Indianapolis Times, Volume 45, Number 12, Indianapolis, Marion County, 25 May 1933 — Page 1

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COOLIDGE ON MORGAN BARGAIN LIST; POLITICS LINKED TO EASY PROFITS

MOONEY WILL TAKE PLEA TO HIGHEST COURT Appeal for Writ of Habeas Corpus Likely Will Be Filed at Capital. ACQUITTED AT TRIAL Second Murder Hearing Ends in Hollow Victory When Verdict Is Ordered. hu I nilrd I’n ** KAN FRANCISCO. May 25.—A direct appeal to the United States supreme court appeared today to be the next step in Tom Mooney's fight for freedom. Less than two hours after a directed verdict acquitted him of an old indictment charging him with one of the ten deaths in the 1916 Preparedness day bombing, Mooney was back in San Quentin peeling potatoes, but grimly determined to carry on the fight to a higher tribunal. Chief of his legal counsel, Frank P. Walsh, said application would be made to the United States supreme court for a writ of habeas corpus. Grounds for the appeal, Walsh said, would be that Mooney is being “deprived of his liberty without due process of law, and that he is being denied the equal protection of the laws both in gross violation of the provisions ocf the federal Constitution.” Pleas to Rnlph Unlikely Mooney's life sentence, superimposed on a separate indictment sixteen years ago, was untouched by Wednesday's acquittal. “The application will be grounded upon the charge that the defendant was convicted upon perjffred testimony,” Walsh said. “It will be shown that the district attorney at that time, some of his asistants and certain police officials had full knowledge of the fraud practiced upon Mooney, and actually connived with the witnesses who gave the false testimony which secured the conviction." A second course open is a new' pardon appeal to Governor James Rolph Jr. In vtew of Governor Rolph's previous refusal to act, however. Mooney is conceded little chance from that quarter. Acquittal Hollow Victory The acquittal was a somewhat hollow victory for the former labor agitator. The state refused to prosecute, moved for a directed verdict of acquittal immediately after six men and six women had been sworn in as a jury. Mooney electrified the courtroom bv leaping to his feet, with the plea that he be allowed to represent himself. Superior Court Judge Louis H. Ward demurred, pointing out he had adequate legal counsel. Nevertheless, the defendant persisted. “Bring on the best case you’ve got.” he bcseechcd Assistant- District Attorney William W. Murphy. “All I want is a .chance to answer.” He hoped to introduce witnesses whom he claimed would prove as perjured state evidence which had convicted him. Prosecutor Murphy refused to accede. ‘l’m Happy,’ Says Mooney “Take the prisoner back to San Quentin within forty-eight hours," Judge Ward ordered. The jury perfunctorily signed the acquittal vote and Mooney, manacled to sheriff's deputies, was whisked away to San Quentin. ”1 am happy,” he said as he teentered the prison. “This fight has many rounds. One round has jus-t been finished, and we won the decision. "The fight won't end until I'm freed. If the evidence was unworthy to be presented to a jury on this indictment, it certainly is insufficient to keep me in San Quentin for life on an identical charge." Today's Short Storv * Robert Miers. 1807 Woodlawn avenue, rented his four-room modern double from the eleven-word rental ad reproduced below. The ad was Inserted Tuesday and by Wednesday afternoon the house was rented to a T ies reader. For an invest a 60 cents Mr. Miers now has -lOnthly income of sl6 from his house. flfi: OAKLAND, S.. ?3<*—l-Rooni modern rfonblbe. earner. A-l condition, water naid. THREE FOR ONE—For this week only we are making a special rental offer. Your rental ad published seven consecutive days, two guest tickets to Apollo theater, and rental listed free in June 1 rental guide. ALL THREE FOR THE PRICE of a seven-day rental ad. Call RI-5551 or come to Want Ad Headquarters. 214 West Maryland street.

The Indianapolis Times

VOLUME 45—NUMBER 12

® ® ® ® ® ® ® ® ® Key Men in Every Walk of American Life Kept ‘Friendly’ to Morgan Firm by Favors

BY RAY TUCKER Times Special Writer WASHINGTON, May 25.—The name of a former President of the United States, Calvin Coolidge, was revealed today as a beneficiary of the House of Morgan through cut-ins on stock subscriptions at a low figure as one sensational result of the senate investigation of the international banking firm. Although the names already published included present and former cabinet members, officials of both political parties, a United States senator, recent presidential candidates, diplomats, military and aviation heroes, none rivals in importance the latest sensational disclosure. Committee members feel it shows how the Morgan ramifications reached into the home of one who had received the nation's greatest honors. Although slot in office w'hen the cut-in w r as made, Coolidge commanded tremendous pow'er through his influence on American opinion, through his speeches, his waitings and his membership on certain important. though unofficial committees. Capital Is Stunned by Probe Revelations Still stunned by the revelations, the capital speculates on whether Will H. Woodin, secretary of the treasury, and Norman H. Davis, special ambassador abroad in preparation for the London economic conference, will feel it incumbent to resign. Many saw irony in the fact that President Roosevelt demanded investigation of the Morgan firm, in view' of the revelations concerning two of his right-hand men. Woodin received blocks of 1,000 shares in the Alleghany corporation, holding company of the Van Sweringen railroads. Davis w'as advanced money. Without naming Woodin, Senator William E. Borah (Rep., Ida.) suggested that he ought to resign. He said: “I think that the American people in these times, when such tremendous pow'er is being exercised by the treasury, are entitled to a secretary of the treasury who. like Caesar’s wife, is above suspicion. At this time confidence is almost as important as ability.” We re Thinking of You, Say Morgan Letters In view of the Morgan firm's interest in foreign affairs, especially currency, the advance to Davis and to Robert E. Olds, former undersecretary of state and a member or the reparations commission, is considered significant. Ferdinand Pecora, committee counsel, and some committee members make no secret of their belief that this generosity to political and other powerful figures was for the purpose of making them feel kindly toward the Wall Street institution. The ietter informing beneficiaries of the proposed cut-in said the firm wanted the recipients to know "we are thinking of you.” The fact that such favors w'ere frequent and not isolated—as future disclosures will show—is held by the committee to show they were systematic and deliberate. The nonpartisan nature of the loans and cut-ins also Impressed members. The other cabinet member to benefit w'as Charles Francis Adams, secretary of the navy under President Hoover. Former Democratic Chairman John J. Raskob was on the list.

WOMAN GIVEN DEATH PENALTY Mother of Three Must Pay in Electric Chair for Killing Farm Hand. Hii Vnitrd Prcx* LA GRANGE, Tex., May 25. Mrs. Mary Dach, 32, widowed mother of three children, today was sentenced to death in the electric chair for slaying Henry Stoever, 58, a farm hand. Tattered and barefooted, the children tugged at the dress of their 200-pound German-speaking mother as she listened stolidly to pronouncement of the verdict. Her attorneys gave notice of appeal. zMrs. Dach. owner of a small farm near Schulenberg, pleaded guilty to the murder charge, saying she shot stoever last February and burned his body in a pit under a chicken house on her farm. The body was dug fro mthe pit early last month. A district court jury received the case late Wednesday and returned its verdict at 10 a. m. The defense had asked that, in consideration of the children, she be given short prison term. Hourly Temperatures 6a. m 68 10 a. m 77 7 a. m 70 11 a. m 79 Ba. m 73 12 (noon).. 78 9 a. m 76 1 p. m 81

Nab Coon in City Store Daring Huntsmen Spend Three Nights in Chase of Wary Animal; Set Him Free.

BOLD hunters of the state conservation department are wearing laurel on their somewhat moist brows today. For they have returned victorious from a three-day coon hunt in the heart of the Indianapolis downtown district. They caught the raccoon, but he was so fierce that they turned him loose again as soon as they could hustle him to a state forest.

Despite the location, this was a real coon hunt, with dogs and all, according to a report submitted by Kenneth Johnson of the department, master of the hunt. The dog treed the coon, but it took two traps to catch him, Johnson said. Here is his story: "We were called over to the When building. 38 North Pennsylvania street, when a small animal exhibition moved out. They had a raccoon that broke out of his cage and couldn't capture him. "They said we could do what we liked if we got hold of him. So we started first ey setting a wooden trap for the animal, which was scurrying about the lower floor and ir. the basement. The first night, that was Monday, he fell for it all right. He took the bait in the trap, but I guess he still was hungry, for he kept right on eating until he

Partly cloudy tonight and Friday; probably occasional showers: not much change in temperature.

McNutt Names Kentland Woman for Prosecutor First of Sex to Hold Job in State, Is Belief; Ends Judicial District Squabble. Governor Paul V. McNutt redeemed himself in the eyes of women politicians today when he set a precedent by naming a woman prosecutor. Miss Agnes Molter. Kentland attorney and Democratic vice county chairman, was appointed by the Governor to the office of prosecutor in the new seventy-ninth judicial district, comprising Newton county. So far as is known, she is the first woman to hold the title, it is said.

CITY MAN HANGS SELF Despondent Over 111 Health, He Strangles With His Belt. Despondent over ill health, John Walk, 57, of 521 North Gray street, today attached his belt to the top of his bed, slipped over the back and hanged himself. Found by his sister, Mr. Walk still had a slight pulse, but expired almost on the arrival of Dr. R. E. Wilson, deputy coroner. TAX SUITS THROWN OUT Hancock County Judge Ends Dispute Over 1930-31 Collections. Twelve suits seeking to have 1930-31 Marion county taxes declared void and asking an injunction to prevent collection were thrown out of superior court four today by Special Judge Arthur C. Van Duyn, Hancock circuit court.

ate the box and then of course, got away again. “Next night, that was Tuesday, we set out to catch him with a coon dog, borrowed from one of the game wardens. The hound picked up the scent, of course, as soon we opened the door. He started after the coon and soon had him treed —between the basement ceiling and the first floor. “He was out of reach of both dog and huntsmen. So we had to give it up. “On Wednesday we tried it again. This time we used a steel box trap and we caught the rascal. He was plenty sore and bit at my boots. So we turned him loose in the country without bothering to change his hard collar, to which a leash at one time had been attached.”

INDIANAPOLIS, THURSDAY, MAY 25, 1933

So were General John J. Pershing and Owen D. Young, frequently mentioned as Republican and Democratic presidential candidates, respectively. Conirast Pointed Out in Lindy Role J. R. Nutt, treasurer of the Republican national committee, also benefited. Another former Democratic cabinet member on the list is Newton D. Baker. Two influential New York politicians—Republican National Committeeman Charles D. Hilles and former Sca„e Chairman H. E. Machold —highly were favored. Both have often been accused by New York progressives of being too close to “downtown Manhattan.” Hilles, who once was secretary to President Taft, and subsequently national chairman, has been the G. O. P.’s best money-raiser for twenty years. Senator William G. McAdoo, former secretary of the treasury and also a committee member, got 500 shares at S2O a share, like the rest. The stock later went to about 50, giving a fine profit to those who sold then. The presence of Colonel Charles A. Lindbergh's name on the list brought back memories of the different role his father played in the Pujo investigation of the Morgan firm twenty years ago. The elder Lindbergh, then a representative in congress, sponsored the resolution that led to the “money trust” investigation, and the House of Morgan was his greatest aversion. Key Men in AH Fields of Life Involved in Deal The son is the husband of the former Ann Morrow, whose father was a Morgan partner before he entered the senate. The present list of beneficiaries, and those to come, are held to show how the great banking firm kept in friendly contact with key men in every walk of American life. t Though most of the recipients of stock were economic and industrial figures, the range of the Morgan generosity is almost unbelievable. It touched executives of railroads, rival banks and security houses, coal, oil, copper and realty concerns, public utilities, transportation lines, construction companies, radio, aluminum and shipping, telephone and telegraph, great holding companies of various kinds, food, insurance. There hardly is a key man in all these fields of activity who does not appear on the golden lists. Pecora Is Not Awed by Prominent Names Committee efforts to prevent Pecora from going to the bottom apparently have been blocked by the swiftness and significance of these revelations. The youngish examiner with the swarthy complexion stands in no awe of Mr. Morgan or the distinguished members of tiie committee. He has replied in sarcastic kind whenever Senator Carter Glass (Dem., Va.) suggested he W'as “badgering” the famous financier. No investigator in recent years has shown Pecora’s deftness and sense of the dramatic. He moves so easily, so lithely, that he neither scares nor warns a witness. He is most calm —rare trait in one w'ho was born in Sicily—w'hen about to ask his most crushing question. Morgan presents a strange contrast. He is bulky, heavy-jowled, deliberate —like an English squire or a big Alaskan bear. The suggestion of a David-and-Goliath contrast is not far-fetched.

The Governor named Attorney George F. Sammons, Kentland, as judge. Thys was brought to a close the three-year fight to create anew bench in Newton county, previously linked with Jasper county in the circuit presided over by Judge Moses Leopold. Passed by the 1931 session of the legislature, the bill was lost in the office of former Governor Harry G. Leslie. The measure was re-enacted by the 1933 session and signed by Governor McNutt. The Governor today also named Attorney George Beamer as South Bend city judge. He takes the place vacated by A1 Hosinski, who has been appointed federal marshal of the northern U. S. district. Further honors for women may include appointment of Mrs. Gertha Powers. Eighth district Democratic committeewoman, as head of the department of women and children in the state industrial board. Talk of transferring the activities of this division to some other branch of the industrial board service was stopped today when McNutt announced that it will be retained. The announcement came after a conference in the Governor's office Wednesday afternoon attended by McNutt, Mrs. A. P. Flynn, Logansport, Democratic state chairman, and Chairman R. Earl Peters. The Governor explained that he is preparing to name the new state industrial board and that the post now held by Mrs. Jessie Gremelspacher, a Republican, will be filled by a Democrat. Mrs. Flynn told the Governor that the women feel they have been neglected by his administration, it was reported. Times Index Book-a-Day 17 Bridge 9 Broun Column 12 Classified 14, 15 Comics 17 Crossword Puzzle 16 Curious World 16 Dietz On Science 9 Editorial 12 Financial 16 Hickman Theater Reviews... 10 Indie na Forest Army Series 11 Lippmann Column 11 Obituaries 16 Radio 7 Serial Story 17 Sports 13, 14 Talburt Cartoon 12 Vital Statistics 16 [Womans Page 8

SENATE CLEARS FEDERAL JUDGE Louderback Is Acquitted in Impeachment Case on Receiver Decisions. By Vnitrd Prrxg WASHINGTON, May 25.—Federal Judge Harold Louderback of San Francisco, eleventh man to face impeachment charges before the United States senate, was acquitted Wednesday after a trial of nine days. The senatorial jurors found him not guilty of five charges preferred by the house of representatives in connection with his handling of receivership cases in the northern district of California. “I feel it is a vindication,” Louderback said after the verdict was announced. “and as soon as I can I shall assume my duties on the bench in California.” The senators voted separately on each count. A two-thirds vote of guilty on any one of the charges would have removed Louderback from the bench. The vote on the last count was 45 to 34. The charges were based upon Judge Louderback’s handling of the receivership of the Russell-Colvin company, San Francisco brokerage house; the Lumbermen’s Reciprocal Association: the Fageol Motors Cos., manufacturers of trucks and busses, and the Prudential Holding Company. Several of the charges involved appointment of R. F. Leake, a "mental healer,” as receiver or investigator, and the relations between Leake and the judge.

Draught Beer Problem Before High Court Today

The question of draught beer is to be before the Indiana supreme court today. According to Lawyers three courses will be open for the justices :o take in handing down an opinion in the case. They could rule either for or against draught beer sale, or they can confine their ruling to the matter of whether beer of any kind maybe sold without a permit from the state excise director. Action was taken before the high court by the attorney-general through obtaining a temporary writ preventing enforcement of a Lake county superior court injunction which would have permittted John Tenkely, East Chicago councilman, to sell draught beer in that city. The Indiana beer control law which, in lower courts, has been held both constitutional and unconstitutional, bans sale of draught beer. It permits only bottled beer

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Ferdinand Pecora

JAPAN SEEKS NEW NAVY PACT Urges Agreement to Take Place of Treaties Curbing Sea Competition. BY STEWART BROWN United Press Staff Correspondent GENEVA, May 25. —Japan, seeking her place in the sun. demanded before the disarmament commission today anew naval agreement, replacing those of Washington and London that halted naval competition. Naotake Sato, chief Japanese delegate, said before the full commission, already far away from the rose-tinted situation that followed President Roosevelt's peace letter, that anew agreement should be included in any future disarmament convention. Captain Anthony Eden, acting chief British delegate, rose at once and said: “I would regret if the conference accepted the Japanese proposal. I must frankly say it is not of such a nature as to assist in our work.” Norman H. Davis, chief United States delegate, who last week offered for President Roosevelt to alter America’s traditional diplomatic isolation, in an effort to lead the world toward disarmament, followed Eden. Opposing Sato's proposal, Davis appealed to the conference to accept a draft article under which signatories to the Washington and London treaties would remain bound to their pledges to reduce. These treaties, he said, not only halted a race for naval armament, but “had a continuing influence on the peace of The world.” Not only as a matter of prestige but in order to defend their Asiatic Monroe policy, Japanese have emphasized the necessity for a more favorable ratio. NEW CURB ON DRUGS Illicit Traffic Will Be Curtailed By 1933 Indiana Statute. Federal narcotic agents expressed the opinion today that the illicit traffic in drugs in Indiana will be curtained greatly under a law passed by the 1933 state legislature, which became effective Tuesday. The state law conforms with federal statutes on narcotics, limiting possession and prescribing to recognized pharmacists and physicians.

to be sold through trade channels licensed by the state. E Miles Norton, judge pro tem. in Lake superior court, issued the injunction against officials arresting Tenkely. In turn he is restrained from enforcing it and ordered to appear before the supreme court today to show why the writ of prohibition should not be made permanent. Speculation has been rife as to the course the case may take, some predicting that draught beer will be legalized by the high court's decision. Administration leaders admit that draught beer would solve many beer control law difficulties in Lake county. It is reported the Governor has no serious objection to keg beer if | it is available only after the June 6 wet-dry election. H wants the eighteenth amendment repealed first, it is said.

Enteivil as SecondOass Matter at Postoffice, ludiauapolis

RASKOB OFFER TO ‘RECIPROCATE’ FOR ‘FAVOR’ REVEALED Late President Purchased Stock After He Left White House, Records Show; McAdoo, Woodin in Second Deal. CHARGE ‘RETURNS’ WERE SOUGHT Charles Francis Adams Accepted ‘Easy Money’ When He Knew He Would Enter Hoover Cabinet, Is Claim. BY LYLE C. WILSON United Press Staff Correspondent WASHINGTON, May 25.—The late Calvin Coolidge was revealed today as a favored purchaser of J. P. Morgan & Cos. securities. The name of the man who was President of the United States during the boom years was revealed on a list of nationally prominent persons who were given opportunities to make a quick turnover in securities offered through the famous banking house. Coolidge bought the Morgan “bargain stock” after he left the White House. The list was made public after the inquiry had developed an effort to establish whether the Morgan firm offered opportunities to make quick profits in the expectation that political favors would be offered in return. J. P. Morgan, explaining testimony that he paid income taxes in England during the years he paid no income taxes in the United States, said in a statement just before the luncheon recess that the taxes were under the British inland tax law and based on the rental value of property which he owned there. Seek to Show Political Link Morgan, who surrendered to the Washington heat today and came to the hearing without a vest, said the tax amounted to about 7,000 pounds sterling in 1930, and about the same amount in 1931 and 1932. A letter from John J. Raskob, former chairman of the Democratic national committee, was the basis of the attempt to connect Morgan favors with political returns. Raskob wrote that he hoped the future would give him “an opportunity to reciprocate” for the courtesies extended by the Morgan company. The new list of preferred Morgan purchasers made publice today were those who dealt in Standard Brands, Inc., an amalgamation of food products corporations. A preferred list of those permitted to buy Alleghany Corporation stock below the market level was made public Wednesday.

Testimony since has shown there were at least five of these preferred issues, the others being United Corporation, General Motors and Johns-Manville. The new prefered list included the namee of Bernard Baruch. It also included the names of some who were shown Wednesday. to have bought Allegheny Corporation stock on a ground-floor basis— Treasury Secretary William H. Woodin, Charles A. Lindbergh, Senator William Gibbs McAdoo and R. B. Mellon. Discuss Coolidge Ilnterest Ferdinand Pecora, committee counsel, asked George Whitney, Morgan partner, on the stand, on whose recommendation the name of Calvin Coolidge appeared on Standard. “I should assume it was by Thomas Cochran; he was a close friend of his,” Whitney replied. The stock was offered preferred clients at $32 a share, the price Morgan paid. Today the stock is at sl9. Standard brands, Inc., opened at 40 7 s for first trades on the New York stock exchange, on Sept. S, 1929, and on Sept. 10 sold at 43 %. Pecora sought to establish a connection between money favors and political favors. He was supported by Senator Couzens, (Rep., Mich.), who remarked: “I hope we can find out whether Morgan and Cos. is tied up in politics.” What “Reciprocate” Means “I don’t believe they are,” snapped Senator Goldsborough (Rep., Md.) Goldsborough previously had protested against making the hearing a "political vaudeville.” Pecora asked George Whitney, the witness, what was conveyed to his mind when Raskob spoke of being able to “recipricate” the stock offering favor. “I don't recall that it conveyed anything,” Whitney answered. “Wffiat position did he hold to reciprocate in return for favors?” “My recollection was that he was no longer with the company.” “Didn't he have something to do with the Democratic national com-

HOME EDITION PRICE TWO CENTS Outside Marion County, 3 Cents

mittee? Didn't you know he was chairman?” "We don't follow such things.” ‘‘Then 'reciprocate’ was meaningless to you?” Pecora repeated. Adams Connection Questioned "Yes, sir,” Whitney replied. "He was at Palm Beach at the time.” "Was a similar invitation to subscribe offered Mr. Joseph R. Nutt?” "I'm sure it was. As you all know, he's been associated with the Van Sweringens for years.” "How many shares did he get?” "Two shares.’ It appeared that when Charles Francis Adams accepted a bargain rate buy in Allegheny stocks he knew he would be secretary of navy in the Hoover cabinet. Whitney identified a letter from Adams in which the latter said he could see nothing in his coming "position” to prevent his accepting the offer. Adams was sworn into office four weeks later. McAdoo “Explains” Deal General John J. Pershing and Raskob were named as having been offered preferred privileges in the purchase of stocks of Standard Brands, Inc. They also were on the Wednesday list. Senator William Gibbs McAdoo, the tall, lean Californian who served as Woodrow Wilson’s secretary of treasury, opened the proceedings today with a statement regarding his part in the purchase of shares in Alleghany corporation at from sll to sl6 below’ the current market quotation. He revealed that he also participated in stock issues of United Corporation, a utilities holding company, and Standard Brands. McAdoo said he incurred a net loss of $2,565 on the three transactions. Capitol Hill was buzzing today with discussion of possible political consquences from revelation of the “cut rate” list, made public Wednesday. Scores of persons were permittee! to buy Alleghany Corporation common stock at S2O a share early in 1929 when it was selling on the market at more than 50 per cent above that figure, it was revealed.