Indianapolis Times, Volume 44, Number 312, Indianapolis, Marion County, 10 May 1933 — Page 7

MAY 10, 1933

PATRONAGE TIES M'NUTT DOWN, FARMERS TOLD Governor's Time Taken Up by Partisan Matters, Says Union Head. By Timm dprrinl AMBIA, Ind., May 10.—Benito Mussolini, dictator of Italy, atd Governor Paul V. McNutt were compared here today by Robert Catherwood, president of the Farmers’ Union of Benton and Warren counties. committed to a campaign for lower taxes and a moratorium on fcreclousre of farm mortgages. Recalling a visit to the Governor s office last week by a delegation from the union, Catherwood, who was a member of a party of tourists which visited Mussolini a few years ago said: Both appointments were for 2:30 p. m„” Catherwood stated. "Mussclini kept us waiting five minutes; McNutt, two hours and forty minutes.” ‘‘McNutt Less Fortunate” rho private offices of both were magnificent and costly,” Catherwood continued. “Mussolini, having only great, affairs to d”al with and no patronage whatever, maintained an atmosphere of dignity and calm in his antechamber. Dapper and soft, footed secretaries passed and repassed from his room to a green baize door behind which the muffled clatter of typewriters w’as heard. His strength and time obviously were devoted to high matters. “McNutt seemed less fortunate. Ferspiring secretaries and stenographers of both sexes and colors rushed about, and passionately were claimed as schoolmates, fellow townsmen and relatives by members of the crowd who just must see the Governor. The place had the atmosphere of a Kilkenny fair. Time Taken by Patronage “His strength and time obviously w'ere taken up by questions of patronage.” Catherwood concluded: “There is, indeed, a vast difference between a dictator who dictates and lifts a prostrate nation to its feet and a Governor with dictatorial powers, who, for partisan reasons, is not oermitted time to dictate, but is compelled to let things go on much as they have been in the past.” TWO TO BE AWARDED LIFE SAVING MEDALS Railway Lineman and Utility Employe to Be Honored. Life saving medals were to be presented at 2 today to Albert Farmer, of Terre Haute, Indiana Railroad employe, and Newton Wray, of Frankfort, employe of the Public Service Company of Indiana, by John N. Shannahan, president of the Midland Utilities Company. Farmer, a railway lineman, saved Harry Sumner, 4, of Terre Haute, from drowning July 31, 1932. Wray was cited for heroism for saving the life of Isome Reeder, overcome by gas while working on a Frankfort Main, Aug. 15, 1932. Shannahan also was to present a bronze plaque to Phil H. Palmer, the company’s division manager, in connection with an’accident prevent contest. Palmer’s division, wuth 217 employes, operated a year without an accident. Second prize went to the Newcastle division, headed by P. A. McLeod, and third to L. A. Gutting of Shelbyville. STOLEN GEMS FOUND HIDDEN IN JAIL WALL Two Stones Worth 51,750 Are Part of Montezuma Loot. Two diamonds were brought to Indianapolis Tuesday by Claude Dozier, state criminal bureau investigator, who recovered them from the brick wall of the Sabetha (Kan.) jail. The stones, valued at $1,750, are part of the loot taken from W. P. Montgomery, Montezuma banker. A wedding ring, set with diamonds and valued at $350, was brought from a Louisville (Ky.) pawnshop by Karl Burkand, bureau chief, Monday. Four diamonds still are missing, he reported. William C. Pearman, his wife, Effie, and Mrs. Louise Jackson, all of Terre Haute, are being tried for the jewel theft and other crimes at Rockville today. Democratic Club to Meet Riverside Democratic Club will meet at 8:15 tonight at the Olympic Club, corner of Pruitt and Riverside drive. Speakers will discuss repeal of the eighteenth amendment. The Sahara Grotto glee club wilj be on the program.

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CORD MAKES CASH GROW FAST

Genius of Auburn Car Goes After Money With Energy

In the aviation and automobile Industries during this past twelve-month no name has been mentioned more prominently than that of Erret Lobban Cord. How this young man of 38 succeeded in creating wealth while so many business men were muddled by the economic disaster about them George Britt tells in this fifth of six articles on depression fortunes. BY GEORGE BRITT Times Special Writer NEW YORK, May B.—Erret Lobban Cord, the foresighted, smallish young man of 38 who stirred up a battle last fall and took the Aviation Corporation away from a powerful group of New York bankers, has been too well acquainted with money for a long time to be caught unprepared when inflation came. Money he has gone after with a mad energy. But not without appraising it, realizing the symptoms of its health, understanding its limitations. So it was that in August, 1931, he bought a surplus of rubber, selling then at 3 cents a. pound. It is around 5 cents today. Last fall he bought for his Lycoming Manufacturing Company, instead of a usual consignment of a few carloads of scrap steel, a great pile of 50,000 tons. The price was $4.25 a ton. Now it is $6.50. Other commodities he has been buying include: Several million ounces of silver, then 27 cents, now 37%; several million bushels of wheat, then below 57 cents, now about $1; $200,000 worth of hides, then 34.50, now around $10.70. Also sugar, cotton and tin. The general weighted price index, based on thirty commodities, has

In the aviation and automobile Industries during this past twelve-month o name has been mentioned more prominently than that of Erret Lobban Cord. low this young man of 38 succeeded in creating wealth while so mary business ten were muddled by the economic disaster about them George Brill tells in W yj)P|jHwyWK p lr , his fifth of six articles on depression fortunes. v-. Times Special Writer i •' ii; TEW YORK. May B—Erret Lobban Cord, the foresighted, smallish t N young man of 38 who stirred up a battle last fall and took the Wt ' iation Corporation away from a powerful group of New York bankers, Wf / s been too well acquainted with money for a long time to be caught jj J Trlv&ißlm prepared when inflation came. _ 1/ if h Money he has gone after with a mad energy. But not without ap- te;i it rising it, realizing the symptoms of its health, understanding its limi- jj bought for his Lycoming Manufacturing Company, instead of a usual L WMajm nsignment of a few carloads of scrap steel, a great pile of 50,000 tons. \ 'L* W: I * le price was $4 25 a ton. Now it is $6.50. ” '1 } Other commodities he has been buying include: , Wg *. . fr s . Several million ounces of silver, then 27 cents, now 37*2 1 several \ ilhon bushels of wheat, then below 57 cents, now about $1; $200,000 ? Bp’fHk g * iMlllv /•? >rth of hides, then 34.50, now around $10.70. Also sugar, cot- lefH ./■ f *** ■scim’mfc •#, 1 ? " andtm - 4Pm 4 mKm Th, fM.nl 1 pr„ ipo,pi., ... u.in, .1... I.ti t I Cud, ....... ..j.pd. || P—. Cud ve attained a valuation now 6 of u himself spends much c .ween $10,000,000 and $12,000,000. j his time in an airplane, bi IUT in position, he steadily has I *y,l possible at his home near Los An has done- I ' W ' XfffTn . He goes in for dogs, a police do . ... , , .... —a and a couple of wire-hairs, so

E. L. Cord’s fortune extends from one end of the automobile industry to the other end of the aviation business. gone up during the last month from 72 to 85. Correspondingly, the Cord holdings have gone up. He put in between $7,000,000 and $8,000,000 of money, which had been shrinking, and the commodities he bought have attained a valuation now of between $10,000,000 and $12,000,000. a a a BUT in position, he steadily has gone ahead. These are things he has done: He made himself master of Aviation Corporation, one of the “big four” lines of the industry. And in buying up stock to around 900,000 shares to acquire control, he paid much less than half the quoted price today. He had his best year as an automobile manufacturer in the very midst of the hard times. That was 1931, when Auburn sold 35,000 cars, or 10,000 higher than its previous high. True, 1932 was a bad year, and 1933 has not been better. Earnings of the Cord Corporation reached its high mark in 1932, 65 cents a share, and in March it declared its first dividend in history, 10 cents a share, quarterly. By various methods, including the convenient one of bookkeeping, Aviation Corporation for the first auarter of 1933, under Cord management, was made to show a deficit of only $57,000, as compared with $823,000 for the first quarter of last year. And in March the corporation reported the fii'st net profit in its history, $14,800 for the month. Cord was an extremely rich man when the depression struck in 1929, yet his wealth, nevertheless, is a depression fortune. He laid its foundation under the favoring opportunity of an automobile industry slump ten years ago. a a a THAT is one of the ways a skillful money man can preserve and increase his wealth, regardless of the times. These purchases tvere not made in his name only. In the late summer, 1929, he organized the Cord Corporation, a holding company to unify the fifteen various automobile, aviation and associated concerns which he controlled. After more than three years of depression its last annual statement shows $7,000,000 of assets in cash and government securities. In addition to part of the corporate funds, he invested some of his own money in commodities, and that of his partner, L. B. Manning. It was the intention to put a third or half of their ready money in a form beyond risk of inflation. E. L. Cord has weathered the depression, so far as external eye may judge, about as well as he came through the prosperity. It was reported in 1929, indeed, that he had a chance to sell out for $30,000,000, and such a price doubtless w r ould be a romantic fancy today. a a a MOTORS alwys delighted and appealed to him. He rigged up his own rebuilt speed car about twenty years ago and raced, among other places, on an old dirt track at Tacoma, Wash. Years later he and his partner. Manning, were telling stories and realized that they had driven one another in the same race on Fourth of July and Cord’s car had dropped out half through the 500 miles. He made almost his first money buying up Fords in the Los Angeles

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EVANS' EWE FOR ALL PURPOSES

junk piles for SSO apiece, building and painting a “bug” body on them, and reselling for SI,OOO. But' it was 1924 when he actually went into automobile manufacture, after being himself an automobile salesman. His friend Manning, who went with him, had been a customers’ man in a bond house. “I noticed him because he was so kiddish in appearance, and because he always made money while other customers lost,” said Manning the other day. “They would buy 1,000 shares on margin. He bought 100 shares at a time outright. And he never was squeezed out.” Automobiles were not doing so well in those years, 1922, 1923 and 1924. Indiana was full of factories which had gone out of business or were nearing bankruptcy. Cord looked over the field and decided the best chance was Auburn. tt tt tt 'T'HE business counted about sl,500,000 assets, including obsolete inventory outmoded bodies, fenders and parts—for fully half the value. It owed more than $600,000 on notes to Chicago banks. Cord went in as general manager, having an option to buy, and in late summer, 1924, he swung the purchase for less than $50,000 cash. In eight months he worked off all the old inventory. His experience in car doctoring at Los Angeles helped with that. He tinkered up the old shapes into the weirdest Auburns ever seen in America, shoved them out at fire sale prices, and before long was square with the banks. In January he brought out his first real Auburn, a direct contradiction and challenge to every prevailing style. It had perhaps the first straight-eight motor in any automobile. It was low, heavy, powerful. People talked about it and they bought

am W not Is it mode w? Do you remember all of the claims that ™ have been made about smoking tobacco—how it was that one was this and that one was that? After all, what you want to know when you get a thing for a certain purpose is, A semibte "Was it made for that?” package Everything about Granger is made to 10 cents fit a pipe. Folks seem to like it. ’ * •••1 * © 19JJ, Liggstt & Myers Tobacco Cos,

; THE INDIANAPOLIS TIMES n

5,000 of them that year. Within a year after taking control of the plant Cord cleared $265,000 net. And so he was on his way. Other companies fell into his hands Lycoming Manufacturing, one of the largest independent makers of motors; Duesenberg, making the mast powerful, one of the fastest and most expensive passenger cars in America, favored by former Mayor Walker; Stinson Aircraft and a double handful of other companies. The young man took to aviation first as a quick way to get around to his scattered factories. Then he learned to fly. Then he began making airplanes, throwing a panic into the business by developing a 200-horse power engine that sold for less than $5,000 instead of the usual $14,000. And then he started his own independent air transport line. an tt 'TiA'EAN WHILE his stocks were I-*-®- proving jackrabbits on the exchanges, making and losing huge sums overnight for speculators, giving the most spectacular kind of advertising to his cars and planes. His first listed stock was Auburn Auto, placed on the Chicago Stock Exchange Aug. 24, 1925, making its first sale of 300 shares at a price of 32. Inasmuch as the stock sold over the counter only a year before at $2 it was not a bad price. But Auburn was to stage performances as a mature stock much farther from any rhyme or reason. It ranged in 1930 from 60% to 263% and in 1931 from 84% to 295%. Yet Cord himself, it is seriously asserted, never has had a stock ticker in his office and never had a private telephone line to any brokerage house. And the same goes for his partner, Manning.

Erret Lobban Cord Cord has come to be associated more and more closely of recent years with that elder statesman of Wall Street, Frank A. Vanderlip. The latter is one of his warmest friends and advisers, and when the board of Aviation Corporation was revised Vanderlip went in as a director. tt tt tt himself spends much of his time in an airplane, but puts in as many days a month as possible at his home near Los An-’ geles, at Balboa Beach. He goes in for dogs, a police dog and a couple of wire-hairs, for horses, and, most enthusiastically of all, for a small speedboat. In that he takes a kiddish pleasure in turning sharply in rough water and giving the back seat passengers a drenching in spray. Next—Sam Zamurray and United Frut Company.

Gone, but Not Forgotten

Automobiles reported to police as stolen belong to: E. L. Shaver Company, 400 North Capitol avenue, Hupmobile sedan, from rear of 400 North Capitol avenue. James Harrison, 3805 East Thirty-first street. Chevrolet roadster, 45-245 from Ohio and Delaware streets. Philip J. Gaito, 430 South New Jersey street, Ford roadster, 30-585, from 2900 Riverside drive. Walter A. Perkins, 5965 West Minnesota street, Ford sedan, 26-853, from Senate avenue and Washington street. Leonard McCleaster, R. R. 1, Box 474, Chevrolet roadster, 123-238, from Hunter and Prospect streets. Burl Williams, 23 North New Jersey streets, Chevrolet coupe, 129-365, from 100 South California street.

BACK HOME AGAIN

Stolen automobiles recovered by police belong to: W. L. McClain, 1651 Hoyt avenue, Ford truck, found at Merrill and Illinois streets. Estella Creagh, 1116 North Pennsylvania street, Chrysler sedan, found in rear of 338 Blake street, stripped of tires and battery. Emma Lisman, 2330 North Dearborn street, Chevrolet sedan, found at Thirtyseventh and La Salle streets. Hoosier Oil Company, 1302 East Thirtieth street, Dodge coupe, found at 322 Eastern avenue with bullet hole in body. J. Meyer, 700 Sanders street, Chevrolet coach, found at 1117 South State avenue. Royal Scot Not to Come Here The Royal Scot, famous British train, will not be shown in Indianapolis, May 26, en route to the Century of Progress fair at Chicago, opening date of which has been changed from June 1 to May 27. The change was made due to inability of President Roosevelt to be in Chicago on June 1.

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