Indianapolis Times, Volume 44, Number 254, Indianapolis, Marion County, 3 March 1933 — Page 1

- HOWARD |

DEPOSITS SOAR BY MILLIONS IN CITY BANKS THIS WEEK Huge Sums Placed in Separate Accounts Since Withdrawal Limit Became Rule on Monday HEAVY PAY ROLLS WILL BE MET Thursday Clearings are Encouraging; Comptroller of Currency Acts to Prevent Preferential Dealings

The Banking Situation Today

Indianapolis deposits two millions in local banks and trust companies in four days. Corporation pay rolls will be met Saturday. Indianapolis clearing house figures show bank clearings are maintaining strength. Thirty states now are on bank holiday. Stock prices rise 1 to 6 points; grains jump. BY LOWELL NUSSBAUM More than $2,000,000 has been deposited this week in local banks, since the 5 per cent withdrawal limit was ordered, Indianapolis bankers estimated today. This immense sum is being held in cash in separate accounts by the banks and will be available Saturday for distribution to meet pay rolls of various firms.

This figure, it was said, | does not include the 5 per cent of deposits in the banks Saturday, which adds greatly to the sum of cash available for immediate circulation. Added encouragement in the local financial situation was given with the announcement by George C. Calvert, Indianapolis Clearing House Association manager, that clearings of the various local banks Thursday totaled $1,322,000, only 30 per cent below the average for February. No Preference, Is Order Telegrams have been received by national banks here from the comptroller of the currency advising them hot to grant preferences to any class of depositors, as such acts of preference might be regarded as technical acts of insolvency. The ruling was interpreted as preventing national banks from loaning money with “frozen” accounts as security. This would mean that only the 5 per cent of balances as ctf Feb. 25, together with subsequent deposits in the new separated accounts, could be freed by national banks. The order is not binding on state banks, as yet, and several of these were reported planning to accommodate their customers with loans secured by the “frozen” accounts. Passed by Congress Congress several days ago passed a resolution authorizing the comptroller of currency to make national bank regulations conform with rules ! of state banking departments in the states in which the national bank- j ing associations are located. This action was taken to provide uniformity of banking rules in localities. Thus, if a state banking department. “froze” 80 per cent of deposits in state banks to halt runs, the comptroller of the currency could do likewise with national banks in that state. His powers in each state, under the resolution, are limited only by that state's banking laws. Local bankers reported large sums of new money are being turned into trad a channels. With a limit on withdrawal of funds on deposit prior to this week, hundreds of visits have been made to "sugar bowl banks' and to safety deposit boxes to obtain cash with which to operate. This money has been used to pay current bills and has added to the flow of currency put in circulation by cashing of nearly $1,000,000 in public employes’ pay roll checks this week. Utilities were functioning practically as usual today, after four days under the bank limit. Officials declared business is better than anticipated. Practically all larger Indianapolis firms were meeting pay roll demands in the regular manner. Several pay rolls had been made since Monday on a WTekly or monthly basis and most firms reported "no inconvenience" from the partial banking holiday. It was reported that a number of the larger firms will be able to meet pay rolls through funds available under the 5 per cent withdrawal limitation, augmented by cash shipped in from outside sources. Expect Federal Action Local bankers anticipate additional action in the near future by congress and state legislatures to clear up the national financial problem, as more and more states declared bank holidays or individual banks restricted withdrawals. No forecasts could be obtained from banks here as to when the withdrawal limit would be lifted or modified. The situation hinges largely, they said, on adoption of a uniform policy nationally. Order limiting withdrawals to 5 per cent was promulgated Monday by members of the Indianapolis Clearing House Association and immediately was followed by nonmember banks.

The Indianapolis Times Partly cloudy tonightj Saturday fair, not much change in temperature; lo west tonight about 30. r

VOLUME 44—NUMBER 254

BANK HOLIDAYS IN 30STATES List Grows Steadily, With All Parts of Nation Affected. By United Press ThirLy slaLes and the District of Columbia today operated under special bank holiday or moratorium plans. A two-day conference in Chicago of state insurance commissioners, which had considered a proposed moratorium on policy loans, adjourned today with announcement that no action had been taken. The commissioners had been urged by some small insurance companies in the corn and wheat belts to allow cessation of policy loans and fire and theft claims. Governor Henry Horner of Illinois issued a statement today that he felt a bank moratorium should not be declared in Illinois. The Governor was in conference with financiers most of the night. Melvin A. Traylor and Stanley Field were among the bankers who attended. Bankers and financial authorities met Thursday night in Washington and New York, discussing measures to prevent the heavy withdrawal of cash from states which have not declared moratoria Into those which (Turn to Page Ten)

Death Holiday

Bank Moratorium Saves Californian; Granted Fifth Reprieve. By United Press Folsom prison, cal., March 3.—At least one Californian was happy today about the threedav banking holiday proclaimed by Governor James Rolph Jr. It saved Peter Farrington from the ■gallows, to which he was sentenced for killing a San Francisco policeman. He was to have died today. The doomed murderer was granted his fifth reprieve by Governor Rolph. who doubted the legality of hanging a man on a legal holidav.

Progress of Sectional Meet FRIDAY SATURDAY Broad Ripple (22).\ 9:00 A. M. I (Triple overtime) , Broad Ripple ) New Augusta (20). J / \ 8:30 A. M. ' Washington (33)...\ t \ 10:00 A. M. Washington ) j Castleton (22) / / 2:30 P. M. } Shortridge (47) ..A / 11:00 A. M. Shortridge | \ Arton (11) / / 9:30 A. M. ' Decatur Central ...A \ 2:00 P. M. • I Oaklandon 1 (Semi-Finals) 8.00 P. M. SBU ‘ hpor ‘ ) (Finals) 3:o* P. M. J Manual I / 10:30 A. M. Technical \ \ i 4:00 r. M. ' I Lawrence ’ f N 3:30 P. M. \ Warren Centra] . . \ i I New Bethel ) f 11:30 A. M. } Beech Grove \ l 8:30 P. M. ( ) Ben Davis )

Stocks Soar; Wheat Price Takes Jump Shorts Stage Mad Scramble to Get Out of Their Commitments. By United Press NEW YORK, March 3.—A bull market developed in stocks and grains today. Stocks shot up 1 to 6 points, while wheat jumped 2 cents a bushel on the Chicago Board of Trade. Shorts staged a mad scramble to get out of their commitments and were forced to bid up prices of stocks several points to get them. Trading turned active. Tickers were straining to keep pace with the market. The tape was two minutes behind at 11:30. The movement spread to the curb exchange. Cotton futures soared $1 a bale. Sugar prices firmed up. Nervousness of shorts was caused by two items: 1. The aoproach of the inauguration of President-Elect Franklin D. Roosevelt. The “Street” believed the new President would issue a reasstiring statement on taking office, and bears were afraid to risk a sensational rally on the publication of the statement. 2. Reports were current the various exchanges would restrict short selling as they did when England w’ent off the gold standard last year. Grains in Advance By United Press CHICAGO, March 3.—A startling rush of buying swept the wheat pit of the Chicago Board of Trade today, and shot the price of wheat up 2 ',2 cents a bushel in the first hour’s trading. All grains joined in the sudden upward rush of prices. Provisions gained as much as twenty points. At first confused over the reasons for the sudden change in sentiment, traders believed the announcement of policy by Henry Morgenthau Jr., designated to head the federal farm board by President-Elect Roosevelt had brought the first bullish flush to the market in months. Morganthau announced the federal board would retire from stabilization operations as rapidly as possible.

NATION’S CHIEFS MOURNJfALSH Grieve at Bier of Senator; Roosevelts Plan to Visit Widow. By United Press • WASHINGTON, March 3. —A group of high government officials silently mourned today at the bier of the late Senator Thomas J. Walsh (Dem., Mont.), while the city was gay with flags for the inaugural scene at which he was to have been a principal actor. The body of the much loved senator was returned to the capital Thursday night, accompanied by his tearful widow whose honeymoon became a sad cortege. President-Elect and Mrs. Franklin D. Roosevelt called on Mrs. Walsh today to extend their sympathy. The train bearing the body of the man Mr. Roosevelt chose for the important post of attorneygeneral was met by representatives of both the incoming and outgoing chief executives. Her eyes red with weeping and her shoulders bowed in grief, Mrs. Walsh, who as Senora Nieves Perez De Truffin had been a social leader in Havana and Washington, appeared in a state of near collapse. Attendants held back a ’ curious throng as she was escorted to a limousine. The widow was taken to the Walsh apartment where in a modest, flower banked room the body of her husband lay. The Walsh family there joined in her grief. 80Y KILLED IN FALL 11-Year-Old Lad Injured Fatally on Way Home from School. By United Press RICHMOND, Ind., March 3. Eugene Winkle. 11, was injured fatally late Thursday when he fell against a railroad tie while walking home from school.

INDIANAPOLIS, FRIDAY, MARCH 3, 1933

1,500 PERISH IN JAPANESE EARTHQUAKE # Tidal Wave and Fire Add to Terror Along Stricken Coast Region. THOUSANDS LOSE HOMES Cities of Yokohama and Tokio Shaken Violently; Shipping Damaged. BY MILES W. VAUGHN United Press Staf* C rrespondent TOKIO, Marc’.* - 'apan’s worst earthquake sinci followed by a tidal wave and widespread fires, took more than 1,535 lives in a day of terror on the devastated norihI era coast of the island of Honshu, j it officially was announced today. Morioka, capital of the prefecture, ! of Iwate imported 477 dead, with 355 killed in seaside villages. Perfecture Dead Injured Missing Iwate 1,380 276 696 Miyagi 136 25 227 Aomori 8 37 21 Hokkaido ... 11 ... 4 A grand total of 2,963 houses washed away, 1,279 destroyed, 211 burnt and 6,343 inundated. Small ships washed away totaled 1,533, with 85 others damaged. More than 2.000 homes in the I province of Iwate were washed away. Tidal Wave Engulfs Cities The cities of Tokio and Yokohama were shaken violently, and great crowds, fearing a repetition of the 1923 earthquake, swarmed through the streets in hysterical excitement. Electric lights failed in Yokohama. but little damage was reported. The modern industrial cities of Kobe and Osaka escaped serious damage. One of the hardest hit towns was Kamaishi, 300 miles northeast of Tokio, in the Iwate prefecture. More than 1,000 of the flimsy, bamboo and paper constructed houses were swept away there by the tidal wave, and 3,000 more were destroyed by fire that broke out to complete the destruction, according to police reports. The tidal wave engulfed the towns of Minanogoway ir> the iviiyagi prefecture, where 1,2 houses were reported under water. Shipping Seriously Damaged All telegraph and telephone lines north of Sendia, Oomori and Hakodate were down, and officials ot the Japanese home office said that at least 500 houses had been destroyed in those towns, either by the earthquake or tidal wave ,or in the destructive fire that follqjved. Joseph Clark Grew, American ambassador to Tokio, was visiting at Myanoshitta, north of Tokio, with his family. The effects of the earthquake were slight in that vicinity. Serious damage to shipping was reported. The tidal wave swept away boats at the port of Miyako, and scores of fishing boats were sunk at Fukishima.

THREE CITY TEAMS WIN SECTIONAL TILTS Washington, Broad Ripple and Manual Triumph. (Details on Sport Page) Three city quintets captured first round honors in opening tilts of the Indianapolis high school basketball sectional at Tech gym this morning. Broad Ripple nosed out New Augusta in a triple overtime struggle, 22 to 20, while Washington trounced Castleton, 33 to 22, and Shortridge ran over Acton, 47 to 11. In games this afternoon. Decatur Central was to play Oaklandon at 2 p. m., Southport faces Manual at 3 and Tech tackles Lawrence at 4. WAGE BILL IS PASSED Sliding Scale Is Delected From Teather Pay Law. Final senate action was taken today on the house bill removing the mandatory sliding wage scale requirements in the SBOO teachers’ minimum wage law. This provision of the law required increases based on success, grade and experience. It was asserted that it has proven a handicap rather than aid to many teachers during the depression. When qualified for an increase they were discharged to save granting it. according to Senator Ward Biddle (Dem., Bloomington) , who urged the bill's passage in the senate. It was approved 35 to 3.

Forty-Six States to Ratify Repeal of Dry Amendment, Predicts Literary Digest; Impetus Is Given to Drive

BY WALKER STONE Times Staff Writer WASHINGTON,. March 3.—The drive for repeal of the eighteenth amendment gained impetus throughout the country today as the news spread that the Literary Digest, in this week’s issue, predicts ratification of the repealer by forty-six states. Forecasts of the Digest, one of the nation's leading political weather vanes, have proven unusually accurate over the last twelve years. Digest polls in 1924, 1928, and 1932 predicted the winning presidential candidate in all instances, the magazine boasts, “with an error of less than 5 per cent.” If the issue is put to a direct vote of the people, the says, the

1,500 CHINESE SLAIN IN BATTLE; JAPANESE NEAR CAPITAL OF JEHOL

Booze Raiders’ Era Is History Now

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Left to Right—Patrolmen Otto Fulton and Joe Stutesman and Sergeant John Eisenhut.

Roosevelt Ready to Speed His War on Depression Rounds Out Details of Economic Rehabilitation Program in Capital Conferences. BY FREDERICK A. STORM United Press Staff Correspondent W ASHINGTON, March 3.—Franklin Delano Roosevelt, ready to assume the presidency of the United States within the next twenty-four hours, prepared today to carry out his pledge of a “new deal” in government with the utmost speed.

RAINEY NAMED TO SPEAKER JOB Greenwood of Indiana to Be Democratic Whip in Reorganization. BY GEO. SANFORD HOLMES Times Staff Writer WASHINGTON, March 3. Sweeping reforms in the administration of the house of representatives will be placed in effect in the seventy-third congress, when Henry T. Rainey of Illinois assumes the position of Speaker to which he was elected last evening at a caucus of the Democratic majority. The program for liberalization of house procedure was offered by Majority Leader Rainey himself, and was adopted with only a minor amendment. It provides for a steering committee responsive to the Democratic majority. By proposing this change in house management, the Speaker-elect relinquished traditional powers and prerogatives, and stripped himself of the arbitrary authority which has been exercised by Speakers before him. Rainey was elected by a vote of 166 to 112 over John McDuffie of Alabama. Joseph Byrns of Tennessee, veteran chairman of the appropriations committee, was chosen majority leader over Representative William B. Bankhead by a vote of 151 to 140. An unusual situation in Democratic caucus history took place when Byrns nominated Rainey for (Turn to Page Twenty) M’NUTT VETO UPHELD Inheritance Tax Measure Disapproved Because of Conflict. The house of representatives today upheld a veto by Governor Paul V. McNutt of a bill relating to inheritance tax reports. The Governor disapproved the bill because it was in conflict with a senate measure extending from six months to one year, the time for filing reports.

drys will not be able to muster more than one or two states to vote against repeal. Analyzing its 1922. 1930 and 1932 nation-wide prohibition polls, the Digest article contends that the sentiment of the electorate was wet eleven years ago, and has grown wetter every year since. “The drys,” says the Digest article, “must hold thirteen states in line. Can they do it? “Not more than two states, let alone thirteen, will vote against repeal of prohibition, as shown by the Literary Digest’s polls. “Kansas and North Carolina were the only dry states in the latest poll, and this by scant margin. “At the risk of seeming to pat itself on the back, but with a high

Almost immediately on his arrival, Mr. Roosevelt called Democratic Senate leaders to his hotel for discussions calculated to round out the drastic program he has in mind for economic rehabilitation. The conferences were continued today between calls on President Hoover and the widow of the late Senator Thomas J. Walsh, attorneygeneral designate. The banking situation, which Mr. Roosevelt has been watching for two weeks, was taken up- with senate leaders. No Statement on Banking Mr. Rcosevelt formally denied New York reports that he proposed to issue a statement on finances today. The President-elect's secretary said that when Mr. Roosevelt was informed of these reports he said: “They are without any foundation. I do not propose to make any statement on finances.” Speaker John N. Garner, after a morning conference with the Pres-ident-elect, indicated that the special session of congress would be called early this month. The Speaker would give no indication as to the exact date. That Mr. Roosevelt is ready to drive first toward economy was evidenced in his appointment of Henry Morganthau Jr. of New York as chairman of the federal farm board. One of Morgenthau’s first tasks will be to consolidate all federal farm relief agencies under the new board. Friends looked for Mr. Roosevelt to name before inauguration the person to fill Walsh's place in the cabinet. Considers Cabinet Situation The President-elect was reported to be considering three or four names, among them being Arthur Mullen of Nebraska, vice-chairman of the Democratic national committee; Homer Cummings, veteran Connecticut leader, and Guy Thompson, St. Louis, former head of the American Bar Association. Sources close to Mr. Roosevelt felt Mullen stood an excellent chance. At the same time it was declared that should Cummings be chosen, it would be as a stop-gap and for a brief time only. He is slated, it was explained, for the governor-generalship of the Philippines.

pride in the accuracy of its polls, whose integrity often has been attacked, the Literary Digest begs leave to point out it has served as the voice of the people in this great issue. “In 1924 it forecast the election of Calvin Coolidge as President with a margin of error of less than 2 per cent. “In 1928 it was 95.6 per cent correct in revealing that Herbert Hoover would defeat Alfred E. Smith and that the ‘solid south’ would be scattered. “In 1932 it was 99.6 per cent correct in forecasting the electoral vote for Franklin D. Roosevelt and 38.89 per cent correct in forecasting the popular vote. “In view of thiff record and with

KntiT- i! ns second Class Matter at l’"sto|Ti(-e, Indianapolis

HISTORY was made today, when, after more than five years as the daily helpers of federal agents in enforcing the prohibition law of the nation and state. Sergeant John Eisenhut and his squad today turned to regular police duties. Their last activity as assistants of dry agents occurred Wednesday afternoon when they visited the federal building with alcohol cans, a gun and parts of a still seized in a raid the first of the week, before signing of the Wright dry law repealer. The photo shows the trio mounting the federal building steps. Eisenhut, patrolmen Otto Fulton and Joe Stutesman have a long list of dry raids on their record in the last few years. Before being assigned to the federal job, Eisenhut operated the city police booze squad a year. Under the new system, with the squad removed, federal officials will receive co-operation, when needed, from local police in enforcing the national dry law.

WIDOW ACQUITTED IN ‘GHOST’ TRIAL Accused of Bombing So Mate Could ‘Haunt’ Spot. By United Press CHICAGO, March 3.—Mrs. Ella Hopkins, 53-year-old widow, and Dr. Lester J. Offner were acquitted on Thursday night on charges of bombing the gasoline station of William Lambert so that Mrs. Hopkins’ husband’s ghost could haunt the spot. Mrs. Hopkins testified that her husband before he died had told her not to sell the Hopkins home or he would haunt her. She said that Lambert made her drink wine, and then sign a receipt for SIOO as an initial payment on the Hopkins home. The widow, who said her life since selling the place had been a ‘living hell,” because her husband’s ghost haunted her, said she wanted to buy the place back, and when Lambert refused, she and Dr. Offner hired James D. Milto to “punch Lambert in the nose, and give him a couple of black eyes.” Both Mrs. Hopkins and Offner denied mentioning any bombing. De Milto is awaiting trial. SUPPLY BILL PASSED $31,000,000 Deficiency Measure Approved by Senate. By United Press WASHINGTON, March 3.—The senate today passed the $31,000,000 second deficiency bill, last of the regular annual supply bills for the present session. Conference reports on several appropriation bills, however, remained for consideration before congress adjourns.

the results of the 1932 prohibition poll in mind, it would seem that the drys would be unable to get more than one or two states to vote against ratification of repeal.” Analyzing sentiment in the sixteen states where the drys will wage their most vigorous battles, the Digest article points out that in its 1932 poll the straw ballots of Kansas showed a dry percentaage of only 50.23, and North Carolina, 50.05. whereas the wet percentages in the fourteen other states were Oklahoma, 54.8; lowa. 63.4; Georgia, 63.8; Utah, 69.6; Nebraska, 62.9; Kentucky, 67.4; Tennessee, 51.6; North Dakota, 76.5; South Dakota, 69; New Hampshire, 68.9; South Carolina, 60; Alabama, 55.4; Mississippi, 56.2, and Florida, 74-.0.

HOME EDITION PRICE TWO CENTS Outside Marion County, 3 Cents

Capture of Chengtehfu by Saturday by Nipponese Is Predicted. SHANGHAI REGION TENSE Conviction Grows Troops of Mikado Will Extend Conquest Region. By United Press PEIPING, March 3. Heavy fighting westward of Lingyuan Thursday cost the lives of three Chinese regimental commanders and 1,500 regulars, Chinese military; headquarters announced today. Near Jehol Capital By United Press TOKIO, March 3. Japanese troops, driving against Chengtehfu, capital of Jehol province, entered the town of Pingchuan, thirty-five miles east of their goal, at 12:30 p. m., it was announced today. Japanese commanders reported to the war office that they expected to reach Chengtehfu by Saturday, „ Previous messages had predicted success by March 10 for the six Japanese armies now converging on the Jehol capital. The report from Pingchuan indicated that the attackers were far ahead of their schedule, and that the Chinese defenses had fallen more rapidly than expected. An immediate attack on the last Chinese defenses before Chengtehfu was expected, according to dispatches from Chingchow. The Jehol capital was reported in confusion, with Governor Tang YuLin and other high officials preparing to evacuate. Worried in Shanghai By United Press SHANGHAI, March 4.—(Saturday)—General tenseness was evident today as the conviction grew that Japanese forces invading Jehol would not stop at the Great Wall, but would push into China proper, endangering the Peiping and Tientsin areas. It was rumored here the Chinese nationalist government was considering moving its capital from Nanking to Shangshai. Japanese warships were reported searching Chinese vessels off the mouth of the Yangtsze. Chinese residents feared possible attacks on Shanghai and Nanking should Japanese warships move up the river when troops cross the Great Wall. Chinese to Resist By United Press NANKING, China, March 4 (Saturday).—General Yuh Sueh-Chung, commander of the Tientsin garrison, today refused a third Japanese request that Chinese troops evacuate the area immediate south of the Great Wall, the Chinese Nationalist government announced today. His refusal was supported by the foreign office,. which indicated China would continue its opposition to Japanese advances in Jehol and fight “to the last ditch” to prevent Nipponese armies from crossing the wall into China proper. Fight Counter-Attack By United Press TALICHIATUNG, WITH THE JAPANESE ARMY, Jehol, March 3. —The Japanese army today was menaced by counter attacks on its tenuous positions along the main roads to Chengtehfu. The main advance upon the capital of Jehol was halted temporarily while the army’s present position was consolidated and supplies were brought up to the front. A counter-attack on Chihfeng failed, according to the high command, the Japanese were stemming a determined coui.cer-as-sault on the city of Lingyuan, half way between Chaoyang and Chengtehfu. Hourly Temperatures 6 a. m 32 10 a. m 34 7a. m 32 ll a. m 35 Ba. m 33 12 (noon).. 38 9 a. m 33 1 p. m 38

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