Indianapolis Times, Volume 46, Number 243, Indianapolis, Marion County, 19 February 1935 — Page 3
FEB. 19, 1935
COURT LINES UP FIVE TO FOUR IN GOLD DECISIONS
Heated Minority Opinion Is Delivered by Justice Mcßeynolds. (Continued From Page Ons) ba'/'d standard.'' he said, ‘adopted with the definite purpose to destroy obligations. "The destruction of all obligations by reducing the standard gold dollar to one grain of gold, or brass or nickel or copper or lead will become an easy possibility. "Default is thus made both easy and safe. These bonds are held by men and women in many parts of the world; they have relied upon cur honor. ‘ Loss of reputation for honorable dealing will bring us unending humiliation." Denounces Treasury Profit Justice Mcßeynolds mentioned the Treasury's $2,000,000,000 gold seizure profit. In bitter language he denounced 4t. “To such counterfeit there would be no limit, with each new debasement of the dollar they would expand. “Two billions might be ballooned indefinitely—to twenty, thirty or what you will . . . maybe enough to cancel the public debt, maybe more.” And with tnat hot shot he left the New Deal to its victory’. Belief thut the court's decisions had impoK‘O upon thus and succeeding Almim.'trations a permanent policy of sequestering gold instead of permitting it to circulate was based upon the Liberty bond opinion. No Loss Established The court ruled that John M. Perry had not established that he had suffereo loss because his Liberty bonds are being retired in New Deal dollars, but held that if loss artuallv were sustained recourse could be had to the court of claims. Thus, if gold again were permitted to circulate years hence and maturing governing obligations were retired in devalued dollars, the bond owner would suffer. Mr. Perry s weakness was that if the government actually had paid him in gold he would not have been permitted to keep the metal. As an alternative, there only remains the present policy of a currency backed by a billion reserve, the gold backing of which may be varied to comply with varying commodity prices. Although Justice Mcßeynolds wrote the dissenting opinion concurred in by Associate Justices Van Devanter. Sutherland and Butler, it scarcely reflected the bitterness and passion which he put into his outline of the dissent, which went much farther than the printed record. Seek Danger Signals Justice Department officials are combing the opinions for danger signals to guide them if additional monetary legislation is needed. The definite commitment of the government to a permanent policy of a gold bullion reserve was based on the court's findings in the Liberty Bond cases. The court ruled there that the government could not break a contract made with its citizens to pay in gold. The opinion saved the government by hedging the question of just compensation for the taking of gold around with so many handicaps that suit to recover more than the face value of the certificate seemed impossible. Under the co ;rt s ruling the person suing would have o show to what extent he had been damaged. Not being allowed to hold gold coin, he could not show himself entitled to receive them in payment, the court found. He would also have to show that commodity prices at present were such that his currency dollar would buy him less than the gold dollar would have bought when he made his contract for gold payment. New Legislation Planned To guard against this situation, the Administration was reported planning new legislation to prevent the filing of suits on gold clause cases in the Court of Claims. Since the government can only be sued by its own consent, this would preclude danger of any future suits claiming actual damages being filed. Justice Mcßeynolds' opinion said in part: "Acquiesence in the decisions just announced 1 impossible; the circumstances demand statement of our views. To let oneself slide down the easy slope offered by the course of events and to dull one's mind against the extent of the danger . . that is precisely to fail in one's obligation of responsibility.” "Just men regard repudiation and spoliation of citizens by their sovereign with abhorrence; but we are asked to affirm that the Constitution has granted power to accomplish both. No definite delegation of such power exist; and we can not believe the farseetug framers who labored with hope of establishing justice and securing the blessing of liberty. Intended that the 'expected government should have the authority to annihilate its own obligations and destroy the very rights which they are endeavoring to protect. "Forecast Is Discredited" "Counsel for the government and railway companies asserted with emphasis that incalculable financial disaster would follow refusal to uphold. as authorized by the Constitution. impairment and repudiation of private obligations and public debts. Their forecast is discredited by manifest exaggeration. But. whatever may be the situation now confronting us. it is the outcome of attempts to destroy lawful undertakings by legislative action, and this we thmk the court should disapprove in no uncertain terms. "Under the challenged statutes it is said the United States realized profits amounting to $2 800.000.000 But this assumes that gain may He generated by legislative fiat. To such counterfeit profits there would be no limit; with each new debasement at the dollar they would expand. "Loss of reputation for honorable dealing will bring us unending humilmtkn.; the impending legal |oAugral ioacb appalling.'*
REPRESENTS BUTLER
EL
Eugene Fife Jr. Butler University will be represented in the 1935 invitational oratorical contest at the University of lowa March 1 and 2 by Eugene Fife Jr. Colleges and universities from all parts erf the country will 'participate.
POWELL FLAYED BY LEGISLATORS Senators, Irked by Editorial, Pour Their Wrath on Times Editor. (Continued From Page One) ing peop e disagree with them,” said Mr. Powell. ' The senators have as much right to speak out about The ' Times as we have to express our opinion of them. 'The present session has thus far been the most progressive and public spirited in the history 6f the state. If the senators want to take a little holiday to blow off steam about me instead of attending to | the citizen’s business I suppose they are entitled to do so. "While I do not concur with Senator Janes’ remarks about ‘yellow ! journalism' he is perfectly sound in saying that no editorial should make any difference in the consideration of sound legislation. We think the Nicholson bill is sound in principle. "Incidentally, is Senator Mcßride hired by the taxpayers to legislate for the people of Indiana or against the editor of The Indianapolis Times?” A Vote for Lawyers TO THE EDITOR. THE INDIANAPOLIS TIMES: I am deeply appreciative of the support which The Times has seen fit to give to me personally, and to the causes which I have espoused in the Indiana Legislature. The candor and liberality of The Times has undoubtedly done much toward enlightening public opinion on many issues. And so I find myself much j in the position of one who must take jan old friend to task, when I re|spectfully suggest that your editorial jof Feb. 18. anent the opposition to my • so-called "heart balm" bill, might easily give rise to an entirely false ' impression. The inference in this editorial is that opposition to the bill comes i from jcckleg lawyers, greedy for fees. Asa matter of fact, 19 atI tomeys in the House supported the bill, and in the Senate, where the measure is still pending, the only criticism I have encountered has been conscientious and constructive. Senator Janes, Smith. Carlson i and Wade have in particular put much time and thought on the bill, and I feel confident that when the bill passes the Senate, it will have profited from the meritorious suggestions made in the Senate. Not only in connection with this particular measure, but in all types of legislation. I have considered the attitude of the attorneys most fair and helpful, and I feel that the Indiana Bar can justly be proud of its representation in the General Assembly of 1935. ROBERTA WEST NICHOLSON.
'UPSIDE-DOWN' GIRL TIRES OF ICE CREAM ■ Delicacy Has Been Her Only . Food for Months. By United Press FALL RIVER. Mass., Feb. 19. Alvee Jane McHenry, a little girl who no longer likes ice cream, lay in Truesdale Hospital today, confident that the mission for which she traveled from her Omaha tNeb.i home | —a delicate operation on her up-side-down stomach —would be suci cessful. When she was 3 Alyce suffered a diaphragmatic hernia as result of an unusual muscle strain which turned her stomach upside down, pushed her heart across her chest to the right side and practically destroyed her left lung. She is now 10. She has suffered extreme pain and has been on an ice cream diet. She wants to be operated on immediately so she won't have to eat any more ice cream. The operation is to be performed by Dr. Philemon Truesdale. superintendent and founder of the Hospital which bears his name. WOMAN WARDEN LOSES JOB DUETO BREAK Recommendation of Probers Accepted by Oklahoma Governor. : By United Press OKLAHOMA CITY. Feb. 19 The nation's only woman warden of a prison will lose her job to a man. probably today, because the State Board of Affairs believes the office is "no place for a woman.” Gov. E. W. Marland accepted the board's recommendations that he remove Mrs. George A- Waters, warden at Granite Refonnatory. | Succeeding her husband who died, she has been warden there for seven years. Her successor will be a veteran sheriff. Fred Hunt of Tishomingo. if the Senate approves. Latent complaints against Mrs. Waters' administration came to a head Sunday when more than a score of convicts broke from their I cells in the prison, killed *a guard, and escaped.
2000 MANUAL ALUMNI JOIN N BIRTHDAY FETE ‘March of Time’ Pageant Is One of Features at Celebration. (Continued From Page One) • the impressive “March of Time at Manual” pageant and the graceful style show of graduation dresses from 1895 to 1934 and concluded the night by dancilig in the gymnasiufti. Couples hand in hand peer delightedly in old olassrooms where they once had exchanged notes, and recognized with some awe those same initials they had secretly carved on a desk years ago. Wear Gay Paper Caps The majority of graduates wore gay red and white paper caps. Many an oldtimer pumped the h#nd of a former classmate he ha'd not I seen for more than a passing word I for a decade. The lunchroom was decorated with class colors and the banners of the many societies that once flourished at Manual. The alumni were surprised and delighted with a special tabloid Manual edition of The Indianapolis Times, which was circulated during the dinner The papers were carefully folded and put away as another momenta of the school. Os particular interest to the graduates was tiie collection of paintings and art work created by Manual alumni hanging in the corridor outside the art classrooms. The work included those of many famed Indiana artists who learned their early teachings under Otto Stark, famed former hpad of the art department at Manual. Mueller Opens Program The program was opened by Otto N. Mueller, architect and alumni association president, who introduced the speakers. To the left on the stage was a large oil painting of Charles E. Emmerich, beloved first principal at Manual, and it the right was a huge birthday cake with 40 lighted candles. Bert Kelly, an alumnus, led the audience, which jammed into the auditorium and stood pressed against the walls, in a rousing "Happy Birthday to You.” Paul C. Stetson, city school superintendent, in his address declared: "The product of this school more than justifies the faith we have always had in Manual. You are all graduates of no mean school.”
Oil Painting Presented James I. Martin, representing the Negro alumni, presented Manual with an oil painting by John W. Hardrick, Negro painter and Manual graduate. White-haired John Dyer, valedictorian of the class of 1{597, gave the same address that he presented in ceremonies the year of his graduation. The auditorium echoed with the booming shouts of “Rickety-ax,” an old school yell and with a mocking song aimed at Shortridge High School, “You’ll be a big boy, maybe. Eat a pot of mush.” In a brief, simply worded address Principal E. H. Kemper McComb said: “The things that you believe has made Manual what it is are the ideals we are holding up now. You may be assured that Manual is keeping abreast of the times.” Six scenes, representing important events in the 40-year history of Manual w’ere presented in the “March of Time,” written by Mrs. Ada M. Bing. Manual English teacher. Included in the names listed in 'The Hall of Fame” were Roy W. Howard, chairman of the board of the Scripps-Howard newspapers ancl president of The Indianapolis Times; Norman E. Isaacs, Times new’s editor; Eddie Ash, Times sports editor, and Dick Miller, Times golf writer. Pageant Depicts Progress The pageant was concluded by “A Toast to Manual.” W’ritten by Miss Lola I. Perkins of the faculty and spoken by a school cHbral group. Graceful young women, some of them pupils and some of them graduates, modeled gradQation dresses worn every year from 1895 t£> 1934. Mr. McComb was presented with bouquets of flowers from Arsenal Technical High School and from the faculty. Amongt the graduates who came a great distance to be present at the ceremonies were Mrs. Phyrne Clayborne Tanner. San Antonio. Mrs. Margaret Caneer Coffey, Muskegon. Okla., and James Crawford, Detroit, chief engineer for Chevrolet, and his wife. Victor R. Jose Jr. was elected president of the association to succeed Mr. Mueller. Other new officers are Mrs. Bessie Sherman Lovez. vice-president; Miss Anna J. Schaefer, secretary, and Mr. McComb, treasurer ex-officio. The new executive committeemen are Francis Mulbarger, Arthur Madison. Mrs. Grace Deupress Nackenhorst and Mrs. Lillian King Hanske. Noted Philanthropists Dead ASHTABULA. 0.. Feb. 19—R. H. Pfaff. pioneer Ashtabula manufacturer and widely known philanthropist. died at his home here today of pneumonia. He was 83. , ijtowxtq..., offiiKAirr, Sfc9MjPAILVJ 0J COMPLETE WITH A substantial srrvine of really fine fi’od . . . rrepared in The Seville's spotless kitchens. For full enjnvment and value, our Tjwne Dinner has no equal.
THE INDIANAPOLIS TIMES
SPEAKS FOR DISSENTERS
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Justice James C. Mcßeynolds By United Press WASHINGTON, Feb. 19—The bitter words with which Justice James C. Mcßeynolds denounced the findings of five of his colleagues in the Supreme Court gold cases are lost to posterity. The choicest bits of Justice McReynolds' spoken dissent, described by one congressional inflationist observer as a "political speech,” did not appear in the printed opinion. Since there is no appeal from the court, no stenographic record is ever kept of arguments or the words of the members of the court. Justice Mcßeynolds’ speech was recorded only in the ears of fiis listeners and the hastily penciled notes of newspaper reporters.
S-NRA URGED BY FUEL AUTHORITY 5-Cent Hourly Wage Paid Haulers Is Cited by Code Chief. Five cents an hour! This is one of the low’ wages paid in Indiana’s industry which it is hoped will be ended with the passage of a State-NRA bill now pending in the Senate Judiciary B committee. The measure, backed by 25 coded industries in the state which employ 300,000 ’workers, is termed an efficient exterminator of oppressive low wages. C. A. Howe, executive secretary of the Indiana Retail Solid Fuel Code Authority, urges passage of S-NRA in a letter to the bill’s author, Rep. J. Napier Dyer (D., Vincennes). "Our code is protection to the small coal merchant and the consumer Due to lack of enforcement, this code has only been partially effective. It is our understanding that H. B. 46 will make it possible to obtain enforcement for the reason that it enables state courts to act on intra-state business. With only a limited amount of enforcement this code has done much to stabilize the industry and enable merchants to pay living wages,” Mr. Howe wrote. , "The so-called continued Mr. Howe, "usually pays low wages. We have filed charges against this type wages were as low at 5 cent per hour. We have had cases where truckers have worked their drivers as many as 26 hours continuously hauling coal and have paid the drivers $1 for this service.” WAR SOCIETY FOUNDED BY lOWA U. STUDENTS Dictatorships Are Held Solution to World's Problems. Ity United Press lOWA CITY. la., Feb. 19.—Dictatorship is the only solution for the complex problems of modern civilization, in the opinion of a "league for the promotion of war,” which was organized today at the University of lowa. The league was created by students whose sentiments are opposed to another group here which is advocating world peace.
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PHIL KENNAMER GOES ON STAND; CALM WITNESS
Makes Good Showing; Claims He Is Rational Despite Psychiatrists. By United Press PAWNEE, Okla., Feb. IP.—Pleased with his good showing as star witness of his own murder trial defense, Phil Kennamer, 19-year-old Federal jurist s son, showed renewed interest today as the state offered rebuttal testimony. Holly Anderson, county prosecutor, had nearly 50 witnesses in reserve and with their testimony hoped to shatter the twin plea of the defense that young Kennamer killed John F. Gorrell Jr., in self defense and that he also was insane. A motive for the slaying will be developed today Mr. Anderson said. Kennamer, on cross examination, refused to abide by the findings of his own psychiatrists. He said he was rational and knew right from wrong. The idea of his being insane has been repellent to Kennamer since it first was broached by his father, Federal Judge Franklin E. Kennamer, and A. Flint Moss, his chief counsel. Kennamer, a cool witness, covered the events immediately preceeding t.he slaying, which occurred last Thanksgiving Day. He denied he ever mentioned kidnaping Miss Virginia Wilcox, daughter of a Tulsa millionaire, and swore he had been iii love with her since their first date four years ago. "Do you still love her?” counsel asked. "Yes, I do,” he replied. It was a desire to protect Miss Wilcox, Kenndmer said, that caused him to slay Gorrell, a young dental student, who, he said, planned to demand $20,000 from her father, H. F. Wilcox, and threatened to kidnap her if the sum was not paid. The sobs of the slain youth’s mother could be heard throughout Kennamer's recital. Miss Wilcox, from a seat on the front row, was interested but unmoved.
MERIT BILL IS GIVENSENATE Measure Would Establish Rigid Control of State Employes. * Establishment of a strict merit system for the appointment of Indiana state employes is provided in a bill introduced today in the Senate by Senator Ward G. Biddle (D., Bloomington), with the backing of the Indiana League of Women Voters. The bill in all essential details corresponds with the recommendations made to Gov. Paul V. McNutt by his committee on governmental economy made public last week. The League of women Voters’ bill calls for the appointment in the state executive department of a three-member personnel board to serve for staggered terms of three years, and, after competitive tests, the selection of a personnel director. Pointing out that the state is one of the largest employers of labor, and that 28 per cent of the total public xpenditures in 1930-31 went for persona! service, the league declared in a memorandum in support of the measure, that any private employer who spent half this sum would provide as a matter of course some system of recruiting and training employes. Inauguration of a personnel merit system has been advocated for State Police and penal institution employes by The Indianapolis Times. Ten states and 350 cities in this country now are using some sort of merit system in selecting employes for the public service, the Senators were told.
MELLON BATTLES WITH GOVERNMENT
JHBL
Andrew Mellon, former Secretary of the Treasury, is shown above in court at Pittsburgh, as he began his skirmish with the Federal government which claims he owes $3,000,000 in income tax and penalties for 1931. Mellon’s attorneys contend not only that he owes the government nothing, but that the government should give him a refund of $139,045 which they claim he overpaid. The hearing is being held before a subcommittee of the Board of Tax Appeals.
Demand Alone Controls Price, Gas Probe Told Columbia Official Ridicules Possibility of Marketing Profitably at Low Prices Hitherto Mentioned. The Indianapolis gas rates of the future solely are dependent on the amount of development of the gas business possibilities here, Paul G. Miller, Indiana manager for Columbia Gas and Electric Corp., testified today before the joint legislative natural gas investigating committee of the General Assembly,
Mr. Miller, resident of Pendleton and Indiana, manager of the Indiana Gas Transmission Corp., Columbia subsidiary, testified that maintenance of a peak load is the factor which would determine rates, if natural gas is introduced in Indianapolis. This peak load, he said, can be developed in varying degrees by the extension of the service to manufacing firms. Columbia Gas and Electric is ready to sell natural gas to Indianapolis at any time it is sought, he said, but rates would be dependent on the development of the business. "However, it is perfectly ridiculous,” Mr. Miller said, “to fix an estimate of 52 cents a thousand cubic feet, which has been mentioned in the newspapers. Such a figure is unfair to the city, if it acquires the Citizens Gas Cos. because the consumers immediately will expect that price. There is a tremendous market here for natural gas, but it must be built up.” Won’t Comment on Evidence Mr. Miller denied emphatically that any "division of territory” arrangement exists, whereby other companies than Columbia have agreed to stay out of the Indianapolis market. Such an agreement has been charged by other witnesses before the legislative probers in an effort to show that a natural gas monopoly among the large gassupplying coporations is keeping rates up in Indianapolis. He was asked if he knew whether such testimony had been in the Wilmington (Del.) receivership proceedings for the Missouri-Kan-sas Pipeline Cos. Mr Miller replied that he did not beueve he could comment on the evidence with propriety, but when pressed, said he “could not imagine” Columbia executives making such a statement. The witness admitted that an agreement exists between Kentucky Natural Gas Cos. and Columbia Gas and Electric whereby each may buy gas from the other, but he explained that such an agreement contains no contract price on the Indianapolis market, if and when obtained, and declared the agreement would not affect the rates ultimately charged. Parish May Be Called Mr. Miller testified that: Columbia Gas and Electric owns "absolutely no interest” in the Citizens
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Gfcs Cos. common stock; had no interest in the attempts of the Kentucky Natural Gas and Indiana Gas Service Corp. attempts to come into Indianapolis in 1931 and 1933; has no interest in the Users Gas Cos.; does not know who are the Users’ backers; that he is not thoroughly familiar with the Terre Haute situation and could not comment on whether the 18 cents charged there is reasonable or exhorbitant. He testified further that he believed the approximate rate at which his company supplies Muncie with 1,000.000 cubic feet a month is 32 cents and that the approximate rate at which Pendleton is supplied is 50 cents a thousand cubic feet. Farced to because of the Legislature's convening, the committee decide to recall Mr. Miller for further questioning at 5 p. m. today. Frank Parish, former head of the Missouri-Kansas Company, who has charged Columbia Gas with manipulating a natural gas combine, listened to the testimony. He also may be called later today. 3 OF FAMILY KILLED BY COAL GAS FUMES Grandfather and Two Children Are Victims; Five Overcome. By United Press AURORA, 111., Feb. 19.—Three members of a family were asphyxiated and five others overcome yesterday by coal gas from a kitchen range. The dead were W. W. Markham, 67, and his two grandchildren, Russell Markham Jr., 2, and Leonard, 9 months. Russell Markham, 27; his 26-year-old wife, Violet, and their three other children were made unconscious by the gas. Neighbprs rescued them. Aged Woman Dies By Times Special BLOOMINGTON. Feb. 19. Funeral services for Mrs. Alice Irene Stockwell, who died Fridajf night in her home here, were held yesterday afternoon in the Nazarene Church, of which she was a member, with the Rev. L. C. Davis officiating. Mrs. Stockwell was 79.
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MELLON DEALS UNDER SCRUTINY AT TAX TRIAL Intricacies of Transactions to Be Bared for U. S. Probers. By United Press PITTSBURGH. Feb. 19.— The intricacies of Andrew w. Mellon's financial transactions and widespread holdings were to be bared here today for governmental here today for governmental scrutiny in an effort to prove the government has no claim against his 1931 income. Truckloads of records were ready to be hauled to the special session before the Beard of Tax Appeals, which is hearing the government s suit for $3,000,000 against the former Secretary of the Treasury. That amount. Atty. Gen. Homer S. Cummings claims, is due from 1931. Mr. Mellon, on the other hand, insists that the government owes him a refund for that year. Frank J. Hogan, prominent Washington attorney, spent most of yesterday in outlining how the Mellon family "unselfishly built the very foundations of Pittsburgh, and Mr. Mellon himself was ever ready to answer the call of his country in time of need.” Reasons Are Outlined Such a man, Mr. Hogan declared, "could scarcely be suspected to deliberately conceal true facts from that government which he loves and has served so well.” Government attorneys, headed by Robert H. Jackson and F. R. Shearer, outlined reasons for their huge claim. They said many of Mr. Mellon’s stock sales were “not sales in substance” but transfers of holdings within his own family in order to evade the taxes. "Some of his securities,” Mr. Jackson said, "came right back to him after 30 and others passed right on to a family corporation he had created for toe purpose of receiving them. Probe Mystery Account "He never parted with control of his stocks, nor lost to himself any benefit from their ownership. He went through the elaborate forms of sale, it is true, but they were lifeless formalities to create a record on which he could claim the privilege of exemption from tax.” Mr. Mellon has charged that the present proceedings are part of a "political persecution” campaign against him. Mr. Mellon’s income during the period he was Secretary of the Treasury was more than SICO,000,000, it was shown at the hearing, and during those years he paid income taxes of $12,423,796. The government was expected today to delve into mysterious “account number 48" carried with a brokerage house under the name of H. M. Johnson, Mr. Mellon’s confidential secretary. U. S. TO LOAN ST. CAR FIRM HERE _s3, 120,000 Ickes Approves Advance for Improvement to System. By Vn ited Press WASHINGTON. Feb. 19.—An allotment of $3,120,000 for rehabilitation and modernization of the Indianapolis transportation system was announced today by Public Works Administrator Harold L. Ickes. The allotment is for a loan to the Indianapolis Railways, Inc. The company will use the money for rehabilitating its street car system, purchase of busses and trackless trolley cars and building anew central shop building to be used for equipment repairs and a garage for busses. The loan is to be secured by 5 per cent first and second mortgage bonds to be repaid between 1936 and 1955.