Indianapolis Times, Volume 45, Number 217, Indianapolis, Marion County, 19 January 1934 — Page 3

VAN. 19, 1937

KEEPING UP WITH THE LATE NEWS OF CONGRESS

COMPROMISE ON VETERAN RELIEF GAINS SUPPORT Imminent Elections Spur Democratic Leaders Into Action. BY WALKER STONE Timet Staff Writer WASHINGTON. Jan. 19 —Clamor In congress for war veterans’ relief legislation—a sign that betokens the coming of elections just as the first robin heralds the approach of spring—has become so great in the last few days that Democratic leaders are trying to work out a compromise. Indications that a number of Democratic senators and representatives were about to be stampeded into support of the American Legion’s four-point program sent senate leader Joe Robinson scurrying to the White House yesterday to warn the President that some kind of a Democratic program for veterans’ relief must be formulated. All 435 of the members of the house and one-third of the members of the senate are up for reelection this year, and those who voted for the President’s economy act last spring are demanding an opportunity to cast a vote that will appease voting veterans back home. Among these are seventy-nine Democrats in the house who represent normally Republican districts and who consider support of the veterans indispensable to their own re-election. Democrats on Defensive Under the economy act President Roosevelt has the power by executive order to restore ail the benefit payments that were wiped off the veterans’ rolls last March. But the congressmen prefer to go on record themselves. Budget Director Lewis Douglas' original slash of >400,000.000 into veterans’ expenditures has been carved down until economies of the veterans’ administration now total only $250,000,000. The legion’s four-point program, indorsement of by the senate Republican caucus placed the Democrats on the defensive, threatens—according to the legion's estimate —to add from $68,000,000 to $80,000,000 to veterans’ expenditures. Hayes In Washington The legislative vehicle for the veterans’ relief battle is the inde- j pendent offices appropriations bill, j already passed by the house and now before the senate appropriations committee. Hearings on the bill start next week. National Commander Edward A. Hayes of the American Legion is in Washington and will seek permission to appear before the committee. The legion's four-point progatm calls for: Widows Pensions Asked 1. Complete restoration of benefits in service-connected cases, except in cases of enlistment after the armistice, and cases where service-; connection was established through j error or fraud. 2. Placing the burden of proof on j the government in determining service-connection. 3. Hospitalization of all veterans' who have disabilities or diseases, regardless of origin, who can not afford to care for themselves. 4. Pensions of sls per month for widows and orphans of veterans who have died of disabilities, regardless of service-connection. NAZI CASE JUDGE NOT DISTURBED BY THREATS Low Angeles Jurist Has Photographed Court Spectators. By l nitrd Press LOS ANGELES. Jan. 19 —Charges and denials that hired agents of Adolph Hitler were propagating Nazi doctrines in the United States ’••ere overshadowed today in superior court by reports that an attempt had been made to intimidate Judge Guy F. Bush. Judge Bush presided at a suit in which a German-American faction charged that the German-Ameri-can alliance had been brought under the control of Nazi sympathizers. The jurist had the courtroom locked and a photographer summoned to take pictures of the spectators and the defendants, supposedly in an effort to trace the author of the threats. Judge Bush refused to reveal the nature of the warning. FORT AWAITS WORD OF SOLDIER TRANSFER Post Without Information u Y’et From War Department. No information has been received at Ft. Benjamin Harrison concerning the war department announcement that troops in the field artillery will be transferred, it was stated today. In a move to reorganize the field artillery to increase its fighting strength and mobility in action, the war department announced Thursday that about 1.350 men will be transferred from a number of army posts, including Fort Benjamin Harrison. Soldiers in the field artillery at the local post number thirty officers and 452 troops. Major John K. Boles is in command. FT. WAYNE MAnTiOO. GIVES TOBACCO CREDIT State Centenarian Has Smoked for Ninety-One Yfars. By f nited Press FT WAYNE. Ind.. Jan. 19 —James Treece is 100 years old today, and partly attributes his longevity to smoking. He says he has smoked since he was 9 years old. Recently a doctor advised against the habit, but Mr. j Treece merely changed to a milder tobacco. TIMES EDITORJO TALK Ear hang* Club to Hear Talcott Powell at Meeting Friday. ’ The Newspaper and the World Economic Situation" will be the subject of an address by Talcott Powell, editor c! The Tun , 's at the Indianapolis Exchange Club luncheon next Friday in the Washington. j

HE’S WORRIED

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Senator Joseph T. Robinson Talk of veterans’ legislation sent him scurrying to the White House. TAX PLOTTERS FACE EXPOSURE Treasury Plan Would Have Advisers Sign Income Levy Returns. By United Press WASHINGTON. Jan. 19 —Treasury officials from Secretry Henry Morgenthau Jr. down, believed today that a lot of high-priced lawyers, tax experts and accountants shortly are going to e gazing around and about wondering what hit them. Mr. Morgenthau was delighted with a plan urged by Earle Bailie, recently a special treasury aid, before he bundled up his luggage and returned to Wall street. The plan is that lawyers and others who plot for their clients the frequently devious paths by which income tax is escaped be publicly identified. The capital Is tremendously interested in the program. It is, briefly, that lawyers, tax experts, acountants and others giving professional income tax advice and preparing returns shall sign the return along with the taxpayer. The taxpayer also will be required to state whether he consulted an expert even if he prepared his own return. If there was a consultant, he must be famed, too. "The department has been confronted in a number of cases,” the treasury announcement said, "with the assertion that the errors or even fraud which its agents have unearthed resulted from the advice of some professional persons, previously unnamed. “The purpose of these regulations is to fix the responsibility where it belongs. They are intended to insure a higher degree of accuracy and care by the professional advisers who have actually prepared the return.”

Flying High McNutt Completes 500 Hours in the Air. Governor paul v. mnutt is “up in the air” a great deal of the time, and not in the manner charged to him by some of his political enemies. Returning from the Evansville district Democratic meeting by airplane Wednesday night, the Governor estimated thac he has spent more than 500 hours in day and night flying. Back in 1929, when touring the states as national commander of the American Legion, he crossed the Rocky mountains by plane. Then, as now, many of his trips were night flights and when they are of great length he often relieves the pilot at the controls. Before his nomination last year, he made a flight to Florida in the private plane of Thomas Taggart Jr.. Democratic national committeeman from Indiana, and has made many flights to French Lick in the Taggart plane, since that time. En route to Florida after Christmas this year, he flew as far as Atlanta. Ga. Pilot on that trip, as on the Evansville jaunt, was Lieutenant Howard Maxwell of the Indiana National Guard squadron. The plane is a ship which formerly belonged to Norman Perry and was donated by him to the city of Indianapolis, which, in turn, leased it to the state for $1 a year, according to AdjutantGeneral Elmer F. Straub.

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WALL ST. ENDS OPPOSITION TO U. S.JJONTROL Bowing to Inevitable, Stock Market Envoy Ready to Discuss Law. By Bcripps-Hoveard Xewspaper Alliance WASHINGTON, Jan. 19.—Wall Street began today to manifest a keen interest in projected stock market regulatory legislation as a special administration committee put the final touches on a comprehensive report suggesting methods of reform. John W. Prentiss, of Hornblower and Weeks, was here seeking a conference of stock exchange representatives and members of the Senate banking committee which soon will begin to draft a bill. The Senate committee, w'hen it begins its work, will have before it suggestions of the administration committee, headed by assistant secretary of commerce John Dickinson. The committee met today in what its chairman expects will be its final session. Whitney Visitor Also The visit here of Mr. Prentiss follows recent trips of Richard Whitney, president of the New York Stock Exchange, and other exchange officials. Among others, Mr. Prentiss conferred with Ferdinand Pecora, counsel of the banking committee, who has directed the long financial inquiry which soon will turn directly to the New York and other stock markets. "I am willing to sit in a conference with Stock Exchange members regarding stock market legislation—but not in a conference which would be concerned with avoiding legislation,” Mr. Pecora said. "We must have legislation to check the evils which the inquiry has disclosed.” Mr. Pecora suspects an eleventhhour attempt by some Wall Street interests to prevent legislation with a promise that the Stock Exchange will reform itself, but no one here expects any success for such a plan. The more realistic of Wall Street leaders, and these include Mr. Prentiss, haye resigned themselves to regulatioh. Recommendations Ready Mr. Dickinson, head of the administration committee appointed several months ago by Secretary of Commerce Daniel Roper, said he thought the committee would finish its report for submission to the secretary. He assumed this report would be sent ultimately to the banking committee. The report of the special administration committee will not outline specific legislation, but will suggest alternative methods by which congress might correct various abuses. The committee was unable to agree on the form of a bill, though it prepared several tentative drafts. Its suggestions concern methods for checking pool and syndicate operations, restriction of marginal trading, and permanent federal regulation. One unsettled question is whether the federal trade commission, which now supervises the security act, should also supervise the stock market, or whether a separate agency on which the stock market would be represented should be created.

State Library Guild Is Organized by Greenlee

Objective Is Harmony and One Happy- Family, Says Secretary. Pleas Greenlee has promised a “new deal” for the Indiana state library, now that he has the staff packed with “deserving Democrats,” it was revealed today. In fact he has begun 1934 with organization of a Library Guild, separate from the famed 2 per cent club of which the McNutt patronage secretary also is founder. The guild has a membership which includes every one on the library staff from Librarian Louis J. Bailey down to the last Greenlee appointee. Membership cards were signed under the auspices of Sam J. Kagan, Greenlee appointed superintendent of public archives, and there were no dues. A meeting then was held at the new' library building and Mr.

THE INDIANAPOLIS TIMES

St. Louisan Denies Mail Plot Charge Lindy Backers Are Called ‘Cheap Promoters’ in Senate Probe. By United Pretie WASHINGTON, Jan. 19.—Senate air mail contract investigators today studied testimony of William Sacks, air mail contract entrepreneur, public spirited citizen of St. Louis and politician, regarding his activities in seeking to obtain a mail contract for the Robertson Brothers, original Lindbergh flight backers. A blunt character who knows many politicians casually from having met them at Republican national conventions, Mr, Sacks heatedly denounced the Robertssons. He described William B. Robertson as a "cheap promoter,” who "was trying to ride on a windy.” The denunciation followed testimony by the Robertsons that Mr. Sacks sought to interject himself into the contract negotiations against their will, but with the backing of the late P. D. C. Ball, owner of the St. Louis Browns baseball club, who had contributed substantial backing to the Robertson Air Service, Inc. Politics Center Quiz Mr. Ball, Frank Robertson said, expressed a conviction that Mr. Sacks would have to be dealt with in order to obtain an air mail contract between St. Louis and New Orleans “because it’s chiefly political.” Mr. Ball explained at the time, Frank Robertson testified, that fir. Brown was seeking a favor of Mr. Sacks, namely the Missouri delegation to the 1932 convention to support Herbert Hoover’s renomination. The delegation went for Governor Frank Lowden in 1928. Denies All Charges A welter of conflicting testimony indicated that the Robertsons did not want to deal with Mr. Sacks, who, one of them said, wanted a 5 per cent cut on the mail route proceeds. He also asked, it#was testified, a $2,500 contribution to the campaign fund of Leonidas C. Dypr, former congressman. Mr. Sacks denied all these claims categorically, though admitting he knew Postmaster-General Walter Brown in charge of the mail contracts and had seen him twice for the Robertson line. The investigation was in lecess until Tuesday. COLLECTING $1,000,000 DAILY, RFC HEAD SAYS American Business Improving, Loan Applications Withdrawn. By United Press MEMPHIS. Tenn., Jan. 19. American business has improved to the extent that the Reconstruction Finance Corporation is collecting $1,000,000 per day from borrowers, Harvey Couch of the RFC board of directors said here today. “Perhaps many will be surprised to learn that of the $3,139,309,375.42 already loaned by the RFC, $1,059.214,273.85 has been paid back,” Mr. Couch asserted. “Conditions are so much better that applications for loans totaling $333,000,000 have been withdrawn.”

Greenlee and Dick Heller, secretary to Lieutenant-Governor J. Clifford Towmsend, spoke. There are thirty-six on the library staff and all but one attended, it was said. The absentee was Miss Esther U. McNitt, head of the Indiana division, who was ill. “The old year is past, anew one has begun and everything should be in harmony,” Mr. Greenlee is reported as saying. “We want cooperation and the library staff should function as one happy family.” Mr. Heller is said to have delivered an address in the same vein. Mrs. Chauncey P. Myers of the Methodist Hospital Library Guild also spoke. There will be more meetings in the future, it was announced. Priest Critically 111 By United Press SARASOTA, Fla., Jan. 19.—The Rev. Thomas P. Mulcahy. Waterbury, Conn., Catholic priest, was critically ill here today following a surgical operation.

PRESSURE PUT ON SENATE FOR ACTIONON GOLD Administration Is Confident of Speedy Passage by House. By United Press Jan. 19.—Administration pressure for early passage of the gold bill swung to the senate today, as house leaders geared for action on the significant monetary legislation tomorrow. Chairman Duncan U. Fletcher of the senate banking and currency committee said that Treasury Secretary Henry Morgenthau had informed the group that it was "imperative” that the bill become law by Tuesday. What was in the wind on that day, neither Senator Fletcher nor other committee members would guess. It was understood, however, that the treasury plans some new financing next week. Meanwhile, an abrupt rise of the dollar on foreign exchange indicated the need of starting operations with the $2,000,000,000 stabilization fund which the bill provides. Several Provisions Fought As house and senate committee hearings on the dollar revaluation measure continued today, the administration found several provisions of the bill opposed by significant financial figures. Governor Black of the federal reserve board, before the senate banking and currency committee, opposed the President’s proposal to take title to federal reserve gold. James M. Warburg feared that efforts to keep the dollar below 60 cents would "be costly” and possibly result in a serious drain on the stabilization fund. He told the house coinage committee however that if he were a member of congress he would "make a speech in which I would set forth that I would vote for any bill the President asks for in the emergency.” "I would then explain however,” Mr. Warburg said, “that I would like the revaluation plan better if there was no top of 60.” Filibuster Is Feared Several senators predicted that if the administration tries to rush the bill through by Tuesday there would be a Republican filibuster, based on the argument that detailed study of the momentous legislation was necessary. Senator Carter Glass (Dem., Va.) asked if he believed the bill would pass by Tuesday, said “it hasn’t got a chance.” The house, however, under the ironclad program of the leadership, will stay in session Saturday until the bill is passed. Debate is limited on the bill, which will be brought up under a special rule. A Republican attempt may be made in the house to place a time limit on stabilization fund operations—either one year or two. Representative McGugin (Rep., Kan.) is sponsoring such a change. Plan Open Hearings Senator Adams (Dem., Colo.) of the senate banking and currency committee said he opposed permitting the secretary of treasury to engage in foreign exchange transactions. He also said he would attempt to have the provision which forbids further coinage of gold, deleted. He predicted that the bill would be favorably reported but by a close vote. The senate committee planned open hearings today, while the house coinage group was trying zealously to round up a group of witnesses so further information of experts could be available before the bill is brought up. Mr. Warburg said he had sought to prevail on the President that a devaluation program should provide a bottom limit of 50 per cent but not stipulate a top of 60, as is provided in the bill. “He has gone the other way,” Mr. Warburg said. “But he has more facts than I have.”

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Politico-Lawyers Are Scored for Efforts to Influence Liquor Board

CONGRESS TODAY

By United Pre* SENATE Considers farm mortgage refinancing. Agriculture committee debates cotton control bill. Banking and currency committee continues investigation of Detroit bank situation and meets in executive session in afternoon to dscuss monetary bill. HOUSE Convenes at noon to act on interior department appropriation bill. Appropriation subcommittee meets on agriculture department appropriation bill. Interstate commerce committee continues hearings on bill to regulate motor carriers. Ways and means committee meets on tax bill. Judiciary committee continues birth control hearings. Agriculture committee meets on Jones cattle bill. Coinage committee continues hearing on administration’s gold devaluation bill. GEISKING HELD FOR DEATH QUIZ Police Character Picked Up for Questioning in Walsh Murder. Theodore (Ted) Geisking, 26, of 709 Ft. Wayne avenue, known to police as a liquor hijacker during the prohibition era, early today was arrested for questioning in connection with the murder of Raymond J. Walsh, 33, several weeks ago. Geisking was arrested by police squads under Sergeants Harry Schley and Frank Reilly at a rooming house at 2229 North Alabama street, on request of detectives investigating the Walsh slaying. He was slated on vagrancy charges, under $5,000 bond. Detectives refused to disclose their reasons for wishing to question Geisking. Seven men held on vagrancy charges for questioning in the case were dismissed several days ago when detectives admitted they “had nothing on them.” The homicide squad, under Lieutenant Donald Tooley, is working on anew theory in the case, believing Walsh may have been shot elsewhere and his body taken to the Ft. Wayne avenue rooming house where it was found by police. Walsh was reputed to have been a former hijacker, but had been employed as a civil works administration employe for some time before his death. MONTANA GOVERNOR BALKS IMPEACHMENT Nurse Refuses to Bring Charge by * Close Vote. By United Press HELENA, Mont., Jan. 19.—Governor Frank Cooney today was still undisputed Governor of Montana after successfully resisting attacks made against him last night by several members of the house of representatives, and which culminated in defeat of a house motion to impeach him. The vote against impeachment was 51 to 41. Cooney was the first Montana Governor to face such charges. He was charged with “high crimes, misdemeanors and malfeasance in office.”

Attempts to Obtain Special Favors Failed, Says Alcohol Chief. BY THOMAS L. STOKES Times Special Writer WASHINGTON. Jan. 19.—Some lawyer-lobbyists of the Democratic national committee who are being forced out of office by President Roosevelt embraced the federal alcohol control administration in their ‘practice,” it wa? revealed today. So far as could be learned, their representations to importers that they could expedite liquor allotments were of no avail. Joseph H. Choate Jr., alcohol administration head, said all requests were treated on the same basis. “We received letters from some of the gentlemen who were mentioned in the newspapers,” he said, adding that none of them, so far as he knew, had made any personal appearance before his administration. Mr. Choate was interested in reports that a fee of 5 cents a gallon was asked for "interceding” with the control administration. Another report said that a straght fee of SI,OOO was fixed by one of the national committee lawyers. “So far as I know the lawyer service was of no avail in any case,” Mr. Choate said. Recently the FACA issued a general order pointing out that it is not necessary for any one dealing with it to employ representation. “Many applicants for import permits apparently have felt that it was necessary to engage the services of local representatives,” the order reads. “Although this is erroneous, such representatives will, of course, be recognized. The order specified, however, that only one representative would be permitted.” As indications grew today that other resignations would follow those of Bruce Kremer, Montana; Robert H. Jackson, New Hampshire, and Max Gardner, North Carolina, the shakeup in the national committee occasioned by President Roosevelt’s condemnation of committee lobbyists became a source of lively political interest. Some Republicans were considering today whether they would capitalize it, possibly by asking a congressional investigation. The leader in this group is Senator L. J. Dickinson (Rep., Iowa), the most persistent critic of the Roosevelt new deal. Other Republican leaders advised against any such move, pointing out that former Postmaster-General Walter Brown, once chairman of their party’s national committee, now is under investigation by a senate committee and recalling that former Chairman Claudius Huston and Robert Lucas, former executive committee chairman, were raked over the coals in the senate for some of their activities. Senator Arthur Vandenberg (Rep., Mich.) introduced a bill making it illegal for any national committee member to practice before a government agency. He disclaimed any political motive, explaining he had prepared the measure ten days ago, and prailing President Roosevelt for his stand. Inquiry today developed that Jed Adams, a member of the United States board of tax appeals, is a national committeeman from Texas, and the question was raised as to whether he would give up his membership on the committee.

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SENATE ATTACK ON NRA STIRS GENJOHNSON Recovery Act Chief Begs Retailers to Keep Down Prices. BY HERBERT LITTLE Times Special Writer WASHINGTON, Jan. 19.—“ Keep prices down—for God’s sake, keep prices down.” This warning to business men, delivered by NRA Administrator Hugh S. Johnson in a New York speech to retailers, stood today as NRAs rejoinder to senate attacks on “monopolistic’” tendencies in codes. It followed senate speeches by Senator Gerald P. Nye (Rep.. N. D.) demanding administrative reform to curb prices and big business monopolies, and by Senator William E. Borah (Rep. Idaho.*, who said nothing less than the renewal of the suspended anti-trust laws will bring real “codes of fair competition. - Senator Carter Glass iDem., Va.) presented complaints of small southern business men against code wages, and Senator Edward P. Costigan iDem., Colo.) indicated a belief that there has been no adequate compensatory benefits for anti-trust law suspension. General Johnson's speech disclosed that a secret federal trad® commission investigator’s report, charging NRA had “made mistakes,” has been sent to President Roosevelt, but apparently was ignored. He also announced to employers that NRA would “insist” on shorter work-weeks than the forty hours now provided in nearly all the 217 codes signed so far. General Johnson followed th® senate debate on NRA closely, receiving telephone reports in New York. Senator Wagner (Dem., N. Y.), co-author of the recovery act, who himself favors strengthening its labor provisions, is expected to reply to the Nye-Borah criticism in a few days with a report on NRA’s first seven months of operation. TWO HAMMOND MEN ARE KILLED IN CRASH Prominent Politicians Fatally Hurt When Train Hits Auto. By United Press DYER, Ind., Jan. 19—Two Hammond business men were killed near here late yesterday when the automobile in w'hich they were riding was demolished by a Monon express train. The victims were Jacob Schroeter, 70, and John Pascaly, 69. Both were former Democratio members of the Hammond city council. They were en route to a political meeting at Crown Point w'hen the accident occurred. HULIiTO ARRIVE AT FLORIDA PORT TODAY, Secretary of State to Leave Immediately for Washington. By United Press KEY WEST, Fla., Jan. 19 —Secretary of State Cordell Hull will arrive here aboard the cruiser Richmond at 4 p. m., today, according to messages from the Richmond to the naval station here. Mr. Hull will leave at 5 p. m., by rail for Washington.