Indianapolis Times, Volume 38, Number 237, Indianapolis, Marion County, 8 January 1927 — Page 1

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VOLUME 37—NUMBER 237

GAS COMPANY FORECASTS RATE CUT

$40,000,000 Light Merger Approved

GIT! PAYS EXTRA FOR PAVEMENT Records Show Cost of Asphalt $2.44 a Ton Less to County. OTHER BID RULED OUT Material Bought From Firm of W. Todd Young. Examination of records today showed that the city paid $2.44 a ton more than Marion County for Kentucky rock asphalt of the Rock Asphalt Company of America, sold by W. Todd Young, Coffin Trotter-Jackson-Hufflngton politician and assistant State campaign manager last election for Senator Arthur R. Robinson. This asphalt was bought for the purpose of patching city streets. An Indianapolis motorist said at city hall Thursday that a N. Meridian St. chuckhole ’ was so large that when he struck it the motor was jarred clear out of his electric automobile. Low Bid Ignored Records of City Purchasing Agent John J. Collins disclose that on Aug. 4 the city accepted the bid of W. Todd Young’s company for 100 tons of Kentucky rock asphalt at $14.09 a ton. / Records show that a bid of $12.09 a ton by the Kentucky Rock Asphalt Company was withdrawn. Collins did not permit the reporter to closely examine this bid, so the signature on the bid was not ascertained. Charles J. Hubbard, sales represents tive of this company, said he knew of no one representing his companyhaving been authorized to file a bid and then withdraw. He said it would be possible for his company to supply the city with Kyrock, its product. at a price lower than given Todd Young's concern. County Pays Less The purchasing agents records sjiow another bid of $12.09 a ton by the National Rock Asphalt Corporation, but Gebrge Schmidt, then city ciil engineer, advised that this product did not meet city specifications. Contrasting with the city bid of $14.09. the county commissioners on March 19 bought Kentucky rock asphalt from Young's concern for $11.65 a ton. Commissioners’ records show a check for $3,315.59 was paid to the firm and three car loads purchased late in June to build a road near the Speedway, according to County Auditor Harry Dunn. POLICE MAS FUGITIVEJTSCAR Fleeing Car Strikes Parked AutoJ—-Law Comes Next. When an auto chased by police crashed into a parked car and then the law's car comes along and hits the fleeing auto, it’s embarrassing. This occurred Friday night. Bc-rgt. Curtis Barge was riding on a* Investigation tour in the 600 block on Superior St., with Henry Fleming, Negro, 1348 N. lllftiols St., when he saw a man carrying a fiveualion can coming out of a building. As the man placed the container in an awaiting car occupied by a man ind a woman, Barge commanded the car to stop as it started away. No heed was paid to the warning ind Barge ordered Fleming to give base. After circling the block mes the fugitive' car crashed into i parked, car. and Fleming's car could notme stopped in time to avoid i collision with the fleeing auto. Escape was made by one of the men and the woman, but the other, Richard Cloud, 21, f 1221 Blaine Ave., was arrested on charges of operating a blind tiger, transporting and vagrancy. Theodore Getting, 1330 Belmont <we„ was arrested later on a vagrancy charge. 699 COUNTY CAR SALES December Figures Show Sedans Well in Lead. Trucks Total 89. A total of 699 pleasure cars were purchased in Marion County during December, according to statistics by the Indiana Climbing Service. Os the .otal distributed 354 were sedans. : >2 coupes, 106 coaches, 19 tourings md 68 roadsters, Fords led with 232, and 123 Chevrolets were sold. Truck sales during the same period amounted to eighty-seven, which -resented sixteen makes.

The Indianapolis Times

EXTRA Hearing Held on Proposal of Chamber of Commerce Committee. BULLETIN The commission authorized the merger on the compromise terms this afternoon. " The public service commission today took under consideration the Chamber of Commerce proposal that the merger of the Indianapolis Light and Heat Company and Merchants Heat and Light Company be permitted on :ompromise terms. After a hearing on the Chamber petition setting forth the compromise terms as agreed to by Harley L. Clarke, merger promoter, the commission went into private conference. A decision was expected at once. The commission will authorize the merger, it was believed. Representatives of the city and the Indianapolis Federation of Civic Clubs opposed authorization of the merger at the hearing. The compromise agreement provides, That the two light utilities be unified on a capitalization basis of $40,000,000. That large power j users be given a reduction of 5 1 per cent, thereby placing them on the 10 per cent discount basis now given light consumers. That a $315,000 reduction in light rates be distributed among light consumers other than the big power users, and that the Clarke interests deposit the sum of $200,000, or acceptable securities of that value, to be forfeited in case of a demand for an increase in rates within five years. The money, in such event, would go to the Chamber to be used to fight the rate increase. Attorney Frederick E. Matson, representing the Chamber, presented the Chamber’s proposal. “The Chamber of Commerce has wprked faithfully in an effort to bring about a condition that would be of benefit to the city,” said Matson. "This has been a long, laborious effort. “The Chamber was never opposed to the merging of these properties, but it did oppose the high capitalization proposed. “The valuation evidence submitted at the previous hearing was carefully analyzed by the Chamber's engineer and accountant and submitted to this committee. Albert J. Rickey, expert retained to make the Chamber’s appraisal, reported that if he completed the appraisal his final valuation would not vary more than 5 per cent from $40,000,000, Matson said. “This action of the Chamber does not in any way prohibit the city from making application for lower rates and demanding an appraisal.’ he said. Charges Violated “The Chamber/ of Commerce violated its j-reement with the other protestants in this case,’’ de dared Charles Mendenhall in his op i position to the agreement, “when they enter and in’ negotiations independent of the others.” J. W. Fesler, utility attorney, called Mendenhall's attention to the p tement of the mayor approving the action of the chamber. ' “We don’t care what the mayor said!” interposed Corporation Coun selor Alvah J. Rucker from his seat. William Bosson joined with Men denhall in his opposition to the agreement submitted. Bossom accused Commissioner Frank Wampler of already having the decision of the commission prepared. This Wampler denied, adding that he had the general form ready to insert the decision of the commission after today’s 8' oion. Fireworks were narrowly averted when Fesler pronounced one of Bosson’s statements as false and Eosson came back equally as strong. “The people we represent are th j small consumers of this city,’ paid John F. White, appearing in behalf of the Indianapolis Federation of Civic Clubs, “and should be given a voice in this hearing. “We do not oppose a merger, but we want It on the proper basis. It seems that this agreement is like a horse-trade. You don’t know until too late who gets the best of the deal. “We want a merger jn a fair basis and don’t know whether this is fair or not.” When the question came from the commissioners as who was financing the appraisal, of the properties, it was brought out by Attorney Matson that the Chamber of Commerce was defraying all expense without any assurance of outside support, and that this was the only appraisal that had been planned to submit to the commission of Jan. 31, the date set for the hearing. Boyce Objects City Clerk William A. Boyce, declaring he represented Council PresiI dent Claude Negley,*asked for a delay, saying council expects to appropriate $25,000 for an appraisal of the utility properties. The merger capitalization should no‘ be set by guesswork gnd a complete appraisal is needed, he said. He declared the city expected to aid ! if the Chamber went ahead with the appraisal, since there has been anew line-up in council and the old majority faction, which opposed the merger fight, has been placed In the (Turn to Page 13)

Entered as Second-Class Matter at Postoffice Indlanaoolis

NICARAGUAN 'REBEL FORCE SEIZE! JOHN Menace Another Where Large Government Garrison Is Stationed. SUGGESTS PEACE PLAN * Liberals Would Have American Among Mediators. Bu United Press MANAGUA, Nicaragua, Jan. B. With Nicaraguan revolutionists occupying an additional town and threatening others, and at the same time proposing a method of reaching a peace agreement, the situation in Nicaragua remained uncertain today. The revolutionists occupied the : town of Nandalme, a small village | near Granada, today, and at ati tack upon Granada, where the govI ernment has a large garrison, was ; expected. At the same time,the revolutionists were reported ready to attack Rama and, in view of this possibility, the government requested the American Legation to declare Rama a neutral zone on account of American Interests there. The Liberals Instituted their new peace move in the midst of these events, requesting appointment by their leaders of a representative to treat with the government with an agreement in view. They suggested that, with the approval of Admiral Latimer, the American naval commander. the American minister should act as Intermediary between the two factions. WASHINGTON ANXIOUS Awaits Developments in Nicaragua Affecting Mexican Issue* Bu United Press WASHINGTON, Jan. B.—With two United States war vessels reported chasing alleged Mexican gun runners off the Nicaraguan coast, the Administration anxiously waited today to see whether Mexico and the United States will be brought to an open break over the Central American revolution. After lengthy statements authorized by President Coolidge and Secretary of State Kellogg defending American occupation and alleged intervention in favor of the Nicaragian Conservative regime, officials believe the congressional opposition led by Senator Borah, chairman of the Foreign Relations/ Committee, cannot force a change in policy. Officials think the fifteen United States,war vessels afti 4,200 Blue- j jackets and Marines now in or en route to Nicaragua will frighten the rebels and their alleged Mexican supporters and end the revolution. Officials admit, however, that If gun runners or rebels fire upon United Staten forces, the fire will be returned, and then almost anything may happen. NOTED ENGINEER DIES' Bu United Press LONDON, Jan. B.—Sir Francis Fox, noted engineer, died today In his 83d year. Sir Francis was knighted in 1912 for his services in the preservation of the Winchester Cathedral.

1,700 CHILDREN AT TIMESBIGPARTY Flossie Flirt Entertainment at Keith’s Hailed Success by Doll Owners —Dunninger on Program. i

More than 1,700 little girls who own Times Flossie Flirt dolls went to Fairyland today. The Flossie Flirt owners, accompanied by their mothers, attended a special show at Keith’s Theater, arranged by The Indianapolis Times. With the assistance of the entire Keith’s staff, headed by Gus Showalter and Phil Brown, the large audience was handled with ease and safety. Several from other cities were present. Lesson In Safety Sergt. Fi-ank Owens of the accident prevention department thanked all the little girls and their mothers for the fine manner in which they entered the theater. ‘VAnd on your way home do not become careless and have accidents.” lie said. “Let nothing mar the success of this great party.” It required nearly two hours to show the Paramount feature, “A Kiss for Cinderella,” featuring Betty Bronson and Tom Moore. The showing was made possible by F. E. Wagner of the Paramount exchange. And "Cinderella” never had a mere appreciativegaudlsnce than the Flos-

INDIANAPOLIS, SATURDAY, JAN. 8, 1927

Where Utility Makes 30 Per Cent

. ... :: ... ... ♦ ‘i c " - j j.' ' ; \

Above—The Prospect St. plant of the Citizens Gas Company, where most of the gas used in IndianaugflS homes and manufacturing plajiahMs made. The Vfcmpan.v paid 23 per cent diyktesris on common stocl&fcnd 7 per cent on preferred storfc in 1925 and a group of citizens is preparing to ask the public service to cut gas rates. Below—Some of the by-products coke ovens. White hot coße, coal from which the gas has been cooked, is being pushed from one of the ovens.

HIGHWAY CASES ASKEDJISISSED Goldbergs File Motion Before Collins. Moses and Victor Goldberg, local junk dealers, under conspiracy to embezzle and grand larceny indictments in Criminal Court, for alleged irregular disposal of surplus war materials controlled by the State highway commission, today filed a motion to discharge the case against them. The motion was based on tbe fact that they have been under Indictment since March 4, 1925, and that three terms of court have terminated without any action being taken. It as pointed out that they filed no motion asking for continuance and had notified the_ court they wero prepared to go to trial, The case has been set for trial a number of times, but has been postponed. Judge James Collins will act on the motion next Saturday, he announced. Indicted with the Goldbergs were: George Hartley, John Williams, highway commission director, and Earl Crawford, former commission member.

sle Flirt owners, who received their dolls from The Times. Dunninger, headliner at Keith’s, became a magician again for the amusement of the audience. He did his famous ring and glass of water stunt. Dunnir.ger’s appearance was made possible by A. Frank Jones, Keith office representative. The show included music and a news reel. Gus Showalter had a great surprise for the children as he had several big boxes of toys and each child received a juvenile theater playhouse. Miss Vivian Elizabeth Cutshaw of Crawfordsville, who won seven Flossie Flirt dolls, which she gave to an orphanage, occupied one of the boxes as a guest of honor. WOMEN POLICE STAY ON By agreement a permanent in junction, restraining U*e board of safety from discharging fifteen policewomen, was granted today by Circuit Court Judge Harry O. Chamberlin. It was agreed that the women will continue their duties, but without pay. until some arrangement is made.

Wife Leaves Homes , Husband Takes Life Bu United Press SOUTH BUND. Ind., Jan. B.—Mrs, William C. Gehrking, who quarreled with her husband Friday and went to her parents at Logansport, returned today to claim his body. Gehrking committed suicide by taking poison. He apparently considered various methods of suicide shortly after hisj wife left. A four-foot tube, leading to a gas jet, a loaded shotgun and several bottles of poison were found j in the house. FALL SLOWLY WEAKENS Stimulants Administered to Former 9 Cabinet Member. Bu United Press EL PASO, Texas, Jan. B.—Albert B. Fall, former secretary of the in-; terior, stricken with pneumonia two weeks ago, slowly became weaker today, according to Dr. H. T. Safford, his physician. Stimulants j again were administered to raise j Fall’s blood pressure which dropped Wednesday to 105 milimeters. The heart, threatened by the spreading infection from Fall's left lung, responded slightly, according to Safford, who hoped normal action would be reived. CHILD LABOR DECLINES Indianapolis and Other Parts of Indiana Show Decrease. Times Washington Bureau. 13-2 New York Avenue. WASHINGTON, Jan. B—Both Indiana and Indianapolis showed decreased child labor during 1025, in contrasfwith most other States and cities, according to a recent report of Miss Grace Abbott, chief of the Children's Bureau of the Department of Labor. t Indianapolis’ decrease was 10.8 per cent; she said. Only five cities out of twenty-nine showed decreases. twolhoosiers may lose Aurora Residents Invested in Commonwealth Association. Bu United Press CHICAGO. Jan. B.—Cary Clifton Woodmansee. preside* and treasurer of the Commonwealth Reserve Fund Association here, was held today on the formal charge of operating a confidence game, following the continued absence of President Glenn M. Meeker and $600,000 in assets. According to Assistant States Attorneys Emmet Byrne and Harold 500 small Investors, mostly of Christian Science faith, were mulcted -of their- money. Investors include James L. Vail and Edward Schulz, both of Aurora, Ind. HOURLY TEMPERATURES 6 a) m 24 10 a. m 26 7 a. ra 24 11 a. rn 27 8 a. m 24 12 (noon .... 29 oa. m 25 ID. m.. — .. 28

Outside of Marion County 12 Cents Per Week Single CjDiee

CHILDREN VICTIS ' IN CHE WAVE Four Chicago Men Held, Another is Sought. Bu V fit ted Press CHICAGO. Jan. B.—A wave of degenerate crimes swept Chicago today. F-our men/ including a charitable worker and a theatrical superintendent, were under arrest today charged with attacking and annoying children. A fifth man—a SIO,OOO a year business man, was sought as the attacker of a 13 year-old Negro girl. John McMurray, 63. Superintendent of the “Off the Street Club,” a charitable organization, was arrested and confessed that he had taken indecent liberties with 6 and 7-year old girls. Ephraim Westwood, 31, father of two children —a theatrical executive, was charged with contributing to the delinquency of 13 and 15-year-oid high school girls. Charles Strock, 34, and Charles Backaris, 43, were under arrest on similar charges. Backaris was nearly mobbed by a crowd. A bystander saved him from the mob by giving him a severe beating single handed and then took him to police headquarters. Clarence Lowitz, 28. the man sought by police, is publisher of a business blue book.

MUSSOLINI DEFINES GOOD GOVERNMENT Must Achieve the Greatest Net Result With Minimum of Effort, Premier Declares.

By Benito Mussolini, Premier of Italy . as toll! to • THOMAS B. MORGAN, Rome Manager of the l nill'll Press, (Copyright. 1937. by United Press Associat on. All rights reserved. Reproduction In whole or In pnrt prohibited in all parts ot the world.) (This is the fourth of a series of articles on his daily life and work by Benito Mussolini, as told to Thomas B Morgan., Rome manager of the United Press. Each article in this series has been personally revised, corrected and approved by Premier Mussohm.) Government, to be good, must be efficient. It must achieve the greatest net result with the minimum of lost effort. If there be wastage of labor, duplication, overlapping or lack of coordination then there are serious defects in the government machinery. There must be unity of policy, unity of responsibility and unity of direction. Without these, government becomes a slip-shod, hap ■ hazard, hit-or-miss business, able to continue only because it can demand tribute from the entire nation. • A private business must be efficient or die. It haa no reserve on

THREE CENTS

General Manager Says Voluntary Reduction Probably Will Be Made Before End of Year. DEPENDS ON IMPROVEMENTS Statement Follows Announcement of Citizens’ Move for Slash. Before the end of 1927 the Citizens Gas Company will be in financial position to voluntarily ask the public service commission to materially reduce Indianapolis gas rates. This was the statement today of Clarence L. Kirk, vicepresident and general manager of the gas company, commenting upon the announcement in The Times Thursday that a group of Indianapolis taxpayers have retained an attorney to seek gas rate reductions. The citizen will file a petition with the public service commission asking for a revaluation of the company and a rate hearing thereon. The law requires the commission to take such action when ten taxpayers petition.

Is Papa Hyena Still Laughing? Bn United Press PERU, Ind., Jan. 8. —A hyena at the American Circus Corporation winter quarters here, was the proud mother today of three one-pound babies, said to be the only hyenas ever born in captivity in this country. Mother and triplets were reported doing nicely. SEEKING TANCER CURE I T . S. Health Service Using Electrical lons In Research Work. Bu United Press WASHINGTON, Jan. S.—Research work into new field which may ultimately result in discovery of a cure for has been started by the United States public health service, Dr. A. M. Stimson. assistant surgeon general of the United States, told the United Press in an exclusive interview today. Electric lons are the basis of the new experiments, he said. Dr. Stimson emphasized that modern science hAs not found a positive cure, for cancer, but predicted that before many more years the ailment will be conquered. HOOSIERS WILL FROLIC Indiana Society in Washington Will Meet Jan. 19. Times Washinulon Bnrenu, WASHINGTON. Jan. B.—Hooslers exiled' in the national capital will have their first big “blow-out” of the year Jan. 19, under auspices of the Indiana Society of Washington. The Society this year will meet at the New Willard Hotel, in place of Its former semi-suburban meeting place. Election of officers will take. Representative Fred S. Purnell of Attica is the present president. He is conducting a membership campaign. The society took a prominent part in the recent Pan-State society reception held at the Willard. CASE TO BE RETRIED Bu United. Trees JOLIET. 111., Jan. B.—-The SIOO,000 damage suit of Charles Ream, a taxicab driver, against Nathan Leopold and Richarl Loeb, young "thrill murderers” of little Bobby Franks, will come up again for a retrial during the March term of court. The retrial Is the result of a jury having failed to agree as to whether or not the slayers kidnaped and mutilated Ream, as he charged in his suit. -——— —-4 b FLEE FROM Q^’AKE Bu Ttnited Press CONSTANTINOPLE, Jan. B. Earthquake shocks of unusual in tensity were* felt today in the district of Ada Pazar. Asia Minor Panic stricken inhabitants tied from their homes and threw up tents for shelter.

which to call unless it has created that reserve itself. It must sustain itself by its own merits. It manager must avoid wastage, duplication, overlapping and must coordinate all the parts of his organization in a smooth-running machine. He is responsible and held to strict account for its success. He directs it witli a single aim and single policy, his policy. The United States presents to the world numerous examples of gigantic successful business organizations, which to arrive at their g ‘eat achievements must have been governed by these principles. There was one di rection, policy and responsibility cen tered in one man. on whom the whole operation of the immense or ganization depended. The giqnt steel, oil, copper, transportation ar.d other industries w%re developed under these geniuses, who In their way. were veritable dictators, whose words were law throughout their respective realms. They created smooth(Turn to Page 13)

Forecast Mostly cloudy tonight and Sunday; somewhat warmer tonight, with lowest temperature about 32.

TWO CENTS

MARION COUNTY

Kirk said that a reduction from the -resent rates, graduating from $1.15 a thousand cubic feet for domestic consumers to 95 cents for those who use 200,000 cubic feet or more a month with a 10 cent discount for all users paying bills within ten days, would have been possible in 1926 had no 1 the company undertaken an extensive improvement program. $2,500,000 Improvements Early in J 926 the company started $2,000,000 in improvements to the Prospect plant, the larger of the two gas factories. Tills will be completed by March 15, Kirk said. Fifty old coke ovens, built In 1909, are being replaced by forty modern ovens, casting $1,000,000. Another million is being spent on general rehabilitation. Kirk said that when the changes are completed the monthly pay roll can be reduced $12,000 a month, making a $144,000 annual saving. This $2,000,000 is being paid but of the earnings of the company. The taxpayers seeking rate reduct ons base their 1 opes upon the fact ‘hat in 1925 the company’s annual report showed that c made so much money that it was able to pay jfper eent on sl, >OO,OOO par value preferred stock, 23 per cent on $2,000,000 par value common stock, put $450,000 into the depreciation fund and have at the same time a depreciation reserve fund of $103,840.08 and a contingent reserve fund of $197,995.98. The 1926 profits will not be made pubjic until the company files *lts annual report with the commission. The law requires this be done by March 15. /he healthy condition of the com pan;, however, is mirrored by the ability to pay lor $2,000,000 worth of improvements out of earnings. “The Citizens Gas Company will, in all probability, unless some unforeseen contingency ariaes, go before the public service co...mission before lie end of 1927 and voluntarily petition for a reduction in rates,” said Kirk. Demand for Coke He declared that the prosperity of the company has been due to the enormous demand for foundry coke, chief by-product of the company’s gas plants, and said that continued prosperity depends upon conditions in the automobile and foundry Industries, the chief customers. Kirk saiu he is making every effort to put the company on a firm basis and effect economies which may be passed along to consumers. “While it is truo that the company lias had three very successful years, we must not forget the years before during which the company labored at a / cidcd disadvantage,” said Kirk. He said that by spending $135,009 in the Prospect St. by-products plant the company had saved $200,0.00 on pay rolls in two years and had paid for the improvements in eleven months. Anent this, William P. Kappes, special master in chancery in the gas late case before Federal Court in a report filed Jan. 22, 1923, declared “The master finds there has been no misuse, waste or extravagance In the expenditure of the funds of the Citizens Gas Company.” This was before Kirk was em ployed by directors of the gas company and before Kirk had put into effect the improvements resulting In hundreds of thousands of dollars Jr. economies. Basis of Boost Figures in Kappes report declaring the company was being economically operated were the basis of the setting of a $20,000,000 valuation upon which the rates then were boosted from 90 cents a thousand cubic feet to $1.20. The company since 1924 *has re dueed the maximum rate from $1.20 to $1.15 and voluntarily granted two 5-eent discounts, totalling 10 cents a thousand cubic feet in force now. Chicago pays 99 cents and Detroit 79 cents for gas, according to public service commission figures. “If Chicago and Detroit can have such low gas rates Indianapolis -ertainly should have as low a rati or even lower,” said Corporation Counsel Alvah Rucker. The 11 ,u es show that the rate; i are far too high. 1 would be ver.\ glad to join with the taxpayers lr this fight. I am a public servant and believe in serving the public ti the best of my ability. I will b very glad to confer with the tax payers’ attorney and also am willing to render them any assistance tha I posigbly can.” a