Indianapolis Times, Volume 45, Number 143, Indianapolis, Marion County, 25 October 1933 — Page 1

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TWO MORE STATE BANKS HELD UP

Lindbergh Kidnap Suspect’s Bond at $50,500

INCREASE BAIL OF MAN HELD AHOSTON New Jersey, New York Police Join in Quiz of Wrestler. RAISED FROM SIO,OOO Definitely Branded by Police as One of ‘Key Men’ in Crime. By United Presß BOSTON, Oct. 25. —Bail was increased from, SIO,OOO to $50,500 today in the case of John Gorch, held as a suspect in the Lindbergh baby kidnaping and murder. The status of Gorch, 37, an alleged swindler, as an aid in the solution of the crime, was clouded in police taciturnity and variance of opinion. Gorch, former resident of Hopewell, N. J.. was quizzed today by agents of the United States department of justice and New Jersey state. New York city and Boston police. Lieutenant James Finn of New York, former bodyguard of Colonel Charles Lindbergh, emerged from the questioning saying progress had been made in the attempt to solve the kidnaping mystery. He was quoted as saying a “clew” had been garnered from the conversation. Developments came rapidly upon the arrival of New York and New j Jersey officers here yesterday. A raid on Gorch’s south end apartment revealed, police said, names and addresses in New York and New Jersey that should prove of great importance in the case. Gorch told his questioners that on the day of the kidnaping he was in New York City with friends whose names the police refused to divulge. He also told them he had a halfsister who owned a farm near the Lindbergh home in Hopewell and that he visited there two months after the child was taken. OWNER OF 17 DOGS IS FINED IN CITY COURT Neighbors Bring Charges Against Woman Kennel Operator. Attempt of Miss Wilhelmena P. Adams, 2501 Churchman avenue, to retain possession of seventeen dogs will be carried to circuit court, it was indicated today after she was fined $lO and costs in municipal court on a charge of violating a city ordinance against harboring annoying dogs. Appearing in municipal court for the third time on charges brought by neighbors, Miss Adams defended her ownership of the dogs on the grounds that she operated a kennel as a livelihood. She had been ordered by the court to reduce the number of the dogs. Her attorney, in earlier hearings. said today she had only seventeen of the original forty-seven. ATTEMPTS TO FORM NEW FRENCH CABINET Sarraut Accepts Invitation of President Lebrun By United Press PARIS. Oct. 25.—Albert Sarraut today accepted President Lebrun's invitation to attempt to form anew cabinet. Times Index Berg Cartoon 10 Bridge 16 Broun 10 Comics 15 Crossword Puzzle 13 Curious World 15 Editorial 10 Financial 11 Fishing y 13 Hickman—Theaters 7 Radio 13 Russia —A series 3 Skvball Contest 13 State News 13 Woman's Page 6-7

Anti-Pollution Frankfort has waged a successful battle against stream pollution. Wildcat creek, which runs through the city, once was infested with pollution. Fish died. The water was a mass of filth. Today, that has been altered. The creek is clear and bubbling. Fish live and the stream adds to the attractiveness of the town Read the story of Frankfort’s victory over this situation which has been rampant in streams throughout the state. The story is on the first page of the Second Section of The Times today.

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VOLUME 45-NUMBER 143

Chief Deputy Warden at State Prison Is Fired; Trustees’ Report Blames ‘Negligence’ for Break

WARDEN IS PRAISED

*! IB Warden Louis Kunkel Unlimited power in discharging and hiring employes at the Indiana prison at Michigan City was given Warden Louis Kunkel today by the trustees and Governor Paul V. McNutt. While two deputy wardens were ousted by the trustees as the result of the recent prison break, Kunkel was given high praise and officials expressed confidence in his ability. REVENUE FROM BEERTAX IS UP Schools to Receive $1.33 for Each Pupil Nov. 1 Instead of $1.25. Excise revenues to Indiana public schools, estimated by the state administration at $1.20 a pupil will be $1.33 when the Nov. 1 distribution is made, it was announced today. Figures presented by the excise department show that $874,717.06 will be distributed Marion county’s share will be $95,130.91. The money is distributed on the school census of 657,682 pupils in public and parochial schools, but goes to the public schools only, it was pointed out. Majority of the funds come from gallonage tax on beer. $63,232 IS ADDED TO COMMUNITY FUND Workers Report 37.6 Per Cent of Goal. (Early details on Page One. Second Section) Community Fund workers reached 37.6 per cent of their goal today, it was reported at a noon meeting in the Clavpool. Today's collections total $63,232. bringing the total pledged to $309,662.42. Hourly Tempertaures 6a. m 34 10 a. m 39 7a. m 33 11 a. m 40 Ba. m 35 12 (noon).. 41 9a. m 38 Ip. m 43

Rampant Terror Mob Feared Ready for ‘Big Coup’

DRIVEN by insane impulses following years in prison, and armored with the knowledge that they have nothing to lose, a mob of former convicts and their bandit pals today still defied the law enforcement agencies of Indiana. Striking with swiftness and precision that never have been recorded in the annals of Indiana crime, the desperadoes have been successful in escaping the state prison at Michigan City, looting two police headquarters of weapon*, killing a sheriff when they freed one of their mob and running free with SBO,OOO from two banks in less than twenty-four hours. Every police department in towns of any size in Indiana today is under orders to be on the lookout for the gang. With failure the “reward.” officials were convinced today the gang now is ready to stage its gigantic coup. What this will be is not known, but several enforcement chiefs have admitted their fears that the gang will roar into the state prison, the reformatory at Pendleton or the Marion county jail Last night, somewhere within a hundred miles or so of South Bend, the gang gathered to celebrate its successful robbery of the Western State bank of South Bend. Monday night the gang gathered in its hideout, this time to talk over the work of a profitable day—the $75,000 stickup of a Greencastle bank. It was reported from various sources today that the banking interests of the state are prepared to pay rewards for information leading to the discovery of the gang's hideout, and the loot that has been sacrificed. B B B Vl/’ORKING quietly were agents of the federal govem- * * ment. using their own system of clew pursuit, hoping they may be able to halt the marauders before the final attempt results in a huge toll of life, V O.

The Indianapolis Times Fair tonight and Thursday; rising temperature, but frost probable tonight.

H. D. Claudy Is Ousted by Governor, and Albert Evans, Assistant, Also Is Relieved From Duty by McNutt as He Bares Report on Escape of Ten Convicts. Governor Paul V. McNutt today made public the Indiana state prison trustees’ report on the prison break of Sept. 26, concurrently with announcement of dismissal of H. D. Claudy, assistant warden. The report charged “gross negligence’’ in connection with the break.

Albert Evans, second assistant deputy warden, also was fired. He accompanied the ten convicts across the prison yard from the shirt factory where they had organized and armed. Evans was forced to lead the procession at the point of a pistol. Trustees blamed Claudy for putting too many new guards in the shirt shop, but Governor McNutt set out in a statement today that ‘the break was not due to any changes in personnel during recent months.” Kunkel Voted Confidence More than half of the old guard has been replaced under the McNult administration by “deserving Democrats.” Louis H. Kunkel, a Michigan City attorney, prominent in the McNutt campaign, was named warden in place of Walter Daly, who had been at the prison for more than twentyfive years. Both trustees and the Governor expressed confidence in Kunkel in their statements today. Claudy was charged in the trustees’ report with “gross negligence in the supervision of the institution,” and three points set out to support the charge. They were: First: Permitting two of the escaped prisoners to unpack carload shipments of materials for the Gordon Shirt Company unsupervised. This was considered the avenue through which the pistols and ammunition were smuggled into the prison yard. Second: Putting all new men, with one or two exceptions, in charge of the prisoners working in the shirt shop. Third: Failing to make prompt reports to Warden Kunkel regarding men escaped from the “honor farm,” where trusties are employed. Prison Is Undermanned The report was based on evidence procured from questioning all officers and guards who witnessed the escape. It points out that the prison is undermanned by at least twelve officers, needs new yard lighting equipment, and has an inadequate turnkey system Recommendation is made that a freight house be built outside the north gates and that all shipments be checked there before entering the walls. In closing, the report said: “This board has confidence in the ability of Warden Kunkel. We feel that he should be given power to immediately discharge any employe of this institution that he thinks is not fit to be in his present position, and replace him with a man of his own choice. “Inexcusable Negligence” “That he be given power to correct any irregularity that he sees at the prison at the present time. We are frank to say that this board will stand back of him to a man, to the best of its ability.” Governor McNutt’s statement declared that the evidence “reveals inexcusable negligence on the part of responsible prison officials over a period of years.” It pointed out that all guards, who might have blocked the escape, were “experienced men. who had

INDIANAPOLIS, WEDNESDAY, OCTOBER 25, 1933

been employed in the prison for some time.” It continued: “Failure to exercise proper caution and to maintain strict discipline can not and will not be tolerated in any of the state’s penal institutions. Necessary changes are being made.” Declaring that the trustees’ recommendations will be carried out, the Governor concluded: “I share the board’s confidence in Warden Kunkel and shall give him wholehearted support in the performance of his important duties.” Mr. Claudy has been at the prison since 1909. He came from Frankfort and is listed as a Democrat. Warden Kunkel announced that Lorenz C. schmuhl a Republican, who has had twelve years service at the prison and is now night captain, will be promoted to Mr. Claudy’s place. First Deputy B. C. Ferguson remains and two more officers are to be added to the yard force, Mr. Kunkel said. Fred Burlow, turnkey on the main gate when the prisoners escaped, has suffered a nervous breakdown, it was reported, and resigned. Trustees are Arthur L. Denison, president,;. Jess C. Andnew, vicepresident; J. T. Arbuckle, secretary, and Robert W. Grafton, treasurer. JURY VENIRE ADVERSE TO DEATH PENALTY 175 Talesmen Rejected at Ajamie Murder Trial. Stumbling repeatedly over public disapproval of capital punishment, state’s attorneys had exhausted nearly all of the last of 175 prospective jurors sought for the murder trial of James Banks, Negro. With eleven men tentatively approved at noon, attorneys were hopeful of completing the panel this afternoon. The trial started Monday. Banks is charged with murder of Sam Ajamie, grocer in the 1400 block Roosevelt avenue, during an attempted holdup last year.

Lutz May Rule Liquor Sales to Homes Is Legal

‘By the Drink’ Purchases May Be Barred by Attorney-General. An opinion from Attorney-General Philip Lutz Jr., regarding establishment of state liquor control regulation with completion of repeal ratification, will be ready for Governor Paul V. McNutt by the end of the week, it was learned today. It is reported that the opinion will place preparation of the regulations in the hands of Paul Fry, state excise director, to obviate necessity for a special legislative session. With Governor McNutt definitely opposed to a special session, and also

Shortly after this story of the activities of Indiana’s terror mob was written, a man and a woman held up a Fillmore (Ind.) bank, kidnaped the assistant cashier and escaped with loot, and a bandit robbed a Modoc find.; bank of S4OO. The robberies, making four in three days, are instances of the sweeping drive being made by outlaws.

Police officers are convinced the mob will stop at nothing and. with the arms already in its possession, will stand firmly behind the theory of “shoot it out.” Chicago and every other gang holdout in the middle west and the state are being watched for the gang that has thrown Indiana into the first uproar of this type. Police officers, however, point out that the gang already has passed through some of the largest towns of Indiana before and after staging the robberies and never has been recognized. Cars have been exchanged in towns, as was shown Friday night in Kokomo after the robbery of the Peru police station a few miles away, but no one ever has been able to get near the gang. One city police official pointed out to The Times that the gang was able to escape police near Indianapolis a few days after the state prison delivery and now, with new clothes, better autos and a general plan of action laid out, the mob will be more elusive than ever. Persons who are familiar with the territory in the vicinity of the Illinois-Indiana line in Parke. Fountain. Warren and Benton counties point to this area as the logical hideout for the gang. Working from this territory, west of Lafayette, the gang could penetrate into the area of

$31.36 IS SET AS GOLD PRICE BY TREASURY Value of Dollar Drops as U. S. Starts Buying at High Rate. By United Press WASHINGTON, Oct. 25. —The government today began its open market gold purchases at a rate of $31.36 an ounce in President Roosevelt’s new price-lifting and monetary program. Jesse Jones, chairman of the board of the Reconstruction Finance Corporation, made public the country’s gold price after a conference this morning with Dean Acheson, undersecretary of the treasury, and Henry Morgenthau Jr„ farm credit administrator. Payment for the gold will be made by the RFC in its new ninety-day debentures. The price set in Washington was 22 cents above the price fixed in London today, reckoned on noon exchange rate for the pound. The London price at that time was $31.14. The price for gold set yesterday at Washington was $29.80. The increase in this price, as compared to today’s price, was $1.56. The statutory price of gold in the United States is $20.67. The newly announced price was $10.69 above the old statute price of $20.67. At the new price, the gold value of the dollar is 65.91 cents today against 69.36 cents yesterday. The debentures offered in payment for the gold by the RFC will bear an interest rate of % of 1 per cent annually. Newly-mined gold is to be deposited in the government’s mints and assay offices on which RFC debentures will be paid. Jones said he was uncertain as to whether this price would be fixed daily or as to how much of the metal would be purchased in this manner. Secretary William H. Woodin was absent from the treasury today, the third time in the past few weeks when he took no part in momentous treasury decisions.

on record against return of the “open saloon,” it is predicted that the regulations will permit liquor sales in packages for home consumption. Sales may be handled through drug stores, groceries and other marketing channels under special permit similar to those governing beer sales, it is pointed out. No drinking will be permitted on the premises. Such an arrangement at first will make it possible for the administration to stall special session demands temporarily, and repeat its action in authorizing draught beer sales. “By the drink” liquor sales will be held as a trump card, to be played when special session demands again exert strong pressure, it is predicted.

Greencastle, South Bend and Peru and still be within safe driving distance of c.an headquarters. an a TT also is pointed out that the Auburn police station 1 holdup was staged two days after the slaying of Sheriff Jesse Sarber of Lima, 0., Oct. 12. The convicts, it later was learned, had been hiding out in the Lima territory before the slaying and apparently had staged the Auburn robbery as they swung into their Indiana hideout. Now, experts are convinced, the gang has forsaken this area. John Dillinger, one of the leaders of the mob, is known in Indianapolis and recently state police went to the home of his father at Mooresville. where they were told by the parent that his son had not been there nor had he communicated with the family. An Indianapolis police officer, who has been successful in the hunt of several criminals, told The Times: “This is the most desperate situation ever faced in Indianapolis and the state. The mob would shoot to kill at any time, whether interference consisted of a group of police officers or a lone citizen. “protected as they -are with bullet-proof vests and armed with submachine guns and the best of shooting equipment, the ordinary police officer will find his chances less than even when the showdown finally comes. “The only way to shoot at that gang is with machine guns or long-distance, accurate rifles. The only targets left for the police are heads and those are hard to hit at most distances. That’s the only way this gang will be stopped. “The ideal situation for the police would be to draw alongside their car and open fire at close range. The result of a gun battle like that would be horrible.” y

CASHIER AT FILLMORE KIDNAPED; S4OO LOOT OF GUNMAN AT MODOC

u tt a SUSPECTED BY LEACH

ft ' W r I|||P Mary Kinder Have you seen this woman? She is Mary Kinder and she is believed by Captain Matt Leach of the state police, to be with members of the Indiana “terror mob” of bank bandits. Police attention was directed to her by a raid in which her diary disclosed several references to John Dillinger, the mob leader. LEGION ENTERS WARONCRIME Indiana Veterans Promise Militant Action in McNutt Letter. Militant action against the Indiana crime wave was taken today by the Indiana department of the American Legion in a proclamation and a letter addressed to Governor Paul V. McNutt. The letter to the Governor, signed by V. M. Armstrong, department commander .stated that 30,000 legionnaires in Indiana are ready to aid the state in any way in which they can be of service. “Suppression of crime received our earnest attention at the Chicago convention,” said Mr. Armstrong. J ‘A resolution was adopted unanimously whereby the American Legion pledged its unqualified support and aid to the constituted authorities for the prevention and suppression of crime. “As commander of the American Legion, department of Indiana, I am issuing a proclamation to all legionnaires urging their utmost co-opera-tion with all law enforcing agencies to the end that this unprecendented crime wave can be brought to a speedy termination.” LEAHY GETS 10 YEARS Chicagoan Pleads Guilty to Culver Bank Holdup. By United Press PLYMOUTH, Ind., Oct. 25. Thomas Leahy, 38, Chicago, pleaded guilty today on charges of robbing the Culver Exchange bank and was sentenced to ten years in the state prison.

Entered as Second-Class Matter at PostofYice, Indianapotia

State and City Police Flounder Helplessly Under New Wave of Banditry; Terror Mob’ Believed Clear. VITAL CLEW TO GANG BELIEVED HELD Sheriff’s Posse Reported in Close Pursuit of Putnam County Stickup Pair, Man and Woman. State and city police today were floundering helplessly under anew wave of bank banditry that included the holdups of institutions in Putnam and Randolph counties. The Fillmore (Ind.) State bank was robbed of $l3O in silver by a bandit, who fled from the scene in an automobile driven by a woman companion. A few minutes later state police headquarters received a report that the Peoples’ Loan and Trust Company in Modoc, Randolph county, had been held up by a lone bandit who drove away with loot estimated at S4OO. No connection was seen between the latest crimes and the band of convicts which has been blamed for the terror wave which has swept the state since their escape from Michigan City and alliance with other members of the gang. A1 G. Feeney, state safety director, left shortly before 1 this afternoon for Plainfield, where it was said definite clews had been obtained regarding whereabouts of the convict gang. A sheriffs posse also was said, to be in close pursuit of the Fillmore bandits, Who were described as driving a decrepit, light car. By United Press GREENCASTLE, Ind., Oct. 25.—A man and a woman held up the Fillmore State bank, eight miles northeast of here, today, but escaped with only $l3O in silver. They kidnaped Cashier Amos Hunt and released him about one mile west of town. A short time after the robbery, it was reported that a

posse of sheriff’s officers and state police were in close pursuit of the bandit car. The male bandit entered the bank about half an hour before the holdup and talked with Hunter at length about the purchase of a farm. Hunter was alone. In the meantime, the woman accomplice entered, transacted some minor business at the cage, and walked outside to a parked automobile. As Hunter turned his back, he was commanded to “stick ’em up.” The bandit went into the vault, but took only silver, overlooking the currency that was there.

By Time* Special MODOC, Ind., Oct. 25.—A lone bandit, armed with a pistol, invaded the People’s Loan and Trust Company shortly after noon today and fled with approximately S4OO. Modoc is in Randolph county. A second bandit remained outside in an automobile while his com- while the robber scooped up money panion conducted the holdup. lying on the counter and in the H. R. lester, cashier, and B. D. cash drawers. Jordan, his assistant, were in the The bandit escaped south on state bauk. They were commanded to put road 21 in an automobile containup their hands and turn their backs ing no license platee. Six state policemen were dispatched to Danville today on information from Sheriff Lewis L, Pounds that a farmer near that city had seen John Dillinger, bank robbery suspect, and four other men in an automobile near there. The farmer, Sam Jordan, has a niece who married a brother of Dillinger and was positive in the identification, the sheriff reported. The men were sighted near Jordan’s farm about midmorning and were riding in a large automobile bearing Ohio license plates, police were informed. A definite clew which it is hoped will lead to the capture of the “terror mob,” composed of escaped convicts, who have robbed, murdered and plundered in Ohio and Indiana for a month, was claimed today by Captain Matt Leach of the state police, as he prepared to confer witft federal operatives. Captain Leach refused to discuss his “new clew,” but appeared sanguine for the first time in oeveral weeks of capturing the desperadoes. He welcomed the entrance of the department of justice men, proposed by The Times Monday, into the case.

“Naturally I can not discuss the new information upon which we are working,” said Captain Leach, “but the trail is getting hotter. "I am convinced that the gang led by John Dillinger and composed of Pierpont, Shouse and several other escaped convicts will be in

SECOND EXTRA PRICE TWO CENTS Outside Marion County, 3 Cents

Officials believed that neither he nor his accomplice was an experienced criminal and that their nervousness prevented their obtaining more money. Apparently the bandits were not connected with a band of marauding ex-convicts at large in the state who robbed the central National bank here of $75,000 Monday and then stuck up the Western State bank at South Bend yesterday, obtaining about $2,500. A squad of state police, sent over to this vicinity this morning on a tip that the convicts had been seen near Danville, were ordered to search for the Fillmore robbers.

custody shortly. From our information, we know that the original band of eight living escaped convicts have split up. Joe Burns and two others have left the state.” Captain Leach said that the state police also had information that Mary Kinder, who helped harbor the escaped criminals in Indianapolis the day after the jail delivery, still was with the “terror mob.”