Indianapolis Times, Volume 46, Number 100, Indianapolis, Marion County, 5 September 1934 — Page 3

SEPT. 5, 1934,

$1,000,000 EMBEZZLEMENT IS CHARGED IN BANK REPORT TO JUDGECOX BY RUCKER Prosecution of State Savings and Trust Officials Is Urged by Special Investigator for Circuit Court Head. 'Continued From Pace One)

and to losses sustained before the depression was at its worst. In urging civil suit to recover on the statutory bonds of the bank's officers and of the then banking superintendent. Mr. Rucker says that, without the money which may possibly be recovered on these bonds, there is no chance of a dividend to depositors. Report Is Quoted The bank closed with $1,435.955 22 on deposit. The assets on closing were, according to Mr. Rucker, "NOTHING.’* The capitals are his.) Mr. Rucker quotes a report from the bank to the state bank commisioner in 1930 as listing the following officers and directors: Officers: Scott R. Brewer, president; James A. Houck, vice-presi- , dent and treasurer; G. F. Miller, j secretary; Kathryn Holland, assist- j ant secretary; Myron S. Harlan, vice-president; E. Kirk McKinney, vice-president; Don E. Brewer, bond department manager; Hiram D. Keehn. trust department manager; Joseph T. Brady, savings department manager; R. A. Franke, rental department manager; Thomas O. Caulkins, safe deposit department manager. Directors: Mr. Brewer, Mr. Harlan, Mr. Houck. Mr. McKinney, Edgar Ashby, William A. Pickens, Clarence C. Wysong. Makes “Urgent” Suggestion One director is charged by Mr. I Rucker with possibly inducing a depositor to deposit $20,850 in the bank approximately ten days before it closed by telling him the bank was sound. Mr. Rucker suggests that the director may have—or should have—known of the bank's alleged insolvency at that time. His report contains an urgent suggestion that civil suits on the officers’ bonds, and on the former bank commissioner’s $25,000 bond, and all criminal action be instituted as soon as possible, since, in several instances, the statute of limitations will intervene within a few months. Mr. Rucker, wiio again criticises Mr. Wilson as he did in earlier reports. suggests that the prosecutor’s office may wish to have affidavits sworn out to avoid the delay of grand jury proceedings. His criticism of the prosecutor's office in this report lies in the fact that it tried Melville S. Cohn, vicepresident and director of the Meyer - Kiser bank, on embezzlement charges growing out of a transaction involving a subsidiary corporation rather than under the bankers’ embezzlement act. Covered by Law This law covers the receipt of deposits with knowledge that a bank is insolvent, and it is Mr. Rucker's contention that, while Mr. Cohn was convicted, the conviction would be e-urer under the bankers' embezzlement act. “It would appear from the facts disclosed.” writes Mr. Rucker, “that the bank commissioner has been grossly negligent and would be liable at the suit of the receiver ) and. to my view, of the losing del positors. I "The trust company should have Ibeen deprived of banking rights in ■1924, or 1925. if the documents l:peak the truth. * "The bank commissioner reported in December. 1929, that the subsidiary, the State Property Company, was then insolvent, the paper of which was the bank's major asset. He must have known the insolvency for years before the closing, or. at least a year before, when its own records showed the same.” Another portion of his, report suggests the possibility of prosecuting some of the officers for perjury in the making of an alleged false report to the commission. This, he suggests, might be held in reserve in case of failure of a main prosecution of which he writes: “It is fairest to the state, the defendants and depositors that the principal and actual trial indictment be under the bankers’ embezzlement act. This act pertains especially to the banking offense. Legislation Is Mentioned “The latter are entitled to knowhow they lost their money: the facts, if ever portrayed publicly, would induce needful legislation making the banking department a useful institution, banks safer, confidence more secure and protection to the honest banker from wildcatting competition. “It appears that the entire sum of deposits held at the time of failure. -namely $1,435,935.22. was received by officers when, to their knowledge, the bank was insolvent.” Mr. Rucker, who acknowledges indebtedness to the depositors committee for the mass of facts set forth in his report, also goes into the fine detail of the procedure of prosecution he suggests. “The evidence shows.” he insists, “that it was not the depression, but bad banking and insolvency for years before the closing that wrecked the State Savings and Trust Company. "During all this time, in violation of another express statute, the executive officers kept open their doors and received hundreds of thousands of dollars in deposits, knowing that they never would be returned. Talks of “Humanities” “Not only did the executive officers actually know of the insolvency, but their very duties imperatively required them to know it." Os the feasibility of embezzlement proceedings. Mr. Rucker writes: “The state as well as the defense ha* the nght to Invoke in a proper case the ‘humanities.’ This it may do ... by showing the loss of $1,500,000 o< the small mans deposits; it may show gross insolvency and ultimate and final disaster, as distinguished from the evidential rights of the state in other forms of charging " Mr. Rucker denounces as false the banks business sheet for the

last day. which shows $2,471,639.47 in assets witji $2,054,393.56 in liabilities, leaving a listed excess of $417,245 91 assets over liabilities. The special investigator characterizes this excess as "altogether a paper one.” Summaries presented by him tend to how that the liabilities remained as listed, while the bank "had no assets whatsoever.” Mr. Rucker points out that one of the law's prescribed tests of solvency is the ability of a financial institution to liquidate over a reasonable period of time and that, in the four years since closing, two receivers have been able to realize only $108,781.27.

SLEEP SICKNESS WAIKALARMING State Asks Federal Aid to Check Epidemic; Four ' Dead Here. With sleeping sickness cases having reached "an alarming stage” the state health board today announced it had appealed to federal health authorities to take charge of a campaign to halt the epidemic. New cases were reported yesterday at Hartford City and Muncie. Several deaths and a number of persons ill with the disease have been reported in Evansville. Four deaths have resulted from the strange illness at Indianapolis. The exact number of deaths in Indiana from the disease was not known by the state health board, but Dr. Thurman B. Rice, state epidemologist, estimated that at least fifteen persons had succumbed. The malady first was reported in Evansville. Dr. J. W. Jackson of the state health board staff was sent to the southern Indiana citylast week to investigate the epidemic. He was given orders ‘o isolate all cases. Dr. Rice said the disease affects persons in different ways. Some patients drop into a deep sleep or stupor and remain that way while others can not sleep. Some are affected with a form of paralysis. He said the only thing which will curb the spread of the disease is cold weather. •PEEPING TOM’ GIVEN 90 DAYS, FINE OF $lO Negro Is Convicted, Sent to State Farm by Judge. Caught peeping into the windows of a nurses’ home at 1232 West Michigan street, Otis Lovelace. Negro, 1049 Holburn street, was convicted in police court yesterday and given a sentence of ninety days on the Indiana state farm and fined $lO and costs by Municipal Judge Dewey Meyers. Lovelace was identified by a detective as the same man who was convicted in 1932 on the same charge, under the name of Robert Price. PARKED CARS LOOTED Clothing Valued at 570 Taken from Woman s Auto. Clothing valued at S7O was stolen from the automobile of Mrs. Harold Powell. 5335 Broadway, parked near the Riverside golf course last night, according to police reports. Other thefts from parked cars last night were those of articles valued at $45 from Bertie Anderson, 219 Hampton drive; articles valued at S2O from Mrs. Cecil Morris, 2630 College avenue, and clothing valued at $29 from Ora A. Thomas, 339 West Thirtieth street. ASKS SIO,OOO DAMAGE Suit Is Filed by Woman Against Street Railway Company. Claim for SIO,OOO damages was filed in superior court yesterday byMrs. Bertha McCalister, 3908 East Washington street, against Indianapolis Railways Inc. The suit alleges Mrs. McCalister was injured when her husband's auto and a company bus collided at Delaware and Thirtieth streets on Jan. 14. LIQUOR MEN TO MEET Federal Officials to Address Wholesalers at Conference. John E. O'Neill, Joseph de Ganahl and A. L. Lacy, federal alcohol j control administration officials, will address liquor wholesalers from all over the state at 8 tomorrow night in the Claypool. The discussion will be concerned with liquor code problems. SCHOOL BUS WRECKED Twenty-One Children Bruised as Carrier Hits Pole. Sy In it'd Press ALBION. Ind., Sept. 5.—A school' bus left the road and crashed into a utility pole south of Skinner Lake yesterday, injuring one girl and | bruising thirty other children. Virginia Waites. 17. suffered leg : injuries. Forrest Hoffman, 30, was driving the bus. Adventurer's Diary Found fiy Unit rd Press ST. JOHNS, Newfoundland, Sept. 5.—A tin can. containing the diarj. a chart, and the pilot book of John Smith, who set out two months ago from Peterboro, Ont., to cross the ocean in a canoe, was picked up today in St. Johns Bay. The canoe itself was found, floating near the northwest coast, ten days ago.

A LITTLE TOUCH OF DUTCH IN THE STATE FAIR ATMOSPHERE

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Blue-ribbon pigs, cows, chickens, dogs and horses are not the only attraction at the Indiana state fair, as Miss Rose Marich will testify. Attending the f air for the first time, Miss Marich enjoyed the windmill’, through which she is shown peering, together with ail the other farm implements.

30-CENT TAX RATEAPPROVED Objections to Age Pension Appropriations Are Rejected. Rejecting objections to appropriations for old age pensions and bond refunding, Marion county council today adopted the 1935 budget. The 1935 county tax rate is 30 cents, one of the lowest in county history, according to Auditor Charles A. Grossart, whose recommendations for budget slashes were adopted by the council. At the same time, the council adopted ordinances providing for the issue of $352,800 county refunding bonds to meet 1935 maturities for w-hich no funds are made available in the new budget. During budget hearings yesterday, Fabian W. Biemer, chief deputy auditor, explained that refunding was decided upon because a favorable market for the securities exists and because debt requirements until 1940 will be reduced annually. The refunding policy will equalize sinking fund tax levies for the next five years, Mr. Biemer declared. The policy drew the objection of Virgil Sheppard, chamber of commerce research bureau director, wW said the refunding of bonds was unnecessary because tax reduction could be accomplished without omitting sinking fund items. Harry Miesse, Indiana Taxpayers’ Association secretary, complimented the county council and Mr. Grossart for their work in reducing the tax burden. His only objection to the levy, he said, was the inclusion of items for financing delinquent taxes. The 1935 levy is 26 cents lower than 1934 on each SIOO of taxable values. MASKED BANDIT GETS $260 LOOT IN HOME Robber, Surprised at Work, Holds Man at Revolver Point. Police today are searching for the masked bandit who ransacked the home of John J. Gilchrist, 4428 Guilford avenue, last night and held Mr. Gilchrist at the point of a revolver when he surprised the bandit at work. The bandit escaped with articles and cash totalling $260. Mr. Gilchrist walked in the door and was met by the burglar, who ordered him to place his money on the table.. While Mr. Gilchrist was doing this the bandit became frightened and fled. SENATOR PITTMAN IS VICTORIOUS IN NEVADA Roosevelt Aid Easy Winner in Democratic Primary. By United Pres* RENO, Nev., Sept. s.—Senator Key Pittman of Nevada today was assured of the Democratic senatorial nomination after easily outdistancing two opponents in the Nevada primary yesterday. With more than half the state's 247 precincts reported. Senator Pittman had 5.946 votes to 2,531 for H. R. Cooke. Reno attorney, and 1,006 for Bob Moore. Las Vegas attorney. Senator Pittman has represented Nevada in the senate for twenty-two years and is recognized as one of President Roosevelt's "right-hand men.”

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THE INDIANAPOLIS TIMES

SACRED HEART CHURCH TO STAGE CARNIVAL Three-Day Fair to Be Held Tomorrow, Friday and Saturday. Sacred Heart Catholic church will sponsor a three-day carnival tomorrow, Friday and Saturday at Union and Palmer streets to obtain funds for improvements on parochial schools. Features of the carnival are the carnival queen contest, the winner of which will receive a trip to the world’s fair, exhibition boxing matches Friday night and dancing each night. FLOWER MISSION TO SEEK $54,228 FONO Goal Is Set for Hospital Unit Drive. A goal of $54,228 has been 6et in the Indianapolis Flower Mission’s campaign for funds for a tuberculosis unit at city hospital, it was announced today by Frank B. Flanner, campaign chairman. The $54,228 to be raised by public subscription will be combined with an equal amount now in the mission’s possession and with a public works administration grant of 30 per cent of construction cost to raise the $141,908 which, it is estimated, will be required to build the tuberculosis unit. The unit will be a two-story structure capable of accommodating 102 patients. The mission directors’ board will meet at 10 tomorrow in campaign headquarters, 712 Chamber of Commerce building. PRIEST WILL GO EAST • • Father Bastnagel to Resume University Duties. The Rev. Clement V. Bastnagel will return next week to Washington to resume his duties as professor of canon and civil law at the Catholic University of America. He is a priest of the diocese of Indianapolis and has been stationed here this summer to assist in pastoral duties at SS. Peter and Paul cathedral. Father Bastnagel is a native of Evansville and will visit relatives there before returning to Washington.

All-steel coaches make your seat on the interurban as safe as your COMPARE favorite chair at home. There are these interurban fares •turdy walls of steel between you with automobil e costs and danger. You can relax as you toJJSSaPOLIS ■- ride, without road fatigue or driv- To One ing strain. At the a mile Louisville 12.34 53.31 round trip fare, the interurban is **- Ijr * r0 * 2,4 3 " \ Terre Heute 1.44 2.16 cheaper, too, than driving an Richmond 1.37 2.06 automobile. INDIANA RAILROAD SYSTEM

FEDERAL LOAN REPORT MADE $7,000,000,000 Let Out by • U. S. to Save Homes and Business. By United Press WASHINGTON, Sept . s.—Government has loaned more than $7,000,000,000 to save businesses and homes from depression ruin, Donald R. Richberg reported today to President Roosevelt in a summary of New Deal efforts to relieve financial pressure. Mr. Richberg is secretary of the executive council. He reported that: 1. RFC actually has disbursed $5,853,000,000. 2. The Home Owners’ Loan Corporation has advanced $1,299,455,000, ending a real estate panic and saving the homes of 432,000 families from foreclosure. 3. Five banks insured by the EDIC have failed. 4. Federal Home Loan bank system loans are far below capacity because of faults now being corrected. Today’s report was the fourth of seven. 3 KILLED, GIRL HURT CRITICALLY IN CRASH Three Cars Collide; Recent Bride Is Near Death.. By United Press SOUTH BEND, Ind., Sept. 5. Three persons were killed and a 20-year-old bride of seven weeks was injured critically late yesterday in an automobile collission involving three automobiles on Michigan State Road 62, just across the Indiana line. Tlie dead were: Richard Burke, 27, South Bend; Howard Reece, 25, South Bend; Morton East, 55, Vandalia, Mich.; Mrs. Joan Lane, 20, sister of Burke, was taken to a hospital at Cassopolis, Mich., suffering internal injuries and a brain concussion. Little hope was held soy her recovery. Italian Students to Visit ROME, Sept. 5. A group of Italian students will leave Rome Saturday for New York, where they will visit a number of American colleges and universities, and present to President Roosevelt a 400-page volume describing in English, the history of the organization of Italian universities.

KYLE CANDIDATE OR PRETENDER, BOARD PONDERS Court Test May Be Needed to Settle Dispute Over State Post. BY JAMES DOSS Times Staff Writer Some enterprising taxpayer, of either party, with a bent for public service, can come to the rescue of the state election board and help straighten out a very vexing situa- ; | tion. The problem before the board is whether to place on the election bal- j lots, which must be printed soon, j the name of Joseph Kyle. Gary, Republican candidate for LieutenantGovernor. The Democrats contend that Mr. Kyle is a sort of political “bride in name only” and is just a pretender to office. Democratic leaders say the office of LieutenantGovernor is not at issue this fall and is being filled by M. Clifford Townsend. So does Mr. Townsend. However, the Republicans are equally insistent that Mr. Townsend is just an interloper and no longer Lieutenant-Governor because he vacated the post by becoming state commissioner of agriculture under the McNutt reorganization program.

Two Courses Open The Republicans say that Mr. Kyle was nominated duly in the Republican state convention and that to deprive the electorate of the right to vote for Mr. Kyle, who is a very popular fellow, would be heinous, indeed. So there you are and so is Mr. Townsend, Mr. Kyle and the election board. This is where the enterprising taxpayer with a bent for public service could enter the scene with a fanfare of trumpets. Political experts say two courses might be adopted. A Republican taxpayer could file suit to mandate the election board to place Mr. Kyle’s name on the ballot. Or, equally effective, a Democratic taxpayer could file suit to enjoin the board from putting Mr. Kyle’s name on the ballot. Then the courts could decide. Republican member of the board, who logically may be expected to see eye to eye with his party on the Kyle question, is Fred Gause. The Democratic member is W. W. Spencer. Governor Paul V. McNutt casts the deciding vote by virtue of his office.

Record Vote Indicated Meanwhile, the state printing board is compiling requests from county clerks for ballot supplies and finds verified predictions that the largest vote in the state’s history will be cast this fall. Copies of the state election laws, recompiled, are being printed and will be ready for distribution in a few days, according to Robert Mythen, clerk of the board. Mr. Mythen said this year’s issue would be more comprehensive than ever before and through close indexing would enable the average voter to find quickly any interpretation of the election statutes. Approximately 25,000 are being printed and will be distributed not only to the state’s political units, but also to libraries and law schools in all parts of the country and its island possessions for study. union" selects board Filling Station Men Name Group for Parley. A committee’ to represent the Filling Station Employes Union, 18,990, in arbitration sessions with a committee representing seven oil companies here, was named at a meeting of the local Monday night. Bryant Gantz, a member of the union committee, said arbitration on union demands will be started in less than ten days. MARNE PALS~~TO MEET Buddies to Gather Saturday Night at Reiter Home. The Marne Division Buddies Society will meet at 8:30 Saturday night at the home of Adrian A. Reiter, 2927 Park avenue. All former members of the Third division, A. E. F., or A. F. in G., are invited to attend.

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DIRECTS SPEAKERS

Herman B. Gray Vice-chairman of the Republican state committee speakers’ bureau is Herman B. Gray, local attorney. His appointment was announced today by Frederick E. Schortemeier, bureau chainrman, and former secretary of state. Offices of the.bureau are located on the seventh floor of the Claypool.

7-WEEKS-OLD BABY IS GIVEN WHISKY IN STOMACH OPERATION i

By United Press KANSAS CITY, Mo.. Sept. 5. Leroy Andersdn, 7-weeks old, became intoxicated on whisky yesterday, but it was all to a good purpose and just what the doctor ordered. Leroy, son of Mr. and Mrs. Donald Anderson, slowly was starving to death because of a stomach obstruction. A delicate operation was necessary but because of the baby's age, it could not be given ether. So whisky was decided upon. An ounce of whisky was mixed with an ounce of water, and the solution, drop by drop, was given Leroy through a tiny sugar-filled sack placed in his mouth. When the child became intoxicated, a local anaesthetic was given and the operation performed. Surgeons said the “hangover” was slight and that Leroy probably would recover. Drama Conference Set BLOOMINGTON, Sept. s.—First state-wide drama conference and demonstrations will be held at Indiana university, Nov. 15 to 17. The event will be arranged by the extension and speech divisions of the university and the dramatics committee of the state teachers of speech division.

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COMMITTEES TO MAP DEMOCRAT RALLYSELECTED Dr. Will H. Smith Jr. to Head Group Planning Session Sept. 14. Committees to plan the official opening of the Marion county Democratic campaign Sept. 14, were named last night by the Cosmopolitan Club in the Lincoln. Dr Will H. Smith Jr., club president and newly crowned wearer of The Times Brown Derby, will head the general committee on arrangements for the rally, which will be held in Tomlinson hall. Other committee heads are Mrs. Margaret Farr. Miss Marie O'Connor and Mrs. Mark Green, special women's attendance committee; Ben Feingold. decorations and stage tickets: Dr. Theodore Cable, music; Otto Ray, drum corps; Dr. Smith, Mr. Feingold, Jack King, Dr. Cable and Walter C. Boetcher. county chairman, program, and Roy J. Ray, ushers. Oscar Hagemeier, grand jury deputy prosecutor, will speak tonight at a meeting of the Perry Township j Democratic Club at township headquarters, 4302 Madison avenue. ; Greyble McFarland, township chairman, will discuss organization work. Franklin McCray will speak tonight at an open meeting of the Third Ward Republican Club at 2230 College avenue. R. A. Barnard will preside.

Dr. Will H. Smith Jr.. tan Club president, will speak tonight at a meeting at Twenty-ninth and Clifton strets, at which organization of a Sixth Ward Democratic Club will be affected. Fred Eisenhut is ward chairman and is being assisted by Joe Kelly, Third precinct committeeman. y. mTcTa. program" on STATE FAIR SCHEDULE Demonstrations to Be Given Hourly, Is Announcement. Swimming, wrestling, acrobatics and music by the Young People'3 orchestra will be included in the Y. M. C. A. program which will dq presented in the Manufacturers’ building at state fair this afternoon and tonight. Demonstrations will be given hourly in health, character building, social and educational activities of the Y. M. C. A. Leslie Troutman will conduct the orchestra. British Leader Dead By United Press DUNKELD. Scotland, Sept. 5. —. Lord Devonport, 78, who was wartime food controller in England in 1916-17. died today at his estate.

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