Indianapolis Times, Volume 45, Number 11, Indianapolis, Marion County, 24 May 1933 — Page 1

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TAX REDUCTION PLEDGED WHEN REPEAL COMES Emergency Levies Will Be Abolished, Is Promise of Roosevelt. PLEASED BY N. Y. VOTE President to Support Drive Against Dry Law When Congress Adjourns. BY FREDERICK A. STORM I nited Prrxs Staff Correspondent WASHINGTON, May 24 Emergency taxes will be eliminated if the eighteenth amendment is repealed, President Roosevelt said today. This means, he explained, the automatic abolition of those levies now in efTecl and contemplated, such as the proposed $220,000,000 program for financing the huge public v.orks program. The President, believes that suffieient revenues will accrue as the result of repeal to enable the government, to accomplish this reduction in the tax schedule. Pleased by Repeal Vote Mr. Roosevelt declined to discuss the overwhelming vote for repeal in New York, state, except to remark laughingly that "My home district went wet." The entire resources of the Democratic party are being thrown into the fight for repeal. With full administration backing, Postmaster-General James J. Farley, national Democratic chairman, declared he was sending instructions to every party leader to support and speed up the repeal campaign. Repeal was one of the paramount issues of the party platform. Farley, cheered by the overwhelming wet victory in New York state, was hopeful that repeal would be a reality before the close of 1933. New York was the sixth state to vote ratification of repeal. Thirty-six ratifications are necessary. Vigorous Campaign Planned The Farley announcement is expected to be the forerunner of a vigorous campaign to be launched immediately upon adjournment of congress and one in which President Roosevelt would participate. Beer taxes are rolling in at a rate said to be far in excess of the $125,000,000 annually that was estimated when the law was put into effect a month ago. N. Y. Votes for Repeal By 1 nitcd I‘rcss NEW YORK, May 24.—New York's vote of disapproval of the eighteenth amendment mounted hourly today as an avalanche of wet votes, cast in the state's special repeal election. Definitely joined with the states which already have ratified repeal of the amendment; the belated returns served only to swell the margin of the New York wet victory—approximately 11 to 1. With slightly more than a thousand districts to be heard from, the vote was: For repeal. 1,795,052; against repeal, 166,096; of the state's 8,837 districts. 7.263 had reported. The late returns, in several instances upstate, increased the dry vote, but not to great extent. RECEIVER PROTESTS GIVING MORE DETAILS Curtis Rottger Fights to Prevent Providing Information. Curtis Rottger, former receiver of the defunct City Trust Company, today protested against giving additional information of his receivership. Recently, the Market and New Jersey Realty Company and the Puritan Hotel Company filed a petition in circuit couft, asking that Rottger's final report be made more explicit. Today. Thomas M. Dowling, attorney for Rottger, filed a demurrer to the petition, asserting no advantage can be gained by furnishing more information, that to do so would encumber the record and would be costly, further depleting the assets of the trust. ISSUE THIRD CALL FOR FOREST ARMY RECRUITS No Marion County Men to be Included in Group of 1,186. Third call for recruits for the reforestation army was issued today bv the Governor's commission on unemployment relief. Total men to be taken is 1.185. They will be drawn on quota from Gary. South Rend. Huntington, Kokomo. Richmond and Evansville. No Marion county men will be in--1 luded in this group. Times Index Book-A-Day 15 Bridge 9 Broun Column 4 Classified 14 Comics 15 Crossword Puzzle 13 Curious World 13 Dietz on Science 13 Editorial 4 financial 13 Hickman Theater Reviews 9 Indiana Forest Army Series.. 16 Lippmann Column 5 Radio 6 School Page 12 Serial Story 15 Sports 11,12 Talburt Cartoon 4 Vital Statistics 13 Woman's Pages 8,9

The Indianapolis Times Partly cloudy tonight, becoming unsettled with probably showers Thursday; somewhat cooler by Thursday night.

VOLUME 45—NUMBER It

‘Tree Cheers’ ‘Pooh,’ Says Ed Helm, ‘l’ve Tree Which Sprouts From Chair. “'T'REE growing out of the courthouse spire, indeed, well, what's so hot about that?" snorted Police Captain Ed Helm today, as he dismissed the claims of Greensburg, Ind., to fame for its muchpublicized novelty. • You think that's so much do you?" demanded the captain, growing more heated, giving off a couple of "poohs” and a very derogative "ha.” Why, Ive got a tree growing out of a chair in my yard,” triumphantly offered the captain. At the Helm home at 915 North Chester street is a chair made from unfinished wood. Recent rains have fertilized the wood so that it has sprouts two to three inches long which bear tiny leaves. "Greensburg, indeed." is Captain Helm's dismissal of that Decatur county seat. CHINA'S TROOPS QUIT PEIPING Only Police Maintain Order as Japanese Hammer Near City Gates. BY HERBERT R. EKINS I'nited Press Staff Correspondent PEIPING, May 24.—General Ho Ying-Ching, war minister, ordered all Chinese troops today to evacuate Peiping forthwith, leaving police responsible for order in the great North China) commercial center. The Peiping zone thus was demilitarized by the Chinese as the Japanese armies hammered almost at the gates of the capital. China seeks only a truce to prevent bloodshed in thickly populated Peiping, not a general armistice with Japanese forces approaching the old northern capital. General Ho Ying Ching said as the panicstricken city awaited an expected attack. Japanese artillery banged away twenty miles north and twelve miles east of Peiping, and Japanese bombing planes droned over the city dropping propaganda leaflets, while reports from Tokio and elsewhere spoke of an armistice between Japan and China. Japanese artillery was shelling Changping, Shunyi and Tungchow and Japanese airplanes bombed the Chinese lines twenty miles north of the old capital. Armistice Is Reported By United Press TOKIO, May 24.—A government spokesman announced today that Chinese and Japanese military officials had agreed upon a preliminary armistice under which Japanese troops would refrain from capturing Peiping and Tientsin. STATE MINERS AND PICKETSIN BATTLE Several Men Reported Hurt in Somerville Clash. By l nited- Press PRINCETON, lnd„ May 24.-Sev-eral men were reported injured, none seriously, today in a fight between nonunion workers and pickets at the Somerville Co-operative coal mine. Reports said the miners attacked 150 pickets with clubs and fists. BAN -STICKER FIXING' Strict Enforcement Is Decided on by Safety Board. Strict enforcement of traffic regulations and an end to "sticker fixing," was decided upon Tuesday when the board of safety, on recommendation of Police Chief Mike Morrissey, voted to buy 50.000 '‘stickers'’ I

Baby Girl, 2, Murdered; Body Hurled Into Swamp

By United Press ‘ GARY. Ind., May 24. —A postmortem examination of the body of Mary Carolyn James. 2-year-old daughter of a steel worker, revealed today that she had been murdered, supposedly by a degenerate, and the body thrown in a swamp. Deputy Coroner J. Robert Doty said someone apparently had seized the child, and struck her on the side of the face with his fist. Then, apparently fearful he had

Art Students Rebel When Director Fires Faculty

ANGLING from a utility poie at Sixteenth and Pennsylvania streets, a dummy labeled Mat’’ today signified the opposition of John Herron art school students to their new director. He is Donald M. Mattison, recently named director of the school who Tuesday, fired several instructors, changed the school curriculum and then went to New York. The pupils first had the effigy hanging from a tree near the school. Under orders, tljey moved

NEW DRAFT OF CONSULTATIVE TREATY DRAWN World Powers Change Pact to Conform With U. S. Attitude. SUBMITTED TO PARLEY Measure Provides League Shall Determine Guilt in Disputes. BY STEWART BROWN l nited Press Staff Correspondent GENEVA, May 24.—A new draft for a consultative pact in case war threatens was submitted to the worid arms conference today by Sir John Simon of Great Britain. The draft is aimed at conforming with the attitude of the United States. It proposes that in the event of a breach, or threat of a breach, of the Kellogg pact, either the council, the assembly, or a non-member of the league may "propose immediate consultation between the council or the assembly and any of said parties present at the convention.” Norman H. Davis announced the | United States will undertake to | withhold protection of its own citij ens if they are engaged in activities i which would tend to defeat any acJ tion agreed upon by the consulting j powers regarding a breach of the , peace, provided the United States | concurred in the consultants’ acI tion. Three Steps Provided Simon's draft declares that the object of the consultations shall be: 1. In the event of threatened breach of the Kellogg pact, "to exchange views for the purpose of preserving peace and averting a conflict." 2. In the event of a breach of the pact, "to use its good offices for the restoration of peace." 3. In the event it is impossible thus to rev Store peace, “then to determine which party or parties to the dispute are to be held responsible.” Adopt Wheat Report The draft concludes by stating that the preceding articles "do not in any way prejudice the rights or obligations of members of the league, nor conflict with nor limit the powers and duties of the assembly and the council under the covenant.” The league council adopted a report of its economics committee on the recent wheat conversations conducted by the United States,'Canada, Argentina and Australia, urging that recommendations adoppted should cease when the exceptional circumstances that brought it about disappear. The recommendations of the wheat conferees were to limit production and, if necessary, exports; to liquidate surplus stocks, and to maintain a reasonable import margin in European importing counj tries. MONEY PACT IS SOUGHT Powers Considering Stabilization Plan, Baldwin Intimates. Bit l nited Press LONDON, May 24.—The powers have been considering a currency stabilization arrangement for the period of the world economic conference, Stanley Baldwin, deputy prime minister, indicated to a questioner in the house of commons today. NEW HEAT RECORD IS SETjJ6 AT 1 Year's Mark Established by Climbing Mercury. Tuesday’s heat record of 85 degrees tumbled today, when the mercury touched 86 at 1 this afternoon, anew high for the jear. The temperature at 9 this morning surpassed Tuesday’s reading of 72, by 8 degrees.

inflicted a fatal wound, the slayei beat the girl to death with a rock. There was a deep wound in the back of the head in which rock fragments were imbedded. Mary Carolyn wandered away from home Tuesday forenoon. The body was found in the swamp a half mile from her home in the late afternoon. There was no water in the child's lungs. The child was one of the five children of Mr. and Mrs. Arthur James.

it, this time displaying it on Sixteenth street. A huge imitation padlock adorns the main entrance of the art school. Mattison Tuesday, in announcing his new policies to students, told of the dismissal of eight teachers and also said the water color painting course would be discontinued. Included in the policy revision is 'inauguration of a foundation of teacher training, to be continued in another school thr last two years.

INDIANAPOLIS, WEDNESDAY, MAY 24, 1933

J. P. MORGAN LOANS TO DAWES AND NORMAN H. DAVIS BARED

Her Dad’s Speed King, and She’s Little Queen

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It’s for Earline, 5, That ‘Wild Bill’ Cummings Drives So Fast and True. BY NORMAN E. ISAACS Times Staff Writer "Wild Bill" Cummings, idol of Indianapolis Speedway fans and the driver who will held the pole position when the field lines up for the 500-mile race on May 30, has one wish. He wishes the race would be held on May 13. “I'd be sure of winning then,” says the Indianapolis boy, who once roared around town on a speeding motorcycle as a Western Union messenger and who How' roars down the sLaigiVtuways of the nation's

speedways. For May 13 is the birthday of Earline Ann Cummings, 5-year-old daughter of the famous driver. And on May 13, 1928, the day Earline

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Bill Cummings

Langhorne. She certainly is my good luck charm." Bill, who will drive a Boyle Products Special, the car in which he set anew one-lap two-man car record in the qualification trials last Saturday, was born twenty-seven years ago on Shepherd street in West Indianapolis. "I always had the speed bug,” relates the cheery and handsome speedster. "Why. when I was driv(Tum to Page Eleven) NAMED U. ST SENATOR W. H. Thompson Appointed to Succeeed Late R. B. Howell. By United Press LINCOLN, Neb.. May 24.—W. H. Thompson of Grand island today was appointed United States senator from Nebraska to succeed the late R. B. Howell of Omaha, by Governor Charles W. Bryan. Today's Short Story A five-room furnished house standing idle without any income from it to defray taxes and upkeep is a liability rather than an asset. Mrs. H. B. Titus was faced with just l such a situation. She chose a TWA to assist in locating a desirable tenant. Calling RI. 5551. she inserted a ten-word rental ad Monday. By Monday evening, ten Times readers had offered to rent the furnished house. The cost for the following cne-day ad, which rented the house within a few hours, was only 27 cents. TENTH, E.. 2527—5-room modern: garage; water paid: $5.50 week. CH-4314. QUICK ACTION—For immediate results at the lowest rate of any Indianapolis newspaper, use TWA. Only 3 cents a word. Call RI. 5551 or come to Want Ad Headquarters, 214 West Maryland street.

THE changes came as a surprise to both students and instructors, and was met with silence in Tuesday's meeting. William Forsyth, one of the dismissed instructors, has taught art in Indianapolis for thirty-five years, twenty-five of which have been in the John Herron school. Others dismissed are Paul Hadley. teacher of water color painting and interior decorating; Ethelwvn Miller, a Columbia university graduate, for many years head of the teacher training de-

SEEK GAG RULE ON TAX_BOOSTS House Leaders Attempt to Force Revival Measure Over in Hurry. BY WILLIAM F. KERBY I nited Press Staff Correspondent WASHINGTON, May 24.—The house Democratic leadership today obtained a special rule on the pending business recovery-taxation bill which virtually will force the chamber to accept heavy increases in income taxation on the "little fellows,” with no opportunity for revision of the rates on the so-called "upper brackes.” The rules committee reported a special resolution for consideration of the measure which would bar all amendments from the floor. Debate would be limited to six hours. The bill will come before the chamber of action Thursday. The strategy of the special rule virtually forces the membership, "publican, and Democrats alike, to vote for the bill as a whole. It carries $3,309,000,000 in public work: to be financed by higher income taues on “little incomes,’’ an additional gasoline tax, and a dividend levy. Hourly Temperatures 6a. m 71 10 a. m 81 7a. m 73 11 a. m 84 Ba. m 76 12 (noon).. 85 9a. m 80 Ip. m 86

came into the world, Bill was winning a race at Brazil, Ind., to help buy dainty little things fer the newcomer. "Ive won nearly every race I’ve ever been in on a thirteenth day of the month,” says Cummings. “Just the other day, I ce 1 e brated Earline's birthday by taking down the first money at

Mooney Trial Will End Swiftly , Is Prediction

By United Press SAN FRANCISCO. May 24.—The self-irnposed trial of Tom Mooney, former labor agitator, on a charge ot murdering one of ten victims in the 1916 Preparedness day bombing, today was forecast to reach a swift end in a directed verdict of acquittal. Indications at the opening session Tuesday when seven women and four men jurors tentatively were seated, clearly pointed to a defeat in Mooney's battle to force the state to vigorous prosecution efforts.

partment; Clifton Wheeler, teacher of portrait painting; Burling Boaz, teacher of brush lettering and show card work; Edward R. Mayo, teacher of mechanical drawing; Constance Forsyth, teacher of drawing, and Dorothy .Eisenbach, teacher of illustration and composition. a a a According to Forsyth, the changes leave no art school. “It means that the John Herron art school is wiped off the slate."

26 MACHINES SEIZED IN CITY GAMING SMASH Police Chief Ignores Court Writ, Sends Squads to Raid Keepers. Police drive to rid the city of slot machines, in defiance of a circuit court restraining order, netted twenty-six machines and seven persons Tuesday. Twenty-one persons in whose places machines were seized are scheduled to be arrested today. All are charged with keeping a gaming device. Arraigned in municipal court three today, all seven defendants were prepared to offer guilty pleas, but Paul Rochford. judge pro tern., set Friday for trial on request of the state. Chief Mike Morrissey, acting with the approval of Mayor Reginald H. Sullivan and the safety board, decided to ignore the writ issued by Circuit Judge Earl R. Cox after Herbert Spencer, assistant city attorney, interpreted the Cox order to allow arrests. "Two United States circuit courts of appeals and supreme courts of thirteen states have held that machines of the type covered by the order are gaming devices,” Spencer said. Never Brought to Issue "The case has been called for trial three times and three continuances granted on appeal of the defendant. We never have been able to bring the case to issue." The restraining order was issued last month on petitipn of the Odom Sales Company, Chicago, owners of some of the machines seized. In circuit court today, Cox set next Monday for a hearing on the temporary restraining order issued in the Odom case. Chief Morrissey said he welcomed the chance to proceed against the machines, many of which, he said, have been placed near schools to get childrefi’s pennies. Police Play Machines "It's too bad we didn't have authority to act some time ago,” Morrissey said, "before so many of these machines were placed in the city.” Police squads under Sergeants Ed Kruse, Claude Kinder and Arthur Hueber made the arrests. In every place, a policeman would play the machine. A guard would be left while other officers went to the prosecutor’s office and obtained a warrant for the person in charge. Drive by Morrissey was a sequel to a cleanup Monday outside the city limits staged by Prosecutor Herbert Wilson. The prosecutor (Turn to Page Five) BRITAIN’S SIGNER OF WAR ARMISTICE DIES Lord Wemyss, Admiral of Fleet, Taken at Villa. By United Press CANNES, France, May 24.—Lord Wester Wemyss, admiral of the fleet, one of the two allied- signers of the World war armistice aboard Marshal Ferdinand Foch's private train in Compeigne forest, died of uremia today at his villa, Monbrillant. Lord Wester Wemyss, representing the British navy, and the late Marshal Foch, as allied command-er-in-chief, were the only allied signers.

Earline Ann Cm minings contemplates a speed test on her skates.

He hoped to win an acquittal in a hard-fought prosecution case as a meaas of clearing his name from the stigma of guilt applied by a jury sixteen years ago. But the stat'i reiterated it did not even intend to establish that a crime had been committed. William W. Murphy, assistant district attorney, taking the position that he has dissolved the state’s case, intimated he would ask the court %o "advise” the jury, once it is seated, to return a verdict of "not guilty.”

he said. “Our hours have been so cut up that we needed changes to accomplish what we were attempting. but the change has been made in the wrong way. “The dismissals came without any consideration, like a thunderclap. All instructors dismissed are left without income, with one week of instruction and one week of exhibition work, before the close of school.” Following the meeting Tuesday morning, Mattison left for New York.

Entered as Second-Class Matter sc I’ostoffice. Indianapolis

List of Sixty Men High in Industrial and Public Life Revealed as Obtaining Huge Sums After Market Crash. FINANCIER AGAIN IS ON STAND Senate Probers Told How Leaders Whose Names Were Good for Millions Rushed for Aid to Great Banking House. BY LYLE C. WILSON United Press Staff Correspondent WASHINGTON, May 24.—The financiers’ side of the 1929 stock market crash and other money crises of recent years, when men whose names were good for millions rushed for aid to the great banking house of J. P. Morgan & Cos., was presented today as a senate committee pried further into secrets of the Morgan firm. With J. P. Morgan testifying for the second successive day, the senate stock market investigating committee made public a list of more than sixty men—including such names as Charles G. Dawes, Norman IT. Davis, Myron Taylor, Richard Whitney and Charles E. Mitchell—who borrowed big sums from the Morgan company.

John W. Davis, former Democratic presidential candidate and counsel for Morgan, also was on the loan list, it was revealed at the noon recess. About one-third of the loans still are unpaid. On some of them, including the loan to Mitchell, who now is on trial in New York on charges of income tax frauds, collateral has shrunk until it no longer covers the indebtedness. Sought to Balk Collapse The Mitchell loan originally was for $10,000,000, but was reduced to $6,000,000. The amounts of the other loans were not given, but it was indicated they were more than SIOO,OOO each . It was testified by George Whitney, a Morgan partner, that the money was poured out to Mitchell in an effort to "control the situation” caused by the sudden collapse of stock market values in 1929. Testimony that J. P. Morgan & Cos. has maintained since 1927 bank deposits aggregating $17,000,000 with commercial banks, and Drexel & Cos., the firm’s Philadelphia branch, of $13,000,000 with other commercial banks, was introduced during the morning. New Sensation Expected Andrew W. Mellon's Pittsburgh bank was on the Drexel list. Another sensation, perhaps surpassing that caused by Morgan's revelations that he paid no income taxes during the last three years, was promised for this afternoon. Ferdinand Pecora, committee counsel, planned to introduce a list of persons who were given oppor-

Morgan Quiz May Result in Closing Income Tax Loopholes

BY MARSHALL M’NEIL Times Special Writer WASHINGTON, May 24 —A resurvev of the income tax law, as a result of the J. P. Morgan investigation, to find loopholes and chink them up, probably will be made by the senate finance committee. The vehicle for revision will be available when the house sends over the administration’s national recovery bill, now including a S7OO 000 000 to $800,000,000 tax measure.

The bill will be taken up in the house this week on the heels of revelation that Mr. Morgan and his eighteen partners paid no income tax the last two years. Passage of the bill in the house by this week-end apparently is assured under the proposed iron-clad rule prohibiting all but committee | amendments. Senator Connally <Dem., Tex.), a member of the finance committee, explained today that congress last year endeavored to strengthen weak portions of the law. But under these new' circumstances, he will demand a further survey to find out how to close the loopholes. Study Revision of Law Senator Couzens <Rep., Mich.), a member of the banking committee who heard Mr. Morgan Tuesday, : and also a member of the finance j committee, also will study revision of the income tax. It is likely in this connection that the provisions of existing law covering taxation of capital gains and losses, the section touching accumulation of surplus to evade surtaxes, and the section limiting allowances for stock losses will be closely, scrutinized. The law now provides that ‘‘losses from sales or exchanges of stocks and bonds . . . which are not capital assets . . . shall be allowed only to the extent of the gains from such sales or exchanges. But dealers in securities, banks and trust companies, as well as persons carrying on a banking business, where the receipt of deposits constitutes a major part of such business, are excepted from this provision. Whether this exception should be removed, or its terms made less broad, may be at issue in congress soon. At Issue for Years In regard to taxes in cases of capital net gains and losses, the question probably will be raised as i to whether the present 12 1 = per cent levy in the case of gains, and the 12 1 2 per cent deduction in the case of losses, shall be changed. The

HOME EDITION PRICE TWO CENTS Outside Marion County, 3 Cents

tunity to buy securities below the market price. Men high in official and business life were expected to be named in this list. The following evidence also was developed during the morning: 1. The Morgan firm threw r millions of dollars into the money marts of New York in an effort to relieve the situation caused by the 1929 stock market crash. Partners Pay No Tax 2. Morgan partners paid about $11,000,000 in income taxes for 1929, but comparatively little or nothing in the years since. 3. Morgan believes that federal or state supervision of private bankers is unnecessary, inferring that he sees nothing wrong with the banking situation as it developed prior io 1929. 4. Clients of Morgan & Cos., with millions deposited, made no requests for statements of condition or assurances of sufficient financial backing. 5. That evidence in the Pujo senate investigation of 1912 was the only public statement regarding Morgan affairs ever made until the present inquiry. Carefully Select Clients 6. That the Morgan clientele carefully is selected, depositors being turned away unless they bring proper references. 7. The firm's banking business is greater than its business in marketing or handling securities. The committee room again was crowded, with a line of policemen pushing back those who became too belligerent in their efforts to attend the capital's greatest show of recent years.

manner of computing losses probably will be discussed, also. The economic effect of this capital gains tax, the most complicated of all taxes ever imposed by the federal government, has been at issue for years, the contention Is that it retards the free flow of trade, sale of land, etc. It was condemned in boom times by the National City bank, and President Hoover once recommended a study of the tax's effect, saying it enhanced speculative speculation. Baby Scalded in Washing Tub Doris Jean Morris, 17-months-old daughter of Mr. and Mrs. Charles Morris, 1719 West Morris street, was scalded this afternoon when she put her right leg into a tub of hot water her mother was using for washing.

Two Big New Pink Features Two of the world's best heavyweight pugilists will collide on June 8, two weeks hence. Fight fans are getting steamed up over the Max Baer-Max Schmeling title battle and to give them a line on how the gladiators are shaping up. The Times, in the Pinks today, starts an interesting series on their training activities. Another special treat for Pink readers today will be the second article of a series on "Getting Ahead in Hollywood," by Dan Thomas, who knows the film capital from attic to basement. And juut to top it off. you get another big installment of “Hell Below,” tnrllling serial of submarine war and romance, now nearing its finish. Three big features in the Pinks! And there are more to come. Watch for them.