Indianapolis Times, Volume 46, Number 105, Indianapolis, Marion County, 11 September 1934 — Page 3

SEPT. 11, 1934_

GUARDS REAPED RICHES SELLING TO PRISONERS Cigaret Papers. Liquor and Street Walker Sold, Is Charge. (rontlnoni From Page One) Times that he had nearly SIOO In his possession while in prison which was river, him by friends although It was expressly a violation of prison rules. Dice games on top of cell-blocks, and m secluded corners of the institution In which guards part icipa'ed were not uncommon. The Times was told. Huge Still Found Stones that a guard brought a street walker in the prison, selling her services to Inmates, were related. Discovery of a fifteen-twenty-gal-lon still In an abandoned elevator shaft m the prison Aug. 1 caused ironic laughter throughout Indiana. But Times informants point out that this Is trifling compared to other derelictions of duty on the part of incompetent and unscrupulous guards. These are but a few of the examples of inefficiency related to this writer during his investigation of conditions in Indiana penal institutions that could be erased through centralized control and the selection of officials and guards on a basis of their competency, experience and training rather than upon qualifications of political faith. One Times informant, a former trusty of the institution, declared he frequently made trips into the business section of Michigan City where he ate meals and kept 'datw.” Easy to Smuggle He said it was his custom to bring back underwear, socks and I other articles to the prisoners. Many a time." he stated, “I walked in with four or five suits of underclothes on me and some of the guards would do the same and then I sell the articles to the prisoners. •Why, I could have brought a: machine-gun into that prison without much troublp.” the former convict declared. “Its easy when you know the rop~\ The guard- -* the gate only frisked' 'searched) trusties with a couple of quick touches on the sides. "I could have stuck a. machine gun down my back inside my coat and I'm sure no one ever would have discovered it. That's way the old gwards sometimes brought liquor into the prison. Tied the neck of the bottle around their shoulders and earned it in.” Perfects Rouge Checks Former inmates and convicts estimated that there were several hundred perverts among the prisoners. They told of a group who always were at ball games in the prison yards with rouged cheeks and smelling of cheap perfume. Deputy Warden Schumhl admitted the presence of degenerates in the prison, but declared that no large institution was free from this type of prisoner. He told of seizing a j quantity of powder, compacts, rouge i and perfume from such a group. j “When we find them we attempt j to suppress them,” declared the ; deputy warden, wearily shaking his head. A parole selling racket is alleged to exist in the prison, but the reporter could find no evidence to substantiate it. Wayne Coy. state] official, denies the existence of any racket in paroles. Coy Defends Board “The present parole board and the clemency board in the state has not taken a dime, I am convinced," j said Mr. Coy. "I know of one case under the old order where $2,500 was paid to j obtain parole for a prisoner in the i state prison, but those days are past.! I have been approached only once since I have been associated with state prison work, and that was several months ago when a petty chiseler attempted to offer me SSO to aid in obtaining a parole. Need- j less to say I laughed at him.” * Civil service Is the only answer' to real reform in the prison.” a I former convict who has "made good ' ! since his release several years ago told The Times. “Until the per- ; sonnel of the prison guards is put on a merit system, where honesty and experience and intelligence determine whether a guard keeps his job. mcompetency and worse among guards will exist. "Right now.” he said, “about 50 per cent of the guards are of the old order and the rest recent po- * litical appointees who are green and therefore incompetent." This concludes Basil Gallagher's series of articles on conditions inside the walls of Michigan City prison. BLIND SCHOOL EMPLOYE FOUND BEATEN. ROBBED Victim Rushed to Hosiptal With Severe Head Injuries. Authorities today were attempting to interpret the dazed mumblings of Carl Ax. an employe of the Indiana School for the Blind, in an effort to learn the identity of the person or persons who struck and robbed him yesterday. Mr. Ax was found in an automobile on West Washington street outside the city limits late yesterday suffering from head injuries and covered with blood. Taken to Methodist hospital he kept repeating, ••Senate and Ohio and Clermont.” From school authorities, deputy sheriffs learned that Mr. Ax had left the school in the morning with $76 which he intended to put in the bank. U. S. JOBS ARE OPEN Examinations Soon to Be Held. Boatman Announces. Seieral federal job openings were announced today by Frank J. Boatman. civil service board secretary, with office* at 421 Federal building. Examinations will be held soon for extension agriculturists for county agent. 4-H club and extension research work and for asctate chemist for duty in the bureau of entomology and plant quarantine.

Installment Number One

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—Photo by Ted A. Green, Indianapolis Camera Club. Indianapolis moves ahead . . . Strong, steel teeth of gears mesh ivith those of other gears ... Machinery moves ... Factories hum with it and with the voices of workers ... Here, in the plant of the Metal Auto Parts Company, U2B West Henry street, where Cameraman Green is superintendent, beauty is found in the source of 'power ... as it was in the searing flame of a welder’s torch in the same factory, shown in yesterday’s Indianapolis Times . . . These pictures are presented by The Times in conjunction with its presentation of Major L. L. B. Angas’ “Coming American Boom” The Times regrets having credited yesterday’s picture erroneously to the American Bearing Corporation.

(Continued From Page One) upswing in prices and also in industry. u it u MEANWHILE the three phases of the new monetary attack on depression are: 1. Threats of inflation. 2. Bank credit inflation and cheap money. 3. The inflationary printing of notes. Phase 3,1 think, will not be necessary. < Immediately after Mr. Roosevelt’s inauguration speech in March, 1933,

A Reader’s Glossary for Angas’ ‘American Boom’

Cash Reserves —Sums of money in possession of banks withheld from investment in order to meet regular or emergency demands. Deflation—The contraction of currency or credit, or both. The result is a decrease in prices—more goods for a specified unit of money.

Demand-deposit—A checking account, money which may be withdrawn on demand. Gold content Amount of gold backing for a specified unit of currency. Inflation, credit Abnormal amount of credit available through increase of bank deposits or cash reserves resulting from loans to banks either by other banks or government, or through purchase by other banks or government of securities held by banks. Inflation, money—Abnormal issue of currency not backed by bullion, or increased issue through decrease of bullion backing of unit of currency. Interest Payment on a percentage basis for use of money. The rate rises when money is scarce or holders are hoarding; it falls when monev becomes more plentiful and holders regain confidence in lending. Pyramid of credit—The so-called credit pyramid is an inverted pyramid. Its narrow base is the gold supply which can be expanded many times. This in turn may be used to build up reserve bank credit, and for every dollar of the latter actual credit use can be expanded at least ten times. Redundancy of currency—Denotes excess money beyond normal needs —idle money which must seek employment to make profit, thus making credit available, hence contributing to spending and creation of business activity. Reflation A comparatively new word, coined to express act of controlled expansion of currency or credit to restore prices after deflation has decreased them. SIO,OOO ACTION FILED Father Brings Suit Against Motorist in Death of Youth. Damages of SIO,OOO are sought by Paul Yemck. father of James Yerrick, 18. fatally injured Aug. 1 when struck by an auto on U. S. Road 40 near South Bend. Lawrence Gross, driver of a car which is said to have struck the youth as he started to walk across the highway after alighting from a car driven by Dale Lord, is named defendant.

“The Coming American Boom”

I argued that since there existed in America at the time of the March panic just as much gold and facilities for creating bank credit as in the 1929 boom, when prices and trade were nearly 100 per cent higher, Mr. Roosevelt’s threat of inflation would probably, without any inflation itself, cause a revival in trade and prices, and a boomlet in the stock market. The Dow Jones share index, in fact, rose from 58 to 110, i. e., 90 per cent, by the end of July. From July, 1933, however, until December, there was a sharp reaction in both production and share prices; a recovery occurred until the

CITY CONTROLLER OF LA PORTE QUITS POST Official's Resignation Requested as Audit Starts. By United Prexts LA PORTE, Ind., Sept. 11.—With state examiners auditing his books in search of discrepancies, City Controller William F. Krueger resigned yesterday. Elmer H. Wilhelm, school board member and former councilman, was named by Mayor A. J. Miller to fill the vacancy. Krueger's resignation was requested by Mayor Miller after he learned the state board of accounts had ordered an audit of the city books. Krueger's accounts are alleged to be short between $4,000 and SB,OOO, the majority if which is said to be payments on Barrett law assessments. In the Air Weather conditions at 9 a. m.: Southwest windfc 12 miles an hour: barometric pressure, 30.08 at sea level; temperatur, 72; general conditions, high. thin, overcast, lower scattered clouds; ceiling, unlimited; visibility, ten miles.

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THE INDIANAPOLIS TIMES

end of March; and since then a new' reaction has occurred. This has set public confidence on edge and another new slump is now widely expected. Many think that Roosevelt has failed, and the optimism of a year ago has completely evaporated. u n AND if people only knew it, the economic forces favoring and fostering economic recovery are stronger and more powerful than ever. Indeed the curious thing is that, although most people, think that his monetary plan already has been tried out and failed, and that he has now exhausted every monetary ruse at his disposal, the fact is that until the beginning of 1934, although there was much talk about inflation, the total quantity of notes and bank deposits was not inflated at all. All the previous results of 1933 were obtained, dare we say, by cunning psychological ballyhoo. Since January, 1934, however, the actual inflation of bank deposits has begun; and this gradual warming up of the credit machine certainly will soon bring trade, prices and shares to higher levels in America. To understand Roosevelt, however, it is necessary to know something of the theory of money and the business cycle, for it is on a theory of money that his plan is really based. In England, trade revival was brought about by the creation of the following economic conditions:— 1. Exchange devaluation (—4O per cent). 2. Inflation of bank deposits ( + 18 per cent). 3. The creation of cheap long-term money per cent as against 5 per cent). All these factors recreated confidence, and trade very soon began to revive. u u tt IN America, Roosevelt i.- producing exactly similar conditions, although his technique in producing them has been somewhat different; and if they succeeded in England,

Why Some Men Succeed

What a difference there is in men! Some of them are full of pep, energy, ability. They think straight and they think fast. They get there ahead of the other fellow. What’s the difference? Usually a man eats success or failure at thebreakf ast table. Often he makes or loses a contract according to what he eats for lunch. Wise eating is the smartest thing a business man can do. At least one meal a day, especially in this warm

SHRHDop)

where the cotton trade and shipping are dying out, and where prosperity depends as to 30 per cent on foreign trade, how much more easily will they succeed in America, with her unbounded resources, her masses of gold, her lack of dependence on foreign trade (only 10 per cent), and her population of 125 millions which can trade with each other without the impediment of tariffs. At the moment of writing, however, July, 1934, the American position is frightening most of her well-wishers. Some trades have reacted more than the normal seasonal amount since the spring peak; government debt is rapidly increasing; the budget is unbalanced; the wheat crop has failed; employers complain of the confusion caused by codes and of their higher costs brought about by shorter hours. Workers complain of rising retail prices; and stockbrokers are dismayed by the policy of control. The securities act is preventing revival in the capital industries; and many observers are beginning to think that the New Deal already has failed. They jeer at the failure of the President’s inflation, and there are even whisperings of new panic and collapse. The public are stunned and completely perplexed. Indeed, a kind of paralysis is creeping into the minds of economic, financial and industrial circles. It ought, however to be possible for the economist when surface indications are confusing, to look right through the surface of things and X-ray the major economic currents below. Let us attempt this and try to see precisely what Roosevelt is aiming at and what his various act ons will lead to. Some persons, it is true, say Mr. Roosevelt has no plan, but that he merely takes the haphazard advice of the last person he happens to meet. This, however, would appear a wrong view\ His series of actions as a whole seem inter-related and sound, although of course there are bound to be jolts inseparably from a policy of relief, recovery and reform.

•weather, eat Shredded Wheat, milk, and fruit. If you didn’t have any other food you could live on this combination, and be mighty well on it, too. It gives your body all it needs for energy, tissue building, and disease resistance, and it gives you bran to keep you regular. The right food has a great deal to do with your success. Try Shredded Wheat for one meal a day, and see what happens!

Tomorrow—Why Roosevelt's recovery program svas based on monetary problems and administration directed energies toward

What a break! For all Indianapolis! mL it rained lastthursday Thousands did not get to share in the THRILLER values therefore we will I yv again present them THURSDAY, SEPT. 13TH.

THURSDAY-THURSDAY-THURSDAY SLii&Tt&L Harvest Thriller Day S-A-L-E A Great One-Day Event of Super Values -Tell Your Friends! -Tell Your Wife! \p W - j] -Tell Your Neighbor! -Tell Your Relatives! - -COME Yourself! | SEE TOMORROW'S TIMES | for the BARGAINS Store Open Thursday Night Until 9 o’Clock K^^SQLbtal^iZij^CCuLftkSZSl - Alabama at Varmont Streets * 1

By MAJOR LAWRENCE L. B. ANGAS

restoring confidence and raising prices of goods. (Copyright, 1934, by Simon and Schuster, Inc.; distributed by United Feature Syndicate, Inc.)

PAGE 3

U. S. IS DOOMED! ‘LI'L ARTHUR' IS THE LAST HOPE He Admits It Himself at G. 0. P. Meeting in Irvington. (Continued From Page One) proceeded to take apart the administration of Governor Paul V. McNutt. Calls Him "Emperor Paul" Branding the Governor “Emperor Paul,” Senator Robinson spoke of what he said are the Governor’s presidential ambitions. "Down in Washington.” said the senator, "it is an open secret that the President doesn't like the Governor of Indiana very much, because Paul tried to get the nomination at Chicago and the President and his advisers think he is after the presidential nomination in 1936, Roosevelt or no Roosevelt.” The remarks of the senator, as well as those of State Chairman Don B. Irwin and Gavin L. Payne forecast a sharp legislative fight on any administration attempt to enact a state NRA statute. Laughter followed the senator’s reference to breaks and walkaways from the state prison at Michigan city. "It's getting so prisoners walk away at short notice or with no notice at all,” the senator said. Lashes 2 Per Cent Club He attributed all of the state administration's prison difficulties to what he termed playing politics with prison patronage and applying the spoils system without- judgment to the guard and official jobs there. Lashing the “2 Per Cent Club,” the statehouse organization that raises campaign funds among state workers, the senator said the sum in the treasurer now r amounts to "hundreds of thousands of dollars.” "Perhaps the most widely known —certainly the most notoriousclub in the state is the "2 Per Cent Club,” he said. Funds squeezed out of the pay of employes in public service estimated to aggregate hundreds of thousands of dollars have been collected and placed in the hands of administration henchmen. "Os course, this fund will be used in one of two w r ays: It will either be divided among a few insiders in the court of the emperor or it will be used to control elections. In either case the effect is vicious, indefensible and demoralizing.” Bold for Enforcement Senator Robinson did not refer by name to Sherman Minton, his Democratic opponent, but he declared “Governor McNutt and his clique of henchmen have captured the Democratic party and literally thrown it out the window.” “After ditching the orthodox Democratic party, the McNutt clique established its own machine in the house of democracy,” the senator said. “Os course, a vote for the Governor's hand-picked state ticket is a vote to strengthen and perpetuate the McNutt political machine." City, state and county Republican candidates were introduced and Walter Pritchard, Republican nominee for mayor, spoke. The candidate of “Boss” Coffin came out boldly for law enforcement.