Indianapolis Times, Volume 46, Number 158, Indianapolis, Marion County, 12 November 1934 — Page 1

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Life The Unknown Soldier Sleeps, but World Still Moves On.

By Unit'd Prrst lONDON. Nov. 12 —Workers In the Vickprs works at Crayford observed two minutes of silence yesterday In commemoration of Armistice day. Then they returned to their benches, turning out machine guns, rifles, and poisonous gas projectors. m m m Wine? It’s Fine Hti nit'd Prrst N t EW YORK. Nov. 12— Mrs. Prankhn D. Roosevelt is quite right in serving wine in the White House, the Rt. Rev. Arthur W. Brooks, Episcopal bishop, said today. in making public a letter he had written the First Lady defending her decision. "Our blessed Lord not only dined at tables where wine was served, but he turned water into wine," he said. m m m A Fan jo Symphony Hi I nitrd Pm Philadelphia, nov. 12—William L. Dawson. Negro, former bootblack, is composer of the first ' Negro symphony and the only svmphony ever written by a Negro. It is railed "Negro Folk Symphony No. 1" and will be performed for the first time Friday night by the Philadelphia symphony orchestra. Dawson will be the honored guest of Leopold Stokowski, conductor. He is a musical director of Tuskegee Institute. He was born "with a banjo in my hand." B B B The Great eat ‘Racket’ ■ I wi tut Prrst NEW YORK. Nov. 12.—The church and the svnagog are partly to blame for war. General J Smedjev D. Butler, former marine corps officer, told the congregation B Nai Jeshurun. "The churches pepped tip the boys in 1917.” he declared. "The next time the people who believe in God can not preach that war is a holy crusade. It is not. It's the greatest curse of the civilized j world, the greatest international j racket. . . . A Wreath for the Heroes I! f I nitt it Prtnn WASHINGTON. Nov. 12—The nation’s observance of Armistice day was led by President Roosevelt who. with head bared, laid a simple wreath at the tomb of the Unkown Soldier at Arlington cemetery. The President motored to the cemetery with Mrs. Roosevelt. Later at the tomb. National Commander Frank N. Belgrano Jr. of the American Legion spoke at the shrine. He pledged the legion to fight against all "isms” except Americanism and urged that the nation's war forces be built to full strength as insurance against another war such as took the life of Unknown Soldier. BUB The ‘Whaling Wall ’ /if t Hitt it Prrst WASHINGTON. No 7. 12—The famous old cry of "thar she blows" that once echoed from the lookouts of a thousand whalers flying the Stars and stripes is piped today on a scant fourteen ships, according to the commerce department. The fourteen craft include but one sailing vessel that clings to the tradition that once sent American vouth daring the dangerous seas of the world from Arctic to Antarctic. Not one of the famous old New England whaling ports is represented on the registry. Every boat of the fading industry hails from the Pacific coast. B B B You Dead There? By l nitrd Prrst lERSEY CITY. N. J.. Nov. 12 An automobile screeched to a halt in the middle of the street. Traffic jammed behind it. A gruff policeman bellowed at the driver: "What's the matter—you dead there?” He was. Joseph Parker, 51, had died of heart disease. Although dying, he had clamped on the brakes of his car. Mrs. Harry Mulry and her daughter Margaret were passengers. B B B Hunt Sakcd ‘Wild Man’ By United Prtts Gold beach, ore.. Nov. 12 Alert officers and skilled w oodsmen moved through the Curry county widerness of southern Oregon, fifty miles from a highway or railroad, today searching for a "wild man.” They hunted Hugo Mover, eccentric, skin-clad hermit, to question him about the slaying from ambush of Robert Fantz. cattle rancher of the back county. m m m Tragedy of Childhood By United Prtti DENVER. Colo . Nov. 12 —Search for a pet rabbit late Saturday claimed the life of one child, and another lay in the Denver general hospital cear death today from eating a quantity of poisoned candy they, with seven other children found in barrels in a junkjvxi near their homes. Ham Flnkelstein barrel dealer, told police he had coated the surface of the syrup with arsenic to kill rata which infested the barrels. He w* lodged in jail pending investigation of tho poisoning. Your motor checked, carburetor adjusted. See Carburetor Sales, 214 E. Ohio.— Adv.

The Indianapolis Times . Fair tonight and tomorrow; rising temperature: lowest tonight about 37.

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VOLUME 46—NUMBER 158

TRIED TO SAVE i INSULL, EATON ; SAYS IN TRIAL Cleveland Capitalist Bares Details of ‘Battle of Millions/ URGED UTILITY MERGER Combine Would Have Aided Fallen Leader, Is Claim. ; By L nitrd Prtti CHICAGO. Nov. 12—Cyrus S. Eaton. Cleveland capntalist whose battle of the millions” with Samuel Insull was a sensation of the finani cial world four years ago, revealed ; in federal court today that he suggested a merger to Insull which might have saved the latter's utility empire from collapse. Mr. Eaton, whose appearance as a witness for the defense in the Instill trial was a surprise to government prosecutors, told for the first time his version of the $56,000,000 battle during the dying days of the Insull companies. It was a $56,000,000 debt thrust upon Insull s Corporation Securities ! Company and Insull Utilities Investments in the regaining of the Eaton stock that helped bring about the Insull collapse in June, 1932. Mr. Eaton appeared primarily as a character witness for Harold L. Stuart, investment banker and confidante of the 75-year-old Insull. His testimony, however, centered I around his disclosures of what has been known as the "Eaton raid” on Insull's holdings. Denies Control Plot He denied that in 1929, when he and his associates held 151,506 shares of Insull operating company stocks, he was attempting to seize control of the companies. "We bought up these holdings only as a sound utility security for our investors,” he said. "In May, 1930, I came to Chicago and had a conference with Mr. Insull. his son and his brother, Martin,” Mr. Eaton said in a low voice, - barely audible to spectators. Insull, although assured by Mr. Eaton that no efforts were under- ! way to seize control of the operating | companies, remained suspicious. "I told him that our investors in Continental Shares, Inc., an investment company, were interested in a concentration of our utility holdings.” he continued. Insull Offered Leadership “I told him that we already had interests in the United Light and Power Company with its subsidiaries, the American Power, Light and Traction Company and the Continental Gas and Electric Company. "The holdings were national in character, extending to Detroit, Milwaukee. Columbus and Lincoln, | Neb. “I asked Mr. Insull if he would consider joining in a merger and heading it himself. It was the opportune time for a concentration of Middle West Utilities. I said. "But Mr. Jnsull said he felt his age would not allow him to take on the extra burden. He said that if our main object was to acquire cash he would gladly buy our holdings in his three companies, the Commonwealth - Edison, People's Light. Gas and Coke and Public Service of Illinois.” Insull offered $350 a share for the 151.566 shares held by Eaton, but the Cleveland capitalist held out for S4OO. "I told him we weren't anxious to sell, so the deal wasn't closed then,” Eaton said. Financial Aid Available Under questioning by Floyd E. Thompson, attorney for Insull, Eaton said that he assured Insull during their conferences that if a merger was effected there would be no difficulty in obtaining financial backing to retire the shortterm debts of both units. Eaton said that he began accumulating Ihsull stocks in 1926. During the Insull-Eaton battle there were reports that Morgan bankers were aligned with the Cleveland financier in the effort to wrest control of the middle-western utilities from Insull. Eaton, however, made only one mention of the Morgan interests in his testimony. He said the eastern capitalists were "large buyers of Eaton securities.”

Beginning * Today! A series of six interesting and illuminating articles explaining ic detail the New Deal's greatest experiment. . . TENNESSEE VALLEYWritten by John T. who has watched every phase of this vast undertaking since its beginning. In his six articles. Mr. Moutoux gives you a complete analysis of this colossal program which affects the lives of 2,000.000 people in seven states and involves an expenditure of hundreds of millions of dollars. Read these articles for a thorough understanding of just what the New Deal is trying to accomplish through its TV A program. The first of the series appears in . . . Today’s Times

TELLS OF MONEY WAR

Jag - ” / JfS&r

Cyrus Eaton ... a Savior?

IT WAS SNOW, BUTin GONE Fair Weather and Rising Temperature Forecast for Indianapolis. Fair weather and rising temperature is the cheery prophecy of J. H. Armington, local meteorologist, for Indianapolis tomorrow, and all who scurried home to the fireside through the season's first faint snowfoll yesterday may venture forth without fear of falling into a snowdrift for a few days more, at least. The snow which fell on Indianapolis yesterday, while it served to remind citizens that winter is on the way, was not of sufficient duration or magnitude to cause any alarm or send the children into cellars to search for sleds put away since last winter. Reports from Ft. Wayne and Chicago showed that snowfall there yesterday was light also. Terre Haute residents were granted no glimpse of snow at all.

TODAY’S WEATHER

Hourly Temperatures 6a. m 28 10 a. m 34 7a. m 28 11 a. m 36 Ba. m 30 12 (noon) .. 37 9 a. m 33 1 p. m 40 Tomorrow’s sunrise, 6:28 a. m.; sunset, 4:31 p. m. In the Air Weather conditions at 9 a. m.: Northwest wind, twelve miles an hour; barometric pressure, at sea level; temperature, 33; general conditions, clear; ceiling, unlimited; visibility, twelve miles. 100 STRIKERS NOT YET HIRED, IS CLAIM Bleaching Cos. Accused of Disregarding Ruling. More than 100 Indianapolis Bleaching Company employes who took part in the recent national textile strike have not yet been rehired. Charles P. Drake, business agent of Local No. 2069, United Textile Workers of America, asserted today. Mr. Drake’s declaration followed receipt of word from the recently created textile labor relations board which, he said, stated that the board expected the textile manufacturers to re-employ those who were in the mills before the strike without further delay and without discrimination. Mr. Drake said that he had showed the board's statement to Charles A. Young. Bleaching Company manager, who. he said, declared that the strikers had received "as much as they were going to get.” Mr. Drake said that Mr. Young did not interpret the board’s announcement as an order and that he apparently planned to take no action on the board's recommendations. Nazi Battleship Put in Service By United Press WILHELMSHAVEN. Germany, Nov. 12.—Germany's second "pocket battleship,” the speedy, formidable, 10.000-ton cruiser Admiral Scheer. was put ii)to commission today.

Indiana Vote Analysis Reveals Heavy Inroads Made Into Democratic Strength at Polls by Republicans

BY JAMES DOSS Times Staff Writer The G. O. P. elephant, battered and bruised by last Tuesday's "pushing around,” can extract some solace by an analysis of the state’s senatorial vote. A scrutiny of the returns, county by county, affords some interesting conjectures, if the contemplation of figures ever is interesting. There ir.ny be some commentators who can make figures jump through hoops and do other whimsical tricks, but

INDIANAPOLIS, MONDAY, NOVEMBER 12, 1934

EXTRADITION OF MASON TO CITYASSURED Papers Are Signed by Laffoon, Kentucky Governor, at Frankfort. HOODLUM'S PAL DEAD Local Officers Start for Covington to Take Custody of Suspect. Extradition papers authorizing the return here of William H. (Willie) Mason, 32-year-old Indianapolis and Kentucky hoodlum charged with the submachine gun murder of Police Sergeant Lester Jones, were signed today by Governor Ruby Laffoon at Frankfot, Ky. The papers were handed to Detective Sergeants Fay Davis and Orville Quinnette of the Indianapolis police department, and State Policeman Russell Coons, who made the trip from here to Kentucky with the city officers. They started at once for Covington to rush Mason's return here. The crippled Mason, safeblower and jailbreaker extraordinary, now is in the custody of Police Chief John Putthoff, Covington, Ky., who had indicated earlier in the day that he would be glad to give Mason over to Indianapolis officers as soon as Governor Laffoon signed the necessary papers. Yesterday, there had been reports that Covington police might wish to hold Mason for possible trial in connection with Kentucky crimes of which he is accused. Dies at Covington Mason, who fled the Hamilton county jail, Noblesville, Aug. 22, was captured Saturday on a farm near Black Rock, Ky., by Covington and Carrollton county (Ky.) law enforcement officers, who shot and wounded fatally Walter Davis, a companion of Mason. Davis, convict and jailbreaker, died yesterday in a Covington hospital. He was shot, police say, when he reached for a bottle of nitroglycerin, apparently intending to use it in a desperate effort to anihilate his captors and himself. Hamilton county authorities had phoned asking Chief Putthoff to hold Mason for them, but neither Sheriff Frank Hattery nor any representative of his office had visited Covington. Mason was in Sheriff Hattery’s custody when he escaped. Contest Now Impossible Issuance of the papers to the Indianapolis officers, however, ended any chance of a struggle between Sheriff Hattery’s office and the local police. Detective Chief Fred Simon said here that he felt Mason would be "safer” in the Marion county jail here than at Noblesville and expressed himself as deeply gratified over Governor Laffoon's action. Mason apparently has refused to discuss his plight with Covington officials, who reported him as in an apparently depressed mood after his capture. The underworld source which provided police here with the "tip,’* which resulted in the Kentucky officers’ raid of Saturday had quoted Mason as swearing that he never would be taken alive. Sergeant Jones was shot down Feb. 7, 1933, when he and his squad surprised a group of bandits robbing the barn office of the Peoples Motor Coach Company here. Mason, said by the county prosecutor’s office to have been implicated by witnesses, was captured shortly afterward near Erlanger, Ky. Won Change of Venue At that time, he was suffering from a foot wound which, police here said, was received when he was attempting a Kentucky holdup. His foot was amputated. Later, he won a change of venue to Hamilton county. A jury there disagreed on the question of his guilt or innocence and he was awaiting retrail when he escaped last August. Os the group accused with Mason of the Jones murder, all except one now are in state prison after having entered guilty pleas to varying charges in connection with the crime. The one defendant still awaiting trial is Edward (Foggy) Dean, over whose guilt or innocence a Marion county jury disagreed this summer. Times Index Bridge 7 Broun 5 Business News 9 Comics 13 Crossword Puzzle 13 Curious World 13 Editorial 4 Financial 6 Hickman—Theaters 7 Pegler 5 Radio 9 Sports 10. 11 Woman's Pages 6, 7

this observer woefully confesses this shortcoming. However, there is one conclusion that sticks out like a second chin on a movie star and that is that there was a distinctly rural trend toward the Republican party in the senate voting. For example, the Republican party showed gains in sixty-seven counties and fifty-seven of them are of a distinctly rural makeup. Although there are good-sized towns and . small cities in them, the chief

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Hindu No Kin Do

*Wire-y’ Amateur Magician's Attempt to Duplicate Rope Trick Spoiled by Electricians: Hopes of Winning $25,000 Put in Spot. v

Hi! United Prest ST. PAUL, Nov. 12.—Until stage hands learn the difference between red lights and white lights, Robert Heger, amateur magician, is going to forego an attempt to claim a $25,000 prize for duplicating the magic rope trick of India. Magician Heger announced last week that after twenty years of experimentation, he had perfected the trick which professional magicians proclaimed impossible and for which a London society had offered $25,000. He hired one of St, Paul's largest halls for his first public demonstration and announced that he would go to London immediately after the performance. But the trick worked like this: Across the stage glided two sinister Hindus, followed by a small boy clad only in a breech-cloth. A jungle chant and dim lights created atmosphere. One end of a thirty-foot rope, coiled on the stage floor, rose without apparent aid into the \ir.

But an electrician got his light filters mixed and, where stage directions called for red and blue floods the switch was pulled on a powerful white spot. The audience giggled as a wire gleamed plainly from the rope end to the drops above. BUB WIGGLING slightly as a nervous stage hand pulled the wire, the rope reached its length and stood rigid. The Hindu boy climbed it. In the old Indian trick, according to those who claim to have seen it performed by native fakirs, the boy vanished into thin air. Magician Heger's boy didn’t. A "sky” drop fell too late and the audience saw him swing at the end of another rope behind a curtain. The most sinister Hindu man followed the vanished boy up the rope. At the top he slashed viciously through the air with a long knife. Screams filled the auditorium. An arm, a leg, a head fell to a cape held below by the second Hindu. Blood dripped to the floor. But the audience giggled again, because the relentless spotlight showed the false color of wax and penetrated thoroughly behind the gauze curtain whence the legs and arms were thrown. Magician Heger took charge of the magic cape, chanted a bit and threw open the garment to reveal the boy, unharmed and smiling. But the curtain fell too late to hide an extra arm which fell from Heger’s cloak. MOONEY PROMISED HIGH COURT RULING Consideration of Case Now Seems Assured. By United Press WASHINGTON, Nov. 12.—Thomas J. Mooney today was promised consideration of the supreme court in his fight for freedom from San Quentin penitentiary where he has been imprisoned since 1916 after being found guilty of murder in connection with the Preparedness day massacre. The court acted on a plea of attorneys representing the labor leader to be allowed to file a petition for a writ of habeas corpus. The court, while not granting this plea outright, directed the warden of San Quentin through his legal representatives to show cause within forty days why Mooney’s lawyers should not be allowed to file the writ. ARMAMENT RACE IS SCORED BY SPEAKER Excessive Nationalism Will Lead to War, He Warns. "Excessive nationalism in both its economic and political, forms will lead to the field of blood,” stated Linley V. Gordon in an address on world peace delivered at the First Methodist Episcopal church yesterday. Mr. Gordon is the extension secretary of the World Alliance for Friendship Through Churches. In recounting the armament policies of the nations during the last few months, Mr. Gordon said that it was the supposedly “Christian” countries, the United States, Great Britain and France, which were leading the field in an attempt to "prepare for peace.” Federation Meeting Delayed Meeting of the Northside Federation of Clubs, scheduled for the second Tuesday of each month at the Marott, has been postponed until Nov. 20 it was announced today.

Do You Own a Dog? Then Here’s the Very Thing for You and Your Family

Within the last few years, interest in dogs has increased. In the last year there has been an increase of 30 per cent in sporting breeds. Tomorrow The Indianape iis Times will present the first of i series of daily dog chats by one c l tue fore-

subsistence of their inhabitants is from the soil and they safely can be classified as rural. Against this rather impressive array of gains, the Democratic party showed vote losses in every one of the state’s ninety-two counties, save seven. Curiously enough, one of these seven was Henry county, strongly Republican, where the Democrats picked up forty-three votes against the total in the 1932 senate election

FRENCH MOBS RIOT IN STREETS Left Wingers Battle With Rightists in Various Parts of Nation. By United Press PARIS, Nov. 12.—Premier Pierre Etienne Flandin prepared today to face the chamber of deputies with his new cabinet tomorrow, after an unhappy Armistice day augury for internal peace. There were riots here, at Lille and at Narbonne yesterday in which Socialists, Communists and rightwing extremists fought each other and police with sticks, stones and bottles. The most serious rioting was at Lille, where 20.000 Socialists and Communists fought right-wing partisans. The Socialists and the Communists, with whom they now co-ope-rate,, smashed windows with bottles and invaded a case in which war veterans were gathered. Two policemen were injured seribusly before the mob was dispersed. At Narbonne there was rioting before the monument to men killed In the war when the Socialists and Communists fought veterans. BRITISH ARMY MEN TO JOIN SAAR POLICE FORCE Officers Being Recruited for Duty, MacDonald Admits. By United Press LONDON, Nov. 12.—Former British army officers are being recruited to reinforce police in the Saar pending the coming plebiscite, Prime Minister J. Ramsay MacDonald admitted in the house of commons today. In reply to a question by George Lansbury, Labor leader, MacDonald said the government had received various applications from ex-officers. BANKERS' HEAD TO SPEAK AT PARLEY Garrett to Be Scene of Regional Session. By United Press GARRETT, Ind., Nov. 12.—Reduction of interest rates, introduction of measured service charges for checking accounts and other factors leading toward more sound banking principles will be discussed here Wednesday at the twenty-fifth annual meeting of Region 1 of the Indiana Bankers’ Association. Speakers will include Nicholas H. Noyes, Indianapolis, a director of the Federal Reserve Bank of Chicago; M. J. Kreisle, Tell City, president of the Indiana Bankers Association;. J. Leo Johnson, Washington, representative of the Federal Deposit Insurance Corporation; Al Feeney, Indiana director of public safety, and Robert H. Meyers, Muncie, chairman of the Bankers’ NRA and bank accounting and revenue committee of the state association. Gem Thieves Loot Gould Villa By United Press PARIS, Nov. 12. Frank Jay Goulds villa at Maison La Fitte was robbed of 20.000 francs ($1,319) worth of jewels, police reported today.

1 1 most experts in the nation. The aut j thor is Leon F. Whitney, director of f the Whitney Laboratory of Canine Research. 5 1 Mr. Whitney will tell you how to f train your dog and will discuss -1 many phases of a dog’s life that

when Frederick Van Nuys defeated the veteran, James E. Watson. The Republican gains in the fiftyseven rural counties amount to slightly more than 35,000 votes, against which the Democrats can offer only 7.093. What relation these rural gains for the Republicans bears to the national administration's corn-hog reduction program is debatable. However, the figures are there and (Turn to Page Three)

Entered a* Second-Class Matter at Postoffice. Indianapolis. Ind.

BANK SYSTEM SHAKEUP NEXT STEP, IS BELIEF Appointment of Marriner Eccles as Federal Reserve Chief Seen by Observers as First Wedge in Far-Reaching Campaign. UTAH MAN IS ARDENT NEW DEALER Firm for Unification of Whole System and for Control of Accumulation of Capital by High Federal Taxation. BY LYLE C. WILSON United Press Staff Correspondent (CoDvrieht. 1934. bv United Press! WASHINGTON, Nov. 12.—Events of the last three weeks indicate significant administration plans for the American banking system. President Roosevelt and the big eastern banks agreed to an armistice at the American Bankers Association convention three weeks ago. The present is a period of more or less co-operation between financial centers and the White House. The next revealing banking development came over the week-end when Mr. Roosevelt named Marriner S. Eccles of Utah to be governor of the federal reserve board. Mr.

S2OO TAKEN BY SAFECRACKERS Yeggs Batter Strong Box in Laundry Office, Obtain Cash. Yeggs who battered open a safe in the Paul H. Krauss laundry, 37 North East street, yesterday stole about S2OO in cash, laundry officials announced today. The robbery was discovered by Vernie Combs, 43, of 6500 East Thirty-fourth street, a foreman, when he ivent to work yesterday. A small amount of money and articles valued at S3O were stolen from the safe of the TarnenningLafollette Company, 1030 Canal street, Saturday night by thieves who entered through a rear window, according to police. UPTON SINCLAIR NOT ANGRY AT ROOSEVELT ‘He Was Too Busy to Indorse Me,’ Epic Leader Says. By United Press LOS ANGELES, Nov. 12.—Upton Sinclair harbors no ill will against President Roosevelt for deserting him in his unsuccessful campaign for Governor, the "EPIC” leader said today in a copyrighted interview appearing in the Illustrated Daily News. "Os course, I would have liked to have had the Presidents open indorsement, but he had more important things on his hands,” Sinclair said. "He left the Republican reactionaries high and dry. That was more important than indorsing me for Governor of California.” NRA AUTO TRADE-IN CODE HELD ILLEGAL Federal Judge Declares Provision Is Unconstitutional. By United Press OKLAHOMA . CITY, Nov. 12. Federal Judge Edgar S. Vaught today declared unconstitutional the government's attempt to regulate, by NRA code, the prices the retail automobile industry shall pay on traded-in used cars. Belgian Cabinet May Quit By United Press BRUSSELS, Nov. 12.—Resignation of the cabinet of Premier Count de Broqueville was understood to be imminent today. There long has been a dispute in the cabinet over i budgetary matters.

will interest you even though you don’t have a canine in your home. Mr. Whitney calls his series "A Dog’s Life” and he leaves nothing to your imagination. In addition, Mr. Whitney conducts a question and answer service, giving you, in detail, answers to any of your questions on the care of dogs. All you have to do to obtain this service is to write Mr. Whitney through The Times, inclosing a 3-cent, stamped and addressed envelope for the reply. Watch for the first article in this interesting series tomorrow. “A Dog’s Life” will prove valuable to you. TAX ADVISER QUITS Dr. Roswell Magill's Resignation Is Accepted by Morgenthau. By i nitrd Press WASHINGTON. Nov. 12.—Treasurer Secretary Henry Morgenthau Jr. today accepted the resignation of Dr. Roswell Magill of Columbia university as special assistant to the secretary on taxation matters.

HOME EDITION PRICE TWO CENTS Outside Marlon County. 3 Cent*

Eccles is the first far westerner to hold that position. He takes up his duties today, subject to later confirmation by the senate. Important to bankers are Mr. Eccles’ unusually progressive ideas. He is committed definitely to a program that startled Washington when it was outlined before a senate committee in February, 1933. Appeared as New Dealer He was asked to testify as a western Republican but appeared as a New Dealer and proposed: 1. Unification of the banking system. 2. Control of the accumulation cf capital by high income and inheritance taxes. 3. Prohibition of child labor; provision for minimum wages, old age and unemployment insurance. 4. Reservation of real property and sales taxation to the states and ! income and inheritance taxation to the federal government. 5. Creation of a federal agency to pass upon all foreign and domestic securities before they are sold to American investors. 6. Federal control of all means of communication and transportation. 7. Creation of a national economic planning board. 8. Federal payment of depositors in bai’ks closed in 1930-31-32-33. 9. Cancellation of war debts. Argued for Cancellation Mr. Eccles suggested cancellation in exchange for foreign currency stabilization, armaments reduction and certain trade concessions. He argued that: ”Nc one would be as greatly benefited by cancellation as American agriculture and American labor. A comparatively mall portion of our population would make up this loss to the treasury through the payment of income and inheritance taxes which would be made productive by the revival of business.” Summoned to Treasury Mr. Eccles said wealthy persons might be frightened by his plan, but insisted it was necessary to obtain an immediate better distribution of wealth in the United States. That - program brought Mr. Eccles to Mr. Roosevelt’s attention and a year later Mr. Roosevelt summoned him to the treasury as special assistant. It was his first political job. As head of the federal reserve system, he will urge unification of the American banking system, which now comprises: 1. More than 6.000 federal reserve (private) members banks. 2. Almost 10,000 (private) nonmember banks. 3. About 600 (also privately owned* mutual savings banks. No Setup So Mixed No other nation possesses so mixed and numerous a bank setup. Unification means simply that the federal reserve system would absorb the nonmember state banks which now are not responsible to it. The 1933 bank act put teeth in the law. The reserve board can compel removal of unsound bank officials. There was only the fiction of real and effective control before the 1933 act was passed. Therefore, absorption of the numerous state banks and a centralization of authority in the board would be more than a gesture. It seems reasonable to believe that is what Mr. Roosevelt has in mind —it would be the substance, if not the form, of a central bank. Five Ardent New Dealers. With Mr. Eccles, five of the eight board members are enthusiastic New Dealers. There is no reason to doubt that the board will do as Mr. Roosevelt suggests. Mr. Eccle’s appointment makes the board definitely, if unofficially, a part of the New Deal administration. Legally, the board and any administration are distinct although the secretary of treasury always has presided as ex-officio board chairman. Senator Carter Glass (Dem., Va.). who sponsored the federal reserve act in 1914. tried a year ago to separate the Federal Reserve system from the government altogether by removing the secretary from board office. Mr. Roosevelt evidently is moving in the other direction.