Indianapolis Times, Volume 43, Number 283, Indianapolis, Marion County, 5 April 1932 — Page 1

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CLOSED BANKS FAIL TO PAY IN TWO YEARS Depositors No Nearer to Recovering Funds in Five Institutions. REAL ESTATE BLAMED Delay Gradually Is Making Inroads on Assets With Receivership Expenses. BY SHELDON KEY Depositors of four defunct Indianapolis banks have been waiting almost two years for receivers to liquidate assets and those of a fifth institution have waited since M.iv 4. 1931, without any dividend payments. The long delay in liquidation was revealed today by an examination of the banks’ records. Defunct banks and dates they closed: State Savings and Trust Company, closed April 25. 1930, Eben H. Wolcott named receiver May 2. City Trust Company, Oct. 23, 1930, Curtis H. Rottger named receiver Nov. 17. Postal Station State bank, closed Oct. 23, 1930, Raymond D. Brown named receiver Nov. 20. Washington Bank and Trust Company, closed Oct. 28. 1930, Brandt C. Dowmey named receiver Nov. 15. Farmers Trust Company, closed May 4. 1931, Boyd M. Ralston named receiver May 6. In addition, promises that depositors in the Meyer-Kiser bank, ■which closed but returned to its directors for liquidation, soon would be paid, have not. been fulfilled. Blame Real Estate Market Unsatisfactory condition of the real estate market Is advanced by the receivers as the reason for delaying liquidation. This delay gradually is making inroads on assets, records reveal. Expenses that must, be box lie include salaries to receivers their attorneys, clerks and office assistants. In addition, large amounts are being expended to keep real estate holdings in repair. The dismal part of this latter picture is that hundreds of houses belonging to the banks are vacant and have not been rented for many months. That depositors may not become alarmed over the long delay, most ot the receivers have lormed depositors’ committees. Through these committees, an attempt is being made to keep creditors informed as to the bank's status. The committees also advise and work with the receiver. Can’t Be Liquidated According to reports, condition of the State Savings and Trust Company is about the same as when the bank closed. “Real estate, the defunct institution’s chief asset, can not be liquidated because of adverse financial conditions,’’ Wolcott, receiver, said today. First dividend to depositors, Wolcott, said, is expected to come from a suit against stockholders on their liability, still pending in superior court two. Frozen assets of the City Trust Company principally include real estate and mortgage bonds for which there is no market now, it was said. “Dividends to creditors depend upon the real estate market, now at its lowest ebb,” Rottger, who is serving without fee, said.

Awaiting: Court Decisions The City Trust, like the other banks, is awaiting court decisions on certain claims, alleged to be preferred against all other claims. ‘•Earrings are keeping the receivership going, without diminishing assets," Rottger explained. Litigation in connection with the defunct Washington Bank and Trust Company has been involved and extended. Large real estate holdings of four subsidiary companies of the bank have augmented this condition. Downey announced “everything possible is being done to keep expenses of the refceivership at a minimum and. at the same time, save all possible assets." ■Recent report of Ralston. Farmers Trust Company receiver, showed the institution also is “loaded" with real estate, which can not be sold. Assets of the Farmers Trust Company have an appraised value of $596,300.76, instead of the value of $1,425,184.07 at. which they were carried on the company’s books when it closed its doors May 4. the report indicates. Plans to reopen the defunct Postal Savings State bank failed. However, depositors have been paid a 40 per cent dividend. PAINT THREAT ON HOUSE Police Seek Prowlers Who Warned Roomers Must Be Ousted. Police were given instructions today to keep a close watch on the home of Mrs. Margaret Siler, 70, of 1246 West Twenty-ninth street, who reported that prowlers have been active at the home several months and recently used black paint in placing threats on the outside of the home, one reading “Get rid of the roomers." GUARD UTAH GOVERNOR Police Stationed After Receipt of Threatening Letter. Itil I nilrd Press SALT LAKE CITY, April s.—Police squads guarded the home of Governor George H. Dem today because of a letter which threatened the life of the Governor and that of one of his sons.

The Indianapolis Times Fair and somewhat cooler tonight, followed by increasing cloudiness Wednesday.

VOLUME 43—NUMBER 233

LESLIE THREATENS MARTIAL LAW IN STATE MINE STRIKE Notice Served on Sullivan County Sheriff That Peace Must Be Kept or Troops Will Be Sent to District. Governor Harry G. Leslie today served notice on the sheriff of Sulman county that peace must be kept during the coal miners’ strike there or wLw * The same order applies throughout the Indiana mining districts, the chief executive declared. Leslie called Sheriff J. Wesley Williams and told him that ‘‘rebellious miners must be curbed or state troops will be sent.” T ai T, n ° fc going to stand for any politics in this affair.” Leslie told the sheriff. “I am not interested in who is running for what office or who is not running.” Replying to the sheriff s contention that he hasn’t money to employ Ijes^e tQ ld Williams to go to Floyd Decker, chairman of the Sullivan county commissioners, and “get the money.” He also told Williams to “tell —— -

Billy Mitch he better not make any more firey speeches or we will be after him, too.” William Mitch, Terre Haute, was reported to be in the district talking as an organizer for the United Mine Workers of America. According to Henry Smith, Starburn mine operator, these speeches were inflammatory. Smith called L. O. Chasey, Leslie's secretary, Monday night and reported on the situation both at his mine at. Shell-

ISLAND LIBERTY SEEMS ASSURED Congress Likely to Ignore Philippines Veto. j By United I'rrs* WASHINGTON, April s.—Cham- ; pions of Philippine independence | today confidently predicted that j congress would grant freedom to j the islands despite President Herbert Hoover's opposition. Legislation to remedy crime con- | ditions in Hawaii also seemed as!sured. The 306-to-49 majority by w r hich the house passed the Hare independence bill caused Senator Harry B. Hawes <Dem., Mo.), a leading advocate of Philippine freedom, to predict that a similar measure would be passed by the senate with ’not more than ten votes against it.” A two-thirds vote of both houses is sufficient for passage over a presidential veto. It is considered certain that President Hoover will veto the independence bill w'hen it comes to him. Legislation to deal w'ith the Hawaiian situation, based on a voluminous report of Seth W. Richardson, assistant attorney-general, already has been introduced by Senator Bingham. The justice department official reported,he found "no organized crime, no important criminal class and no criminal rackets” in the islands, but a ‘‘crime wave" out of proportion with the islands’ small 1 size.

60.000 FARMS SOLD Auctioned in Mississippi to Pay Taxes. By l nited'Frcs* I JACKSON, Miss., April s.—Thousands of Mississippi’s citizens, bereft of their lands and homes, were destitute today, as this povertystricken state took frantic measures to stave off bankruptcy by selling 60,000 Mississippi farms at public auction for taxes. The lands that were sold embraced 7.000,000 acres, one-four?,h the total area of this stat®. The farmers, impoverished by a low cotton market and crop failures, will not be evicted from their homes. They will be given two years in which to redeem their lands. Buyers Monday were given tax title certificates.

P>/ I tiitrd Prrut WASHINGTON. April 5 Senator Morris Sheppard i Deni., Tex.), author of the eighteenth amendment and its stanchest supporter in the upper chamber, believes a tax on beer would ‘•create waste and crime." He is confident that efforts of senate anti-prohibitionists to legalize beer through the tax bill will be 'more defeated than they were in the house." "The wets could not get more than twenty-four votes for their petition, and I doubt very seriously whether they can muster that many for a beer tax," Sheppard said. He vras referring to the senate petition for a vote on the 4 per cent beer bill which Senator Hiram Bingham (Rep., Conn.) introduced before the tax measure came up. "There can only be so much employment for every thousand of dollars of capital engaged in industry. The money which would finance the production of beer would be taken from property productive capital,’’ Bingham said. "When you think of the money it would take from the public to pay this tax, the proposition is even more unthinkable. To raise a tax of $200,000,000 you would have to sell $1,000,000,000 worth Os beer, a wasteful and injurious product. "The people would have to spend $1,200,000,000 in order to give the government $200,000,000 in revenue. All this money would have to come from sources from which it flow into chan- . . •. ... * ’ '*/'

LEADERS DEBATE BEER REVENUE PROPOSAL

burne and the Summerville mine at Sullivan. The latter mine, operated on a so-called co-operative basis, has had the fan turned off so miners were ' unable to work and threats to burn down the tipple had been made, Smith asserted. Leslie today conferred with Harvey Cartwright, secretary for the mine owners’ association, and also with Adjutant-General Paul Tombaugh, who has charge of the national guard.

FIND NEW CLEW IN LINDY HUNT Lone Eagle Returns After Mysterious Trips. By United Press HOPEWELL, N. J„ April s.—New information has reached police investigators in the Lindbergh kidnaping case adding to the recently increased activities which have included mysterious trips by Colonel Charles A. Lindbergh, they reported today, Lindbergh returned to his estate early this morning after a mysterious airplane trip Monday—the second in two days. His private plane was seen last evening over * the Martha’s Vineyard section off the Massachusetts coast. Monday night it was reported that lights gleamed from the nursery from which the curly haired child was stolen. That room had been dark every night since March 1, when the child was kidnaped. Plane Identified By United Prefix VINEYARD HAVEN, Mass., April s.—Apparent efforts to establish contact wfith the Lindbergh baby kidnapers in this section are being directed personally by Colonel Charles A. Lindbergh, islanders believed today. Virtual identification of one of four strangers who appeared on Cuttyhunk island during the weekend, as the colonel, coupled with the appearance here Monday of a yellow plane bearing the Lindbergh registry. left little doubt in the minds of natives that the stolen baby’s father had made at least two visits to Martha's Vineyard. The four men seen on Cuttyhunk Sunday said they were seeking a craft named either “Nellie" or “Sallie,” believed to be the contact boat. VITAMIN C IS ISOLATED Lemon Juice Yields Health Factor Used in Scurvy Treatment. By United Prefix PITTSBURGH, April s.—Vitamin C—the anti-scurvy vitamin—has been isolated and identified, Dr. C. G. King. 35-year-old University of Pittsburgh professor, claimed today. • The long-sought vitamin was obtained from lemon juice. Its isolalation will make possible further study of the specific role it plays in the body.

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Senator Hiram Bingham

nets of constructive production. “There is not enough public sentiment or political sentiment back of the proposal to give it any standing before congress. No, there will be no beer tax.

A NTI-PROHIBITIOXISTS have forced the beer issue to the fore again as the senate takes up the new tax bill. Senator Hiram Bingham (Rep., Conn.) is leading a fight to legalize and tax 4 per cent beer. Arguments for and against *his proposal are set forth today in exclusive interviews with Senator Bingham and with Senator Morris Sheppard <Dem., Tex,), author of the eighteenth amendment.

INDIANAPOLIS, TUESDAY, APRIL 5, 1932

LABORATORIES DENY ANIMALS ARE MISUSED Humane Society Prepares to Take Court Action on Cruelty Charges. PRACTICES ARE UPHELD Dogs Are Not Injured in Experiments, Humanity Is Aided, Firm Says. Modem science and the creed of the State Federation of Humane Societies cV.shed today, with prospect of a court battle to decide the issue. William P. Hargon, humane officer of the federation, left here at noon for Noblesville, to file charges against the Pitman-Mqpre Company, with laboratories near Zionsville, alleging cruelty to animals in experimentation work. Hargon, after a visit to the Pit-man-Moore establishment Saturday,, flayed practices of the firm, declaring conditions under which animals were kept and used in operations were inhumane and insanitary. Defend Firm’s Methods i In reply, laboratory officials defended their practices as of great benefit to humanity, in full accord with the best)of modern scientific methods, and adhering to the letj ter of government rules regulating laboratories. “It is not uncommon to hear : rumors that such arid such a labora- [ tory steals dogs and subjects them to cruel and inhumane treatment,” said their statement. “Probably more people are interested in the i welfare of the dog than any other I animal. j “Such rumors almost invariably | are false and the result of gossip or false propaganda. During the last two years, the Pitman-Moore biological laboratories have purchased approximately 500 dogs. During this period, no dog so purchased has been identified as stolen property. “Persons seeking lost animals are permitted to inspect all dogs on the premises at any time, and those in charge always are willing to assist in restoring any dog to its owner. - Benefit to Dogs “Dogs are used in the laboratory for the preparation of serum and vaccine for a prevention and control of canine distemper. This is the only product which has been found useful in controlling this disease and necessarily is prepared from dogs. ‘‘The importance of these products is appreciated fully when it is realized that one dog supplies a quantity of product which will prevent the disease in 100 or more j valuable dogs. “Most laboratory procedures in connection with the preparation of I serums and antitoxins are prac- | tically painless, causing no more I Pain than the giving of a hypodermic injections.” Mistreatment of dogs is charged by Hargon and by Captain Otto (Turn to Page 12)

MAN, 86, NABBED AS DRY LAW VIOLATOR “Too Old to Get Job;” Beer Kegs Speakie’s Only Chairs. By United Press HACKENSACK, N. J., April 5. Bergen county’s oldest liquor law violator “oh the records,” and its barest speakeasy with simplest setting and furnishings—four beer kegs for settings and rough table for furnishings, were revealed in a hearing here. Henry Sorensen. 86. faced the court as a result of a raid. “My money was almost gone,” he said. “I couldn't get a job; I was too old to get a job and sold liquor to support myself and wfife," he said. Mrs. Sorensen is 89.

By l nited Press TYTASHINGTON, April 5. ’ * Senator Hiram Bingham (Rep., Conn.) said today that the federal government could take $500,000,000 of revenue "out of the pockets of the bootleggers" by legalizing 4 per cent beer. "I am amazed,” Bingham said, “at the reluctance of congress to resort to beer for revenue purposes. "Here are two bodies of a great congress faced with a tremendous financial problem. At one stroke they could raise half a billion dollars on beer which would be perfectly legal under the Constitution, and at the same time eliminate a large part of the taxation burden, which otherwise must be imposed. “Beer offers the most reasonable and equitable means of raising large revenue. It would not take the money from the pockets of the poor, or even of the rich. “That $500,000,000 would come from the pockets of the bootlegger by diminishing his business. "It is true,” Bingham continued, “that there is but small chance that congress will follow a wise course wfith respect to beer. But I shall not refuse to w r ork for a

LIBERTY AS WATCHWORD

Students Here on Way to Mine Area

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Above '.left to right): Leo Gruilow, Harold Coy, Sam Sandberg, Isaac - Greenberg and Lucian Koch Below: Koch (.left) and Sandberg, with the banner on the delegation’s automobile.

DARROW GIRDS FOR BATTLE IN HAWAII

MARRYING J. P., 79, GETSJI2 PROPOSALS Quest for Second Wife Brings Bids from All Parts of Country, By United Press EVANSTON, 111., April s.—Justice of Peace Samuel Harrison, who announced he was looking for a wfife on his seventy-ninth birthday last week, had 112 proposal letters and a dozen phone calls today to help him select a second mate. "That’s what a man gets when he publicly admits he might remarry. They’ve written from Tulsa, Okla., and from Salem, Mass. Why, I’ve been so busy I haven't had time for lunch,” said Cook county’s oldest justice. He has married more than 1,500 couples, and from his experience he has evolved some theories he would like to try out. HOLMES LISTED WRONG Candidate for Congress Nomination Is a Republican. Ira M. Holmes, attorney, 3306 Ruckle street, is a Republican candidate for the nomination as congressman from the Twelfth district, instead of a Democratic candidate, as listed in The Times Monday.

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Senator Morris Sheppard

cause merely for the reason that the fight is just beginning. “It w'ould not be necessary to fix any new beer taxes. They are a holdover at $5 or $6 a barrel from pre-Volstead (Jays. "That rate amounts to about 2 cents a pint bottle, and it would raise $500,000,000 for the federal treasury. "The amendment I* propose to offer merely would change the Volstead act by making it effective only on beverages containing more than 4 per cent of alcohol."

Entered as Second-Class Matter at Postoffice, Indianapolis

Again Militant Warrior Who Conducted Many Great Legal Conflicts. BY DAN CAMPBELL United Press Staff Correspondent (Convrieht. 1932. bv United Press* HONOLULU. April s.—Half a dozen prospective jurors draw'n from Hawaii’s strange “melting pot” occupied the box today as Clarence Darrow' dropped his studied wariness and like a roaring lion prepared for the second day’s battle in the defense of four accused Amer-

ican “honor slayers.” Calm and unruffled until a wordy conflict over the “unwritten law” appeared to go against him, Darrow threw aside his pose as if it were his loose - fitting coat. Shouting and gesticulating to judge and venire, in the crowded little court, he again was the

militant warrior who pleaded for John Scopes, the Chicago thrill slayers, the Los Angeles Times bombers, and George Pettibone of Idaho. Mrs. Grace Bell Fortescue, New York and Washington socialite, and her three men co-defendants shared none of Darrow’s emotion. Seated beside him at a counsel table, they watched as he parried for a chance to link their asserted victim, Joe with an attack on Mrs. Fortescue’s daughter, Thalia Fortescue Massie. The patrician society woman's son-in-law, Lieutenant Thomas H. Massie, jointly accused with her, leaned forward and gripped his chair as the name of his girl-wife was mentioned. The other two defendants, E. J. Lord and Albert O. Jones, navy enlisted men. apparently were embarrassed in the strange surroundings. Clash With Prosecutor Darrow questioned Kenneth Bankston, an American venireman, as the first day’s session drew to a close. His queries indicated a defense plan to submit their case without introduction of evidence. John Kelly, ready-tongued public prosecutor, opposed this. Quickly he interposed a question to Bankston: "Are you willing to return a verdict, understanding that the guilt or innocence of Kahahawai in the Ala Moana (the Massie attack case) has nothing to do with the present trial?” Darrow leaped to his feet and (Turn to Page 14) Hourly Temperature* 6 a. m 57 10 a. m 62 7a. m 56 11 a. m 53 8 a. m 58 12 <noon>.. 66 i 9a. m 59 , Ip. m 67

Delegation of five from Commonwealth college. Mena, Ark., is in Indianapolis today for two meetings prior to continuing a motor trip to Bell and Harlan counties, Kentucky, to extend aid to striking coal miners. Meetings slated today are at the ‘Columbia Conserve Company plant, 1735 Churchman avenye, and tonight at the Workers’ center, 932 1 2 South Meridian street. Lucien Koch. 24, president of the college, heads the group, w'hich is selling copies of the Bill of Rights—the first ten amendments to the United States Constitution. Proceeds wfill form a relief fund for the miners. “There are probably a few Americans,’’ Koch says, "wfiio still prize this quaint old document or would be curious to know about the rights which free Americans enjoyed in the days of Thomas Jfflerson.” a a it KOCH said copies will be given to sheriffs and other officials of the counties, who have been accused of using czarist methods in dealing wfith the miners. The delegation includes Sam Sandberg, wounded World war veteran. “I want to see some of the freedom I fought for in France," Sandberg declared. Others in the group are Harold Coy. member of the Commonwealth faculty; Leo Gruilow and Isaac Greenberg, students. Koch states the trip is sponsored by the American Civil Liberties Union, which is prepared to appeal to a federal court for an injunction in case officials of the county seek to bar the delegation, the fate which befell a group of eastern university students.

Darrow

DEBT FARLEY DENIED Stimson to Stick to Arms Discussion, Hoover Insists. By United Press WASHINGTON. April s.—President Hoover said today that he had requested Secretary of State Stimson to go to Geneva to promote more definite steps to relieve the world’s arms burden. He emphasized that Stimson would not discuss war debts.

TOMORROW YOU LEARN ABOUT CERTIFIED VALUES!

HOME EDITION PRICE TWO CENTS Outside Marion County, 3 Cent*

INDIANA BELL CUTS JOBS TO SAVE PROFITS Operating Revenue Drop Is Offset Largely by Dial Phone Installation. WAGES DOWN $455,738 Annual Report Viewed as Good Argument for Rate Slash.

BY DANIEL KIDNEY Operating revenues of the Indiana Bell Telephone Company declined $566,875.02 in 1931, but the company made up most of this shortage by saving $455,738.79 in wages to operators, its annual report, on file with the public service commission, declared today. The report, authorities say, offers j ample ammunition for launching a 1 drive for reduced phone rates in Indianapolis, which is part of the Indiana Bell system. It showed that although revenues I fell off as compared with 1930, the 1 company increased its dividend appropriations to $2,640,000, which is $240,000 more than in 1930. The huge saving in operators’ j wages was due in part to installs- | tion of Indianapolis dial phones, a I technical improvement which has i put the burden of making connec- | tion on the subscribers without any ; refund by reducing rates. Company Only Beneficiary Dial phones thus far have added only to the problem of unemployment by forcing operators off the switchboards and no direct benefit has accrued to any one but the company, which is owned by the American Telephone and Telegraph Company. This latter company continues to receive tribute of $187,441.01 "by pgreenr'nt,” the annual report show's. Total operating revenues for 1931 are set out at $12,850,633.77 and expenses at $8,168,787.04, leaving a net from operations of $4,681,846.73. Nonoperating revenues added another $101,910.19. Revenue from subscribers amounted to $9,369,229.66, a loss of i but $347,273.12 from the previous year. Revenues from private ex- | changes increased $22,431.07, the ! new total being $41,702.24.

Tolls Are Down Tolls for the system dropped $257,046.65. Operators’ wages for 19.31 w r ere $1,489,499.35, a decrease of $455.738.79. Promotion expenses w r as boomed by $38,018.43. to $184,251.91. Officials’ salaries didn't suffer like those of the phone girls, the total cut here being listed at only $1,518.24. The 1931 payment to officials was $94,508.29. The company does carry on a relief and pension system for employes and increased payments on this score during the year by sll,660.33, outlay for the state being $245,442.31. Harry K. Cuthbertson, public service commissioner, who engineered compromise and meager rate cuts in Indianapolis for water and electricity, has announced he is contemplating letting the phone company 'have one of those same settlements.

Water Hearing Hit

Opinion that recent settlement of the Indianapolis Water Company rate case is illegal and announcement of an investigation of the status of 25,000 consumers who will pay more under the new rate, were developments today expected to result in reopening of the case. George W. Hufsmith, deputy at-torney-general assigned to the public service commission, believes the rate settlement effected by Commissioner Harry K. Cuthbertson is illegal for the reason that it was made without a public hearing. In this stand, he lines up with Commissioners Howell Ellis and Frank T. Singleton. Ellis announced he will investigate the status of the large consumers. whose payments were increased to make up for any revenue losses to the company when the minimum rate was changed from $1.50 to SI.OB, with reduction fri the cubic feet minimum from 700 to 500. , Rates were on all step rates for consumers between 700 to 20,000 cubic feet and what this will mean will be the subject of his investigation. It has been alleged that company revenues may be increased by the compromise and the larger consumers may appeal to the courts if no relief is forthcoming from the commission. The 1931 report of the w r ater company was kept by Cuthbertson for several days before being made public at commission headquarters. It shows a 12 per cent dividend payment on common stock, which is held by Clarence Geist of Philadelphia. UNFAIR COMPETITION California l’. Men Protest Co-eds Use Wiles on Male Instructors. B>l l uited Prrtit LOS ANGELES, April s.—Asserted use of "feminine wiles" to gain grades from masdliline instructors at the University of California at Los Angeles caused a male revolt on the campus today, led by the college newspaper, with a demand for more women professor* proof against co-ed blandishments.