Indianapolis Times, Volume 38, Number 218, Indianapolis, Marion County, 17 December 1926 — Page 1

Home Edition T' Santa Claus Opporre Panted On

VOLUME 37—NUMBER 218

REBATES SHE GIVER BV UTILITIES IN HUM BE LAW, CHARGE OF GLUM Light Companies’ Practice Costs $500,000 a Year, Attorney General Asserts AT MERGER PETITION HEARING Says Private Ledgers Are Kept Assails ‘Character Assassins.’

Merger Developments

Public service commission decided it has jurisdiction on amended merger petition and confers on date for hearing on merits of case. Gilliom, at hearing on jurisdiction, declares he has been told utilities are still granting rebates in violation of law and attacks stand of Indianapolis News. Figures of commission engineers giviaig reproduction value of the two companies at $33,567,595 are turned over to merger opponents. The two Indianapolis electric utilities still are rebating to favored power users. These rebates cost the “dear people” a half million dollars a year. Among others who have received. rebates is the 11 Indianapolis News. The utility companies keep private ledgers which are not available to auditors of the Public Service Commission in order to cover rebating.

But the Baron*s Plea Was in Vain “No! No! No!” whispered Harley L. Clarke, utility baron as he tugged Janies \V. Fesler’s coat tail near the close of the hearing on the utility merger, Thursday afternoon. Commissioner John W. McMcCardle was announcing the fact that he believed all sides should be given ample time to study the valuation figures released by the commission today. Clarke was doing his best to get Fesler, counsel for the utility petitioners, to interrupt McCardle with a protest against the granting of “too much time,’’ but Fesler paid no attention to the gentleman, who says he has a “right to speak for the Merchants Heat and Light Company” although his name does not appear as a stockholder or officer.

G. 0. P. PRESS BODY SECRETARY QUITS Feudner Assails McDermond Regime. Disagreement with J. Frank MeDermond, Indiana Republican Editorial Association president, is given as the cause of resignation of Will O. Feudner, Rushville publisher, as association secretary, in a letter re>ceived by members today. “If your association wants to uphold all that has been done by many politicians and office-holders, and stay hitched with some members of the assication and State committee who want to ‘entertain and muzzle the press for the sake of “politics,” ’ the members will now follow McDermond arffl the commitees he haa named for the winter meeting,” Feudner wrote. Feudner declared McDermond reversed his position after instituting the present investigation of alleged political corruption carried on by Thomas H. Adams aVid said that all statements approving the investigation issued by Adams from McDermond can be proved as authentic. The charges made public by Adams brought about the Marion County grand jury probe of "Stepliensonism.” CHILD BURNS TO DEATH Bu United Press SULLIVAN. Ind., Dec. 17—Three, year-old Alice Deckerd burned to death here Thursday night when her clothing caught fire from the open grate before which she was playing. Her mother found the child in flames sitting in the corner of the room. The body was entirely burned and the child died almost immediately. Bit t'nitert Press PHILADELPHIA, Pa., Deo. 17Four masked bandits nattily dressed, armed with sawed off shotguns today held up two employes of the F. W. Maurer and Sons textile mills as they -wer* about to enter the plant, robbed them of a $7,715 pay-rolll.

The Indianapolis Times COMPLETE REPORT OE WORLD-WIDE NEWS OE THE UNITED PRESS

Entered as Second-Class Matter at Postoffice. Indiananolis.

These are Charges made by Attorney General Arthur L. Gilliom in an argument before f|ie public service commission during the light merger hearing late Thursday. He made the charges on what he said was hearsay evidence, qualifying all his remarks by such phrases as "I am told,” and “I am reliably informed.” Cites Penalties The attorney general called attention of the commission to provisions of a statute which make rebating a crime, set sentences and fines as penalties for utility officers convicted of such practices and subject those who receive rebates to fines. He recommended that the commission investigate the reports. He suggested that commission auditors demand to see “private ledgers.” Sections 112 to 115 inclusive of the Spencer Shively Utility Act were called to attention of the commission as/having been violated by the companies asking permission to merge and by The Indianapolis News as a recipient of a discount or rebate, but no mention was made of Section 124 of the same act which places the responsibility for enforcement squarely up to the commission and its members. “Evangels of Righteousness” Denouncing those whom he termed “evangels of righteousness” and "character assassins” Gilliom was heard in absolute silence for more than thirty minutes by the commission, which had been hearing arguments on the question of jurisdiction on the amended merger petition filed by the utility interests, by the attorneys for the protesting organizations and a handful of newspaper men. It had taken Carl Thompson, attorney fdr Harley L. Clarke and the petitioning utilities, just six and onehalf minutes to answer the array of opposing counsel. A reiteration that the proposed action was not a “merger” and the plain statement that a request for a franchise from the city was not necessary as had been contended by Charles Mendenhall, assistant to corporation counsel Alvah J. Rucker, comprised the extent of Thompson’s remarks. Attorneys James W. Fesler, Will H. Thompson, Carl Mote, Koegel, all representing the utilities nodded their (Turn to Page 31)

REPEAT THREATS GIVEN MELLETT Murder Trial Witnesses Include Former Official. 81l United Press CANTON, Ohio, Dec. 17.—Threats against the life of Don R. Mellett, slain because of his editorial attacks on the vice lords of Caton, were repeated in court today by witnesses testifying against Pat McDermott, one of the trio charged with the assassination. The witnesses who told of these threats also linked the names of Ben Rudner and Louis Mazer, McDermott’s alleged accomplices, with what the State charges was an underworld conspiracy against the editor. Norman Clark, former police prosecutor, declared that on three occasions within the month preceding the reprisal murder, Mazer told him that Mellet ought *to be or would be “bumped off.”

What Commission Can Do

Section 124 of the Spencer-Shivelj* utility act, which Attorney General Arthur L. Gilliom charged before the public service commission is being violated by the utilities in granting of rebates, provides the commission shall stare prosecution of violators of the provisions of the act. Gilliom charged that the rebate practice is being protected by a method of keeping secret books and urged the commission to investigate. The enforcement section of the act: “Enforcing Provisions of Act. — The commission shall inquire into any neglect or violation of the laws by any public utility doing business therein and shall have the power and it shall be its duty, to enforce the provisions of this act as well as all other laws, relating to pubilic utilities complaint may be made by the commission or any member thereof, and when so made the action so commended shall be prosecuted by the general counsel.”—(Sec. 10052u4 Burns’ Ann. Statutes, 1914.)

JURY GETS ON GRAFT TRAILAGAIN Report on Corruption Probe • Will Be Made by Jan. 1, Says Remy.

Following announcement today by Prosecutor William H. Remy that a report on the investigation of alleged corruption In Indiana politics will be made before Jan. 1 by the Marion County grand jury, the jurors proceeded to resume their corruption quiz, neglected for some time, by questioning one witness during the morning session. The witness, Harry Pearson, brought in on a forthwith subpoena, is said to represent truck Interests and to spend considerable time around the State highway commission offices. Remy was in • nference with the grand juror most of the morning. He said the probe body, which has been occupied with other affairs, will “steam up and tackle the graft quiz full rpsed ahead.” The Jury adjourned at noon, the prosecutor leaving early, presumably to gather more evidence in the quiz. Working Niglit and Day “I have been working night and day on this investigation and intend to push it through to Its conclusion.” Remy said. Three indictments were returned during the morning, the only one made public charging Frank Rlcheter and Raymond Surber with auto banditry and robbery. ‘•■'The jury Thursday completed visits to county institutions ordered by Criminal Court Judge James A. Collins, who added that they must present a report on their inspection tour by Dec. 22. Only the actual drafting of the report remains to be finished, according to Remy. The investigation was authorized Oct. 11, after Thomas H. Adams, Vincennes publisher, made public letters smuggled out of Indiana State prison by D. C. Stephenson, former Indiana Klan dragon, declaring he could prove a net of corruption In politics during the time he was In power, if given an opportunity. Prominent Politicians The corruption, he declared, Involved many present prominent pqliticians. Governor Jackson refused to permit newspaper men to interview Stephenson In prison. Then Stephenson was brought before the grand jury. It was believed he refused to substantiate his charges, declaring if he talked further it would imperil his chances of obtaining a retrial of the murder charge on which he was sentenced, to life imprisonment. An extended hunt for a collection of documents once in Stephenson's possesion, said to prove the corruption charges, has been carried on by Remy and his aides, apparently without success. A number of important witnesses sought by the investigators have appeared before the jury only after being “missing” fop several weeks.

COEDER WEATHER TONIGHTFORECAST Temperature 13 Degrees Higher Than on Thursday. Temperature of 26 at 7 this morning, only 5 degrees below normal and 13 above the mark for the same hour Thursday, found the cold wave, to a large extent, gone from Indianapolis. With the skies cloudy, however, Meteorologist J. H. Armington of the United States .Weather Bureau said the mercury today likely would not go beyond Thursday's highest, 28, recorded at 3:30 p. m. A drop in the temperature is probable tonight. The low mark for the evening is expected to be between 15 and 20 degrees, according to Armington. Cloudy weather, wjth little temperature change, is on thd bill tot Friday.

INDIANAPOLIS, FRIDAY, DEC. 17, 1926—32 PAGES

‘Blind’ Reporter Finds That City Is Generous to Poor Unfortunate

Collects $3.09 in Hour and Twenty Minutes on Downtown Corner. By Eugene Powell People of Indianapolis are generous to the poor unfortunate. They are Imbued with the Christmas spirit of giving, it seems. I know this because I disguised myself as a blind man and begged On a downtown corner for an hour n4 twenty minutes Thursday afternoon, being given in that time, three quarters, fifteen dimes, thirteen nickk-s and nineteen pennies, totaling $3.09. Unfortunates will receive aid from this money, for it lias been turned over to the Christmas Seal fund of the Marion County Tuberculosis Association. Leaving The Times office, I hardly had arrived at Kentucky Ave. and (Turn to Page 25)

HOOSIER COLLEGE YOUTH TAKES LIFE Girl Expelled for Smoking Cigarets With Him, Student Takes Slow Poison at North Manchester.

Bu Times ftficcinl NORTH MANCHESTER. Ind., Dec. 17.—Despondency because a pretty co-ed had been expelled for smoking clgarets with him in the girls’ dormitory was revealed today as one of the motives for the suicide of Joseph Tillman, 19, sophomore at Manchester College here. Tillman died late Wednesday afternoon after swallowing slow poison Monday morning. The girl—Dorothy Papenhausen, 18, daughter of a merchant at Hinsdale, Chicago suburb, was expelled last Friday on two charges—smoking and violating a college rule by riding in a student’s auto without written permission from home. Sent Home She was sent home in care of the college dean of woman and Tillman was suspended by the College President, Otto Winger, Monday. ' Tillman immediately went to a town drugstore, bought ten poison tablets and swallowed them. When he reached home, he collapsed. Funeral services for the youth were held today at the home of his grandparents, Mr. and Mrs. Lyman Phillips. The Rev. J. R. Schutz and Dean of Men V. F. Schwalm of tthe college were in charge of his funeral. “The Lord only knows why he committed suicide,” Dean Schwlam said today. “He was not expelled, Just temporarily suspended. It is true he was caught smoking clgarets with Miss Pappenhausen, but It was a whole combination of circumstances that caused him to take his life. The girl was expelled not for the one reason she was caught smoking. She had disobeyed the college rule that forbids auto riding without permits. Also she violated dormitory hours.” Students also said that Miss Pappenhausen was expelled for having “too many parties in the dormitory." The boy’s mother, Mrs. Audrey Tillman, said'she believed "Joe committed suicide because his suspension followed another disappointment over which he brooded much more—his failure to pass an examination for West Point Academy several months ago.” Tillman attended North Manchester last year. Last August he took the West Point examinations but failed to pass the physical tests. He re-entered the college. Tilbpan was

The ‘Blind Man’ on the Job

GRIM DEA TH BE A TS TIMES SANTA CLUB Aged Woman Dies Before She Gets Presents for Her Merry Christmas —Churches Are Active.

The Grim Reaper heat Santa Claus! A dear old lady who looked forward to Christmas just like a child, was one of the "families” listed by the Times Santa Claus Club. Her simple needs were printed In the Times several days ago and Mrs. Frank Baldwin, 1424 Raymond St., ofTered to take the old lady under her wing. “I’ll be her Sanhr Claus,” Mrs. Baldwin assured. “I’ll love fixing her a basket and I’ll go around some time before

involved In other affairs, it is said. Last spring he was suspended after taking part iq a wild auto ride, but was taken back. The whole town of North Manchester is grieving over thte suicide. The youth's family is highly respected.

NI BLACK ‘ SO INNOCENT, ’ SA YSISIDOR “My boy, my boy, you are so innocent. You do not know that the people of Indiana do not have their place of law in the Statehouse, but at Republican headquarters.” This was Isidor Wulson's statement this morning to Deputy County Prosecutor John L. Niblack, when they met in Criminal Court. Niblack has had Wulson and Conrad Keller Center township Justices of the peace arrested for usurping public office. They married couples in violation of the municipal court law, which provides for only one justice, who is Edward L. Dietz, it is charged. “Do you believe there was an ulterior motive behind your arrest?” Niblack questioned. Represents People "I know, my boy, I know,” Wulson replied. “You don’t know half as much as you think,” Niblack told him. “This law represents the people of the Sttfte.” It was then that Wulson declared the laws were made In Republican headquarters." “I am a gentleman, I pay taxes and I am a good citizen of the community, yet I am arrested in the middle of the night,” Wulfson moaned. "You only speak what someone else has told you.” Moan. Too Loud His moan was a little loud and Bailiff Clarence Clegg wrapped for quiet. Nibkn k started to move off, but Wulfson grabbed him. "Wait a rrLiute, wait a minute,’’ he said. “I just want you to know that I’ll keep on holding office until the Supreme Court rules on the case, if I have to put an ordained minister in my office.”

Outside of Marion County 12 Cents Per Week. Stnele Conies

Christmas nnd see what else she needs.” Thursday Mrs. Baldwin called the Santa Claus editor. “She won’t need anything this Christmas —or ever again,” she said sadly. “When I called at the house where she lived neighbors told me she passed away several days ago. I’m so sorry.” Somewhere perhaps the dear old lady, at peace now, will still be conscious of the kindly Christmas thoughts that are following her. But there are other unfortunates on The Times Santa Claus Club list who will welcome with Joy on Christmas morning any cheer that Times readers take them. Every* day The Times publishes a list of names of needy families. They are numbered, and the families listed are worthy, because The Times obtains the names from the Christmas Clearing House. This (Turn to I’age 31)

S79,COD STOLEN BY FQURBANDITS Rob Bank Messenger in Busy Kansas City Street. Bu United Press KANSAS CITY, Mo., Dec. 17. Four bandits today surrounded W. A. Green, a messenger for the Fidelity National Bank, as he started to enter the bank building, seized a satchel said by bank officials to contain $79,000 in cash an 4 currency and escaped in an an automobile. As the robbers tied Green fired three shots at them. The holdup was staged on one of the busiest corners of the downtown district and hundreds of Christmas' shoppers witnessed the robbery. GERMANCABINET GIVES UP REINS Resignation Follows Reichstag Vote of 249-171. Bn United Preaa BERLIN, Dec. 17.—Chancellor Wilhelm Marx and his coalition cabinet resigned this evening and President Von Hindenburg accepted the resignation. Hindenburg commissioned the cabinet, which was defeated in the Reichstag today, to continue in office provisionally. The Reichstag adjourned until Jan. 19. The vote against Marx was 249 to 171 on a Socialist motion of misconfidence against which the Nationalists refused to assist in the government’s defense. Factors moving the Socialists to turn the government out and the Nationalists to refuse to assist Marx largely had to do with rival ambitions of the groups to obtain positions.

THREE CENTS

REPRODUCTION OF LIGHT FIRMS’ PROPERTIES WOULD COST ONLY $33,567,595 Commission Data Shows This Figure in Face of Request for $55,000,000 in Merger. r BOOKS OPENED TO OPPONENTS Good Will Not Included in Valuation Set by Public Engineers.

Utility Figures

Spot reproduction values as of Oct. 1, 1926, furnished by the engineering department of the public service commission: Indianapolis Light and Heat Company Electrical Plant ..,.$19,427,939 Steam Heat 780,453 Moorcsville Public Service Company 151,006 Gem City Electric Company .. M 22,326 Coal Land (Sullivan County) 570,000 $20,951,724 Merchants Heat and Light Company Electrical Plant $10,329,116 Steam Heat Plants a 1,227,539 Hot Water Steam Plants 453,440 CTaypool Hotel riant 23,461 Home Brewing Cos. Plant 682,315 It would have cost $33,567,595 to reproduce on Oct. 1 the properties of the Indianapolis Light and Heat Company and the Merchants Heat and Light Company. This is the estimate of the engineers of the public service commission. It is upon these properties that Harley Clarke, Chicago utility magnate, is asking for permission to issue over $55,000,000 in stocks and other securities to effect the merger of the two companies.

i The estimate of the engineers is based upon present prices of labor ! and materials and does not Include I any cash for working capital, any [ intangible values claimed as goodI will and “going concern,” none of those things which financiers call as intangibles, and none of the construction work in progress. Reproduction Cost The figure is the estimate of what it would cost any corporation or the city to reproduce the properties. These are the figures which were .turned over to Accountant Benjamin Perk of the Chamber of Commerce today by the commission In accordance with its promise to the opponents of the $55,000,000 merger plan. In the examination of the company books it is revealed that the two companies pursued di/metrically opposite systems of keeping their accounts. • Different Systems The Indianapolis company, with its large earnings, made its enlargements from operating expense in order, so it is asserted, to reduce its showing of profits. The Federal tax entered into this matter. The Indianapolis company was not concerned with any sale of stock and did not care to make any huge showing of profit. The Merchants pursued the different’plan of paying for its extensions and improvements from its capital account. That helped to keep its profit showing in inviting form to buyers of Insull securities. “Open to Public" “As presiding commissioner, I want the hearings in the open, where every interested party can have all the facts," said Commissioner Frank Wampler. "I tendered the information, which was completed three weeks ago, to attorneys for those opposed to the merger, but they did not take advantage of the offer. When the hearing is held it will be open and public." The commission was expected to set a date for hearing of the merger petition on its merits late today. The commissioners were in conference all morning and reassembled again this afternoon. Opening of the records of the public service commission to the public was decided on after a three-hour hearing on oral arguments to dismiss the amended merger petition Thursday afternoon. Commissioner "Wampler, in charge of the hearing, stated they had not made figures available until it was decided whether they had jurisdiction. Decision Predicted The commission decided Thursday that it did have jurisdiction, following the opinion of Attorney General Arthur L. Gilliom. rendered on Tuesday. Such a decision had been predicted by Wampler, earlier in the week, he pointing out that it was customary for the commission to follow the attorney general’s opinion in all legal matters. Gilliom was hand at the Thursday meeting and delivered an oration on support of his opinions, the commission and himself, an account of which appears elsewhere.

Forecast % Mostly cloudy tonight and Saturday; somewhat colder tonight with lowest temperature

TWO CENTS

MARION COUNTY

SMITH HESITANT ABOUT ACCEPTING PLACEJNSENATE Governor Small’s Appointee Waits While Opposition Increases. Bu United Press CHICAGO, Dec. 17.—The United States Senate will know today whether the contemplated fight to unseat Frank L. Smith as a Senator from Illinois must be begun immediately or delayed until the next Congress. Smith, whose campaign expenditureaJiave aroused a storm of indignation in the Senate, will announce today whether Tie will accept or decline the appointment of Governor Len Small, which gives him the seat left vacant by the death of Senator William B. McKinley. The Senator-designate will remain in Chicago until late this afternoon. He said that he expected to have no conferences during the day except one with Allan Moore, national committeeman for Illinois, and Smith’s campaign manager. —* WATSON MAKES APPEAL Indiana Senator Urges Smith to Refuse Appointment. WASHINGTON. Deo. 17.—A cool reception awaits Col. Frank L. Smith (Rep.) Illinois, when he cames to present his credentials in the United States Senate. Not only are Democratic Senators aroused over Smith’s primary expenditures but Republicans are concerned over Smith’s refusal to heed their warring that he refuse the Illinois senatorial appointment. Not • Senator could be found in the Chamber today who advocated seating" the Illinois Senator. So concerned have Republican leaders become over the poss’bility of Smith’s appointment that Senator Watson (Rep), Indiana, called Smith on the long distance phone and pleaded with him to reject the appointment. Smith held he had some rights in the matter and he believed he Bhould be granted an opportunity to present his side of the case. He maintained this right had been denied him thus far, but as a Senator he could present It and the newspapers would give it prominence. Outwardly at least, Republican leaders here take the position that Smith is gratifying his personal desire at the expense of the partya’ welfare. HOURLY TEMPERATURE 6 a. m 26 10 a. m 27 7 a. m 26 11 a. 28 8 a. 26 12 (noon) .... 29 9 a. m. it ... 26 1 p. m...... 28