Indianapolis Times, Volume 43, Number 258, Indianapolis, Marion County, 7 March 1932 — Page 9

MARCH 7, 1932

BILL TO ERASE U. S, DEFICIT IS GIVEN CONGRESS Long' Fight on Sales Tax Is Foreseen as Emergency Measure Is Filed. H a United Press WASHINGTON, March 7. - A battle over balancing the budget that will last for several weeks begins today with,introduction in the house of the new $1,096,000,000 revenue and tariff bill. In this measure, which the house will tako up Thursday, congress confronts in the $695,000,000 manufacturers sales tax anew principal of taxation as far-reaching, perhaps, in its social and economic consequences as the income tax which was written into the permanent law, through the constitution, nineteen years ago. That tax was designed to curb (he growing concentration of wealth in a fewyhands, representing the culmination of a social and economic revolution carried to fruition by Woodrow Wilson. The sales tax, according to its opponents, will spread the tax burden, conversely, among the great conuming and producing masses. Termed Emergency Measure Its Democratic and Republican sponsors, sensing (lie rising undercurrent of opposition to this new principle, offer the sales tax merely as an emergency measure to last until July 1, 1934, with the argument that, it must be utilized because of failure of the income tax to produpc sufficient revenue in a depression era. Some of its opponents fear, nevertheless, that the sales tax may be written permanently into the tax structure, and their fight will be with this in mind, though they oppose introduction of such a tax even as a temporary measure. Championing of the bill will be in the hands of a regular Republican and Democratic coalition, which is sponsoring it as a "nonpartisan” measure. The administration has indorsed it. The bill peculiarly is a hybrid measure. It embodies tariff features in the 42 cents a barrel tax on imported oil_and gasoline and the countervailing section, applyng to the 2lt per cent rate to all imports like in character to manufactured goods which come under the sales tax. Matt to Be Taxed This tariff complexion will make the bill vulnerable to all sorts of amendments to include other products, which are expected to be offered in house and senate. The bill also is vulnerable to wet attack. For it recognizes the growth cf the American ‘ home brew industry, despite prohibition, by levying a tax on malt, grape concentrates and wort., being widely used by the citizen to manufacture his own beer and wine. In reaching beyond the income and the sales tax, the ways and means committee instituted some old and new excise taxes to help balance the budget, including a broad 10 per cent amusements tax on all admissions over 25 cents, a revival of the war days, a tax on telephone, telegraph and radio messages, and a tax on lubricating oil. New Income Tax Additional income taxes to be paid by the person of ordinary means under the new bill are shown by the tables appended. The new normal rates, 2 per cent on the first $4,000, 4 per cent on the next $4,000. and 6 per cent above Chat, do not apply, however, until next year. Married Individual, with one dependent. Present New Income. . Tax. Tax. < | ,0110 None None 53,H00 None None <(.1111(1 None S 1.50 <I.OOO X l.l:t 1K.50 <5.000 13.3 H HI .so <IO.OOO 03.35 153.00 Single person, no dependents. Present New litpomc, Tax. Tax. <I.OOO None None <3,000 * 5.113 < 15.00 53.000 Ifi.XS 30.00 <4,000 IK.|3 15.00 $5,000 30.38 00.00 MO. 000 153.15 335.00 WATER RATE HEARING IS POSTPONED AGAIN City's Plea for Reduction Will Be Heard Friday, March 22. Second postponement has been announced for the Indianapolis Water Company rate reduction hearing before the public service commission. Date now has been shifted to Tuesday, March 22, upon request of the company. Commissioner Harry K. Cuthbertson of the public service commission, who has charge of the Indianapolis rate reduction petitions, said the shift was made because H. S. Schutt, vice-president of the company, uould be unable to be present Thursday. The date change has been approved by Mayor Reginal H. Sullivan, he said. Hearing of the Indianapolis Power and Light Company rate reduction case is scheduled for March 16. LEAGUE SEEN FAILURE Hr. Oxnam Says It Was Based on Tost-War Political Differences. U'j Tim*'fi S/MK'i ul GREENCASTLE. Ind., March 7. speaking at a vesper sendee here Sunday night, Dr. G. Bromley Oxnam. president of Dc Pauw university, predicted the Geneva conference will not succeed in formulating a successful disarmament program. Dr. Oxnam declared the League of Nations ineffective, saying it is based on political diqerences existing during the period immediately following the World war. HOLLYWOOD EYES FOX Film Industry Suspects Former Producer May Try Comeback. lift I nited Press HOLLYWOOD, March 7.—The arrival in Los Angeles Tuesday of William Fox, former head of the Fox Film Corpoiation, is causing speculation in Hollywood as to his plans. Rumor credits him with having recently made a large fortune in the stock market, which might influence him to enter the motion picture industry again, possibly as an independent producer.

KIDNAPERS REAP MAIN HARVEST IN MIDWEST

Fred ‘Killer’ Burke Fathered Racket That Nets Milli ons to Gangsters

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Alexander G. Jamie tabove), chief investigator for Chicago’s famous "Secret Six.” who led the hunt that netted operators of the midwest kidnap ring.

HOE VALUE TO CHILD IS CITED Parental Love Vital, Says Noted Psychologist. No institution, regardless of how scientifically conducted, can take the place of a good home in the life of a child, Dr. Smiley Blanton, noted child psychologist, told the open forum at Kirshbaum Community Center Sunday night. Dr. Blanton’s lecture was the last of the forum series conducted under auspices of the Jewish Community Center Association. "Assurance of parental love is an absolute essential in avoiding emotional tangles in childhood, which may handicap the entire future,” Dr. Blanton declared. "This assurance only can come naturally through contact of parents and child in the home.” He warned against both overindulgence and overseverity in child training and opposed ever striking a child. The parent should understand the child's problems and not punish but remove the causes of them, he urged. Dr. Blanton is for using common sense and individual guidance, steering a course between the old and new psychology schools. The speaker heads a clinic at New York City and is professor of child study at Vassar college. * PLANE DROPS FOOD TO 6 SNOWBOUND MINERS Mail Pilot Answers Plea Carried to Village of Hero of Group. By United Press SALT LAKE CITY, Utah, March 7.—Near starvation, six miners trapped by deep snow in a tiny cabin in the Nevada mountains had food today that was dropped for them from an airplane. A seventh miner, at the risk of his life, completed a heroic journey through the wilderness from the cabin to Battle Mountain, a little community in the hills. He told of the plight of his six comrades, and aid from Salt Lake was requested. D. E. Broughton, air mail pilot, made a forty-mile detour on his regular flight, circled low over the snow-covered cabin, and J. C. Crain co-pilot of the ship, “bombed” the six mem with packages of food. HOT CEMENT TESTED No Improvement in Texture of Roads, Experiment Reveals. Hot cement does not improve the texture of concrete roads, tests made by the state highway department for the National Technical Society disclosed. Report on the tests, which were made on the heavily traveled Dunes relief highway near the Calmet district cement mills, appears in the Engineering News-Record of New York. Details of the tests are set out, showing that instead of the usual procedure of using cold cement the material was taken hot from the mills and used in the mix. Similar tests were made in other states. The Indiana tests were under supervision of William J. Titus, chief engineer of the state highway department, and P. D. Meisenhelder, tcct engineer. MAP SALES PROGRAM 100 Frigidaire Dealers Attend Convention in City. Sales convention of 200 Frigidaire dealers from central and southern Indiana was held today at the Claypool at which a national business program for 1932 was presented. Clark S. Wheeler, Indianapolis distributor for Frigidaire, will preside, assisted by R. S. Hays, metropolitan sales supervisor, and E. M. Nigh, provincial sales manager. New air-conditioning equipment, as designed by the company’s engineers, will be explained at the session. Economies to make electric refrigeration available to thousands of housewives will be discussed. NOTEOAUTHORTO SPEAK David Seabury to Appear at Caleb Mills Hall. David Seabury. nationally known author, will speak tonight at 8:30 at Caleb Mills hall under auspices of the Orchard country day school. His topic will be "Ourselves In Environment.” Dr. R. Clyde White, director of the board of social research of Indiana university, will introduce Seabun 1 . Mrs. Guy Wainwright is in charge of ticket sales. Teachers, librarians and students will receive a special rate.

''JpHE amazing way in which kidnaping has become a major underworld industry is nowhere better shown than in the last few months in the middle west. Kidnaping—the “snatch racket,” as underworld lingo puts it—has ceased to be the work of isolated criminals working on their own and has become the job of a highly organized syndicate of desperadoes with headquarters in Chicago, Detroit and St. Louis.

Apparently, the racket first was organized in Detroit—and the notorious Fred (Killer) Burke was one of the men who organized it, which shows just how tough the controlling gang is. Detroit, a little more than a year ago, managed to round up some of the leaders of its group and they are now in prison. But first the gang had extended its activities to Chicago and St. Louis, and it is now firmly entrenched in those two cities. a a a IN Illinois alone, forty-nine kidnapings have been reported officially in the last two years. But authorities admit that for every kidnaping reported there may be a dozen more in which no complaint is made because of fear. An average of the estimates made by men in a position to

know puts the number of kidnapings in the Chicago territory at more than 200, with a toll of more than $2,000,000 paid to the ring. That sum may seem high. But here are a few recent victims and the

James Hackett

prices that were paid for their freedom: James Hackett, gambler, $150,000; Robert C. Fitchie, former president of the Illinois Federation of Labor, $59,000; Jack Lynch, owner of a racing information bureau, $50,000; Harold Cusack, beer hustler, $15,000; Dr. and Mrs. Max Gecht $5,000, of which $2,000 was paid on account; Howard Woolverton, South Bend, Ind., banker, reported variously from SB,OOO to $50,000. And those are just a few of many officially reported cases. Existence of the kidnaping ring has been discovered by operatives working for Colonel Robert Isham Randolph, founder and head of the Chicago Association of Commerce’s "Secret Six,” and Alexander G. Jamie, wlio directs this crime-fighting organization's activities. a a a ‘•''•pHE syndicate,” says Jamie, -L "is made up of a small army of desperadoes, and, from glimpses we’ve got, its makeup sounds like an Edgar Wallace thriller. "The man at the head of it, whose identity we haven’t yet discovered, is evidently a highly capable business executive.

Mrs. Woolverton H. A. Woolverton "The syndicate members seem originally to have been bank robbers. They also have dabbled in booze running, hi-jacking and in gambling. But kidnaping is their main business, now that they’ve found out how profitable it is. "Our investigations have shown that most of Chicago's borderline characters with the exception of the A1 Capone gang—with which the syndicate has a definite working agreement—have been victimized. "Gambler after gambler in Chicago and downstate has been victimized. Now, however, it seems that, the ring has taken 'about every possible victim from the rackets and is branching out to seize reputable citizens. The seizure of Woolverton, the manufacturer, Is evidence of this.” Indeed, Colonel Randolph himself has been threatened with kidnaping, and he admits that he takes the threats seriously enough to refuse to ride in his auto without having the doors locked and a loaded pistol on the seat beside him. It also has been reported that the gang once laid plans to kidnap General Charles Gates Dawes, recent ambassador to Great Britain, a a a PROMINENT Chicago gamblers, such as Bill Johnson, Billy Skidmore, an<J others, never go anywhere without armed guards because of their fear cf kidnaping.

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Mrs. Georgia Gecht Dr. Max Gecht

But it isn’t the underworld alone that is afraid. Homes on Chicago’s exclusive “north shore’’ district are guarded thoroughly by private watchmen, for fear that the gang will seize the children of wealthy business men. Pat Roche, famous investigator for the state’s attorney’s office here, managed to round up orfe group of kidnapers a short time ago—though they weren't the big shots of the gang. This was after Dr. and Mrs. Gecbt had been kidnaped. Dr. Ger.it was released to go for the

BY BRUCE CATTON NT. A Service Writer

ransom money, $5,000, and Mrs. Gecht was held as hostage. 7wo days later Dr. Gecht paid $2,000 and his wife was freed. It happened that one of the kidnapers, Gus Sanger, fell for Mrs. Gecht in a big way, and after the couple had been released Sanger called her up and asked her for a date. She went to Roche about it, and he advised her to make a date and let him know the time and place. She did. The kidnaper arrived to keep it, and promptly was arrested by two of Roche's officers. Sanger named his associates, and shortly afterward former assistant state's attorney Ward Salwell, William Thomaif, John J. Pingera, Edward Finnan and Louis Alteri were arrested. Together with Sanger they now are awaiting trial. nan THE transformation of kidnaping from a crime by individuals into an organized racket really began in Detroit, about seven years ago. Fred Burke and two hoodlum pals named Joe O’Reardon and Johnny Reid decided that the bigtime gamblers in Detroit might as well start paying for the privilege of freedom. As their first victim, they picked a prominent gambler, from whom they had little trouble in mulcting $15,000. They tried it again, picking another gambler. At first he refused to pay, but when they tied him up in a barn and fired a few rounds of ma-chine-gun bullets at a spot a foot from his head he changed his mind. They got $20,000 for his release. Then Burke moved on to Chicago and Reid got killed, and the gang was reorganized. Harry Hallisey took charge and extended the gang’s activities. Hallisey ran a speakeasy in downtown Detroit and had a lot of well-to-do business men for patrons. In that way he got a line on a lot of reputable citizens who had money and whose movements could be easily learned. So he soon had his hoodlums kidnaping his own patrons. a a a THE scheme worked beautifully until the kidnaping of David Cass, son of a wealthy merchant. Cass’ father reported the matter to the police, and during the search that followed the kidnapers murdered the ycuth. One of them, Joseph Laman, was caught and sentenced to thirty years in prison, and after his sentence had been passed he decided to tell all he knew. Asa result, Hallisey and his eight leading confederates were rounded up, convicted, and sent to prison for terms of approximately fifty years apiece. Michigan does not have capital punishment, but it does have exceedingly long prison terms for kidnapers. Before Hallisey’s arrest the ring maintained half a dozen “prisons,” as they might be called, for keeping its victims while the ransom money was being collected. One house they owned, for instance, contained an attic room especially fitted for the prisoners; in another house, a special cell was built in the basement. a a a IN mast of the operations conducted by these mid-western kidnapers, the method of seizing the victim is the same. The gangsters find out when he is apt to be driving along a certain street and wait for him there in their own car. When his car appears, their car speeds up and forces him to the curb. There he is bound, gagged, blindfolded, put in the big car under the feet of the gangsters and carried off to one of the "prisons,” to be held there until his friends or family can raise money for his release. NEXT: How the racket is worked in Kansas City and St. Louis. SLAIN MAD TRAPPER’S IDENTITY IS TRACED Gold False Teeth Are Clew to Victim of Mounties’ Chase. By United Press . PORTLAND, Ore., March 7.—Authorities today used a set of gold mounted false teeth in an effort to identify Albert Johnson, mad trapper stalked to death by Canadian mounter police, as a former Portland mining man. That the trapper who went inr sane in the frozen north may have been Edward Manning Gentry was reported to police by Gentry’s sister, Mrs. Elizabeth McLean of Portland. The slain trapper had perfect teeth, but it was reported a set of gold mounted false teeth were found in his knapsack, together with several thousand dollars in currency. m Mrs. McLean said her brother years ago ordered teeth like these for his wife, but that she refused to wear them. He carried the teeth with him after her death. RATE FIGHT TALK SET Walter Rothermel to Address Civic Group On Pregress. Progress in the fight for utility rate reductions will be reported by Walter C. Rothermel, utility subcommittee chairman, at the meeting of South Side Civic clubs central committee at 8 Wednesday night in the Garfield community house. Principal speaker will be Robert R. Sloan, county assessor, who will discuss “Taxation.” J. Ed Burk will preside.

THE INDIANAPOLIS TIMES

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Scenes from the heart of the Detroit “kidnap be It” arc shown above. Upper left, basement of the Stanley De Long home in Detroit. In this cubbyhole victims were held for ransom. Lower left, alleged members of the ring in court. Left to right. Benny R übenstein and Harry Hallisey. At the right. Fred (Killer! Burke, believed to be the founder of the M ichigan-Ulinois kidnap racket. Now' serving fifty years in prison.

JUBILEE PLANS PUSHED Preparations for the Congregation Sharah Tefilla’s golden jubilee

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celebration next Sunday will be completed at an executive meeting this week. The synagogue’s leaders will meet to draft final plans for the jubilee fete and banquet.

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DETECTIVE IS ABSOLVED OF FRADDCHARGE Thomas J. Reilly Is Freed of Accusations Made by Drug Official. Thomas J. Reilly, 3128 Central avenue, private detective, was freed, in court today of charges growing out of an Investigation of a Hooic drug company robber^. Charges of impersonating an officer, carrying concealed weapons, operating a detective bureau without a license, false pretense and vagrancy were dismissed by Muncipai Judge William H. Shealter on recommendation of detectives and prosecutors. Detective Morris Corbin recommended the dismissal, asserting authorities had no case against Reilly who produced a bureau license in court. Reilly’s arrest followed complaint of John s. Hook, drug company official, that Reilly was paid oy him to assist in apprenension ot bandits who shot and robbed a Hook company collector a year ago. One of the bandits later surrendered to police and now is serving a term at the Indiana state prison. The second gunman was captured and given a prison term.

Gone, but Not Forgotten

Automobiles reported to police as stolen belong to: F. B. Sanderson. 1733 North Meridian street. Chevrolet delivery truck. 3-L-186. Pennsylvania i1932i, from 1733 North Meridian street. Guy D. Westlake. New Palestine Ind., Ford coach, from parking lot at 130 West Market street. BACK HOME AGAIN Stolen automobiles found bv police belong to: Dewey Lane. 1940 North La Salle street, Ford coach, found at Roswell. New Mexico. John Munauch, 1222 Haußh street. Ford coach, found on Morris street in front of Engine House 4.

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