Indianapolis Times, Volume 45, Number 26, Indianapolis, Marion County, 10 June 1933 — Page 1

j '■

GREAT BRITAIN WILL PAY JUNE 15 DEBT INSTALLMENT IN FULL, U. S. INFORMED

Silver Rather Than Gold to Be Used to Meet Obligation. ‘HEARTENING GESTURE’ Decision Is Reached as Aid to Success of London Parley. BY HARRY FLORY I'nitfd Prrat* Staff Corrpsnnnd*nt LONDON, June 10.—Great Britain has informed the United States of her intention of meeting the June 15 war debt payment in full, the United Press was advised today by trustworthy sources. The payment would be made in silver rather than gold. The payment would be charged ngainst the equalization fund established to maintain the level of the pound with other currencies, thus preventing an additional burden on the budget. The argument that a full payment would be a heartening gesture to accompany opening of the world economic conference was coupled with the traditional honor of Great Britain in meeting her financial obligations at Friday’s meeting of the cabinet, and prevailed, the United Press was informed. ONE BURNED FIGHTING $4,000 FIRE AT HOME Neighbor Breaks Arm and Two Are Overcome by Smoke. One man was burned severely on the lace and arms, another broke his arm, and $4,000 damage was caused to the home of Fred Fines, 4130 South Collier street Friday afternoon when gasoline used in cleaning floor burst Into flames. Fines was burned painfully when lie attempted to extinguish the fire and Edward Poe, a neighbor, who was throwing water on the roof, fell and broke his arm. Two firemen from Pumper Company 18 were made sick by smoke and the extreme heat. Inadequate water pressure handicapped the puper company and neighbors formed a bucket brigade, pouring water into the pumper truck tank.

How the Market Opened

BY ELMER C. WALZER I nited Tress Financial Editor NEW YORK, June 10— American Telephone and Telegraph capital stock equaled its 1033 high at 123%, up •%, in the early trading on the Stock Exchange today. The main list registered gains of fractions to more than a point in active turnover, Aiding the market were further depreciation in the dollar, a low wheat crop estimate and prospects of further reduction by the hot weather. and imminent adjournment of congress. Building Shows Gain Tire feature in the business news was a 36 per cent gain in building operations in May as compared with April, according to F. W. Dodge Corporation. The total still was well below May 1932. All groups participated in the stock rise. Steel common crossed 56 on the first sale, a block of 1.000 shares. American Can opened at 92 .. unchanged and held around that level. Consolidated Gas rose nearly a point to 58% in a firm utility group. Oils continued to advance. Rails were steady to firm as were electrical equipments. Tobaccos forged ahead. Coppers were firm. Motors Are Active Gold mining issues rose to the year’s best levels. Auburn rose more than a point, to 68% in the motor division and Chrysler made a fractional gain to 24%, while General Motors on a block of 5.000 shares was off % at 27 %. Commonwealth <fc Southern opened 15.000 shares at 5%. unchanged and equal to the 1933 high. The issue featured the market in activity Friday when 85.000 shares came out in one block, to set an all time record for a block other than an opening block. Bandits Escapes With $l5O Looking James E. Robertson. 24. of 926 North Bcville avenue, in a truck, a gunman, using a stolen car, escaped with $l5O Friday afternoon. Robertson is a driver for Hamilton. Harris A' Cos. Times Index Page. Block Cartoon 4 Book a Day 9 Broun Column 4 Classified 8 Comics 9 Conservation Series 2 Crossword Puzzle •• 7 Curious World 7 Editorial 4 Financial •• 7 Hickman Theater Reviews .... 6 Industrial Page 2 Radio •• ~ Serial Story 9 Sports •• Woman's Page 5

0 The Indianapolis Times Generally fair and continued warm tonight and Sunday; cooler Sunday night.

VOLUME 45—NUMBER 26

MEXICO CITY GOAL OF HOP FROM SPAIN Two Daring Fliers Start Longest Trip Over Water Ever Attempted. BY JEAN DE GANDT l nited Press Staff Correspondent SEVILLE, Spain, June 10.—Two Spanish fliers, embarking on one of the most daring aerial adventures in history, left their escort of military planes at the Spanish coast today, and headed over the Atlantic on the longest unbroken over-water flight ever attempted by a heavier than air machine. The fliers, Captain Mariano Barberan and Lieutenant Joaquim Collar. hoped to be flying over Havana, Cuba, some 5,000 miles away, within forty-five hours. If they have enough gasoline they will continue an additional 1,000 miles to Mexico City without stopping; otherwise, they will land in Havana. Weather Conditions Good The start was from the Tavlada airdrome at 4:45 a. m. (8:45 p. m., Friday, Indianapolis time). They had only 150 miles to fly before reaching open sea. The fliers had waited at the field all night studying weather reports. They had not expected to take off until tonight, but when conditions grew more and more favorable with each hour, they ordered their heavily loaded plane to the line. “It is not intended to break any distance record,” their manager told the United Press, “It simply is a straight flight to try to " reach Havana, and continue farther to Mexico if there is sufficient fuel.” Machine Heavily Loaded Their route led south to the Madeira islands, and thence direct to the West Indies. Depending on celestial observation to guide them, the fliers planned to land on some eastern island of the West Indies, if they found their fuel would not take them ns far as Havana. Their plane was loaded with 1,320 gallons of gasoline and 53 gallons of oil. For food, they had an egg and milk drink, cold tea, bananas, mineral water, and cognac. The machine was so heavily loaded that it had to taxi 3.200 feet before getting off the ground. Ending Siberia Trip By T'nitrd I’rr/tx BELOYE, < SIBERIA), U. S. S. R„ June 10.—Jimmy Mattem flew his Century of Progress on the last leg of the Siberian section of his around the world flight today, heading toward Khabarovsk. The next stage, if he reaches Khabarovsk safely, will be the hazardous trip to Nome, Alaska. He took off from the local airfield at 5:50 a. m. today (4:50 p. m., Friday, Indianapolis time.). He hoped to make Khabarovsk, approximately 1.400 miles, in one hop. It was estimated that at least ten hours would be necessary to complete the flight. Mattern had lost all chance of bettering the Post-Gatty record for an around the world flight, but he still expected to be the first man to encircle the globe alone by air. He has covered more than half the distance. Mattern landed here at 7:45 p. m. Friday, after a smooth flight from Krasnoyarsk. He was on the greund five hours and five minutes to refuel and rest.

RACE track selections ’-■Sr'J-. BY O. REVILLA

WASHINGTON PARK. HOMEWOOD, 111., June 10.—For the last day’s entertainment for the cash customers at Washington park, S. W. Labrot will show his great team to the western fans in the big race of the day. Springsteel and the good old mare Tred Avon look like the best bet of the day, even if it is in a race for big money, where

upsets are quite frequent. With the favorites already gone to the bow wows during the last week every one knows what to expect on thie last day. Two repeaters are slated on the card. They are Black Comet in the third and Cherrytime in the second. Barring accidents, both are going to be tough babies to beat to that imaginary wire. Technocracy in the fourth is right on edge and ready for a race. Should gallop home in front of the Dixianna entry. They bring back Scarlet Brigade in the last race of the last day and he looks mighty fit-tin’. Belmont Park also is closing its gates with today s card, which is anything but a good card, with the exception of the big race. Dark Winter could win it on some of the past performances, but will be bothered considerably with The Darb. Black Buddy looks like a good thing to string with in the third. Today’s Selections At Washington Park—1. Knowlton, Printemps, Polly's Folly.

TRIPLE HONORS

MS Wm gill Jpr Bj k Jg It 4; aB /1* im

Mattie Ford Ferguson, (top), Gladys Ford Ferguson (center), and Margaret Ford Ferguson (below), are triplet sisters who have just been graduated with high honors from Southwestern university, at Georgetown, Tex. All majored in English and Latin. They are the daughters of Mr. and Mrs. G. R. Ferguson of Leesville, La.

MORGAN PROBE ISJjECESSED Income Tax Quiz Passes From Senate Committee to Justice Department. BY LYLE C. WILSON United Press Staff Correspondent WASHINGTON, June 10.—Examination of income tax records of J. P. Morgan & Cos. partners passed today from the senate stock market committee to the department of justice. Senate investigation of the House of Morgan came to a smashing finale Friday in revelation of the manner in which wealthy individuals may legally offset their income by sales of depreciated securities. A representative of the justice department was an almost unobserved spectator during the last • day as Pecora questioned Thomas S. Lamont, William Ewing and Harold Stanley about their personal stock transactions.

2. Cherry' Time. Marinna. Rego. 3. Black Comet, Wirt G. Bowman, Town Limit. 4. Technocracy, Brustigert. Dixiana entry. 5. Gyro. Bright Knot. Momo. 6. Labrot entry, Polydoros, Fair Rochester. 7. Through Ormond, . Sambo Brown, The Spaniard. 8. Scarlet Brigade. Foxland Hall. Bob Weidel. Best—Labrot entry. Track—Fast. At Belmont Park—1. Don Pedro. Snapback, Pardee. 2. No selections. 3. Black Buddy, Galabang. Fogbound. 4. Neverfade, Kerry Patch, Dark Secret. 5. Dark Winter, The Darb. Utopian. 6. Church Mouse, Water Witch, Esperanto. Best—Black Baddy. Track-Fast.

INDIANAPOLIS, SATURDAY, JUNE 10, 1933

CITY BUSINESS AND INDUSTRY ON UPGRADE i Every Line of Trade Shows j Definite Signs of Rivival, Survey Proves. STORES REVEAL GAINS Factories Call Back Some Former Employes, as Orders Increase. BY LOWELL NUSSBAUM Times Staff Writer Depression is beating a slow retreat, with industry and business bombarding it right and left, reports of definite improvement in economic conditions prove today. From nearly every line of trade come indications that the oppressive four-year reign of hard times is nearing an end. A survey conducted by The Times bring definite proof that the upturn has started, with retail stores reporting noticeable gains in sales, factories finding orders more numerous, and unemployment declining. Among interesting results of the survey are: Average daily hank clearings in May were considerably higher than in April, March, and February. Noticeable improvement in real estate and rental activities. Reduction in demands on township trustees for relief. Twenty per cent decrease in two months in number of men employed on made-work labor jobs. Many firms calling back some former employes. Manufacturers flooded with inquiries, many reporting increased production schedules. Retail prices of many items higher, and others scheduled to be increased as soon as new shipments, for which the dealers had to pay more, are received. Stores Show' Gain One downtown department store reported forty-two departments in May were ahead of May, 1932, with the total volume, in dollars and cents, ahead of the same period a year ago, despite prices being lower than in the former period. Particularly heavy were sales in ladies’ ready-to-wear and in furni- j ture departments. Another large store reported sales in April and May revealed a satisfactory gain over the same period a year ago, with new merchandise orders costing more and some lines difficult to obtain. Stores generally reported paying higher prices for articles ordered to replenish their stocks, and this rise in price must be added to retail selling price as soon as present stocks are exhausted, they said. Prices of some articles have been forced upward already, Made-Work Drops One wholesale firm, in receivership about two years, reported making a profit of several thousand dollars in May, the first month to show a profit since start of receivership. The rise in prices, with further rises in prospect, has resulted in city department heads receiving instructions to check up on their future needs so orders can be placed by Albert Losche, city purchasing agent, before any more advances are made.

The emergency work committee reported a decrease of 1,280 men on made-work jobs. There were 6,144 men employed in this work, two days a week, for a basket of food, the week ended March 25, and only 4,864 the week ended May 27. Walter C. Clarke, attorney for Mis Hannah Noone, Center township trustee, reported that the trustee's food costs in May were about the same as for the preceding month, despite reduction in the number of applicants, because of increased food prices. The most recent bulletin of the Indiana university bureau of business research reported gain of 3.1 per cent in Indiana employment in April, with 6.2 per cent gain in Indianapolis factory employment for the month. Average daily bank clearings for May w'ere far in excess of those for the last few months, although somewhat below those for May, 1932, largely because of the effects of the check tax, which became effective last July. Real Estate Gains Improved activity In real estate was reported by Lawrence G. Holmes, Indianapolis Real Estate Board executive secretary. In city property, the bulk of the activity is in small homes costing less than $7,500, he said, while there is some activity in farm and suburban properties. Practically the only residential construction is in the high price class. “Conditions of the realty market is definitely better than it has been in the last few months and a year ago,” Holmes said. “Prices have stopped going down and, in some cases, there have been slight increases. Several investment buyers are known to be quietly buying up income property. “The last few,' weeks have brought a rather rapid closing out of receivership and foreclosure property, which should result in stabilizing the market.” Factories on Upgrade Os thirteen representative factories where inquiry as to business conditions was made, only two reported not having experienced any definite change for the better. E. C. Atkins Company reported a definite improvement in production and orders in the last three or four weeks, conditions being better than in the last few months and than a year ago. A few employes have been (Turn to Page Three)

RECOVERY BILL PASSES SENATE FULL PUBLICITY ON INCOMES, AND TAX-EXEMPT BONDS LEVY VOTED

30-Hour Work Week Assured in First Codes for Industrial America Conferences Between Manufacturers, Labor Leaders and U. S. Representatives Are Begun at Capital to Discuss Fair Competition Plans. BY RUTH FINNEY Times Special Writer \\ ASHINGTON, June 10.—A work week for industrial America of thirty hours, or in some cases of thirty-two hours, will be established in the first codes of fair competition to be approved under the national recovery act.

This became evident today as conferences between manufacturers, labor leaders, and tentatively-ap-pointed officials of the new administration got under way at headquarters established by General Hugh S. Johnson, who is to administer the law. The iron and steel industry is anxious to have a thirty-two-hour week, composed of four eight-hour days, and indications are that this will be approved. Wherever possible, however, it is the apparent intention of the new administration to keep work hours as close to the thirty-hour week as possible. Textile Dispute Threatens A dispute with the textile industry threatens on this question. Mill owners are asking for a fortyhour week, and are asking also that the senate ban on price-fixing in connection with formulation of codes of fair competition be eliminated before the measure finally becomes law. If this is not done, textile men are threatened to abandon attempts at voluntary agreement, leaving the government to test its new power of prescribing arbitrary wage and hour scales for the’ industry. A number of manufacturers arriving in Washington are attempting to forestall unionization of their employes and collective bargaining by offering liberal wages and a thirty-hour week. According to present indications, terms of the bill requiring consultation between employers and workers before* scales are submitted strictly will be adhered to. Minimum Wage Delayed As soon as the bill becomes law, personnel of the new industrial administration will be announced. The principal advisers to serve with General Johnson have been selected, and have accepted their posts, it is understood. Plans for announcing, at the same time, a minimum wage for all American workers apparently have been discarded in order to promote organization of workers and conferences betw T een workers and employers on the subject. The recovery bill may become law before night. This depends on the speed with which conference committees of the senate and house compromise differences in the bill as passed by the two bodies. The senate’s ban on price fixing by trade associations, supervised by the government, threatens to cause most trouble in the industrial section. Conflicts Between Bills •A number of conflicts exist in the public works section of the bill. The senate struck out a provision that supplies used in all construe- i tion work under the act must be of i American production wherever these are available. It refused to accept a provision that minimum wages be fixed before asking bids fo r federal construction. It disagreed with the house plan of allocating road building funds partly on the basis of population. One of the most important amendments to this section provides that loans for construction may be made to states, cities and counties in spite of local constitutional in- ; hibitions against borrowing. This was sponsored by Senator Richard < B. Russell (Dem., Ga.). Another by Senator Edward P. I Costigan (Dem., Colo.) makes pos-; sible employment of aliens as well; as citizens on construction projects.

Surprise on Waterway On insistence of Senator David A. Reed <Dem„ Pa.) the senate adopted a requirement that river and harbor work undertaken under the bill must have been approved first by congress or by army engineers. One of the surprises of the Friday night session was the refusal of the senate to write into the recoverybill an amendment by Senator Robert La Follette <Rep., Wis.) guaranteeing to the state of New York all the United States’ share in waters of the St. Lawrence river, for public generation of hydro-electric power. President Roosevelt stronglyindorsed this proposal in a letter to Senator La Follette a few davs ago. In the Air Weather conditions at 9 a. m.: South wind. 4 miles an hour; veriable; temperature, 84; barometric pressure. 30.01 at sea level; general conditions, clear; ceiling, unlimited; visibility, 8 miles.

1,000 FLOCK TO M’CLUREjEACH County Authorities Join With Times in Opening of Guarded Pools. Two hundred. Four hundred. Seven hundred, and then, more than 1,000. That’s the way people flocked to McClure beach at Twenty-sixth street apd White river Friday afternoon to The Times-city recreation department swimming party. It was the first supervised municipal swimming spree of the year and, before the life guards at the scene, scores of men, women and children were awaiting the opportunity to splash in the waters. Lifeguards, who volunteered their services in co-operation with The Times, said ihat as many as 400 persons were in the river at one time and that the afternoon crowd easily passed the 1,000-mark. The beach opened again at 10 today and will be open Sunday from morning until night. In addition to McClure beach, Sheriff Charles (Buck) Sumner, following The Times’ plan for guarded swimming places, authorized opening today of the beach at Millersville road and Fall Creek. The Times also expects to an(Turn to Page Three) RAINBOW DIVISION IN PARLEY HERE TODAY World War Veterans Gather for Annual Reunion. Convention of the Rainbow Division Veterans’ Association of Indiana was held in the Washington today. More than 200 World war veterans attended. Informal reunions of various units of the One Hundred and Fiftieth Field artillery, “Indiana’s own,” took place this morning. The annual business meeting was to be held this afternoon and a dinner tonight. Present state officers are Fred K. Myles, Ft. Wayne, president; H. H. Maxwell, Indianapolis, vice-presi-dent, and Stuart A. Tomlinson Indianapolis, secretary. Harmon W. Young is chairman of the Indianapolis chapter and John M. Taylor is general convention chairman.

!*•' / aWMtt^' JMmßßmzm l I '

Lida Stafford's scheming' made trouble for all those who knew her, but it adds excitement to the new serial, ‘‘Bargain Bride.” It begins Monday in The Times

Entered as Second-Class Matter Lt Postoffice, Indianapolis

HEAT TO STAY OVER SUNDAY, IS FORECAST Slightly Cooler Tomorrow Night, Promise of Weather Man. HOURLY TEMPERATURES 6 a. m 73 8 a. m 82 7 a. m 77 9 a. m 86 Slightly cooler Sunday night and the remainder of the week-end with temperatures up to the high marks of the last four days was the forecast of the local United States weather bureau today. Death toll since the heat wave began Tuesday was increased to seventeen Friday, when Stanley Skorpski, 19, South Bend, drowned while bathing in a gravel pit. Temperature at 9 this morning was 86, four degrees higher than at the same hour Friday. Peak of about 96 was forecast for midafternoon today, equalling the June 10 high mark set in 1911, twenty-two years ago. J. H. Armington, meteorologist off the bureau, was careful to state that "cooler Sunday night” does not mean a great deal of relief, but temperatures from 1 to 3 degrees lower than have prevailed and about the same as those Friday night. There is no sign of a decided break in the heat wave, he said. Friday night was fairly comfortable for Indianapolis residents, and at 5 this morning the mercury stood at the comparatively low point of 71.

Star Spangled Gold Badge of Office Is Presented to Pleas Greenlee.

PLEAS GREENLEE, secretary to Governor Paul V. McNutt, has joined the ranks of the “star spangled men” at the statehouse. He now carries a gold badge. It bears the title of his office and the great seal of Indiana. Captain Matt Leach of the state police, who presented the badge to Greenlee with ceremony, said he thinks all state officials should carry such ensignia. The badge cast $8 (wholesale) and was bought by Leach, Harry McLain, state insurance commissioner, and Martin Lang, state food and drug department chieftain in the state health board office. VARIED HAUL MADE BY POLICE RAIDERS Negro Is Held on High Bond, Held for Federal Officers. Police made a miscellaneous haul Friday night when they raided the home of William Thomas, 53, Negro, 238 West Fifteenth street, and his tobacco and soft drink place at 1501 North Senate avenue. Among the articles they said they seized were: Ten gallons of whisky, a special police badge, three books of baseball tickets, a double handful of dice, an electric whisky “ager,” a oag of cartridges, and a police revolver from which the numbers had been filed. Thomas was slated on high bond for vagrancy and is held for federal authorities.

IN CONGRESS TODAY

B.v United Press SENATE Considers conference report on home mortgage relief bill and other last-minute legislation. Conferees meet on national recovery bill. HOUSE Votes on veterans' economy compromise. Appropriations committee meets to report deficiency appropriation bill. Today’s Short Stor\ • j A dozen persons responded to a ten-word for sale ad inserted in The Times by Mrs. C. Mack, 1842 Orange street. The ad offered an Eden electric washer for sale and two days’ publication was all that was needed to sell the washer. The cost for the following ad for two days was 54 cents. ELECTRIC far tale. Reasonable. Call PB-MKW-R. LOW COST RESULTS Hundreds of persons use Times Want Ads daily because of the spetdy results obtained at the low cost of only 3 cents a word (the very lowest rate in Indianapolis) Call Riley 5551 or come to Want Ad Headquarters, 214 West Maryland street.

Capital EDITION PRICE TWO CENTS Outside Marion County, 3 Cent*

Sweeping Changes in U. S. Revenue System Adopted in Measure. . GOES TO CONFERENCE History-Making Act Likely to Be Enacted Finally by Tonight. BY MARSHALL M NEIL Times Special Writer WASHINGTON, June 10. —Sweeping changes in the ! federal rex enue system ap- ! proved late Friday night by a tired senate today must stand the test of a conference of congressmen anxious to go home Sunday. The sons of the country’s two foremost political dynasties, young Bob La Follette of Wisconsin and Bennett Champ Clark of Missouri, succeeded in having the senate vote full publicity for income tax rei turns, and also federal taxation of all securities now tax exempt. Tax Program Approved The senp.te in approving the industrial recovery bill, 57 to 24, likewise passed the new re-employment tax program, which for the first time since war days levies on excess profits of corporations. This program, intended to raise $227,000,000, and plug up holes in the law so that in the future J. P. Morgan and his partners will have to pay income taxes, is expected to prevail over the re-employment tax plan of the house. With the addition of the Clark amendment, taxing the exempt securities, the total yield oi the bill may be increased $150,000,000 to 200,000,000. Levy on ‘Tax-Exempt’ Securities Senator La Follett° called upon the words of his late illustrious father, who nearly became President. to help him obtain income publicity in the senate. He complimented that body on its effort to plug up holes in the present law, but asserted that full income tax publicity would do more to stop tax evasion than any other amendment conceivable. The senate agreed with a tremendous majority that the conference today can not ignore. The vote was 55 to 27. Senator Clark, whose father also nearly became our chief executive, proposed his amendment taxing tax-exempts with only a few moments’ debate. The issue, he explained, had been argued for years, but he pointed to the fact that the Constitution, in the income tax amendment, permits congress to levy upon income from whatever source desired.

Sales Tax Is Defeated Although he took cognizance of the supreme court decision on this l issue, he said he believed congress had a perfect legal and moral right to tax securities now free of tax. Under existing law, state, county and municipal bonds generally are | tax exempt, and practically all {United States Government bonds i are exempt from the normal in- | come tax rates. Some are subject to j the surtaxes. ■ under the Clark amendment, i which probably will experience some difficulty in surviving today's confeience. would be on the same basis, | subject to normal and surtaxes. The ! Clark amendment was approved 45 to 37. Earlier in the night, the sales tax, as expected, was given another walloping defeat. The proposal, presented by Senators David A. Reed fßep., Pa.), David I Walsh f Dem., Mass.) and Harry F. Byrd <Dem„ Va.), proposed a l'i per cent levy on consumption, the authors agreeing to certain exceptions, such as agricultural products, clothing, medicine, etc. Boost Gasoline Tax This sales tax was also advocated as the means of repealing a large group of the existing nuisance taxes, among them the federal levy on radios. “If this is adopted,” Senator Reed said, “one can hear Colonel Howe more cheaply.” He was referring to Colonel Louie Howe, President Roosevelt's secretary, whose broadcasting at the reported fee of SIOO a minute has aroused senatorial ire. The senate’s re-employment program now' consists of these levies: 1. An additional % cent gasoline tax. 2. A 1-10 of 1 per cent on the net worth of corporations, and an excess profits tax of 5 per cent, starting with profits over 12% per cent, imposed to assure no under-valuation by corporations. 3. A flat 5 per cent tax on dividends. House Plan Less Popular 4. An increase from % to 1 per cent as the penalty for filing of consolidated returns by' corporations. 5. Several administrative changes, which are expected to strengthen weak language in the present law, stop tax evasion, and increase revenues. 6. Taxation of tax-exempt securities. Without the last named tax. whose yield is uncertain, these levies will raise an estimated total of $227,000,000, more than enough to pay annual service charges on the $3,300,000 000 public works bonds to be issued under terms of the same MIL