Indianapolis Times, Volume 44, Number 216, Indianapolis, Marion County, 18 January 1933 — Page 9

Second Section

HOOVER SALES TAX PLEA TO BE REJECTED — Democrats to Answer ‘No,’ Backed by Roosevelt's Strong Opposition. WARNS OF HUGE DEFICIT President Declares Levies Must Be Raised and Expenses Reduced. B Y RAYMOND CLAPPER I nited Press Staff Correspondent WASHINGTON, Jan. 18.—Despite President Hoover's new budget! warning, Democratic house leaders still are opposed to the general manufacturers sales tax. They are having trouble in making major reductions in expenses. So it is largely on deaf ears that j President Hoover, in his latest budget message, released ia'c Tuesday, ; thundered a call to make both ends j meet, by joining new taxes and | economies. Unless President-Elect Roosevelt should reverse himself in his conference with his legislative generals here Thursday, the Hoover program for handing the government over to his successor with expenses and income balanced appeared today to j be doomed. Roosevelt Is “Horrified” When Democratic leaders recently j decided the sales tax would have to be resorted to, and it was intimated that Mr. Roosevelt was sympathetic, word came back that he was “horrified'’ at the though. Hints that income taxes would be made more drastic brought such a quick cry of anguish that this idea promptly was disowned by all parties. President Hoover’s warning, dispatched to congress within a few minutes after the senate had joined the house in overriding his veto of the Philippine independence bill, was to the effect that unless taxes are raised and expenses reduced there will be a deficit of $920,000,000 to $1,120,000,000 next year. It is this period for which congress now is making the annual departmental appropriations. He would j raise half of the deficit by news taxes and wipe out. the other half by economies. This outlook confirms the picture j drawn in recent United Press dis- j patches describing where the taxpapers’ dollars goes. Deficit Piles lip The government ran behind S9OO,- | 000 000 in 1931. It fell behind $2,800,000,000 in 1932. This year it | is due to be $1,100,000,000 short. Plus j the estimated deficit for next year, I , this makes a total of $5,800,000,000 in j four years. This debt, makes it necessary for tlie government to borrow money by | selling bonds and short-term securi- j ties. This year it will cost $725,- I 000.000 to carry the interest alone, j Next to the $1,000,000,000 veteran cost, this interest charge is the larg- j est single item in the national i budget. To reduce it, Mr. Hoover suggested i converting high rate Liberty bonds to lower interest bonds. These are large, faraway figures to the average person. They will, however, come home with sharp impact on those who make out income tax returns between now and March I 15 and discover that while their : , earnings have dropped their taxes ; have multiplied. Three Essentials Mentioned In his message. Mr. Hoover set three essentials: j 1. Maximum economies urged ini his budget message should be ad- 1 hered to by congress. 2. No new authorizations or appropriations should be made. 3. Even appropriations recommended should be tut at every possible point. “I regret to say that the same ! forces are at work which thwarted the saving of several hundred mil- j lions we sought to effect at the last session of congress, - ’ Mr. Hoover said. He added that in appropriation bills already acted upon by the house, an appearance of saving had been made, but that actually the amounts ran $35,000,000 more than budget recommendations. Democrats Strike Back Democrats immediately accused Mr. Hoover of misrepresenting the facts. Chairman Byrns of the appropriations committee told the house that five appropriation bills had been cut $62,735,000 more ihan Mr. Hoover asked last December. ‘ Instead of spreading it. over a few scores of commodities ana services at irregular rates, which cause discrimination and hardship between industries,” Mr. Hoover said, “it would seem the essence of good statesmanship to apply such a tax generally at a low rate upon all manufactures except upon tood and cheaper grades of clothing, and thereby gi\e the federal government a stable basis of income during the period of depression.” F. H. M'CREA IS DEAD Veteran of Spanish War Was High Schools Military Supply Officer. Following an illness of six days, Frank F. McCrea. 83, Spink-Arms. an army captain in the SpanishAmerican war, died Tuesday in the Methodist hospital. Mr. McCrea for the last twelve years had been military supply officer for Indianapolis high schools stationed in the old powder magazine on the Technical high school campus. Falls In Suicide Attempt < After grieving over estrangement from his wife. William Williams. 21, of 3025 West Twenty-eighth street, •attempted suinde Tuesday night by drinking poison. His condition is , serious.

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FIELD TO HEAD BANK

Stanley Field, above, scion of Marshall Field, is the new head of one of the nation’s largest banks, Continental Illinois National Bank and Trust Company of Chicago. Fields succeeds George M. Reynolds, resigned.

GIRL RECOVERS IN SNEEZE CASE Child Curbs Attack After Being Held in Malady Grip for Week. Hii 1 uitril 7*rrss CHIPEWA FALLS. Wis„ Jan. .17 Specialists said today they believed Daisy Jost's own will power had proved the “cure” for a strange malady which caused her to sneeze three times every minute for almost a week. Daisy, who is 15 years old and an orphan, was much improved today. She sneezed only a few times each hour, ate. and slept some. Dr. William E. Henske, attending physician, and specialists who came here from other cities, said they were mystified by Daisy’s illness and believed only her own determination had anything to do with her apparent recovery. Numerous other "cures” tried had no effect, they said. The girl’s illness began with a cold about ten days ago. Monday, Jan. 9, she began sneezing, three times every minutes, with the momotany of clock beats. The sneezes became less frequent Tuesday and today practically had stopped. CARL GUTZWILLER IS CLAIMED BY DEATH Owner of Store and Baking Company Will Be Buried Thursday. Funeral services for Carl Gutzwiller, 69, owner of the Gutzwiller Baking Company and the Carl Gutzwiller and Sons department store, who died Tuesday at his home, 3716 Watson road, are to be held at 3 Thursday. Rites will be in the Flanner & Buchanan mortuary, 25 West Fall Creek boulevard, with burial in Crown Hill cemetery. Mr. Gutzwiller was born in Switzerland and later went to France. He came to Indianapolis in 1883. Mr. Gutzwiller also was active in social and fraternal life, and was a member of the North American Gymnastic Union and served as a member of the executive board of the union. For ten years he served as president of the South Side Turners Society. He also served as president of the Swiss Society of Indianapolis. BUILDING CONTRACTOR FEE BILL IS DEBATED Annual License Is Provided in Measure Before Assembly. Fate of a house bill which would license Indiana building contractors upon payment of a fee of sls for the first year and $25 annually for renewal, remains undetermined today despite considerable discussion at a meeting Tuesday afternoon of house judiciary committee B. It will be considered at a meeting later in the week. Opposition to the measure was led by Representative J. Frank Regester (Dem., Bloomington) who declared many benefits claimed for the measure could be obtained under laws now in effect, and he expressed fear that enactment of the bill would work hardship on small contractors. TAX EXEMPTION ON SMALL HOMES KILLED Legislature Bill Would Take Levy from Houses Worth Less Than $3,000 Bill which would have made homes valued for taxation at less than 53.000, if occupied by the owner. exempt from taxes was disapproved by house committee judiciary B Tuesday afternoon, by the indefinite postponement method. The bill, introduced by Representative Eugene Martin (Dem., Ft. Wayne), provided that the owner of a home he occupied, which was valued in excess of $3,000, would pay taxes only on the excess. Chief objection was that in many small towns, no home would be on the tax lists, because none could be assessed in excess of $3,000. OLD RESIDENT IS DEAD Mrs. Mary Barthel, 76, Lived Here All of Her Lifetime. Funeral services for Mrs. Mary Barthel, 76. lifelong resident of Indianapolis who died Tuesday at her home. 4044 Broadway, will be held at 1:30 Thursday in the Flanner & Buchanan mortuary. 25 West Fall Creek boulevard. Burial will be in Crown Hill cemetery. Man. 81. Kills Himself Despondent because of long illness. Joseph Evans. 81. of Clermont, killed himself Tuesday night at his home by slashing his throat with a The widow and three children survive.

The Indianapolis Times

‘RUSH’BILL FOR BONE DRY LAW REPEAL FILED Emergency Measure Pushed in House; Beer Control Draft Introduced. NEW BANK CODE ASKED Elimination of Receivership Evils Are Sought by Survey Board. The house of representatives was handed a “surprise package of wet j goods” today, when an emergency | bill for outright repeal of the Wright bone dry law was introduced as a companion measure to 1 the long-heralded administration beer control bill. Although the repealer bore the signatures of fifty-eight repre- j : sentatives, several members of the j house, expecting only the beer; omnibus bill, murmured perplexedly j over it. Representative John F. Ryan (Dem., Terre Haute), chairman! of the public morals committee j and introducer of both measures, i rose to explain. “That measure, gentlemen,” hei said, "demands immediate and out- ; right repeal of the Wright law.” I Applause Greets Remark A salvo of handclaps greeted his j explanation. Immediately on the heels of the | repealer came the beer control bill, | which also carries a provision for I Wright repeal and medicinal whisky. It bore the names of thirty-three representatives, but three asked to have their names removed. This trio included Representatives Pat J. Cain (Dem.. Ft. Wayne>, Charles J. Allerdt and Aloysius V. Korpal (Dems., South Bend). All are wets from wet centers and favor the legalization of beer. Withdrawal of their sponsorship was due, they explained, to objections to what they term monopolistic features of the measure which limit thq number of breweries. Provisions for handling of imported beers, they assert, limit the competition that can and should be offered by local breweries. All Favor Repeal Cain. Allardt and Korpal all favor I immediate Wright law repeal. Submission of the Wright repeal- ! er along with the beer bill was dic- : tated, it is understood, by a desire to insure immediate action and | not have it tied up solely in the I beer bill, since the latter could not | be operative until congressional acj turn affecting beer legalization is i taken. Provision? of the beer bill are un- | changed from the order in which they came from a final parley of | administration conferees. | Also introduced in the house today was the administration measure setting up anew bank code, ; dealing in particular with correction of grave abuses in the receivership system of closed bank liquidation. Product of the study commission for Indiana financial institutions, which conducted a survey of world banking laws, the measure has been called one of the most comprehensive ever designed to revamp bank laws. Under provisions of the bank bill, the state banking department is abolished and anew non-partisan, non-salaried board of four members would be appointed by the Governor. This board would have full supervision over banks, building ano loan associations, petty lenders, credit unions, and other financial institutions. Given Full Charge In liquidation of closed financial institutions, the new board would have full charge, subject to review j j by’ courts. Another grave abuse the bill is designed to correct is the j excessive borrowing by “inside I cliques.” In no event, the bill provides, can j I a bank lend more than 10 per cent j j of its capital structure to any one ! borrower. Neither can a bank ac- | cept deposits in excess of ten times ; its capital structure. Building and loan laws are codiI fied and loans limited to 6C per cent of the appraised value of the real estate. Stockholders would be prohibited from withdrawing more than SIOO without notice, unless the cash reserve of the association equals more than 3 per cent of its i total assets. Much attention Is paid by the bill to holding companies or securities affiliates. The new board is vested with authority to investigate these companies and may order banks to withdraw their money from holding companies, if such action is deemed warranted. Mine Bill Killed The measure was drawn by a study commission of eleven, with Walter S. Greenough, Indianapolis, chairman, and Herman Wells. Bloomington, secretary and research , director. Killing a bill which would have compelled strip mine owners to level ground after removal of coal, and a clash over sending an Indiana delegate to a legislative conference in Washington, marked the forenoon session in the house. The bill came from the mines and mining committee, with a recommendation for indefinite postponement by the majority, and a minority report, signed by Representative H. Baxter Plew, (Dem., Hymera). urging passage. The majority report adopted after its signers asserted the bill, if enacted would impose a burden on the employers of 1.800 men. " —— W. E. Balch Honored Election of W. E. Balch. manager of the Indianapolis Merchants’ Association. as first vice-president of ’ the National Association of Retail ‘ Secretaries, was announced today.i

INDIANAPOLIS, WEDNESDAY, JANUARY 18, 1933

Back to Barter — No. 3 BARTER SYSTEM FEEDS 100,000

Labor Swapped for Farm Products in California Plan

This is the third of six stories describing remarkable growth of the “Back to Barter” movement. BY ROBERT TALLEY NEA Service Writer Moneyless families in southern California have stopped waiting for prosperity to round that corner. Aided by fertile fields, willing workers, and co-operation born of necessity, thousands of unemployed in and around Los Angeles have built up a "Back to Barter” system that is feeding 100,000 people in one of the largest and most successful of many such movements throughout the nation. Their system, known as the California Co-Operative Exchange feeds the jobless, aids business by consuming surplus crops for nearbankrupt farmers, and lifts a large burden of relief that otherwise would have to be met by charity or taxation. Today, eighty exchanges for the bartering of labor for food and other necessities are operating in Los Angeles and vicinity. There are also many others in other sections of California feeding many more. Men and women from virtualy all previous employment ranks are engaged in the movement. Some of the leaders are T. W. Grubbs and H. P. Dean, former bankers; Floyd Parker, former contractor; A. Hayden Machon, former office worker; Margaret Campbell, unemployed actress; and Mrs. Bessie Ball Mays, a housewife whose husband lost his job. Perhaps the reason for the remarkable success of the system is its simplicity. an n THE plan originated in a section near Los Angeles, where hundreds were being saved from hunger by welfare bureaus. At the same time, thousands of tons of foodstuff w’ere going to waste all around them. Market prices were at rockbottom levels, but men without money and without jobs couldn't buy. Nor could the distressed farmers afford to hire labor to harvest their crops. The result was economic stagnation, more families being driven to the relief rolls. Several jobless men, to whom charity was distasteful, had an idea. They went to the farmers and offered to barter their labor for food. The offer quickly was accepted. Asa result, the first branch of the California Co-Operative Exchange was founded. Unemployed men of the community went into the fields and harvested the crops, collected their pay in cabbages, potatoes, parsnips, beans and the like. Usually, the farmer and the worker split the harvest 50-50. Sometimes the unemployed were given the whole surplus above that which the farmer was able to sell at a profit. From there on this moneyless system of exchange moved swiftly. Soon the jobless traded their surplus produce for a truck and for space in a warehouse in which to store their vegetables. Exchanges multiplied. Gradually, small merchants, barbers, butchers. shoe repairers, doctors and dentists were persuaded to swap their goods or services for food. A gasoline company fell into line; even some landlords agreed to accept produce for rent. n u n UNITS began to barter among themselves. One at San Pedro, harbor of Los Angeles, traded fish caught by jobless fishermen for farm produce. Another at Pasadena swapped oranges for tomatoes. A large packing house in Los Angeles traded a steer a week to

Fortune Built on Matzoths; Matriarch Is Benevolent Ruler Over 300 of Her Kin

triarchy built on matzoths! Luntz in the arms barrels of flour for their matzo The story unfolded as Mrs. Regina of Mrs. d her fortune today, within a And the depression? brick factory at 369 East Fourth

Mr. and Mrs. Ignaz Margareten and their daughter. Yetta, who is now a grandmother, when they arrived from Hungary in 1885. BY MARGUERITE YOUNG Times Staff Writer NEW YORK. Jan. 18.—A modern matriarchy built on matzoths! The story unfolded as Mrs. Regina Margareten. the matriarch, sat and talked of the rise of her family and her fortune today, within a red brick factory at 369 East Fourth street. Meanwhile, matzohs, the alpha and omega of this sage of orthodox Jewish life, were rolling automatically into packages ... 800 matzoths a minute. 2,592.000 a week, 64,800,000 a year, a million-dollar-a-year business. Mrs. Margareten. treasurer of the firm of Harowitz & Margareten, also is the dominating leader of a family of more than three hundred members—a family which hires a hall to get together four times a year. It makes a profit out of this, too, and devotes it to chanty.

THIS

EXCHANGE

NO MONEY, but Plenty of Food Without Charity—The wife and children of a jobless man in Los Angeles are shown here as they received a box of vegetables, bread and milk at a Los Angeles co-opera-tive exchange. The husband's labor paid for it in this extensive southern California system of barter, which is feeding 100,000 persons.

each exchange in return for produce; jobless butchers got out their knives, and juicy steaks returned to the tables of jobless families. Recently, district leaders of the California Co-Operative Exchange held a state convention and figures presented there told an interesting story. On the average, a jobless man needs to -work only a half day in the fields to obtain enough vegetables to supply his family for a week. Several exchanges have built up regular vegetable routes, members selling part of their produce for money with which to pay rent and buy clothing. Men have collected and cleaned innumerable jars and bottles, and in these their wives have preserved food. When leaders of the growing movement unsuccessfully sought to barter for telephone service between exchanges, unemployed wireless operators offered their services and equipment. Now many scattered exchanges are in communication. And the wireless operators, many of whom had been out of work for months, are eating regular again. tt tt tt OF course, all is not yet smooth. Difficulty has been experienced in attempting to extend the barter of vegetables for such items as clothing, shoes and rent. To the obvious query, “Will Communists gain control of your movement?” one leader replied: “No. We tell our people, ‘You have a brick in your hands; will you throw it to smash things, or will you place it in a structure and build?” Os course, this barter system

She has six children, nineteen grandchildren and five great-grand-children—and it is her proudest boast that “thank the Lord, they are all married, those old enough, and all happy.” Neither they nor any of their 300 kin ever has rebelled against her ministrations toward settling them in matrimony, she said, nor against any religious or family tradition. She. her son said, “signs the thing.” She was 70 this week. Nearly fifty years ago she ar-

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has not eliminated the need for relief work; nobody even hoped for that. But its results seem to have been tremendous. Here’s what W. R. Harriman, superintendent of the Los Angeles country department of charity has to say of barter: “It is one of the finest things developed in the nation so far to

GENERAL SALES TAX IS URGED BY DYER Vincennes Legislator Is Speaker to City Rotary Club. Predicting that the Indiana assembly would not disturb the $1.50 tax limitation and would fail to pass an income tax law, Representative John Napier Dyer (Dem., Vincennes). told members of the Rotary Club Tuesday that he favored a general sales and service tax system. All state expenditures would be met from revenues from a sales and service tax, Dyer said. Education will be place on a more solid basis by the present assembly, Dyer predicted, with sufficient revenues guaranteed. Educational frills, he said, should be eliminated. Governor Paul V. McNutt, spoke briefly. Health Group Organized Safeguarding of the health of students is the aim of the Student Health Council for Indiana, organized Tuesday in the Columbia Club. Dr. Floyd Riggs of the Indiana State Teachers’ college of Terre Haute, was elected president.

Mrs. Ignaz Margareten shown at left and, above, extreme right. Above, left to right, her daughter, Yetta Laud; a great - grand daughter, Marilyn I.untz in the arms of Mrs. Adele Luntz, and Mrs. Margareten,

rived in New* York with her husband, her father, Jacob Harowitz, her mother and four brothers. She wore a wig (Orthdox Jewesses shaved their heads because they were supposed to be unattractive to all men save their spouses) and she still wore it today. “I didn’t want to change.” she said, “because my father-in-law was a rabbi.” Old Jacob Harowitz set up a small bakery on the spot where the factory stands today. They came ! from Miscolcz, near Budapest. The

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EQUALS THIS

relieve human suffering. We couldn't possibly find enough money to care for the unemployed if the movement had not started. As it is, we are holding our own.” NEXT: Seattle, where 100.000 jobless and dependents live without money through the exchange of labor and services; Denver, Houston and Waterloo, Ia.

Barter Bureau Starts Friday Commencing Friday, Jan. 20, The Times Want Ad Department will inaugurate a “Swap,” or Exchange Bureau. To Readers If you have anything to “Swap” and can not locate a suitable trade in the want ads, you can phone or visit The Times Want Ad department for complete Information on swaps that have been offered during the previous two months. Just ask for the swap bureau and describe your want. If then you have not found a suitable ‘‘swap” or trade, just place a small “swap” adcosting only 3 cents a word. Your swap will be listed FREE in the swap directory for two months. Phone Your "Swap” Now to RI. 5551

family’s tiny home in front of the bakery was where they sold their matzoths. Two years later his father died. “I was his right hand,” said Mrs Margareten. “so the burden fell on me. Just before he d ; ed he drew all his family together and told us, 'Let there be sholombais you know*, peace in the household—in the family. With one finger you can do nothing. With a whole hand together, you can succeed! ’ And that is how it has been with us.” The first season they used fifty barrels of flour for their matzoths. By 1900 it was 15.000; by 1915, 22.000; by 1932, 45,000. Two years ago they reached their goal of $1,000,000 gross a year. And the depression? “It would still be a million,” explained Mrs. Margareten, “because, you see. before it was a leetle more. And ve hope to do better this year.” Six months a year they prepare the matzoths which are consumed zy Orthodox Jews in about eight days of the Passover season. They send them to jobbers throughout the United States. They send them to Mexico, have a representative in every European country, in South Africa .. .even to Soviet Russia they sent 40.000 pounds last year with official permission, “And ve hope to do double that, or triple, this years,” she noted.

CALAMITY FOR STATE SEEN IF BEER RETURNS Anti-Saloon League Leader Prophesies Great Wave of Moral Indignation. WARNS OF GAS AND RUM Orgy of Drunken Driving Is Forecast: York Scoffs at Job Gain. BY JAMES DOSS “Indiana will experience one of the greatest waves of moral indignation in its history, if the Democratic administration beer control bill is passed,” L. E. York, supertendent of the Indiana Anti-Saloon League, said today. Bitter* denunciation of the bill, which also embodies Wright bone dry law repeal and medicinal whisky, was voiced by the Indiana dry chieftain. The bill is expected to be introduced in the house today. “This bill.” York asserted, "is the forerunner of a general letdown. It will mean the liberalizing of our morals and an appalling increase in drunken driving.” "I don’t believe.” York challenged, "that some of the men w r ho vote for this bill as an administration measure, realize that they must answer to their constituents. People try to tell me that Indiana has become wet, but I don’t believe it. Prophesies Great Resentment “There’s going to be a great wave of resentment—you can depend on that. This resentment will be even greater in the dry communities, because they won’t have opportunity to protect themselves.” “Do you believe the bill should contain a local option clause?" York was asked. "I wouldn't say it should contain an option‘clause, but there will be greater resentment in some dry localities because it doesn’t,” York countered. ’’They claim,” he asserted,” that they’re getting away from the open saloon. Doesn’t the bill say a man may go into an eating place and get up to three pints of beer with a meal? Docs it define a meal closely? Opportunity for ‘Drunks.’ ‘‘Couldn't a sandwich be a meal? Well, what's to prevent a man going straight from one place to another and getting another sandwich and three more pints of beer? “There’s no doubt in any thinking person's mind that the depression has brought on a seeming inj crease in wet sentiment. A lot of people are deluding themselves in the belief that the death of pro- ! hibition means the birth of employment. “Claims that the return of liquor means four million jobs are too utterly absurd for serious consideration. The employment that liquor gave in pre-prohibition days was far below that figure. “If this beer control bill, which also provides for medicinal whisky, is passed, you are sure to see abuses of the prescription privilege. “And as for drunken driving—let me quote you Grover Garrott, state police chief. Garrott already has foreseen the result of such bill and has asserted that its passage means the state police will need more funds to cope with an increase in drunken driving. Drys Marshal Forces “The wets quote a lot of reasons in their demand for the return of liquor. They talk economics, meaning more jobs and revenue for the state, and personal liberty. "That last is their real reason and when a man who’s drinking gets at the wheel of an automobile, he’s exceeding the bounds of personal liberty. As for the economic side of it—‘no nation ever drank itself into prosperity.’ ” York said his organization and the W. C. T. U. are marshaling their forces for appearance before the public morals committee, which probably will consider the beer bill Thursday. No representative of either dry organization yet has filed as lobbyist with the secretary of state. THREE DRIVERS HELD ON LIQUOR CHARGES Arrests Come as Results of Traffic Mishaps on Tuesday Night. Three automobile drivers face liquor law violation charges today as result of traffic mishaps Tuesday night, according to police. After a headon collision with a motionless street car at Pershing avenue and West Morris street, John Coonfield, 39. of 1121 Cottage avenue, was arrested on charges of drunkenness and driving while drunk. Similar charges were placed against Roy Harper. 237 East Ninth street, after crashing into a car driven by Herbert Myer. 942 North Keystone avenue, at New Jersey and Washington streets. John Broderick, 37, of 1520 Wade street, was arrested on charge of blind tiger and vagrancy after police said they found a small quantity of liquor in an automobile which he and a companion abandoned after a collision at Keystone and English avenues. KILLING CLEW SOUGHT Deputy Sheriff Questions Engine Men on Train of Mystery Death. Deputy Sheriff Harry Cook was to leave today for Columbus, 0., to question P. M. Hoffman, fireman on a passenger train from which an unemployed man was shoved to his death Saturday afternoon ten miles east of Indianapolis. The engineer of the train told Cook that George Gray, 30, of Waynesville, 0., the victim, talked with Hoffman a short time bel> e he met death. No clew has b%>n found to the identity of the killer.