Indianapolis Times, Volume 46, Number 248, Indianapolis, Marion County, 25 February 1935 — Page 1
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MELLON WITHHELD DATA ON HOLDINGS, SECRETARY ADMITS ‘Huge Amount' of Fortune Invested in TaxExempt Securities Not Reported on Returns, Board Told. LAW REQUIRES SUCH INFORMATION Ex-Secretary Turned Over Securities to Brother While in Office, But Directed General Policies, Is Testimony. By t mil'll Press PITTSBURGH, Feb. 25.—A “huge amount” of Andrew W. Mellon’s 597.000.000 personal fortune is invested in taxfree securities, and the banker never reported them on his income tax returns, his confidential secretary testified today. H. M. Johnson, who told the Federal Board of Tax Appeals of the investments as the hearing continued on the government’s claim of $3,000,000 additional income taxes, did not disclose the exact amount of the exempt securities. Although Federal law requires a report of tax-exempt securities on the income tax return, Mr. Johnson said they
were not included in the reports prepared by Mr. Mellon’s staff for the government. “They are not taxable, so we don’t return them.” Mr. Johnson said as Robert H Jackson, government counsel, questioned him. Mr. Johnson said the securities were in municipal bonds and farm loan securities. Although Mr Mellon transferred his holdings to his brother Richard when he became Secretary of the Treasury in 1921. he continued to direct the general policies affecting them. Mr. Johnson said. Mr. Mellon’s direction continued during the 10 years he was in the Cabinet and the one year he was ambassador to the Court of St. James' where he used the transAtlantic telephone to determine important policies. Mr. Johnson said that Mr. Mellon’s direction was only general, as he was too busy with state affairs while in Washington to keep himself fully informed of his interests. “But matters of policy always were decided by him.” Mr. Johnson added, as Mr. Jackson questioned him. SHIP FIRM PAID HEAD BONUS OF 512.283.238 Senate Committee Told Grace Given Huge Sum in 14 Years. B* I mitrd Pee.a WASHINGTON. Feb. 25—Eugene G. Grace, president of the Bethlehem Steel and Shipbuilding Corporations. was shown today to have received $12,283,238 in bonuses from 1917 to 1931. Figures suomitted to the Senate Munitions Committee disclosed that the net income of the shipbuilding corporation from 1917 to 1934. after payment of taxes, amounted to slightly mote than 544.000.000. Wartime bonuses of the steel and shipbuilding executive totaled $3,869.765. VOTERS INDIFFERENT TO CHICAGO PRIMARY Quietest Election in City's History Expected Tomorrow. By Caited Pmi CHICAGO. Feb. 25.—Fewer than 400 009 voters are expected to go to Chicago polls tomorrow in the quiet est municipal primary in the city's history. The voters will select candida'cs for mayor, city treasurer and city clerk for the election Apnl 2. Appetites whetted for sensation have found nothing appealing in the 'business man” tactics of Mayor Edward J. Kelly. Democratic incumbent. and competitors for his office. Principal reason for the unprecedented apathy was the fact that renomination and re-election of Mayor Kelly is virtually conceded. even by Republicans. Pickets Stone Street Cars By l it' < Press WILKES-BARRE. Pa.. Feb 25 Warfare broke out anew in the anthracite strike today when pickets stoned three trolley cars. No one was injured seriously, though windows of the cars were smashed.
TODAY’S WEATHER
Hourly Temi -natures Ba. m 49 10 a. m 51 7a. m 49 li a. m 45 Ba. m 50 12 (Noon).. 42 9 a. m 50 1 p. m 34 Tomorrows sunrise. 6:23 a m. sunset. 5:33 p. m.
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VOLUME 46—NUMBER 248
FOES MENACE POLLUTION BILL Threatened Amendments Would Cripple Measure, View of Backers. Alarmed by last-minute opposition in the Senate, supporters of the anti-stream-pollution bill are preparing a strong stand against threatened amendments which would cripple the measure. Primarily public health legislation, the bill is designed to end poisoning of public waters that has continued unabated in Indiana for many years. More than 3000 miles of rivers and streams at present are practically open sewers, unsafe for swimming, dangerous to livestock and unfit for any form of fish or animal life. Misleading and inaccurate reports have been circulated among Senate members regarding tne purposes and powers of the measure, its backers say. The same selfish industrial interests that have successfully blocked adequate pollution legislation for many years in Indiana are seen behind the move to emasculate the present measure, its advocates charge. Believing that the bill, now on second reading in the Senate, will operate to the best interests of Indiana citizens, local medical societies. real estate boards, sportsmen's clubs, many agricultural bureaus, resort owners and other groups are asking that the bill be enacted in the form in which it passed the House by a large majority. The State Conservation Committee. representing 500 state sportsmen's groups with more than 60.000 members, met yesterday in Tl.t Indianapolis Athletic Club and pledged unqualified support of the bill in its present form. Virgil M. Simmons, Conservation Commission, urged immediate action to counteract the whispering campaign against the measure.
POSSE ON HEELS OF RAYMOND HAMILTON Desperado, Wounded, Fleeing for Oklahoma. By l niter! Perns CELINA. Tex. Feb. 25.—Raymond Hamilton, ranking public enemy of the Southwest, was in desperate flight from officers today. Himself wounded in the jaw. he was accompanied by a wounded companion and three farm vout,hs as r.nttages. Muddy roads hindered the fugitives and pursuers as Hamilton tried repeatedly to evade traps set by possemen and flee to Dallas. Ft. Worth or northward into Oklahoma. Hamilton and his companion , both were wounded when officers surprised them on the highway last night two miles north of McKinney. NRA REGROUPING MAY LINK SERVICE TRADES Greater Administrative Efficiency Is Object of Proposal By I nittd Press WASHINGTON. Feb. 25—" The butcher, the bakei and the candlestick maker” are to be grouped together under the retail code, according to plans being worked out today by NRA officials. Officials striving for greater administrative efficiency worked on plans to bring more than 3.000.000 service trades workers under one general code. At least nine coded 1 and many uncoded services would be included. Included in the amalgamation of codes would be barbers, beauticians, restaurant workers, dyers and cleaners. and others. The problem of code enforcement in those groups has been one of the most difficult of NRA administration.
Snow tonight with cold wave; lowest temperature 10 to 15; tomorrow fair and cold with slowly rising temperature by night.
Tragic Love of Sisters' Led to Death Plunge, Notes to Parents Bare
By United Press ROMFORD. England. Feb. 25.—Farewell letters written by two heartbroken American girls revealed today the story of their decision to follow their British aviator sweethearts in death by a plunge, hand in hand, from an air liner soaring over the English countryside. The letters were read at the inquest into the deaths of Jane and
Elizabeth du Bois, 20 and 23 years old, only daughters of Coert du Bois, American consul general at Naples. After their reading, over the formal protest of Franklin C. Gowen, of the American Consulate at London, the jury of eight men under Coroner C. E. Lewis returned a verdict of suicide while of unsound mind. Mr. du Bois, controlling himself with difficulty, testified how the girls left Naples for London the day after their sweethearts were killed in a flaming crash of a Royal Air Force seaplane over Sicily. Letters Tell Story But it was left for the letters to tell the story. They were read at the end of the inquest. Consul Gowen asked Coroner Lewis not to read them. There were two letters, one to du Bois, the other to the girls’ mother, who was unable to attend the inquest. Each girl wrote part of each letter, it was understood. The letter to the father read: “Dear Coert—We have never explained things to you as there has been so much doubt. “You have been kind to us. giving us much. Kindly forgive us this, as you must have felt a little of what we did when you heard of the flying boat cracking up.” Other Sister Finishes Letter There the handwriting changed as the other sister began: “Do you remember Charles (Flying Officer J. A. C. Forbes, to whom Jane became betrothed during a three week’s stay of four British seaplane giants at Naples) telling about the corridor? “The one before us seems pretty straight. Charles w’as engaged to another girl, but he was going to break it off. We would have been married this summer probably. There will never be any one else for me.' “Comfort mother with all your strength. I think she will feel it is right as we do. All our love. God bless you. "BETTY, "JANE.” The second letter was to the mother: “Mother Darling—Do not doubt we are with you now and always and with great love. “Please do not think we have done anything wicked, for we were given proof that a real exception had been made for us. “We went to St. Martin’s in the fields (the old London church just off Charing Cross) because they were to pray for Charles and Dick (Flight Lieut. Henry L. Beatty, with whom Elizabeth went in Naples) during the service. “No One Else on Earth” "They knew we had not been confirmed but they let us take communion and be absolved from our sins. The lesson was the parable on the laborers in the vineyard. “You must have known when you heard of that crash in Sicily that it would pull us over a line which never had been well enough defined for us. "This is the greatest trust we ever put in you. Forever. “Betty and Jane.” Denies “Raid” for Film Stars HOLLYWOOD. Feb. 25.—Emanuel Cohen, ousted vice president of Paramount Studios, today denied reports that he was planning a “raid” of the studios' top-ranking stars to form an independent film company.
Indiana Artists Termed *Local Color Painters ’ by Grant Wood; Sees Work as ‘Not Good Material’
BY JOHN THOMPSON Tirats SUIT Writer PADDING up and down his room in his stockinged feet, Grant Wood, the lowa Moses of American art, last night dismissed as "local color painters” the entire Indiana delegation to the art world. "Indiana painters are local colorists who try to paint what is typical of Indiana. Being impressionists, they are interested primarily in depicting how sunlight falls on the surface of objects. The objects themselves have little or no meaning, excepting as they provide a surface to catch the light,” said Mr. Wood. Here he paused and thrust a fist in the pocket pf his conservative
INDIANAPOLIS, MONDAY, FEBRUARY 25, 1935
Jane du Bois
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Elizabeth du Bois
FIGHT RENEWED ON S-NR A BILL Amended Measure Is Before Senate Committee. With a hearing scheduled for 7:30 tonight on the proposed State-NRA act, representatives of business today renewed their objection to the formation of a state code commission, said to be contemplated in the measure pending before Senate Judiciary B Committee. . William H. Book, executive vice president of the Indianapolis Chamber of Commerce, declared he is dissatisfied with proposed amendments to the Dyer bill, which has passed the House and which will be the basis of tonight's hearing. According to the best available information, the bill as now pending before the committee, provides for the appointment by the Governor of a four-member, bi-partisan state code commission. The principal duty of the commission, the bill declares, would be the conduct of hearings on applications of trades and industries for state codes. As at present drawn, the state commission would be powerless to receive code applications from any group which, at the time of filing the application, has in effect a national code approved by the President, containing both labor and trade practice provisions. All provisions relating to use of "loss leaders” and price-fixing, contained in the original Dyer measure, have been removed from the draft in possession of the Senate committee. KOOSIER SENATORS DEMANDJAS QUIZ VanNuys and Minton Act on State Request. By Times Special WASHINGTON, Feb. 25.—80th Senators Frederick VanNuys and Sherman Minton today presented to the United States Senate the Indiana legislative resolution asking for complete investigation of natural gas pipe lines and an alleged monopoly in the field of gas distribution. Senator Minton, as a member of the Interstate Commerce Committee, may seek further action, he has said. The resolution was adopted by the Indiana Legislature after it was prepared by members of the legislative committee investigating the natural gas industry of Marion County. It has been charged by Senator Gerald Nye (R., N. D.) that large interests in the industry have combined to form a monopoly in the region. First memorialization of the Senate came from the mayors of large Middle Western cities who gathered Jan. 28 in Columbus. 0.. and called for a thorough investigation into the entire industry.
gray pajamas. He tossed his tow head. “Indiana painters may have an adequate knowledge of their subject matter,” he said, "but they do no analyzing, no sifting, put no accent upon the significant. They are not regionalists.” He said that “typical” painting, such as is done by most Indiana artist, is ‘‘not good material.” He told of being threatened by a woman who called him shortly after his "American Gothic,” which depicts two rural figures, had been mistakenly published under the name of “lowa Farmer and His Wife.” The woman threatened to smash in his head. Mr. Wood explained that the figures were not typical lowans, but were regional characters.
LIQUOR, PRIMARY DISPUTES DELAY LEGISLATIVE MACHINERY; HOPE OF ADJOURNMENT THIS WEEK DASHED
COLD WAVE TO SWEEP MIDI DO CITY AREA Blizzard Is Expected to Reach Indianapolis by Nightfall. A blizzard and cold wave, swept by powerful west and northwest winds, is expected to reach Indianapolis today and push the temperatures down to 10 to 15 degrees above zero tonight. At 9 today the city was still enjoying the week-end warmth as the mercury stood at 50. Swept across the plains by howling gales, the blizzard was descending upon the city. J. H. Armington, local meteorologist, said that at any moment the calm winds here might whip themselves into a fury which will bring snow and bitter cold. By tomorrow night the blizzard is expected to push itself onward toward the East eoast and leave Indianapolis with fair weather. Transportation companies were making provisions to clear their routes when the blizzard does strike. Airlines are standing by cautiously before daring out into the skies which any moment may be laden with blinding snow. While there was still time before the storm breaks here, relief agencies were hastily making provisions to aid needy families fight against the chill. Yesterday the city enjoyed balmy spring-like weather with a high temperature of 59 ta 4 in the afternoon. The average was 45 degrees, ll&above normal.
BLAMES SABOTAGE FOR MACON CRASH Airship Builder Witness at House Hearing. By United Press WASHINGTON, Feb. 25.—Sabotage was responsible for the crash of the airship Macon, the House Patents Committee was told today by Roy W. Knabenshue, who described himself as an airship builder. Mr. Knabenshue declined to amplify his charges or say who he believed the responsible persons were. “I believe that if an investigation could be made of the wreckage of the Macon, it would be found that sabotage had something to do with the wreck, possibly sabotage while the ship was in flight,” Mr. Knabenshue said. He was asked if he believed any foreign government was involved. “I’d hesitate to say,” he replied. He said he had “too high regard” for American navy officers to believe they could have been responsible. FINANCING OF AUTOS SHOWS SHARP SPURT Retail Volume in January Rises 85 Per Cent Over 1934. By Times Special WASHINGTON, Feb. 25.—January dollar volume of retail financing of new passenger automobiles increased 85 per cent over January, 1934, and was 88 per cent above January, 1933, according to preliminary estimates by the Department of Commerce. VETERAN COLLECTOR OF CUSTOMS TRANSFERRED Clifford Pollock Leaves Cleveland for New Orleans Post. By United Press CLEVELAND. Feb. 25. —Clifford W. Pollock, Collector of Customs here, who is being transferred to New Orleans, is expected to reorganize the port of New Orleans. Twenty-seven years in the customs office here in various capacities, Pollock is recognized as the country’s outstanding authority on customs matters.
T TIS other famous painting, "Daughters of the Revolution,” shows three old ladies in formal positions, expressing the classicism which Mr. Wood feels is detrimental to the progress of American culture. This picture was recently bought by Edward G. Robinson, movie star, who said he got it to “preserve my sense of humor.” Mr. Wood feels that American provincialism is the thorn in the flesh of American painting. “In every w*ay but an economic one, we are still colonies of Europe,’’ he said, "and we must get back to the basic fundamentals in order to mold an original culture for our own country. “It is very clear that anew school is emerging from the dark-
Entered as Second-Class Matter ••• at Postoffice, Indianapolis, Ind.
Idle Army May March on Capital Mayors’ Conference Chief Hurls Threat; Warns Senate Rebels. By United Press WASHINGTON, Feb. 25.—A mobilization in Washington of work relief supporters “that will make the bonus army look like a Boy Scout parade” was threatened today by Paul V. Betters, director of the United States Conference of Mayors. Mr. Betters threw the support of his organization behind the Administration’s $4,880,000,000 work relief bill as the battle over the measure was carried to the country by both sides. Telegrams and mail to Senators began to reflect the effects of the drive for popular support for and against the huge work program. Administration leaders made no effort to bring the bill out from Senate committee again until they could judge better the nation’s reactions. “If the action of the Senate last week means the deathknell for the $4,000,000,000 work program,” Mr. Betters said. “It means sentencing 3,500,000 American citizens who want work instead of free groceries to a term of involuntary idleness. “I do not believe those members of the Senate who split on an amendment to the bill and thus forced the whole program back into committee will be willing to assume responsibility for the withholding of work and wages of these 3.500.000 people. When it is considered that 3,500,000 workers represent close to 15,000.000 dependent family members now on Federal relief, this congressional sentence is more severe and serious than any action taken by any government in the history of the world.” FREEDOM ON BA IMS SOUGHT BY KENNAMER Judge’s Son to Appeal Manslaughter Term of 25 Years. By United Press PAWNEE, Okla., Feb. 25. Phil Kennamer, 19, son of Federal District Judge Franklin E. Kennamer, hoped to be freed on $25,000 bond today. His attorneys perfected an appeal from a 25-year sentence. He was convicted of first degree manslaughter for killing John F. Gorrell Jr. ASKS S6OOO TO DIE IN CHAIAFOH BRUNO Needy War Veteran’s Plea Denied by Governor. By United Press TRENTON, N. J., Feb. 25.—Gov. Harold G. Hoffman today received a letter from a Brooklyn war veteran offering to take Bruno Richard Hauptmann’s place in the electric chair if the condemned murderer of the Lindbergh baby will pay $6(00. The letter purported to come from Stanley Prystup. CWA worker. The letter explained that Prystup desired the money to provide for his 14-year-old son and 12-year-old daughter. The family, the letter said, found great difficulty in existing on its sl2-a-week relief allowance. “The procedure you mention is not permissible under the laws of the State of New Jersey,” Gov. Hoffman replied to the writer. The letter, crudely written, expressed “no sympathy for Mr. Hauptmann,” but explained that the prisoner, now in the death cell of the prison here, “don’t need home relief.” Study Group to Meet The Y. W. C. A. Legislative Study Group will discuss “Unemployment Insurance” at a luncheon tomorrow in the Y. W. C. A.
ness of American art. There has been a distinct upward swing in the last month,” Mr. Wood predicted. "But we regionalists have been burdened with the responsibility for all subject matter art, and it really isn’t all our fault,” he said jovially. Regionals he defined as being “that painting which deals with subject matter that has been analyzed,' sifted and editorialized in terms of the painter's adequate personal experience with the subject matter.” It does not refer to a painter painting in a geographical location, Mr. Wood said, and cited the fact that Thomas Benton, a native Missourian, had painted some of his best work in other localities. %
Triple License System and Roadhouse Ban Prove Stumbling Blocks in Public Morals Committee. LEADERS DENY DEMOCRATIC SPLIT Election Measure Reported to Senate Without Recommendation; Attempts to Amend Certain to Be Made, Is Belief. Possibility of an adjournment this week dwindled today in the Indiana General Assembly. The liquor bill remained in the House public morals committee because of disagreement on two controversial features and a Senate fight over the direct primary bill was delayed. Adjournment sine die Friday or Saturday had been contemplated, but Gov. Paul V. McNutt and legislative lead rs were dubious today that such a move could be made, contingent on a special session later this year for enactment of the administration tax program. The House public morals committee met this morning in the office of Pleas Greenlee, the Governor’s executive secre-
VANNUYS FIRM FORPRIMARY Always for It, He Asserts in Statement Issued in Capital. By Times Special WASHINGTON, Feb. 25—Senator Frederick VanNuys is for any bill which will bring about complete return of the primary to Indiana. He made this announcement today when conflicting reports concerning his stand were brought from Indianapolis, where a primary restoration is causing a Democratic stalemate in the State Senate. “I have been for the primary in Indiana since it was first introduced in 1913,” Senator VanNuys said. “I opposed the repeal plan as set forth in both party platforms at the election and today I am for restoring both the governorship and United States Senator to the primary ballot. I have told several state Senators of this stand.” Although for the primary, Senator VanNuys was nominated in convention, the same convention nominated Gov. Paul V. McNutt and now they are at loggerheads fighting for political supremacy in Hoosier Democracy. One of the maneuvers is to try and consolidate the forces of R. Earl Peters, former Democratic state chairman and now state Federal housing director, with those of VanNuys! The latter's candidate for the Governorship is said to be E. Kirk McKinney, head of the Home Owners Loan Corp. in Indiana, a VanNuys appointee. This may or may not meet with favor of the Peters group. The point of unity would be the joint animosity toward the McNutt faction, now controlling the Democratic state organization. NEW TRIAL SOUGHT BY TRAIN CONDUCTOR Safety Board May Probe Police Car Crash. Morton Reid, conductor of an Indianapolis Union Railroad Cos. freight train, which on Feb. 14 hit a police car after the car had entered the tracks at Kentucky-av against a warning signal, today had on file a motion for anew trial. Mr. Reid was convicted by Municipal Judge Charles Karabell of having violated a city ordinance in the operation of the train which hit the police car. The police car was in command of Sergt. William Purcell, was driven by Patrolman Robert Smith and contained also Patrolman Fred Staggs as a passenger. Meanwhile, Chief Mike Morrissey said that the case was not closed, but that he had no further statement to make on it. Members o. the Safety Board said they would ask the chief for some report on the conduct of the police in the matter at the board’s meeting tomorrow. 1300 at Big Meeting J. Franklin Caveny, chalk artist, entertained approximately 1300 persons yesterday who attended the Y. M. C. A. Big Meeting at Keith’s Theater, Times Index Page Bridge 5 Broun 9 Comics 13 Crossword Puzzle '... 13 Curious World 13 Dionne Babies 3 Editorial 8 Financial ✓ 6 Hickman—Theaters 7 Junior Aviation 3 Napoleon’s Letters 9 Piano Lesson 4 Radio 11 Sports 10-11 State News 2 Woman's Pages ,^....4-5
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tary. It was reported there was a disagreement over the roadhouse prohibition and retail triple-license system in the present bill. Some of the objectors want a single license amendment in the bill and others are resentful over banishment of the roadhouse, as demanded by Gov. McNutt. One amendment to be made in the present bill, with administration approval, will be removal of the monopoly phase of the whisky wholesaler. The present provision calls for deposit of a SIO,OOO cash bond by the wholesaler. Such a requirement, it is claimed, would limit the wholesale liquor licenses to a few because not many prospective dealers could deplete their working capital to such an extent. Further Tax Cut Urged The provision will be changed to allow a surety bond. There also is a movement under way to reduce the $1 a gallon whisky tax to 50 cents, but that phase of the bill was not discussed in committee. The Albright-Webb primary bill came into the Senate this morning without recommendation, thereby delaying a fight on it until it is handed down for second reading, and amendment. The bill came out in its original form and provides for placing the nomination of all state officers and the United States Senator back in the primary. Pari-Mutuels in Danger An effort today was to be made in the House to indefinitely postpone a vote on the Black bill legalizing pari-mutuel betting on horse races. The attempt was to come when the bill was handed down for second reading. If concurred in, the move for indefinite postponement would kill the bill. Senator Elias C. Swihart (D, Elkhart), elections committee chairman, took the floor on a point of personal privilege when he handed in the committee report on the primary bill. He declared that the newspapers are to blame for making it appear that the bill Ls a wedge splitting the Democratic ranks. Dissension Is Denied "It was not the intention of the authors of this bill to split the party, but to provide for greater unity,” he declared. He asserted the newspapers are making it appear the bill is the bone of contention between party leaders, referring to the political differences of Gov. McNutt and United States Senator Frederick VanNuys. The Governor and administration leaders are reported opposed to the bill, but friends of Senator VanNuys are pushing it. Senator Swihart declared the bill could not be reported out of committee, except without recommendation because there was a committee disagreement on amendments. Police Bill Reported. The administration’s state police bill was reported out for passage. It provides for appointment of a bipartisan board to have general supervision over the force and establishes a merit system for appointments and promotions. The creation of a board has been bitterly opposed by A1 G. Feeney, state safety director, who claimed responsibility would be divided under such a plan. At the same time the Senate received a favorable report on the League of Women Voters’ personnel bill, which provides for the appointment of a personnel director to conduct merit civil service examinationa of all applicants for subordinate state positions. The liquor bill appeared today to be the chief obstacle to an early adjournment of the Assembly. Regardless of controversy over many features of the bill, there is a feeling among some party leaders that public opinion might not favor any action that savored of "jamming the bill through in a hurry.” It would be necessary to suspend the rules to get the bill through in time for adjournment Saturday as contemplated last week. Unless all controversy is settled, it is regarded unlikely that the Public Morals Committee even will report the bill in until tomorrow. r .
