Indianapolis Times, Volume 43, Number 159, Indianapolis, Marion County, 12 November 1931 — Page 1

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RAYS OF HOPE FLASH ACROSS WALL STREET Turning Point for Business at Hand, Is Belief in Money Capital. COMMODITY PRICES UP Strong Support Given Banks in Time of Crisis Also Encouraging Factor. Throughout the land passes the word that there is a brighter tone to business, that we appear to be coming out of the depths of depression. At the same time, politics takes on added importance as the artillery of 1932 mobilizes. Raymond Clapper, Washington man- I ager of the United Press, recognized authority on national affairs, has started a tour of a group of Important centers Ito sound out the business and political situations. Is the "turn in business" real and lasting? What are the tangible causes and the intangibles for the new spirit? What are the 1932 trends in politics? What are leaders thinking and doing to turn the nation back to good times? First of the series, vital to the pocket- | books of ait. follows. BY RAYMOND CLAPPER United Press Staff Correspondent (CoDVriKht. 1931. bv United Press! NEW YORK, Nov. 12.—Reviving confidence is echoing thorug*h the canyons of Wall Street. Feeling here is that the real turning point in the depression is imminent, if indeed it has not arrived already. Faces downcast during two of the blackest years in the nation’s economic history are lighting up. Here, in the new money capital of the world, there is anew enthusiasm and a conviction that good times are coming soon. Perhaps it is premature, for New York is subject to quickly changing moods. But whether warranted or not the feeling exists. Four Factors Cited Four factors most often are suggested to account for this upswing in morale: 1. Increasing stability of commodity prices, together with recent spectacular rises in wheat, cotton, oil and security prices. One authority handling large financial operations in wheat predicts a rise to a level or 80 or 85 cents a bushel during the winter. 2. Deflation of production costs to the point where lower prices are possible on finished goods or services. 3. Strong support given the banking situation through organization of the $500,000,000 National Credit Corporation: co-operation of banks in helping one another; efforts of the Federal Reserve board and the controller’s office at Washington in adopting a drastic policy to avert threatened crises in some banking centers. 4. Evidence of a partial return of public confidence, which, when it matures, will mark the real turning point. Confidence Return Seen Everybody is talking about returning confidence. What do they mean by that? Several weeks ago, in one bank this writer learned about here, a depositor wrote out a check for his entire account, some $250,000 and demanded payment in gold. The bank refused, but paid him in legal tender—paper money. A woman, fearing bank failure, wrote out a check covering her full bank account and deposited the check in a safety box, according to one story going the rounds. A hoarder of vast means attempted to cache many hundreds of thousands of dollars in gold bars in a safety deposit vault, but the bank to which (Turn to Page 3) INJURED SUE FOR $1,900 Four Auto-Truck Crash Victims Take Cases to Court. Four suits to collect $1,900 in damages for persons who were injured in an automobile-truck "rash at Thirty-eighth street and Orchard avenue, Aug. 20, were filed in superior courts today. Plaintiffs and the damages sought are: Mrs. Lata Cunningham and her son Dale, each $500; Mrs. Auburn Fisher, S4OO, and William H. Fisher, in behalf of his daughter Sue, SSOO. Defendants in the case are Robert Lawrence, driver of the truck, and Raliegh Burk and John Arnold, coowners of the vehicle. ROWBOTTOM PAROLED Papers Arrive at Prison for ExCongressman’s Release. By United Press LEAVENWORTH, Kan., Nov. }2.— Parole papers for the release of Harry E. Rowbottom, former Indiana congressman, serving a sentence in the federal prison here on a charge of selling postoffice jobs, were received at the prison today. Rowbottom was expected to be released during the afternoon. He will be given the usual prison transportatiOn. The former representative served nearly eight months of a sentence of a year in the prison.

Righteous War ISy United Press BALTIMORE, Nov. 12.—Had Jesus Christ lived in 1911 he would have been the first to volunteer in the American army, to wear a gas mask, shoulder a rifle and enter the trenches, according to the Rev. T. Andrew Caraker, speaking at an American Legion banquet here.

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The Indianapolis Times Rain this afternoon and probably tonight, followed by generally fair Friday; colder.

VOLUME 43—NUMBER 159

Boy Sees Father First Time in 11 Years—in Jail

FOR the first time in eleven years, a woman saw her former husband today, and a 17-year-old boy gripped hands with his father. The boy is John R. Horne, 632 East Vermont street, who went to the county jail, gathered his father's clothes and took him to the home where the youth lives with his mother. William E. Horne, gray-haired traveling salesman, returned to Indianapolis about two months ago, after his sudden departure eleven years ago. At that time his son was 6, just ready to enter grade school. Today Horne saw the same boy, but this time the lad was taller than his father. Years behind were the school days on which the boy had embarked when Horne left home.

BANDIT MOB RAIDS TWIN STATE BANKS

Nab Hoover Kin

C. V. Leavitt (above) of Santa Monica, Cal., brother-in-law of President Hoover, was arrested by federal agents on a charge of liquor posession. Leavitt was ordered to trial Nov. 16. His wife is Mrs. Mary Hoover, sister of Mr. Hoover.

MINE TRIAL STARTS Somerville Bombing Case Heard at Princeton. By United Press PRINCETON, Ind., Nov. 12. Thomas B. Morton, one of ten men indicted on conspiracy charges growing out of recent bombings at Somerville mines, went on trial in Gibson circuit court here today. The trial was to have started Monday, but was delayed because of Morton’s illness. Judge Thomas Duncan, sitting as a special jurist, heard the^case. Two indictments were returned against the defendants. The first charged them with implication in only pne of the three outbursts at Somerville. The second charged them with conspiracy in all three. Special Prosecutor Sanford Trippett announced that state’s testimony would consume probably three days. Witnesses for the defense have been ordered to appear next Monday. The state tentatively accepted a jury, composed mostly of farmers, after an hour and a half of questioning. Two special venires of seventy-five names had been drawn for the trial. JOHN HELD JR. WEDS ‘MISS AMERICA —1928* Famous Cartoonist Married Beauty He Selected as Prize Winner. By United Press NEW YORK, Nov. 12.—John Held Jr., famous for his jazz age carricatures, has been married to the New Orleans beauty he helped select as the winner of the 1928 beauty contest at Galveston, Tex. Held, now 42, was a judge at the contest at which Miss Gladys Moore as “Miss New Orleans” won first prize. They slipped away to Stamford, Conn., Tuesday and were married. The cartoonist was divorced from his first wife last September. ‘TOW-IN’ WRONG AGAIN I Truck Is Left Parked in Front of Fire Plug for Twenty Minutes. Driver of Police Tow-In truck No. 6 shouldn’t have had such interest in dogs today. Visiting in a dog and cat hospital in the 800 block East Washington street, according to neighbors in that vicinity, he left his truck parked in front of a fire plug for twenty minutes. In almost the same space several days ago, a restaurant proprietor I nearby was given two stickers for parking his car. THIEF HAS DEADLY LOOT One Whiff of Gas in Stolen Car Enough to Kill Him. By United Press MINNEAPOLIS, Nov. 12.—Twin I Cities police were striving today to | catch a thief before he opens a large can of cyanide gas which was in the automobile he stole. One whiff of the gas would be enough to kill a man, H. G. Ahearn, owner of the automobile, said,

Home was released from jail this morning on the plea of Mrs. Horne, who had filed charges of child neglect against her former husband when he returned to the state, before Juvenile Judge John Geckler. Geckler, who will rule in the case Monday, said he saw no harm in Horne’s release, pending final decision of the court. When Mrs. Horne’s eyes met those of her divorced husband, she extended her hand. “Well, William, I guess there’s no reason why we shouldn’t speak to each other, is there?” she said. “Robert, you go with your father and get his clothes and bring him out to the house.” So John Robert Horne went to the county jail and took home the father, who, for eleven years, had been missing.

$27,500 Is Cash Loot of Eight Gunmen at Madison, Ind. liH United Press MADISON, Ind., Nov. 12.—Eight bandits invaded the National Branch Bank of Madison and the Madison State Deposit and Trust Company, adjoining banks, here today and escaped with an undetermined amount in bonds, in addition to $2,500 from the trust company and $25,000 in cash fronuthe branch bank. The bandits, all of whom carried automatic pistols, raided the institutions, which are side by side, simultaneously. The institutions are connected by joint doors. Twelve employes were in the two institutions when five of the robbers entered. One bandit stood guard in front of the-banks and two more were on watch in the rear. Herded Into Office All the employes were herded into the office of the president, John Tevis, in the rear of the building, and forced to lie on the floor, faces downward. One of the gunmen stood guard over them while the others scooped up the money from the tellers’ cages. The vault of the National bank was entered, but the robbers were unable to open the Trust company vault. . Four customers who were in the National bank when the men entered were forced to accompany the employes to the rear of the building. William Matthews, connected with the insurance department, attempted to escape from a rear window. One of the guards there captured him and forced him to return to the president’s room. Knew Way About H. L. Lyon, secretary of the Trust company, said the men were in the institution ten minutes. Lyon said the men appeared to be well acquainted with the interior of the institutions and executed the double holdup with precision. Local authorities were notified as soon as the bandits left the building. State police in this section joined in the pursuit of the bandit auto. It was believed, however, that the men would abandon the auto in which they made their escape and continue in other machines. The auto in which the bandits fled was a black sedan bearing an Ohio license plate. They started northward on Road 29, in the direction of North Vernon. Authorities believed they would go toward Cincinnati. Bank Bandit Killed By United Press ST. LOUIS, Nov. 12.—L. Gregory Dowling, president of the Midland Savings bank, opened fire on three bandits who attempted to hold up the small suburban institution at noon today, killed one of them, wounded another, and himself was wounded in the exchange of shots. Police said that the dead bandit had been identified as Ray Dowling, a gangster, and the wounded accomplice as Ben Bethel. Hourly Temperatures 6a. m 64 10 a. m 58 7a. m 59 11 a. m 58 Ba. m 59 12 (noon).. 60 9 a. m 58 1 p. m 63

OGDEN IS READY TO FACE GRAND JURY

Attorney-General James M. Ogden today awaited service of a subpena to appear before the Grant county grand jury at Marion and produce his proof of the charges that Marion is “seething with vice and corruption.” Prosecutor Harley H. Hardin, target of the recent Ogden attacks, said the appearance writ was issued Wednesday night, and would be served by a Marion county deputy sheriff. The grand jury convened this morning. The summons will demand that Ogden bring letters and other information purported to support the charges of wholesale law violations in the city and Grant county. Og- | den is expected to leave Indianapolis following receipt of the writ. Situation between Hardin and Ogden appeared more strained today, after the county prosecutor said he believed he was within his right in calling the state’s attorneygeneral, "because of methods used by Ogden’s probers.” It was learned that Hardin is in

INDIANAPOLIS, THURSDAY, NOVEMBER 12, 1931

TERRE HAUTE BANKER TAKES H!S OWN LIFE James Cooper, Prominent in Legal, Financial Circles, Cuts Throat. SUFFERED BREAKDOWN Aided Frank Dailey in U. S. Prosecution of Ballot Fraud Cases. i By United Press TERRE HAUTE, Ind., Nov. 12. James Cooper, 57, president of the Terre Haute Trust Company, one of the largest banks in western Indiana, committed suicide at his home here today. Cooper slashed his throat with a razor. Last Monday Cooper suffered a nervous breakdown. He had been under the care of a physician since. The Citizens National Bank and Trust Company closed its doors shortly before noon today, after a morning of heavy deposit withdrawals. Directors issued the following statement: “The unusual demand for money today brought about by the baseless fears caused by the untimely death of James Cooper, president of the Terre Haute Trust Company, has made it necessary to close the Citizens National Bank and Trust Company for a short period, as a protection to depositors.” It also was announced that a thorough check of the institution’s finances had revealed that the bank was “thoroughly solvent.” Meanwhile, depositors keep up a steady withdrawal of funds from the Terre Haute Trust Company as a result of the president’s death, but the company remained open. Directors met this morning and elected temporary officers. James Cooper, well known in Indianapolis legal circles, was a member of the Terre Haute law firm of Cooper, Royse, Gabmill & Crawford. He maintained the legal practice in addition to his duties as head of the Terre Haute Trust Company, presidency of which he assumed several years ago when James S. Royse, then president of the bank, committed suicide. Cooper was assistant to Frank G. Dailey, Indianapolis attorney, in 1915 in federal court trials growing out of the Terre Haute election fraud. Cooper once was prosecutor of Vigo county. CARAWAY’S WIDOW IS TALKED AS NOMINEE Arkansas Democratic Leaders Likely to Back Her. LITTLE ROCK, Ark., Nov. 12. Democratic party leaders of Arkansas probaHy will offer the nomination to fill the unexpired term of United States Senator Thaddeus H. Caraway to his widow, the United Press was informed reliably today. They are doing this, it was said, in part to avoid a dispute in the party. The nomination probably will be made late next week when the state central committee of thirty-two persons assembles here. Call for the meeting, however, has not been issued pending the election call which must be made by Governor Harvey Parnell. Mrs. Caraway already has made it known she will accept the nomination, which is tantamount to election, but is inclined not to seek it. BUT THEY LIKED DOG Animal Pampered Pet of Parents Who Tortured Girl, 13. By United Press WASHINGTON, Nov. 12.—A little brown dog was a pampered pet in the home of Mr. and Mrs. Harry N. Riley while they were alleged to have been torturing Edith Riley, 13, by keeping her locked ir a dark closet for several years. The dog was allowed to run and play as he pleased. Pictures of Mrs. Riley, Edith’s stepmother, show her fondly petting the dog. These pictures were taken while Edith was in Gallinger hospital, her frail body being eared for by nurses and doctors.

possession of affidavits oi a man and his, wife which are saifT to aver they were urged to offer testimony damaging to Hardin. Ogden appeared before the grand jury for a short time several days ago, at the opening of the probe into the alleged corruption. This appearance was on invitation of jurors. Hardin said he expected to be able to lay all his evidence before the jury within a few hours, and might complete the investigation later this afternoon. Special prosecutors, named tor'd the probe, probably will take two hours to present their evidence, it was said. Grand jurors are expected to report findings of their investigation in Grant circuit court Friday, as Saturday is the close of the present court term. Ogden said "everything looks good up there,” and told attaches of his office and reporters he would answer the summons from the grand jw. (, ,

SUITOR KILLED BY BROTHER WRONGED GIRL, SAYS FATHER

‘Unwritten Law’ Defense for Son Is Indicated by Parent’s Story. By United Press PHILADELPHIA, Nov. 12. Charges by the father of pretty brown-eyed Rose Allen, debutante, that she had been wronged by her slain suitor, Francis Donaldson 111, are a “libel on his daughter,” Mrs. Wharton Donaldson, dead youth’s aunt reported today. “If any one wants to libel his daughter or sister, that is no concern of ours,” she said. “Nothing they can say can hurt the dead boy’s character. And anything they say against this dead boy can only reflect on those who say it,” she continued. That statement by the spokesman for the Donaldson family was the response to a detailed public statement by Horace Allen, father of Rose and Edward, Donaldson’s slayer. He charged that Donaldson and the girl had confessed her seduction in Scranton, Pa., last August. He claimed that the Allen family wanted a marriage, but that the boy’s socially-promment parents rejected such a proposal because Rose and Francis were “too young.” Indicates ’Unwritten Law’ Allen’s statement admitted his own “poverty,” brought on by business conditions of the last two years, and said he was living in his expensive apartment as a guest of the owner. It indicated an “unwritten law” defense for Edward Allen, 23, who shot and killed Donaldson Monday night after a fist fight over Rose. Although Rose was wronged, according to her father, last August, she and Donaldson were permitted to see one another “to allay gossip,” he said. “Then last Friday the climax came,” his statement continued. “They had gone out together. I awoke at 2 and heard a noise in Rose’s room. I walked in and found them sitting in their evening clothes on the bed. “When I objected, Rose struck me in the face. Then Donaldson followed me into my room and struck me.” Reviews Events of Killing Edward did not learn of the Friday night incident until Monday, according to his father. Then Allen reviewed the events of Monday night when Donaldson was killed. Donaldson and his friend, Lucas, entered the apartment. “Eddie was lying on the couch. He turned toward Donaldson and said: ‘You must leave this apartment.’ “With an oath, Donaldson said he wouldn’t. Lucas acted as defiantly as Donaldson. My son then arose and told Donaldson to leave. Donaldson knocked him to the floor. Lucas said: ‘Kick him in his face.’ Young Allen called hotel help, and still Donaldson refused to leave, the statement said, after which the son started his ten-mile drive for the shotgun with which he killed Donaldson as the latter was leaving the apartment. Tragedy Is Re-Enacted “My boy had no intention to shoot Donaldson. It was Donaldson’s violent conduct toward my boy when he called upon Donaldson t p leave the apartment which caused this unfortunate fatality,” the father said. A previous statement to police by Rose said her brother had threatened” to blow Donaldson’s head off” if he entered their apartment. The father described a trip Rose made to Bay Head, N. J., and later to Warrenton, Va., with Donaldson. One night was unaccounted for, he said, and when another son, William, doubted Rose s story, Donaldson knocked out two of his teeth, the father charged. Edward Allen re-enacted the tragedy Wednesday for police, and was taken to Lower Merion jail pending his return to Norristown, where he will await trial. SILENT ON EDISON SUIT Inventor’s Son Ends Conference With Lawyers on Will Fight. By United Press WILMINGTON, Del., Nov. 12. “My lips are sealed and any further statements must come from my attorneys,” William L. Edison said today concerning his proposed suit to break the will of his father, the late Thomas A. Edison. Edison returned to his Wilmington home Wednesday night after several days in New York conferring with his attorneys.

ACTRESS HOOVER GUEST Mary Pickford Invited to Lunch at White House. By United Press WASHINGTON, Nov. 12.—President Hoover invited Mary Pickford to lunch with him today at the White House. The invitation included Douglas Fairbanks, but Doug was detained in New York.

On the Air Want to meet the most charming prince that the charming “Merry Widow” ever had? Want to meet one of the best known and beloved figures on the stage? Then tune _in promptly at 12:15 o'clock Friday over WKBF and hear Walter D. Hickman of The Times interview Edith Taliaferro and Donald Brian, stars of “Private Lives,” now at English’s.

Girl in Tragedy

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Rose Allen

CALLS UTILITY RATESSESSION Sullivan Asks Committees to Meet on Plans. Mayor Reginald H. Sullivan’s committees to confer with utility companies in efforts to obtain reduction of water and light rates, were to meet this afternoon in Sullivan’s office. Purpose of the meeting is to organize the groups for the series of parleys, which, city utility patrons hope, will result in rate reductions. The groups probably will outline an immediate action plan for their conferences with heads of the Indianapolis Power and Light Company and the Indianapolis Water Company. Civic leaders and business men form the personnel of Sullivan’s committee. Meanwhile, leaders of the central committee of the south side civic leagues named a finance group to raise funds for the legal fight. Members are John White, chairman: George O. Lehman, secretary, and Louis Markum, treasurer. These members, with Thomas F. Carson, realtor, and Lawrence G. Holmes, executive secretary of the Indianapolis Real Estate Board, form the committee’s executive group. DRAFTS STEEL SYSTEM Plan of Action Is Outlined by W. M. Wood, Expert in Industry. By United Press WASHINGTON, Nov. 12.—A farreaching system designed to ration business in the steel industry without restraining the freedom of competition was outlined today by W. M. Wood, director of the American Institute of Steel Construction. Wood, following a conference with President Hoover, said the system would seek to protect the smallef plants under a program of “live let live.” He said he also intended to lay his proposal before the department of justice. “There has been a tendency to remove smaller units from the industry and thereby remove competition,” Wood said. CITY LEADTrS TO TALK Stetson and Stout to Speak at Annual Boy Scout Dinner. Paul C. Stetson, superintendent of schools, and Elmer W. Stout, president of the Fletcher American National bank, will speak at the annual dinner of the Indianapolis and central Indiana council of the Boy Scouts, held at the North M. E. church at 6:30 Tuesday, Nov. 17. Members of the committee in charge are: W. D. Hammer, Irving Williams, Wallace O. Lee and F. O. Belzer. Aim of the program will be to show the influence of the Boy Scout movement for greater patriotism and community service. The dinner is to be open to the public. Leg Broken in Freak Mishap By United Press UNIONTOWN, Pa., Nov. 12.—An automobile struck a dog and hurled it with such force against Steve Vozenilek that the man’s leg was broken.

MIDWEST IS RAKED BY WINTER STORM

By United Press CHICAGO, Nov. 12.—Fog and sleet covered the middle west today as dropping temperatures heralded a return of winter weather. One death was caused in Chicago when a railroad employe was run down by a train in the heavy mist. Roger Davy, 25, Wisconsin Rapids (Wls.) aviator crashed to his death in his plane when visibility was cut down by the storm. The Rocky mountain region had its first real taste of winter. Cold winds, snow and rain were prevalent. The storm centered over northern Arizona then started ■ V

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CHINESE OPEN NEW SMASH IN MANCHURIA; OUTNUMBER JAPANESE FORCES 10 TOl Nipponese Army Rapidly Being Surrounded by Foe, Well Equipped With Russian Weapons. BRIAND DEMANDS INVESTIGATION Washington Retains Hope That Peace Will Prevail, Following Receipt of ‘Conciliatory’ Word. Bt United Press Threats of renewed fighting in Manchuria continued today in the Tsitsihar and Chinchow areas, with hints of Japanese occupation of Soviet-controlled areas. The United States department of state saw indications of a more conciliatory Japanese attitude, and new hopes of direct settlement of Japan’s troubles with China. The Tsitsihar correspondent of the London Daily Mail quoted General Ma Chan-Shan, foe of Japan, as saying he understood Japanese soldiers were advancing north of Tsitsihar, “possibly intending to prevent interference of the Soviets.” The Japanese government will stress alleged Chinese violation of treaties in placing its case before the League of Nations council in Paris Monday.

Briand Sends Notes By United Press GENEVA, Nov. 12. Aristide Briand, president of the League of Nations council, sent a note to China and Japan today, insisting that it was necessary for neutral observers to investigate conditions in the Nonni river bridge and Anganchi districts. Japanese are intrenched north of the Nonni river bridge, facing massed Chinese forces south of Anganchi, near where a battle has been threatened for several days. The Nonni area also was the scene of the most serious clash of the Manchurian crisis, when Japanese soldiers defeated Manchurian troops last week. i Briand’s note said it was necessary to collect information on conditions in connection with the council’s resolution of Sept. 13, asking for withdrawal of Japanese into the South Manchurian railroad zone. Washington Is Hopeful BY JOSEPH H. BAIRD United Press Staff Correspondent WASHINGTON, Nov. 12.—The state department found reason to believe today that Japan has adopted a more conciliatory attitude and that there is new hope of settling the Manchurian controversy by direct negotiations with China. Just how much Secretary Stimson’s secret conversations with Tokio have had to do with this change of heart officials would not say. However, Stimson himself characterized Japan’s latest aide memoire as “conciliatory.” Officials said it indicated a clearer' understanding on the part of Japan as to how its relations with China are viewed here. These observations, connected with the known fact that Stimson has been speaking very frankly to Tokio about its course in Manchuria, indicated to observers that the secretary’s efforts have been at least partially successful. Stimson Maintains Secrecy The full measure of their success cannot be judged, because Stimson consistently refuses to divulge vfoat he and Foreign Minister Shidehara have been saying to each other. Stimson’s secrecy drew a mild rebuke today from the Woman’s International League for Peace and Freedom. Miss Dorothy Detzer, executive secretary, wrote Stimson a letter appealing for publication of the exchanges, and observing: “It is unthinkable that the United States government should persist in this secret diplomacy, which apparently is being used to give an entirely erroneous impression.’ U. S. Seen as Japan’s Friend Miss Detzer inclosed a clipping from a Japanese newspaper, which said: “Official circles Monday intimated that the recent attitude of the United States toward the Manchurian incident, which has been misunderstood to some extent in Jafian, especially after the recent participation of an American observer in the league council, now has come to be appreciated considerably by the Japanese government, as it has been made clear that the United States is very favorably inclined toward Japan.”

toward the northeast. Snow stems at Salt Lake City held air mail planes to the ground. Rains that fell in Indianapolis and the remainder of the state today were forerunners of a drop in temperature, which, the weather bureau forecasts, will send the mercury to 45 for Friday morning. With northeast movement of the unsettled area, generally fair weather is expected Friday. Although Indianapolis received only .11 inch of rain in the last twenty-four hours, northwestern Indiana reported heavy downfalls, weather bureau said.

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Chinese Start Advance BY D. C. BESS United Press Staff Correspondent MUKDEN, Manchuria, Nov. 12. The Chinese have started moving against the intrenched Japanese forces on the Nonni river front, it was annouced today by headquarters of General Shigeru Honjo, commanding the Japanese in Manchuria. The announcemet said Chinese cavalry from Anganchi, below Tsitsihar, had moved southward, passing to the right of Tashin, where the Japanese are centered, and threaten to cut off the Japanese •ear. “The situation is dangerous and a Chinese attack is expected at any moment,” the announcement said. If any considerable force of Chiese occupied a position south of the Japanese, the latter’s comparatively small force would be hemmed in, and confronted from the north by an immensely superior force of Chinese. Get Equipment from Russia Honjo’s headquarters §aid 20,000 Chinese were now mobilized at Anganchi, with equipment received in the last week from Russia. “Chinese in Chinese uniforms are arriving at Anganchi from Russia,” the announcement said. The Soviet consulate admitted there are about a hundred Chinese in the Red Army, but ridiculed the Japanese report. Headquarters declined to reveal the number of Japanese on the Nonni, but it was disclosed on reliable authority to be about 2,000. The Japanese therefore are outnumbered ten to one. It is difficult for the Japanese to move up reinforcements quickly because of the single-track railway. Government Speeds Plans While hostilities threatened in Heilungkiang province, the independent government favorable to Japan which has been set up at Mukden hastily was establishing its authority everywhere. Office seekers crowded the provincial headquarters, which announced today the year’s budget, reducing military expenditures from $65,000,000 to $22,000,000 (silver), abolishing all surtaxes and reducing taxes generally. The government swiftly was reestablishing a financial system and encouraging Chinese business men to resume business with the reopened government bank, using the * Mexican dollar as standard of currency. Battle Is Renewed BY MILES W. VAUGHN United Press Staff Corresoondent TOKIO, Nov. 12.—Japanese troops in Manchuria renewed warfare against Chinese irregulars over a wide area north of Mukden today, and dug in along the Nonni river against a long-threatened attack by troops in Heilingkiang province. The important city of Changchun lying some 185 miles north of Mukden at the south Manchurian railroad terminus, was reported In imminent danger of an attack by 5,000 bandits, who defied an onslaught by Japanese soldiers and bombing planes. The bandits, reported starving, continued their attack, despite heavy casualties. Another large force of disbanded Chinese soldiers was attacked and dispersed by Japanese seventy-two miles northeast of Mukden. Fortyone Chinese were killed, increasing the dead in today’s clashes to more than 120. Four Japanese were wounded. Despite an intensive campaign by (Turn to Page Fourteen)

Rift Revealed By United Press HOLLYWOOD, Nov. 12. Helene Costello, motion picture actress, has separated from her husband, Lowell Sherman, actor and director, and retained an attorney, but refused today to say if a divorce action was contemplated. Sherman denied the rumored separation but the actress’ attorney confirmed the report.

Outside Marlon County 3 Ceuta