Indianapolis Times, Volume 45, Number 125, Indianapolis, Marion County, 4 October 1933 — Page 11

Second Section

BARE PROFITS OF INSIDERS’ IN STOCK QUIZ Clarence Dillon, Wall St. “Wizard,’ Questioned by Senate Body. Rii Frrippa-Ifowarrt Xncepaper Alliance WASHINGTON. Oct. 4 Clarence Dillon's claim to financial wizardry, long gossiped about Wall street, was established today by his own story to the senate banking committee of how he operates with other people's money. Under questioning from Ferdinand Pecora, committee counsel, he told how he financed two investment companies capitalized at $90.000.000,000 by a $5,100,000 shoestrong and large contributions from investors and controls them under conditions that assure Dillon, Read & Cos. the bulk of profits. Large Gains Admitted Having explored the peculiar form of the Dillon investment corporation. a model of the boom era when a total of $4,000,000,000 was poured into such enterprises, the committee prepared to get details today r s j handsome profits to “insiders” in Dillon, Read, from investment cor- j poration stock purchased at 20 cents a share and sold on the market as h’gh as $72 a share. The slender, ruddy-faced finan- j cier. chief stockholder in his com- ; pan.v, made no profits from sale of ■ stock because he still has it. he told the committee, but he confirm°d Mr. Pecora’s finding that others in the firm sold for large gains. Losses Are Absorbed Mr. Dillon, who shuns publicity, j was a very ready witness before the senate committee, protesting amiably only occasionally at the construction some members, particularly the multi-millionaire Senator James Couzens (Rep., Mich.), put upon some of his operations. The inquiry revolves about two investment trust corporations into which variety of investments are gundled—the United States and Foreign Securities Corporation and the United States and International Securities Corporation, the latter built upon the successful model of i the former. Mr. Pecora plans to inquire as to how investments that turned sour were dumped into the pot in these investment companies so their ill effects could be absorbed by more productive ones. Reporter Dies in Crash PAOLI, Ind., Oct. 4.—lnjuries suffered in an automobile accident Sunday resulted in the death late yesterday of Miss Jessie Norman, 21, Paoli Republican reporter.

This Section of Today’s Times Contains m 4 Full Pages of Special BARGAINS—for BBB jps**^ l- cXi'^fy Mg? SBBB JmtSgWp WBwBBS BgM^ : bbbb Os Ayres 61 st ANNIVERSARY SALE Don’t let the last three days of the Anniversary Sale ur\ i • When you shop these last three days you’ll find that goby without SHOPPING in Ayres’Downstairs Store... we have created scores of EXTRA-SPECIAL BARshopping for all the things you need and can afford this EIX dll TBS ** GAINS to make it even more worth your while to do ALE Fall and \\ inter. Thousands of people have saved by your Fall and Winter buying here! You’ll find good spending here during the last two weeks. We expect - selections of desirable, dependable Ayres’ QUALITY thousands more Thursday, Friday and Saturday. Theen- JSRA merchandise in all departments offered at the very thusiastic buying during the Anniversary Sale clearly in- rock-bottom price levels! DON’T WASTE ANOTHER dicates shoppers realize that values in every department j/Bf MINUTE! Be here tomorrow, planning to replenish are EXCEPTIONAL! wardrobes—beautify your home—restock linen closets! DOWNSTAIRS * AT * AYRES

Full Leased Wire Serrlce of •he I nifed I’rese Association

GOLD PRICE BOOST SENDS SCORES TO MINES Airplanes Lead Modern Rush as World Concentrates on Search for Metal

Ear! Sparling tells the highlights of this first world-wide zoic rush in historians discusses its economic implications In a series of articles the second of which follows. BY EARL SPARLING Timr* Special Writer PATAGONIA. Tasmania, Tanganyika, Michoacan, Maranhao. Albacao—in all those places men are searching for new gold. No use going t-o the atlas. Nearly anywhere you might put a finger men are searching—in Victoria, Queensland, New' Zealand, New Guinea, the Transvaal and the Kenya. West Australia, NewSouth Wales, North and South Rhodesia, in Canada, Peru, Mexico, the Philippines, in Greece, in every gold-bearing region of the United States and even in Spain—that land w’hich sent savage Cortez and Pizarro forth to slaughter for gold. It is a world phenomenon, including virtually all lands and all races. Only one major nation — France —and four smaller ones— Belgium, Holland, Switzerland and Poland—are still on a free-work-ing gold standard, with Germany and Italy on a restricted standard. All nations, including these seven, are trying either to get more gold or to preserve the stocks they now have. All of which means that the gold standard practically has collapsed and that for the greater part of the world gold is no longer fixed at an international gold standard price equivalent to $20.67 an ounce. The very fact that so many of the nations need gold to get back on the gold standard forces gold up in terms of their own currencies. On May 2, when President Franklin D. Roosevelt declared his historic embargo on American gold, the free market price jumped to $24.28. It has been rising steadily since. On Sept. 8 the price was $29.62. On Sept. 23 it was $31.86. With the price going up, it becomes profitable for men to go out and find new gold. Therefore, they are doing it around the earth. Here in the United States it is difficult to realize fully w-hat is happening. Though off the gold standard. America remained within a closed circuit until Aug. 29. The official price for gold stayed at $20.67 an ounce and no gold, either hoarded bullion or newly mined oar, could be shipped out of the country and sold at the world price. Across the border in Canada gold was selling at $26 to S3O an ounce, but in the United States the same ounce was still worth only $20.67. President Roosevelt changed that Aug. 29 with an executive order authorizing American miners to consign new'ly mined gold to the United States treas-

The Indianapolis Times

ury for sale abroad at the highest price obtainable. This has brought America in full contact with the world-wide gold rush. The result, inevitably, will be a greater rush to find newgold in this country. So that what is happening in the far places of the earth has suddenly taken on more meaning. ana WHAT has happened and is happening is a kaleidescopic story. . . . In the summer of 1932 Jay and Jack Kenty, veteran prospectors, drifted into the pathless north country that lies betw-een Gogama, on the Canadian National railway, and Chapleau, ninety miles west, on the Canadian Pacific. They got to Brett lake and found gold. Within a week the rush was on. Seaplanes dropped out of the sky, settled down upon the lake. Every plane brought its

- *•" ’H-1-....i -.... tu. .f„„ n <• ’ „ ^ e is, ? n Throughout western Australia

—Bv courtesy of National Geographic Magazine. Converted New Guinea cannibals mine gold with hydraulic potver in the Bulolo fields. But (right) one of thousands of unemployed “burns the button” in abandoned California diggings—taking out the precious metal by means of a frying pan, a hollowed potato and quicksilver.

load of men and women seeking gold. By winter, a log towrn, Swayze

INDIANAPOLIS, WEDNESDAY, OCTOBER 4, 1933

City, had come into existence, and a rough road had been cut through the forest to Gogama,

forty-five miles away. ThU"town now boasts a rooming house, with a steam bath and a lady barber, who seats her customers in a kitchen chair outside a log cabin. “You’re next, Mike; sit there on the stump for a moment. I’ll be through with Joe in a jiffy.” Observe what the flying machine has done for Swayze City. Each day it brings in fresh meat and fresh vegetables, such a plentiful supply that dinner costs only 50 cents at the log boarding house. It brings in supplies for

It takes seven days by pack train to cross five mountain ranges, pierce the jungle and get to the Bulolo gold fields of New Guinea, but the airplanes shown above fly in all the machinery in seventy-five-minute trips. the tw-o stores and equipment for the miners. It even brings in the necessary dynamite. Last spring as pilot Phil Sauve w r as taking off from Chapleau with a load of dynamite, one of his skis broke. An airplane filled with dynamite and only one ski to land upon—such are the thrills of the 1933 gold rush. Pilot Sauve brought his plane down safely on the one ski and the miners went on mining gold. Now' shift to Queensland, Australia. Late last year a w'andering prospector chipped at an outcropping of rock. He examined the result and suddenly grew tense. Hurriedly he staked out his claim and another gold rush was on. Almost within hours other prospectors had arrived and were “tying on.” Thousands are busy mining gold there now'. Throughout western Australia there is similar excitement. In dozens of likely places men are chipping and panning gold, and always the airplane follows them. No great reef of gold has been discovered, but enough new gold had been produced by the middle of 1933 to raise Australia's output by more than $2,500,000.

Second Section

Entered as Second-Class Matter at Postoffice, Irilanapolis

THE story jumps to Alaska. Up in Ketchikan a veteran operator named J. P. Raust has equipped two planes to prospect the great Arctic barrens between the Yukon river and the Arctic ocean. He hopes to find anew field that will rival the old Klondike and the Tanana valley. Meanwhile. veteran mining operators are not the only persons in Alaska who are hunting gold. There is the story of a preacher who w r as invited to dinner in a home in one of the old mining towns, now almost deserted. When he arrived there was no one in the house nor in the town. His host had killed a goose in the reverend's honor and in the goose's craw had found a gold nugget. The whole town was out searching for gold. Nor do you have to go to Alaska to hear such a story. A few' weeks ago Frederick Blaschke. sculptor, killed a duck on his farm at Cold Spring. N. Y. In the duck's crop w-ere glittering grains of gold. The find caused less excitement in Cold Spring. Cold Spring is not as goldminded as Alaska, but if gold keeps going up it may learn to be. The story jumps to Brazil. . . . “The discovery of gold in large quantities in the state of Mahanhao has demoralized the region. Not only are the farmers abandoning their farms in quest of gold but the state governments have ben obliged to send troops to maintain order. According to dispatches. 6,000 prospectors are digging gold, registering a daily production of about 8 4-5 pounds.” a a a AND to British Guiana , . . “Hundreds of gold seekers have encamped along the banks of the Okuwa river drawn to the Honey Camp area by reports of extensive gold discoveries. First news of the strike reaching the coast started a stampede of miners—old-timers and amateur alike. A pocketful of dust and nuggets panned from the river silt was valued at $3,000 by the department of mines. A world-wide gold rush is a queer thing. Apparently it has resulted in new discoveries of gold everywhere. They have even discovered more gold in the Transvaal, greatest gold-producing region in the w'orld. Reports indicate that an extension of the great Rand reef, forty miles away from the old field, has been discovered. “This was done with a magnetometer, another new tool to help miners. A magnetometer is a highly sensitized instrument which shows any deviation from ordinary geological formations. It can only be used, how'ever, in regions w'here there is no complexity of ores. Next—Days of ’49 Again.

SCORE MAYOR IN ELEVATION PLAN DELAY Track Group Lays Charges Before U. S. Officers in Quiz. Track elevation action from Mayos Reginald H. Sullivan has been demanded by the executive committee of the South Side Track Elevation league, following a conference with United States government officials on the proposed project. Conferring with federal officials, members of the track elevation organization charged Sullivan with being "out of sympathy with the improvement. Repeated calls ha - e been made upon the mayor, to persuade him to call tity. county and railroad officials together to agree on the track raising program, they said. The mayor has promised to do so in each instance and "then forgot it." committeemen charged. They assert the mayor is “sidetracking” the track elevation petition m favor of the proposed flood prevention work for White river. Speaking for the government, the United States official pointed out that Jan. 2 was the closing date for any requests for loans from the R. F. C. and that "someone in the | city should get busy and draw' up j the required papers, for considerai tion of the board of directors of the R. F. C. if Indianapolis is to obtain ■ a loan for track elevation or other public improvements.” Six million dollars will be needed to complete the be- elevation program, it is estimated. The railroads, under law, will pay half, the city 35 per cent and the county 15 per cent. However, it was pointed out that 30 per cent of the entire cost would be paid by the government, should a loan from the R. F. C. be obtained now. BUTLER DIVISION GETS LARGE ENROLLMENT Night School to Be Featured by Recreational Venture. More than 480 persons have enrolled in the seventy-seven courses offered in the Butler university evening and extension division, according to Dean Albert E. Bailey. Under anew system of the division, enrollment in the night high school may be made at any point during the semester. Pupils in the night school may take examinations at any time. Tuesday and Thursday nights will be given over to “play night,” a recreational venture begun last January. All types of indoor sports will be featured or. these nights.