Indianapolis Times, Volume 46, Number 242, Indianapolis, Marion County, 18 February 1935 — Page 1

NEW DEAL UPHELD ON GOLD LAW

NAZIS BEHEAD 2 WOMEN ON SPY CHARGES Beauties Put to Death on Block After Conviction in People’s Court. OTHERS ARE GIVEN LIFE German Officials Attempt to Keep Killing Stories Mystery. BpT-n itrrt Press BERLIN, Feb. 18. Baroness Benita Von Berg, a society beauty of surpassing cham, and Frau Renate Von N&tzmre, another blueblooded beauty, were beheaded today for spying on behalf of a foreign state. The execution of the two women was carried out at dawn with such secrecy that it was hours before the official veil could be penetrated sufficiently to learn their exact fate. ♦ At first, officials said they had been shot by a firing squad. Then the statement was retracted and it was admitted the women had gone to the block, where their heads were chopped off by a silk-hatted executioner with a medieval battle ax. Others Are Given Life Their necks shaven for death, they were led into the courtyard of Ploetzensee Prison and executed before a small, carefully chosen group of witnesses. Other defendants in one of the most fantastic espionage conspiracies in modern times were sentenced to life imprisonment. The latter were Baron Georg Von Bosnowski, the dashing Polish cavalry officer whose name was used to describe the plot which cost his one-time love, the beautiful Baron- ; ess; Fraulein Von Jena and another i woman secretary of the Reithswehr, j whose mme was not revealed. One Woman Shoots Herself A woman dancer, Fraulein Kru.e it was learned, was sentenced to nine months’ imprisonment for implication in the case but was released. inasmuch as she already had been in prison for more than that time during the investigation and trial. Another woman whose name was not ascertained was suspected but fled before she could be arrested, and subsequently shot herself. The official secrecy which surrounded the executions ’•as so great that when officials finally consented to issue an official announcement, it did not even say whether the women were shot or beheaded, but it was learned definitely that they were beheaded. Conflicting Stories Told Conflicting stories were told by Nazi officials about the executions, causing extreme confusion. The ministry of justice itself told different stories, and it was necessary for newspaper men to ascertain the truth from their own sources. After the beheadings, inspired comment appeared in the afternoon papers, justifying the execution of two women. The following was typical: “The sentence of the Peoples' Court which led to the execution of the two women was passed for the most hideous crime that can be committed. Treason may result in costing the lives of thousands of citizens. “Without thinking of the consequences their actions might have for thousands of their countrymen, these thoughtless people delivered military secrets to a foreign power. Their action was aggravated by the fact that they accepted money. The culprits were members of old and noble Prussian families which had rendered valiant services to the nation. The Nazi State, however, like any other state which desires to protect lives of citizens, was unable to take into consideration the me. its cf those families in judging the present case. It is the task of Naziism to exterminate treason and carry out its task unflinchingly." Times Index Page. Bridge 4 Broun 7 Business News 9 Comics 13 Crossword Puzzle 13 Curious World 13 Editorial 6 Financial 8 Hickman-Theaters 11 Napoleon Letters 7 Pegler 7 Piano Lesson 5 Radio 9 Sports 10-11 Str.te News * 2 Woman's Pages 4-5

BOYS AND GIRLS FROM 10 TO 18 An announcement of unusual Interest and importance to every boy and girl between the ages of 10 and 18 who Is interested in aviation will be made in The Times Wednesday. Watch for it!

The Indianapolis Times Partly cloudy tonight and tomorrow; possibly rain tonight; slightly warmer tonight, lowest temperature about 37; somewhat colder tomorrow.

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VOLUME 46—NUMBER 242

Girl, 13, Saves Baby Brother From Blaze; Parents Held for Neglect

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Her loyalty to her 4-months old biother, Richard, led Pauline Mootz, 13, back into her burning home at 2001 N. Keystone-av, yesterday to rescue him. She is shown here holding Richard and Jean Mootz. 3. Raymond Mootz. 11. is sitting on the arm of the chair. Richard and Jean were helped by neighbors to escape from the fire.

Father and Mother Left Four Children Alone in Home, Police Charge; Neighbor Suffers Cut Artery in Attempt to Smash Window. Mr. and Mrs. Fred Mootz, 2001 N. Keystone-av, face charges of child neglect today in Juvenile Court. Police allege that they left their four children alone in their home Saturday night and yesterday. Yesterday

me uoiue caugiiL urv. Pauline, 13, the oldest child, the heroine of the occasion, carried her " o . ag brother, Richard, 4 months clu, to safety from the burning louse. Raymond. 11, and Jean, 3, were aided from the blaze by Mrs. Dorothy Speece, 40, of 2007 N. Key-stone-av. Ivan Long. 2C15 N. Keystone-av, suffered a cut artery in the right arm when he attempted to smash a window in the home to rescue the children. He was sent to City Hospital. The furnishings of the house were a total loss after the fire. The blaze also damaged 2003 N. Keystone-av, the other half of the double house. Sergt. Frank Reilly took the children to the Juvenile Detention Home. Mr. and Mrs. Mootz were arrested later and were freed last night in bond of SSOO each, supplied by Clyde C. Karrer, criminal judge pro tern. Ira W. McQuinn, 72, of 4700 W. Raymond-st. Is in a serious condition at Methodist Hospital today as the result of burns suffered yesterday when a kerosene stove he was lighting exploded at his grocery at the W. Raymond-st address. 22 SHOOT WAY OUT OF PRISON; Fourth Convict Surrenders, Others Are Hunted. By United Press GRANITE, Okla., Feb. 48 —Peace officers, augmented by bloodhounds and a radio-equipped airplane, searched highways, by-roads and farmlands in southwestern Oklahoma and Texas today for 18 convicts who shot their way out of the State Relormatory yesterday. There were 22 in the gang that overpowered a guard, surged to the main gate and shot and killed Pate Jones. 60. a tower guardsman. Three were caught. A fourth returned voluntarily, saying he had been forced to take in the break. Leader of the break was dangerous Maloy Kuykendall, redhaired desperado who at 21 has fought two gun battles with officers and broken jail before. FIRST LADY SPEAKS TO REFORMATORY INMATES Machine Gunner Stands Guard During Address. By United Press ELMIRA. N. Y.. Feb. 18.—With a machine gun expert fingering a weapon in the rear of the auditorium. Mrs. Franklin D. Roosevelt yesterday addressed Elmira Reformatory inmates. It was believed the first time that a President’s wife ever spoke in a penal institution. HiT-RUN SUSPECT HELD Homer Payne Accused of Driving Car That Injured Two. Police yesterday arrested Homer Payne. 24. of 426 Irvmg-pl. on charges of being the hit-and-run driver who drove through a safety zone at Delaware and Washingtonsts and struck Loyda Gent, 32, and Charles Bush, 39, both of 439 N. Forest-av. The injured pair was taken to City Hospital where their condition was reported as "not serious.”

WILLIE UP, CITY BOXING STAR, DEAD Pugilist, Veteran at 25, Is Victim of T. B. Willie Yap died last night at Sunnyside Sanatorium where he went to “train for a comeback.” He died of tuberculosis, which, since last August, had wasted him to a shadow of his boxing form. # Only 25, Willie was a veteran of more than 200 ring battles. He was noted for his gameness and his brilliant performances when his name drew fans to fights in and about Indianapolis in 1930 and ’3l. He was the son of a Chinese father and Hawaiian mother. TWO PERISH AS HOTEL IS DAMAGED BY FIRE 300 Others Driven Into Milwaukee Streets by $75,000 Blaze. By United Press MILWAUKEE, Feb. 18. The fashionable lake-front Astor Hotel caught fire just at dawn today. At least two persons lost their lives, 390 others were driven into the streets in their night clothes and damage was estimated at $75,000. The fire started in the basement of the eight-story building, but the flames were halted before they reached the upper floors. Dense oily smoke filled the stair and elevator wells, however, cutting off the usual exits and creeping into every suite. Named Hotel Manager Ray E. Knighton, prominent Indianapolis hotel man, has been advanced to the position of manager at the English Hotel, it was announced today.

Franklin Students Vote to Continue Strike Until Demands Are Satisfied

BY TIPTON S. BLISH Times Staff Writer FRANKLIN. Feb. 18.—Students of Franklin College, in the fifth day of a strike against the college administration, this afternoon voted 172 to 54 to continue that strike until they obtained a more desirable settlement than appeared possible now. Three students voted that they were "neutral” in the question and, at an early hour this afternoon, approximately 20 had not voted. A mass meeting was to elect 12 upper classmen to a “Round Table Board” proposed at chapel this morning by President William Gear Spencer, D. D.. against whom the strike appears to have been largely directed. These 12 will deal with the college's board of directors. The students attended the chapel session as a compromise gesture and many openly doubted the sincerity of the president’s proposal in the face of his frankly taken position that he had no apologies to make for his administration. The vote to continue the strike was taken at a secret meeting of

INDIANAPOLIS, MONDAY, FEBRUARY 18, 1935

LIQUOR BILL IS INTRODUCED IN LOWERHOUSE Measure Balances Budget, Ends $700,000 Deficit Prediction. 3-MAN BOARD SET UP Salaried Commission Given Broad Powers; Taxes Are Reduced. 4 Balancing of the state budget, with its anticipated $700,000 deficit, can be accomplished through diversion of excise revenue to the state general fund, according to a digest of the new liquor control bill introduced today in the Indiana House. Rep. Frank G. Thompson (D., Bluffton), introduced the measure. The shift in the allocation of the excise tax, license fees and other income would place $1,000,000 in tne general fund, it is estimated. In 40 sections, the bill sets up detailed provisions for a general decrease in whisky, beer and wine taxes, a three-man, bipartisan salaried commission including the excise director, abolition of 'the beer importer system, local licensing boards, abolition of the roadhouses and statewide closing hours according to population. For Indianapolis, only first class city in the state, the liquor retailer fee would be SI,OOO for the sale of beer and wine and scale upward, according to seating accommodations, with the starting unit 50 patrons. ''ld-Time Saloon Banned Retail liquor permits scale downward according to the class of the city. The old-time saloon would be banished through a provision that whisky retailing places must be unscreened and uncurtained so as to present a clear view'from the street. The liquor license fee for the largest city in the county would set the scale for the entire county. Thus Beech Grove, for instance, would pay the same fees as in Indianapolis, if a bar were established there. Proponents of local control are given their inning through vesting in city councils and town boards of cities and towns less than 5000 population, the right to determine whether whisky shall be sold by the drink. Local licensing boards also are set up to pass on license applications. Broad Powers to Board The state liquor commission is granted broad powers in license control and price-fixing authority to enforce wholesale price agreements or trade practices. Such agreements, however, would not be effective~>nless approved by 80 per cent of the permitees of each class (Turn to Page Three)

TODAY’S WEATHER

Hourly Temperatures 6a. m 31 10 a. m 36 7a. m 31 11 a. m 41 Ba. m 33 12 (Noon).. 44 9 a. m 36 1 p. m 46 Tomorrow’s sunrise, 6:33 a. m.; sunset, 5:25 p. m. POLICE GRILL SUSPECT Held for Vagrancy, Prisoner Questioned on SISOO Holdup. Peter Barrett, 28, Colonial Hotel, who is alleged to have struck a woman employe and smashed a door glass in a case at 219 N. Illinois-st Saturday night, was being questioned by detectives today in connection with the SISOO pay roll robbery at the Barbasol Cos. He is charged with vagrancy, malicious trespass, drunkenness and resisting arrest.

the students after the chapel session. The demands of the students have included a general liberalization of the administration’s policies, greater recognition of student government, improvement or abolition of compulsory chapel, establishment of “half-scholarships” to bring better students, especially better athletes, to the college, and the establishment of a student social cAiter. In case no promise to meet these demands should be given, the students had said that they would ask for the resignation of President Spencer and Dean P. L. PowelL No indication* has yet been given that any of these demands would be granted, but the truce was called last night at a mass meeting of the 250-odd students, whose arbitration committee had previously met with the president and five of the college directors. The directors and the president had met In a closed session since 2:30 yesterday afternoon and had sent for the student committee after discussing the matter among them-

Court Ruling Greeted With Cheers and Songs on N. Y. Stock Market; Traders and Brokers Then Swing Into Most Active Trading in Months; Tape as Much as 11 Minutes Behind. By United Press NEW YORK, Feb. 18.—Traders and brokers on the floor of the Stock Exchange greeted the Supreme Courts gold clause decisions today with cheers and songs and then plunged into the most active trading in months. The tape, unwinding from tickers that set a furious pace, was as much as 11 minutes behind sales and reminiscent of boom-times in Wall Street. Prices leaped 2 to 10 points before encountering profit-taking. The decisions took the financial

community off balance as there were fears oan adfverse ruling. Dealings in the morning had been cautious. At noon when the Supreme Court justices convened trading in stocks almost came to a standstill. The governors of the Exchange were standing by to close it if necessary. Cheer Goes Up Then when the ruling were released, a spontaneous cheer went up from the floor as traders and brokers let forth their pent-up feelings. Immediately annunciator boards at both ends of the trading floor became a mass of flapping numbers —calling brokers to their phones. The singing died down as traders swung into action. Shouts of bids and offers were reminiscent of the bull market days of 1928-1929. Railroad shares were the most active and crowds around Post 2, at which Atchisoan, Topeka & Santa Fe is traded. Cheers went up as that stock, which touched 42 in the morning shot up to 52! in a few minutes. Other harils had corresponding gains. Foreign Exchange Active All thought of closing the exchange vanished. Governors had been on hand from early morning to act in an emergency. They went to the floor, where they were available for any difficulty encountered in execution of transactions. Tickers were their latest —li minutes —around 12:25 p. m. Then they gradually caught up and profit-tak-ing came into the issues which had made widest gains. Banks also experienced activity. Dealings in foreign exchange were heavy as the dollar adjusted itself. Over the counter dealings were heavy in banks and bond houses. Prices rose all around. The dollar declined rapidly in terms of gold currencies. Bankers reported active foreign exchange trading. Grain Markets Closed By United Press Tremendous trading activity—necessitating suspension of trading of grain marekts in Chicago, Kansas City, St. Louis and Indianapolisfollowed the Supreme Court gold clause announcement today. Prices soared. A review of major markets showed: New York Stock Market-Prices advanced 2 to 10 points with such heavy trading volume that tickers fell 11 minutes behind floor transactions. Some profit taking pared gains. Rails in the lead. New York Bond Market—Railroad Bonds advanced sharply in fairly good trading. Government gold bonds eased and government nogold bonds gained. New York Curb Market-Prices advanced 1 to 3 points in active trading. Chicago Grains Trading suspended shortly after Supreme Court decision but prior to decision, wheat advanced 1 to more than 2 cents a bushel; com more than 2 cents a bushel and oats more than a cent. New York Cotton Market-prices jumped to net gains of around $1 a bale. Other New York Commodity Markets—Cottonseed oil advanced almost 30 points; silk 3Vz to 4% cents a pound advance; rubber gained 40 to 44 points from early lows to net gains of 32 to 36 points. Dollar—Declined in relation to all currencies, gold backed currencies erasing early losses to shoot ahead of the previous close.

selves for more than five hours. At the close of the meeting, a noncommittal statement, prepared by the directors and agreed to by the students, was issued. It said that, although the strike had been untimely and the students had acted without sufficient forethought, no punishment would be given and cuts would not be charged for classes missed. The directors agreed that they were responsible for many of the evils which the students had laid at other doors and that they had not “visited together” with the students as much as they should have. The statement was signed by the president and by the committees representing the board and the student body. Actually, it had been prepared by the board members and submitted to the student committee. Only students were permitted to attend the mass meeting in the gymnasium, but it is known that many fiery speeches were made against acceptance of the committee’s decision. Many of the students openly charged that their leaders had "sold out.”

Entered ss Second-Class Matter at Postoffice, Indianapolis, Ind.

HOLD PARLEY ON S-NRA BILL Code Authorities Meet With Gov. McNutt, Discuss All Clauses. Indiana NRA code authorities met with Gov. Paul V. McNutt today and discussed all phases of the controversy over adoption of the StateNRA bill. The Senate Judiciary Committee A was to receive some time today amendments to the S-NRA which would redefine the “loss leader” and which would eliminate imprisonment from punishment for violation, leaving a fine the only punitive measure. While the conuference was in progress, a substitute S-NRA measure, excluding the bitterly assailed “loss leader” and collective bargaining sections of the House-approved Dyer state industrial stabilization act, was handed to Judiciary B Committee of the Senate. This bill is said to have the backing of the Indianapolis Retail Merchants Association and the Indianapolis Chamber of Commerce. If the compromise measure is found satisfactory there is a possibility it will be substituted bodily for the Dyer draft. Gov, McNutt is studying the new proposal. Designed to enable the state to comply with whatever NRA legislation is enacted by Congress, the bill would further remove a possibility of conflict between state and national legislation, according to its backers. The new bill would give the Governor power to effectuate the policy of the act and utilize local, state and Federal officers to carry out as its administration. I. A. G. TO SELECT 5 DIRECTORS TODAY Election to Be Climaxed by Dinner Tonight. Five of 11 previously selected candidates w j re to be elected to the Indianapolis Athletic Club board of directors today by a popular vote of resident members in the I. A. C.’s annual election. The voting booth was to be open in the lobby from noon until 7. The candidates, named by the club’s nominating committee, include R. C. Griswold, C. L. Buschmann, Walker W. Winslow, Dudley Gallahue, Gerry M. Sanborn, William H. Wemmer, C. H. Bradley, O. N. Frenzel Jr., Prank B. Shields, A. R. Heiskell and Bowman Elder. The annual reports of officers and directors will be made at the stag dinner and business meeting to follow at 7 tonight. PATIENTS RESCUED AS FIRE SWEEPS HOSPITAL Fifty Carried to Safety by Firemen and Nurses in $125,000 Blaze. By United Press MURRAY, Ky., Feb. 18—Nurses aided firemen yesterday in heroic rescues of 50 patients from fire which destroyed the William Mason Memorial Hospital with damage of more than $125,000. Three nurses were injured slightly when they jumped from windows. They were Anna Olson, Virginia, Minn.; Lorna Young and Norma Spaulding, both of Holland, Mich. WEST POINT EXAMS FOR FIFTH CORPS SET Tests to Be Conducted March 5 at Ft. Harrison. Candidates from the Fifth Army Corps Area, composed of Ohio, West Virginia, Indiana and Kehtucky, who are seeking admission to the United States Military Academy at West Point, will receive their final examination at Ft. Benjamin Harrison March 5. Maj. Arthur Boettcher, 11th Infantry, will act as president of the examining board. Famed Urologist to Speak Dr. G. G. Smith, Boston, president of the American Urological Association. will speak on “Renal Infections” at the Indianapolis Medical Society meeting tomorrow night in the Athenaeum. Dr. Smith also will conduct a clinic at 4:15 in the Indiana University School of Medicine.

COURT LINES UP WITH ROOSEVELT ON ALL 3 CASES All Three Decisions Are Rendered by 5-to-4 Verdicts; Chief Justice Hughes Is Majority Spoksman. M’REYNOLDS LEADS CONSERVATIVES Brandeis, Stone, Roberts and Cardoza Join in Supporting Government’s Stand on Monetary Issues. By United Press WASHINGTON, Feb. 18. The Supreme Court by five-to-four decisions today gave the New Deal a sweeping victory in the momentous gold clause cases. The majority decision of the court unqualifiedly approved the action of Congress in outlawing gold payment clauses in some $75,000,000,000 of private corporation bonds. On cancellation of gold payment clauses in the government’s own bonds, the court excoriated the government, but it threw the case out of court. The effect was that, although the court said Congress could not invalidate the gold clause in government bonds, the holders of those bonds must be content with payment of the face value in devaluated dollars, rather than be paid at the rate of $1.69 to the dollar, as they had sought. The court likewise threw out a suit in which a former holder of gold certificates sought the same amount of premium on them. The net result of majority decisions was protection for the Roosevelt monetary policies as now in effect, despite the court’s criticism of some New Deal methods.

Administration officials were jubilant over the result. Atty. Gen. Homer S. Cummings, saying he was “pleased,” rushed to the White House to interpret the good news to President Roosevelt. Chief Justice Charles Evans Hughes read the majority

opinions to a courtroom packed with high officials, senators, financiers and socialites. With him sided Justices Louis D. Brandeis, Harlan F. Stone, Owen J. Roberts and Benjamin N. Cardozo. The “conservative” bloc dissented to every decision. Justice James CMcßeynolds outlined the disagreement of himself and Justices Willis Van Devanter, George Sutherland and Pierce Butler, The majority sustained in every respect the cancellation of gold clauses in some $75,000,000,000 of private bonds. Claimants in ihe suits had sought payment at the rate of $1.60 because it takes that much present devalued currency to equal the former gold dollar on which the bonds had been based. Bond Decision Complex But this court pointed out that to force corporations to pay $1.69 would work havoc throughout the American economic system because all income of the corporations would be based on the new dollar. Upholding cancellation of the gold clauses, the court said: “We think that it is clearly shown that thees clauses interfere with the exertion of the power granted to the Congress and certainly it is not established that the Congress arbitrarily or capriciously decided that such an interference existed.” The decision with respect to government bonds was more complex. “We are not concerned with the wisdom of the steps taken,” Chief. Justice Hughes told the courtroom packed with Administration officials, lawyers, Wall Street representatives and socialites. “We are concerned only with power,” he said. Justice Benjamin Cardoza, hunched in his chair, peered intently into the faces of the distinguished visitors in the first few rows. Senate Majority Leader Joseph T. Robinson came in at 12:15 as Justice Hughes was reading. He was advised by an attorney that “the government has been upheld in all cases. “That’s fine,” Senator Robiason exclaimed, a broad smile on his face. Angus Mac Lean, assistant solicitor general, was present in the courtroom. Varied Reaction Here The Supreme Court’s gold decision for the government today was received by Indianapolis business men, bankers, traders and observers with varied reactions. Bankers in general were happy | over the decision and seemed cer- j tain that business would either continue on the current level or show a marked pickup. Building industries, particularly, would be favorably affected, some bankers believed. However, Indianapolis Board of Trade members expressed themselves as “not so happy” over the decision. They had been awaiting it all morning, more or less apprehensively and nervously, and almost at the moment it was announced, their trading was suspended by the closing; of the ft

HOME EDITION PRICE THREE CENTS

Chicago Board of Trade by order of its president. Price Rise Forecast A reaction m the livestock market at the Indianapolis Union Stockyards was expected tomorrow by traders. It will follow, they said, the rise of the commodity market and will be in proportion to it. Today there was little or no reaction. Larger brokerage houses in Indianapolis were crowded with patrons, many of them smartly dressed women. There was much confusion due to differences in stories of the United Press and Associated Press. Board men, rushing up and down to chalk changes in prices, achieved the same brand of frenzy they had abandoned until now since the gorged markets of the pre-depres-sion period. Gov. Paul V. McNutt—The Supreme Court decision is very heartening and should be helpful toward speeding recovery. J. Dwight Peterson, President of City Securities Corp.—There is no doubt that the handing down of the decision will relieve uncertainty in investment markets and business generally, and consequently there will be more activity. It is a good thing that the ruling has been made. Interpreted as Rebuke State Senator Jacob Weiss, President pro Tern, of the Indiana Senate—The decision is a rebuke to all persons who would place property rights above human rights. Lieut. Gov. M. Clifford Townsend —The gold decision of the Supreme Court is an indorsement of the wisdom of the Congress and a victory for the New Deal. Arthur V. Brown, President of the Indiana National Bank and the Union Trust Cos. —I think the Supreme Court ruling upholding the government is the only way the mattqr could have been worked out. It is in keeping with what England and France have done with their own problems. Fred Dickson, President of the Indiana Trust Cos. —It is the only “out” the Supreme Court had. Ido not think the decision will affect business one way or another. The dollar will buy just as much now as it has in the last few months. Irving w. Lemaux, President of the Security. Trust Co.—l am glad the decision finally has been handed down. Building has been very materially held up the last two weeks pending the Supreme Court ruling.

ATTENTION, Pinochle Players! Entrants in The Times Championship Pinochlt Tournament will play in the following order: Tonight All entrants whose last names begin wtih the letters A to G. Tomorrow Night All entrants whose last names begin with the letters H to Q. Wednesday Night All entrants whose last names begin with the letters R to Z. The Time: 7:45 p. m. The Place: 10th floor, Columbia Club.