agriculture appear before grand Jury. Nov. 80—Governor McCray named on eight Indictments. PUR DUE ENTERS EXHIIB ITS By United Preee LAFAYETTE, Ind., Nov. 80.—The Purdue University farm ts sending an exhibit of cattle, sheep and hogs to the International livestock show which opens In Chica go tomorrow. An exhibit of Michikoff wheat, a variety which was originated at the Purdue farm, is being entered in the hay and grain show to demonstrate the possibilities of the grain. HARTZ FACES ACTION By Ignited Preen LOS ANGELES. Nov. 30.—Possible action against Harry Hartz, racing driver, whose machine caused the death of Russell Hughes, newspaper photographer, and George L. Wade, Kansas City millionaire, at Beverly Hills Speedway Thursday, will hinge on the inquest verdict over the victims.

Grand Jury Here are the grand. Jurors who returned the indictment against the Governor: Owen L. Miller, 3933 Washington Blvd., cjment block manufacturer, jury foreman. Frank B. McNeely, 1101 W. Thirty-First St., mortician. Albert J Man nfeld, 2444 Broadway, haberdasher. Charles B. Milan, 37 Colorado stationary engineer. H qever, 2156 N. Me: 1 dljS3s§y®tftired merchant.

Many Allegations Are Contained in Bills Returned Against Governor Governor Warren T. McCray was accused by the Marion county grand jury in eight indictments today. Charges include embezzlement, grand larceny, forgery, false statements, obtaining money under false pretenses and issuing fraudulent checks. One indictment charges McCray embezzled SIO,OOO of State money. Another charges issuing false financial statements to banks. There are twenfV-four counts in this indictment, that number of banks being listed. One of the forgery indictments listed ninety-seven alleged forged notes, a count being based upon each one. Forty-nine notes are listed in an indictment charging false pretense by the use of forged notes. McCray embezzlec $25,000 from the Discount and Deposit State Bank at Kentland, Ind., another indictment charges. STATE MONEY IS INVOLVED Another indictment charges embezzlement and grand larceny of $155,000 from the Indiana State board of agriculture. Bond of $2,500 was fixed for McCray by i Criminal Judge James A. Collins on this indictment. Judge Collins said bond on the other indictments would be fixed later. He said a capias probably would not be served on the Governor before Monday by Sheriff George Snider. Tho one indictment, charging misuse of State funds, was returned in thirteen counts, the first alleging embezzlement and grand larceny of $155,000 as a total and the others setting out the transactions in detail. Witnesses whose names appeared on the back of this indictment are Harry M. Moberly, president of the State board of agriculture; I. Newt Brown, secretary; A. D. Morris, cashier of the Discount and Deposit State Bank at Kentland, Ind.; James P. Goodrich, president of the National City Bank and former Governor; Clyde A. Walb, State Republican chairman; Fred A. Simms, William M. Jones and Thomas Grant, members of the board of agriculture. The indictment charged that “on or abont June 2, 1923, ihe said Warren T. McCray, the duly elected Governor of the State of Indiana, by virtue of his office came into possession of $155,DOO of funds of the Indiana board of agriculture and did unlawfully, knowingly and feloniously appropriate and convert to his own use the said funds and embezzle tho said credits and funds of the said Indiana board of agriculture.” “Had No Funds in Bank” A bill charging forgery alleges McCray wrote checks fer $165.33, $5,000 and $1,500 on the Discount and Deposit Stato Bank of Kentland when he had no funds in the bank. The total tvas $6,665.33.

Bank Asked Probe The investigation which led to the charges against McCray was started at the request of the Marion National Bank. This bank held approximately $22,000 worth of McCray paper and was one of some 200 creditors. When the bank made the repuest, William P. Evans, county prosecutor, asked to be relieved of the duty of conducting the investigation. Evans is a son-in-law of McCray. Judge James A. Collins of the Criminal Court appointed Charles W. Moores, U. S. commissioner, to conduct the Investigation. The Inquiry was started Oct. 5. Every possible precaution was taken to insure secrecy. Policemen were stationed on the third flocr of the Courthouse, shutting off all that half the third floor which contains the grand jury room. Deep Secrecy Observed As the inquiry started Judge Collins called In the members of the jury and instructed them It was their duty to investigate all law violations occurring within Marion County. At the same time, Moores requested any one with information to present it. Newspaper men were told that every effort would be made to protect witnesses from the curious and that witnesses would be asked not to tell their names to questioners. The first witnesses beforo the Jury were Gus S. Condo, Marion attorney; E. E. Blackburn, president of the Marion National Bank, and Hume L. Sammons, Kentland attorney, who Is attorney In numerous suits filed against McCray. Later employes of McCray whose names appeared on notes were called. There was every Indication that the investigation was to be thorough. MoCray will be tried, If the case comes to trial, in Criminal Court here. Many Witnesses Called Because of the Illness of Moores, the grand Jury investigation mt first dragged along slowly. Laterl after

Forecast PARTLY cloudy and somewhat colder tonight. Lowest temperature 28 to 32. Saturday, fair.

TWO CENTS

Clarence W. Nichols, had been named special prosecutor and placed In charge the Investigation was pushed vigorously. Bankers from various parts of the State, State officials, former officials, and persons connected with McCray's financial transactions were called as witnesses. Meantime hearing on the bankruptcy petition filed In Federal Court opened before Harry C. Sheridan, referee, and McCray was on the witness stand for tile greater part of five days. In accordance with Intentions be frequently had expressed, McCray, about a week ago, wrote a letter to the foreman of the grand Jury requesting permission to appear before that body. Not receiving an answer he Issued a statement saying it would be unfair to Indict him without first having heard his testimony. Nichols stated that It would be against the law to permit the Governor to appear. Irene Castle Married By United Preen CHICAGO, Nov. 80.—Irene Castle, famous dancer, and Major Frederick A. McLaughlin, Chicago millionaire, were married here "Wednesday night, it was announced at McLaughlin’s office today. The couple left last night for a western honeymoon trip. McLaughlin Is secretary and treasurer of the W. F. McLaughlin Company, coffee Importers. He served in the World War. The major is a champion polo player and is known in other sports.

Penalty The Indiana law provides that for conviction on a forgery charge the defendant shall “be Imprisoned In' the State prison ■'ot less thar, two years nor more fourteen years and fined than $lO nor more than sl£o.