Indianapolis Times, Volume 45, Number 303, Indianapolis, Marion County, 30 April 1934 — Page 3

APRIL 30,1024

YOU CAN'T WIN, STOCK MARKET DEBATE THEME House to Spend Week in Effort to Educate Investing Public. BY RL'TH FINNEY Time. Special Writer WASHINGTON, April 30—You cant win! With this as its theme, the house of representatives is going to spend this whole week educating the country in the tricks of the stock market and the dangers of speculation. One of the most protracted debates in recent history of the "house has been arranged in order to make sure that the reasons for stock market regulation shall be dinned into the ears of the investing public. If there’s a man in the country who doesn't know at the end of the week just how and why he lost when he dabbled in the market and just how and why he will lose again unless the government steps in to protect him, it won't be the fault of administration leaders. Although they run some risk of having the bill amended by throwing the debate wide open. They have decided to fake that risk in order to get the whole story across. A year ago, the Roosevelt plan for reguiapng exchanges probably would have had little chance of adoption. At that time, promises of self-regu-lation on the part of the exchanges would have carried considerable weight. It was supposed, also, that the investing public had learned its lesson and was unlikely to lend itself to building up new speculative booms. Recent Events Recalled Today the administration quotes events of the past few months to answer both these points. Last July, there were violent fluctuations in repeal stocks. The New r York Stock Exchange, clamoring for the right to regulate itself, investigated and reported that “there were no material deliberate improprieties.” The senate banking committee then investigated and reports definite proof that security prices were manipulated, that pool operations took place in which corporate officers participated and profited, and that "unsavory practices” were uncovered in listing of securities. The speculative boom of the summer of 1933 is the answer to the second point. The administration argues that such booms not only must end "with the usual disastrous results to investors” but also impede progress toward prosperity so directly that they must not be permitted to occur in the future. These are the tricks backers of the biil will list during the week’s debate to show the get-rich-quick public how it has been parted from its dollars. Pools Manipulate Prices In order to send the price of a certain stock upward, a broker may buy and sell large blocks back and forth to and from himself. An instance was found in which a broker, eperaltng a syndicate account in a coppei stock, cause the syndicate to sell 35,000 shares while a member of the syndicate bought it back. The slock went up frcm $192 to $195 Operations of this sort enable a syndicate to unload stock on the public. Os course, when the manipulating is over the price slumps These are "wash sales. - ’ Prices are manipulated easily through pools. A group pailicipating in a radio stock pool was able to boost the stock from 91 u to 100'i in four days. The men in the pool made big profits. They pulled out and three days later the stock had dropped to 87'. Some financial wi iters were found by congressional investigators to be in the pay of market operators. They mentioned a stock favorably in their columns and they got a rake-off on the traders' profits. Margin Trading Under Fire Trading in options has been abused to aid pool operations. Directors and officers of corporations have speculated in the stock of their own companies on the basis of information not available to others. Occasionally they have caused payment of dividends not justified bv earnings in order to help make the operations of a pool successful. The practice of trading on margins will come in for the heaviest attack of all in the week's debate. The fact that it makes widespread speculation passible is blamed in the Pecora report for the depression. As to the personal effects, testimony before the committee indicated that margin trading, making possible widespread speculation, directly was responsible for most of the business failures, suicides and embezzlements of recent years.

MERCHANT'S ESTATE IS VALUED AT $250,000 Son, Daughter of Scott Wadley Named Administrators. Letters of administration in the estate of the late Scott C. Wadley, 4646 North Meridian street. Indianapolis merchant, who died April 21, were on file today in probate court. Mr. Wadley left an estate estimated at more than $250,000 real and personal property. Miss Melissa J. Wadley, daughter, and Morris S. Wadley, son of the merchant were named with the American National bank as administrators of the estate.

Indianapolis Tomorrow

Rotary Club, luncheon. Claypool. Universal Club, luncheon. Columbia Club. American Chemical Society, luncheon. Severin. Architectural Club, luncheon. Architects and Builders building. Gyro Club, luncheon. Spink-Arms. Mercator Club, luncheon, Columbia Club. Hilton U. Brown Legion post, luncheon. Board of Trade. Phi Delta Delta, luncheon. Columbia Club. Democratic Association, luncheon. Washington. Phi Gamma Delta, dinner. Athenaeum. Jewelers’ Guild, dinner, Washington. Indiana Cosmetlogoists. 8 p. m.. Washington. Missionary Institute. Annual meeting, First Baptist church.

Answers Last Alarm Lieut. George Harmon Retires After 35 Years as Foreman; Never Missed a Day’s Work.

Thirty-five years of fighting fires today are at an end for Lieutenant George Harmon, 23 Johnson avenue, who retires from the fire department after a record of never missing a day from service for sickness or injury. Enthusiastic in his approval of present-day fire-fighting methods, Lieutenant Harmon recalls with some amusement certain unusual incidents which occurred when he started in as a substitute fireman at station No. 21 in Brightwood Dec. 16. 1899. At that time, substitute firemen received no regular salary, but were paid only for the time they worked for someone else. This money, the substitute had to collect from the ? "gular fireman. Some of his hardest fights came not in extinguishing fires, but in collecting from firemen for substitute duty. Lieutenant Harmon asserts. The largest fire he helped fight was that w’hich destroyed the old Industrial building in January, 1918. With the temperature at 12 degrees below zero, the firemen suffered severely as they fought the flames throughout the night. During his career, Lieutenant Harmon never knew a fellowworker to be killed, or severely injured. Modern fire fighting methods have done much to reduce the number of fires in the downtown area, he said. He attributes the decrease to motorized equipment, the number of hydrants and fire boxes, and to the system of training that Chief Harry E. Voschell has inaugurated. Lieutenant Harmon was appointed to the rank of lieutenant in 1909 at station No. 2. He has been attached to Station 25 in Irvington for the last four years. Plans for the future include a modest little cottage in the country where he can raise a garden. However, Lieutenant Harmon declared that it will be some time

Four Solemn Services Slated at St. Vincent’s

CITY SHOOTING VICTIM CRITICAL Wielded Blackjack During Gas Station Fight, Police Told. Condition of John Abner, 69, of 230 Lincoln street, who was shot in the abdomen in a fight early last night, remained critical today at city hospital. Abner was found by police in bed at his home. Under his pollow was a police blackjack. Ed De Young, 34, of 232 Lincoln street, told police he witnessed the shooting, which occurred in a filling station operated by Joseph Powell at 2242 Bluff road, and that he had taken Abner home afterward. De Young said he and Richard Steele, 44, of 2586 Bluff road, were seated in the filling station when Abner entered with the blackjack, shouting that he was not afraid of any one. Abner is alleged to have beaten Steele on the head with the weapon Steele is alleged to have drawn a revolver and fired one shot w’hich struck Abner. Police arrested Steele on a charge of assult and battery with intent to kill. Police sent Abner to city hospital. Neither Abner nor Steele would admit knowing each other. I. U. GRID OUTLOOK WILL BE DISCUSSED University Athletic Director to Address Fraternity. Football prospects at Indiana university under the tutilege of "Bo” McMillin, new head coach, will be discussed by Z. G. Clevenger, athletic director, at the Phi Gamma Delta dinner tomorrow at the Athenaeum. Other outlooks for the football season will be presented by William D. Ramsey, assistant to Mr. Clevenger, All members of the Phi Gamma Delia undergraduate chapter at Indiana university will be present. Other guests will be Val Nolan, United States district attorney; Will H. Smith, internal revenue collector; the Rev. A. E. Cole. George Welburn. and Ross Lockridge.

DECISION RESERVED IN PAPPAS RETRIAL PLEA Lack of Interpreter at Murder Trial Cited for Syrian. Criminal Judge Frank P. Baker today studied the plea of Vasil Pappas, a Syrian, to have anew trial on a murder charge. Pappas was sentenced to life imprisonment for the slaying of his landlady, Mrs. Belle Brown. Saturday. Judge Baker heard arguments by Seth S. Ward, attorney for Pappas, on a motion for a new trial. Ward asserted Pappas was denied the right, of an interpreter at his trial. The judge took the motion under advisement. BEER DEALERS READY TO FIX CLOSING HOUR Majority of Retailers Have Joined Association. Is Report. Enrollment of the majority of the retail beer dealers in Indianapolis in the Retail Beverage Dealers of America, is announced by Richard Stegemeier. chairman of the Marion county division. All members thus far have voted unanimously for immediate establishment of definite closing hours and a closing ordinance will be presented to city council, Mr. Stegemeier said. Headquarters have been established at 939 K, of P. building, with Eugene W'ilder. national organizer, in charge. Herman G. Deupree, Indianapolis. has been named an assistant organizer.

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I before he forgets the ever- new thrill of climbing over the roof of a burning house with smoke in his nostrils and heavy fire hose in his hand.

City Daughters of Charity to Honor Canonization Foundress. Four solemn services will be held tomorrow at St. Vincent's hospital, in honor of the canonization of the co-foundress of the Daughters of Charity, St. Louise de Marillac; beatification of blessed Catherine Laboure, to whom was intrusted the mission of the miraculous medal, and the commemoration of the founding of the community of the Daughters of Charity. Sisters in charge of St. Vincent's hospital are members of the community of the Daughters of Charity. Services will be in the chapel, and will begin with high mass at 5:30. with the Rev. Joseph T. Bauer, chaplain of St. Vincent’s as celebrant. At 10, Bishop Ritter will pontificate at solemn mass and deliver the sermon. His assistant priest will be the Right Rev. Maurice O'Connor, pastor of St. Joan of Arc. The Rev. Charles Duffy, pastor of Little Flower church, will be the deacon, and the Rev. James M. Downey, pastor of St. Catherine’s church, subdeacon. At 4, high school pupils will attend services, with the sermon delivered by a Vincentian father, and the Rev. George Dunn will be the celebrant at the benediction of the Blessed Sacrament. Closing services will be held at 8 tomorrow night, with a sermon, followed by benediction with Bishop Ritter as celebrant. The work of the Daughters of Charity of St. Vincent De Paul includes work in hospitals, psychiatric institutions, leper colonies, grade schools, high schools, colleges, day nurseries, day settlements, infant asylums, homes for the aged, orphanages. social service work and vacation camps. There are 2.130 members of the organization in this country and 226 separate institutions.

CITY DOCTOR TO HEAD NATUROPATHIC GROUP Dr. B. F. Clark Elected at Ninth Annual Meeting. Dr. B. F. Clark, Indianapolis, was elected president of the Indiana Naturopathic Association yesterday at the ninth annual convention in the Severin. He succeeds Dr. Stephen Pencheff. Other officers are: Dr. William MacDonald. Gary, vice-president; Dr. Heil E. Crum. Indianapolis, secretary-treasurer, and Dr. R. A. ■Williamson, Anderson; Dr. William Fogleson. Newcastle; Dr. H. W. Peterson. Muncie; Dr. F. B. Williams. South Bend, and Dr. M. C. Kennedy, Marion, directors. LIQUOR REACTION HERE, STATE DRY CHIEF SAYS Traffic Doomed, Dr. York Tells North Church Members. Dr. Lewis E. York, superintendent of the Anti-Saloon League in Indiana. told the congregation of the North M. E. church in a talk yesterday that "reaction has set in against the liquor traffic.” "Sentiment is crystallizing for the annihilation of this enemy of our social structure.” he said. In comparing alcoholic beverages to John Dillinger, he referred to liquor as Public Enemy No. 1.

CHANGE OF TIME Effective Sunday, April 29 No. 11— PEORIA SPECIAL. Daily Will leave Indianapolis 11:45 a. m. (instead 12:05 p. m.) and arrive Peoria 5:45 p. m. For particulars regarding other changes in schedules, call City Ticket Station, phone Riley 3355. BIG FOUR ROUTE

THE INDIANAPOLTS TIMES

NIPPON AGREES TO OPEN DOOR VIEW ON CHINA Japan to Observe NinePower Treaty, Koki Hirota Tells Envoy. By / United Prrgf LONDON, April 30.—Japan has promised to maintain the “open door” in China and to continue observance of the nine-power treaty, Sir John Simon, foreign secretary, informed the house of commons today. The assurance was given by Koki Hirota, Japanese foreign minister, to Sir Francis Lindley, British ambassador at Tokio, Sir John said. The announcement was received with intense interest by the house, which had gathered to hear Sir John's promised statement on the Japanese declaration of policy in the far east. Sir John’s statement we regarded as going far to allay fears aroused by the Chinese declaration. Reporting on the conversations between Hirota and Lindley. he said Lindley reminded the foreign minister on April 25 of the provisions of the nine-power treaty, adding that Britain must continue to enjoy all rights under it. The ambassador declared Britain refused to admit that Japan has the right to make a one-sided decision on whether technical or financial assistance to China created a danger to the integrity and peace of China.

LEGION TO HOLD AERIAL ROUNDUP National Membership Cos to Arrive by Plane; Dinner Tomorrow. National roundup of membership cards will be celebrated tomorrow night at the American Legion's annual national aerial banquet in the Indianapolis Athletic Club. Brig-adier-General Benjamin D. Foulois, chief of the army air corps, wlil be the main speaker. Memberships in the state were gathered yesterday in an airplane roundup, and planes from all other states will arrive tomorrow with cards mailed to the national legion headquarters. Planes in the national roundup will land at Municipal airport. Indiana has enrolled 26.500 in the drive thus far. The state's quota is 32.000. Clarence E. Manion. professor of law at Notre Dame university, will be toastmaster at tomorrow night's banquet.

AUTO HITS SAFETY GUARD; TWO HURT City Man, Wife. Are Injured Seriously in Crash. Two persons were injured seriously yesterday when an automobile in which they were riding crashed into a safety zone rail at Senate avenue and Washington street. Two other occupants suffered bruises. Herbert Bogard, 38, of 1515 Finley avenue, driver of the car, suffered head and chest injuries and his wife, Mrs. Jeanette Bogard, 35, suffered head injuries. Both were taken to city hospital where their conditions were described as “fair” today. The other two, Mrs. Fannie Larra, 53, of 1520 Lawton avenue, and Carrie Coyner, 40, of 1400 Finley avenue, were treated by a physician and sent home. Bogard said that he was crowded into the rail by another car. Orlan Myers, 30, Greenwood, suffered a severed artery, and Miss Ethel Worthington, 20, of 1148 Knox street, a scalp wound when an automobile driven by Mr. Myers collided with a car driven by Lester Barnhart. 30, Morris, Ind.. on Madison road, early yesterday. Miss Worthington was sent to city hospital.

THEFT VICTIM SCARED, DELAYS HOLDUP REPORT * Grocer Tells Police of SBOO Robbery Twenty-Four Hours After Crime. Terrified by threats against his life if he notified police. Elva McKain, operator of a grocery at 1411 North Illinois street, put off reporting to authorities until late Saturday that he was robbed of SBOO Friday night. Mr. McKain said that two masked bandits, one of them armed, stopped him at Twelfth and Illinois streets and took his billfold containing the money. $75,000 FIRE SWEEPS HIGH SCHOOL BUILDING Garfield Auditorium at Terre Haute Damaged by Blaze. By United Prefit TERRE HAUTE. Ind., April 30. Fire, believed to have started from a carelessly tossed cigaret stub, caused damage estimated at $75,000 to the Garfield high school auditorium here Saturday night. The loss does not cover personal effects of students and teachers, school officials said. The fire was discovered shortly after students had finished decorating the auditorium stage for a school play.

FOUNDED ON REQUEST

Grand Lodge Aided Prospect Masons

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Charles A. Kerr

This is the seventeenth of a series of histories of Marion County Masonic blue lodges which is being published each Monday in The Times. A history of Evergreen lodge will be published next week. REAL parent of Prospect lodge No. 714, Free and Accepted Masons, is the Grand lodge of Indiana, for it was at the request of that body that a blue lodge be organized in the southeastern section of Indianapolis, that a group of South Side Masons met in June, 1919, at the home of Oscar A. Merrill, 1209 Linden street, to formulate plans for the organization. Signers of the petition for dispensation, all of whom are, of course, charter members of Prospect, were Archie L. Bartholomew, Charles S. Bebinger, Henry F. Brier, Samuel F. Bull, John R. Callender, Joseph E. Callender, Ara G. Clary, Arthur Cotton, Harry A. Davidson, Leslie E. Dobbs, Clarence E. Gunckel, Aaron Handy, Charles Haggard, Ellsworth E. Heller. John S. Irons, Joseph Jegen, John G. Johnston, David Jolly, Harry Knannlein. Frank Kreps, Hugo Kuntz, Oscar A. Merrill, Burton G. Morgan, Fred Mueller, William Nackenhorst, Edward Saylor and Ernest Schuster.

By Oct. 5, 1919, all blue lodges in the Indianapolis jurisdiction had waived the right to objections to formation of the new ledge, and the petition was presented bn that day to the grand lodge. Dispensation to organize was granted and signed immediately by Charles J. Orbison, grand master, and Calvin W. Prather, grand secretary. First officers of the lodge, all of whom served during Prospect's period of operation under dispensation, were Leslie Dobbs, worshipful master; Charles S. Bebinger, senior warden; John S. Irons, junior warden; E. E. Heller, treasurer; Oscar A. Merrill, secretary; Burton G. Morgan, senior deacon; Clarence E. Gunckel, junior deacon; John R. Callender, senior steward; Joseph E. Callender, junior steward, and William Nackenhorst, tyler. For quarters, the lodge rented for S6O per month the Franke dance hall at State and Prospect streets. Furniture for the lodge, consisting of three principal stations, an altar and a secretary's desk, was purchased from Indianapolis lodge for $l5O. Anew carpet for the floor S6CO. It had been estimated that the cost of outfitting Prospect would be about S7OO, but when the lodge was finally equipped as befitted a first rate blue lodge, it haa acquired besides its furnishings a debt of approximately SI,BOO. Such money as was necessary in advance was provided from the pockets of the charter members who were determined to see Prospect firmly established in Indianapolis masonry. a a FIRST stated meeting of the new lodge was held while still under dispensation on Nov. 5, 1919. Twen-ty-four petitions for degrees and

FISHER STRIKE ENOS; 8,500 RESUME WORK Auto Labor Board’s Truce Is Accepted. B.V Vnitrft Prrx* CLEVELAND, April 30. Skies began to clear on Cleveland's troubled labor front today. Fisher Body Corporation workers, numbering 8,500. went back to their jobs following action by the United Automobile Workers Federal Union in accepting a truce proposal made by the automobile labor board in Detroit. The gasoline strike continued, with all company-operated stations closed. More than 800 independ-ently-operated stations were open for business, however, and the gasoline drought was ended so far as the motorist was concerned. Medical Society to Meet Indianapolis Medical Society will meet at the Athenaeum tomorrow night to discuss "Autonomic Reflexes in Medical Conditions,” and "Results in Plastic Surgery.”

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seven for transfer were submitted to the young organization. Os these, seventeen petitioners for initiation and all seven petitioners for affiliation were elected to membership at the second stated meeting, which was held Dec. 5, 1919. The growing membership eased the burden on the lodge treasury and by February, 1920, Prospect had paid all its outstanding indebtedness. Peace and harmony, then as today, characterized the lodge meetings, which became larger and larger with the rapid growth in membership. Charter was granted to Prospect by the grand lodge of Indiana on May 24, 1920. Frank E. Gavin, present treasurer of the grand lodge, presided at the official institution of the lodge in June of that year, at which time the officers who had served the organization during its period under dispensation all were returned to their respective stations for the first year under charter. It was during 1920, also, that Prospect chapter, Order of Eastern Star, was organized with Mrs. Nora Murphy as worthy matron and Clarence E. Gunckel as worthy patron. Close association with this group has proved during all its years of inestimable value to Prospect lodge, not alone because of the chapter's generous gifts of furnishings for the lodge rooms, but also because of the assistance, always offered without stint when the lodge requested it, given by chapter membership. The meals, served by the Prospect chapter at social functions of the lodge, have earned an enviable reputation throughout Masonic circles in this city. nan TWO years following receipt of its charter, Prospect purchased the building which it was occupying at the time, paying $6,000 in cash

LOCKED CARS BEST PROTECTION AGAINST THIEVES, IS WARNING

Locking parked cars is the most efficient means of combating the activities of automobile thieves, Todd Stoops, Hoosier Motor Club secretary, declared today. "No unlocked car is safe on the highways or even in towns and cities,” Mr. Stoop said. "Automobiles should be locked completely. This means locking the ignition, doors, windows and gasoline tank.” "Ninety per cent of car thieving can be stopped if the owner will make it a habit never to leave his car parked without first seeing that it is securely locked,” Mr. Stoops asserted. City Bar Meets Wednesday Judge Michael L. Fansler of the Indiana supreme court, will be the principal speaker at a meeting and dinner of the Indianapolis Bar Association at the Columbia Club Wednesday night.

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Leslie E. Dobbs

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Paul Armstrong

and assuming a mortgage of $14,500 which was paid in full in 1927. Meantime its membership had been growing steadily and rapidly and in 1929 with nearly six-hundred names on its active roster, further improvements were thought essential to the lodge hall. Anew dining room, anew heating and ventilating system, a beautiful new social room, and a redecorated lodge room together cost $16,000, of which $4,000 was paid in cash by the lodge and an additional $2,000 by the Eastern Star chapter. Payments on the mortgage always have been met when due, and now after the trying years of the depression, Prospect finds itself in sound financial condition with a fine temple which will soon be free of indebtedness. Os the twenty-seven charter members whose early endeavors insured Prospect's high position as a neighborhood lodge today, only five have passed away. They are Leslie E. Dobbs, first master of the lodge; William Nackenhorst, Henry F. Brier, Ara G. Clary and Joseph Jegen. Past masters of Prospect lodge, all of whom except Mr. Dobbs are still living, are with their terms of service: Leslie E. Dobbs, 1919 and 1920; Charles S. Bebinger, 1921; John S. Irens, 1922; Clarence E. Gunckel, 1923; John R. Callender, 1924; Sarpuel Bull. 1925; Joseph E. Callender, 1926; Frank B. Meyer, 1927; George J. Weishaar, 1928; William I. Beymer, 1929; James P. Chesline, 1930; Clarence E. Lyster, 1931; Raymond F. Lane, 1932, and Clarence H. Kidwell, 1933. Present officers are Charles A. Kerr, worshipful master; Raymond F. Forbes, senior warden; Paul Armstrong, junior warden; Oscar A. Merrill, secretary; E. E. Heller, treasurer; Albert H. Mayo, senior deacon; William Belford, junior deacon; Harry E. Emmons, senior steward; Everett E. Beeson, junior steward; the Rev. Reiner H. Benting, chaplain, and John C. Hoover, tyler. Trustees are William I. Beymer, A. Ross Manley and George J. Weishaar. Mr. Weishaar also is Masonic Relief Board representative.

~ General Banking CHECKING SAVINGS SAFE DEPOSIT TRUST t AMERICA!* NATIONAL BANK AT INDIANAPOLIS Capital and Surplus $3,200,000 ☆ DIRECTORS J. I HOLCOMB .... President, Holcomb and Hoke Mfg Cos WILLIAM J MOONEY Sr., President, Mooney-Mueller Ward Cos G BARRET MOXLEY President Kiefer Stewart Cos JOHN H RAU President. Fairmount Glass Works JAMES S ROGAN President CHARLES B SOMMERS Presidcrv. The Gibson Cos FRANK H SPARKS . Treasurer Noblitt-Sparks Industries Inc ELMER W STOUT !. . . Chairman of the Board THOMAS D TAGGART President, French Lick Springs Hotel Cos J H TRIMBLE President, Trimble Realty Corporation SCOTT C. WADLEY President, The Wadley Cos.

PAGE 3

STAVISKY CRIME CAREER CAPPED BY BOND FRAUD Swindler Flooded Nation With Worthless Paper Before Crash. In the following article, seventh in series relating the inside of the Staviskv swindle—greatest post-war scandal in France—the devious methods bv which Serge Alexandre Staviskv raised himself to social eminence are told. BY SAMUEL DASHIEL AND THOMAS COPE I'nited Press Staff Correspondent* iCopvright. 1934. by United Pressi PARIS. April 30—The dashing and magnetic Serge Alexandre Stavisky, unruffled by imprisonment. arrived at a comparatively secure social eminence through bribery of petty government officials and through making others his unwitting accomplices. After experimenting with check raising, embezzlement and crofked gambling, he turned his talents to the boldest—and simplest—form of swindling. He bacame a company promoter, and flooded the country with unsecured bonds. The handsome Serge, masquerading under his psuedonym oi "Monsieur Alexandre." had emerged from a successful gambling season at Deauville. His pretty wife, Arlotte, had won prizes in her pastel colored automobile and her pastel shaded dress and hat to match. His chauffer wore immaculate white. Monsieur Alexandre himself had dared to buck the Greek combination at the Deauville casino, and his baccarat winnings were reputed to be all a grand duke might desire. So he moved on to the Basque, resort at Biarritz. Nearly Tnrned Honest It. was at this point in his career that Stavisky nearly turned to honesty. He had organized (with bogus capital) the Societe and Cannes, The company sold jewelry and found a ready market in the hordes of moneyed dowagers and actresses who swarmed in those flush resorts. But the money, though honest, came too slowly. Stavisky organized at Bayonne, adjacent to Biarritz, a municipal pawn shop. The mayor, Joseph Garat, a respected deputy, seems to have been a wholly innocent dupe, impressed by Stavisky’s breezy manner and his seeming wealth. The pawn shop had the backing of the town council, and for a time it prospered, thanks to the rich South Americans, retired Europeans, Maharajahs, Spanish grandees, adventurers and decayed nobility who make a practice of pawning their jewels annually. But "Monsier Alexandre” again was dissatisfied with the slowness of the profits. Under French law, a pawn shop is privileged to issue bonds to the amount of the pledges it holds. Stavisky corrupted the officials of the bank—known as the "Credit Municipal de Bayonne"— and soon began issuing bonds far in excess of the bank’s collateral. Only a little, simple crooked bookkeeping was entailed, for the ministry of finance paid no attention to what was going on. Bonds Had Wide Sale The bonds of the Bayonne company seeped through the np.tUni.*Did they not have the recommendation of the labor minister, Albert Delimicr? Were they not backed by the credit of the City of Bayonne? In December of 1933, however, an insurance company which had purchased thousands of the bonds became suspicious at the frequent offerings and decided to check stability of the bank by asking for cash when the bonds matured. That was the signal for Stavisky’s downfall. The Credit Municipal de Bayonne had no such sums as were demanded. The money was in Monsieur Alexandre’s portfolio. At first, only Controller Gustave Tissler of the bank was arrested. The authorities apparently had forgotten—for the moment—Stavisky’s association with the bank. Before warrants could be issued for "'he chief” he had disappeared, covered his tracks in Paris, and was "somewhere in the Alps.” He killed himself when police broke in on his retreat. Tomorrow—Stavisky and the Politicians.