Indianapolis Times, Volume 35, Number 245, Indianapolis, Marion County, 25 February 1924 — Page 1

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VOLUME 35—NUMBER 245

U. S. ARRESTS GOVERNOR

WALSH GRILLS BASCOM SLEMP

President’s Secretary, Met Both McLean and Fall in Palm Beach, He Testifies Never Met Sinclair or Doheny. By PAUL R. MALLON United Prtss Staff Correspondent f WASHINGTON, Feb. 25.—C. Bascora Slemp, secretary to President Coolidge, met both E. B. McLean, publisher of the Washington Post, and Albert B. Fall, former Secretary of the Interior at Falm Beach. Fla., between Dec. 16 and Jan. 14, he told the Senate Oil Investigating Committee today. Slemp was called shortly after the committee resumed hearings after a week's recess in an effort to get the full truth about the naval oil lease, suspected leaks of men named in secret sessions of the committee, stock speculations by Government officials and a dollar slush fund reputed to have been used to cover stock losses by public men.

WOMAN KILLED BY EXPLOSION OF GAS Daughter of Hume-Mansur Bldg, Officer Dies of Burns, Word has been received here by John Miller, policeman at the HumeMansur building, of the death at Beaver. Pa., Sunday, of his daughter. Mrs. Dena Matthews. 32, wife of Karl J. Matthews, formerly secretarytreasurer of the Indianapolis Steel and Wire Company. Death was due to bums received in a gas explosion at the Matthews home. Matthews wai burned on the hands and arms trying to extinguish the fire. In addition to the husband and father, Mrs. Matthews is survived by a daughter, Elizabeth Ann. 8; a brother, Charles Miller, Cleveland, Ohio. And her mother, Chicago. Matthews went to Pennsylvania five months ago to accept a po-Italpr as superintendent of the Nicholw Wire and Steel Company, Rochester. Pa. DIXON IS CONSIPEFED Montana Governor Talked as Successor to Deuby. y i By United Press _ WASHINGTON'. Feb. 2o.—Governor Thomas Dixon of Montana is being considered as successor to Edwin Denby as Secretary of the Navy, according to informaion from sources close to President Coolidge. Dixon is known as ‘‘a strong Navy advocate.’* HOURLY TEMPERATURE 6 a. m 21 10 a. m 26 V a. m 2111 a. m. 27 8 a. m 20 12 (noon) 3K 9 a. 21 1 p .m 32 j

JOSEPHUS DANIELS AS THE DEMOCRATIC CANDIDATE

——iNE figure emerges untainted from this foul oil mess. T t. is O that of Josephus Daniels, for eight years Secretary of the Navy. , Not only is he untainted, but when one considers all the circumstances of his secretaryship—the pressure, direct and indirect, brazen and subtle —that was brought to bear on him every day of those eight years to give away the Navy’s oil. Daniels looms as an heroic figure and one that should challenge the admiration of the people of the United States, irrespectful of politics. But he should particularly challenge the interests and admiration of the leaders and the rank and file of the Democratic party in their search for a presidential candidate, who is qualified by reputation, character and general fitness, to lead the light during the coming campaign for honesty in Government and particularly for the conservation of the country's national resources. It will be remembered that during the entire eight years of Daniels’ regime in the Navy Department he was the object of a most vicious and malignant campaign to discredit him and drive him from office. He was pictured as a man unqualified for the position and held up to public ridicule by a certain section of the press. A certain New York humorous weekly, with Nation-wide circulation, was unceasing in its efforts to make of hfm the great national joke. It was strongly suspected then and is now certain that this campaign of abuse against Daniels was an organized conspiracy financed by the oil interests who were trying to steal the Navy’s oil and knew they could not do it while it was in the custody of a man of honesty, courage and intelligence. " MOVEMENT IS OUTRAGEOUS And so the outrageous spectacle was presented of the attempt to ruin a man officially and personally because he possessed the very qualities which pre-eminently fitted him for high public position. i * Nothing that "Wood Vow Wilson did as President of the United States redounded more to his credit than his inflexible and unwavering support of Daniels during the eight years of his presidency. When Daniels retired from the office of Secretary of the Navy his record for personal integrity was spotless. His k record for official efficiency had never been equalled in the Navy Department and the oil grafters had been kept at bay. SIXTY-SIX DAYS AFTER DANIEL® RETIRED,

The Indianapolis Times

Slemp told the committee he advised Fall and McLean to vna.ke a “clean breast” of everything to the Senate committee and straighten things out. ♦ Before slemp testified. Charles Lyddans, vice president dt the FedI eral American National Bank, disj closed from bank records McLean had a balance at that bank of $2,000 at the time when, according to McLean’s testimony, he loaned Albert B. Fall SIOO,OOO. McLean said he wrote checks to that amount, for Fall, who returned them uncashed later and they were destroyed. Slemp was questioned by Senator Walsh. Montana: “Were you at Palm Beach during December and January?” asked Walsh. “I want to Florida on Dec. 16 and returned .An. 16 —half of that time in Palm Beach.” “Were you there when I questioned McLean?” / “Yes. sir.” “Where did McLean stay?” McLean at Home “He was at his residence about three blocks from the hotel.” “And was Secretary Fall there at ibe-aame time?” “Secretary Fall arrived there, I tink, on Dec. 31—I have checked is up since you called me.’* “And remained there how long?” “Until Jan. 14." “Did you meet either of these gentlemen while there?” “I met both of them. I will say I was in Palm Beach about fifty per cent of the time. I would meet Mr. McLean occasionally, accidentally, sometimes on the golf course, I never met Fall at any place but at McLean's house for dinner.” “Do you know how long before I came to Palm Beach to question Mr. McLean my coming was known?” Walsh asked. “I really couldn’t say,” Slemp answered. W T alsh hoped to bring out that (Continued on* Page 11)

President’s Secretary Quizzed in Oil Probe CAMPBELL BAS%)M'* SLEMP TONER OFFERS TO SIGN FOR HCRAY Governor Has Enough Bondsmen, Candidate Learns, Edward C. Toner, Anderson, candidate for the Republican nomination for Governor, today offered to go on the bond of Governor McCray, when the latter was arrested on Federal indictments charging using the maiis to defraud and violation of the National banking laws. Toner appeared at the office of the United States marshaj._ivhUe.-the Governor and his bondsmen were signing the bond in a back room. Toner went to the door and knocked. Fred J. Robinson, State purchasing agent, ap peared and they conversed ’or a minute. Robinson went baok intc the room and Toner left. He explained Robinson had told him there w*re sufficient signers. MAN FOUND DEAD IN BED C. >L Armstrong, Oxford Hotel, Found Prostrate—Coroner Investigating. C. M. Armstrong, 50., of the Oxford Hotel. 117 J 4 S. Illinois St., was found dead In bed today. Hotel attaches said Armstrong had lived there four months. Coroner Paul F. Robinson said death was due to heart trouble.

DANIELS DENBYrHIS SUCCESSOR, WAS PREPARING TO TURN THE NAVY OIL OVER TO ALBERT FALL AND THE FIRST STEP HAD BEEN TAKEN JN WHAT HAS DEVELOPED INTO THE GREATEST SCANDAL IN THE NATION’S HISTORY.

INDIANAPOLIS, MONDAY, FEB. 25, 1924

Times Is in New Home

The Times isvbeing published from its new home, 214-220 W. Maryland St., today. Most of the task of moving the editorial department and the heavy machinery of the composing room was accomplished Saturday night and Sunday. The business office and part of the pressroom equipment already had been moved. The result is that the new plant was completely equipped and ready for business this morning. Not an edition was missed as a result of moving.

LUDENDORFF FACES TRIAL FOR TREASON German War Lord Goes BefoVe Bavarian .Court, By United Press MUNICH, Feb. 25.—General Ludendorff, one of Germany’s greatest war lords, will be tried for treason Tuesday, together with Adolf Hitler and seven others. Elaborate police precautions were taken today to prevent possibility of a monarchist coup. Reinforcements of police arrived at Munich, while the central government stands ready to lend assistance to Bavarian authorities. The trial, by a Bavarian court of seven judges, will be held at the war academy. The crime of which Ludendorf and Hitler were accused was plotting against the state. $750 HEART BALM GIVEN Hugh McGinnis Obtains Judgment in Alienation of Affection Suit. The last chapter in a tangled romance has been written, now that Hugh McGinnis, 201 N. New Jersey St., obtained a $750 heart balm verdict from Dr. C. Roland Perdue, beauty doctor. 411 State Life building, at Greenfield. McGinnis alleged alienation of the affections of his wife by Dr. Perdue. According to Fred McAllister, attorney for McGinnis. Mrs. McGinnis obtained a divorce from her husband March 2, 1922. On May 29, 1922. Perdue obtained a divorce from his wife. Dr. Perdue and Mrs. McGinnis were married on the same day.

The Times now is situated in a new building, erected for the express purpose of publishing a newspaper and modernly equipped. Os course, as every housewife knows, there are many little odds and ends that must be attended to after moving is accomplished. Permanent arrangement of furniture and many other details must still be settled. As soon as this is done, The Times wants its friends to visit the new building and look it over.

WILSON ESTATE IS LEFT TO WIFE Unmarried Daughter Gets $2,500 Annually, B’/ United Press WASHINGTON, Feb. 25.—Woodrow Wilson left virtually his entire estate to his wife during her lifetime under terms of his will filed for probate today. Margaret Wilson, only unmarried daughter, is to receive $.500 annually as long as she remains unwed. Upon Mrs. Wilson's death the estate shall revert to his three daughters, share and share alike. The children also are bequeathed jewelry, clothing and other personal belongings of the first Mrs. "Wilson. COX FILES IN OHIO Former Governor Campbell Named aa Second Choice. Bn United Press • COLUMBUS, Ohio, Feb. 25.—Former James M. Cox, Democratic nominee fnr President in 1920. filed his candidacy for the 1924 nomination in the Ohio primaries today. At the same time was filed declaration of former Governor James E. Campbell. Columbus, as second choice and Cox’s authorization of Robert S. Haves. Columbus, as his representative. THREE DIE JIN CRASH Professional Gambler and Two Women in Auto Hit by Train. Bn United Press ST. LOUIS, Feb 25.—M. J. Conner, professional gambler, and two women were killed today when Conner drove his automobile Into a Missouri Pacific freight train on a grade crossing. Conner and an unidentified young woman were kilted instantly. Miss Zelma Wander, 22, died in a hospital.

Editorial

On April 19,1922, Daniels wrote a letter to Senator La Foilette in response to a letter from him, which is of special signficanee at this time. It was printed in the Congressional Record of April 21, 1922, at the request of Senator La Foilette as part qf the latter’s attempt to prevent and expose the conspiracy to steal the Navy oil reserves. Tt was written NOT AFTER a Teapot -Dome scandal, BUT TO PREVENT ONE. This letter seems to provide a perfect platform for Josephus Daniels as the Democratic presidential candidate, should the Democratic party have the intelligence to nominate him. Listen to what Daniels said two years before the oil scandal had been uncovered: “RALEIGH, N. C., April IS, 1922. “Dear Senator: “I devoted many hours while I was in office and some of them very strenuous ones, in an effort to preserve intact the oil reserve that had been set aside for the Navy, “I, with the Attorney General, fought, contested and opposed the action of the land office in the Honolulu land question, which would have given oil lands worth many millions of dollars to a company which, in my judgment, had no shadow of right to them. “To the very last days of my administration I opposed all the suggestions toward the leasing of those oil reserves set apart by President Taft and President Wilson. •SET APART FOR THE NAVY “During the war there was a hard drive by those who claim ownership to those lands and the matter was so pressed then that the Navy had a stand in the way of exploitation of this oil reserve. Even then I opposed the proposal. I felt that this oil land had been set apart for the Navy and that exploitations by those who claimed an interest was not necessary to win the war and the day would come when the Navy must depend upon its own oil reserves for a part of its supply. “Ten days before March 4, 1921, I more than once saw the Secretary of the Interior (Payne), to whom application had been made to lease the oil and I presented the Navy's claim and opposition to any lease of these reserves. Secretary Payne refused to approve the application for leases and he was wise and farseeing in so doing. I never at any time even inferentially agreed to proposals made, but HELD STEADFASTLY FOR THE WHOLE EIGHT YEARS TQ THE PROTECTION OF THESE RESERVES

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

One Actress Draws Line; Another Doesn’t hinff A-wjjw ' fi*"' foe* " w - ‘ * r § -O' A | | ELEN MACKELLAR (top) lI—II refused to play opposite a I LAI ne gro in the forthcoming Breadth way production, “All God’s ChUlun Got Wings,” by Eugene O'Neill. Maty Blair (bottom) accepted the part. FLEE BAREFOOT IN SNOW Woman and Child Escape Flames W hich Raze Clay City Home. Bn United Press BRAZIL, Ind., Feb. 25.—Mrs. Grover Gibbens and her small daughter fled ! barefooted and with only their nightj clothing on through the snow Sunday night when they awoke to find their home near Clay City in flames. The house was destroyed. Nursery School Topic Dr. Helen T. Wooley will discuss "The Nursery School and Its Educational Importance” Tuesday at 8 p. m. before the Progressive Education Association at the Central Library.

M’Cray Is Charged With Violation of Postal and National Banking Laws 4 Political Friends Provide Bond of $20,000 —Former Kentland * Cashier Indicted Warren T. McCray, Governor of Indiana, voluntarily appeared at the office of Linus P. Meredith, Uiflted States marshal* today and surrendered on two indictments returned by the Federal Grand Jury Saturday, charging him with use of the mails in a scheme to defraud, xiolation of national banking laws and conspiracy to violate national banking laws.

Two bonds were given.* SIO,OOO on toch indictment. They were signed by State Senator William fc. English, State Senator Robert L. Moorhead. Fred Cline, ember of the board of park commissioners; Eben H. ’Wolcott, State bank commissioner, and Clarence E. Edwards. State Official in Party McCray was accompanies to the Federal building by John C. Ruckelshaus and George M. Barnard, two of his attorneys, and Fred J. Robinson, State purchasing agent. Ths bondsmen had met with McCray at the office of James ,W. Nqgl, 919 Lemcke building, one of the Governor’s attorneys, and preceded the Governor to the Federal building. Arraignment was set for March It. The indictments are voluminous, the one charging violation of postaj laws being in thirteen counts, the other in eighteen. Representations as to his financial condition and as to the validity and ehaareter of ‘cattle paper” on which the Governor obtained loans from banks in Indiana and adjoining States were made the basis of the indictment charging use of the mails in a scheme to defraud. One hundred and seventy banks were defrauded, the indictment charges. Associate Banker Named The National bank indictment is based on acts said to have been committed by the Governor while president of the defunct Discount and Deposit Bank of Kentland. In brief, it charges that the Governor misapplied funds of the bank, falsified records and reports tt> the Federal Reserve Bank of Chicago, and abstracted notes held by the bank. § Amos D. Morris, who was cashier of the Discount and Deposit State lank, also was indicted, Homer Elliott. United States district attorney, announced. He has not been arrested. Morris is charged jointly with McCray with violating the National banking acts. His bond has been fixed at $5,000. It is the contention of the Govern(Continued on Page 11)

AND HOLDING THE OIL IN THE GROUND FOR THE USE OF THE NAVY. “If you will apply to the Navy Department, you can obtaid letters written by me with reference to these oil lands, and you will see that if anybody suggested that I at any time was willing to make any concession looking toward the leasing of these lands, their statements are not borne out. by facts. “If you will have your secretary over my annual reports you will find that I have touched upon this matter many times, and in one you will fin<# an appendix which will give you several of my references to%ese oil lands, showing why these reserves ought to be preserved. “You may be interested in knowing that when I first looked into this matter, when the first application was made, I found that the claims on the navy oil reserves were asked for in the names of parties working in the stockyards in Chicago, who, upon inquiry, declared that they had never made application for the oil lands, and the applications presented bearing their names were in fact signatures that they had made in Chicago, supposing that they were signing a petition for an election. “Many of these applications were grossly fraudulent and nearly all of them were made after President Taft set the reserve apart for the use of the Navy. HEARINGS WILL GIVE STORY’ “The hearings the Public Lands Committee of both the House and Senate-will give you the story as it came out and will show the position of the Navy Department while I was secretary. v “The persistent attempts to lease these lands began in 1913 and were kept up until my term of office expired. It was a battle during my entire term, and I was happy upon retirement to private lifs that the Navy Department, aided by Attorney General Gregory and Secretary Payne, BLOCKED THE INSIDIOUS PROPAGANDA TO EXPLOIT THESE RESERVES. “In 1913, after conference with the Department of the Ir. terior, the Navy Department, upon the policy of build ing all naval ships as oil burners. The experiences of the wav demonstrated the wisdom of the course. “IN MY JUDGMENT, NOT ONE ACRE OF THE NAVAL RESERVE SHOULD BE LEASED, AND CONGRESS SHOULD SET A FACE OF FLINT AGAINST THE PRESENT EXPI.OU TATION. Sincerely Yours, - “JOSEPHUS DANIELS^*

Forecast PARTLY cloudy tonight and Tuesday. Not much change in temperature. Lowest temperature tonight about twenty degrees above zero.

TWO CENTS

1 How He Came OVERNOR M’CRAY took every precaution to dodge pubt- licity in connection with hia arrest. He dashed from office of Attorney James W. Noel, 919 Lemcke building, ' to waiting auto"j obile. Drove north J in Pennsylvania St. • * I to Ohio, seeing h group of waiting 1 newspaper men. and photographers, I bis car continued 1 northward to Vermont St„ west to Meridian, south of Ohio, where group had shifted to west entrance of building. i Car turned west in Ohio St. to CapsI toj Ave.. north to New York St., west to Pennsylvania St. and into the back : entrance of Federal building, where j ail is unloaded. Went up to marshal’s office in eleva- | tor from basement. How He Left | . I EFT baok marshal's I I office, where he was conL. I fronted by reporters. Rej marked, “I have nothing to say.” Went down ele- | rr.i vator to basement. ; Left basement by bjgy mail entrance. Entered closed car with all the ffl ft' 'fUf curtains drawn. A —Car shot out of west entrance tq mail subway. State Iliflfle .Meet Next Month. € Brig. Gen. Harry B. Smith, president of the Indiana State Riflfle Association, announced today a tentative program is ready for the annual riflfle meet next month at Culver, Ind*