Indianapolis Times, Volume 47, Number 209, Indianapolis, Marion County, 9 November 1935 — Page 1

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TURN U. S. GUNS ON INVESTMENT TRUST SETUPS Securities and Exchange Commission Aims at New Work ‘Giants.’ DEMAND QUICK LIGHT Investigators Are to Blast Open Inquiry Urged After Stock Crash. BY RUTH FINNEY Time* Special Writer WASHINGTON, Nov. 9. The Securities and Exchange Commission has its big guns ready to train on anew set of industrial giants. In.usiment trusts, under fire steadily since 1929, are to be scrutinized to determine what influence they exert on companies in which they arc intcreited, and how their own investment policies are influenced by affiliates. SEC, acting promptly under authority conferred by the last session eif Congress, will m,.ke recommendations to Congress in 1937. Stock Crash Recalled At the time of the 1929 stock market crash, 640 new investment companies were in existence. A check afterward showed at least a third of the financing that year was done to supply their demand for capital. Even during the Hoover Administration, Senate and House interstate commerce committees began studying the manner in which investment bankers were loading doubtful securities on to investment trusts, and otherwise profiting from them. The investigation continued under the Senate banking and currency committee, and finally Congress decided to have a thorough going job done by SEC, under direction of Judge Robert E. Healey, who was guiding spirit of the Federal Trade Commission’s utility investigation. Sift Control Today Today, however, stress is being laid on necessity for determining to what extent investment, trusts are obtaining far-reaching control over all industry. Several officials have pointed out, recently, that investment trusts, some of them now j frankly branching out into the man- j agement field, may exercise as much ! control over utility operating com- | panics, for instance, as do holding j companies. Atlas Corp., new Leviathan of the investment trust world, probably will be the first company to receive attention from SEC investigators. It is a $100,000,000 corporation, the biggest trust created so far, with widely diversified interests. List Largest Holdings Among its largest holdings are the Central States Electric Utility companies, American Trust Cos. of San Francisco, Greyhound Bus Lines, Mississippi Barge Line. Albert Pick Cos., manufacturers of kitchen utensile, china, furniture and linens; Redbanks Properties, with 1300 acres of fruit farms in California; Bonwit Teller. Hotel New Yorker, United Fruit Cos., Paramount Pictures, Madison Square Garden, and Birdseye Frosted Fruits. Within the last few days Atlas, in conjunction with Lehman Brothers, has assumed control of TWA Airlines and RKO (movies*, selecting anew president to head the latter. U. S. Seeks ‘Sanctions' By 1 ii'tr'l Press WASHINGTON, Nov. 9.—Administration officials are depending chiefly on “financial sanctions’’ to force public utility holding companies to submit peacefully to Federal regulatio, it was learned today. These “sanctions’’ may take the following forms: 1. Investors may be reluctant to buy securities of a public utility company when there is doubt of the legality of the issue because of the company’s violation of the act. 2 Congress may pass legislation regulating holding companies by taxation if the companies are successful in defeating the present law. Under the existing act, utility holding companies are required to file a brief registration statement with the Securities and Exchange Commission bv Dec 1 or obtain an exemption as the first step in submitting to Federal regulation. NEW MT. VESUVIUS ERUPTION REPORTED Four Fresh Fissures Emit Thick Streams of Lava. By l n ited Prcs,* NAPLES, Nov. 9 —Four new fissures in Mt. Vesuvius emitted thick streams of lava, smoke and heavysulphur fumes today after an eruption late last night. The eruptive cone of the great volcano, inside the crater, exploded last night over a 60-foot line and four fissures formed at the base of cone. Through the night and this morning the fissures emitted their lava in thick streams and the volcano rumbled menacingly. Should the lava overflow the crater, villages on the northeastern slop of Vesuvius would be in danger. Chicago Newspaper Official Dies By I nited Srrtt CHICAGO* Nov. 9 Herman Black, 68. chairman of the board of directors of the Chicago American, died today at his home in suburban Highland Park, after an illness of several weeks.

MACCREADY HUSTON'S DAILY HOOSIER COLUMN, 'SQUARING THE CIRCLE/ BEGINS IN THE TIMES MONDAY

The Indianapolis Times FORECAST: Probably rain with thunderstorms tonight and tomorrow; slightly warmer tonight; mild temperatures tomorrow; colder Monday.

VOLUME 47—NUMBER 209

CHEST CRUSHED BY CAVE-IN OF BASIN John Benefield in Serious Condition Following Rescue. John Benefield, 4.5. of 2256 N. Pennsylvania-st, is in a serious condition in St. Vincent's Hospital today with injuries he received last night when a catch basin at Emer-son-av and 38th-st caved in. He was extricated by fellowworkmen. At the hospital it is reported that his chest was crushed but the full extent of his injuries have not been determined.

50 CARDS—SO HE CALLS COPS Broadminded About Losing S6O. but Short Deck Is Too Much. Harold Meek was broadminded about losing S6O in an all-night poker game until he counted the cards and found only 50. Then he became touchy about it. The player next to him counted them and found 51 and the man who ran the game counted them and found 52, but Mr. Meek was not satisfied. He went to police at 5 this morning and asked them to raid the game, mentioning that a man who said he was a deputy sheriff, and who had a badge, was running it. Police lost no time getting to 921 Massachusetts-av. There they found, they say, the O. L. D. Club, Inc., "for Knitters, Toppers and Barbers.” They went into the basement and found 11 men, a deck of cards, a table, but no poker game and no money in view. They found that Ray Higdon, 1311 N. Olney-st, had a courtesy deputy sheriff’s badge with his name engraved on it, and they arrested him on charges of keeping a gambling place. Estel E. Miller, secretary and treasurer of the club, is charged with keeping a gambling house and gaming. The other nine men arrested, who are charged with gaming and visiting a gambling house, gave their names as Harvey Flynn, 806 Park-av; Bay Burt, i960 E. New York-st; Hugh Hughes, 628 E. Vermont-st; Charles Scott, 2935 School-st; George Smith, 2621 Jack-son-st; Prince. King, 1059 Udell-st; Earl Purcell. 1029 W. 30th-st; Billy Boughtrn, 311 N. Hamilton-av; Emerson Smith. 614 N. Park-av, and Mr. Meek.

CUBANS BALK PLOT TO KILL U. S. ENVOY Jefferson Caffrey Principal in New ‘Mystery’ Act. By f Hited Press HAVANA, Nov. 9,—A plot to assassinate Jefferson Caffery, United States ambassador to Cuba, has been uncovered, the intelligence department of the Cuban army declared today. The plan, says the intelligence department, was to surround Caffery's car with five other automobiles as he drove from the chancellory to his home in the suburb of Miramar and kill him with gunfire. The attempt was to have been made one day last week, it was said. Evidence of the alleged plot was obtained when the intelligence department, arrested Cesar Viiar and seized alleged revolutionary documents said to implicate him as leader of the plotters. One other alleged plotter has been arrested. WOMEN FLIERS DEFER CROSS-COUNTRY RACE 0 Five Decide to Wait Until Next Week for Start. * By United Press ROOSEVELT FIELD. N. Y„ Nov. 9.—The SSOOO cross-country race of five women fliers has been postponed until Monday or Tuesday to allow mechanics to complete repairs on one of the planes damaged in landing. The flights were to have started today. Mrs. Marty Bowman of Los Angeles piloted the plane which damaged its landing gear Thursday morning. Among those participating are Mrs. Blanche Noyes of Newark. Miss Laura Ingalls. Mrs. John T. Remey of New York and Miss Ruth Barron of Rochester. N. Y. GRID ROOTERS HURT ON WRECKED TRAIN None Injured Seriously. However, in Colorado Crash. By United Press HOT SULPHUR SPRINGS. Colo., Nov. 9. —A large part of the rooting section at the Utah-Colorado football game today at. Salt Lake City perhaps will look more bruised than the players. A derailment of a special Denver <fc Rio Grande Western Railroad train which they chartered for the trip almost halted plans of the collegians. None of the students was injured seriously, however, with the possible exception of Jack Jones, a student, who may have received a fractured leg. Indianapolis Student Honored rime* Special GREENCASTLE. Ind., Nov. 9. Charles Irving Mendenhall, 307 N. Arlington-av, Indianapolis, is one of 12 De Pauw students named to the editorial staff of The Mirage, university yearbook. He is a member of Phi Kappa Psi.

200 CARS ON EXHIBITION AT SHOWOPENING Twenty-Fifth Anniversary of Motor Display Held in City. CO-EDS ARE HOSTESSES New Model Autos Combine Both Beauty and Efficiency. Motordom wheeled itself in Hoosierdom's spotlight today with the scheduled opening at 1 p. m. of the twenty-fifth Indianapolis Auto Show in the Manufacturers’ Building at the Fairground. Sponsored by the Indianapolis Auto Trade Association the show is to be open daily from 11 a. m. to 10:30 p. m. W. J. Robinson, show* manager, said this year’s exhibition of 1936 model cars will be the largest in several years. Two hundred autos of the latest designs are to be on display. The exhibition building has been decorated in blue and silver, Each car exhibitor will have a Butler University co-ed as hostess with a beauty contest to be held Tuesday night the most charming hostess. Typifies Machine Age BY DAVID DIETZ Scripps-Howard Science Editor NEW YORK, Nov. 9.—The 1936 automobile typifies the emergence of America from tne depression. In its combination of spectacular beauty and technical excellence, it displays the characteristics which will be found increasingly in the products of American industry during the coming year. Both the beauty and the efficiency of the new automobiles grow out of the same basic fact, namely that the new cars have been designed from the inside out rather than from the outside in. This was for me the outstanding impression at the close of a day spent in inspecting the new models at the National Automobile Show and at the auxiliary shows which manufacturers have in the lobbies and ballrooms of hotels on Parkav and elsewhere. Leaves Buggy Era The automobile started as a buggy with the shafts for the horse taken off the front and an engine concealed somewhere under the driver’s seat. Until the 1935 automobile show, held here last January, the motor car was closer to that buggy than it was to the potentialities of the machine age. '* The 1935 models left you with the impression that the automobile was finding itself, and the latest offerings convince you that the automobile has done so. Fundamentally, the automobile is a device for transmitting power into motion. ; With the 1935 model, one had the feeling that the automobile was beginning to look dynamic instead of static. But one also had the feeling that the designers had placed too much emphasis upon streamlining. For important as streamlining is, it is more important in the airplane than in the automobile. Likewise, it also seemed that designers had sometimes been a little too enthusiastic in giving a fender or a hood anew sweep. A pointed hood which rode betw'een fenders that billowed away like the weaves before the prow of a ship caught your eye but also made you wonder whether it was the best of engineering. Truer v to Basic Principles This year the designers have been truer to the basic principles of the automobile itself. Staying within the general plan of streamlining which so excellently typifies the spirit of modernity, they have not hesitated to modify it where the basic nature of the automobile demands such modification. In designing the new cars, the engineers have taken the fullest advantages of the new materials which the research laboratories, running full blast through the depression years, have placed at their disposal. The casual visitor is not likely to appreciate that these new models were made possible only by the development of stainless steels and other steel alloys, aluminum alloys, plating processes, plastics and new finishing methods. Chemical researches upon fuels have influenced engine design in ways which finally find expression in the appearance of the car. Compact and unified, with lights and horns built into hoods and I fenders, with sleek noses that spell power and speed as they point imo the wind, with shape of windows I and trim of chromium all carefully ! calculated to accentuate the fundamental soundness of design, the 1336 automobile symbolizes an America that has found herself and started to go places. INJURED IN ACCIDENT Patrick Lynch. 60, in Fair Condition Following Hospital Says. Patrick Lynch, 60. of 1331 Par-ker-av. is in City Hospital today with injuries he received when he was struck by an automobile in the 1000 block, W Washington-st yesterday. His condition is described as fair.

INDIANAPOLIS, SATURDAY, NOVEMBER 9, 1935

SHIPS, PLANES, JUNGLE NATIVES JOIN HUNT FOR KINGSFORD-SMITH

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ORPHIR ABANDONS LUSITANIA QUEST Expedition Ends for Season as Diver Quits. BY GILBERT M’ALLISTER Times Special Writer (Copyright, 1935, by United Feature Syndicate, Inc.) ABOARD SALVAGE SHIP ORPHIR, Nov. 9.—The Lusitania expedition ended for this season w-hen the Orphir put into Kinsale today, after a last minute attempt to send a diver down to the wreck was frustrated by bad weather. The salvage ship will proceed to its winter quarters at The Clyde to be prepared for next spring’s resumption of operations on the actual salvage of treasure from the sunken Cunarder. The Lusitania wreck was recovered in record time for so difficult an undertaking. Next spring work will be far easier. Since the liner is lying on her side the holds of the ship can be reached without much difficulty. With the hard, grueling work of locating the wreck behind it, the Orphir faces the exciting prospect of actual salvage operations next spring. JUDGE WILLIAMS TO RULE ON RELIEF PAY Indicates He Will Grant Request of Township Tiustee. Superior Judge Joseph R. Williams is to rule today on a petition to mandate County Auditor Charles A. Grossart to pay the October salaries of 52 Center Township relief clerks. Judge Williams indicated at a hearing yesterday that he would grant the petition, but instructed Miss Hannah Noone, township trustee, to abide by the rulings of Atty. Gen. Philip Lutz Jr. in the future. Defying Mr. Lutz’ rule limiting the number of clerical relief employes, Miss Noone employed 52 above the quota.

Carlson Heads for lowa With New Husking Title

Times Special NEWTOWN. Ind., Nov. 9.—Elmer Carlson carried back to Augubon County. lowa, today, the national corn-husking championship for the year with a record of 41.52 bushels husked in 80 minutes. Four other contestants broke the record that Carl Seiler. Illinois, set in 1932 to win the championship that year. Irwin Bauman, Illinois, was second yesterday with 39.06. Lawrence Pitzer. Fountain County farmer and Indiana's favorite son. was third with 38.84 bushels. William Rose, Illinois, shucked

EAGLES CONVENE FOR STATE SESSION HERE Officers Parley to Precede General Meeting at Aerie Home. Final arrangements for a state meeting of the Fraternal Order of Eagles, to be held tomorrow at the lodge home of Indianapolis aerie, 43 W. Vermont-st, were announced today by the aerie president, Guy L. Woodruff. At 10, state officers and district chairmen are to meet. A general session is to be held at 2. Special guests are to include Mayor Kern, Gus Mueller, secretary of state; Adolph Fritz, Indiana Federation of Labor secretary; Walter Pritchard, Harry Dunn, James Scott, Frank W. Quinn and Sheriff Ray.

lOWA, MINNESOTA NEAR GRID BREAK Police Called as Riot Perils Today’s Game. By United Press lOWA CITY, la., Nov. 9.—A break in athletic relations between lowa and Minnesota threatened today as the two Big Ten rivals met in a home-coming game here. A statement attributed to Gov. Clyde L. Herring of lowa that the Hawkeye fans would “not permit any undue rough treatment” of Ozzie Simmons, fleet Negro half back, so irritated Coach Bernie Bierman of Minnesota that he threatened to sever relationships. So intense was sentiment for the unbeaten Hawkeves that Coach Bierman enlisted a police squad to protect his players as they arrived shortly before game-time from Davenport. With feeling at a high pitch, Bierman yesterday refused the offer of an athletic field for practice in Davenport and removed his squad to Rock Island, 111., across the Mississippi River, where state and city policemen and a fire department force guarded the drill.

38.12 bushels; E. H. Hendricks, lowa, 37.5; Ted Balko, Minnesota, 36.84; Paul Pokett, Nebraska, 35.24; Lawrenc House. Kansas, 35.18; William Fields, Indiana, 34.43, and Richard Anderson, South Dakota, 33.57. Approximately 80.000 persons watched the contest and heard Henry A. Wallace. Secretary of Agriculture, and honor guest, talk on the Agricultural Adjustment Administration. Pickpockets took about 50 pocketbooks, and practically every one there took an ear of the Leslie 1 Mitchell corn as a souvenir.

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

UTILITIES IRREGULAR IN HEAVY TRADING Main List Moves in Narrow Limits at Opening. By United Press NEW YORK, Nov. 9. Utility shares, sensations in yesterday’s stock market, turned irregular today in heavy dealings, featured by a block of 15.000 shares of Commonwealth & Southern at 2 :, i unchanged. The main list moved narrowly with gams and losses evenly distributed. The large Commonwealth block was followed by one of 5000 shares at the same price. Over on the Curb, Cities Service opened at 3 unchanged on 9800 shares and Electric Bond & Share 7000 shares at 17%, off 1 2, followed by a block of 2000 shares at the same price. Western Union opened at anew high fox the year at 69%, up 1, on a block of 1000 shares on a favorable earnings report for the first nine months of the year. American Can opened at 145, up 1, and later rose another point. U. S. Steel held around 46%, off Dupont rose % to 139 Vi. fßy Thomson & McKinnon) 10:30 A. M. Prev. N. Y. Close. Atchison 48% 47% Grt Northern 27‘2 27' 2 Pennsylvania 28 28 1 3 Gen Elec 37 7 a 377s Westinghouse Elec 93*/g £2% U S Rubber 15 14 T S Chrysler 84% 857s Gen Motors 57% 58 Elec Auto Lite . 36% 36% Douglas Air 33 ! 2 33% United Air 20% 20% Anaconda 20% 21 Kennecott 27 26 7 a Int Nickel 34% 34% Du Pont 139% 133% Union Carbide 71% 71% Phillips 35% 35% S O of Ind 28% 28% SO of N J 49% 49% Am Rollin Mills 30% 30 Rep Iron & Steel 18% 18% AT&T 148% 149 U S Steel 46% 47 Cons Gas 32% 32% Nor Am Cos 27% 27% Western Union 69% 68% Borden 27% 27% Natl Dairy 18% 18% Stand Brands 15% 15% BOONE COUNTY POWER PROJECT DISCUSSED Electric Association Told of Plans for Improvement. By United Press LAFAYETTE, Nov. 9.—Plans for the recently approved Boone County rural electrification project were discussed by Arthur Waterman, Mellott, vice president of the StateWide Rural Electric Membership Corporation, at a session of the Indiana Eelectric Association convention here today. The Boone County project, sponsore by the Indiana State Farm Bureau, will be constructed by the corporation with funds loaned by the Rural Electrification Administration. Approximately 587 miles of electric power lines will be constructed to s?rve 220 rural customers, Mr. Mellott said.

Royal Air Force Bombing Planes Soar Over Bay of Bengal Seeking Trace of Missing Australian Air Hero. CHINESE JUNKS POKE UP CREEKS Major Hope Is Based on Famed Airman’s Own Intrepidity; Hold Theory Craft May Have Landed in Burma. By United Press SINGAPORE, Straits Settlement, Nov. 9. Ships and airplanes searched the sea today, and natives beat the treacherous jungle, in dimming hope of finding Sir Charles Kingsford-Smith and J. T. Pethybridge, feared lost on an England-Australia flight. Wireless messages flashed out to liners and freighters in the Andaman Sea and the Bay of Bengal seeking to trace the Lockheed monoplane, Lady Southern Cross, in which the great Australian aviator and his co-pilot were seen late Thursday fighting for life only 200 feet above a stormy-shark-infested sea, 150 miles from the coast of the Malayan peninsula.

ITALY'S DRIVE IN SOUTH OPENS Chase of Fleeing Ethiopian Army at Gorrahei Is Started. BY SANDRO SANDRI United Press Staff Correspondent WITH THE ITALIAN SOUTHERN ARMY, GORRAHEI, Nov. 9. The chase of a fleeing Ethiopian army along the trails to the north and to Harar has started as I write this dispatch. It is the beginning of the real campaign in the south, which is to take the army of the south through the Ogaden country to meet the armies assembled by Ras Siyoum in the country before Harar and Jijiga. I have myself witnessed the fall of Gorrahei, an important position which was considered by the Ethiopians—and rightly—to be the key of the defensive system in the Ogaden region. Gorrahei was taken by armored cars Wednesday' night without the firing of a shot and it was strongly garrisoned by two united Italian attacking columns Thursday morning. A strong force of Ethiopian tribal warriors and regular infantry had been demoralized and fled in rout, terrified by the preparatory bombing of Italian airplanes. This operation was the keynote of the Italian campaign in the south under Gen. Rodolfo Graziani, called Italy’s foremost colonial soldier and conqueror of the Libyan desert. As the army starts northwestward and northward, its lines have extended some 660 miles from the southern base at Mogadiscio on the Somaliland coast and we are 62 miles from the most advanced field base at Scillave. There is no defense in sight. Gen. Afework, commanding the Ethiopian stronghold here, fled with his men after being seriously wounded Monday by a splinter from an aerial bomb, prisoners told us. The last of the main forces fled the city Tuesday night. No Defense in North WITH THE ITALIAN NORTHERN ARMY. MAKALE, Nov. 9. Italian reconnaissance airplanes have flown 50 miles south of Makale without finding any concentrations of Ethiopian warriors, it was learned today. The plane observers saw one camel caravan, apparently of soldiers, but did not fire on it as the caravan did not try to sharpshoot at the planes. Boycott Order Issued By United. Press LONDON, Nov. 9.—The privy council today issued an order making the financial and credit boycott against Italy effective Nov. 18. Simultaneously it decreed that a controller should be appointed by the treasury, to whom all British debts to Italy under the sanctions now enforced should be paid. Violators of the financial boycott provisions may be punished by up to two years’ imprisonment, the council ordered. It banned the import of goods from Italy, but excepted Italian newspapers, books and maps. Times Index Page Amusements 2 Births, Deaths 11 Bridge 4 Broun 7 Comics 13 Crossword Puzzle 13 Curious World 13 Editorial 6 Financial 14 Junior Aviation 10 Peeler 7 Radio „ 9 Serial Story 9 Sports 8-9 Want Ads. 11-12

Capital EDITION PRICE THREE CENTS

I C. J. Melrose, fellow AusI tralian aviator on a solo flight j to Australia, was the last man Ito see the Lady Southern ! Cross. Flames were shooting j from its exhaust. He joined in the search today, i Melrose and the crews of two great Royal Air Force bombing planes took off at dawn for Victoria Point, 700 miles up the coast at the southern tip of Burma, to fly out over the Andaman Sea looking for the | plane. Other bombers, on a visit to TaipJ ing between Singapore and Victoria Point, took off at dawn. The aircraft carrier Hermes got up steam here to cruise up the coast and reinforce the many ships that were co-operating in the search. All aiong the coast of the penini sula, Malay and Burma natives beat ; through the jungle area of the coast and in the dangerous tangles of the islands off the coast. Dawn Intensifies Search Dawn intensified a search that had gone on all day yesterday and all through the night. Natives joined eagerly in the search and thousands of their flares, eerie in the darkness, lighted the jungles last night while Chinese junks, with flares on their masts, poked their way up creeks and inlets and about the innumerable islets along the west side of the peninsula. The search, still growing, has become one of the greatest ever made for aviators lost at sea. Hundreds of ships, great and small, were looking for the flier on and off the steamer route, among the islands ana off the coast, while there were thousands in the search ashore. Thirty-seven Royal Air Force airplanes in all were detailed to join the search. Lost Once for 12 Days What hope there was for the survival of the airmen was based first on Kingsford-Smith's own intrepidity; secondly on the fact that he was last seen on or near the main steampship route and that his plane if lightened might float for two days if it stayed up until the sea moderated; thirdly that he might have reached one of the many desolate islands off the coast from which there is no modem communication. He was lost once for 12 days in one of the worst parts of the Australian bush, among cannibals, living on snails and broth made from roots. The search upcoast was based on Victoria Point at the tip of B'-rma because, as plotted here, it was believed that the plane must have landed in that area. YOUNG REPUBLICANS LAUNCH CONVENTION Smother Friction and Start to Map 1936 Policies. By United Press DES MOINES, la., Nov. 9 Smothering a flareup ignited by friction with the Republican National Committee, young Republican leaders of the nation today opened a convention which they hope will influence party policies in 1936. Delegates from 30 states expressed willingness to co-operate with the national committee ’for the good of the party.” Resentment against “dictation'’ by the committee several weeks ago brought a statement that the Young Republican organization would not be dominated by reactionary leadership.” Despite expressions of harmony today, the delegates indicated a battle would develop if the national committee makes a direct bid for control of the Young Republican movement. Rob Clayton (Ind.) Postoffice Times Special CLAYTON. Ind.. Nov. 9—Robbers last night battered open the Clayton Postoffice safe and took 5230 In stamps. S6O in cash and S6OO in unsigned government bonds.