Indianapolis Times, Volume 38, Number 162, Indianapolis, Marion County, 13 October 1926 — Page 1

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VOLUME 37—NUMBER 162

STEPHENSON? HERE? TALKS TO JURY

MARONEY VISIT PROBED BY U. S.

REED QUIZ IN INDIANA POSSIBILITY Fiery Senator Not Expected to Overlook G. 0. P. Chairman’s Act. Entrance of the election investigation committee, headed by United States Senator James Reed of Missouri, into Indiana to dig clear to the bottom of the scandal growing out of the Thomas H. Adams charges as forecast today by the issuance of a new statement by Clyde A. Walb, Republican State chairman. Walb, countering the charges of Adams, Republican editor, who has been investigating ''Stephensonisni” in Hoosier politics, that there was widespread corruption, came back with the charge that a syndicate of international bankers, backing the World Court, are trying to defeat Republican candidates and are pouring money into Indiana with which to debauch the election, Reed Is Interested This persons conversant with the situation said, could hardly be overlooked by Senator Reed, the man who tore the lid off of political rottenness in Pennsylvania and Illinois this summer. Walb made no reply to The Times open letter asking him to join in calling Senator Reed to investigate the Walb charge. “Anything l have to say in regard (Turn to Page 2)

AN OPEN LETTER

To CLYDE WALB, Chairman of the Republican Party,' Indianapolis, Ind. Dear Sir—ln a letter 1o Senator Borah, issued by you last night, if you are correctly quoted in the Indianapolis Star, you make grave charges that need an investigation and proof at once. If there is a sinister attempt by international bankers to corrupt this election by slander, if men in every precinct have the dollars of these bankers in their pockets, it must lie shown and shown at once. Tn your statement you are quoted as saving; “There is evidence everywhere that international bankers on Wall street have their money in every prcinct of this State in the hands of the fakirs who pretend to have something up their sleeves and are putting on a probe and at every hand we see the activity of this outfit attempting to defeat our senators and congressmen on account of their stand in the United States Senate and Congress on the League of Nations and the payment of foreign debts. “This is the political story in Indiana.” The Times commends you, Mr. Walb. for your definiteness and your unequivocal statement. It is taken for granted that your letter to Senator Borah was not hasty, as it was discussed with a member of the Coolidge Cabinet before it was written. Here is a crime, if your charge be true,, so great that it is not to pass unnoticed and unpunished. If that charge be true, then men can be defeated by money in this State, the same charge that was made in the'relayed accusation of Stephenson from his prison cell. W When the wholesale charge of bribery, corruption and fraud was made, The Times demanded a full anil complete inquiry. The Times then asked Senators Watson and Robinson to join in an appeal to Senator Reed. But they made no answer. Now that you have hurled your charge at those you say are engaged in a gigantic conspiracy to debauch and defame the State, The Times once more demands that the inquiry be made by a competent investigating committee. , The people must know these facts before election. The committee headed by Senator Reed has general confidence and respect. It has proven its efficiency and its ability to discover just such conspiracies as those you charge now exists in this State. The people of this State will not be compelled to depend upon inquiries made under conditions which make* for inefficiency—a prosecutor without a for investigators nor an officer of the law at his command. Senator Reed will bring the power of the United States Government with him. Will you join a demand which The Times today is making of Senator Reed that he come to Indiana and prove your charges and all other matters that may affect elections'? Surely you want the chance to prove your grave charge and will not hesitate or delay. BOYD GURLEY, Editor. COMMENT Seen at the Republican State headquarters today. Chairman Walb said; “Anything I have to say in regard to this matter I will say to Senator Reed. “I will be glad to tell Senator Reed everything I know.”

The Indianapolis Times

Agent From Washington Talks With Federal Man Who Saw Stephenson. WILL NOT SAY ANYTHING Government Desires to Know Who Sent Him. Federal investigation of the visit of Department of Justice Agent John J. Maroney to D. C. Stephenson at the Michigan City prison Saturday, was under way today, it was learned. An agent from Washington, seen about the department offices, had several talks with Maroney. Department officials refused to comment on the situation and Maroney would not reply to questions. Aware of Statement It was known that the Washington agent, was aware of the statement of Tom Miller, Muncie attorney, who visited Stephenson Saturday, after Maroney had seen him, and who said Stephenson declared he had “made a compromise with Maroney." It was understood the investigation from Washington began after newspapers carried Maroney’s name in connection with his visit of an hour and one-half with Stephenson. Rumors were out immediately that Maroney was sent to the prison for political purposes. Saturday, Department of Justice officials at Washington denied ordering the investigation and said they knew nothing of it and Senator James Watson issued a statement that he was not aware of Maroney’s visit. Highway Case According to information in and around the Michigan City Prison, Maroney was to have interviewed Stephenson in connection with charges made by Thomas Adams, Vincennes (Ind.) publisher, that the indictments against members of the (Turn to Page 13)

why m JURY HIP ADVANCED? Peculiar Developments in Visits of Lawyer to State Prison. These are circumstances leading up to the starting of D. C. Stephenson from Indiana State Prison at Michigan City at 3 a. m. today: 1. A grand jury subpoena was issued Monday at request of Attorney General Arthur L. Gilliom, calling for appearance of Stephenson here at 9 a. m. Thursday. This was issued without consultation with Prosecutor Remy or Special Prosecutor Ralph Kane. 2. Tuesday afternoon, Attorney John L. Kiplinger, Rushville, Ind., accompanied by L. G Julian, Evansville, former business partner of Stephqpson. conferred with Stephenson in the penitentiary. 3. Immediately following this conference, reporters for newspapers which have been unfriendly to the Adams investigation, started for Michigan City, arriving there in plenty of time to witness Stephen son's departure. Never Out of Case 4. Kiplinger returned to Indianapolis evening and announced that he had never been out ot he Stephenson case, although Saturl->- Stephenson had given to Attorney Thomas R. Miller of Muncie, Ind , an order that all papers in the Madge Oborholtzer <ase. concerning his appeal, be turned over to Miller. 5. Julian left the prison for Chi eago and did not return to his home in Evansville. His wife at Evans ville had two long distance calls from him and professses Ignorance of his rhieago address. 6. Prosecutor AVilliam H. Remy was not informed as the purpose of bringing Stephenson here a fullday before he was to appear before the grand jury. 7. Warden Walter H. Daly of the prison said Stephenson was not sent here today in response to the writ of habeas corpus issued by Superior Judge Sidney S. Milller requiring Stephenson’s presence here at 2 this afternoon. 8. Attorney General Gilliom said he would file some motion in the habeas corpus case. Kiplinger after a conference with Stephenson in Marion County jail today said he would represent Stephenson in all civil matters. He refused to comment further. Attorney Miller was denied admittance to Stephenson. Stateme j in Paper One of the sensational incidents of the day was the publication by the Chicago Herald-Examiner of this statement as the lead of its story on tile Stephenson scandal: “That I). Stephenson, former Klan czar and political dictator of Indiana has sold out to the very interests lie supposedly was about to expose was Indicated today by a series of peculiar developments.” Meanwhile, Kiplinger announced that he would carry on Stephenson's appeal for him. Miller, placed in a peculiar position by Kiplinger’s announcement that he (Kiplinger) is heading Stephenson's legal staff, sal<j he would go to see Stephenson to find out just what it all meant. He declared that when he talked with Stephenson in prison last Saturday, just after John Maroney, Indianapolis Federal agent had seen Stephenson, Stephenson said: “Damn it, I made a compromise with Maroney when I should not.” RATS ATTACK CHILDREN Hil I nit erf Print UNION CITY’, N. J.. Oct. 13. Dorothy JarlingT4, and Edward, 8, were so severely bitten by rats while they slept that they had to be taken to a hospital. Their parents were unable to drive off the rats and were forced to call in neighbors to help. TAKE OVER PHONE COMPANY Bn I'nitnl Print WASHINGTON, Oct. 13.—The Southern Bell Telephone and Telegraph Company was authorized by the Interstate Commerce Commission today to acquire the Eastern Kentucky Home Telephone Company.

*Stevie / as Guest, Served Jail Food Marion County jail attaches served this menu to D. Stephenson for lunch: Shoulder hone, cabbage and potatoes, butterless bread, and water. Stephenson was served the same food given other prisoners.

INDIANAPOLIS, WEDNESDAY, OCT. 13,1926

TELEGRAM Indianapolis, Indiana, October 12,1926. Senator James A. Reed, Kansas City, Mo. Tonight Chairman Clyde Walb of the Republican party, in an open letter to Senator Borah given to the press said: “There is evidence everywhere that international bankers on Wall Street have their money in every precinct in this State in the hands of the fakirs who pretend to have something up their sleeves and are putting on a probe and at every hand we see the activity of this outfit attempting to defeat our Senators and Congressmen on account of their stand in the United States Senate and Congress on the League of Nations and the payment of foreign debts.” The Times submits that this is the gravest charge yet made in any campaign. It submits that its gravity and directness can not be overlooked by your committee. It submits that the evidence of such a conspiracy of debauchery, if it exists, can only be properly obtained by your committee. In the name of the people not only of Indiana but of all States I ask that you bring your committee to this State and investigate this grave charge. THE INDIANAPOLIS TIMES, Boyd Gurley, Editor.

LEGION, AFTER UPROAR, VOTES TO GO TO PARIS NEXT FALL

ADAMS READOUT BY HOME PARTY County G. 0. P. Charges Plot to Defeat Ticket. 81l Times Bnerinl VINCENNES, Ind., Oct. 13. Thomas H. Adams, local publisher and instigator of the present grand jury investigation at Indianapolis of alleged corruption in Indiana polltics, was disowned by the county Republican central committee in closed session Tuesday night, it was disclosed today. The committee unanimously adopt ed a resolution, declaring Adams brought his charges solely for the purpose of defeating the Republican party next November. The resolution also charged Adams was using his party for his own personal gain and glorification. The committee, however, indorsed 'the grand jury investigation. IS READY FOR FLIGHT IjOs Angeles Brought From Hangar— Starting Times Uncertain. Bu United Press LAKEHURST, N. J., Oct. 13. The Naval Dirigible Los Angeles was brought from her hangar this morning and made fast to her mooring mast, ready for the test flight to Detroit, where she will be moored at .the Ford airport. Starting time was uncertain. The midnight weather report from Wash ington promised favorable conditions along the route, although the sky was overcast here. HOURLY TEMPERATURES 6 a. m 55 10 a. m 58 7 a. m 54 12 (noon) .... 61 8 a. m 65 11 a. m 69 9 a. m 68 1 p. m 61

Compromise on Pershing to Be Honorary Head tor Lite. Hu United Press PHILADELPHIA, Pa.. Oct. 13. The American Legion will go to Paris next fall. Voting down Colonel Harry Williard, Montana, who pleaded that the decision be delayed twenty-four hours and hinted steam roller tactics, the annual convention here today without a roll call voted to take the next annual meeting abroad. At the same time, a caucus of leaders udopted a compromise pro gram to settle the proposal to designate Gen. John J. Pershing as national commander. The caucus decided to support Pershing for anew office as honorary national commander for life and to name J. Munroe Johnson, South Carolina, for the active commandership. The deci(Turn to Page 13) BOY ON BICYCLE HURT Youth, 16, Struck by Auto at Street Intersection. • Everett Peacock. 16, of 4925 N. Arsenal Ave., was injured Tuesday while riding a bicycle at Capitol Ave. and Twenty-First St. Peacock was knocked to the pavement by a machine driven by Mrs. Floyd B. Coates, 3627 Salem St. He was taken home. \ I>RY r S ATTACK POMERENK Bu United Press WASHINGTON. Oct. 13.—The Anti-Saloon League, throwing its support to Senator Willis, Republican. Ohio, Issued today under the name of Wayne B. Wheeler, a statement declaring former Senator Pomerene, Willis’ Democratic opponent, “has the support of the outlawed brewers and Iluqor dealers."

MISGIVEN NEWLiFE LEASE Supreme Court Grants Writ of Supersedeas. Bu United Press SPRINGFIELD, 111., Oct. 13. Russell Scott, Chicago slayer, today won his fourth stay of execution when the Illinois Supreme Court ruled he will not hang next Friday. The court granted a writ of super sedeas staying the execution until the decision of the Cook County court finding him sane is reviewed. Scott is under sentence to hang for the murder of Joseph Maurer, who was slain in the hold-up o fa store in Chicago. Scott’s latest lease of life is one of at least six weeks, perhaps longer. In announcing the court’s order. Justice Stone a- ’ -■* that a review of Scott’s sanity hearing cannot be made before December or possibly next January. AMERICANS ARE FREED Permitted to Besieged Chinese City. Bu United Press PEKING, Oct. 13. Americans and British in Sianfu, capital of the province of Shensi, have been permitted to leave through the cooperation of the besieging militarists, a dispatch received here today said. LIVE SAVED; ANGRY Bu United Press CHICAGO, Oct. 13.—Revived by a pulmotor, Mrs. Georgia Larsen, 43, severely reprimanded an ambulance squad for saving her life. “I wanted to die because of ill-health,” she said. “It was no one ease’s business if I wanted to take gas.”

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

This Much Divulged by Prosecutors No Word as to What He Said.

RUSHED TO CITY UNEXPECTEDLY Not Even Prosecutor Knew He Was Coming Today—To Face Judge Miller.

Today's Developments

1. D. C. Stephenson is brought from Indiana State Prison and quizzed by Marion County grand jury on charges of political corruption, answering every question asked him, it was stated. 2. Stephenson, in county jail, to be brought before Judge Sidney S. Miller in Superior Court Three this afternoon in Hoosier Tailors receivership case. 3. Entrance of committee headed by United States Senator James Reed into Indiana inquiry forecast following charges by Republican State Chairman Clyde Walb that international bankers are seeking to defeat Senate and Congressional candidates. 4. Walb refuses to reply to invitation by The Times to join in demand for Senator Reed to investigate his charges. 5. Federal officials investigate visit of Department of Justice Agent John J. Maroney with Stephenson in State Prison last Saturday. 6. Chicago paper says developments indicate Stephenson has sold out to interests he was to expose. D. C. Stephenson, once “the power” in Indiana politics, was ha -k in Indianapolis today. He was held incommunicado in Marion County jail for an hour. He was before the Marion County grand jury, investigating charges that he could tell a story of political intrgue and graft involving many prominent politicians, for one hour. Stephenson answered every question asked him, the prosecutors announced, but refused to disclose what information he had divulged. It was said lie ivas much at ease Yvhile before the jury and sat smoking a cigar. Prosecutor \\ illiam H. Remy, in charge of the grand jury investigation, refused to discuss Stephenson’s statements or attitude while before the jury, declaring his attitude was part of his testimony. Remy asked all the questions, it was said, except one* question, which was asked by a grand juror. Then he ivas taken back to the jail, where John H. Kiplinger, Rushville attorney, who declares he is in charge of preparing Stephenson appeal of the murder charge, conferred with him. Newspaper men were denied admittance. This afternoon he was to he taken before Judge Sidney S. Miller in Superior Court Three to appear in a receivership suit in connection with the Hoosier Tailors, Inc., of which he was formerly a stockholder.

Warden Decides to Obey Jackiel W. Joseph, attorney for Herbert Wilson, receiver for the tailoring firm, said Deputy Warden Clifford Craig, in charge of the guards who brought Stephenson here, said Stephenson would be taken before Judge Miller. A writ of habeas corpus calling for his appearance before Judge Mil ler was served on Warden Walter H. Daly, Tuesday. Daly had previously ignored a court subpoena order of Judge Miller for Stephenson'appear ance here. The hearing before Judge Miller will be an attempt to learn what property Stephenson owns in Marion County. Wilson, as receiver, holds a $7,767 judgment against Stephenson, Joseph said he would question Ste phenson closely about his past finan cial deals. Court Asher, former Lieutenant of Stephenson, was taken before the grand jury after Stephenson. Stephenson was brought to the Courthouse from the jail through the underground tunnel connecting the buildings and went before the grand jury at 9:45 a. m. He left the jury room at 10:45. Prison guards and police kept a large crowd, anxious to see the exKlan chief, at a distance. Police Chief Claude F. Johnson was with his party of guards that accompanied the prisoner to the door of the jury room. “My God, hasn’t he gotten gray,” Asher, his former lieutenant, waiting to go before the jury, com mented as Stephenson walked past him. Prosecutor Remj-, Ralph K. Kane, Attorney General Arthur 1,. OilLiom and Fred C. Gause were with the jury. Stephenson left the Tndiana State Prison at Michigan City wr.ere h“ is serving a life term for the murder of Miss Madge Oberholtzer, at 3 a. m. He arrived here at 8:45. Apparently only newspapers which have been unfriendly to the investigation of charges of political corruption in Indiana when Stephenson was the law” knew he was to come. Newspaper men and ven attorneys were kept from Strpbo-ison. Remv. directing the grof’ jury in vestigation into the corruption charge did not know Stephenson was to be brought here today Stephenson had been subpoenaed to appear before the grand jury at (Turn to Page 13)

Forecast e Fair and slightly cooler tonight; Thursday fair, with rifling temperature.

TWO CENTS

SLASHES IN TAX LEVIESORDERED Sharp Reductions for Units in Four Counties. Sharp reductions In the locallyfixed levies in various taring units of Blackford, Johnson, Greene and Randolph Counties were ordered today by the State board of tax commissioners. In Blackford County the State board cut the total civil county levy from 50 cents on the SIOO to 47 cents, the Hartford City civil levy from 66.56 cents on each SIOO to 65 cents and the Licking Township levy from 42 cents to 36. Discovering a large balance in the Randolph County general fond, the tax board removed the 18-cent levy entirely. The county’s gravel road levy was reduced from 25 cents to 23. The Green County gravel road repair levy was reduced from 30 cents to 27. A total reduction of 10 cents tn the levy of the civil town of Bargersville, Johnson County, was opdered, bringing the final levy total to 85 cents. REPORT ON ENSIGN’S DEATH Bu T'nite/l Press LOS ANGELES, Oct. 13.—Accidental drowning was the verdict of a. naval board of inquest which investigated the death of Ensign Julian J. McShane of the U. S. S. Tennessee, said to have followed a party at the California Yacht Club last Friday night at Wilmington. I’ivtl authorities said that McShane’s body Indicated he had been slugged to death. FIGHTS SOUTHPORT FIRE The Indianapolis fire department was culled on by residents of South port, Ind., to help In fighting a flre which menaced several busfnes.-. places early this morning. The fltv started In the Uestaurnnt of James Konnick, a two-story brick building near the Pennsylvania railroad tracks. It was discovered by Mrs. Mattie McCarty, who lives next door.