Indianapolis Times, Volume 40, Number 233, Indianapolis, Marion County, 16 February 1929 — Page 1

flicmPPS -ToWAj?D|

COFFIN GAVEL WAITS TO KEEP BOSSIN POST Two ‘Anti' Groups Differ on Success Estimates for Meeting. FEAR 'STEAM ROLLER' Courthouse Group Claims 120 Votes to Put Over Hendrickson. Credentials in their pockets. 233 Republican precinct committeemen trudged today to the K. of P. hall where a “Coffin man” waited with a “Coffin gavel” to bang George V. Coffin, Seventh district Republican chairman, into the city chairmanship again. Two anti-Coffin groups, agreed on purpose, but differing in their estimates of success, gave their precinct committeemen a pat on the back and sent them up the elevator to support Harry Hendrickson, attorney and former county chairman, for the post. The courthouse wing of antiCoffin forces insisted at noon they have a real chance to put Hendrickson over. They were claiming 120 votes, three more than needed, if all precincts are represented. But anti-Coffin leaders from the statehouse, representing Governor Harry G. Leslie's determination to unseat Coffin as a Seventh district political power, were skeptical of success in today’s engagement. Fearful of Steam Roller Court house anti-Coffin-ites were fearful that the election would be steam-rollered. They also were uneasy lest precinct committeemen on whom they are counting, be divested of their credentials and vacancies filled at the last minute by Coffin apopintments. The city convention was to be to order at 1 p. m. Tin's henchmen kept secret /candidate for temporary chairat the meeting. Much depends he meeting chairman, who, spied by Omar Hawkins, county tman and Coffin’s right hand L can wf ' the gavel to suit de|ds off jntrolilng faction. *ra M. I is, who has rapped the shillal ’ | previous meetings, said he hi Aclined to serve as tcmperora fchairman. Schuyler Haas, also , in the presiding business and a likely selection today, declined to say who would have the job. Coffin forces were meeting this morning to decide on a temporary chairman. Fourth Ward Is Supreme Hawkins put out the word that there was no possibility of Coffiin’s defeat and scouted the report that Coffin’s candidacy was a “smoke screen” and that a dark horse, backed by Coffin, would be nominated. Hawkins also said there was no possibility of a compromise on the candidate for the city chairmanship. The Coffin backers admitted surprise at the results of the Fourth ward committemen’s vote Friday night and spent most of the evening phoning to find out about it. The Nineteen precinct leaders who attended the caucus voted 13 to 6 for Hendrickson. A poll of the eleven who did not attend revealed six more votes for Hendrickson, County Clerk George O. Hutsell, Fourth ward chairman, said. A recheck by anti-Coffin forces revealed 120 votes for Hendrickson, it was announced today. This followed another meeting Friday night in which the opponents declared they counted “only sure votes.” Young Is in Race Two hundred and thirty-three committeemen are to attend this afternoon's meeting and it takes a vote of 117 to elect. W. Todd Young, seventh ward chairman, whose political name was made for him by Coffin, but who claims he has severed his connection with the organization machine, announced definitely that he was to be a candidate for the city position. Young has been working 'for several weeks, interviewing committeemen in his effort to obtain their support. Coffin foes at the statehouse were claiming 100 votes for Hendrickson, “unless strong pressure is exerted by the chair.” In that event, they will not be surprised if anti-Coffin votes dwindle to half that number. Coffin’s Weapons Best Thut the Governor played his ace and lost in the Republican state committee meeting Wednesday was the prevalent opinion in political circles. Failing to win a revision of rules which would have empowered the state chairman to name an impartial temporary chairman for the city meeting, Leslie then and there lost all hope of stopping Coffin in today's session, observers contend. They compared “weapons” in the hands of the two factions and were inclined to regard Coffin as having the better of them. Coffin's club is in the shape of 165 appointments for deputy assessors to be named Frank Brattin, Center township assessor. Leslie on the other hand holds the state house ax, threatening the jobs of Coffin henchmen in the

Complete Wire Reports of UNITED PRESS, The Greatest World-Wide News Service

The Indianapolis Times Unsettled tonight and Sunday, probably occasional snow j low temperature tonight near freezing, colder Sunday.

VOLUME 40—NUMBER 233

Right of Teacher to Paddle Pupils Is Upheld by City Judge

Upholding the right of a school teacher to use a paddle on disobedient pupils, Municipal Judge Clifton R. Cameror today dismissed the assault and battery charge against Homer G. Knight, principal of School ,34, Wade and Boyd streets. Knight was charged with whipping Jesse Canter, 12, of 2307 Reformer street, so heartily with a paddle that welts were raised on the boy’s legs. The charge was filed by the boy’s mother, who told how her son was

QUIZ KERSHNER ON ARMORIES Adjutant-General Again Is Summoned to Give Further Details. Adjutant-General William H. Kershner again was summoned to appear before the senate armory probe committee today and gave further details of the financing and construction of armories during the last four years under the “closed corporation” plan. The committee expected to be in session throughout the day and called Henry Ostrom, president of the Ostrom Fealty and Construction Company, i>s the first witness. Ostrom accompanied President Felix T. MoWhi ter of the Peoples State bank when he appeared to testify at a clostd hearing of the committee Friday night The Ostrom company has built all the armories under the “closed corporation” plan and the McWhirter bank handled the financing. The Ostrom company is a subsidiary of the bank. Report Expected Monday Lack of competition and the request for $350,000 to further the armory building program caused members of the budget committee to ask investigation by a senate committee. The committee report is due Monday under the resolution asking the probe. Kershner announced this morning that he will appear today armed with deeds of trust to combat evidence submitted to the committee by A. C. McDaniel, state budget clerk in the office of Lawrence Orr, chief examiner of the board of accounts. McDaniel, according to Orr, lives at Franklin and gathered data regarding the armory building there. Kershner listed the Franklin armory in his report to the probe committee as costing $60,000 to construct. McDaniel’s data shows that it will cost the state S9O 000. The latter figure was based on the armory board rental lease covering a fifteenyear period. “McDaniel merely set up a man of straw, created from the few facts in his possession,” Kershner declared today. “He never came to my office to learn if there were any instruments to counteract the lease. Explains Interest “I will present the committee with a trust deed showing that the fifteen-year period has nothing to do with the exact time the armory will become state property. This deed shows that it will, be turned over to the state just as soon as the bonds are paid off.” The bonds bear 4% per cent interest and were sold as tax exempt. McDaniel figured that they should be amortized before the end of the fourteenth year and the state, under the lease contract, will be paying $7,00 more than needed to pay the principal and interest. According to the adjutant-gen-eral’s figures the total interest on the Franklin armory will be $22,980, making the total rental cost to the state $82,980. In this case the bonds will amortize before the end of the fifteen-year period, Kershner declared.

TWO CITY MEN FACE LIFE TERMS IN PRISON Convicted of Slaying During Attempt to Rob Merchant. Bu United Press MARTINSVILLE, Ind., Feb. 16. Life imprisonment terms are faced today by Logan Manis and Jesse Squires, Indianapolis, found guilty by a jury here of the murder of Arlie Bryant, Brown’s Crossing storekeeper. A jury was out an hour and a half during which three ballots were cast. Manis caused a sensation in the courtroom after the verdict was read by uttering a bitter denunciation of the jury-, the court and the prosecutor. Squires showed no emotion. Evidence presented in the case showed that Squires and Manis, w-ith Walter Wilson and George and How-ard Wethington, shot Bryant during a robbery attempt The other three men will be tried lat,er. SLATE WAGE HEARING Public Session on Salary Bill to Be Held Tuesday. The Grant uniform salary bill which will increase salaries of county officials of the state $137,096 a year will be discussed in public hearing in the house of representatives at 7:30 p. m. Tuesday. The bill is based on a survey authorized by the 1927 legislature and proposes to do away with the lee system.

forced sometimes to wear "hand-me-down” men’s shoes and overalls to school and blamed some of the fights In which her son was involved on his resentment of the taunts of his schoolmates. Knight, however, told how Jesse, although bright in his school work, had been brought before him ten times this year for fighting on the way home from school. After repeated reprimands he finally had paddled the boy “where he sits” in the presence of the school custodian. He denied the paddling had

MELVILLE E. STONE; GREAT LEADER IN JOURNALISM, DEAD

One of Founders and Head of Associated Press for Many Years. Bu United Press NEW YORK, Feb. 16.—Melville E. Stone, 81, leader In American journalism, trusted friend of famous men, patriot and Influential figure In world affairs, died Friday night. It was as one of the founders of the Associated Press, which he headed as general manager for twenty-eight years, t .at Stone best was known. During the period, with Stone as one of the pioneers, journalism reached toward new high standards of fast and comprehensive reporting of world events. Death, following an illness of four months, was caused by hardening of the arteries. “Journalism loses a courageous leader and a wise counselor, and the country, a true patriot,” said Adolph S. Ochs, publisher of the CLOSED BANKS PLANTO OPEN Weils County Crisis May Be Eased Next Week. By Times Special BLUFFTON, Ind., Feb. 16.—Wells county’s banking crisis may be eased early next week when the Union Savings and Trust Company Is expected to open its doors. Five financial institutions in the county closed- during the week. A mass meeting at which all parts of the county was represented was held here Friday night, several speakers expressing confidence that the situation could be relieved. There were Indications that the Jianicky feeling which caused runs s subsiding. The Wells County State bank here was the first to close. Three other banks, which used the local institution for clearing purposes, ceased business the following day. Then the Union Trust and Savings closed as a precautionary measure, after a run had started. The three others closed were at Liberty Center, Petroleum and Uniondale. At the meeting there were indications that the Liberty Center and Uniondale banks also would re-open next week. Liquidation was reported in progress at Petroleum. The audit of the Wells County State bank has not been completed and there Is no information available at this time on its condition.

CONGRESS ABANDONS HOSPITAL PROGRAM Refuses to Vote $10,000,000 for Veterans Institutions By Times Special WASHINGTON, Feb, 16—The ten million dollar program for construction of new Veterans’ Bureau Hospitals In various parts of the country hrs been abandoned for this session of congress. A sub-committee of the house committee on World War Veterans’ legistation has decided not to take any action on the bill.! FORECASTS FOR WORLD Twelve Meteorological Stations in Antarctic Planned by Wilkiius. Bp United Press TALCAHUANO. Chile, Feb. 16. Twelve meteorological stations in Antarctic regions are planned by Sir George Hubert Wilkins, explorer, to supply weather forecasts for all the world, but chiefly for South America. Wilkins announced the meteorological stations when he stopped here en route to New York after three months in the Antarctic. He sailed aboard the steamer Orduna for Panama Friday. SHOT EVADING SLEUTHS When he attempted to avoid arrest by threatening two Negro detectives with a pistol Friday night, Matt Lee. Negro, of 916 West Walnut street, was shot and critically wounded by Detective George Sneed The shooting occurred at 918’i West Walnut street, where the detective had gone to arrest Lee on a charge of petit larceny. Sneed fired at Lee through a door the latter had closed In his attempt to escape.

INDIANAPOLIS, SATURDAY, FEBRUARY 16, 1929

raised any welts and said the whipping had not been severe. "A teacher within the limits of his jurisdiction has the same right to punish his pupil that a parent has to thus chastise or punish the child,” the judge’s opinion today stated. “In cases of this sort it must be considered whether or not the teacher exercised a calm and honest judgment as to what the situation required, under existing circumstances. It must be determined whether or not an improper weapon

New York Times and a director of the Associated Press, today. Ochs, who closely was associated with Stone through the latter stages of his career, described him as one who could have attained vast wealth because of his business genius, but who chose instead “service to his fellow-man, the pursuit of a noble idea, the establishment of a fine principle.” Acclaimed as Great Man Frank B. Noyes, publisher of the Washington Star and president of the Associated Press, reached at Palm Beach, Fla., said: “At this moment I can only say that I think I have lost a very dear friend and one of the two or three great men I have ever known.” Karl A. Bickel, president of the United Press Associations, now in San Diego, Cal., telegraphed Kent Cooper, general manager of the Associated Press, as follows: “Older and closer personal friends of Mr. Stone than I, can speak of Mr. Stone’s manifold qualities of mind and heart in a detail and with an intimacy I can not approach. But the United Press has keenest and solldest appreciation of the great and enduring work he did in his life time in the development of the ideals and ethical standards of the American press associations that have made them the strongest and most comprehensive in the world. Created New Standard “His unrelenting insistence upon impartiality, accuracy and honesty in news created a standard that has become universal in American journalism and for that all Americans stand tremendously in his debt. “He was a great newspaper man, a great press association executive and a great patriot.” “Melville E. Stone was one of the great journalists of our time,” said William W. Hawkins, gr eral manager of Scripps-Howard newspapers. "Those who fought him hardest in the early days of press association de/elopment, perhaps admired him most. In later years, to my certain knowledge, some of them learned to love him for his rich personality.” Stone retired in 1921 from active direction of the Association Press but remained in contact with the organization as counselor, a post created expressly for him. Son of Minister Melville Elijah Stone was born in Hudson, 111., on Aug. 22, 1848, the son of a “circuit-riding” Methodist preacher, the Rev. Elijah Stone. The family moved to Chicago when the son was 8 years old. In 1869, at the age of 21, young Stone started a foundry and machine shop, but the Chicago fire of 1871 wiped out the business and forced a fresh start, a beginning of his journalistic career. Stone started as a reporter on the old Chicago Republican and became city editor of the InterOcean. Consolidation of the Post and Mall, in which Stone aided, left him as managing editor. Stone later went to Washington as a correspondent. Later he organized a company to purchase the Chicago Dally News and to publish it as a penny newspaper. It was necessary to import several barrels of pennies from the Philadelphia mint, since the 5-cent piece was the lowest coin in general use. Promoted Penny Paper Stone also promoted odd-price sales, at the stores, and when customers were handed change from 29, 59 or 99-cent purchases, the customary thing was for them to spend the extra pennies for the News. In 1888, Stone retired temporarily from the newspaper business, but In 1893 was called back to become general manager of the Associated Bress. Through the early days of press association rivalry, Stone became a commanding figure. American Inventive genius was swinging into stride and Btone utilized every new device that would help in the rapid transmission of news. BURNED FIRING STOVE West Sixteenth Street Woman In Critical Condition From Injuries. When her clothing was ignited while she was firing the kitchen stove in her home Friday night, Mrs. Effle Mayfield, 20, of 3502 H West Sixteenth street, was burned. Her condition is reported as critical Isaac Mayfield, her husband, suffered severe bums on the arms and hands when he beat out the flames. _

was used or the punishment was cruel or excessive, or apportioned to the gravity of the offense. “The seasonableness of such punishment when imposed by the varying circumstances of each particular case must be weighed. "The court in this particular case is of the opinion that unreasonable or excessive punishment was not inflicted under the proof, and under the circumstances as the boy was not paddled in anger or with much severity. “If the schools meet the purpose

GUNMEN FIGHT FORFREEDOM Two Attorneys Retained to Seek Liberty for Five Men Held Here. BULLETIN Municipal Judge Paul C. Wetter held the five alleged Chicago gunmen to the county grand jury on robbery charges this morning, dismissing vagrancy and carrying concealed weapon charges. Bonds were fixed at SIO,OOO. The men were locked up again. Their attorneys, Ira M. Holmes and Henry Winkler, were expected to start habeas corpus proceedings, on the ground that bond is excessive. Prediction of the five alleged Chicago gunmen, held in jail here, that “plenty of help and money” would come from Chicago, was fulfilled partly today, when two Indianapolis attorneys appeared at city prison to begin the fight to obtain their Although the law won the first round of the battle, a bitter fight was forecast to “spring” from jail the men who have undergone an eighteen-hour grilling as to their possible connection with the sevenman gang massacre at Chicago Thursday and recent big holdups here. The attorneys retained are Henry Winkler and Ira Holmes, high-priced lawyer who appears in most big criminal cases here. Appearing at the turnkey’s office, they were referred to Detective Chief Jerry Kinney, who told them they could not talk to the five prisoners at present. The attorney left without indicating further moves. Holmes Mum On Case Holmes refused to discuss how or why he became engaged in behalf of the men, whose admisison that they are from Chicago and possession of nine automatic revolvers more than justifies the title of gunmen, according to police. Winkluer told of a mysterious visit to his home last night of three men. One came to the door, but refused to enter, and Winkler conferred with them in their automobile. They paid him a part of his retaine in the case, Winkler said. All the men were slated at city prison following their arrest Friday noon on charges of vagrancy and carrying concealed weapons. All are under SIO,OOO bonds. One, giving his name as Frank Myles, 41, also was charged with robbery. He has been identified as one of the bandits who staged a holdup at the I. Wolf Company salesroom, 555 North Capitol avene, two weeks ago tonight, police said. His recognition Saturday by Gerald Maholowitz, Wolf company employe, at the Hollywood case, 430 North Ulinos street, led to the arrest of the five. Rush Pictures to Chicago Pictures and Bertillon measurements of the five were taken at once and rushed to the Windy City, but no further word has been received from the Chicago police. Belief that the men were connected with the Chicago gang warfare and left that city because they were connected with Thursday’s machine gun massacre or feared the police round-up which followed was strengthened by the fact that one’ of the men, Edward Andrews, 29, admitted, according to Detective Ed Tutt, that he hauled alcohol for a man named Kerns. Kerns, he said, is a lieutenant of A1 Capone. The other men held are Robert O’Brein, alias S’ ivan, 34; Thomas McMahon, 33; .id Arnold Greenbush, 26.

PLAN CHURCH SERVICES Roberts Park Congregation Will Hold Nightly Meetings. A series of evangelistic services will be conducted each night next week at the Roberts Park M. E. hurch by Dr. E. Stanley Jones, missionary to India, evangelist and author. Services will be suspended in Methodist Episcopal churches throughout the city Sunday night in order that members may attend services conducted by Dr. Jones at Cadle tabernacle. HOOVER TOUR RESUMED President-Elect Continues Inspection of Everglades District. By United Press CLEWISTON, Fla., Feb. 16.—Pres-ident-Elect Hoover left here at 8:30 a. m. today at the head of a parade of twenty automobiles to continue his inspection of the Everglades flood district. The party will lunch at Palm Beach after a 77-niUe ride over rough roads through the heart of last year’s hurricane belt and return to M igrni Beach late this afternoon.

for which they were intended the pupils must be obedient to the reasonable demands of their teachers. “The law is well settled, as It seems to me, that the teacher has the right to exact from his pupils obedience to all lawful and reasonable commands, and to punish disobedience with kindness, prudence and propriety. “Every pupil is presumed to know this law of the school and ought to be subject to it, else the school roam would be in chaos. “This boy with all the kindness

My Girl Friday * Cast of 13 Jailed—Friday

Crowds Hiss as Police Arrest Actors for ‘Obscene’ Play. NEW YORK, Feb. 16.—Police chose the waning hours of Friday in which to raid the play “My Girl Friday” and arrest the thirteen members of the cast on a charge of appearing in an obscene theatrical production. Two patrol wagons were backed up to the stage door after the curtain went down and author and actors, including Lucila Mendez, wife of Ralph Ince, the motion picture producer, motored over to the police station while a crowd of 5,000 persons hissed the raiders. Police said the objectionable part of the play was a scene in which three members of the cast, playing the part of chorus girls, administered knockout drops to their weathy host and then undressed on the stage. The only member of the cast who seemed seriously concerned over the raid was Alice Weaver, the featured player, who wept when police refused to allow her to telephone her mother. The actors later were released in bail.

DRIVES WIFE, 4 CHILDREN INTO COLD AT POINT OF GUN BECAUSE THEY ASK FOOD

Family Nagged Him So He Just Couldn’t Sleep, Police Told. Driving his wife and four small children from their home at the point of a revolver, Jesse Booher, 1219 North Illinois street, locked them out In the cold and prepared to take a nap. Mrs. Booher telephoned police, and the husband explained he just couldn’t sleep with his family around. They kept nagging him to buy food. Imagine that! Police learned that Booher had spent all his money this morning to purchase the revolver. He was forced by police to take the gun back to a pawn shop where he h^d s bought it, get his cash and give it to Mrs. Booher to buy food.

In the Stock Market

(By Thomson & McKinnon) NEW YORK, Feb. 16. Any lingering doubt that exists as to the means of the disposal of the federal reserve board to curtail the excessive use of credit for speculative purposes has been dispelled with the announcement from the advisory council that the co-opera-tion of all banks in the system has been requested. The advance In acceptance rates and the heavy calling of loans further attests to the measures being used for this purpose. A reduction of long lines at every favorable opportunity, we believe is the wisest plan until such time as abnormal credit conditions disappear. * CANADIAN INSURANCE LAWS GIVEN PRAISE Sun Life Assurance Head Reports on Year’s Business. By Times Special MONTREAL, Feb. 16.—The Canadian insurance laws which permit investment of insurance funds in common stock of corporations which have a long record of dividned payments were praised in the annual report of President T. B. Macauley of the Sun Life Assurance Company of Canada. In the past year Macauley reported the Sun company has increased its income $41,972,003, its assets $87,650,000, its surplus $9.157000 and Its assurances $112,836,000. The company’s investments In the United States were incr-osed $225,000,000, Macauley reported. The company is the largest stockholder in the American Telegraph and Telephone Company, holding over 89,000 shares. Hourly Temperatures 6a. m 26 Ba. m..-... 28 7 a. m 26 9 a. m...,. 29 10 a. m 33

Entered as Second-Clas Matter at Postoffice, Indianapolis

and consideration shown him persistently, and whenever opportunity offered would become disobedient not only of the regulations In the school, but flagrantly disregarded the rights of other pupils, and manifested very little, if any, civil deportment in his obligations to other pupils, “He seemed to revel in his disrespect for teacher and fellow pupils, and his conduct was inconsistent with proper discipline of the school system and the defendant is discharged.**

jjji ik |fi& mrc : : : a

Lucila Mendez

How the Market Opened

BY ELMER C. WALZER United Tress Financial Editor NEW YORK, Feb. 16.—Indications that the federal reserve board has definitely determined to reduce drastically the amount of funds loaned on stock exchange collateral brought further unsettlement into the early trading today. Prices declined sharply at the opening and dealings were on a fairly active scale. On the opening, Radio new stock came out in a block of 10,000 shares at 70!4, off lti, while 10,000 shares of Chrysler brought only 99, a loss of a point and anew low for the year. Numerous other issues were down one to three points and many stocks made new lows for 1929. —Feb. 16Open. Amn Gas 150% Amn Roll Mill 90>, Assoc Oas (A i 58% Amn Dept Stores 22% Amn S Power (A) 90 Anglo-Amn 16% Cont Oil 22% Cities Service 108 %, Can Marconi 7 V, Curtiss Fly Ser 22% Durant Motors 1 De Forest 22 Elec Bond & Sh 245 % Elec Inves 104% Freshman 8% General Bak (A) 9% Hudson Bay 21 % Int Pete 53% N E Power L 52% Nlle.s B P 219% Normarda 60 N Am Aviation 15% Ford of England 16% New Cordelia 43 % Rainbow 53% Std Oil Ind 87 *. Std Oil Ky 40 Servel 15% Sparks W 158% S E Fower 81 Shattuck 22% United L & P A 35% United Gas & Imp 170% Walgreen 83 1 United Verde E 20% New York Stock Opening —Feb. 16— Amer Can iog% Atchlaon 196% Beth Steel 37 3 \ Cont Can 65% Risk Tire I?% General Electric 224% Kenn Cop .. 154 Missouri. Kans & Tex 47 Mo Pac pfd 1307* Pan-Amer Pte (B) 41 , ft V & S W 103% Sears-Roebuck 134% Sinclair 38 So Pacific ...'.146% Btew Warner 124 Union Pacific 220 Yellow Truck 35% Radio 70% Magma 70%

HOGS LARGELY 25 CENTS HIGHER HERE Not Enough Cattle In Pens to Make Market. Hogs were largely 25 cents higher at the local stockyards today. The bulk of 160-300-pound weights brought $lO to sll, largely a $10.75 market. The top brought sll. Receipts were 2,000, and holdovers from Friday’s market totaled 280. The cattle market was the same old Saturday story, not enough here to make a market.’ Vealers wzre little changed, selling around $16.50 down. The top brought sl7. The sheep and lamb market was quoted steady.

NOON

Outside Marie* County 3 Cents

TWO CENTS

DOWNFALL OF : CASHIER LAID TO GOLD LUST Hope Financier, Trusted and Admired, Admits Huge Embezzlement. BRANDED ‘MONEY MAD’ Relatives Rally to Aid of Banker, Now Free on $25,000 Bond. BY GEORGE SCOFIELD Times Staff Correspondent HOPE, Ind., Feb. 16.—Money madness! Two words explain the downfall of Herman Stewart, trustee, respected. loved Hope bank cashier. Stewart, for twenty years cashier of the Citizens National bank of Hope, is at liberty under $25,000 bond while the federal grand jury probes a charge that he embezzled $45,000 of his bank's funds. He surrendered in Indianapolis Thursday. four hours after the bank closed its doors. His is an old story, and yet anew one. Born and reared here in Hope, forty miles southeast of Indianapolis, he early yon the respect and lev# of the entire community. Beginning his career as a school teacher, he taught for twelve years in the Hope schools. Then he married the daughter of Bartholomew county’s wealthiest citizen, Joseph A. Spaugh, founder and at that time presdient of the Citizens bank. Wins Way to Cashier Soon after, he entered his father-in-law’s bank, and rapidly won his way to the position of cashier. Under his management the bank grew rapidly and paid its stockholders much higher dividends than they ever before had received. The bank's directors and its president turned complete control of the institution over to Stewart. Three children were born; he led many civic activities; he was active In church work; he became known as the town’s most shrewd business man. He was a success. Then—money madness. That, in so many words, is what Spaugh and other directors of the bank blame for the crash. Too much power, too much freedom in handling the bank’s funds—he was not accountable to the directors, for they had given him complete control—and too many friends, is Spaugh's analysis of his son-in-law’s downfall. Had No Bad Habits “I have no idea w'nat Herman did with the money,” said Spa/ugh. “I know only that he had no bad habits, never gambled and never drank. He wanted too much power, wanted to show people he could make unusually large profits for the bank.” It generally is believed that Stewart began to juggle the bank’s funds about five years ago. It was then that he had the first of a series of arguments w-ith Spaugh about loans. “He stubbornly insisted on making loans that I told him were poor risks,” the former bank president said. “We had several arguments, but his judgment proved good and I let him handle the bank’s affairs. The bank’s new president, elected a year ago when Spaugh retired, is Mart Holder. Since Holder took office Stewart is believed to have become involved heavily. H!= shortage, estimated at first at $45,000, will be near SIOO,OOO, Holder said today. National bank examiners, under direction of John F. Utt of Indianapolis are checking the books. Attempt to Repay Losses Meanwhile Stewart, his wife and three children, and the father-in-law. are making every move to repay his shortage to the bank. Stewart was out of town today, making arrangements to convert his real and personal property into cash, according to his wife, while Spaugh said he was prepared to make good part of the bank's losses. Mrs. Stewart, heart broken, expressed her determination to sacrifice everything she owns to aid her husband. “I don’t know what has happened, although I am certain Herman could not do a real w-rong. He has told us nothing about it and the news of his arrest came as a heart-breaking shock to me. We shall do anything to help him,” she said. Stewart, his wife, and a daughter, Marcile, live in a beautiful country home two miles from Hope. He has two sons. Marlin and William, the latter an assistant cashier in the bank. Fortune Will Be Sacrificed The home, the family’s two automobiles, and a 200-acre farm owned by Stewart will be sacrificed, Mrs. Stewart said. The little town of Hope was shocked to its very foundation by the news of the bank's closing and of the charges against its cashier. Stewart’s integrity never had been questioned, and his reputation was spotless. Virtually every business man In the town is steadfast in his belief that a sincere effort to save depositors' money prompted Stewart to manipulate his accounts. CHARLEY’S RESTAURANT ope* for Sunday dinners, 5 to 9 p, m.—• Advertisement.