Indianapolis Times, Volume 45, Number 10, Indianapolis, Marion County, 23 May 1933 — Page 1

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JUDGE ORDERS SUIT AGAINST DANK OFFICERS Cox Grants Permission to Receiver to Demand $1,150,000. CHARGE DISHONEST ACTS Washington Trust Leaders Guilty of Criminal Moves, Is Claim. Permission to file three suits seeking $1,150,000 was granted today by Circuit Judge Earl R. Cox to Oren S. Hack, receiver of the Washington Bank and Trust Company. Grand jury investigation of transactions involving former officials of the defunct State Savings and Trust Company was ordered to begin Wednesday by Prosecutor Herbert E Wilson. Suits which Hack is to file will be based on alleged cjfshonest and criminal acts of directors and officials of the Washington bank, which was closed Oct. 27, 1930. Os the total sought, $1,000,000 would be asked in a suit alleging directors by “omission, commission, malfeasance, misfeasance and nonfeasance" caused loss to the bank. False Entries Charged Among the specific allegations is one that the directors permitted Edward Morris, former president, who died of carbon monoxide poisoning from th° exhaust of his automobile, to negotiate loans with worthless paper as security. They also charged directors permitted false entries, allowed reports to the state banking department w'hich did not disclose the true condition of the bank, and made loans to corporations in which they were interested. Second suit would be based on an Indemnity bond of the Fidelity Deposit Company of Maryland, which was for protection of the bank against loss due to dishonest and criminal acts of officers or employes. Cites Confidential Report Basis of the third suit will be an allegation that $50,000 was lost to the bank through unlawful action of directors in declaring dividends when it is declared the bank did not have net earnings or surplus in sufficient amounts to warrant dividends. The allegations on which the suits would be based. Hack declared in petitions for permission to sue, are based on statements in a confidential report to Brandt C. Downey, replaced as receiver by Hack on the order of Cox. The State Savings probe will center on a charge that $40,000 was carried as an asset of the bank, when in reality it was a liability of the State Property Company, a subsidiary, Wilson said. Bank Statements Probed Bank statements showing notes totaling $500,000 also will be investigated. Wilson declared that the actual total of the notes w'as $700,000 when the statement was made to the bank examining department. Assistance of Mrs. Ida Broo, accounts nt who audited the records at direction of Circuit Judge Earl R. Cox. and the accounting firm of Spradling. Carter A* Jordan, will be asked in presentation of the records to the grand jury, Wilson said. Recommendations of the depositors’ committee of the closed Belmont State bank will be submitted at a meeting to b? held Saturday at the Belmont theater. C. A. Klingensmith, chairman, announced today. Action in another bank case today was taken by Superior Judge Russell J. Ryan, who delayed appointment. of a receiver for the Acton State Bank to await outcome of an attempt at reorganization. PAPER CHANGES FIELD Ft. Wayne Journal-Gazette Begins as Afternoon Daily. pii 1 hitfil Prrt* FT WAYNE. Ind . May 23.—The Ft. Wayne Journal-Gazette today began publication as an afternoon newspaper, daily except Sunday, when a Sunday morning edition will be issued. The Journal-Gazette previously had been a daily morning paper. Like more than fifty other Indiana dailies, the Journal-Gazette will depend upon United Press for its telegraph news. GIRL ~ 1 RUNAWAY Disappears, Leaving Note to Mother. Police Learn. -Leaving a note stating she would “rather be in hell than stay at home." Laverne Adams, 1116 Lexington avenue. 16-year-old daughter of a widow, disappeared Mondaynight, according to a report to police by the mother. Times Index Book-A-Day 13 Bridge 6 Broun Column 6 Classified 12 Comics 13 Crossword Puzzle 11 Curious World 11 Deitz on Science 7 Editorial 6 Financial 11 Hickman Theater Reviews 7 Indiana Forest Army Series.... 9 Lippmann Column 7 Obituaries ’. 14 Radio 14 Serial Story 13 Sports 10 Talburt Cartoon 6 Vital Statistics 11 Woman’s Page 8

The Indianapolis Times

VOLUME 45—NUMBER 10

Raid Nets Slot Machine Haul

Upper—Slot machines stand In high disfavor today after the county cleanup Monday afternoon and with city police preparing their campaign today. The photo shows the first machine seized in Monday afternoon’s raids being loaded into a police patrol. Patrolman William Hansford is at the left and George Anderson right. The machine was

Morrissey Defies Court; Wars on Slot Machines Police Chief Declares He Will Seize Every One in City, Even If He Goes to Jail. Defying a circuit court restraining order. Chief Mike Morrissey today commanded a police mobilization to seize every slot machine within the city limits, “even if I go to jail for contempt of court.”

Morrissey issued the order for a new offensive in the slot machine war with the approval of Mayor Reginald H. Sullivan and the safety board and backed by advice from Herbert M. Spencer, assistant city attorney. “Penny slot machines are being placed near schools to get the children's money and I'm going to save Editorial on slot machine evil on Page 6. it for them if I have to go to jail,” Morrissey said today, when he received approval of his plans to clean up the city. “I've been waiting for an order like this for a long time. I’m getting tired of having parents complain to police that their children are losing their school,lunch money with these ‘one-armed bandits.’ ” “Chicago racketeers are bringing machines into the city at the rate of fifteen a day and we've got to act now to put a stop to an intolerable situation,” Morrissey said. First raid by police at the Rector Pharmacy, Fortieth street and Boulevard place, occurred shortly before 1 this afternoon, just as 13-year-old Bruce lowlin won eleven slugs after playing a penny machine. Patrolman Kenneth C. Downes reported that he then played a nickel machine, receiving a nickel and a slug. The Nowlin boy, living at 4626 Graceland avenue. is a pupil at School 43. Warrant will be obtained at once for an arrest in the case. Criticism was voiced openly by city officials because a hearing has not been held by Circuit Judge Earl R. Cox on the temporary restraining order issued April 8, which hait(Turn to Page Three)

Is Grave-Robbery Threat Blackmail? Court Ponders

Does the corpse of a husband re- | main the property of a widow? That was the /involved point of law engaging the Indiana supreme court today as it listened to oral arguments in the appeal of Ralph j Meek. Greencastle, who is alleged to i have extorted S2OO from a widow on j the threat of despoiling her hus- j bands' grave. ,- We are in the business of grave- j robbing and we have an order for a body about the size of your hus- j band's. If you don't want his grave ! robbed, leave S2OO in the red barn j across the street " That was the note Meek is al-, leged to have sent Mrs. Mary Ann 1 Halton. Cataract. Owen county, and j for which he was given a one to j five-year sentence in Owen circuit! court. Property status of the corpse was brought to the high court's attention today by Hubert Hickam. Meek's attorneys, who contended the blackmail law only covers cases in which a threat is made against the body or property of any one. Hickam offered numerous citations to prove that his client can not be convicted of blackmail. H,

Occasional showers probable tonight and Wednesday; cooler Wednesday.

taken from the restaurant of William Sands at Speedway City. Lower—Ten of the machines taken in the wholesale raids being held at police headquarters as evidence . Captain Ed Helm and Sergeant Ed Kruse are at the left and Russell Dean, deputy prosecutor, right.

Buck’s Glad •Always Glad to See Law Enforced,’ is Way Sheriff Puts It.

“f ALWAYS am glad to see any A one enforce the law!” That was the reaction today of Sheriff Charles (Buck) Sumner to the slot machine raids staged by Prosecutor Herbert Wilson outside the city limits Monday afternoon. “Yes,” said Sumner, *Tm always glad to see any one enforce the law. I'm glad the prosecutor can get enough men to enforce the law. I haven't got them.” Sumner pointed out that twen-ty-one men were lopped off the sheriff’s force and he flatly told the county council when an appropriation was not made for his road patrol, that the force allowed him was too limited to police the county outside the city limits. "What’s more,” Sumner charged, “Wilson never came to me with any complaints, and we can’t pay any attention to anonymous phone calls. But I'm always glad to see any one enforce the law.” A1 G. Feeney .state director of public safety, and Captain Matt Leach of the state "police, were callers at the sheriff's office today. “Just dropped in to say ‘hello,’” Feeney said when asked if his and Leach's visit had any bearing on the slot machine cleanup.

“Admittedly, what Meek did should be an offense,” Hickarn told the court, ‘but it can not be blackmail. When Halton died, his body was no more and certainly what remained was not the widow’s property.”

Lippmann Fans Cheer When He Joins Times Staff

HUNDREDS of Times readers have expressed pleasure that Walter Lippmann, famous editor and author, has joined The Times staff of special writers, with his column. "Today and Tomorrow.” Lippmann's books, especially 'Preface to Morals,” are greatly in demand in all Indianapolis 'book stores. Mrs. Arthur Zinker. proprietor of the Meridian Book Shop. 6 East Market street, is especially happy to see Lippmann join the staff of The Times. ‘'For months.” said Mrs. Zinker. "I have clipped his column in the New York Herald-Tribune for a group of people here who have

INDIANAPOLIS, TUESDAY, HAY 23, 1933

IMIS FORCES ARMS ACTION U. S. Victory in Peace Drive Won at Parley in Geneva. BY STEWART H. BROWN United Press Staff Correspondent GENEVA, May 23.—Pressing on after his oratorical triumph of Monday, Norman H. Davis, chief United States delegate to the disarmament conference, forced delegates of the leading European powers to agree today to discuss disarmament at once, leaving discussion of security to a special committee. The general steering commission of the conference, in a half-hour meeting after that of the “big five.” decided to take notice of French claims by discussing reduction of war materials and security on alternate days before the fuil commission. This compromise was aimed at satisfying both the United States and France. The concession was of major importance. Immediately after Davis’ speech Monday in which he offered the history-making United States proposals of co-operation with European nations in event any nations break the peace, France said her security, and that of her allies, must be discussed before actual disarmament. By last midnight, Davis had induced them to agree that while security must be ta.’ved publicly, disarmament should be discussed privately at the same time. The “big five” met today at the (Turn to Page Seven) Today's Short Story Having purchased new living room furniture, Mrs. A. Kipp was faced with the problem of storing or disposing of the old furniture. Calling Ri. 5551, she let a TWA solve the problem. The ad reproduced below appeared but one day under the household column, and more than ten offers were received for the mohair suite. It was purchased by a Times reader for $25 cash. LIVING ROOM SUITE—2-Piece taupe mohair. good condition, reasonable. TA-2557. Cash—A TWA quickly will convert useless articles into ready cash. TWA i Times Want Ads offers lowest rate in city. Call Ri. 5551 or come to Want Ad Headquarters, 214 West Maryland street.

come to my shop daily just to read the column. I am sure his admirers out here will be glad to read his articles in The Times.” nun LUTHER DICKERSON, head librarian of the Indianapolis public libraries, reports that all the Lippmann books are in heavy demand. “We have thirty-one copies of ‘A Preface-to Morals,' in the nineteen branches of the library sfs- | tern.” said Dickerson, “and each J copy is not only out constantly, | but there is a long waiting list. I j would say that he is more in demand than any other contemporaneous author or essayist.”

INCOME TAX EVASION HINTED IN SENATES MORGAN INQUIRY

Baker Acts to Try Freed Bandit on New Charges Judge, Angered by Parole, Moves for Second Prosecution; Alleges Money and Influence Used. Adamant in his contention that “money and influence” thwarted justice in the parole of Malcolm Berger, 21, “toy gun bandit,” Criminal Judge Frank P. Baker today acted to have the De Pauw university student prosecuted on new robbery charges.

REVIVAL DILL GIVENHOUSE Democratic Chiefs Act to Smooth Way for Swift Passage. BY WILLIAM F. KIRBY United Press Staff Correspondent WASHINGTON. May 23.—House Democratic leaders smoothed the way today for passage under strict rules banning amendments, of the administration's business recoverytaxation program, reported favorably Monday by the ways and means committee. The agreement was reached at a meeting between Chairman Doughcon of the ways and means committee, Chairman Pou of the rules committee, and Representative Ragon (Dem., Ark.), Doughton announced that plans for passage of the bill provided that debate would begin Thursday, and a final vote obtained Friday. Earlier, House Republican Leader Snell made known that he had no hope of stopping approval. President Roosevelt’s national recovery bill, bulwarked with a $700,000,000 taxation section to assure the government adequate funds to (Turn to Page Three)

Empty Justice Tom Mooney’s Goal May Be Lost by Refusal to Prosecute.

B United Press SAN FRANCISCO, May 23. Anew fight to exonerate Tom Mooney in the 1916 Preparedness day bombing scheduled to open in superior court today at the trial he has demanded on a long-dormant murder indictment. The last legal barrier was removed late Tuesday when the state supreme court refused to issue a writ of mandate dismissing the seventeen-year-old indictment which charged Mooney with one of the ten bombing deaths. Only a brief trial which may terminate in a directed verdict of acquittal seemed likely in view of the state's refusal to prosecute. Such a procedure, observers believed, may defeat the very purpose for which Mooney demanded anew trial, that he be given a chance to prove, as perjured, evidence which convicted him in 1917. This, he hoped, would bolster his prolonged fight for a pardon. Mayor Sullivan to Capital Mayor Reginald H. Sullivan planned to leave this afternoon for Washington to attend a conference of mayors of the larger cities of the United States Thursday morning on President Franklin D. Roosevelt’s public works bill.

Fall of Peiping to Troops of Japan Appears Near

BY HERBERT R. EKINS United Press Staff Correspondent PEIPING, China, May 23.—The fall of Peiping to Japanese invaders appeared imminent tonight. Reinforcements for the Japanese legation guard already had entered, and begah patrolling part of the city, while General Ho Ying Hing. Chinese war minister, ..announced that Japanese aircraft, artillery, cavalry and infantry had pounded the Chinese defense in the outskirts of Peiping all day long. His communique refuted reports

Dickerson revealed that there was a great demand for “United States in World Affairs” and “Lippmann's interpretations,” two of the author's books. George Parry.owner of Stewart 's book store, declared that Lippmann had been a “best seller” in his shop for more than five years. a a u “T"I7'E sell an average of 250 " * copies of "A Preface to Morals.” annually, said Parry. Sin :e the issuance of the $1 edition. sales have jumped considerably. In the present season—and I might add a very poor book season—we have soid 25 copies

Baker said trial would be on a count other than the one on which Berger was given a year sentence at the state penal farm. Reiterating criticism of Governor Paul V. McNutt’s new state clemency commission, Baker called Detective Roy Peats to discuss filing of new charges against Berger or going before the grand jury to seek anew indictment of r banditry. Berger is alleged to have confessed holding up three filling stations, menacing attendants with a toy pistol. He w r as indicted on only one charge and Baker, accepting his age as 20, sentenced him to a year at the penal farm. Penalty for robbery by persons 21 or over is one to ten years in state prison. Last w'eek, persons of influence appeared before the clemency commission with appeals in the youth's behalf, with the result that he was paroled after serving four months of the year sentence. That was the spark which detonated a blast of indignation from Baker, with the clemency commission as the target. Baker soundly berated the board for what he termed "going behind my back,” and said the parole was an example of w'hat money and influence can do. If Berger had been from a poor family and without influential friends, no such leniency would have been shown him,” Baker charged. Berger’s father, David Berger, operates a women’s wear and shoe store in Columbus, Ind. Persons appearing before the clemency commission included H. Karl Volland, Columbus mayor; Anderson Ketchum, state tax board chairman and state senator from Bartholo(Tum to Page Twelve)

BREAD PRICE GOESJJP HERE Cost of Loaf Is Increased 1 to 2 Cents by Bakeries. Price of bread in most bakeries went up 1 to 2 cents a loaf today as five large baking firms announced increases due to the higher cost of raw materials. Continental Baking Company and General Baking Company, two of the companies to announce increases, quoted the one-pound loaf at 6 cents today, instead of 5, and the pound-and-a-half loaf at 9 cents over its former price of 7 cents. Prices of flour, sugar, condensed milk and other ingredients forced them to raise their prices, bakers declared. WATER APPRAISAL SET Company’s Engineer Expected to Take Stand at Hearing. Second appraisal of the Indianapolis Water Company’s property was expected to be submitted today in the company’s federal court suit to enojin enforcement of the public service commission rate order issued last December. Malcolm Pirnie, New York, second consulting engineer for the company, was expected to testify later today.

of an armistice and confirmed an earlier Japanese announcement of operations by forces on all fronts. The ancient northern capital waited in deep anxiety for another foreign invasion, the first since the Boxer rebellion. A steady exodus of troops and civilians was in progress to the south. Rigid martial law kept the city itself orderly. The Chinese were holding Tungchow under heavy fire, forming a line of defense ten to twelve miles east of the city.

of “The United States in World Affairs,” and fifteen copies of the Interpretations.” The L. S. Ayres & Cos book store reports that it sells several hundred copies of “A Preface to Morals” yearly. Meridian Book shop has sold an average of 80 copies of “A Preface to Morals’’ annually since the book first came from the presses and sales have increased 30 copies a year since printing or' the $1 edition. Thirty copies of the “Interpretations” were sold there last year. The Capitol book store in Meridian street, 1 as sold 40 copies of “A Preface to Morals” since its issuance.

Entered as Second Class Matter at I’ostoffice. Indianapolis

Financial Firm ‘Took Losses’ of $21,071,862 in Preparing- Return, Although They Were Not Actually Sustained, Is Testimony. BANKER SUAVE, CALM AS WITNESS Refuses to Bare Details of Agreements With Partners; Defends House’s Connection With Selling of Securities. BY LYLE C. WILSON United Pres* Staff Correspondent WASHINGTON, May 23—The senate inquiry into the affairs of the world-famous banking 1 house of J. P. Morgan & Cos., revealed today that the firm “took losses” of $21,071,862.94 in preparing an income tax return, although the losses were not actually sustained in the two-day period in 1931 for which the deduction was claimed.

True Morrow Son of Late Senator Most Likely to Succeed, Vote Reveals. A;/ United Prrg* AMHERST. Mass.. May 23. The Amherst college senior “most likely to succeed” is Dwight W. Morrow' Jr., son of the late sentar, according to the annual class referendum. In 1895, as an Amherst senior, his father won the same honor. In that referendum the elder Morrow’s own vote went to an inconspicuous classmate named Calvin Coolidge.

TEACHERS FACE PAYLESS DAYS Tax Collections for School City $1,000,000 Behind, Good Estimates. Indianapolis school teachers wiil work the last eleven days of the present term without pay, it was estimated today as A. B. Good, schools business director, announced tax collections for the school city are $1,000,000 behind last year’s. This sharp decrease in collections, Good said, would make the school city 11% per cent delinquent. The time teachers will serve without pay may be a slittle as ten days or as much as twelve, according to Good. Although the school city is not indebted to its limit, the Indianapolis school board is averse to making a loan out of which the salary shortage could be paid. Many teachers voluntarily have expressed their willingness to teach without pay lather than have the school term shortened. BEGIN REPAIR HERE OF FLOOD DAMAGE Cost May Reach $30,000, County Officials Say. County highway workers, under direction of Bruce Short, county surveyor and road supervisor, have started repair of roads and bridges damaged by recent floods. After surveying all roads, county commissioners today estimated the damage may exceed $30,000. Among the largest repairs will be replacing of a retaining wall at the Eighty-sixth street bridge. Scores of culverts also must be replaced, according to commissioners. Rains also washed county roads, necessitating expenditure of a large sum for gravel. GOVERNOR PROCLAIMS 1933 ACTS AS LAW Promulgates Measures of Assembly; Take Effect Today. Acts of the 1933 general assembly which did not carry emergency clauses or provide for taking effect on a stated date, became effective today on proclamation of Governor Paul V. McNutt. Promulgation followed receipt of notice from Wayne county that copies of the acts had been received. This was the last county to report. The new laws form the largest volume among the books of the general assembly acts since the state was established. ACCEPTS ADVISOR POST Harvard Professor Takes Job Tendered Him by Roosevelt. Bit 1 nited Prr* WASHINGTON. May 23.- 0. M. W. Sprague, former economic advisor to the Bank of England and Harvard professor, today accepted the position of economic advisor to the United Stales, tendered him Monday by President Roosevelt. Hourly Temperatures 6a. m 63 10 a. m 74 7a. m 65 11 a. m 78 Ba. m 69 12 (noon).. 81 9a. m..... 70 Ip. m 84

HOME EDITION PRICE TWO CENTS Outside Marion County. 3 Cents

The inquiry veered to the subject of income taxes near the close of the morning session of the senate stock market investigating committee. J. P. Morgan, himself, suave and calm, was the central figure in a crowded committee room w'hich echoed to more excitement that has attended a senate hearing since the Teapot Dome investigations. During the morning secrets of the operations of the worl renowned banking firm were brought into the testimony. Morgan refused at one point to surrender the articles of partnership under w'hich the firm carries on his business. Defends Private Banking Prompted continuously by John W. Davis, former presidential candidate, who was acting as his chief counsel, Morgan went into statistics of the firm’s business, telling how aggregate assets shrank from $703,909,405.69 on Jan. 2, 1931, to $432,566,788.70 on Jan. 2, 1932. It w'as the absence of a condition figure for Dec. 31, 1930, that led to the income tax question of Ferdinand Pecora, committee counsel. Previously Morgan had been permitted to present a voluntary statement. In 2,000 words the famous banker, a smartly dressed figure in a blue, pin-strike suit, defended private banking and its connection with selling of securities. Lists Directorships He also gave a list of some 200 directorships held by members of the Morgan firm. He defended these connections with some of America’s best-known business houses on the basis of a banker helping and advising his client. In an angry exchange of questions and answers when Sena'or Carter Glass, iDem., Va.), sought to stop the questioning about income taxes. Senator James Couzens <Rep., Mich.), referred to Charles E. Mitchell, former head 6f the National City bank, whose testimony before the same committee led to indictment in New York on income tax charges. Davis urged warmly that income tax matters had no place in the present proceedings. Says Information Private When the information regarding the partnership articles was requested the famous financier complained the information was private. After several references to the partnership articles, Senator Reynolds <Dem., N. C.), forced a showdown. “Have you any objection to providing the articles of co-partner-ship?” Reynolds asked Morgan. "I would greatly prefer not to do so, sir," Morgan replied. That seems to be an inquiry of affairs of the firm and into each of the partner’s individual affairs.” The discussion was interrupted here by the ruling of Chairman Fletcher that the Question of produring the articles would be considered by the commitee in secret session. Morgan’s prefaced statement was a defense of private banking. He asserted that businesses such as the famous one conducted at Broad and Wall streets were an asset to government and the welfare of the people, rather than a harmful influence. He said that while at present there was no demand for capital for industry, “this condition will pass.”

Getting Ahead in Hollywood How do they get that way, these stars in Hollywood? Weil, some of it is luck, some of it is pluck, some of it is genius, and some of it is pull. A lot of them reached the pinnacle mostly by hard work. One of these, for instance, is Sally Eilers. And the same goes for Wallace Beery and George Brent. Others got the breaks, just a little edge, maybe, that started them on the road to stardom. You’ll be interested to know how it all happened, so The Times, in today's Pink editions, starts a series of six stories on “Getting Ahead in Hollywood.” It's written by Dan Thomas, NEA Service and Times special writer, who knows his Hollywood inside and outside. Read the first one today, in The Times Pinks only.