Indianapolis Times, Volume 44, Number 313, Indianapolis, Marion County, 11 May 1933 — Page 1

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STATE BANKS TOLD TO BUY STOCK IN NEW INSTITUTION * Attorney-General Declares They Have Right to Make Purchase; Civic Leaders to Help American National. PLAN BRINGS JOY TO THOUSANDS Reorganization Move Must Be Approved by Depositors; Impetus to Business Is Forecast. (Other Details on Fare A) Authority for state banks holding deposits in the Fletcher American National bank to subscribe for stock in the new American National bank, which will assume assets of the old bank, was jjiven today by Philip Lutz Jr., attorneyKeneral. Lutz’s statement j?ave encouragement to business and civic leaders, who today began arranging for concerted steps to aid the bank in carrying out requirements set by the Reconstruction Finance Corporation.

Times extras late Wednesday afternoon announcing the government’s formal approval of the reorganization plan to save the Fletcher American hank structure brought joy to depositors whose funds have been impounded since Feb. 25. The announcement also was good news to civic-minded nondepositors, who realize the benefits to the entire city and state in saving one of the city’s largest banks. 50 Per Cent May Be Freed Under the plan, unrestricted deposits made after Feb. 25 will conEvery citizen has an interest in the welfare of the new American National bank. Read the editorial on Page 10, tinue to be available for depositors, and 50 per cent of the impounded balances will be available as soon as the plan is consummated. The other 50 per cent will be paid upon liquidation of the present non-liquid assets of the former institutions. The new American National bank, which will occupy the old Fletcher American quarters, will start out on a 100 per cent liquid basis. No Security Link* The new institution will have a romplete trust and safe deposit service, but w-tll have no security connections. The R. F. C., under the plan approved. will subscribe a $1,800,000 preferred stock issue of the new bank, and will loan $1,200,000 to the Fletcher American, secured by $lO,670.000 “slow assets,” collateral. The bank, for its part, must raise $1,000,000 in common stock, and surplus and undivided profits of SBOO.000, the government thus matching dollar for dollar the amount invested by Indianapolis shareholders. , The government will name a conservator when the plan finally is approved. Lutz declared he not only thought state banks with Fletcher American deposits have a legal right to subscribe for stock, but that he believes it is their duty to the new institution o help it enter upon its new plan of safey and permanence. Co-operation Is Urged “State banks have the right to make certain investments out of thPir assets, and good banking judgment should dictate a policy of cooperation and assistant to the new bank.” he said. “Any bank which helps the new bank will be helping itself, and thereby the business situation of the entire state. “This department will lend its approval and encouragement to reasonable investments in the new bank, feelig secure in the conclusion that with improved business conditions which definitely are here, the stock purchased will find a ready free market in the near future, without loss, and with the prospect of a potential profi to the subscribing insitution. “Every business man and institution in the Indianapolis area should lend financial and moral support to this very important banking institution.” Working all night Wednesday, an organization committee oi six members immediately started efforts to consummate the plan, preparing let(Turn to Page Two) Times Index Page. Book a Day 17 Bridge 14 Classified 13-16 Comics 17 Crossword Puzzle 18 Curious World 8 Dietz on Science 14 Editorial 10 Financial 13 Fletcher Banking History 8 Fortunes From the Depression—a Series 9 He.vwood Broun 10 Hickman Theater Reviews 15 Radio 15 Serial Story 17 Sports 12 Talburt Cartoon 10 Vital Statistics 13 Woman * Page €

The Indianapolis Times

VOLUME 44—NUMBER 313

Beer Importer's Profit Is Small, Fry Declares 14.5 Cents a Case Is 'Cut,’ Excise Director Says, Deploring Criticism. How the beer business operates under the Indiana control law and who gets the profits was explained today in an official statement from the office of Paul Fry, state excise

director. Noting the criticism that has been levelled at the cut taken by importers, Fry explains that it averages but 14.5 cents a case throughout athe state. From this they must pay warehousing charges, employes, office rent and other overhead expenses the Fry statement sets out. Here are the costs of a case of beer as listed by Fry: F. O. B. brewery, $1,70; freight, 13 cents; state beer tax, 1114 cents; gross sales tax. % cent; license fee, 1 cent; total cost to importer, $1.97. and price to wholesaler, $2,104, Calls Profit Small Without the license fee this makes the importer's profit 144 cents. Fry’s statement then continues. “The average price received by the wholesalers ranges from $2.50 to $2.60, depending on quantity of sales and proximity to point of delivery. “Retailers sell at profits ranging from $1 to $1.10.” Declaring that the public is buying beer at from 12.5 cents to 15 cents a pint, Fry comments that the cost is comparable with other states and lower than some. Surprised at Low Price He said he was surprised to learn that in Chicago today it is being sold on draught at 3 cents a schooner. Governor Paul V. McNutt refused to let the legislature permit draught beer under the Indiana law. In closing his statement. Fry pleads for the importers as follows: “The importer saves the state thousands of dollars by acting as the tax collector on imported beers. Were it not for the fact that all beer sent into the state must go through the hands of the ten imporers, the excise director's office would have to send out a veritable army of auditors to recover the 5 cents a gallon tax fixed by law. “The state is interested intensely in less costly beer. I believe the law of supply and demand will bring down the price.” Indiana beer wholesalers were in closed session this afternoon at the Lincoln. Newspaper men were barred. REACH ESTATE TRUCE Frank J. Prince Releases Rights by Trust Fund. Frank J. Prince, executor of the will of his wife, Mrs. Helen English Prince, today released his rights in a $4,500 fund held by the Fletcher Trust Company and the William E. English Foundation, trustees. By compromise, effected in probate court. Prince agreed to the release on condition (he trustees release their interest on $2,846 of his wife’s estate.

Roosevelt to Ask Swift Action for Revival Bill

BY RUTH FINNEY Time* Special Writer WASHINGTON, May 11.-Presi-dent Roosevelt will recommend to congress enactment of an omnibus public works, trr.de agreement, and collective bargaining bill sometime next week, it was indicated today. Expenditures of $3,000,000,000 for public works, city and state as well as federal, tentatively has been agreed upon. Other details of the bill are being worked out by Labor Secretary Frances Perkins. Senator Robert F. Wagner <Dem.. N. Y.); John Dickinson. assistant secretary of commerce; Budget Director Lewis Douglas; General Hugh Johnson, associate of Bernard Baruch, and Don- \

Showers probable tonight and Friday; not much change in temperature.

U. S. Steel Stock Soars to SSO Mark Up More Than 100 Per Cent From 1933 Low of 23 3-8. By United Press NEW YORK, May 11.—United States Steel common stock today shot up to SSO a share for the first time since March, 1932. It was up 7 4 point from the previous close, and up more than 100 per cent from the 1933 low of 231*, made March 2. In 1932 the stock touched its bear market low of 21 Vi on June 28. Back in 1929 it made its record high of $261.75. ATT EMPTTOKIDNAP STATE GIRL IS BARED Talented Daughter of Terre Haute Contractor Apparent Victim. By United Press TERRE HAUTE, Ind., May 11.— An apparent attempt to kidnap Amy Ann Monniger, 10, daughter of G. A. Monniger, Terre Haute contractor, was revealed by police today. They said two men appeared at Amy's school Wednesday and said they wanted her to appear for rehearsal with an orchestra. She was home at the time and the men disappeared, police reported. The girl is a talerted dancer and filled several engagements in Hollywood, Cal., last year.

SEEK CAUSE OF WIDOinDEATH Woman, Held With Man on Robbery Charges, Is Ordered Freed. Mrs. Emily Watkins, 27, of 1129 North Alabama street, held for the grand jury under $5,000 bond on charges of robbery and grand larceny in the robbery of Mrs. Effie Bull, 55, of 1540 North Meridian street, today was ordered released from the county jail by Criminal Judge Frank P, Baker. Baker issued an order for release of Mrs. Watkins on her own recognizance, after Prosecutor Herbert Wilson and John F. Watkins. Mrs. Watkins’ husband, conferred with him. Meanwhile, stomach and brain sections are undergoing chemical analysis and microscopic examination in an attempt to determine cause of the death of Mrs. Bull. She succumbed at Methodist hospital on Wednesday, thirty-six hours after the alleged robbery and attack in her north side apartment. Dr. William E. Arbuckle, Marion county coroner, announced today after a post mortem by Dr. John E. Wyttenbach, deputy coroner, that Dr. Rollo N. Harger, Indiana university toxicologist, had been called into the case and that forty-eight hours will be required to reach a verdict. The theory that Mrs. Bull succumbed to a chronic heart ailment aggravated by shock was dissipated when Dr. Wytenbach discovered what appeared to be an oedema of the brain. Both Drs. Wytenbach and Arbuckle refused to give their theory as to cause of death, but the former said he did not believe it was heart, disease. Arbuckle explained the oedema could have been paused either by poison or a blow. GIRL, 14, HANGS SELF Strikes Boy While Driving Auto; Broods, Then Ends Life. By United Press CHICAGO. May 11.—Pretty 14-year-old Marie Bode, a high school student in a western suburb, brooded through a sleepless night because she had struck a 7-year-old boy on a bicycle with her automobile, then hanged herself in her bedroom today when her mother went to visit neighbors.

aid R. Richberg. counsel for the Railway Labor Executives’ Association. Meantime Secretary Perkins is on record as favoring enactment of a thirty-hour week-minimum wage bill, apart from whatever plan finally is formulated for industrial rehabilitation. She made this position known in a letter to Chairman Connery of the house labor committee, urging that the short work-week-minimum wage bill “should not be combined with the licensing of plants, control of industry, suspension of the antitrust laws and taxing of imports.” In spite of this, the labor committee reported a bill for licensing of plants and taxing of imports, and (Torn to Page Two) i:

INDIANAPOLIS, THURSDAY, MAY 11, 1933

‘KIDNAPERS’ OF LINDBERGH BABY ARE NAMED BY MEANS IN TRIAL

FIRE ENGINE EXPERT ENDS HIS OWN LIFE T. R. Johnstone Shoots Self as He Stands Before Mirror in Home. (Picture on Page Two) His health broken, Thomas R. Johnstone, 69, of 4243 Broadway, nationally known fire equipment expert, stood in front of a mirror early today in his bedroom and killed himself with a bullet through the head. Mr. Johnstone had been in failing health for the last five years and, last summer, accidentally was poisoned by carbon monoxide gas fumes in the garage at his home. He was revived by the first test of the inhalator, now in use by the fire department rescue squad, which Mr. Johnstone had sold to the Indianapolis fire department'. Threatened Suicide His health had been impaired, however, since that accident, according to members of the family, and he had threatened several times to end his life. Former fire chief in Crookston, Minn., Mr. Johnstone was connected with the American La France Fire Equipment Company, Chicago, and several similar firms, and was reported scheduled to receive a state fire inspector appointment. Noted Horse Show Judge He was noted as a horse show judge and has acted in that capacity at several Indiana fairs. Mr. Johnstone is,survived by the widow, Mrs. Jeanette Johnstone, seven children and nine grandchildren. The children are Mrs. Jesse Byram and Miss Grace Elizabeth Johnstone of the Broadway address; Thomas G. Johnstone, Detroit; Mrs. E. B. Anderson and Miss Nellie R. Johnstone, Chicago; Charles J. Johnstone. 3606 Balsam avenue, and Mrs. Agnes Nickel, 936 North Drexel avenue. Prominent as Mason He was a thirty-second degree Mason and, in addition to his affiliation with that order, was a member of various other organizations. Masonic affiliations include the Mayfair lodge, Chicago, Scottish and York rites, the Shrine and Knights Templar. He was a member here of Nettie Ransford chapter, Order of the Eastern Star, and of the White Shrine of Jerusalem; Marion Camp, Modern Woodmen of America, past president of the Caledonian Club of Indianapolis; a member of the Fraternal Order of Eagles, and of the St. Andrews Society, Chicago. Served In World War Service as fire chief of Crookston, Minn., led to his election as a president of the National Firemen's Association. He was a member of the Pacific Coast chiefs and dominican firemen's organizations, and of seven state organizations, including Indiana. He was a past president of One hundred twenty-second Field Artillery Auxiliary Association, and had served as a vice-president of the World War Federation of Auxiliaries. During the World war he served the British and Canadian recruiting service in Chicago. Funeral arrangements are not completed, but services, which will be private, will be held at the home. CHICAGO COAL YARD STRIKE IS AT END Regarded as Defeat for RacketControlled Labor Unions. By United Press CHICAGO. May 11.—A strike in Chicago’s coal yards, ordered Monday by the Trucking and Transport Company, reputed racket-controlled labor organization, was due to end today with 3,000 teamsters and hikers returning to work. End of the strike was regarded as a victory for the Chicago Coal Merchants’ Association and recognized union groups. Murray Humphries, public enemy No. 1. was the purported leader of the Trucking and Transport Company. Hourly Temperatures 6 a. m 60 10 a. m 65 7 a. m 61 11 a. m 71 Ba. m 62 12 (noon).. 72 9 a m 64 1 p. m 74

Last Call Every woman in the city interested in better meat cooking, more intelligent choices of meats and economy in meat use buying should attend the last session of The Times Meat Cooking School, conducted by Miss Ruth Chambers at the English theater tonight at 7:30. Miss Chambers, at sesssions Tuesday and Wednesday, and again this afternoon, has taught hundreds of women things they never imagined about cookery. Be there tonight and you’ll find your time profitably spent. Remember, English’s theater, at 7:30 tonight.

THROWS LIGHT ON ABDUCTION CASE

Haft.

Gaston B. Means, who testified today in his trial at Washington that he knows the kidnapers of the Lindbergh baby. Meyer-Kiser Bank to Pay Only 25 Per Cent, Is Word Depositors to Suffer Substantial Loss, Is Prediction of Garvin, Receiver. BY JAMES A. CARVIN Times Staff Writer Prediction that the thousands of depositors of the Meyer-Kiser bank will receive approximately 25 cents on the dollar of their deposits was made today by Thomas E.

Garvin, receiver. Garvin exhibited the report made by the state banking department prior to placing the bank in receivership, in which it is estimated that total assets of the institution are $542,806 to meet liabilities, including deposits, totaling $2,196,000. “Although it can not be said definitely at the present time what the depositors will receive, it is apparent from the banking examiner’s report that there will be a substantial loss.” Garvin declared. Since assuming the receivership May 4, Garvin said he had been told by numerous depositors that former officials of the bank had declared the bank would pay out in full. Information From State Depreciation in the market value of stocks and bonds, which represented the major assets of the bank, is the reastn for the shrinkage in the assets, Garvin declared. “The information which I have, to date, on the finaniial condition Is from the state banking department,” Garvin said. “I will complete my own analysis of the situation as soon as possible and file a preliminary report in circuit court. “It munst be realized that on the face of the report, a ratio of twen-ty-five cents on the dollar is indicated, but that further shrinkage in assets or the necessity for paying a large amount of preferred claims probably will cause further loss to depositors.” Liabilities at $2,496,000 According to the examiner's report .the total liabilities were listed at $2,496,000, but $300,000 capital stock was deducted by Garvin in his calculation. Garvin also is serving as attorney for Oren S. Hack, receiver of the City Trust Company and the Washington Bank and Trust Company. As attorney he filed a monthly repor tfor April in circiut court for both banks, being handled by Hack. “Since my resignation from the municipal court bench on May 1, I have been associated with Hack in the receiverships of these two banks,” Garvin declared.

Flood Peril Growing in State; 37 Kokomo Families Forced From Homes

With thirty-seven families forced from their homes at Kokomo by flood waters of Wildcat creek, flood conditions will prevail in upper reaches of the White and Wabash rivers, it was predicted today at the local weather bureau. Rainfall during the first eleven days of May reached a total of 2.5 inches in Indianapolis, which is 1.28 inches above normal. Thus far this year, the fall here has been 16.78 inches. 2.27 above normal. During the twenty-four-hour period ended at 7 this morning, rain ranging from more than an inch to 4 inches at Kokomo was reported from various points in the state. In addition to routing of the Kckomo families from their homes, high water elsewhere in Howard

JAPAN FLIERS BOMBROSPITAL Five Chinese Soldier Patients Are Killed in Raid Near Peiping. By United Press PEIPING, May 11.—The Rockefeller Foundation field hospital at Chichow was bombed by a Japanese airplane today. F’ive soldiers and patients were killed, and a number of others were wounded. Chichow is east of Peiping, in the line of advancing Japanese troops westward from the Luan river triangle. Heralding the long expected Japanese invasion of Peiping, once capital of China, and still center of a large American population, a Japanese military airplane circled the city, and, before speeding back toward the battle lines between Miyushien and Nantienmen, swooped down to direct machine gun fire at a detachment of the Peiping garrison. Later a Japanese plane scattered pamphlets over Peiping denouncing General Chiang Kai-Shek, head of the Nationalist government, and assuring the Chinese people the Japanese military would assist them in lifting the yoke of militarism. TAX COLLECTOkTs~ WAYLAID: $2,000 TAKEN Held Up While on Way to Deposit Money at Crown Point. By United Press HAMMOND, Ind., May 11.—Don Groves, Hammond tax collector, was robbed of $2,000 today while on his way to deposit the money in the county treasurer’s office at Crown Point.

county inundated farm land and thousands of chickens were drowned. White river is expected to reach a high stage in Indianapolis, but no damage is imminent. At Lafayette, it is forecast the Wabash river will go to seven feet above flood stage, with similar conditions at Terre Haute. Flood stage or slightly higher is expected at Bluffton and Logansport. Reports of storm and flood damage from various sections of the state were received today. Several persons were injured slightly, barns and houses wrecked and livestock killed by a heavy storm which swept a path five miles long and a quarter of a mile wide in a section of Ohio county west of Rising Sun. ,

Entered as Second-Class Matter at Postoffiee, Indianapolis

Ex-Department of Justice Investigator Tells Court He Knows What Became of Money Paid to Uafsie.’ ABDUCTION OF COLONEL PLANNED Prisoner, on Trial for Defrauding Mrs. McLean, Tells of His Negotiations to Become ‘Contact Man.’ By l tiilcd Pro* WASHINGTON, May 11.—Gaston B. Means, declaring that he knew who kidnaped the Lindbergh baby, and what became of the $50,000 ransom paid by Charles A. Lindbergh, testified in district supreme court today that the original kidnap plot called for the abduction of the famous flier himself. Means named as the kidnapers two underworld characters whom he called “Irving Fenton” and “Wellington Henderson.” The former department of justice investigator, a bulky figure in a brown suit, cloaked his testimony with considerable mystery, and in direct examination did not further identify “Fenton” and “Henderson.”

Means was testifying in his own defense. He and Norman T. Whitaker are charged wtih defrauding Mrs. Evalyn Walsh McLean on a promise that they could eect the return of the kidnaped baby. “Henderson told me they planned to kidnap Colonel Lindbergh himself,” Means testified. “They never intended to get the baby. They couldn't kidnap Colonel Lindbergh because he moved too quickly and they couldn't shadow him. Took Baby to Cave “He said they wanted other kidnapers to rise up all over the country after they had kidnaped Lindbergh, and to realize that the biggest men and bankers could be kidnaped.” “They planned to hold Lindbergh for $500,000. “The night the baby was kidnaped, it was carried to a cave which had been used to store illicit whisky for seven or eight years. “Henderson told me he expected Lindbergh to rush out in search for the baby and they would grab him.” Means leaned back in the witness chair and continued slowly, apparently enjoying the close attention with which the seven women and five men ol the jury followed his story. Means said Violet Sharpe, the maid in the Dwight Morrow home, who later committed suicide, kept him informed as to what went on in the Lindbergh home. Probed Andrew Mellon “She didn't know my purpose or object,” he said. During a conference with Mrs. McLean on the night before Emory Land, Lindbergh's cousin, went to New Jersey, Mrs. McLean asked Means why he had been sent to the penitentiary in 1925. “I said to her, ‘Don’t you know?’ ” Means testified. “It was for keeping my mouth shut. “I went because William J. Burns sent me to see Elmer Dover, then assistant secretary of the treasury, and I was given permission to investigate Andrew Mellon for the purpose of having President Harding remove him from the cabinet. “Mellon had shipped over a million dollars worth of whisky to soldiers in France, and when he found he couldn’t sell it, he had it shipped back to this country and put in government warehouses. From there it was stolen by use of false permits. Jim Watson Saw' Harding “Senator Jim Watson saw President Harding about it, and I went to see Watson. Instead of Andrew Mellon who went out. it was Elmer Dover who went out.” Means said on March 7 Mrs. McLean gave him SIOO,OO0 —$50,000 in SIOO bills and $50,000 in S2O bills—which he took home and put away in a safe in the basement. He said Mrs. McLean had agreed to “finance and meet all expenses in connection with the investigation and return of the baby.” "When Justice Daniel O Donoghue recessed court for luncheon. Means’ attorneys were asked if their client would make a positive identification of Henderson and Fenton. j “He’s going to put his finger right on them,” they said.

The Patoka river is out of banks following a cloudburst at Winslow and much farm land is flooded. Carpenters and other building craftsmen heretofore idle are working at Anderson, following damage of $60,000 caused by a storm Tuesday. A track washout caused by heavy rain derailed the locomotive and two cars of a Monon. passenger train early today at Pittsburg, Ind. No one was injured. Trains are reaching Indianapolis from the north by detouring. Cars of the train, due here at 5:10 a. m , which remained on the track were pulled back to Monon and completed the run over a detour. *

HOME EDITION PRICE TWO CENTS Outside Marion County, 3 Cents

The courtroom w r as silent as Means was asked: “Do you know who kidnaped the Lindbergh baby?” “Yes,” Means replied. “Do you know who got the $50,000 which Colonel Lindbergh paid to the kidnapers through Dr. Condon (Jafsie) ?” Recites Story of Deed* “Yes.” Means was asked by his attorney, Edward Tomlinson, to recite the entire story of his actions before the kidnaping on March 1, 1932, and the basis of his belief that he knew the circumstances of the crime. The former justice department investigator testified that an “Irving Fenton” suggested to him in a New York restaurant in February, 1932, that he participated as a “contactman” in a proposed “kidnaping case.” ' Means said he went to a restaurant called “Larry Jones’ place,” at 277 West Broadway, to meet Fenton. He said he wanted Fenton to help him locate a “Wellington Henderson,” who, Means said, was a Communist leader in Detroit. “We’re going to pull a ’napping* case,” Means said Fenton told him. “It s going to be a big thing, with a lot of publicity.” Courtroom Is Crowded Means said he told Fenton he was “not interested,” and desired only to locate Henderson, whom he said he had known since 1928. Means said Fenton then urged him again, declaring the “kidnaping case” might be worth “ten. fifteen or twenty thousand dollars” to him as a contact-man. The jury members sat rigid in their chairs, listening intently as Means proceeded with his story. The courtroom was crowded, with persons sitting on window seats and standing in the aisles. Means resumed, declaring he left New York on Feb. 26, 1932, and re* turned to his home in Chevy Chase, Md. He said he told Mrs. Means what had transpired. “On March 2, 1932,” he said, “I read in the morning papers that Lindbergh's son had been kidnaped. It impressed me very much—the seriousness of it. Negotiated With Lindy “I reached the conclusion that Irving Fenton and Wellington Henderson had knowledge of the kidnaping or an active part in it. I believed they would return the child.” Means said that on March 4. when the baby had not been returned, he went to ex-Judge Marion Devries of Washington and told him that he had valuable information on the Lindbergh case. Means then described his negotiations to get authority from Lindbergh to participate in investigation of the crime, and added that meanwhile he had written to Fenton, telling him to come to Washington immediately. Call From Mrs. McLean On March 4, he said, he received a phone call from Mrs. Evalyn Walsh McLean. “I had no idea what Mrs. McLean wanted to see me about,” Means said. That same day. Means testified, he was introduced by telephone to Col. Robert Guggenheim, friend of the Lindbergh family. Means said he thought Guggenheim could assist him in obtaining authority to investigate the case. Means testified that during a conversation with Colonel Guggenheim on the afternoon of March 5, Guggenheim promised to obtain authority from Lindbergh for Means to take an active part in the search for the kidnapers. In Devil of Situation He said when he returned home, he received a telephone message from Fenton, and told Fenton to meet him in front of Mrs. McLean's home in the city that same night. “I drove to Mrs. McLean’s,” Means said, “and talked to Fenton. I asked him if he had been able to locate Henderson. “Fenton said Henderson was in New Jersey. He asked me if I had seen the papers. He said, ’We’re in a devil of a situation.’ ” Means testified that Fenton told him. “We can’t get rid of that baby, ’ and asked him if there was any way he could dispose of the child.