Indianapolis Times, Volume 44, Number 135, Indianapolis, Marion County, 15 October 1932 Edition 02 — Page 3

OCT. 15, 1932.

PERIL GROWS IN ILLINOIS MINE WAR DISTRICT Loaded Rifles and Bared Bayonets of Troopers Keeping Order. B ii I nitrd I'rffi TAYLORVILLE, HI., Oct. 15. Tempers shortened today in the trouble-strewn Midland coal field, where 500 state troops patrolled mine villages with loaded rifles and bared bayonets in the hope of keeping order. Frayed nerves of troopers and embroiled miners made authorities apprehensive that new outbreaks would add to the casualty list. They pointed out that clashes of soldiers and coal diggers have grown more frequent and Ditter in the last few days. Lengthy hearings continued to determine responsibility for the slaying of Andrew Ganes, 45, unemployed miner, by a national guardsman. Stories of the shooting were in sharp conflict. Guard officers and town officials were worried over a huge mass demonstration planned by miners for Ganes’ funeral Sunday. Two more miners, Frank Kmet and Andrew Krechnyat, both pickets, were wounded Friday by troops. Investigation w r as being made of this fray. So complicated is the dispute which has rent the central Illinois coal field by terrorism, bombings, sluggings, gas attacks and shooting that even many miner participants are not entirely clear as to what they are fighting over. The majority of the strikers are in revolt against the established union, the United Mine Workers of America. They have formed anew organization, the Progressive Miners of America. The revolters charge officers of the old union with bad faith in signing a new' wage agreement, with the Illinois Coal Operators’ Association. The second grievance which has transformed the area into a virtual battle ground, split church congregations, and disrupted business centers In mine working conditions. MILLIONAIRE TO FACE AUTO DEATH CHARGE Speeding and Drunken Driving Will Be Blamed for Killing of Woman. i ijl t nitrd Prefix OMAHA, Neb., Oct. 15.—Charges will be filed against William Hoagland Jr„ son of the late millionaire lumberman, in connection with the fatal injury of Mrs. E. SmvtheGambrell, Atlanta, Ga„ in an automobile accident last Saturday, County Attorney Henry Beal said, at conclusion of an inquest. He said he would file a charge of causing death by speeding, and probably a complaint charging driving while intoxicated. Mrs. Sniythe Gambrell was a 1 daughter of Major-General John- { son Hapgood. DRY AGENT IS HELD Accused of Intent to Kill After si Fight With Another Officer. p Bit l fitted Prefix f new YORK. Oct. 15.—Willard \>J. Mogland, Chicago prohibition "/agent, was arraigned on a charge k of assault with intent to kill, after £ h fight with another agent, James n Murphy, at headquarters here. *1 Mogland, who is said to have accused Murphy of having him to Chicago, agreed to st go to Bellevue hospital for fifteen g days’ observation. •SAVED FROM EVICTION li . b "Unknown Friend" Pays $175 Back n Rent for Frengh Seamstress. ® Bji I iiitrd Prfxx NEW YORK, Oct. 15.—A "tall j Frenchman in gray,” representing an unknown benefactress, came to | the aid of Mile. Marte Bastan, des- | titute French seamstress, just in I time to prevent eviction from her tiny apartment. ] The Frenchman paid the city | marshal $175 back rent and Mile. Bastan was permitted to remain with her cats and gold fish. WOMAN ACTS AS ENVOY First of* Sex to Serve U. S. as Minister to Foreign Country. BpJ nitrd rn fifi WASHINGTON. Oct. 15.—Miss Frances Willis has the distinction of being the first woman to represent the United States as minister to a foreign country. The 33-yea*-old woman, third secretary of the legation at Stockholm, Sweden, is in charge there as acting minister, due to absence of the first and second secretary, as well as John Motley Moorehead, the minister. riunges Seven Stories to Death Bii I hi ted Prefix NEW YORK. Oct. 15.—F. H. Morris. 35. a law clerk, jumped or fell to his death today from his seventh floor apartment in Greenwich village.

Gone, but Not Forgotten

Automobiles reported to police as stolen belonc to: Gladys Simmons. 1260 North Holmes avenue Oldsmobile coupe, 82-081, from 929 North Pennsylvania street Watson Wythers. 3060 Broadway. Essex coach, 105-132, Irom 500 Indiana avenue.

BACK HOME AGAIN

Stolen automobiles recovered bv police belong to: George Perkinson. 1433 Gilbert street. Chrysler coach, found at 309 East Michigan street. Mrs. Benjamin Smith. Stockton Cal Bulrk coach, found at Cruse and Washington streets. E. A Leigh. 3854 North Dearborn street Essex roach, found at Twelfth street and Sherman drive Graham Paige sedan, 883-939 Ohio, found in front of 805 North Illinois street! Paul Million. Shelbyville. Tnd , Whippett coach, south of Coffin golf course, stripped Emmett Whitehouse, 509 East Tenth street. Chrysler touring, found at 800 rt wayne avenue Ted Ross, 4058 Boulevard place. Plymouth sedan Union taxi cab No 55. found In rear of 8158 Broadwrav. Leroy Lane. R R. 7, Michigan *road and Fifty-ninth. street. Chrysler sedan, found •t Park avenue and St. Clatr street. Virgil Garrison. 40 Grace street. Ford roadster, found at Stanley and Nelson atreets. Edward Bailey, Jl7 West North street, b.° , 1S - Marmon sedan, found at 40 West ot. Joseph.

INSULL ROUTS ‘UPSTART’ RIVAL

Titanic Battle Waged With Belgian for Utility Rule

" 11 " . f -- -i- ■ iimtHitl *VNUtIMIfII ma ‘ nta^n - was s 't “grit until Loewenstein had played jj; Ml ! ' h ‘ S hPad That 1S |li Ip |lf'||||! blue chip stocks , ever mounting IHi jni . , ! ! * j \ I'Sli like mat me -Vwi, TgaHBsSK Hflkian: fvri' S. V jflHB V iMßfe wHraMK ... <’ • -hf H v*‘r.. ' i>? t f<: s/m By mm" wEg i ~ t.e dpfPKd.’d "jKIIHI V” .Jp; B ÜBk jaaßregEßr , i ii wmjtf flB BY FORREST DAVIS J&Mk H : Time* staff Writer mlsht 1932. bv the New York World- Samuel Insull photographed | ''\ | , ) Al h a d N undiLT' ,nltlC H n, M re Salle street tfice before a back- dBR ■‘ \ eMtein, Belgian financier, who .X M Im ,O EJS3£ fr-ns or •. teamlnr Cy of Hl' | >nth of economic sorcery where- Chicago. ' worse than that—victorj Mr. Hoover w-on the presidency teased thc curiosity of Sunday ' ?***& Pomade him more self-assured the. no doubt, sincere, prom- rid fors everywhere on the old con- HR headstrong, and when the next ■ to abolish poverty, Insull bes and subtler challenge came alonp ime a plunger; he joined the • _, arMm . BHv *i. ........ i. I he moved as a conqueror into the fS explosive* u. .he maKlns ot < J terrah, of new era hnan. expanding pros- moo. Ktt. rs f He disposed ot the Incredible Outwardly, the power king, near- trading mind, the immense sig- JHL* J&IT J** mman ‘ ? 70. seemed much the same nificance of power in developing ? a n and rd-bitten, realistic utilities op- industry. hanHiPH L E and k ffor.. "We are now in the power age. T 50 Dhubbv now, gray hair thin- as we are leaving the age of 'fillpL ’ nc l Insull began to fancy hlmng, the hard, imperious lines transportation,’’ Insull said at se 'f a financier. :hed deeper into his shrewd about that time. He always was the greatesl 'p. he yet appeared mellower, >re kindly to his associates. „, . . . : -V Hii saicl the Pnvate banker who disHe was, indeed softening 'T'HE Belgian acted on that as- I sSmlm posed of all the Insull senior seFew „<• ’ J. sertion. He gobbled Dower * ■ ■ —— curl tins "Tt. mav Ko mntiov.

loewenstein, th? Belgian: Cvrus S. Ealon. of Cleveland—these were the financial giants who first challenged Sam Insull s power in Chicago. How he fought back, how he defended his empire and the results of his methods. Forrest Davis describes in today’s article. BY FORREST DAVIS Times Staff Writer iCoovright. 1932. bv the New York WorldTelegram Corporation.) SAM INSULL’S granitic nature had undergone a decisive change by 1928. In that twelvemonth of economic sorcery wherein Mr. Hoover won the presidency on the, no doubt, sincere, promise to abolish poverty, Insull became a plunger; he joined the company of romantic adventurers who swallow'ed whole the dogma of perpetually expanding prosperity. Outwardly, the power king, nearing 70. seemed much the same hard-bitten, realistic utilities operator.. Chubby now, gray hair thinning, the hard, imperious lines etched deeper into his shrewd face, he yet appeared mellower, more kindly to his associates. He was, indeed, softening. Few of the men who came along the road to mastery with him survived. Few' remained to call him "Sam.” He was "S. I.” now, younger intimates adopting the American business executive's fondness for the initialed address. Scarcely one dared question his judgments. He had selected and advanced nearly every man near him. Perhaps that modified his asperities. A glutton for detail, he still made it an invariable rule to be at his desk in the CommonwealthEdison skyscraper at 7:30. He indulged associates and employes by an hour, but if they were tardy at 8:30 he was pleased to be annoyed. Insull seldom jested. In fact, the only raillery his personal attorney for 20 years ever heard him utter, dealt with the subject of early hours. "We heard that joke repeatedly.” the lawyer recalled. "At legal conferences Insull would purr: ‘Well, gentlemen, you are the only ones who are able to lie abed all day and still make a living. I warrant none of you gets down before 9 o'clock.” tt tt u EARLY-TO-WORK. punctuality, those were fetiches with the aging power kin^. "I get my desk cleared and a day’s work done before the others show up.” he bragged. A sure way to his regard was for a youngster to keep his long hours. Outwardly, he seemed the same. Fleeringly censorious of blunders, intolerant of advice, a hard master; a relatively benevolent utilities operator, enjoying more and more his role of “civic leader, patron of the arts and community trouble shooter.” He saw himself as the builder without rival; he bore light and power into village and countryside in half the continent; he apprehended, with considerable vanity, that he, the five-shilli:ng-a-week apprentice clerk who w’as, had become the first of the super power kings as there had been railroad, packing, harvester, steel and oil kings before. His energy remained unabated as he approached the beginnings of his crisis. Henj\v Justin Smith. Chicago journalist, observed him one morning rs he stepped springily across the sidewalk to enter his building. Insull w ? as, Smith • reported. "a stocky, pink-faced man . . . full of steam and aprently glad that early hours were invented.” It required a challenge to bringr out the inner weakness and the profound collapse of the Insull empire four years later to expose the dismaying extent of his folly. Fear drove him to excesses—the gripping fear that first one, then another, younger adversary would hurl him from his throne. tt a u Alfred loewenstein, the sensational Belgian adventurer, supplied the first challenger, as Cyrus S. Eaton, the former Baptist divinity student, steel magnate find Cleveland financial wizard, would furnish the second and successful, test of Insull’s power. First, Loewenstein, whose disappearance from an airplane over the English channel on July 4, 1028, convulsed European stock exchanges; then Eaton drove the Power King into La Salle street, plagued him into fighting on their grounds and. in the end, helped persuade him that he was a master of money, of finance, as he had known himself to be of utilities operation. Loewenstein. one of post-war Europe’s "mystery men.” a Jew who embraced the Church of Rome, a pioneer i the rayon industry, rose from poverty in 1918 to an even more glamorous industrial peak in Europe than Insull occupied over here. With Sir Basil Zaharoff, munitions king; Hatry, the English promoter; Hugo Stinnes, who bought up half of Germany during great inflation, Loewenstein

Samuel Insull photographed leaning on the desk in his La Salle street office before a background of the teaming city of Chicago. teaspd the curiosity of Sunday eidtors everywhere on the old continent. Loewenstein converted wartime explosive plants to the making of rayon. The profits were enormous. He sensed, with his agile trading mind, the immense significance of power in developing industry. "We are now in the power age, as we are leaving the age of transportation,’’ Insull said at about that time. a a THE Belgian acted on that assertion. He gobbled power companies throughout Europe, in Africa, South America. He came to own 300 corporations engaged In electrical and gas production and transit. Here, indeed, w r as a power titan. In the early part of 1928 Leowenstein’s abounding ambition brought him to Insull’s doorstep. Pyramiding profits and credit, he undertook to buy control of thu core of Insull s empire—Common-weath-Edison, People’s Gas and Public Service of Northern Illinois. Waves of buying orders passed through his brokers in New York and Chciago. The prices of these gilt-edged common stocks advanced steadily. Noting the brisk market, Insull sent for the auditors who kept then, and do now, a close check on ownership of the voting stocks in these companies. Inquiries were set up. While Insull, highhanded and never easy under fire, fumed and fretted, word finally was brought to him that the heavy purchases had been made for Loewenstein's account. LaSalle street seethed with gossip. insull, taking no counsel, fought back. He hypothecated his own, his wife’s, Martin’s, his son’s holdings, and bought furiously in the open market for more stock ownership. The double attack brought prompt results. CommonwealthEdison, People's Gas and Public Service vaulted upward on the Chicago exchange and, in the case of the gas company, in New York. The prices rocketed to 300, 320, steadily upward until they brushed 360. a a a CHICAGO banks, as I was assured by the president of one. watched the duel with interest. When the stocks passed 300, prudent bankers sold shares they were holding in trust funds; dumped thousands on the market. Insull reveled in the collision. He would show this foreigner that he couldn't horn in on Chicago’s own utilities. Friends, associates, emploves assisted him, many of them taking satisfying profits. It became a patriotic privilege to repel the Belgian Chicago against the world. Finally. Loewenstein. finding the job of gaining control harder than he had imagined—impracticable, in fact—decided boldlv on a truce. In New York, he flew to Chicago. He called on Insull. It was the day the trans-Atlantic fliers of the Bremen were welcomed to Chicago. The encounter may well be imagined. Loewenstein. suavely forceful, polite, but arrogant. Insull, edging his courtesy with irony, speaking fair, as he well Ifcnow how to do when expediency dictated. They wasted no time. "You know, naturally, that I have been buying for control of your operating companies,” Loewenstein very likely said. "Do

3% Paid on Savings Security Trust Cos. 11l .Verth Pennsylvania Street

TRUSSES For Every Kind of Rapture, Abdominal Supports Fitted # by Experts HAAG’S 129 West Washington Street

'A Safety for Savings Fletcher American NATIONAL BANK SouthM.i Cera.r ot Market and r.nntvfvonla

THE INDIANAPOLIS TIMES

Cyrus S. Eaton, Cleveland financier, who challenged the Insull power. not be alarmed. My purchases will not jeopardize your position. I should like to have you remain as operating chief in any event.” Then some compliments .. . “you are reputed to be the ablest power man in the world . . . these companies are a monument to you.” a a a INSULL. I am told, restrained hirnself admirably. He wanted to pitch the whippersnapper out on his ear. Instead, he thanked his caller with icy charm, made no commitments and bowed him out. Loewenstein gained nothing net by his visit; he left an old man aflame with angry humiliation. The crown rested on an uneasy head that day. The vanishing of Loewenstein swiftly removed the threat, if, indeed. a serious one existed at all. The bankers who settled his affairs gladly sold the Insull stocks. Friends of Insull believed he acted foolishly. They point out the enormous sums required to buy control in the open market of corporations in which nearly $700,000,000 had been invested, especially on the runaway new era market. The duel might, they say, have ruined Insull. It helped finish off Loewenstein assuredly. And all that the power king needed to do,

SUCCESS / . 0 In a few short months the Gillette BLUE BLADE has won a position of indisputable dominance. This is an amazing tribute to the blade’s outstanding quality and sensational performance. Get incomparable shaving comfort. Try the Gillette Blue Blade.

Vagabond Cruises Mediterranean Roaming the Mediterranean for less than w Jm it costs at home seems incredible—but it's V| ▼ Each year the popularity of these cruises grows. What other lands tj can even hope to compete in £, romance, glamour and historic interest with the beauty of Greece, the glory of Rome and > the mystery of North Africa? Who hasn’t sighed to visit Egypt ' and the Holy Land. All in all, a visit to the Mediterranean is a great treat. y Complete details may be obtained frrom RICHARD A. KURTZ. MANAGER TRAVEL BUREAU - The Leading Travel Bureau of Indianapolis S UNION TRUSTcq 120 East Market St. Riley 5341 ¥ ‘ '

they maintain, was to sit tight until Loewenstein had played himself out Insull lost his head. That is the settled opinion of Chicago bankers now, although in 1928 and 1929, with the prices of these blue chip stocks ever mounting unti]f the approximated *450, it would have required something like prescience to see that the power king was riding for a fall. "He paid double what the stocks were worth on an earning basis,” a banker pointed out. --- 1

The late Captain Albert Lowenstein, Belgian financier, who also opposed Insull. BUT worse than that—victory made him more self-assured, headstrong, and when the next and subtler challenge came along he moved as a conqueror into the tricky terrain of new era financing. He disposed of the incredible Loewenstein, with his Harrimanlike dream of a world-wide power trust, but Eaton would not be handled so easily. And Insull began to fancy himself a financier. “He always was the greatest money raiser I ever dealt with,” said the private banker who disposed of all the Insull senior securities. “It may be moneymaking came too easy for him. He had been going overboard in Maine, wljere his Middle West Utilities, hemmed in by the hostile Chase-Harris-Forbes interests extravagantly had bought and built textile mills, shipyards and a larger paper mill to supply water power customers. That was risky business and contributed to the downfall. He had paid excessively for the Emmanuel and Fitkin interests—the National Electric Power and National Public Service—which extended his domain into the central Atlantic and southeastern states. But the critical transactions precipitating his utter collapse were more foolhardy than these. Fear caused him to defend* his empire in La Salle and Wall streets. His training hadn’t fitted him to wrestle evenly with stock exchange marauders. Insull, attacked by Eaton, discovered the handy device of investment, trusts, and the money poured in. The tale of that dizzy adventure will be related next. Rate Reduction Sought ' Petition charging too high a return on property and asking an electric rate reduction was filed with the Indiana public service commission today by 200 residents of Miami county against the Northern Indiana Power Company.

HOOVER GIVEN ADVANTAGE IN PARTSOF EAST But General Situation Is Like Rest of Nation, ‘Ready for Change.’ -• BY RAYMOND ULAPPF.R I'nHed Press Staff Correspondent (Copyright. 1932. by United Press) WASHINGTON, Oct. 15.—President Hoover is given the advantage in several eastern states reporting hi the United Press national political survey. He is reported to have- a reasonable chance of recovering Massachusetts. one of the two states in the north which he lost to Alfred E. Smith four years ago. Rhode Island, the other 1928 Smith state, is reported less certain for the Democrats than it was four years ago. Anti-Roosevelt feeling is an important influence in both states. Smith’s forthcoming speeches in that territory, however, may improve Roosevelt chances. Anti-Hoover Feeling Strong With that exception the situation in New England and the big eastern’ states is described in the confidential reports in much the same language found in reports from the farther west. In the east, as elsewhere, economic issues and anti-Hoover feeling dominate. Os the New England states, with their total of fojty-one electoral votes, the hardest fighting is over Massacuhsetts, with seventeen votes. Smith, four years ago. had a plurality of 17,000 votes out of a total of 1.600.000. "An extremely important factor in Massachusetts is the unpopularity of Governor Roosevelt,” one report said. "This is not so much antiRoosevelt as it is strong proSmith.” Roosevelt soon is to make an address in Boston. Smith and the Democratic candidate have made peace. But reports state that the wounds still are unhealed. Democrats are trying to make their fight an anti-Hoover one rather than pro-Roosevelt. Thomas to Get Votes Mill workers, many of them resentful of the treatment of Smith, are expected to vote for Norman Thomas, the Socialist candidate. A large vote for Thomas is feared by Democrats because it would cut directly into them. Maine is expected to be close. Democrats are trying to hold the small margin by which they carried the state in September. Rhode Island is listed as doubtful. Reports also list Connecticut as in doubt, with Roosevelt favored. Contrary to expectations some weeks ago, those reporting the outlook in New York now believe Roosevelt will carry his own block of forty-seven votes. Pennsylvania in Doubt New Jersey reports also favor Roosevelt on economies, rather than the prohibition issue which is traditional in that slate. In Pennsylvania Democrats are seriously going after that block of thirty-six votes which has been almost as sure Republican hitherto as Arkansas has been Democratic. Delaware’s three votes are re-

THE PRICE OF SAFETY A Year And Up Protest your valuables by renting a safety box in our modern vault. AETNA Trust and Savings Cos. 23 North Pennsylvania Street Lincoln 7371

We are pleased to announce the removal of the barricades and , the widening of the streets around our new building. We deeply appreciate the fine spirit of cooperation with which the Indianapolis public met the necessary inconvenience caused during this construction period. Indiana Bell Telephone Company ★ THE ECONOMICAL VOICE OF MILLIONS

ported in doubt, but u word has been passed that some of the most powerful Dupont influence is going toward Mr. Hoover. Republicans expect to pull through. SCIENTIST UNDER KNIFE Blind Astronomer of Yerkes Observatory Undergoes Operation. Bu l nitrd Vrrx CHICAGO, Oct. 15 Dr. Edwin B. Frost, blind director emeritus of the Yerkes astronomical observatory at Williams Bay, Wis., and one of the leading astronomers of the world, successfully underwent a major operation Friday in Billings Memorial hospital.

# S “food with a flavor that brings you back ” Our ads tell a story of value . . . when you consider the delightful surroundings, the excellent service and the par excellence of the tasty food .. . . you’ll agree after one visit that Seville is the most economical place to bring the family on Sunday. Compare for Quality and Economy at Seville SEVILLE North Meridian at Washington

1874-1932 Since 1874—with a background of more than fifty-eight years of experience— the Celtic Savings and Loan Association has been investing the funds of thousands of people—by assisting others in the securing of homes. First mortgages on well-located Marion county real estate—which we believe to be one of the soundest investments known. Assets $13,787,241.11 Celtic Savings and Loan Association Member of the Marion County League 23 W. Ohio St.

PAGE 3

DALE HOLDS TO JOB ttdb Refuses Formal Demand to Quit Mayor Post. Bp T atted Pee** MUNCIE, Ind., Oct. 15.—Oorg R. Dale, militant Muncie mayor ousted by the city council, continued to hold office today in face , of a formal demand to relinquish It to Earl Everett, appointed to fill the position by the council. Quo warranto proceedings to test title to the office will be filed in ciTcuit court Monday, Everett said.