Indianapolis Times, Volume 45, Number 207, Indianapolis, Marion County, 8 January 1934 — Page 1

CLAIM ‘JUNK PLANTS’ HIKE POWERCOSTS Two of Light Company’s Buildings Are Branded as Obsolete. EXPERTS ASSAIL USE Assert They Are of Value Only to Force Higher ‘Writeup.’ BY BASIL GALLAGHER Times Staff Writer Existence of two alleged “useless and obsolete” plants of the Indianapolis Power and Light Company are millstones around the necks of electric consumers in this city, it was charged today. Utility experts, in data now before the public service commission, assert that the Kentucky avenue and West Washington street plants of the light company are useless to electric consumers. These experts declare that all the electric power needed can be developed in two plants—the Harding and Mill streets power stations. These experts, whose data is incorporated in a survey of the utility by the public service commission, charge the old and alleged obsolete Kentucky avenue and West Washington street plants are kept going only for rate-making purposes. If these plants, which were appraised at the time of the merger in excess of $6,000,000, were “written off” the books, along with property on North Alabama street, and other alleged duplications in the distribution system, these experts assert that the public service commission would have grounds to grant a reduction in rates immedately, without even taking into consideration an alleged $24,000,000 “write up" of property values, as alleged by Sherman Minton, public counselor. Utility experts point out that it would be cheaper to purchase current from the Insull or other superstations rather than operate these two “white elephants.” Junking Is Urged In 1931, according to reports to the public service commission, the Indianapolis Power and Light Company paid an Tmull company $809,000 for current, in 1932, $642,000 in round numbers. By junking the Kentucky avenue and West Washington street plants and buying power from Insull, the light company would save enormously in operating expenses, taxes, etc., it is asserted. Asa matter of fact, utility experts claim, it would be in the interests of electrical consumers to junk three of the four stations in operation at the present time which includes Mill street, and buy current, above the capacity of the Harding street plant, from other sources. From data before the public service commission in preparation for the hearing on an order to show cause why electric rates in this city should not be reduced, there is evidence that local plant facilities are overbuilt for some time to come. By the time the local demand will equal the capacity of the present plants, utility experts assert, three of the present plants will be obsolete and useless, as well as too expensive to operate. Figures Are Given The Times submits the following figures from the records of the engineering department of the public service commission which in turn obtined it from the Indianapolis Power and Light Company. Capacities in KW or KVA: Washington street plant. 21.500 KVA; Mill Street plant. 45.000 KW; Kentucky avenue plant. 30.000 KW; South Harding street. 70.000 KVA: Leno-e Substation, 75.000 KVA (approximately). The maximum electrical demand of the Indianapolis community for 1032 was reported as 69.000 KW. For 1931 it was reported at 76.509 KW. and for 1930 at 80.700 KW. From the above figures, it will be seen that the greatest maximum demand occurred in U3O and these figures are taken for illustration. Lay Stress on Capacity It is agreed by engineers consulted by The Times that there should be a capacity of not less than 50 per cent in excess of maximum demind and on this basis the Harding street and Mill street plants show 70.000 KVA and 45.000 KW. respectively, or a total of 115.000 KW. The two plants alone have an excess capacity of 42 per cent above the maximum demand. In addition to the facilities for the above two plants, there also is the larger Lenore substation with a capacity to bring in 75.060 KBA purchasable through the Insull Dresser superstation and other sources. Although the Indianapolis Power and Light Company, according to reports to the public service commission. pays the Insull-owned company about 100 per cent per K W. H. in excess of cost to manufacture in the local stations of the light company, utility experts maintain that there would be an enormous saving to consumers in station power costs together with the saving in the return on property value, which consumers must pay to the operating company, if the Kentucky avenue and West Washington street plants were closed and the value of the properties written off the books as obsolete and not useful to consumer*. Hor!y Temperatures 6*. m 32 10 a. m 35 7a. m 35 II a. m 36 8 a. m 35 12 tnoon).. 36 9a. m 35 Ip. m 35 *

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VOLUME 45—NUMBER 207

BY GEORGE DENNY Times Staff Writer THE reporter was resting his weary head in his hands and sipping at a soft drink straw out of one corner of his mouth, when in walked a friend, a young Indianapolis attorney. “Hi,” said the attorney. “Hi,” said the reporter, "sit down and have a coke with me.” With pleasure,” replied the young attorney. “I have just spent a delightful hour which should be of interest to you.” • How so,” questioned the reporter. “An hour with your friends at the Indianapolis Power and Light Company,” said the young attorney, “and really, my man, your paper should not be so harsh with them. An enchanting group of fellows; they hate to see a customer go.” “Tell all,” said the reporter, surreptitiously reaching for his pencil. “Well,” began the young attorney, "I moved to another house recently and my light bill failed to appear until the second month.” ‘lmagine,” marveled the reporter. “That was all right, of course,” continued the young attorney, “but then I remembered that I was entitled to some sort of a special rate because of the electric refrigerator. So down I went to the light company office on the Circle, all unsuspecting. For some reason I felt especially fit today and I whistled cheerily as I strode across to the desk. Then I found that I had forgotten my bill, and was told to ask for a duplicate.” “Aha,” breathed the reporter softly. “The system used in the procuring of a duplicate bill is devious and lengthy,” said the young attorney. 1 found that I had quite a bit of time to pass, so I SEEK DILLINGER IN CLEVELAND Gangster Chief and Pals Reported En Route to New York. /?/ United Press CLEVELAND. Jan. B.— A tip that John Dillinger, leader of the nation’s worst gang of bank robbers and killers, may be hiding in the vicinity of Cleveland with a band of his followers, was received by detectives here today. All members of the detective bureau were instructed to be on the lookout for the men. Dillinger, according to reports, eluded a trap at Detroit Saturday night, and with a party of companions traveling in three cars, started for New York. With him. it was reported, was John Hamilton, who is wanted in Chicago for the killing of Police Sergeant John Shanley. Two women also are in the party.

SLIGHTLY COLDER, WEATHER FORECAST Mercury to Climb Again Tomorrow Night. Somewhat colder weather tonight and tomorrow, without any extreme drop, however, was forecast today by the weather bureau. Temperature tonight was expected to range between 20 and 25 degrees, with the arrival of cold weather which early today had driven the mercury down to about 15 above zero in lowa. Temperatures were expected to start climbing again tomorrow night. NEW COUNTY GRAND JURY STARTS WORK Members Are Sworn In By Judge Baker for Six Months’ Term. Members of the Marion county grand jury for the six-month January term were sworn in today in criminal court by Judge Frank P. Baker. The new inquiry body is comprised of Larkin B. Munday, West Newton. chosen last week, and Theodore W. Klippel, 527 North Brady street; Ray Kennedy, 1121 North Kealing avenue; James Knowles. 81 North Dearborn street; Paul H Krauss Jr„ 2821 North Pennsylvania street, and Alva H. Van Horn. R. R. 7, chosen today. Texas Representative Injured By United Press ALEXANDRIA. Va., Jan. B.—Representative Joseph J. Mansfield iDem.. Tex.) nursed painful cuts on the head and neck at Alexandria hospital today as a result of an automobile accident in which he was showered with shattered glass.

Meet ‘Our Gang’ Your newspaper—have you ever wondered about how it is made; or perhaps about the men and women who make it a finished product? Perhaps you knew some of the men and women who make up The Times’ staff—but do you know what they do? Do you know how they work? If you knew them, or if you don't, we want you to get acquainted. We want you to meet your favorite writer face to face—we want you to know personally these men and women behind the scenes whose hours of labor each day go to make your Times the complete paper you receive each evening. Really, they're not strangers. They're all neighbors of yours—perhaps they live across the street—maybe you've seen them on the street car or on the bus—or more likely still, perhaps they went to school with you. Anyway, we want you to know "our gang.” Starting Wednesday, we re going to present "our gang” to you. one by one, just as we see them, just as we know them. Come on—let’s get acquainted.

The Indianapolis Times Cloudy and unsettled tonight, followed by fair tomorrow; somewhat colder tonight, with lowest temperature 20 to 25 degrees.

An ‘Un-Lightning’ Hour —He Who Waits Saves 44 Cents

spent it by ambling aimlessly about the main floor, admiring the handsome light fixtures and electrical appliances and wishing that the rate was lower so that I could afford more of them. Twenty minutes passed in this pleasant fashion before the duplicate was ready. Then guess what happened?” “You paid the bill,” hazarded the reporter. CMCAGOMILK WAR VIOLENCE FLARES ANEW 600,000 Gallons Dumped, Truckmen Kidnaped, Windows Smashed. By United Press CHICAGO, Jan. B. —Terroristic warfare broke out today between Chicago's independent and organized 'milk producers as a result of a strike that cut off the city’s supply of fresh milk. Property was wrecked and milk trucks were hijacked. While approximately 600,000 gallons of market-bound milk was dumped on the highways outside the city, the terrorism spread to the streets of the metropolitan area where a long threatened war between independents and organized producers broke into the open. The new outbreak came while officials of the Pure Milk Association, a co-operative of 18,000 dairymen, sought to effect a compromise in the milk strike. AH Deliveries Ceased Developments in the strike and milk war included the following: 1. Large dairies ordered the cessation of all milk deliveries. 2. Striking farmers dumped milk trucks and stopped milk trains in the suburban areas. 3. Gangs smashed windows of socalled independent dairies, hijacked delivery trucks and kidnaped truck drivers. 4. Officials of the Pure Milk Association offered to settle the farm strike if independents would pay their farmers the same rates that members of the association received. Hijackings Are Reported Chicago police squad cars were order-ed to protect trucks delivering milk to restaurants and stores. Reports of half a dozen hijackings were received. Two trucks of the Lakeview Dairy Company were stalled and their milk spoiled by gasoline. Henry Hangartner, driver of one truck, was kidnaped by ten men and released after being threatened. Crews of wreckers smashed windows of independent dairy companies with milk bottles and bricks. Outside the city, the blockade resulted in outbreaks of violence.

SOVIET AMBASSADOR CALLS UPON PHILLIPS Alexander Trovanovsky Will See Roosevelt Today. By United Press WASHINGTON, Jan. B. —Setting a precedent for speed in diplomatic procedure here, Alexander Troyanovsky, new Soviet ambassador to the United States, called upon Acting State Secretary William Phillips at 11 a. m. today, less than twentyfour hours after his arrival in Washington. The purpose of the call was to arrange formalities for Mr. Troyanovsky's presentation of his credentials to President Roosevelt at the White House at 5:15 p. m. COLLAR BONE BROKEN IN FIGHT WITH BULL Farmer Subdues Animal, Becomes Indiana's No. 1 Toreador. By United Press EVANSVILLE. Ind., Jan. 8. Score a victory for Indiana's No. 1 bull fighter. Louis Elmendorf, 57. a farmer, although battered and bruised after a half-hour tussie with an enraged bull, conquered the animal by twisting the ring of its nose. Elmendorf suffered a broken collar bone. NAZI PROTEST SOUGHT Senator Offers Resolution on Oppression of Jews. By United Press > WASHINGTON. Jan. B.— Senator Millard E. Tydings tDem.. Md.) today introduced a resolution which would request President Roosevelt to communicate to the German government an “unequivocal statement” in connection with the "dis- j criminations and oppressions imposed by the reich upon its Jewish citizens.”

INDIANAPOLIS, MONDAY, JANUARY 8, 1934

“ Not so fast, young man, not so fast,” said me young attorney. "You forget that I wanted a special rata I made this wish known and was directed vaguely to another desk. By asking several times on way, I finally located a newspaper supported by ten fingers. I decided that there was a man behind this paper but was loath to disturb his studies. After all, I thought, how considerate of the company to give its

State Attempting to ‘Railroad’ Crouch, Is Charge of Attorney

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Bess Robbins

li. S, QUOTA IS HIKEjm PARIS France Agrees to Push Figures Up 200 to 300 Per Cent. (Copyright. 1934, by United Press) PARIS, Jan. B. —France has agreed to increase American quotas on industrial imports by 200 to 300 per cent, in effect annulling the* severe import quotas effective Jan. 1, it was learned today. Hundreds of American products are affected, and millions of dollars. Just before the new year France reduced import quotas on all industrial goods by 75 per cent. The government hoped to force other nations to grant France reciprocal advantages in order to bring their quotas back to the previous level. The United States now becomes the first country to obtain an increased quota.

MDIVANI FLEES TO GREAT NORTHWEST Prince Leaves Bride to Avoid Subpena. By United Press SAN FRANCISCO, Jan. B.—Barbara Hutton, heiress to a $40,000,000 Woolworth 10-Cent store fortune, was in San Francisco today. While in the great northwest, Prince Alexis Mdivani, her Russian husband, I evaded a California process server. Separation of the American heiress and the youngest of the three "marrying’’ Mdivani princes came while the couple sped westward in Curley Hut. the $120,000 Hutton i private car. All was serene until the newlyweds reached Reno. There Prince Alexis learned that Harry Owen, ] special investigator for the Los Angeles district attorney, awaited ! him with a subpena. GROSSART STILUS ” IN CRITICAL CONDITION County Auditor Reported as Resting More Comfortably. County Auditor Charles A. Grossart today still was in critical condition at his home, suffering from a heart ailment, but was reported as resting somewhat more comfortably. He still is being kept in an oxygen tent as result of threatened pneumonia. Detroit Priest Warns Congress By United Press DETROIT. Jan. B. —Congress must not sidestep the monetary issue and must assure the next generation the security of earning an honest livelihood and "unfettered from the shackles of financial slavery,” the Rev. Father Charles E. Coughlin said in his sermon yesterday. Times Index Page Bridge 5 Broun 7 Classified 12 Comics 13 Crossword Puzzle 10 Curious World 13 Editorial 6 Financial 10 Vickir.an—Theaters 7 Hobby 4 Hunting 11 Lodge News 14 Pegler 7 Radio 9 Sports 8. 9 State News 3 Unknown Blond 13 Woman’s Pages 4, 5

employes time to keep up with current events in this swiftly moving age.” “Assures intelligent sendee,” said the reporter. "Exactly,” agreed the young attorney, “but minutes were passing and the paper was too far away for me to read, so I ventured a few gentle coughs. A head appeared. x mumbled something about a power rate and was handed an application to com-

. y.. ••• ■. J

Judge Baker

Bess Robbins, Judge Baker Stage Verbal Battle at Hearing. Charges that officials were attempting to “railroad” Hilton U. Crouch, alleged terror mobster, into prison, were hurled today by Miss Bess Robbins, attorney, in a hearing before Criminal Judge Frank P. Baker in chambers today. Miss Robbins, charging unfairness, asked a change of judge. Names of three attorneys, from whom a special judge for the trial will be selected, will be nominated j by Judge Baker. Attending the session iff the court’s chambers were Crouch, his mother and sister. Miss Robbins, detectives and newspaper men. Miss Robbins protested order of the court that she could not see Crouch before tomorrow. When she said, “You people are trying to railroad Crouch into prison without me being able to see him,” Judge Baker replied: “I know you are here, and so are the newspaper men, and you want a newspaper story, so let me tell you something. Charges Money Hidden “You came here, not as Crouch’s lawyer. You had never seen him or his mother. You were employed from | Chicago. My own interpretation of the case is that he has money planted somewhere and he wants to get in touch with the people who know where it is. “As far as your demands to see your client are concerned, the plea of not guilty already has been filed and you know there is plenty of time after trial date is set for an attorney to see a client. This talk is all camouflage. What you wanted to talk to Crouch about was money.” Miss Robbins denied this vehemently, and said: “Why has the state been so nervous about my seeing him? Heretofore you always have been fair to me, but this time I think you are showing prejudice. That’s why I am asking a change of judge.” Baker Disqualified Self Judge Baker pointed out that he has disqualified himself as trial judge, and that the conversation was leading nowhere. He added that the special judge to be chosen is the one to see about permission to interview Crouch. While the discussion was going on, Crouch and his mother conversed, Crouch asking about his bride, a waitress in the Chicago restaurant in which he bought an interest | shortly before his capture. The mother said the wife was trying to dispose of Crouch's interest in the restaurant. “What is she going to do with the money—keep it?” questioned Crouch, looking startled. Alleged “Bargain” Denied He was informed that she probably wanted the money to aid in his defense on charges of complicity in the $25,000 holdup several months ago of the Massachusetts Avenue State bank. Judge Baker and Miss Robbins discussed newspaper accounts of announcement by Prosecutor Herbert Wilson of the purported “bargain” j entered into between Mr. Wilson j and Crouch, in which a twenty-year i sentence was reported to have been accepted. Miss Robbins denied Crouch would plead guilty or that he had agreed to the “bargain.” “This is a newspaper trial, j Crouch has been convicted already,”; she said, displaying a newspaper story of Mr. Wilson's announcement. “Do you mean to insinuate Mr. Wilson is a liar?” asked Judge Baker. “No, I am insinuating nothing,” she replied, but there has been a lot of buck passing between Mr. Wilson and Detective Chief Fred Simon.” After the hearing. Judge Baker said he had granted permission for Miss Robbins to see Crouch each time she asked, and said that he would see that she has plenty of time to talk to him before the case goes to trial.

plete. This took only a minute or two and I was feeling much encouraged until my hard-won duplicate bill was sent back upstairs. The following twenty minutes I spent in happy contemplation of the interest on $59,000,000, as compared to $35,000,000. But all things must end and when my bill came back I was sent upstairs to a Mr. Whoois to have my application aproved. Up I went ~nd

RULING PAVES WAY FOR AUTO TAGARRESTS Seizing of Motorists May Start This Afternoon, Chief Says. Arrest of motorists without 1934 license plates can be started this afternoon. The Indiana supreme court at noon today spiked a restraining order against city and state police by issuing a writ of prohibition returnable Wednesday. The writ, granted on petition of the attorney-general's office, was aimed at the restraining order issued Friday afternoon in superior court two by Judge Joseph R. Williams. Judge Williams had set Jan. 15 as the return date on his restraining order, when arguments could be made for issuance of an injunction. Arguments will be made Wednesday before the supreme court on [ making that body's writ permanent. | All four Democratic judges sat today in the session at which the temporary writ was issued, only Judge David A. Myers, lone Republican, being absent. Police Chief Mike Morrissey said Indianapolis police would start making arrests as soon as he receives notification of the voiding of the superior court order. State police under A1 G. Feeney, state safety director, have been making arrests outside Marion county where the superior court order had no effect. NOTED EDUCATOR DIES AT VALPARAISO HOME Public Schools Close as Tribute to Chauncey Boucher. By United Press VALPARAISO, Ind., Jan. B. Public schools in Valparaiso closed today for the funeral of Chauncey W. Boucher. 82, widely known educator, who died at his home here Saturday after a long illness. The services were held in the Presbyterian Church with the Rev. Chester W. Wharton officiating. Mr. Boucher was a native of Tiffin, O. He was educated in Valparaiso Normal school and served as dean of Muncie Normal college from 1912 to 1915. He was president of the State Teachers’ Association in 1927. MASS CELEBRATED FOR LATE BISHOP 30-Day Requiem Begins at Cathedral. A thirty-day pontifical requiem mass for repose of the soul of the late Most Reverend Joseph Chartrand, bishop,,of Indianapolis Roman Catholic diocese, was celebrated at 9 yesterday morning in SS. Peter and Paul cathedral. The Most Reverend Joseph Elmer Ritter, administrator of the diocese, conducted the services. The Rev. George F. Dunn was deacon; the Rov. Henry Hermann, subdeacon; the Rev. Joseph B. Herman, archpriest, and the Rev. James Hickey, j master of ceremonies, assisted by the Rev. Andrew O'Keefe. Bishop Chartrand died in the 1 cathedral rectory Dec. 8, of heart disease. I

‘Best Man Ever’ Dies Jap Miller, Self-Appointed Brooklyn (Ind.) Mayor, Was Made Famous by Riley Poems. JAP MILLER, styled by James Whitcomb Riley as “the best man ever wuz,” and self-styled mayor of Brooklyn. Ind., will be buried Wednesday in the home-town he made famous with his eccentricities.

“Mayor” Miller, hero of several Riley poems as well as lover of cats and owner of one of those fast-disappearing general merchandising stores, died Sunday after a five months’ illness. Born Isaac Jasper Miller, he was 76 at his death. He became “Jap” to loving townsmen and the world at large through the poetical fame of Riley. After a mercantile career in youth in Martinsville, he went to Brooklyn in 1897 to found his famous Famous store. The store, besides shaping its character around the man Riley called the “comicalist feller you ever saw.” sold kerosene lamps, Nick Carter dime novels, castor oil and corset stays. a a a JAP MILLER, not satisfied with a mayorless Brooklyn in 1897, appealed to President McKinley for a lifetime grant to the title. The President granted the favor. “Mayor” Miller made it binding with his first act of office a

Entered a* Second-Crass Matter at I’ostoffice. Indianapolis

almost immediately I saw a desk marked ’lnformation.' After a wait of barely five minutes. I was near eough to ask for Mr. Whoois. “ ‘Across the hall,' was the reply. Not a word wasted, you observe.” “Super-efficiency,” su g g ested the reporter. “Promotes good will, too” said | the young attorney. “Well, looked across the hall and there were some doors. It’s a game. I thought delightedly. Eenie, meenie, minie moe. I opened a door marked Bookkeeping’ and there were a number of people all very busy.” “So that’s where they were,” | mused the reporter. “Yes, sir,” said the young attor- ! ney. “They were so busy that they didn't notice me, but my spirit was up and I asked the nearest for Mr. Whoosis. Believe it or not, he pointed straight at a nearby door. This door also was closed, but I knew all the tricks by now and I marched straight in. Mr. Whoosis was talking earnestly with another man. I placed the application on his desk and with Napoleanic versatility he signed it without even missing a conversational beat. “But I kept my head,” added the young attorney. “ Where now. Mr. Whoosis?’ I inquired merrily.” “Downstairs,” he returned, and I was off again. “Yoicks,” said the reporter. “Tallyho,” said the young attorney. “The scent was hot. From then on it was simple. The accounting department offered no difficulties, my bill was revised, and the thing was done. “Only an hour, but it was fun while it lasted,” said the young attorney wistfully. “Maybe next time it will take longer. But how much money do you think I saved?” he asked, brightening. “Millions?” inquired the reporter. “Forty-four cents,” saitl the young attorney. GREENLEE GETS ‘ED6FAGAIN He Compromises —and Wins Right to Name the Club Treasurer. BY DANIEL M. KIDNEY Times Staff Writer Politics “by agreement” is scheduled for an inning tonight when members of the Marion County Young Women s Democratic Club meet at the Claypool for the annual election of officers. Taking cognizance of an alleged rupture between the courthouse and city hall factions of the party, a slightly shopworn political formula has been brought into play by that old master discoverer of political formulae, Pleas Greenlee. This formula of Mr. Greenlee, who also is the McNutt administration patronage chief, is very simple, but like most stimple formulae, effective. It consists of: “Let the statehouse do it.” City Hall Gets President Accordingly, Mrs. Louise Rich, city hall employ, is scheduled to become the club president tonight, but the treasurer—ah, there’s where the fine Italian hand of Mr. Greenlee becomes apparent. The new treasurer is scheduled to be Sarah Shallat, who is a statehouse employe. So is Marie Brison, who is ticketed for the post of secretary. The courthouse representation is Mosemary Lawlor in the post of vice-president. Members of the executive committee are scheduled to be Mary Louise Walpole, who doesn’t hold a position in any of the three divisions; Margaret Koening. city hall! Gene Anderson, statehouse, and Katheryn Coleman, statehouse. Marmony Meeting Held A harmony meeting was held Saturday in the Governor’s office with Mr. Greenlee presiding. Like all master tacticians, Mr. Greenlee decided that a rehearsal should be held so every one would be letter perfect in her part tonight. Mr. Greenlee’s active “missionary work” among the young women members of the Democratic party is reported to be dictated by the pro R. Earl Peters feeling among the older women of the state administration.

proclamation that read, ‘“No court or legislative body to have jurisdiction over him, can not resign or be removed, for or without cause.” Law enforcement was solved by repealing all laws. Riley encountered Mr. Miller while rambling through Morgan county. He exchanged books with him. Shortly before “Mayor” Miller’s death, he owned many autographed copies of Riley’s books. He sold a portion of these volumes before his death. Folk of Brooklyn can not remember when Jap Miller was without his favorite cat purring at his heels. Tarzan, a big Persian, is his mourner. He was nationally known in the Improved Order of Red Men and for many years was active in Democratic politics in Morgan county. Last rites will be held Wednesday afternoon at 2 in the Brooklyn Methodist church. Burial will be in the Brooklyn cemetery.

HOME EDITION PRICE TWO CENTS Outside Marion County, 3 Cents

ALL HOUSING PROJECTS OFF, CAPITAL HEARS Lack of Suitable Plan Is Blamed for Action. Reports Say. CITY’S PLAN IN DANGER Point of Law Believed to Be Troubling High Officials. BY LYLE C. WILSON United Press Staff Correspondent (Copyright. 1934. by United Press! WASHINGTON, Jan. 8 —Use of federal funds for slum clearance and housing projects in general has been abandoned as a major part of the Roosevelt recovery program, the United Press was informed authoritatively today. Lack of a suitable plan caused i this rather abrupt change in adi ministration policy, it is expected j to block many of the housing loan 1 projects which now have Interior | Secretary Harold ickes’ tentative j approval. The public works administration i so far has allocated $148,000,000 for j low cost housing and slum clear- ! ance projects. Approximately $48,000,000 has | been allocated to limited dividend j corporations established under | state laws. The remainder is ear- | marked for the federal housing corporation. Very little money actually has gone out. Contracts for two projects have been signed and a third contract approved. The works contemplated under these presumably would go forward regardless of any decision j regarding housing in general. Little Is Advanced The Federal Housing CorporaI tion, a recently created subsidiary of the PWA. has advanced so little money that its officials describe the sum as negligible, although refusing to state exactly how much is involved. The three projects mentioned in the foregoing are: $3,450,000 for the Borough of Queens, New York City; $1,000,000 for the Euclid Housing Corporation, Euclid, 0., and | $200,000 for Raleigh, N. C. Problems of transportation, rental : and an existing surplus of suburban | housing are understood to have - I disregarded the administration from diversion of tremendous sums to such works. Smith Chief Backer Bound up in the question appears to be anew point of dispute between the new deal and the brown derby. Former Governor Alfred E. Smith is one of the foremost advocates of slum clearance. Twenty-six days after the Roosevelt administration took office last March, Mr. Smith appeared before the RFC and forced approval of an $8,075,000 loan for slum clearance on the lower east ! side. “Nothing will pep New York up so much as something like this,” Mr. Smith told the reconstruction finance committee advisory board, but J. L. Harrington, a board mem- ; ber, was doubtful owing to the requirement that such a loan be self- | liquidating. j “The costs are so much, greater,” Mr. Harrington told Mr. Smith, “that it is apparent a different group will have to occupy these j houses after they are built.” Smith Scorns Argument Mr. Smith scorned that argu- ! ment: “The same people living there now will move right into the more modern houses and they will move in at the same rent they pay now,” the Governor said. “But, we must look at it under | the terms of the law,” Mr. Harrington objected, mindful of the selfliquidating stipulation. * “I look at these things from a human standpoint, also,” Mr. Smith exclaimed. “Well, do you recommend it, Gov-, ernor?” asked Harvey C. Crouch, an' RFC director. “I recommend it,” Mr. Smith replied, and the lean was made for a lung block clearance between Monroe. Market, Cherry and Catherine streets on lower Manhattan island. Point Is Delicate One But the point raised by Mr. Harrington and scorned by Mr. Smith is troubling high officials of the administration. They doubt that new dwellings can be provided at the $5 or so a room which slum tenants now pay and there is no disposition to mix humanity in to the extent of providing the improved quarters at an actual loss to the government. And there have arisen questions of transportation and even carfare if slum dwellers are moved to the suburbs. “There is a lack of a suitable plan,” a high authority in the administration said of the whole slum clearance and suburban housing idea. "That does not mean, of course, that no money will be advanced. But fewer dollars will be expanded on such projects than was expected some weeks ago.” In addition to the three projects mentioned in the foregoing, fifteen others, including Indianapolis, have Mr. Ickes’ tentative approval or await it. It seems likely that many of these will not materialize. Report Is Denied Authorities in the federal housing plan division of the public works administration have termed false the report that the .slum clearing projects have been abandoned, Joseph R. Beckett, member of the local committee, said today, after a long-distance telephone conversation with Washington.