Indianapolis Times, Volume 46, Number 170, Indianapolis, Marion County, 26 November 1934 — Page 1

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M'NUTT TRAINS GUNS ON AUTO LOAN SHARKS Governor Ready to Demand Laws to End State’s ‘Outlaw Usury.’ SURVEY IS UNDER WAY Legitimate Institutions Join in Drive to Abolish Mortgage Buyers. BY JAMES DOSS TinM Staff Writer. One of the outstanding reforms to be pushed by the state administration In the coming session of the legislature is the eradication of the loan shark in the automobile mortgage field Dealers in automobile mortgages are entirely outside the law and many are alleged to be charging h:ghiv usurious interest rates. Preparation of date for the scheduled legislation is in the hands of the state department of financial institutions, which already has obtained marked reductions in the petty loan rates. Survey Is I'nder Way A survey is being earned on quietK by Herman B. wells, banks director. and Homer O Stone of the division of research and statistics. I is hoped to accumulate enough data to provide the 1935 legislature with information on which to base a law bringing automobile nnd other unregulated loans within the jurisdiction of the state department of financial institutions and thus halt the excessive interest rates said to be charged. Through a pyramided financing system, these interest rates are said to be as high as 50 per cent in some instances. Jain in Drive Legitimate institutions of the state have been enlisted in the drive j against the usurious lender. Mr. Stone has sent questionnaires to' registered lenders, asking them to j give the names of automobile and other lenders in their communities who are operating without a state license: pawnbrokers, mortgage buyers and individual lenders. Budding and loan associations; and banks also have been asked to aid the department. The state administration is on record for the reform. It was made a definite pledge by Governor Paul V. McNutt during the campaign. He \ referred to it fleetmgly. but far from vaguely, in each of his celebrated ‘open forum" addresses in which he discussed state issues and answered questions on conduct of the state government. PLANE - FALLS APART IN MIDAIR: 2 KILLED Sweetheart and Families of Victims See Tragedy. JJy f nilrd Prn l< NORTON. Mass.. Nov. 26— While the sweetheart of one of the victims looked on. a stunting biplane fell apart in midair here yesterday and fell 1200 feet, carrying a young woman artist and an amateur pilot to their deaths. Miss Rubv Rand pretty graduate of a Worcester art school who had celebrated her twenty-second birthriav anniversary Saturday, and William P Melcher. 35-year-old garage mechanic of Sharon, who had had seven years flying experience, were the victims Not only the girls fiance, but her parents. Mr. and Mrs. Hollis C. Rand, and Melcher's wife and two children witnessed the tragedy. BYRD CLAIMS HUGE AREA AT SOUTH POLE yan.ftOrt Square Miles Observed in Flight*. Sought for l'. S. r rv, • LITTLE AMERICA. Antarctica Nov. 24 'Via Mackav Radioi— Rear Admiral Richard E Bvrd. after a second airplane flight eastward decided todav that there was no continental division marked by a ve level area of ice. as he had reported on his previous flight. He sent a message lo President Roosevelt saving that he had claimed altogether 300.090 square miles of ire covered territory for 'he United States which he had observed on his flights FLOWER MISSION FUND GETS 5750 FROM CLUB Cervua Group Makes Donation: 569 More Received. Among recent contributions to the Flower Mission Tuberculosis hospital fund are *750 from the Ctrvu* Club: *SO from the Octdahl Club: *lO from Big Eagle American Legion auxiliary. 96; *4 from Wayne American Legion auxiliary 64. and *5 from the Round Table Club. Times Index Page Bridge 71 Broun 11' Business News 4 Comics 17 Crossword Puzzle 15 Curious World 17 Dancm* Lesson 7 Drawing Lesson 4 Editorial 12 Financial 13 Hickman-Theaters 18 Hbby 5 pegier 11 Radio 7 Sports .. 14. 15 State New s 4 Woman* Pages 6. 7.

The Indianapolis Times Showers probable tonight and tomorrow, somewhat warmer tonight.

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VOLUME 16—NUMBER 170 * *

HOLD KEY ROLES IN PROBE OF ALLEGED SWINDLE PLOT

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Prosecuting attorneys in Chicago today were preparing to present to the Cook county grand jury there evidence in the alleged plot to buy three Indianapolis banks with bonds stolen from an insurance company and then to use these banks in disposing of other stolen securities. Charged by authorities with complicity in the alleged crime is iupper left photoi Dave Barry, right, famed "long count" referee of the second Dempsey-Tunnev fight, shown

Indictments to Be Asked of Grand Jury in Probe of Plot to Plunder Banks

Spiked last week in an audacious alleged attempt to buy three Indianapolis banks with bonds stolen from an insurance company, at least three of an alleged gang of seven today faced grand jury action in Chicago where the plot was uncovered. State's attorneys there said they would ask the jury to indict the three for passing $54,000 of bogus checks through the Amalgamated Trust and Savings bank of Chicago in part payment for the Abraham Lincoln Insurance Company of Springfield. 111., a $13,000,000 con•CAPTIVE' GIRL CASE SCHEDULED TO OPEN Father. Stepmother to Get Hearing Today. Nervous excitement claimed Helen Mack this afternoon as the trial of her father. Harry Mack, and her stepmother. Mrs. Ora Mack, on chargps of child neglect before Juappeared restless and shyly uneasy, nearer. Helen, the blond 16-vear-oid girl who was released last week from an eight months' imprisonment in a room at 1302 West Market street, appeared restless and shyly uneasey. aectrrimc to Miss Anna E. Pickard, superintendent of the juvenile detention home, where Helen has been staying since her release. Yesterday the young girl, into whtse emaciated cheeks anew bloom has spread in the short while that she has been free, attended Sunday school and church, said Mrs Pickard, and devoted the remainder of the day to drawing pictures. SEEK TO NOTIFY SON OF FATHER'S DEATH Edgar E. Young. 66. Succumbs in City Hospital. Indianapolis Railway officials todav were seeking Donald E. Young, formerly of 2916’- 3 North Illinois street, to notify him of the death of his father Edgar E Young. 66. of 350 West Washington street, a pensioned employe Mr. Young, who was pensioned after serving twenty-one years as a conudctor for the street railway company, died last meht in city hospital of natural causes. All efforts to locate his son have failed although he is said to have visited his father yesterday afternoon. Mr. Young accompanied a group of street railway employes on a trip Friday to dig turnips for use in company Thanksgiving baskets and appeared in good health at that time. Last night he collapsed and we* taken to the hospital.

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with his attorneys. W. W, Smith, left, and A. E. Bucciere. center. Also accused by prosecutors <upppr right). Joseph Baiata. Chicago. saloon owner and ex-con-vict; (lower left) Abraham Karatz, former St. Paul attorney; lower center' Gustav lindquist, former Minnesota state insurance commissioner, and 'lower right), Otto Van Derek. 23-year-old Chicago bank clerk, whose confession led the "breaking” of the case, according to authorities.

seem with $.70,000,000 outstanding policies. While Vernon Thompson, assistant state's attorney, who uncovered the plot after a 23-year-old bank clerk became conscience-stricken and told him some of the details, would not say exactly how many of the men would be named before the grand jury, he indicated that he will , seek indictments for Joseph Biata, ex-convict and confidence man named as the arch-conspirator of 'the plot: Gustav Lindquist, former Minnesota insurance commissioner ! and since October president of the Abraham Lincoln Company, and ! Hayden Sanders, once assistant cashier of the Amalgamated bank | and since treasurer- of the insurance company. Biata and Sanders are under arrest. Lindquist, who with Sanders was ousted from office in the in- , surance company Friday, when it was merged with the Illinois Bankers Assurance Company, disappeared from his home Thursday and is a fugitive. Mr. Thompson and Dodd Healv, assistant state's attorney, asserted i that they have a full confession j from Sanders that he and Lindquist. under Baiata's direction, drew i fraudulent checks on the insurance company to make a $25,000 payment on its purchase at a price of $400,000. They also claimed a confession by Otto Van Derek, the 23-ycar-old bank clerk, whose bothered conscience started the investigation. Thompson said action might be delaved against Dave 'Long Count) Barrv. prize fight referee and saloon keeper; W. W. Ehlers, established as a broker by Baiata and given a $25,000 cheek, issued by the insurance company, which he tried

CITY MAN IS FOUND DEAD AFTER CRASH Victim’s Body Half Mile From Accident Scene. ; By T nited Pre** SHELBYVILLE. Ind , Nov. 26 Apparently the victim of an automobile accident, the body of James O. Johnson. 43, Indianapolis, was found beside State Road 29. seven miles northwest of Shelbyville. early today. The discovery was made by two hunters. Floyd Barbee and Ide Holmes, both of Indianapolis. Mr Johnson was lying about onehalf mile southeast of the place where his car had been wrecked against a telephone pole. Coroner Thomas Hartmel said Mr. Johnson apparently was hurt in the accident and died while gttemptms to obtain aid.

INDIANAPOLIS, MONDAY, NOVEMBER 26, 1934

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OPEN WAR ON STICKER-FIXING Conference Held, Proposals Made to Abolish Evil of ‘Politics.’ Plans to eliminate the evil of "fixing” stickers issued by police for traffic ordinance violations were under consideration at police headquarters today, along with the possibility that existing traffic laws might be made more stringent, following a conference Saturday between Chief Mike Morrissey' and City Prosecutor John E. Loftus. The conference, which Traffic Captain Lewis Johnson also attended. followed by twenty-Hour hours an editorial demand by The Indianapolis Times that sticker “fixing” be ended.

unsuccessfully to cash, and Abraham Karatz, former St. Paul lawyer and reported associate of Baiata. Van Derek may be exempted from prosecution. The prosecutors said the accused men planned to finance the balance of the insurance company purchase price, as well as of the Indianapolis banks, b.v buying stolen bonds from criminals at 10 and 15 cents on the dollar and substituting them for legitimate assets of the institution's portfolios. Chicago prosecutors refused to name the three Indianapolis banks involved.

BANKER, WIFE, TWO CHILDREN ARE SLAIN Suicide, Murder Are Believed Death Causes. By United Pre* DEMOPOLIS. Ala.. Nov. 27. Authorities today interpreted the deaths of F. Clements Smith, bank cashier, his wife and their two small children as murder and suicide. The motive was a mystery. The four bodies were found in the bedroom of the Smith home by Gertrude Robertson. Negro cook, yesterday. Mrs. Smith and her 4-year-old son. Frank, lay on a bed. The mother was fully dressed. She had been shot twice in the chest. The boy. wearing his night clothes, had been shot once in the head. In her crib was the body of Sabra Smith. 2 months old. She had been shot once in the head. Mr. Smith, dressed in pajamas, lay on the floor beside the bed. His head was pierced by a builet and on his forehead was a bruise where another bullet might have grazed him. A .32-caliber pistol, from which six shots had been fired, lay at his feet. JUDGE CHOICE LISTED FOR HANRAHAN TRIAL Sheaffer Names Three From Whom One May Be Chosen. Another effort to begin the trial of Michael J. 'Mike) Hanrahan, proprietor of the Pennhoff grill, 23 North Pennsylvania street, on charges of by-the-drink liquor sales, was made by Municipal Judge William H. Sheaffer today when he named three attorneys from whom a special judge may be chosen. Those named by Judge Sheaffer are Harvey B Hartsock. Taylor E Groninger and Ralph B Gregg. The defense will strike one name from the list, the state another and the third man will sit in the case providi lg he is willing to serve. Mr, Hanrahan was arrester? July 13.

MYSTERY OF THREE GIRLS FOUND DEAD IN WOODS LINKED TO WOMAN SHOT TO DEATH 100 MILES AWAY

Taxi Driver Is Murdered in Cold Blood While at Steering Wheel of Cab Slain by Mysterious Assailant by Shot From Behind So Close Powder Marks Are Left on Body: Motive Baffles Probers. The body of a murdered taxicab driver, who had been shot in cold blood by a mysterious assailant who pressed a pistol close against his victim's back, was found early today in his cab in front of 734 North Sheffield avenue, where it apparently had been since 8:30 last night. The murdered man was Arthur Alexander, 43, Apt. 4. 1649 Central avenue. Mr. Alexander had been a cab driver in Indianapolis fifteen years. He was driving a United taxi, cab No. 62. when he was killed. The cab was seen, parked six or seven feet from the side of the street, in front of the Sheffield avonue address last night by Garold Medsker. 16. who lives there, and others living in the neighborhood. The meter light was burning, as well as head and tail lights, according to young Medsker. He saw nothing unusual in the presence of the cab and did not investigate. The position of the body when it was found, however, slumped to the right, lengthwise across the driver's seat, indicated that

it probably was there when toe Medsker boy and other witnesses first noticed it at 8:30. At about 6 this morning, two neighbors of the Medskers noticed the car as they started to work. Its lamps were flickering feebly, the battery almost burned out. Former Driver Identifies Body The neighbors—William Seeman and Mrs. Mabel Gibson, both of 745 North Sheffield avenue—investigated and discovered the body. Patrolmen Walter Coleman and Emanuel Gebauer and Deputy Coroner John E. Wyttenbach responded to their call. Robert Imhausen, 1934 West New York street, a former driver for the United Comany, was atti acted by the crowd around the cab, and identified the body. Dr. Wyttenbach found $2.53 in a pocketbook in the victim's clothing. A check of the meter by cab company officials later revealed that he should have been carrying $1.85 in fares alone. Robbery could not be established as % motive - immediately, however, since the nature of the wound indicated that there had been no struggle and that Mr. Alexander had been given no chance for his life. Mr. Alexander never had been robbed, it was learned, and frequently had boasted that he would “make it tough” for any one who attempted to hold him up. Powder Burns on Body The pistol with which he had been killed, a weapon of either .38 or .32 caliber, had been placed so close to his back that there were powder burns not only on his bulky clothing, but also on the flesh of his back. The bullet had entered his right shoulder, ranged through the body and emerged through the pulmonary artery, near the heart. He died almost instantly. Dr. Wyttenbach sd.id after a preliminary post mortem examination in city morgue. A check of the cab company’s records revealed that Mr. Alexander's last call had been received at the company's Fountain square box at 7:59 last night. At that time, he went to 1451 South Meridian street. Miss Louise Dosch, 24, of that address. told The Indianapolis Times today that she had called a United cab at about 8 and had ridden in it to an address within half a block of the intersection of Harding and West Morris streets, where she met a friend, Phil Murray, 1137 Reisner street, at a beer tavern operated by Mr. Murray's brother. The cab turned east on Morris street, she declared. This was about 8.15 or 8:20. Talked Only a Minute Miss Dosch added that she had talked only a minute with the driver on the trip, then to compliment him on the speed with which her call had been answered. Presumably, he had picked up a passenger immediately after leaving Miss Dosch. Mrs. Esther Alexander, 35, attractive widow of the murdered man. was notified of his death shortly after she reported for work this morning at the Progress Laundry. 430 East Market street, where she is-a lifter.

Five Stitches in Heart, Youth Looks Forward to Genuine Thanksgiving Day

B’l United Prrut PITTSBURGH. Nov. 26—Five stitches in his heart did not prevent Charles Cepak, 16. from anticipating a genuine Thanksgiving today. Rather, the five stitches in Charles’ heart brought home to him the real import of Thanksgiving. He has two things to be thankful for—his life, and the wonders of surgery. While in his father's butcher shop. Nov. 17. Charles was stabbed in the heart by a fnend—a playful lunge with a meat knife, and Charles fell to the floor unconscious. Customers gathered up his limp form and rushed him to Presbyterian hospital. Admitted to the emergency room, his skin was cold and clammy. His pulse was so feeble that physicians could not count it accurately.

Insult ‘Happiest Man in U. S. ’ After Acquittal Fallen Utility Czar Confident of Complete Exoneration on Charges of Embezzlement. By United Prrzt CHICAGO. Nov. 26.—Samuel Insull probably was one of the happiest men in America today, convinced that in effect he already is exonerated of state and federal charges of embezzlement and violation of bankruptcy

TRIO KILLED IN AUTO WRECKS One of Victims Loses Life in Hit-Run Mishap: Suspect Held. Three persons were killed during the week-end in Indianapolis automobile accidents and thus did 1934's ghastly death list move inexorably higher. The Marion county death toll for the year now is 118. The fatality toll for all of 1933 was 131, while in 1932 it was 96. John Kramp, 35, of 1635 Fisher avenue, injured in a wreck early today, died one hour later in city hospital of a fractured skull. Lester Spangler. 21. of 2166 Napoleon street, was found dead in the 3800

block West Washington street, the t ictim of a hit-and-run motorist. Saturday’s victim was Mrs. Effie Griffing. 66. of

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3515 North Pennsylvania street. Mr. Kramp was driving one of two cars that collieded at Madison and Troy avenues. Nine other persons were injured in the crash. Deputy sheriffs, working on the Spangler case, today traced a driver through license numbers and brought him to headquarters for questioning. A resident of Bridgeport, the driver said he had driven along the road where Mr. Spangler's body was found but said his car struck nothing. He explained noticeable dents in the fender of his car by saying he had bumped the car as he attempted to put it in the garage. The dead youth formerly was a pupil of Manual high school, and lately had been able to find only occasional employment. He iived with his parents, Mr. and Mrs. Leonard Spangler, and is survived by them, his widow,. Mrs. Katherine Spangler; brothers. John. Lewis and Walter. Indianapolis: and a sister, Mrs. Beulah Primmer. Lafayette. Services will be at 2 Tuesday at the Blasengvm establishment, 2226 Shelby street, and burial will be in Greenwood. Services for Mrs. Grifflng will be held at 1:30 today in the Flanner & Buchanan mortuary. Burial will be in Crown Hill.

At 7 p. m.—three hours after Charles was stabbed—he was administered a local anesthetic. At 8:15 he was back on his hospital cot, with the five stitches in his heart, and his head in an oxygen tent. Charles watched the operation unflinchingly. A staff surgeon laid back about nine square inches of flesh around the gash. The flap, I which was folded back toward the armpit, was a 3-inch square, I folded on the fourth side a n r T"'HEN the surgeon sawed through three ribs, about an inch from the breastbone, and bent, them back, exposing thp slowly pulsing heart in a well of blood. An aspirator was applied, and a pint and a h*' of blood drawn

Fnf*trd as Matter a f . Posu>fTice, Indianapolis. Ind.

Authorities Striving* to Untangle Weird Case See Hope of Reaching Partial Solution by This Afternoon. BUS DRIVER IDENTIFIES PICTURE Believes Bullet Victim Was Person Who Accompanied Golden-Haired Children on Trip Last Wednesday. By United Prcs CARLISLE, Pa., Nov. 26. —The mystery of three young 1 girls, found dead beneath a blanket in the South mountains, appeared near solution this afternoon with circumstances pointing- dramatically to a second tragedy 100 miles awa^’ — the death of an unidentified woman near Altoona, Fa. While detectives traced the origin of garments found on the golden haired “babes in the wood.” a bus driver was sped by state police car to Altoona, to confirm his partial identification of a woman who was shot to death there last Saturday.

laws pending against him. The white-haired little martinet of La Salle street in better days exulted volubly at his acquittal Saturday with his son and fifteen friends, of swindling investors in his I $150,000,000 Corporation Securities j Company, and predicted confidentjly that other charges will be dis- | missed. ‘‘Another trial—if there is another |one —will bring the same verdirU” he chortled. “That verdict Saturday was the beginning of my complete vindication.” With a deal of hearty rbuckling and rapid fire chatter he posed at, i length yesterday with his wife, his | son, his grandson and Colin Glpn- | cannon, the scottie, for newspaper and newsreel photographers. Sporting a white waistcoat, a gardenia and pearl spats to offset ; his modish blue suit, he was the picj ture of a happy man. A snappy ; lake wind had pinked his cheeks on j a pre-breakfast constitutional, his snowy mustache and hair were freshly barbered and his eyes snapped with energy. He remonstrated gallantly whrn Mrs. Insull, a stage beauty of the nineties and still outstandingly attractive, exclaimed: “My. I wish I could change my face for all this.” She remarked to the photographers that “he always was nice like that, but you can't fool a camera.” SANTA TO BE GIVEN GALA GREETING HERE Many Civic Groups to Take Part in Parade. Santa Claus and his colorful enI tourage will learn just what Hoosier I hospitality can mean when they ar- : rive in Indianapolis, Friday mom- ! ing. A partial list of the organizations that will form Santa’s reception committee and participate in the parade to be given in his honor consists of the Indianapolis Chamber of Commerce, the Junior Chamber of Commerce. Children’s Museum, Marion County Tuberculosis Association, Seventh District Federation of Women’s Clubs, Boy Scouts, Girls Scouts and the City Recreation department. Striking floats are being planned in addition to the many beatiful and unusual features Santa will bring with him from his headquarters at the North Pole. Santa's parade will be a gala event 1 worth coming many miles to see.

from the chest cavity. An assistant fed the blood back into the boy's veins through an artery in the right arm while the surgeon sewed the heart. Charles asked for a drink cf water when he was returned from the operating room. He got it. He asked for com flakes the next morning. He got them as well as any other foods he has asked for, in moderation. The operation called for no restricted diet, attending physcians said. Although the boy was permuted to sit on the edge of the bed for a while Friday, and his improvement has be<n "slow but steady.” doctors pointed out that he was far from being out of danger. As far as the heart is concerned, they were satisfied it is mending But the danger of infection from the meat knife still exists

HOME EDITION r K IC E TWO CENTS Outside Marion County. 3 Cents

lie believed she was the companion of three children brought by him into Pennsylvania from New York five i days ago. The chief lines of investigation pointed from Carlisle toward New York City and possibly from there to New England. Paul W. White, the bus driver, identified the photograph of the woman, who apparently was the victim of a murder-suicide pact, as a passenger who rode, with three children resembling the girts found dead Saturday, from New York into Harrisburg on Wednesday, Nov. 21. Their tickets, he said, called for transportation to Pittsburgh. Labels Are Traced A second bus driver remembered carrying the four passengers farther along on their journey to Pitts- , burgh, and said he believed they left his bus near Altoona. Labels on | the children's coats also were traced ! to New York City. Another report, of the possible : wanderings of the family was received from Boston, where it was j said a woman and three children I purchased steamship passage to Ne.“ York on the Eastern Steamship Lines. This report said, however, i that, the passage was purchased Wednesday afternoon, which would ! be in conflict with White’s story. Another possible clew was that. 1 the children lived with their mother ; and stepfather in Jamaica. Long ! Island, a year ago. Police at New York checked that possibility. Find No Trace of Poison An officials report of the toxi- | cologists who have searched for j traces of poison or evidence of vioi lence. disclosed that there was no | indication of carbon monoxide or I any other poisoning, and that none i of the children had been assaulted. The three coats worn by the children, two of green cloth and one of blue, and all edged along the collar ! with brown fur, were traced by their | NR A labels, which bore the letter XWA. to H A J. Block, New York i garment manufacturers, and from ; other numbers an attempt was being made to trace them to customers. Detectives also were checking the origin of the three pairs of shoes, one an auburn square grape spud, j the others pumps. No labels were found on the chil- ! dren's underwear. RAIN WILL CONTINUE. ARMINGTON REPORTS Temperature Five Degrees Above Normal, He Announces. Today's temperature is about five degrees above the seasonal normal, J. H. Armington, United States meteorologist here, today announced bv way of consolation for those who I do not like rain. As for the rain, it will be with lus today and tomorrow. Mr. Ari mington said, and the high temperature will continue with it. The i showers are widespread, and Mr. Armington had to look as' far west as the grain states before finding any colder weather in sight. Even that weather isn't cold, he declared, but such as it is it will reach Indianapolis not before Wednesday. The abnormal temperatare to which Mr. Armington referred was 40 at 3a. m. It will rise about five more degrees, he said.

TODAY’S WEATHER

Hourly Temperatures 6a. m 38 10 a. m 39 7 a. m. ... 40 11 a m. ... 40 Ba. m 41 12 'noon) 42 9 a. m 40 1 p. m 4.3 Tomorrow's sunrise, 644 a. m.; sunset, 4:22 p. m. In the Air Weather conditions at 9 a. m.: Southeast wind, thirteen miles an hour: barometric pressure, 30.01 at =ea level; temperature, 40. general conditions, high overcast, lower broken clouds: celling, estimated. 3.000 feet; visibility, two miles; light rain, light fog. Your motor checked, carburetor adjusted. See Carburetor Sales, 314 E. Ohio.— Adv. j