Indianapolis Times, Volume 45, Number 13, Indianapolis, Marion County, 26 May 1933 — Page 1

MOVE TO REPEAL GOLD STANDARD ACT

WOODIN MUST GO, SENTIMENT IN WASHINGTON Demand for Resignation as Treasury Head Voiced by Congressmen. MORGAN LINK IS FATAL Nye, Couzens, Borah and Wheeler Urge Ouster of Secretary. BY MAX STERN Timm* Special Writer WASHINGTON, May 26.—Sentiment ran strong among members of both parties and in both houses of congress today that President Roosevelt's pledge to purge the temple of money-changers could not be kept, without the resignation of Secretary of Treasury William Woodin. Many withheld comment under the belief that, following revelations of favors granted Mr. Woodin by the House of Morgan, the secretary would resign shortly. Others were outspoken. "It now is up to Mr. Woodin,” said Senator Borah. "He should explain the record or step out.” Feel He Should Resign Senator Wheeler (Dem., Mont.) said: "By reason of conditions existing in the country today, I think no man should be secretary of the treasury who is in the slightest degree beholden to the House of Morgan or to any other great banking institution.” Senator Couzens <Rep., Mich.) would make no comment other than to refer to his speech last week criticising Mr. Woodin's new undersecretary, Dean Acheson. as a friend of the House of Morgan. Senator Couzens, as a member of the senate banking committee, forced publication of the Morgan beneficiaries. Robinson, l.udlow Aroused Senator Robinson (Rep., Ind.) and Senator Long <Dem.. Lah have both spoken in criticism of Mr. Woodin and Norman Davis, "the mythical ambassador,” for having accepted Morgan favors. On the house side, likewise, few defended the secretary's action. Several demanded his resignation. Others were "watchfully waiting.” Representative Ludlow (Dem., Ind.) declared the secretary's connection with Morgan "very unfortunate." But Representative Britten (Rop., 111.) from the house floor, urged resignations from Mr. Woodin, Mr. Acheson and Mr. Davis.

Morgan Wins Point RV LYLE C. WILSON I'nilrd Press Staff (orrcspomlent WASHINGTON. May 26.—Partners in the powerful house of Morgan, who have seen secrets of their financial dynasty spread to the world in three days of startling testimony, won a point today when the senate stock market investigating committee decided not. to reveal the names of partners, who have borrowed from their firm. The committee, in a secret session marked by a flareup over publication of forthcoming evidence before its formal presentation, decided against, revealing the partners’ indebtedness. The executive session delayed the beginning of the fourth day of open hearings, whicli began an hour late with George H. Howard, head of the United Corporation, a. utilities holding company, as the witness. It was understood that some of the committee s criticism of news “leaks" centered around the revelation Thursday by the United Press that the late Caivin Coolidge would be named on one of the lists cf those permitted to purchase securities at a price below the market quotation. The committee also had under consideration the question of publication of the articles of partnership of J. P. Morgan & Cos. No definite action was taken. It was decided, however, to make the list of individual depositors in the Morgan bank available to committee members for inspection whenever desired. The senate Morgan committee recessed at 1:23 p. m„ today until 10 a. nr. next Wednesday. In the Air Weather conditions at 9 a. m.: South-southwest wind, 22 miles an hour, gusty: temperature, 76: barometric pressure, 27.79 at sea level: general conditions, high, broken clouds; ceiling, unlimited; visibility, 12 miles. Times Index Page Book Nook 19 Eridge 11 Eroun Column 20 Classified 29-30 Comics 31 Crossword Puazle 23 Curious World 28 Dietz on Science 11 Editorial 20 Financial r. 28 Hickman Theater Reviews 29 Indiana Forest Army Series ... 15 Lippmann Column 28 Money—History in Pictures— 5 Radio 29 Serial Story 31 Sports 26-27 Talburt Cartoon 20 Vital Statistics 28 Woman’s Pages 16-17 .World’s Fair Pre-view 19

The Indianapolis Times

VOLUME 45—NUMBER 13

'Skyrocket of Britain * Dies Pauper i Horatio Bottomley Famed as War-Time Financier, Publisher, Orator. BV HARRY FLORY United Press Staff Correspondent LONDON, May 26.—Horatio Bottomley, one of the most amazing figures of modern England—editor, ; silver-tongued orator, millionaire, | convict, pauper—died in a free ward jof Middlesex hospital today. Bottomley, “the man who might | have been prime minister,” died beI hind a screen that sheltered him . from the stares of his fellow charity patients. He was operated on a week ago. At 73, a flabby old man, 1 he was unable to fight very hard. His last public appearance came a few weeks ago, when he applied

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That w'as what millions of Britons thought, who admired the man, though they marveled at the nature that sent him off into crooked paths. There was no bitterness in him in his last days. Always a (Turn to Page Twenty-Nine)

TOY GUNBANDIT INDICTED AGAIN Freed De Pauw U. Student Accused of Robbing Filling Station. Malcolm Berger, 21, "toy gun bandit,” today was reindicted by the Marion county grand jury on charges of robbery and petit larceny as the result of Criminal Judge Frank P. Baker's indignation at the parole given Berger on a former conviction. In the new indictment, in two counts, the De Pauw university Rector scholar is accused of robbing George Winkleman. filling station attendant, of $lB on Nov. 1, 1932. Arrested last fall, Berger is alleged to have confessed three ing station holdups with the aid of a toy pistol. He said he needed more money to keep up his fraternity expenses at De Pauw. Berger was indicted on only one holdup and sentenced to a year at the state penal farm by Baker. Last week. the state clemency commission paroled Berger, the leniency evoking a blast of protest from Baker. The criminal court jurist charged the parole was the result of the pressure of "money and influence.” Berger's rearrest was ordered under $5,000 bond. Possibility of a clash involving Baker and Governor Paul V. McNutt was seen today when it was learned young Berger is in St. Louis. To return him for trial it would be necessary tor the Governor to sign papers for extradition unless the accused waived the point. ALLEN NEW K. C. PILOT Tris Speaker Resigns as Manager of A. A. Blues. By I nitcd Press KANSAS CITY. Mo.. May 26. Appointment of Nick Allen of St. Paul as manager of the Kansas City Blues was announced here today. Allen, who several years ago managed St. Paul of the American Assoeation. is to succeed Tris Speaker as pilot of the Kansas City team Saturday. Speaker's resignation was announced simultaneously with Allen’s appointment.

Robinson Pours Pension Bill Flood on Congress Pension bills introduced by Arthur R. Robinson. Indiana’s Republican senator, will not provide very many strong posts for his political fence, although he has offered 175 of the measures.

As matters now stand, about halt of the bills will mean nothing, as that number are for pension increases on which congressional leaders have turned thumbs down. None of the measures will be considered before January, 1934. when the next regular session of congress will convene. Robinson was prominent in the fight against the Roosevelt economy program, which included reduction of the amount of money paid to war veterans by the government. But the economy program won. Then the Indiana senator loosed the flood of pension bills, patently in the hope that their passage would help him in the race for re-election. Meat of the bills for pension in-

Probably thunder showers this afternoon or early tonight, followed by partly cloudy weather over Saturday; slightly cooler.

BRITAIN JOINS U. S. IN STAND ONftCURITY American Attitude Praised in Historic Statement by Sir John Simon. FULL SUPPORT PLEDGED Continent Is Warned That England Will Assume No Further Obligations. BY W. G. QUISENBERRY United Pres* Staff Correspondent LONDON, May 26.—Great Britain joined with President Roosevelt today in a common attitude toward European security demands. In an historic pronouncement in the house of commons. Sir John Simon, foreign secretary, announced Britain's unequivocal support of the United States attitude on “security pacts,” and informed the continental powers that Britain would assume no further obligations than she already has taken to protect them from war. Tribute Paid U. S. Sir John paid eloquent tribute to the offer of the United States to modify its old policy of neutrality—affecting the freedom of the seas doctrine —as a contribution to world peace. "Britain,” he said, "now has no ground for complaint whatever.” "The old idea of standing with folded arms between a nation which is ah aggressor and a nation which is oppressed is gone,” he continued. “I cannot express how much we should value this effort now being made by the American government and by its President to co-operate with us. and abandon a tradition which the American people themselves jealously guarded.” Resembles British Way The American way of looking at the problem of consultative pacts, Sir John said, also is “characteristically the British way of looking at it, namely, she must judge the circumstances at a time when these circumstances are known.” "In contrast with that, there is another way of approach—to make declarations in cold blood and in cold print prescribing the course of action one might take,” he continued. "That is the continental way. "It is thoroughly characteristic of the continental mind—l mean no reproach—that it approaches all these things with the belief, ‘You write it down in advance, and all will come out all right.’ ” He concluded by saying that although the nations still are not agreed definitely on the problem of ! the European security demand, "the contribution made by the American | government goes far to meet that j demand, when coupled with provisions for supervision of armaments.” Speech Called Remarkable "A necessary condition for achieving effective disarmament in European relations.” he said, “should be improved confidence and restored co-operation to take the place of intense rivalry and suspicion.” Sir Austen Chamberlain described Simon's speech as "one of the most remarkable and encouraging statements made by a foreign minister in years.” "No more important declaration ever was made by one of the greatest governments in the world than was made 8t Geneva by Norman Davis,” he said. "America, in making a reservation therein, however, reserved to herself no more than every power who sits with the League of Nations reserves for itself by the league covenant. "I have no more doubt in the j faith of the American people than I would doubt our own good faith to fulfill Locarno.” George Lansbury. labor leader, recalling the repudiation of Woodrow’ Wilson by Congress, expressed skepticism of treaties generally and declared the Sino-Japanese war “has proved the utter futility of all treaty signing.’ Hourly Temperatures 6 a. m 69 10 a. m 78 7 a. m... 71 11 a. m 78 Ba. m 74 12 (noon).. 77 9a. m 77 Ip. m 79

j for, and was reI fused, an old age I pension of $2 a j week. His last of many interviews, about . that time, was j c h a r acteristic of of him. | “I can not really b e 1 i e v e,” he said, "that Mr. H. B. is going to end like this . . . “I could have got anywhere and been anything if I ' had not made a fool of myself.”

creases would benefit widows of Civil war veterans. Under the law, bedridden widows are allowed S4O a month, but for some time pension committees of both senate and house have permitted special bills by which SSO a month is paid. Amcther class aided by special bills is composed of imbecile children of veterans. The law states they shall not receive aid unless they were under the age of 16 at the death of the father, but the special bills hurdle the age provision. Former Senator James E. Watson and other Indiana congressional "lame ducks" are said to have willed (Turn to Page Fourteen}.

INDIANAPOLIS, FRIDAY, MAY 26, 1933

Spectacular Ceremonies Will Open Chicago’s Great Exposition Saturday

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This drawing shows how light from the distant star Arcturus will be trapped at four observatories and used to turn on the lights at Chicago's world fair. Telescopes will train the beam of starlight on photoelectric cells which will convert the light into electrical impulses. These will be transmitted to Chicago by wire to turn on the exposition's giant searchlight, shewn at the upper left, and the searchlight’s rays will turn on the lights in the main buildings.

Glass Bank Bill Near Legislative Journey End Passed by Senate, Goes to Conference; Roosevelt Is Expected to Sign Measure. By United Press WASHINGTON, May 26.—The Glass banking reform bill, insuring depositors against loss, and designed to fortify the banking system against future crises, today neared the end of the legislative journey on which it has been buffeted for more than a year.

Passed late Thursday by the senate and earlier in the week by the house, the bill goes to conference for adjustment of amendments. President Roosevelt has not reveiled definitely his position on the measure, but its advocate? were confident he would sign it and make it law after congress has approved the final draft. The bill embodies many reforms for which Senator Carter Glass (Dem., Va.), author of the federal reserve act, long has been fighting. One strikes hard at J. P. Morgan & Cos., on whom a senate committee has focussed its spotlight of public investigation. Hits Great Private Banks The bill would compel Morgan & Cos., and other private banks to give up within two years either their deposit or their securities business. What this would mean to the Morgan firm is indicated by testimony in the senate inquiry that on Dec. 31, 1932, it had $340 000,000 of deposits, and that in the years since the war it has sponsored flotation of more than $6,000,000,000 of securities. This provision goes hand and hand with one compelling all commercial banks to divorce themselves completely from affiliated securities houses within one year. Both sections are based on the contention that bankers holding and investing the public's deposits should have no connection with the selling of securities. The only major difference between house and senate drafts of the bills concerns the insurance of deposits. The senate would provide immediate insurance of all deposits up to $2,500 in all federal reserve member banks and in all state banks proved solvent. After one year, permanent insurance would become effective. Other Major Provisions The house bill omits the immediate insurance, but provides for virtually the same permanent system. Other major provisions of the bill: Forbid payment of interest on demand deposits: permit the federal reserve board to limit interest on time deposits. Prevent interlocking directorates between commercial and private banks. Permit national banks to establish state-wide branches in states permitting branch banking by state banks. Give the reserve board power to withhold credit facilities from any bank using reserve credit for speculative purposes. Empower the reserve board to remove officers of member banks indulging in "unsound'' practices. TAX PAYMENTS - SHORT Total 58.054.000 in County, 18 Per Cent Below Normal. Spring tax collections total SB,054.000. approximately 18 per cent short, according to final figures on collections announced today by Fay Wright, chief deputy county treasurer. ,

CHINESE CIVIL BATTLE FLARES Two Seasoned Armies at War as Truce With Japan Looms. BY HERBERT R. EKIXS United Press Staff Correspondent PEIPING, May 26.—Bitter civil warfare between two seasoned Chinese armies broke out eightyfive miles northwest of Peiping today as the fighting dwindled between Japanese and Chinese here zq virtue of an oral truce preliminary to a meeting Monday, at which arrangement of a formal armistice will be attempted. Due to the truce, there was a decided lull in the fighting around this old northern capital, whose populace and priceless art treasures have been threatened with attack by the Japanese closing in from north and east. Japanese airplanes today reconnoitered over Peiping and Tientsin. Japanese are strengthening their fronts, and a trainload of artillery passed Chingwangtao. 125 miles up the coast, on its way to Tientsin. The fighting between the Chinese armies was precipitated at Hsuanhuafu. on the Kalgan-Peiping railway, between 10,000 of General Feng Chan-Hai's big sword volunteers and 8,000 followers of Fang Chen-Wu. Woman Injured in Fall Falling from a step ladder when a section of ceiling fell, Mrs. Minnie Wamphole, 53, of 539 Marion avenue, was thrown downstairs at her home this afternoon. She is in city hospital suffering from hip cuts.

J. P. Morgan Proves Master Showman; Displays Calm Wonder at Sightseers

BY RAY TUCKER Times Special Writer WASHINGTON. May 26.—J. P. Morgan is a great showman. Even though he has been coached for his appearance before the senate investigation by John W. Davis expert in political, diplomatic and public relations and by Thomas W. Lamont, former newspaper man. they had something substantial to work on. Morgan admits he took a course of training before casting off his ancestral shyness and silence. Asked if it were true that he is camera-shy. he replied in his heavy. British accent: “Yes, I really am.” When it was suggested that he did not show it, he explained. “Oh, I've been well coached, and I know when to take good advice.” His calm is the wonder of the hundreds who throng the committee chamber to get a look. Though shielded from birth by

BY STEVE RICHARDS United Press Staff Correspondent CHICAGO, May 26.—The 1933 World’s fair, which for five years Chicago has been building as a shrine of progress, was almost ready for colorful opening ceremonies Saturday. Ten thousand workmen still labored feverishly to apply lastminute touches to exhibits. Officials said nothing would be lacking when gates to the avenue of flags swing open at 10 a. m. Saturday. A spectacular, fast-moving program will open the exposition, the second in Chicago's history. Gates to Soldier field, which seats 115,000 persons, will open at 9. An hour later an Elgin time ball will drop at the north entrance. The signal for start of the Pageant of Nations. At the same time the inaugural parade will start up Michigan boulevard from the north side of the loop. tt tt tt WITH Postmaster - General James A. Farley representing President Roosevelt, the parade will march down Michigan avenue and enter the stadium at 11. Rufus Dawes, president of the exposition; Governor Henry Horner, Mayor Edward J. Kelly and other state and national figures will lead the procession with Farley. The Chicago Black Horse troop, police and military escorts will be included in the procession. After reviewing the parade in the stadium, Farley will sign a (Turni to Page Ten)

CAUGHT TRYING TO WRECK FAST TRAIN! Gary Man Nabbed Cutting Signal Block Wires. By United Press GARY, Ind., May 26—Theodore | Mardisano. 46. unemployed steei worker, was held here today follow-1 ing an attempt to wreck the fast Niagara Special of the Michigan Central railroad. The plot was discovered a few’ minutes before the fourteen-car east bound flyer arrived. Police arrested Mardisano as he ! w’as cutting w’ires on a signal block. Several ties had been piled on the track nearby. Mardisano told police he did not know why he plotted the wreck.

nursemaids, tutors, lawyers, and bulwarked from intrusion by billions, he is getting a thrill out of the excitement. Sometimes, he seems bored and a little arrogant, but, for the most part, he is smiling and follows proceedings intently. He is a sure, slow, substantial figure. He sits his seat solidly, arms hanging at his sides. When he shifts position, he does so ponderously, like a great bear. He mops his red. round face continuously with a plain white handkerchief that soon becomes damp and mussed. For two days he sat directly beneath a blazing crystal chandelier, and it beat down on his bald crown with terrific heat. His aplomb during the reading of his firm's record of flotations since the World war was superb, incredible, unbelievable—almost appalling. .

Enter' and ns Second-Class Matter at Postoffice, Indianapolis

ROOSEVELT ORDER PUTS RESOLUTION BEFORE CONGRESS Action Would Make Federal Currency of all Kinds Leg-al Tender for Public and Private Debts. HELPS EUROPE IN PAYING U. S. Proposal Also Seen as Providing Weapon for American Lse at Forthcoming Economic Conference. By United I’rcss WASHINGTON, May 26. —Acting on White House orders, Chairman Steagall oi‘ the house banking committee today introduced a resolution to repeal the gold standard act of the United States. This action, he said, definitely takes the United States off of the gold basis for its currency.

HATTON MAY BE BANKING CHIEF Marion Attorney Likey to Head New Commission, Reports Say. Robert Ballon, Marion attorney and advisor to Governor Paul V. McNutt during the 1933 legislative session, may be chairman of the new state banking commission, it was indicated today. At the first meeting of the new’ commissioners, whose official duties do not start until the law is effective July 1, Batton W’as chosen to preside. The meeting w r as held Thursday night in the office of Richard A. McKinley, head of the state banking department, and approval given departmental affairs. Evans Woollen attended in an advisory capacity, a post he has accepted after refusing regular commission membership. Herman Wells of Indiana university, w’ho is drafting new forms to comply with the new financial institutions act, was appointed secretary for the meeting. Commissioners, besides Batton, are Oscar P. Welborn. Indianapolis; Byron Gray, Muncie; C. M. Setser, Columbia, and Harvey Hartsock, Indianapolis. * State Park Pool to Open Brown county state park swimming pool will be opened Sunday, it w’as announced today by state conservation officials.

Going to the World Fair? Most people are. but if you're not, the next best way to find out about the exposition will be to read The Times. Mrs. Maurice Murphy, long in newspaper and publicity work in this city, is representing The Times at tne fair. She'll write a daily story, telling you all about Indiana's part in the fair, who’s there from the Hoosier state, and a multitude of other facts that will interest you. Her story is on Page 22 today. As an added service to Times r e a o e r s, Lowell Nussbaum, Times aviation editor, flew to Chicago via American Airways, Wednesday. There he attended the pre-view’ given for the press and he tells you today, on Page 1, Section 2, of the wonders he saw’. Watch The Times for world's fair news every day.

Though the total amounted to 56.000,000,000 spent for building railroads, erecting factories, dams, power houses and transmission lines, for constructing ships, digging into the earth for materials, putting together airplanes to span the oceans, he did not listen. He sat slumped in his chair, and gazed at the floor. He lifted his head only to gaze at the cops and the chandeliers. But his Olympian aloofness vanished when the Democrats and Republicans on the committee began to scrap, good-humoredly, over the disclosures that prominent politicians and public figures had been allowed to buy stock at bargain rates. He grinned,- and showed a fine set of solid teeth. His massive body shook with laughter. He turned in his seat toward his (Turn to Page Twenty-Nine;

HOME EDITION PRICE TWO CENTS Outside Marion County, 3 Cents

In addition, the resolution would make federal currency | of all kinds legal tender for I public and private debts. A companion measure will be in- ! troduced later today in the senate, j "This thing means but one thing,” ! Steagall said. "The United States i has declared its independence of gold." He asserted flatly that he was acting on personal orders from President Roosevelt. Approved by Administration "The Steagall measure,” Treasury Secretary Woodin said upon leaving the White House, where he conferred with President Roosevelt, "has the approval of the administration.” "I will have a formal statement explaining this legislation at the conclusion of the cabinet meeting this afternoon,” Woodin remarked. The resolution, in effect, w’ould remove the gold backing from all pa- | per money so far as demand col- ! lections from the treasury or its agencies are concerned. Steagall added that all bonds issued in the future by the federal government would omit the famous “gold clause.’ pledging inpayment in gold currency of the present | weight and fineness. Reduce Foreign Debt Instead, they w’ould be made payable in "lawful money” which under | th-' terms of the new administra- ! tion resolution would mean any type of currency issued by the federal government. The new’ administration move was interpreted in informed congressional quarters as actually being a substitute for the gold content revaluation provision of the recently passed inflation act. This provision authorized the President to reduce the gold content of the dollar within a 50 per cent maximum . Some congressmen believed that the proposed resolution also would have the effect of reducing autoj matically the war debt owed the United States by European governments. Weapon at World Parley It was behoved they could now pay in "lawful money” and not ia j gold, as previously stipulated. Information also reached Democratic congressional leaders that the gold standard repeal could be forged into another weapon for use of | American delegates at the forthcom- • ing world economic conference, j It provides, it was understood, the j machinery for a so-called "managed i currency.”

INDIANA BLAMED FOR BAD CHICAGO WATER Inquiry Started After Conference Held in Gary. What makes water taste so badly in Chicago is the subject of an investigation launched today by Dr. John Hare, state health director. For the Chicagoans blame it on Indiana industry in the Calumet district. Asa result of a conference between Illinois, Indiana and United States public health authorities in Gary Thursday, the investigation was started. Clyde E. Williams, department sanitary engineer, was assigned to inspect oil refinery refuse in the district. Today s Short Story Just one more day left in which to place your rental ad for the June 1 Rental Guide. Ads placed by 11:15 Saturday morning will be published in the home edition, and also will be listed in The Rental Guide if inserted for four or more insertions. Each person placing a rental ad for seven consecutive insertions will be mailed a pair of guest tickets to the Apollo Theater upon payment of bill. The Times offers the lowest rental rate of any Indianapolis newspaper. Just three cents a word, with a 10 per cent discount for prompt payment. Special four and seven-time rates. Call RI-5551 or come to Want Ad Headquarters, 214 West Maryland street.