Indianapolis Times, Volume 46, Number 72, Indianapolis, Marion County, 3 August 1934 — Page 1

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POSTAL INSPECTORS TO PROBE ALLEGED SECURITIES RACKET *2.>U,000 Loss to Customers of Purported ‘Bucket Shop’ Here Is Claimed; Four Employes Hunted. $250 FURNITURE IS SOLE ASSET Investigation Urged in 1931, Better Business Chief States; Milton 1). Ullman, Firm's Head, Is Dead. Postal insist tors today were asked to l>egin the probe of an alleged “bucket shop,” Mann & C., securities dealers, reported to have caused a loss estimated as high as $250,000 to its customers.

Four employes of the former firm, which had offices at, 91 l Merchants Bank building, were sought for questioning by federal as well as state officers. Loms R Markun, administrator of the estate ot Milton D Ullman. head of the firm brought the matter to the attention of the lederal inspectors. After a \uit to the company's offices. A. C. Garrigus, Indianapolis postal inspector, said that he would communicate with his superiors in an efTor’ to determine whether the federal government would lake action in the probe of the case. He said if it is shown that a living company official was involved in a federal violation that a case might be m ide, but that where only an employe was involved, that he feared no charges could be brought. The administrator said that furniture in the offices of the firm, valued at S3O. was the sole known asset of a company that in ’9331934 did a sto* k business of $617,109 with 141 customers throughout small Indiana. Kentucky and Ohio cities. Probe Asked in 1931 Herbert E Wilson. Marion countv prosecutor, when informed of the alleged machinations of the company. said that action might bo taken under the state securities act. ( T. M. Overlev. manager of the Reiter Business Bureau of Indian- i apolis pointed out today, however, that his bureau has made efforts to have the firm investigated by the state securities commission since late in 1932 and early in 1933. but without avail. Mr. Overley alleged that the firm's operations were those of a "sell-and-switch” stock brokerage. Customers were solicited over the phone. Stock was purchased for ihem. he charges, and then the customers w ere kept so in debt with the firm that they were forced to sell the stock and switch to another stock. Roth Mr. Overley and Mr. Markun were unable to find any securities or listing of the purchase of the stocks in the company's safe. Safe Broken Open Brokerage houses m Chicago and New York reported the firms accounts closed. Mr. Markun said tlie safe was broken open by a locksmith in the presence of an employe of the state securities commission. No securities or stock purchase books were found. A branch office of the firm in Trrrr Haute was empty of furniture, it is charced by Mr. Overley. when an investigation was made in that city. Governor Paul V. McNutt was appealed to by Mr. Overley as far back as the summer of 1933 and a probe was not started, according to Mr Over'.ev. until in July this year Mr. Ullman. the firm's head, died July 17 at Methodist hospital. Mr Markun said. Financial statement Denied Mr O'Neill demanded a financial statement from the company shortlj before Mr. Oilman's death. It was not submitted William O'Neill. Indiana securities commissioner, vacationing at French Lick. Ind said that complaints had beer, received against the company in 1933. but that they involved out-of-state customers and that investigations were made. He asserted that the firm haa fi’.cd the necessary bond and shown ihe required financial condition to be licensed as a dealer in securities. Each time we had a complaint against the company we took it up with Mr Ullman and the firm settled with the customer." Mr O Neill said. $86,321 Lost in Year "We have not ended our probe. What we would like to know is where the books on stock purchases can b* found We also wish to know if the stock is shown in some brokerage company’s ledger or is in a safety deposit box Letter? written by Mr Overley to customers revealed a loss of SB6 321 in the year of 1933-1934 to them. Mr. Overley pointed out that forty-four of the 141 customers were holdovers from the year 1933 and as a consequence estimated that the total losses since the firm began operation in October. 1932. might teach $250 000 of customers’ money. • The customers' list found in the firm s safe shows transactions ranging as high as S2O 000 to $25,000 Doctors, business men and widows were purchasers of the stock on a margin basis Oreencastle. Greenfield. W nchester. Gary. Spiceland. Lebanon and numerous other Indiana cit;cs are represented in the customers lhts.

The Indianapolis Times Fair tonight and tomorrow; slightly cooler tonight.

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VOLUME 46—NUMBER 72

INMATE KILLED BY CRAZED MAN Asylum Patient Wrenches Bar From Bed, Slays County Charge. Seized with a sudden fit of violent insanity, an inmate at the Julietta County Hospital for the Insane, today wrenched a three-foot iron bar from a bed in the observation ward and killed another inmate. The dead man us Daniel Faelir.g, 63. of 2115 South Belmont avenue, sent to the hosptail after a sanity hearing in superior court. Accused of the murder is Pete Gasris. 63. of 133 Hermann street, admitted to Julietta yesterday from the city hospital psychopathic ward. Milton Barger, an attendant, heard the noise of the struggle, and rushed into the ward just in time to see the dying man sink to the floor from a terrific blow on the head. Dr. E R. Wilson, deputy coroner, said that the fit of insanity must have been accompanied by a seizure of superhuman strength, because it was almost impossible foi a normal man to wrench the bar from the bed. Gagris. a native of Greece, had been a CWA laborer. Immediately after the slaying, he was placed in a private cell.

MUSSOLINI TO SPEND $102,840,000 ON NEW PLANES. BATTLESHIPS

By I hi ltd Press ROME. Aug. 3. Europe's unrest has caused Premier Benito Mussolini to appropriate 1.200.000.000 lire 1 102.840.000i for aeronautical construction and 354 000.000 lire ■ $30.337.800• [or naval construcMruction, the official Gazette revealed today. Most of the naval money will be spent on the two 35.000-ton battleships which Mussolini plans to oppose the new French battleships. POLICE BEGIN DRIVE ON ILLEGAL PEDDLING •.Morrissey Acts on Complaint of Poultry Dealers. Acting on the protest of embattled retail grocers and poultry dealers. Police Chief Mike Morrissey today gave special orders to his mon to enforce strictly all laws covering the peddling and selling of vegetables and poultry within the city limits. Chief Morrissey made it plain that his order was aimed particularly at street peddlers.

Labor Unrest Hits Links; Players Booed by Caddies Police Chase Pickets From Greens After Various and Sundry Bronx Cheers Break Up Tournament.

By I nited Press CHICAGO. Aug. 3—Probably the greens committee eventually will obtain intervention of the national guard, but in the meantime there's no less than a first class mess on the fairways of Exmoor. Caddy Master Frank Pilcrim was just reading about the truck drivers in Minneapolis tl was just thinking, what a terrible thing all this labor trouble is* when up walked Johnny Maloney plus a delegation.

Johnny spoke at length. The delegation looked scared but nodded solemnly. "And if we don't get $1 a round, right now." concluded John, "were gonna strike." Pilcrini took the situation posthaste to the club manager. The manager went to the chairman of the greens committee. The chairman telephoned his committeemen. The answer, unanimously, was No." So the boys struck. Unfortunately, a tournament for mixed foursomes was scheduled. Came the first foursome to the tee. No caddies. The players thought it funny. They decided to carry two cluhs and play anyway. The first player—a sweet young blond—teed up She waggled her club She shifted her spikes. She glanced down the fairway. Up swung her club. 800-o-o-ooo' Pss-s-sst! Meo-fl-ow! Yee-ee-upee!" thirty boys, ten yards away, erupted simultaneously. A distressing noise identified as the Bronx cheer sounded the bass. A lit lie white ball popped weakly upward and trickled some twenty

HITLER PAYS FAREWELL VISIT TO DYING HINDENBURG

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Adolf Hitler was one of the last persons to spea.c with President Paul von Hindenburg before his death. This Times-NEA Service radiophoto shows th; German chancellor (second from left*, who has succeeded to the presidential office, as he arrived at the Von Hindenburg estate in Neudeck. East Prussia, for his farewell visit. Bulking large beside Hitler is Colonel von Hindenburg. the field marshal's son.

COURT'S ORDER AMUSES HUEY Puppet Governor ‘Defied' j. Him: Can't Call Off Troops, He Says. ! Hut nit i and Press NEW ORLEANS. La., Aug. 3. Senator Huey P. Long left troopridden New’ Orleans today, bodyguards at his side, pretending to obey a court order that he revoke martial law in the city. He ambled into the state capitol at Baton Rouge and announced that his puppet governor, O. K. Allen, had defied him. There being nothing more he could do about the matter, he was going fishing, he said. The senator, "political sponsor" of Senator Arthur R. (Li'l Arthur) Robinson of Indiana, was joking. His dictatorship over state government is complete. The whole trouble is that he is trying to muscle in on New Orleans city government and that city has mobilized its police to full strength and sworn in 500 ritizen deputies o defend itself | and its offices from troop raids. It now remained [or city officials : to prove that Long was in control of ; the Governor's office and v the mi- , litia. City legal experts were busy at that task, hoping to be able to * jail the Kingfish for contempt of Judge Nat Bond's court. One thing was certain. The Kingfish would do no fishing while the strife raged. It was reported that he planned to have the Governor call the legislature into special ses- ; sion to amend the New Orleans city j charter and take the police out of I the hands of city officials. Freight Train Kills Woman By t nited Press MARION. Ind.. Aug. 3 —Mrs. Elsie Mae Pattison. 42. Swavzee. was killed and her son. Raymond, 18. was injured last night w’hen their automobile wass truck by a Nickel Plate freight train.

yards to the right. Thirty delighted caddies fell all over each other. Each of 200 succeeding players got a similar sendofT. Drives were terrible and second shots worse. And then the boys unveiled their aee. As the last player trudged off toward the green, twelve boys streaked for the pond off the thirteenth tee. They stripped. They jumped into the water. They splashed, they yelled, they waved merrily at passing players. Since three fairways pass the pond, they waved at practically everybody. A squad of police evicted them but not until a considerable number of women and apoplectic escorts had withdrawn front the tournament. A policeman remained on each tee. Today the caddy house bore a notice that "terms will not be discussed by the greens committe until the strike is called off." Johnny Maloney savs: •"The strike wont be called off until terms are discussed." General Johnson is in Chicago. but has been approached.

INDIANAPOLIS,'FRIDAY, AUGUST 3, 1934

Bulletin

By i nited Press MICHIGAN CITY, Ind., Aug. —lmproper handling of information that a break was going to occur and negligence on the part of at least three guards and officials was blamed today for the escape of five convicts from the Indiana state prison last week. In a formal report submitted to Governor Paul V. McNutt by Wayne Coy, his undersecretary in charge of penal affairs, recommendations for structural and administration changes in the prison were off ered. MICHIGAN CITY, Ind., Aug. 3. Kenneth Rogers. 22, Evansville, Ind,. and Louis Craill, 22, Michigan City, two of five convicts who escaped from the Indiana state prison last week, w\?re captured today at Hopkinsville, Ky„ prison authorities were informed this afternoon, t Two other escaped convicts, John Burnett, { .inton, and William C. Jay. Michigan City, were caught <vt Mexico, Mo., early this week.

TERRE HAUTE POLICE OFFICER SNOT DOWN Patrolman Slain by Negro House Breaker. Ri> Uniti A Press TERRE HAUTE. Ind., Aug. 3 Walter Lanfair. 45, Terre Haute policeman. was shot to death today while attempting to arrest a Negro burglar. Officer Lanfair and two other policemen were sent to the James T. Buckley home after a neighbor had reported a man was breaking into the house. Officer Lanfair was entering from the rear when the gunman opened fire without warning He fled to a car and escaped. CITYMAN INJURED” SERIOUSLY BY AUTO Struck While Crossing Street; Driver Is Arrested. Jesse Mobley. 60. of 510 East Ohio street, is suffering from serious injuries in city hospital today as the result of an accident at Alabama and Ohio streets last night. He was crossing the street when he was struck by an automobile driven by Albert L. Fishman, 805 Inland Bank building. Mr. Fishman was arrested on a charge of failure to have a driver's license. VICTIM BADLY BEATEN BY FIVE HOLDUP MEN Resident Goes to Hospital After Robbery Near Home. Beaten unconscious by five hoodlums, robbed of $1 and a pair of shoes. Harry E. Higgins. 42. of North Sheffield avenue, was thrown into a church yard a few blocks from his home shortly after midnight. Mr Higgins, who had been paid yesterday, was reported as in ‘ fair’’ condition at city hospital today. He is suffering from head injuries and lacerations. Hourly Temperatures 6a. m 70 10 a. m 83 7a. m 72 11 a. m 84 Ba. m 78 12 moon).. 85 9 a. m 80 1 p. m 87

POISONED CREEK BARS PLAYLOT

Pollution in Little Eagle Creek Upsets Plans of Park Board. The murky hand of stream pollution threatens to snatch a proposed playground and bathing beach from west side children, park officials declared today. Industrial v astes pouring into Little Eagle creek have caused the park board to threaten to abandon plans to acquire a nineteen-acre park on West Michigan street. On the site of the proposed park, officials planned to dam Little Eagle creek and construct a bathing beach. A. C. Sallee, park superintendent said. Unless the stream is cleared of pollution, the park board will be forced to abandon its plans to establish a much needed park for west side residents, he said. “The site is splendid for the construction of a small lake or pond,’ Mr. Sallee asserted. "However, we do not w r ant children bathing in an acid-laden stream." The pollution is caused by five factories at Speedway City that use the stream as an outlet for their sew-age and wastes, Mr. Sallee said. Dr. Herman G. Morgan, city health officer, w'as asked to investigate the pollution of Little Eagle creek. He has advised the park board to resort to the state law's for protection of the stream, it w-as learned. Bacteria Count High Because of the absence of a swimming pool or bathing beach in the neighborhood, many west side children frequent dangerous unguarded spots along Little Eagle creek for swimming. Tests made by The Times show that the waters have a high bacteria count caused by sewage. A recent test showed that there w'as a count of 8.000 sewage bacterial per hundred c. c. of water. If the park department can eliminate pollution of the stream, the West Michigan street site would be excellent for swumming purposes, it was said. At the present time the nearest bathing spots are at Rhodius park and at McClure beach, both some distance from the west side community. Civic Leaders Rack Site West side civic leaders have urged the park department for some time to acquire the West. Michigan street site, known as the Henry Harding property. After recent negotiations, the park department was prepared to trade a plot of ground in the 600 block. Grande avenue, for the nine-teen-acre tract at Little Eagle creek and Wast Michigan street. Unless some action is taken to clean up the stream, the park board will cancel its negotiation for the property. Mr. Sallee said. Times Index Page B<>rg Cartoon 14 Bridge 10 Broun 13 Classified 21, 22 Comics 23 Crossword Puzzle 8 Curious World 23 Editorial 14 Financial 20 Food Pages 16, 17 Hickman—Theaters 21 Let s Go Fishing 19 Pegler 13 Playground News 2 Radio 12 Serial Story 23 Sports 18. 19 State News 2 Vital Statistics 20 Woman s Pages 10, 11

EIGHT LIVES ARE LOST IN STORM; DAMAGE TOLL IS MORE THAN $1,500,000

Scores of Stool Pigeons Used in Dillinger Hunt, Captain Leach Discloses State Police Sleuth Relates How One Informer Barely Escaped With Life After Hoosier Outlaw Almost Was Captured in Chicago. BY BASIL GALLAGHER Times Staff Writer. (Copyright, 1934. bv The Times i Captain Matt Lcaeh of the Indiana state police used more than forty “stool pigeons” to follow the long, bloody trail of John Dillinger and his mobsters. Department of justice agents, it is estimated, used three times that number of informants to help trail the Hoosier desperado along the murder-strewn path which led from Canada to Florida and from Pennsylvania to Arizona.

And now with Dillinger dead—killed in a Chicago alley—the indisputable* evidence reveals that “stool pigeons” led him to his doom. Mrs. Anna Sage, “the woman in red" and Polly Hamilton, the two women who accompanied Dillinger to the movie theater in front of which he was killed, have been spirited away by the federal men. Some day they may share in the reward which enticed informants to put Dillinger "on the spot.” "It is sad but true.” says Captain Leach, "that the police are forced to work with "stool pigeons.” But on a job like the Dillinger case they are absolutely essential. It stands to reason that any information you get about criminals must come from the underworld. And all that crow : d are "rats” of one kind or another.” Safe With Police “The big lesson in this case,” Captain Leach continued, "is that criminals really have more to fear from their underworld acquaintances than they have from the police.” "Let me tell you a story about that,” he continued. "Shortly after Dillinger was freed from the Lima, (O.), jail by his pals, who murdered Sheriff Jess Sarber in cold blood, a fine looking chap about six feet tall and very well dressed came to my office in the state house. “I have withheld his name for nearly a year but since Mary Kinder, Pierpont's ’gun moll’ has named him in an article published in another city there is nothing more for me to conceal. But Mary only told one-tenth of the story. “My caller told me that his name was Arthur McGuiness and he had done a ‘bit’ in the state prison with John Dillinger. Work—For a Price “I was surprised for this man looked anything but a jailbird. His English W’as precise and his voice courteous and well modulated. He looked like a prosperous business man. "Apparently he saw my surprise. He then informed me that he had been a bank clerk in Indianapolis and had been sent away for embezzlement and later paroled. "Now ; it seemed that he thought he knew where Dillinger was hiding in Chicago and wanted to go to work for the state police and help locate the desperado—for a price.” "Later,” Captain Leach continued, “I discovered that m.v informant already had made a deal with an

Germany to Vote Hitler Life Rule in ‘Election ’ Referendum to Be Held Aug. 19 and Result Is Foregone Conclusion: Economic Difficulties Looming. By f nited Press BERLIN. Aug. 3 —The German people at a referendum on Aug. 19 will be asked to confirm Adolf Hitler in office as supreme ruler of the nation —Fuehrer and Reich chancellor—for life.

Preparations for the referendum began today. The ballot will ask a "yes" or "no’' answer to the question: Whether the Aug. 1 cabinet law merging the offices of President and Chancellor is approved. The ballot mentions Hitler as reich fuehrer with no restriction whatsoever on the period of his term The result of the referendum is a foregone conclusion. The former Austrian housepainter thus will achieve his life’s ambition. He will become the absolute ruler of 63,000 000 people, capable of being overthrown only by revolution. Paul Joseph Goebbels, minister of propaganda has been laying the groundwork for th? referendum since the beginning of the week, when it became apparent President Von Hindenburgs condition was hopeless. Meanwhile Hitler prepared for a grim economic fight that may decide his political fate. Germany faces an economic crisis of major importance. Hitler is supreme. It Is Hitler or chaos. But in the gray fall and winter months he and his Nazis must guide the country through suffering and privation. On his success depends his future. To aid him, Hitler named Hjalmar Schacht, -president of the j

tlutered s Second-Class Matter Ht Postoffiee. ludianapolia. Ind

Indiana surety company which was seeking to recover some of the bonds stolen by Dillinger in his raids. "I made a deal with the informant and he departed for Chicago. From time to time 1 heard from him but he reported little progress. He always needed money, it seemed. Later I realized that he was getting money from me, from the federal agents and from the surety company. He managed to keep pretty well heeled. ' "Well just as I was about to put this informant in the n. g. class with a lot of other stool pigeons, the wires began to get hot from Chicago. "McGuiness had contacted Dillinger, it seemed. I lost no time in getting to Chicago taking several of my men with me. "We met our informant and he told us that Dillinger had been located and soon would be ready for delivery. It sounded too good. "The ‘stool,’ I later found out, actually had located Dillinger through underground sources in Chicago and not only had eaten (Turn to Page Three)

ROOSEVELT’S CRUISER HEADS FOR PORTLAND ON LAST LEG OF TRIP

By United Press PORTLAND, Ore., Aug. 3—President Franklin 1). Roosevelt, returning from his long sea-going vacation, entered Portland harbor at mid-morning today on the last leg of his long voyage on the cruiser Houston. The Houston cruised leisurely up the 100-mile stretch of the Columbia river and swung into the Willamette river at 9:15 a. m. MRS. PEARSON ENTERS PLEA OF NOT GUILTY Slain Farmer’s Wide* irraigned on Accessory charge. (Earlier Details on Page 3) Mrs. Ethel Pearson, widow of Alfred C. (Dan; Pearson, murdered Beech Grove farmer, today entered a plea of not guilty to charges of accessory after the fact before L. Ert Slack, criminal judge pro tern. Judge Slack refused to allow Elmer Heuser, Garfield park policeman accused of killing Miss Garnet Bradley, beautiful Richmond (Ind.) stenographer.’to plead before him. He explained that Heuser was his client.

reichsbank, his minister of economics for a six months period. Body Lies in State B'j United Prat NEUDEK, East Prussia, Aug. 3. Field guns on army parade grounds and batteries on warships at sea roared martial tribute today to President Paul von Hindenburg, Germany's greatest soldier, as his body lay in state at his Neudeck chateau. The clanging of church bells called the faithful to prayer for the soul of the old field marshal. Every flag in the country was at half-staff. Millions wore mourning bands. Music was stilled. Last night workers on his estate and their families, numbering 150, edged shyly into the room to pay their respects. It was simple, but meet poignant mourning. During the night of MondayTuesday Hindenburg s body will be taken from Neudeck to Tannenburg, about thirty-seven miles. The final ceremony will begin at II a. m. with the rendition of the mourning march from Beethovens Eroica symphony. Hitler then will deliver the final oration over the field ni rshal.

HOME EDITION PRICE TWO CENTS Outside Marion County, 3 Cents

Hundreds of Plate Glass Windows in Downtown Flint Are Shattered. OTHER TOWNS SUFFER Weather Bureau's Valued Instruments Destroyed, Is Report. By U nited Press FLINT, Mich., Aug. 3. ■ Eight lives and more than $1,500,000 in ruined crops and damaged buildings were the toll today of two storms that swooped down on Michigan and Illinois communities late yesterday. Eight were known dead in Michigan. Damage there was estimated upward of $1,500,000. In Illinois, tornadoes caused at least SIOO,OOO damage in three counties, but took no lives A 100-mile wind, heavy with rain and hail, leveled buildings and crops along a 100-mile path tn southeastern Michigan. At least a dozen communities m the two states were left without electric light or power most of the night. Flint was hardest hit. Hundreds of plate glass windows in the business district were shattered by hail. Weather bureau instruments were demolished. Sirens Add to Effect The storm roared down on Flint out of the northwest at 4 p. m. In fifteen minutes, street cars were ! stalled without power. Automobiles i were stalled in foot-deep puddles. Factories were idle and dark. As midnight darkness settled over the city, the lights failed. Fire engines, answering alarms caused by falling electric wares, and ambu lances, rushing to pick up injured, screamed through the streets, adding to a general pandemonium. An emergency room was lished in the engineering room or Hurley hospital, because elevators were not working to take scores of injury victims to the regular emergency room on the tenth floor, j Nurses held flashlights w’hile doctors gave first-aid to the scores of injured. Similar seem s were enacted all along a 100-mile path from Flint to Detroit. Communication with many small cities, such as Marine City, Algonac and Imlay City, was impossible lorn hours. j Steamer Blown Aground Near Algonac, on Squirrel island, an excursion steamer was blown aground, leaving 1.400 excursionists/ marooned at Tashmoo Island park’, where they were waiting to board the steamer for Detroit. The crew was rescued. M. G. Willett and his son, Bobby, ; were drowned in Cass Lake, Mich. Charles Van Blaircoum was killed near Detroit when the wind blew his car from the road. Mrs. O. W. Pickard, 33, and her two children, Lucille, 11, and Perry, 6, w’ere drowned in Lake St. Clair when their boat overturned. Michael Roddy, 84, Big Rapids, fell dead of heart disease as he watched the storm. An unidentified man died in Flint when he suffered an attack of heart disease while clearing away a tree fallen In the street. JAIL TERM IS UPHELD FOR CODE VIOLATION Auto Dealer Who Undersold Car Must Serve 3 Months. By United Press NEW YORK, Aug. 3.—A threemonths jail sentence imposed on Gordon S. Harris, automobile dealer, on a charge of violating the motor vehicle retail code, was upheld today by Supreme Court Justice William Harman Black. Harris was accused of selling an automobile for SSO less than the list price. MARIE DRESSLER WILLS $50,000 TO SERVANTS Film Star Rewards Loyalty of Negro Couple. By t nited Press LOS ANGELES, Aug. 3.—Two Negro servants who attended Maria Dressier, film star who died last week, "with loyalty and devotion,” today received notice the actress had left them a handsome reward. The servants, Harry and Mamie Cox, will receive $50,000 in cash and her silverware, according to terms of the will on file here. TRACKLESS CARS TO SERVE PROSPECT ST. New Trolleys to Begin Operation on Sunday. Trackless trolleys will replace street cars on the Prospect street lme Sunday, J. P. Tretton. general manager of Indianapolis Railways, announced today. The new lme will be the tenth trackless trolley route in the city. It will be through-routed, by way of Washington street, with the West Tenth street trolley.