Indianapolis Times, Volume 47, Number 26, Indianapolis, Marion County, 10 April 1935 — Page 3

APRIL 10, 1935

‘GHOST TOWNS’ ARE RESULT OF OIL, GAS ORGIES Panhandle Scene of Many a Deserted Village, Victims of Waste. Til# !n4lan>ftlif Tim#* r#cntlT int Vln'#nt Lron* Financial Editor, to th# ttonthw#t to look or#r th# T** Panhandl# raa flld. Impr#ion and information rain'd a a roaolt of the trio ■r, told in a *ri# f aix articloa. of which thla la th# #cond. BV VINCENT LYONS Timra Financial Editor There Is a certain segment of society which flits from one part of tne country to another in quest of oil. Consequently, Prof. Gould's discovery of gas in the Texas Panhandle stirred them; not that they were interested in gas. but because oil usually Is associated in the same general territory as gas. It was on thus premise that this nomadic fraternity treked to the scene. Oil can be pulled out of the ground as quickly as one wishes and stored away in giant tanks. Gas must wait on markets. The reserve must be kept in the earth until demand picks up. Asa result, one sees many ghost towns—raucous, hell raising communities when oil was king but now skeletons of prosperity since the territory has petered out. For instance. Borger. in the northern part of Texas, once had the largest industrial pay roll in the entire state. Today it is merely a shadow of th# boom days. Despite this, the merchants display an urge to go forward which Is exemplified by a sign In a barber's shop which reads: ‘24 years a barber and the razor still sharp.” How 6666 Got Its Name Another interesting bit of Southwestern lore has to do with the manner in which the 6666 Ranch was named The legend is that many years ago a heated poker game was in progress and betting between two parties progressed to the point where one got cut of cash In order to "call” he put up his ranch and lost. The winner raked in the pot with four sixes. Hence the land, which covers 107,520 acres, was given the name of the 6666 Ranch. Ghost towns are created in oil fields because of the alacrity with which prospectors come running to participate in the promised riches Derricks are erected so rapidly that within a comparatively short time the section is transformed from a wrildeimess into a veritable forest. Soon the land is sucked dry of oil, the population moves on and a quickly improvised city becomes a ghost town. With gas the situation is quite different. The economic factors involved in getting the product to market work against the little fellow. The large gas companies like to follow the practice of purchasing en entire section of 640 acres in a gas producing territory and erect one well to withdraw' all the available gas in that area.

Indiana Had Its Flare This, however, does not mean that there has been little money lost in gas. In the latter part of the 19th century, many Hoosiers will recall, this state was involved in considerable activity along these lines as the result of the discovery of gas. Immediately, the customary fanfare and wild hopes were nurtured. To attract industry to the section businesses were offered free gas if they would locate there. If you were a homeowner you got all the gas you could use for SI. Gas was so plentiful, and so cheap, that if it got too warm in the house some people would open the windows rather than reduce the volume of gas used. Indianapolis benefited by being connected with the field. Within a short time the area pestered out. The dramatic rise and fall of the production from the McKeesport gas nool is known in a most painful way to a great many people living in the Pittsburgh districtpainful because the rapid decline in the production of that field soon made worthless the great majority of securities which had been peddled far and wide in the early days of the gas boom. Discovered in April, 1919 A brief history of that venture is contained in the topographic and geologic atlas of Pennsylvania prepared for the Pennsylvania Geological Survey. The McKeesport pool was discovered in April. 1919. The third well in the field was drilled in August of that year and yielded an initial production of 4.000.000 cubic feet. Production continued to increase until Sept. 24 when a maximum of 56,117.000 cubic feet was reached. “Contracted for at a price of 17 cents a 1000 cubic feet, the production from this well represented a daily income to the owners of about $8,500,000.” the study says. “One day's production repaid the entire cost of the well. Is it any wonder that thousands of people residing in the Pittsburgh district and struggling to make a bare living were tempted to invest their savings in other companies w hich sprang up overnight and which professed to have leases within stone's throw of the big well?” Just Like All Bubbles The gullible continued to invest in McKeesport stocks and more companies were incorporated and more contracts let for the drilling of wells. By the middle of January, 1920. more than 600 wells had been contracted for and more than 1000 wells were contemplated. The number of wells drilled becomes alarming when it is considered that the total area of sand production in the field was only 864 acres. But. like all bubbles, it burst. The Geological Survey, placing an average figure of $20,000 upon each well drilled, declares that at least 513,000 000 was spent on this activity during the boom in the McKeesport field. The gas obtained was sold at an average of 15 cents a 1000 cublic feet. At that price the field has produced gas worth approximately $3,150,000. It is doubtful, the authority concludes, if the total value of the gas produced will ever reach $3300,000. Thus, the loss in this field alone may be calculated at $9300,000.

I. A. C. WOMEN CAPTURE CITY VOLLEY BALL CHAMPIONSHIP

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Left to Right—Mrs. Floyd Fisher, Mrs. E. W. Berger, Mrs. W. H. Jarrett, Mrs. J. W. Geller, N. P Teany, coach; Mrs. Earl D. Baker and Mrs. Elmer Holtgren. m The Indianapolis Athletic Club's women's volley ball team won the city championship in a round robin played at Brookside Community House. The tournament ended with the I. A. C. and Brookside teams tied, with three games won and one lost. each. The playoff resulted in I. A. C. winning, 16 to 14.

BUTLER LIKELY TO GET 0. K. Favorable Report by North Central Probers Is Expected. It was the general opinion of But- . ler University officials today that the school would not be ousted from the North Central Association of | Secondary Schools and Colleges when that organization meets for its annual conference at the Stevens Hotel in Chicago tomorrow, Friday and Saturday. A survey of Butler academic and financial conditions completed last week by three representatives of the North Central Association ended a three-vear probationary period for the North Side school. Butler's President James W. Putnam. left early this week to attend the Chicago conference, where the Association Board of Review', headed by George A. Works, Chicago University dean, will pass on the Butler situation tomorrow’. Their decision, submitted to the general assemb’y of the North Central group xrobably will be final. Irked Dy Butler's lopsided financial condition caused by heavy investments in an athletic plant, tne North Central Association dropped Butler from the accredited list several years ago but reinstated the school shortly before the late Walter Scott Athearn became president. Mr. Athearn claimed that it was through his influence with the association that the school was reaccredited. WAYNE TOWNSHIP IS SUED FOR $15,419.13 City School Board Asks Funds for Tuition Claims. A mandate suit to require Wayne Township officials to levy $15,419.13 additional taxes to pay pupil transportation and tuition claims due Indianapolis school commissioners was pending today in Superior Court, Room 1. The school commissioners claim Wayne Township has paid only $16,000 of a judgment, returned in 1931. and that officials have failed to raise the necessary funds in their budgets. RAIL OFFICIAL TO TALK Advertising Club to Hear Discussion by Chicago Man. Henry Frier, assistant advertising manager of the Chicago Sc Northwestern Railroad, will speak on “What’s New in Transportation Advertising"” tomorrow at the luncheon of fie Advertising Club of Indianapo’is at the Columbia Club. Junior Mechanics to Give Party Capital City Council No. 38, Junior Order of United American Mechanics, will hold a euchre party at 8:30 vonight in the hall at llth-st and College -av.

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LIBRARIAN PUZZLED, SO IS SCHOOL BOARD; WHO WOULDN’T BE?

Luther L. Dickerson, city librarian, didn’t know what to do. Last night he asked the Indianapolis Board of School Commissioners. They didn't know what to do. Mr. Dickerson had a letter from \ Chicago w’oman, addressed to "Lew "Wallace, Public Library, Indianapolis, Please Forward.” The sender said she was starting an autograph collection and asked Gen. Wallace please to sign his name and return to her. Mr. Dickerson would welcome suggestions. Gen. Wallace died in 1905.

GUARD CHIEF NAMED FOR SCOTTISH RITE Carl A. Ploch Is Chosen to High Post. The appointment of Carl A. Ploch, 545 E. 58st-st, as captain of the guard in the lodge of perfection, governing body of the Scottish Rite, was announced today by Paul E. Fisher, thrice potent master. Mr. Ploch will succeed Hallie A. Mitchell. Mr. Ploch is most illustrious grand master of the grand council, Royal and Select Masons of Indiana, and is past high priest of Prather Chapter No. 157 and past illustrious master of Prather Council No. 100. He is a member of Raper commandery and Indiana council of annointed high priests. The 17th and 18th degrees were to be conferred this afternoon on the spring convocation classes. Officers of the Indiana Consistory will take charge of the class tonight. The 20t.h degree will be conferred by a large class headed by Clifford L. Harrod. POLICE ARE FIRED ON IN STOLEN CAR CHASE One of Two Negro Youths Captured After Abandoning Auto. Fearing they would be caught driving a stolen car early this morning, two Negro youths jumped from the car while it was speeding on Parker-av and abandoned it to run wild on several iawms. One of the youths ran between houses and fired four shots at Sergt. Edwin Kruse and Patrolmen John Sullivan and Elmer Thompson. who returned the fire. The youth fired again and disappeared. His companion, captured by Sergt. Kruse, gave his name as Wallace Jones, Covington, Ky. He was slaced for vagrancy. 100 Drown in Chinese Flood By United Press LONDON. April 10.—Approximately 100 persons drowned when the North River flooded the Chinese town of Yingtak, 80 miles above Canton, the Exchange Telegraph Canton correspondent reported today.

THE INDIANAPOLIS TIMES

6 ARE ACCUSED OF HUGE FRAUD

Former Trustees System Officials Indicted; Loss 30 Millions. Byr United Press CHICAGO, April 10.—A Federal Grand Jury today indicted six officials of the defunct Trustees System on charges of engineering a $30,000,000 mail fraud in which thousands of Midwest investors were victims. The criminal fraud charges, like those brought against Samuel Insull and Frank (Boy Wizard) Parish, followed ten-figure flights into the realm of high finance which crashed during the depression. Those indicted were: J. C. Corcoran,-51, founder of the small-loan chain which operated in 10 Middle Western states before it went into receivership on Oct. 28, 1932. Dennis J. Corcoran, 46, his brother and a director of the company, as well as vice president of the Trustees System Service Corp., holding oompany for the affiliates. Frank J. Gibbons, 51, president of the Service Corporation. Frank J. Nicholson, 45, auditor of all companies in the network. L. J. Medinah, general sales manager. Jacob C. Born, 54, of Birmingham, Ala., director of the holding company and secretary-treasurer of trustees system. City Branch Reorganized The men under indictment were officials of the Trustees System Service Corp., the holding company of all the subsidiaries. The holding company owned the common stock in the branch firms. When the network crashed in 1932 the Indianapolis branch, the Trustees System Finance Cos., went into receivership and was reorganized as an independent company in the court of Mayor John W. Kern, then a Superior judge. The local company began operations here again in 1934 after the shareholders’ committee reorganization had been approved by Kern. Indianapolis and Baltimore are the only two branch offices which are again in operation, it was said here. COLLEGIANS IN CONTEST Indiana Central Students to Compete in Poetry Festival. Indiana Central College speech students will take part in the annual poetry speaking festival Friday night in Kepliart Memorial auditorium, it was announced today by Miss Leora Weimar, speech department head. "Music of Poetry and Poetry of Music” will be the theme.

BE SAFE AND SAVE ... AT ,1/4t peR M,lE ' ROUND TR,P Four million passengers rode COMPARE the intemrban lines in 1934 j nterur ban fares , without one fatality. And the with automobile costs interurban fare is cheaper than POUS driving. Be safe and save at To Ont Romd 1/ ® , Way Trip 1 Vic a mile, round trip. Louisriiie $2 34 $3 51 Ft. Wayne 2.47 3-71 INDIANA I Terre Htutc 144 2.16 I Richmond 1.3/ 2.06 RAILROAD SYSTEM MfjpM

WARD CANADAY, HOUSING CHIEF, TO SPEAK HERE

Assistant Administrator of U. S. to Talk at Home Show. Ward M Canaday. assistant to the administrator of the Federal Housing Adinhnistration, will come here from Washington Friday to assist FHA officials in the observance of Better Housing day at the Indianapolis Home Complete Exposition. Mr. Canaday is a native of Newcastle, ‘ Ind., and was engaged in business there for a number of years. He is known as a business prophet because of his early advocacy of the time payment purchase plan and the character loan. Gov. Paul V. McNutt will introduce Mr. canaday at a luncheon at the exposition Friday, other guests at the luncheon will be Mayor John W. Kern, Henry B. Steeg, city engineer; Walter C. Boetcher, city controller; William F. Hurd, city building commissioner; Indianapolis Federal agency heads, FHA chairmen for 34 Indiana counties, and leaders of the building trades and other local industries. Mr. Canaday’s address will be broadcast over station WFBM at 1:30 p. m. Garden Clubs Honored The exposition today honored the garden clubs of Indianapolis who co-operated with the Marion County 4-H Clubs, Girl Scouts, Camp Fire Girls and the Park Board in arranging the lawns and gardens around the model house. Miss Mary Louise Carmichael, Muncie, president of the state Federation of Garden clubs, and Miss Marcella Hayes, Muncie, the federation's corresponding secretary, were guests of honor. Mrs. Rex P. Young, secretary of the Indianapolis Garden Clubs was to direct a choral ensem-; ble of the Indianapolis Matinee Musicale. Mr. Canaday will be the principal speaker at a meeting at 2:30 Friday I afternoon in the FHA headquarters on the eighth floor of the Electric | Building, which until recently was' known as the Continental Building. R. Earl Peters, state FHA director, will preside and members of the FHA advisory committee, city and county chairmen and members of the Construction League of Indian- 1 apolis will attend. 10,000 Visit Exposition More than 10,000 persons were estimated to have attended the show yesterday, according to Walter L. Stace, assistant director, and the doors were kept open until 11, an hour later than usual, in order to accommodate the Ion! line of visitors waiting to enter. The bi-monthly dinner of the Indianapolis Home Builders’ Association was held at the exposition last night. Real Estate Day will be observed at the show tomorrow and members of the Indianapolis Real Estate Board and their wives will have luncheon there. The board of governors of the Indiana Real Estate Association will meet at the show at 2:30 in the afternoon. Proclamation Issued An appeal to property owners to join the Federal Housing Administration in observance of Better Housing Day Friday is contained in a proclamation issued by Gov. Paul V. McNutt. The last five years have seen timidity and neglect on the part of private capital and have resulted in marked deterioration of many homes and other property in Indiana, the Governor’s proclamation said. Model Home Planned The Indianapolis Home Builders’ Association today laid plans for the construction of a model house in one of the city’s residential sections. Norris P. Shelby, association president, announced the plans following a dinner of builders at the Home Complete Exposition in the Manufacturers’ Building, Indiana State Fairgrounds. Association members sponsored the construction of the fireproof home at the exposition, but will not rebuild that structure. Another meeting will be held Tuesday at the Hoosier Athletic Club to perfect plans for the model home.

TRAVELING THEATER THRILLS TERRE HAUTE

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Blair Taylor and Rolla Farmer The Traveling Theater of the Indiana University Extension Department, successful in its opening yesterday at Terre Haute, will remain there for the rest of the week. The picture shows Blair Taylor, a member of the cast, trying on Elizabethan costume with the aid of Rolla Farmer of Terre Haute, who is in charge of the wardrobe.

News Survey of Indiana

By Times Special COLUMBUS, April 10.—The back pay suits of former Mayor Karl Volland and former City Attorney Clarence E. Custer against the city of Columbus, will be tried in the Johnson Circuit Court, Franklin, in the near future, it was announced here. Mr. Custer, who represents the former mayor and himself in the suits, and William H. Dobbins, present city attorney, reached an agreement on the county in which the cases are to be tried.

a a a Canvass to Be Made By Times Special CRAWFORDSVILLE, April 10.— Final plans for a canvass that is to be made here for the Federal Housing Administsation were agreed upon at a meeting of merchants, tradesmen and bankers. Clint Dedrick. Housing Administration official, explained the FHA program for this city. a a a Purdue Gets Relic By Times Special LAFAYETTE, April 10.—The farm machinery museum of Purdue University has received another interesting relic. John F. Trost, Purdue, botanist, presented the school with an antique baby carriage. Almost spacious enough to handle all the Dionne quintuplets, this contraption, used in pioneer days in this state, is three and a half feet long and is equipped with two seats. a a a Hospital Day Set By Times Special MARION, April 10.—Plans are being advanced here for the annual Hospital Day observance of the Grant County Hospital, May 12. As one of the features of the day, all the babies born in the last 18 months and their mothers will be asked to attend a reunion. National Hospital Day is sponsored by the American Hospital Association for the purpose of making the public more familiar with the work of hospitals. a a a Assessments to Rise By Times Special NOBLESVILLE April 10.—Estimates that the personal property assessment sheets in Hamilton County will show a 25 per cent increase over last year have been made by Walter Edw r ards, county assessor. He said he based his opinion on the figures of the county which had been compiled to date.

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a a a Distributes $287,000 By Times Special NEWCASTLE. April 10.—Distribution of a 30 p£r cent dividend amounting to $287,000 was started today by Alden Baker, receiver of the Farmers’ and First National Bank. The signed checks were received several days ago from the controller’s office in Washington. Mr. Baker said this second distribution would bring the total amount paid to depositors to $587,000.

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BUSINESS GAIN IN STATE BARED BY GROSS TAX

Manufacturing Leads in 27 Per Cent Improvement Over 1933. State gross income tax returns indicate a business improvement of from 14 to 27 per cent in 1934 over 1933. with manufacturing showing the largest gam in any business group, it was announced today by Clarence A. Jackson, gross income tax division director. The percentages are based on preliminary statistics, Mr. Jackson said, and complete figures on all industries will be completed in a few weeks. Representative Business firms in all parts of the state were used in the preliminary estimates to obtain a calculation of the business improvement. Returns of 18 department stores, both large and small, revealed that business has improved 14 per cent. Sales jumped in 1934 from $42,500,000 to $'48,500,000. A smaller group of wholesale concerns reported a 21 per cent gain with sales totalling $8,000,000 against only $6,600,000 m 1933. Automobile makers accounted for a large portion of the 27 per cent improvement in the manufacturing field. Receipts jumped from $22,COO.COO in 1933 to in excess of $28,OCO.OOO in 1934. Tax returns from eight representative newspapers revealed increased advertising boosting their gross income from $8,000,000 in 1933 to more than $9,300,000 in 1934 for an improvement of 17 per cent. Fires on Gasoline Thieves H. E. Evry, 18, of 522 N. Gray-st, told police that he took one shot at men siphoning gasoline from a car near his home last night, and that they came up to him, took his 410-gauge shotgun and fled, gun and all. WOMENJS® Gu,'esiSDecu2/\ 1 Half our patrons aro ’** . n-omen* Saft . luxurious SSjfex l * ' 'Jjg ous drivers : porter on Sailings tn all parts of the United States and Canada. REDUCED FARES STILL IN EFFECT New \ ork $14.00 $ 2.75 t olumhus .. 4.25 Baltimore... 12.50 Boston 17.00 Pittsburgh.. 7.25 Phone Riley 9666 125 WEST MARKETST. nil