Indianapolis Times, Volume 45, Number 236, Indianapolis, Marion County, 10 February 1934 — Page 1

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WAY IS OPENED TO PUT $40,000,000 ON CITY TAX RECORDS Supreme Court Decision Offers Inverse Method for Board to Restore Certain Exempt Properties to List. ABUSES REVEALED IN TIMES SERIES Benevolent, Educational and Religious Institutions Levy-Free Only When Used for Such Purposes, Officials Contend. BY DANIEL M. KIDNEY Times Staff Writer Restoration of $10,000,000 to the tax duplicate in Indianapolis alone may be made possible by anew weapon in the hands of the state tax board by the supreme court. The weapon is a court decision which, in an inverse manner, answers the questions the tax commissioners put to Attorney-General Philip Lutz Jr., after a series of articles on tax abuses appeared in The Indianapolis Times last fall. Decision desired by the tax board was reached only after

the case had been fought through the superior, appellate and supreme courts. Then it was decided upon motion for rehearing. Application of this new interpretation of the law would restore $40,000,000 in taxables to the duplicate in the city of Indianapolis alone, it was estimated by Commissioner Albert Walsman of the tax board. His figures are based upon data such as was used by The Times in exposing tax exemption abuses. It was disclosed then that such buisness properties as the English hotel block. Odd Fellow and K. of P. buildings. Fame Laundry building and the Guarantee Tire and Ruober Company building are exempt through donation of the property to institutions classed as benevolent. educational or religious. The tax board now contends that this classification should apply only to properties actually used for such purposes. They asked the attorneygeneral to rule in the matter. Pending the ruling, the present case has come down to strengthen their cause, according to Chairman Philip Zoercher of the tax beard, who aided in the prosecution of the appeal. The case is that of the Vanderburg county commissioners for collection of back taxes from Wilhelm Kreyling, Evansville. The latter purchased with a $2,000 down payment a $20,000 property from the Evansville public library, with the idea that it would be tax exempt. He was to pay SI,OOO a year on tho contract and contended that the only taxes which cculd be assessed j would be on improvements made by ; him. Mr. Kreyling won the suit in Vanderburg superior court and on appeal to the appellate court. The j tax board then took it into the su- | preme court, where transfer was at first denied. Upon motion to rehear j the case, it was accepted and the j present opinion, reversing findings ! of the lower court, was handed j down. • The opinion was written by Justice Walter Treanor. It contains the following paragraph upon which the tax commissioners expect to base their exemption restoration plnas. after the attorney-general rules: “The fact that real estate may be exempt from taxation in the hands of the holder of the fee at the time when a contract to sell is made, can not prevent its lasing its exempt \ character by reason or subsequent changes in its ownership or use. or both. “No class of property is exempt from taxation unless it is ’specially exempted by law.’ and only property used for municipal, education, literary. scientific or charitable purposes’ can be specially exempted by law. "And although the general assemby. by appropriate legislative enactment may specially exempt a class of property, subject to constitutional limitations, it can not confer upon any particular piece ot property an indelible imprint of nontaxability: and when the facts which bring a particular item of property within an exempted class; cease to exist, the particular piece] of property necessarily loses its I exemption character.” Tax commissioners pointed out | that the ordinary exemptions here | are made in the reverse manner to; the facts in the suit, but that thej same reasoning will apply in their opinion. Times Index Page Berg Cartoon 4 Bridge 7 Broun T... . 2 Business News 9 Church Services 7 j Classified 11.12 Comics IS j Crossword Puzzle 14 ! Curious World 13 Editorial 4 Financial 14 Hickman. Theaters 2 Our Gang, a Series 2 Radio 7j Sports 10. ll| Btate News 3| Sunday Sermon 7 Unknown Blond 13 War Pictures 5 Woman's Pages 6.7 Doe to transmission difficulties, the daily column of Westbrook Pegler does not appear today. Publication wi be resumed Monday in the Capital edition of The Time*.

S? The Indianapolis Times Increasing cloudiness tonight, becoming unsettled tomorrow, with probably snow by afternoon or night; rising temperature; lowest tonight 20 to 25.

VOLUME 45—NUMBER 236*

TERROR MOB ON WAYTO OHIO Pierpont, Makley and Clark Spirited Away From State Prison. Exercising extraordinary precautions, Captain Matt Leach and a large detail of state police and Ohio officials spirited three members of the Indiana “terror mob - ’ out of the state prison at Michigan City shortly after daybreak today. Armed with sub-machineguns, members of the state police put the gangsters in separate cars for the long ride to Lima, 0., where they will be held pending trials for the slaying of Sheriff Jess Sarber. Dan Sarber, who took his father’s place as sheriff, acted as one of the guards on the trip today. Riding in separate cars between two state policemen were Harry Pierpont, Charles Makley and Russell Clark, all members of the notorious gang which created a reign of terror in a score of states following their escape from the Indiana state prison. Harry Copeland and Edward Shouse, also members of the gang, will be taken to Ohio soon, accfirding to Wayne Coy, secretary to Governor Paul V. McNutt. Copeland has asked for a hearing before the Governor, it was learned, and extradition papers have been signed for Shouse. Pierpont. Makley and Clark signed waivers for extradition to Ohio yesterday, according to Mr. Coy. Ernest M. Botkin of lima, prosecuting attorney of Allen county, Ohio, joined Captain Leach at Michigan City today with a detail of twelve Ohio policemen. Ten cars formed the procession starting for the Ohio jail tod\\ EXPECT VERDICT TODAY FROM MDIVANI JURY “Marrying Princes” Being Tried on Robbery Charge. By United Press LOS ANGELES. Feb. 10.—David and Serge Mdvani, who rose from poverty to comparative riches via the film colony, expected to learn their fate today from a jury which lor three weeks has been trying them on allegations they robbed the Pacific Shore Oil Company of $30,000 through unauthorized withdrawals. In the Air Southeast wind, 10 miles an hour; temperature, 13; barometric pressure, 30.63 at sea level; general conditions, high, thin, scattered clouds, smoky; ceiling, unlimited; visibility, four miles.

RACE TRACK S elections BY TOM NOO.Yg ■ .. ■ .. - NOONE’S SELECTIONS FOR TODAY Day’s Best—Haggerson. Best Longshot—Sorcery. Best Parlay—Gyro and Feudal Lord.

At Hialeah Park — One Best—Hag-gerson. 1. Miney My arson, Kindacorn, Broad Meadows. 2. Forever Young. Angelic, No Saint. 3. Stone Martin. Chuck 8., Indian Salute. 4. Graham entry. Herowin, Brown Toney. 5. Clarify. Springsteel. Sweeping Light. Feudal Lord. Mountain Elk. De Valera. 7. Haggerson. Waterway, Sandwrack. At Tampa — One Best—Broad Royal. 1. Quorum. Apprehensive. Pana Franka. 2. Craigco, Sweet Lacruse, Knockabout. 3. lornx Eye. Twidgets. Dolice.

ST. PAUL BANKER RECOVERING FROM HARDSHIPS OF KIDNAPING

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Edward Bremer and his father, Adolph Bremer, in the latter’s home in St. Paul as the young bank resident yesterday told of his kidnaping, imprisonment and release by the gang who held him for 1200,000 ransom. He broke down several times during the recital.

Brokers and Exchanges Plan Bitter Attack n Control Bill, Is Belief Pecora Reviews Results of Senate Inquiry Into Speculation to Prepare Bill Sponsors for Assaults Expected at Hearings. By United Press WASHINGTON, Feb. 10.—Congressional machinery to put the nation’s stock exchanges under rigid supervision was in action today in response to President Roosevelt’s demands for protection of the investor fro mthe speculations of the gambler.

Ferdinand Pecora, attorney for the senate committee was busy in New York whipping into final shape the results of his studies of stock market operations. These will be presented to the commitee when hearings begin next week and should furnish a complete picture of the effect of pool operations and other speculative activity. A storm of controversy more severe than any measure submitted since the new deal began was expected to center on passage of the bill. Brokers and stock exchanges are expected to conduct a vigorous campaign against it. Few Oranges Expected While the presidential message “extended also to the commodity markets, congressional action on this score is expected to await passage of the securities bill. Sponsors of the latter believe the two forms of speculation present entirely separate problems. While the President was described as having neither approved or disapproved the bills offered in senate and house, it was believed that no more than minor changes would be demanded. Introduced by Chairman Duncan U. Fletcher of the senate banking committee and Chairman Sam Rayburn of the house interstate commerce committee, the bills provide for strict regulation of all stock exchanges under the federal trade commission. Asa result of compromise the two bills now carry restrictions which would limit margins to a minimum requirement of 60 per cent of the current value o fthe security. An exception is made, however, in less speculative issues such as bonds which move over a narrow price range. As little as 20 per cent margin may be required for them. Severe Penalties Provided Full charges of enforcement of the law will be lodged in the federal trade commission which has power to raise margin requirements even higher than 60 per cent should conditions warrant. It also would have power to limit and regulate short selling. The law also would compel complete disclosure of the affairs of corporations which wish to list their securities on the market. Annual, quarterly and monthly reports of the affairs of the company must be made. The heavy dors which bar the

4. Carnival, Best Man, Tollie Young. 5. Replevin, Lugano, Agstain. 6. Broad Royal, Chipola, General Campbelll. 7. Lucky Jack. Spinning Way Bun D. At Fairgrounds — One Best—Seymour 1. Primer. Last Stand, The Nile. 2. Lugen Luggage, Imelda, Judge Direnzo. 3. Sorcery, Westy’s Fox, Josephine D. 4. Cupidity, Princess Octa, Roman 5. Byro, Jim Dandy, Frank Ormont. 6. Seymour. Isostasy, Dr. Parrish. 7. Muslet, Clifton’s Queen, A La Carte,

INDIANAPOLIS, SATURDAY, FEBRUARY 10, 1934

exchanges to all but the initiated also will be forced open to the scrutiny of the trade commission. Its agents are to have access at all times to the exchange floors, committee meetings and the books of exchanges and members. Those who violate the law after Oct. 1, its effective date, wall be liable to fines and imprisonment as well as damages inflicted on specific individuals by illegal .ac** tivity. Specifically outlawed is the practice of directors, officers and stockholders of more than 5 per cent of outstanding stock of corporations speculating in the stocks of their concerns.

RECESS CALLED IN ARMY INVESTIGATION Grand Jury to Renew Quiz Next Week. By United Press WASHINGTON, Feb. 10.—Capital legalists whose practice borders on lobbying breathed easier for the week-end today as a grand jury investigating* war department contracts took a recess. But it was only a breathing spell. District Attorney Garnett announced that he expected to call a number of civilian witnesses before the jury next week, and further revelations concerning the award of contracts for motor trucks and automobiles for the army were anticipated. MIAMI ASSURED OF 1934 LEGION SESSION City Makes Final $15,650 Deposit on Guarantee Fund. Assurance that the 1934 convention of the American Legion will be held in Miami, Fla., was given yesterday at national headquarters, following receipt of the final deposit of $15,650, making a total of $25,650 paid by the city. The deposit is required to pay certain expenses of the national organization in connection with the event. The convention dates are Oct. 22 to 25. GIRL, 16, SERIOUSLY HURT IN AUTO CRASH Suffers Scalp Wound When Cars Collide; Taken to Hospital. A severe scalp injury was sustained last night by Miss Hannah Shalley, 16, of 1524 East Michigan street, when the car driven by her father, Alvin Shalley, was in collision with another car at MacPherson avenue and Thirtieth street. The other car was driven by Mrs. Elsi M. Brown, 53. of 3615 North Tacoma avenue. Miss Shalley was sent to city hospital.

Hoosier Statesmen Are Reviewed in The Times No matter what your interest in politics, you will be intrigued and gripped by the stories of Indiana’s most famous statesmen, written in a series of articles which starts Wednesday in The Times. * Daniel M. Kidney. Times staff writer, has written a fascinating and gripping series about the lives of Indiana’s greatest political figures—men who climbed the ladder of success, bringing glory and honor to Indiana. The series starts Wednesday with the story Benjamin Harrison, twenty-third president of the United States. Don’t miss one of these great stories.

Father Adds Influence and Resources in Hunt for Abductors. By United Press ST. PAUL, Feb. 10.—Adolph Bremer, a powerful banker and friend of President Roosevelt, today added his influence and resources to the federal department of justice agents’ hunt for a band of men which kidnaped his son Edward. Mr. Bremer furnished the federal men with a complete list of serial numbers copied from the bills with which $200,000 ransom was paid for his son’s release, the United Press learned. During the twenty-two days which elapsed between the seizure of the younger Mr. Bremer and his return, ample opportunity was provided for preparation of this list. The bills were not marked, however, since the abductors had warned they would not accept marked money. Check at All Banks In addition to furnishing serial numbers, the elder Mr. Bremer was expected to provide for checkers In his chain of Minnesota and Dakota NwmhMr-'ai ha i— #*> inn tab |N> pearance of any of the ransom money. Tracing of such money would be the job of the federal agents. Whether the younger Mr. Bremer will take an active part in tracking down his abductors remained problematical. The kidnaped man was suffering from nervous shock as the result of injuries and privations suffered as a result of the abduction. He suffered a severe beating about the head when first seized. His leg was injured when the abductors closed an automobile door on it. Meals Skipped, He Says During his captivity he was forced to remain sitting on a chair for long periods of time. Sometimes meals were skipped. Asa result of these hardships, Mr. Bremer’s physical condition has forced federal agents to allow him considerable rest. Federal agents were confident the case Involved an interstate transportation of a kidnaped man and hence subject to the provisions of the Lindbergh anti-kidnaping law. Mr. Bremer' reported his captors drove their automobile for many hours and were forced to stop and refill the gasoline tank en route and while returning from their hideout. AUTO HIT BY FIRE TRUCK; NONE HURT Driver Charged With Failure to Give Right of Way. Third accident in less than three days involving fire trucks last night resulted in arrest of Jack Dearmin, 21, of 1712 Woodlawn avenue, on charges of failing to give right of way to fire apparatus. Dearmin’s car was struck at Eleventh street and College avenue lest night by a pumper truck from Engine House 8, en route to a fire. No one was injured, although both the fire truck and car were damaged. DAMAGE STORE WINDOW Brick Reported Thrown to Warn Against Cut Prices. Police today were investigating report of Joe S. Clark, operator of a cleaning and shoe repairing shop at 31 South Illinois street, that a brick had been thrown through his window, following warning that he must abandon a cut-price policy.

HEAVY STEEL RAR SAWED FROM CELL DOOR ENABLES JONES SUSPECT TO ESCAPE

ARMY AIRMEN MOBILIZED TO CARRY MAIL Private Firms Map Fight Against Cancellation of U. S. Contracts. By United Press WASHINGTON, Feb. 10. Weapons of war were turned to the pursuits of peace today as the army air service was mobilized to carry the nation’s airmail. Telegrams of protest arrived at the White House from air mail operators whose mail carrying contracts were abruptly cancelled by President Rosevelt’s order. Hints of a “fight to the finish’’ came to the capital from the headquarters of several air lines. The 1.600 planes of the naton’s fighting force were detailed to take over the mail service on Feb. 19, under executive order of President Roosevelt. In the emergency created by cancellation of the contracts, the President directed war secretary George Dern to place at the disposal of the postoffice department sufficient planes, ports and personnel to maintain the necessary service. Alleged Fraud Blamed Abrogation of contracts with private carriers was based on suspicion of fraud during the Hoover administration when the contracts were negotiated. The President, Postmaster-General James A. Farley and Attorney-General Homer S. Cummings decided on cancellation after reviewing evidence of a senate investigation committee. The administration action led to the belief that the carrying of the airmail was doomed as a private industry and that it would be converted into a government service. This prompted quick Inquiries from btSin?-. aeronautical prepared to answer them at once. The aviation men indicated they intended to wage a protective fight for their field. The air crops stood ready to throw all its resources in men and machines into the emergency task of carrying the mail. One of the first considerations of General Douglas Mac Arthur, chief of staff, and General Benjamin Foulois, chief of the air corps, was that no regular airmail pilot should lose his job. General MacArthur praised the men who have flown the mail over the country’s 27,000 miles of airmail lines through rain and sun, snow and wind, squalls and calm, during the years when the air mail was the mainstay in the development of commercial aviation in the United States.

Old Pilots to Stay The air corps has a force of between 1,200 and 1,300 seasoned flying men who could qualify in a pinch to carry the mail, General MacArthur said. But the first consideration will be to keep in service the regular air mail pilots. Most regular air mail pilots hold commissions as reserve officers in the air corps, and any of those who lose a job because of cancellation of the mail contracts will be called into active service in the air corps to carry the mail. Some way also will be found to utilize the services of mail pilots who are not reserve officers, if they lose their present jobs, the chief of staff said. Postmaster-General Farley said the order annulling the existing mail contracts was issued after careful and deliberate study of the entire situation and that the cabinet considered the matter before the President issued his order. The President’s statement was more drastic than had been expected. It said the public interest required both the continuance of the airmail service and the cancellation of the contracts.

MacCracken Still Defiant, Senate Girds for Action

Hoover Aids’ Colleagues Face Decision Today in Contempt Case. By United Press WASHINGTON, Feb. 10—A decision in the senate’s contempt proceeding against three major airline executives was expected today, while William P. MacCracken Jr., former assistant secretary of commerce, evaded arrest on the charge of defying the senate's authority to question him in the airmail contract investigation. Mr. MacCracken informed the senate, in a communication addressed to Vice-President John N. Garner, that efforts to try him on contempt charges were an “invasion” of his constitutional rights. He declined to appear and thus far has escaped apprehension. Convening an hour earlier than usual, the senate prepared today to conclude its procedings against Colonel L. H. Brittin, vice-president of Northwest Airways; Harris M. H&nshue, president of Western Air

Entered a* Second Class Matter at Postoff.'ra. Indlanapolla

Ernest (Red) Giberson Nonchalantly Walks Out of Prison at Noblesville; CWA Worker Faces Help Charge. GUARD OVER MASON IS TIGHTENED ‘Too Frightened to Give Warning,’ Says Arcadia Man; Fugitive Picked Up by Friends in Car, Is Report. BY BASIL GALLAGHER Times Staff Writer NOBLESVILLE, Ind., Feb. 10.—A steel bar, four by two inches, carefully sawed from the cell door in the ancient red brick jail here, was discovered early today by state policemen investigating the escape from jail of Ernest (Red)* Giberson, suspect in the machine gun killing of Sergeant Lester Jones of Indianapolis. The hole in the steel door bore mute testimony to the manner in which the eleventh Indiana “public enemy" to escape from state jails in the last six months, made his easy getaway yesterday. Today an armed guard of deputy sheriffs and state policemen patrolled the corridors of the jail to prevent

SUBZERO WAVE IN CITYBROKEN Mercury Climbs, Expected to Pass Freezing Mark Tonight. Arctic weather which descended upon Indianapolis early yesterday was short-lived, the mercury making a substantial recovery today under the influence of an unobstructed sun. Lowest temperature recorded last night was 6 above zero at 3, 4 and 5 a. mu, in comparison with yesterdays low of 7 below zero at 6:10 a. m. Temperature today was expected to climb nearly to the freezing mark, not dropping below 20 or 25 degrees tonight. Increasing cloudiness tonight was expected to bring snow or rain tomorrow, with temperatures above the freezin gmark, according to J. H. Armington, local meteorologist. Temperatures over the state generally were from 6 to 14 degrees higher than yesterday morning, except in the extreme northeast section, Ft. Wayne reporting 2 below zero. The highest temperature reached here yesterday with 13 above zero at 3 p. m. The cold snap kept city firemen on the jump all day yesterday and again this morning. Yesterday firemen responded to fifty-three alarms, the largest number of runs in any one day for the last four years.

NEGRO CONFESSES MURDER, POLICE SAY Other Holdup Crimes Admitted, Is Statement. Charges of murdering William Freeland, 72. druggist, during a holdup, today faced Oscar Frazier, 26, Negro, 2025 Alvord street, following his purported confession to the crime yesterday. The alleged confession, according to Detective Chief Fred Simon, also clears up the shooting of Frank Masters, 32, of 1201 East Michigan street, taxi driver, after a $2 robbery, and also solves two other robberies. Mr. Freeland was wounded fatally in his store, 1724 Roosevelt avenue, when he resisted the holdup. He died next day.

j Express, and Gilbert L. Givvin, Mr. I Hanshue’s private secretary. It was indicated that members of the special airmail investigating committee would exert all possible efforts to have Mr. MacCracken brought into the senate chamber to show cause why he should not be punished for contempt. Charges against the Hoover administration “little cabinet” officer were based on his refusal to submit confidential correspondence to the committee. Through Mr. MacCracken’s surprise move, the senate found itself matching wits with Frank J.' Hogan, defender of Harry Sinclair, Edward L. Doheny and others in the Teapdi Dome oil scandal in 1924. As Mr. MacCracken’s personal counsel. Attorney Hogan was seeking to protect his client by a writ of habeas corpus. Senate Sergeant-at-Arms Chesley Jumey failed to locate Mr. MacCracken yesterday and delayed further action until after the senate convened today in the hope he might catch him unawares and take him to the senate before the writ could be signed.

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

threatened efforts t,o free Willie Mason, also held here, charged with the slaying of the Indianapolis police sergeant in the holdup of the Peoples Motor Coach Company. Harold Beeler, Hamilton county prosecutor, announced that he would file an affidavit charging Rolla Rollings, Arcadia, a CWA timekeeper, with aiding the prisoner to escape. The ease with which the desperado escaped from the jail amazed state policemen hurriedly sent here to investigate. Giberson. held in a lower tier of cells, was regarded as a “model prisoner” by Sheriff Frank Hattery and his wife, Rose, who keep the Hamilton county jail. Questioned at length early today. Rollings, the CWA worker, protested his innocence and declared that he was “too frightened” to tell the jail authorities immediately about Giberson’s escape. Hat, Coat On "I had been working around the ceil block for about three weeks," said Rollings, “with William CiarlL Leo Hayworth and William Evans, also CWA workers. Yesterday shortly after 3 o’clock I walked along the aisle outside the cell tier in which Giberson was supposed to be confined and, to my astonishment, saw him standing in the shadows outside the bars. He had his hat and coat on. “Hello Red,” I said. “Hello Rol,” he answered. "I guess I’ll be getting out of here.” Rollings told Sheriff Hattery that he passed the convict and continued his plumbing work in a corner of the cell tier, fearing to notfy authorities. ‘‘l was scared stiff,” he told Sheriff Hattery later. “I thought maybe his pals would shoot me if I mad* an outcry.”

Tells CWA Foreman Half an hour after Giberson nonchalantly walked out of jail. Rollings walked over to the courthouse, across the yard from the prison, according to Sheriff Hattery, and approached Frank Caylor, CWA foreman. “I’m going to have to come clean and tell you something,” Rollings is alleged to have remarked to have remarked before telling Mr. Caylor of Giberson's escape. Sheriff Hattery was in Sheridan when the escaped was made known. He returned immediately, and sent posses out into the sub-zero weather to search for Giberson. State policemen Loyal Hall and Frank Zirkle discovered the bar sawed off in the door of the Jail. Officer Zirkle ran his arm through the hole and demonstrated how Giberson, with the aid of a hack saw’, easily could have picked the lock. Inmats Knew of Plans Several hours after the escape, state police and Sheriff Hattery discovered an inmate who had seen the car in which Gibberson is said to have escaped, drawn, up on the south side of the jail. Sheriff Hattery withheld the prisoner’'s name. He said the man had known of Giberson's plans and had been threatened with his life if he told of the escape. According to the prisoner, a maroon sedan in which two men were riding circled the Jail four times and then picked up Giberson as he emerged from the building, speeding off tow’ard Indianapolis. The prisoner also is alleged to have told the sheriff that the plans to escape include the deliverance of Willie Mason. Mason, according to Sheriff Hattery, was prevented from leaving because of an artificial foot which retared his speed. Mason Denies Plan Mason, slight and bespectacled, denied this assertion vigorously. Looking more like an overworked clerk than a bandit, Willie, attired in a white shirt and prison trousers, came down from his cell in the upper tier to viewt he hole the cell door through which Giberson Hourly Temperature* 6 a. m...,, 7 8 a- m 10 j i. m 8 8 a. m 18