Indianapolis Times, Volume 42, Number 245, Indianapolis, Marion County, 20 February 1931 — Page 13

Second Section

TAX MEASURES SUFFER FRUM PARTY STRIFE Politics Rules Assembly and Two Branches Fail to Work in Unison. LEADERSHIP COLLAPSES Past Week Brought Examples of Poor Strategy by Democrats. BY BEN STERN Apparent utter futility of getting the Republican senate and Democratic house to agree on controversial matters, which precages ill for the income tax bills and congressional reapportionment, together with the breakdown of any constructive leadership in the house are the outstanding developments of the week in the general assembly. The senate refused to turn against the Governor despite its heretofore proclaimed insurgency and did not concur with the house in passing over his veto the McKesson bill, raising the mprtgage exemptions from SI,OOO to $1,300. That was simply a slap at the Democrats, but a more important point of strategy confronts the Republicans now and that is whether to make a play for labor and join with the Democrats in passing the “anti-yellow dog" contract bill over Leslie's veto or stick to party lines and kill that measure. Looked Toward 1932 Republican leaders have an eye cocked towards 1932 in considering this question and the senate division may be close. The house Democrats re-passed the bill 59 to 26. But these same leaders should have something to worry them—all things being equal—for they were having a good laugh at Democrats in the house this week. Record of the Democratic house majority for the week is proof of the pudding, they say, and has revealed an,almost appalling ignorance of strategy and of those tactics necessary to garner votes. Here is the record at which the G. O. P. chiefs point, and some of the boners are good for a chuckle. Passage of the Democratic platform pledge personal and corporate income tax measures was delayed two days in the house, at a period when time means everything. Blame for this can be placed equally upon the shoulders of Speaker Walter Myers and Delph L. McKesson (Marshall), Democratic floor leader. Another Farce Staged For some reason, never explained, perhaps as a. farcical attempt at fairness, the Democratic leaders postponed the discussion of tax bill amendments from Friday afternoon to Monday night and tnen steamrollered them through. The amendments raised the exemptions so high that the estimate of revenue the tax was at first expected to bring, has been cut in half. There can be little doubt that the senate will cut the exemptions to where they were originally and because of the strong business lobby may not pass the corporations tax bill, in which event a large source of revenue will be lost. Defeat of the corporation’s tax bill, may of course, be considered part of the usual G, O. P. bid for business support. Where the leadership fell down in particular was failure to follow through on the vaunted Democratic liberal stand. Floor Leader Blamed McKesson is held directly responsible for these “deplorable errors’’ in strategy. Those independent voters who have been attracted to the Democratic standard by its apparent liberal attitude are now among its severest critics. Labor, first mollified with passage of the anti-injunction and “yellow dog" contract bills was given a slap in the face by the slaughter of the full crew railroad bill in which slaying the Democratic floor leaders joined. Asa result this group has been alienated. Then McKesson committed what may be recorded as the worst error of the session. Does a Flipfiop When Jhe “anti-lynching" bill, backed by every Negro organization in the state, and that group was Democratic both in the city election of 1929 and the state election of 1930, was brought to the floor, McKesson moved for indefinite postponement, and despite the fight of members from the larger centers, the measure was killed. The next day he turned a flip under pressure and after suspension of the rules withdrew his motion for indefinite postponement, and without a dissenting votesmart Republicans—the bill is now on its way to engrossment.

LUKE LEA KITED CHECKS, CHARGE OF EX-CASHIER

By Cnitcd Press NASHVILLE, Term,. Feb. 20. — The state legislature investigating committee reviewed today the affairs of the Tennessee highway department through which passed millions of dollars in state money, some of which, it is charged, was handled in such manner as to make political capital for the administration of Governor Henry Horton. R. H. Baker, highway commissioner, was called to give his version of connections alleged to have existed between the capitol and Caldwell Cos., defunct investment firm which controlled a chain of banks.

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Washington Will Miss Alex Legge, a Picturesque Warrior

BY RAY TUCKER Time* Staff Correspondent WASHINGTON. Feb. 20 With the resignation of Alexander Legge as chairman of the federal farm board next month, another great experiment sponsored by President Hoove**' w-fll come to an end and efforts to improve the condition of agriculture will be along more conventional lines. There will be no more pegging of prices or actual purchases of wheat, cotton, and other commodities unless economic crises surpassing those of the past bring the board to that venture as the only remedy. The stormy policies which subjected Legge and the administration to criticism from commercial interests will be supplanted by a milder program of orderly development of farm co-opera-* tives.

State to Wage Dramatic Fight in Effort to Convict Schroeder in Torch Car Murder Mystery

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GREWESOME spectacle o t a flaming car and its blazing human cargo will be flashed before a criminal court jury, starting Tuesday, in the state's efforts to send Harold Herbert Schroeder, 35, to the electric chair for the murder of an unknown man. Once a Mobile (Ala.) business man, Schroeder next week will becomo the target of the state’s legal machinery and the eyes of hund'-eds of persons who w-ill jam the court to hear the trial. It will be the county’s most sensational case in years. Schroeder still maintains his silence about the alleged crime. He has said nothing of importance since his burning car was found May 31, 1930, on the High School road, west of the city. In the car was the body of the man the state says Schroeder murdered. a a tt SINCE the finding of the car authorities have plied their skill to prove Schroeder murdered his passenger to destroy his identity and collect insurance. When hi faces the death threat Tuesday he stands charged with murder through “burning, stabbing, or methods unknow-n.” His fight for liberty since his arrest June 20 in a w-eed patch near his Mobile home, the quarry of a nation-wide man hunt, runs the gamut of legal technicalities, ranging from pleas of not guilty to insanity. Tuesday he will witness the selection of jurors to whom his fate will be submitted. Schroeder claims to be innocent of the actual killing of the man whose coprse lay in the smoldering sedan. n m IN a single statement, to Indianapolis police, Schroeder said the man died of a broken neck when Schroeder fell asleep

The investigation late Thursday, I centered around failure of the Liberty Bank and Trust Company, Nashville. A picture was drawn of a youthful bank cashier, later •‘disciplined,” who opposed banking policies of the institution’s largest stockholders, Colonel Luke Lea and R. E. Donnell. The cashier, W. S. Chappell, testified that Colonel Lea cashed SBO,OOO worth of certificates of deposit at the Liberty bank after drawing them on the Central Bank and Trust Company, Asheville, N. C., gin a personal note and without actfil money deposits. he said . Colonel Lea carried out

The Indianapolis Times

Asa legacy to the board and its new chairman, reported to be J. C. Stone, co-operative expert nowon the board. Legge leaves more than 100.000.000 bushels of wheat and 1,000 000 bales of cotton in the hands of the government. These represent an investment on which, if the board were forced to liquidate now, the government would have to shoulder a loss of some $100,000,000, m m tt DURING Legge's regime, prices have fallen steadily, and not even the board's vast operations have been able to keep them up. Likewise, Legge’s efforts to get the farmer to reduce acreage has not succeeded as he had hoped. Whereas it had been expected the crusade for conservation would bring a reduction of 10 per cent, recent reports showed a drop of only 2.5 per cent. Even Legge's friends concede

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Principal figures in Marion county's most sensational murder case in years are show-n. Upper left: Ira M. Holmes, defense attorney; upper right, Herbert Schroeder. Lower left; Judge Frank P. Baker of criminal court. Lower; Prosecutor Herbert E. Wilson (left), and Floyd Mattice, chief deputy prosecutor.

at the wheel of his car and the auto plunged into a ditch about thirty-five miles w-est of Terre Haute. Schroeder was bound for his Mobile home from the Speedway races with a hitch-hiker as a passenger, when the alleged accident occurred, he told police. n n a TIME after time since the crime, police have pursued clews that came from all points of the country in their attempts to identify the man or youth who met the awful death in the auto. Relatives of missing men, including hitch-hikers, attempted to identify little scraps of clothing and trinkets, but each effort has failed. That Schroeder carried out the torch murder to reap more than $60,000 insurance and leave the country w-ith Miss Gertrude Kittrcll, his alleged Mobile sweetheart, is one of the state's allegations. Schroeder was a "tramp" auto mechanic for several years. He is the father of tw-o boys, Harold Herbert Jr. and Ernest Schroeder,

J "kiting” operations through the bank here, presenting drafts drawn on other banks in which he and the Caldwell Company were interested, obtaining cash when there were no collected funds behind the checks. He charged Colonel Lea entered names of "dummy” corporations and of his employes on paper in the Liberty bank, attaching only notes of guarantee. He asserted that "frequently” deposits of state money were received in the bank just before Colonel Lea was given “handsome loans,” and that on occasions persons In Lea’a office called the bank to ask if the deposits had been received.

INDIANAPOLIS, FRIDAY, FEBRUARY 20, 1931

that, insofar as actual -results show-, he and the board have been unable to accomplish much. But they answer that prices of these products would have sunk much lower had it not been for the board's intervention. They also insist that Legge's service has been that of an apostle. and that the farmer eventually will see the soundness of his advice regarding restriction of production, and put it into*effect. Legge himself, in discussing the board's inability to maintain prices, replies: “Stocks haven’t come back all the way, have they? Do you expect them to reach 1928 levels in a few days or weeks?" * a a LEGGE himself will be missed at Washington. He has been a colorful and picturesque figure. Even his foes admired his courage and his frankness.

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8. He calls his w-ife Leah, his two sons “Dimps and boys.” He w-as married in 1918 in Beeville, Tex. a a a AFTER the alleged murder, Schroeder fled from'lndianapolis to Mobile by bus, “hiding out” near his wife and children. Almost tw-o weeks later, Ear] C. Dykes, a Mobile garage owner, captured the fugitive near the home. Dykes was quoted as saying Schroeder begged to escape. Ira M. Holmes will defend - Schroeder.

You Can Bring Wardrobe of 1930 Up to 1931 Style

T AST YEAR'S old clothes can become this year's new styles by means of a few simple, inexpensive alterations. Mrs. Annette Guth, nationally known sewing expert, in a series of illustrated articles, will tell The Times women readers ways to make over past seasons’ costumes for wear next spring. Mrs. Guth has designed smart clothes for society women in the east and has taught sewing to thousands of women in New York. She will describe hew to make over silk or wol ensembles, how to convert last year's frocks into 1931 spring styles, how to make last season's spring suit look brand new, how mother’s dresses can be turned into chic new frocks for the young girl, and how to make over clothes for grade school children. Don't miss Mrs. Ruth’s informative, money-saving articles.

The first tvill appear Monday on the Home Page of M The Times.

The capital's exclusive set got a chuckle out of his answer to dowagers, who during the GannLongworth social spat, sought to avoid more trouble by asking him where he thought he ought to sit at table. “I w-ill eat in the kitchen,'* was/* liis reply, ‘-if that will help." Even President Hoover w-as amused by the unconventional way in whioh the chairman broke up the first White House reception to board members. Legge, who arises early, works long hours and retires before 10, suggested to another guest that it w-as time to leave. When he was told he could not pull out until the President had dismissed his guests with a “good night," Legge marched straight to Hoover’s chair. "Mr. President,” he said with a suppressed yawn, “I'm tired and sleepy. Don't you think you ought to go to bed and get some rest?"

SOME STATE COSTS WOULD BE CUT HALF Department Requests for Next Two Years May Feel Sharp Ax. The appropriation bill calling for $76,000,000 for the operation of the state government over the next two years is going to be so hacked and mutilated when it comes on to the floor of the Indiana house of representatives its authors won't know it. Imbued w-ith the determination to cut some departmental budget requests one-half and lop substantial sums from others, the house w-ays and means, public expenditures and budget committees held a joint meeting Thursday, with Representative Earl Craw-ford, Milton banker and Democratic caucus chairman, playing the role of chief ax wieider. Suggested Reductions Crawford came to the meeting armed with suggestions for reductions totaling $677,000 and he had gotten only as far into the bill as the Indiana and Purdue university appropriations. These suggestions included reducing the Governor’s emergency fund from $400,000 for the two-year period to $200,000; eliminating $13,400 for the state yearbook, and slashing the SIO,OOO Governor's mansion fund to $5,000; eliminating SIO,OOO for the conference of Governors, and cutting appropriation requests of the secretary of state, tax board, health board, industrial board, mines and mining board, and abolishing the employment commission’s personal service item of SIB,OOO. Practically all members of the three committees had in mind proposals for reductions, but none of them had time to make them after Crawford got through with his. Other Cuts Proposed He also advised cutting the conservation department’s capital outlay from $150,000 to $100,000; abolishing the $50,000 revolving fund of the public service commission; paring the adjutant general’s personal service fund, and eliminating $3,700 for the state fire marshal's dry cleaning inspection department and $7,000 for the state naval militia. Representative Delph L. McKes- | son, Democratic floor leader, took issue with Craw-ford on the elimination of the public service commission’s personal service item. “The commission has been handicapped by not having funds enough to prepare utility cases properly for the public interest,” asserted McKesson, Adjourning without detailed discussion of any of the cuts, the three committees decided to meet Saturday morning at 10 if the house is not in session. DEM OCRAUTTOCAUCUS Reduction of Salaries Will Be Considered at Meeting. Democratic members of the Indiana house of representatives will caucus at the adjournment of today’s session and probably scale downward some of the salaries provided for in the uniform fees and salaries bill. Both Democratic and Republican members of the house have indicated considerable dissatisfaction with some of the provisions.

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Mrs. Annette Guth

NEW BILL TO REMAP STATE Marion County One District in Democratic Plan. Representatives in congress whose careers will be affected by congressional reapportionment of Indiana have indicated in a letter to Senator Anderson Ketchum (Deni., Bartholomew-, Decatur, Franklin and Union) how they think the state should be divided. Ketchum is expected to incorporate the plan in a bill and present it in the senate within a few days. Although drafted by the Democratic representatives, the plan, if carried out, would insure re-election of Republican Representatives Will R. Wood, Fred Purnell and David Hogg; all who w-ere re-elected in November. Therefore, according to Ketchum, the plan has received indorsement of the G. O. P. representatives. Marion county would not be divided under the set-up and w-ould remain as one district although with more than 400,000 population. Opponents of the division of the county are supporters of Louis Ludlow, Seventh district representative, who it is reported, is strongly averse to any split.

BANKS ARESTRONGER Reserve Board Report Is Optimistic. By United Press WASHINGTON, Feb. 20.—Emerging from the period of readjustment spotted by many bank suspensions, the nation’s banking structure was viewed today by the federal reserve board as strengthened and able to finance business revival. In a review of banking developments covering the fifteen months ending Dec. 31, the board found the general banking system in a condition of “greatly increased liquidity.” Suspension of many rural and small city banks was said to have eliminated much weakness from the banking structure. PLANESMAYBEUSED IN WAR ON MOSQUITO Dropping of Larvicide Bombs Urged as Fight Measure. By United Press ATLANTIC CITY, N. J.. Feb. 20. —The theory of Homeopathy—that like cures like—may be put into practice in the war against Jersey mosquitoes. Robert L. Vannote, of Morristown, told the New Jersey mosquito extermination association today that mosquitoes may be effectively attacked by flying men. Airplanes could fly over the more remote Jersey swamps, he said, end drop capsule bombs containing larvicide. The moment the capsules disintegrate, the larvicide would prove fatal to mosquito eggs.

VETOED LABOR BILL MAY BE PUT OVER IN SENATE

Whether or not Republican senators will uphold the veto of Governor Harry G. Leslie on the “antiyellow dog contract’’ bill was scheduled for a test in the senate today. The bill, a house measure declaring illegal so-called “yellow dog” labor contracts, was vetoed by the Governor on constitutional grounds Thursday and immediately repassed by the Democratic house. Similar actioi”, was taken in the house on the mortgage exemption increase bill, bdt the veto was

Entered as Second-Class Matter at rostoffiee Indianapolis

Alexander Legge

Slashing Sign ANDERSON. Feb. 20.—Henry Breese Jr., Alexandria, has filed suit in Madison superior court here for a divorce from Mrs. Thelma Breese, alleging she quarreled constantly and once threatened him with a butcher knife after consulting an almanac to determine whether “the sign was right for butchering.” Asa result of this incident, Breese says, his wife caused his arrest on a charge of assault and battery. The couple w-as married in 1924.

DE PAUW WILL MARKFOUNDING Alumni Meeting and Church Service Planned, By Times Special GREENCASTLE, Ind., Feb. 20. Due to the fact that Founders and Benefactors’ day at De Pauw university is on Sunday this year, there will be no special chapel exercise. The De Pauw Alumni council will hold its regular February meeting on Saturday. President Oxnam is scheduled to speak before the council at a morning session and Dean L. H. Dirks in the afternoon. Council members will be entertained at a luncheon in Longden hall, Saturday noon, at which President Oxnam will preside. At a business session, reports of committees will be presented and nominations made for officers of an alumni member of the board of trustees. James M. Ogden, Indianapolis, is the trustee whose term expires this year. In place of the Founders and Benefactors’ day chapel service, a part of the service Sunday morning at the Methodist Episcopal church will be devoted to the occasion. President Oxnam will talk on Bishop Asbury, pioneer in founding Methodist colleges in the United States, and Dr. Henry B. Longden, vice-president of De Pauw, will talk on benefactors of the university. TWO U. S. CITIZENSON SOVIET COUNCILS Moscow Workers Made Representatives in Municipal Assemblies. By United Press MOSCOW, Feb. 20.—Two American citizens working as mechanics in Moscow factories have been elected to Soviets, or councils. John Randich, a Chicago tool maker, was elected by his fellow workers to represent them in the district Soviet. Anthony Koszuba of New York was elected to the city Soviet. A Soviet is a sort of municipal assembly in the case of a city soviet, or a district assembly in other instances. • Oratory Winner ANDERSON, Ind., Feb. 20.—John Atwater, Anderson high school senior, will represent Madison county in the national oratorical contest. He won over William Ulmer, Alexandria, in the finals of the county elimination event, speaking on “Congress and Its Powers.”

sustained in the senate Thursday afternoon, 26 noes to 20 ayes. Five Republicans voted against sustaining the veto and four Democrats voted to uphold it. The “yellow dog contract” bill was passed in the senate by a vote of 41 to 1, and it appeared possible it may be put over despite the veto. The bill was one of the principal victories for the organized labor lobby. The mortgage exemption increase would raise exemption on real estate for tax purposes Vrom SI,OOO to $1,300, taking, it was laid m sen-

Second Section

WORK STARTED BY PLANTS IN INDIANA CITIES - ! Connersville Reports Every Unit of Industry Has Resumed Activity. PORTLAND SHOWS GAINS • One Factory Alone Giving Steady Employment to 300 Persons. BY CHARLES C. STONE State Editor. The Times Outstanding in a survey of Indiana business and industry for the week ended today, is marked improvement of conditions in a number of cities, including Connersville and Portland. As further indication of improvement, the number of bank failures has decreased to a marked extent. An Connersville it is reported there are no idle factories and employment thus afforded has made dispensing of free meals no longer necessary. From 300 to 350 persons are working steadily in the Jay Garment Company plant at Portland. Ninetyfive are employed in three shifts by the Sheller Manufacturing Company. Full-time operations, with 110 employed, are reported by the Portland Forge and Foundry Company. Operations will be resumed by the Creamery Package Company. Radio Plant Busy Steady operation for the remainder of February and through March is forecast for the United States Radio and Television Corporation at Marion, w-hich is employing 1,024 persons. About April ’• curtailment is expected due to -asonal conditions. ihe General Parts Corporation c lokomo announces that it has taken over the full lines of service tor the Moon Motor Car Company of St. Louis, necessitating an increase in its w-orking force. Although manufacture of the Moon automobile has been discontinued, there are about 55,000 of the cars still in use, providing a market for parts. The American Sheet and Tin Plate Company’s plant at Gary will be placed on a capacity production basis next week. Officials refuse to state how- long this will continue, declaring operations are being conducted on a week to week basis. The zinc oxide department of the Grasselli Chemical Company at East Chicago has resumed operations, leading to a belief that the entire plant w-ill soon be working. Damaged Factory to Work Resumption of operations by Monday is planned by the Rieke Metal Products Corporation, whose plant suffered damages of $20,000 by fire this week. The corporation has several large orders, including one for 960,000 pieces and another for 300.000. In banking, the principal developments for the week included sale of the assets of the Citizens Bank of Clinton, o dest in Vermilion county, to the .rirst National bank, w-hich will give the buyer total assets of more than $1,800,000. Bank to Be Opened At Rensselaer, sufficient stock has been subscribed to reopen the Trust and Savings bank, which closed Dec. 16, and it is expected to resume business by March 1. Stock amounting to $75,000 was sold. Through purchase of the Rush County Power Company, the Southeastern Indiana Pow-er Company acquired about ninety miles of line, serving ten towns. Efforts are being made by the Chamber of Commerce at Mt. Vernon to obtain a lessee for the Van Camp Packing Company plant, following announcement of th owner that operations for the season this year are not contemplated, but giving consent for leasing. NOVELS OF MID-WEST - FLAYED BY EDUCATOR Not True to Life, Professor Says of Sinclair Lewis, Anderson. DES MOINES, la., Feb. 20.—Sam B. Sloan, veteran professor of novels at the University of lowa, today launched a vigorous attack upon the conception of the middle west, harbored by such w-riters as Sinclair Lewis and Sherwood Anderson. In an article in the Palimpsest, publication of the lowa State Historical Society, Sloan attacked certain books by a score of middle w-esterners as not true to the life found in the Mississippi valley. Included in his list were Carl Van Vechten, Ruth Suckow, Homer Croy and others. Grcensburg Man Dies B.y Times Special GREENSBURG, Ind., Feb. 20Funeral services for Thomas E. Day. 62, a resident of Greensburg nearly thirty years w-ill be held here. He died at Vicksburg, Miss., where he w-ent a few months ago in the hope that a change of climate would benefit his health.

ate debate, $100,000,000 from the tax duplicate. Those voting to sustain the veto in the senate were: Republicans—Adams, Beckett, Berkey, Brown, Clements. Priedley, Garrott. Hoadley, Hoffman. Holmes. Huff. Martin, Miller, Moorhead, Pell. Rowley. Sherwood. Shull, Slenker Southworth. Tormohltn, Walter. Democrats—Ballard. Cuthbertson. Gorman. Kehoe. Voting to override the veto were: Republicans—Alldredge, Hartietl. Lindley, Hejdl. Sib*. Democrat* —Brewster. Chambers. Clouser. Dennigan. Doogs, Drake. Druiey, Hal-m-Mi, Ketchum. Lochard. Morris. PerKT-i of St. Joseph, Perkin* of Marion, Each. William*, *