Indianapolis Times, Volume 47, Number 216, Indianapolis, Marion County, 18 November 1935 — Page 3

NOV. 18, 1935

'TERROR REIGN' CHARGES LAID TO 'IGNORANCE' Yellowlcy Strikes Back by Claiming Case of Gross ‘Exaggeration.’ (Continued From Face One) representative of the Tndiana State Restaurant Association and complaining about the manner in which agents of this office are making their routine inspections of retail liquor establishments in Indianapolis as are similar agents in every city of the country with a population of more than 100.000. “The letter as received bv this office and as quoted by you is full of misstatements, exaggerations and evidences of complete ignorance of the law and the duties imposed by law upon agents of the alcohol tax unit of the Treasury Department. “In fairness to the inspectors in Indianapolis who are so roundly criticized in the letter quoted by you, I believe the public should be informed of the true facts in connection with this situation. Received Only One Complaint "First of all, only one lone complaint has been received by this office, that a letter signed by oneJ.F. O'Mahoney. There have been no protests from the Indianapolis Retail Druggists Association, the Indianapolis Hotel Men's Association, the Indiana State Hotel Men’s Association or the Indianapolis meat dealers and grocers, all of which are listed by you as having participated in the O'Mahoney letter. “Naturally, we are reluctant to dignify these absurd charges with a formal reply other than the letter answering Mr. O'Mahoney’s original letter, but since our inspectors must continue to function in Indianapolis as elsewhere and since they wish to continue the cordial relations they have with the great majority of law abiding, respectable liquor dealers, their position also should be made clear to the public. Holds Reasoning Is “Jumpy” "The only way I can understand how the complainant comes to accuse our inspectors of holding ‘kangaroo courts’ in Indianapolis is that his own reasoning process must be as jumpy as a kangaroo, for he has certainly leaped to conclusions not at all warranted by the facts. "Every retail liquor dealer in the country prior to the current nationwide inspections received a circular outlining in full and in clear simple language the requirements of the law for such establishments. “These inspections were ordered by the Treasury Department in Washington as part of a general effort to place the newly legitimatized industry on a sound respectable basis. The great majority of liquor retailers requested such a canvass and lauded its inauguration wdth assurances to the Treasury that such activity would protect honest establishments from dishonest competitors who had not yet shaken off their habits of prohibition days. Denies Power Discretionary "There is no discretionary power as Mr. O'Mahoney would have you believe vested in the inspector. He is bound by law' on making an inspection to report all violations toward the end that there be no discrimination among tavern keepers. "The letter w'hich you quote contends that agents assigned to this district have created a reign of terror in Indiana. District headquarters here in Chicago are in close and constant touch with every group involved in the applications of the internal revenue laws concerning liquor and unbiased observers consistently report to us that the only persons talking about terror are the moonshiner and the bootlegger and that the consumer who is happy that, the Federal government once again gives him protection against poisonous and harmful beverages is heartily applauding such a reign of terror. "Now let is be understood that there are no such things as fines insofar as revenue agents are concerned. Fines are a matter for the courts to handle. Denies “Kangaroo” Courts "Moreover, in spite of Mr. O Mahoneys looseness with terms, our inspectors conduct no quasi-judicial hearings. They are required by law r , Section 3229 of the revised statutes of the United States, to call attention of the violators of their right to submit an offer in compromise “This device has been developed for the protection of minor violators so that they mend their ways and continue in business rather than be subjected to lengthy court trials with the possibility of more severe penalties. “There is no duress whatever in the application of this section of the law and none is possible, even though Mr. O'Mahoney would like to have us believe that a practice developed for the benefit of liquor dealers is being used to intimidate them. Compromise Is Optional "All our inspectors tell violators that the offer in compromise is optional with them. If they prefer a trial they most certainly may have it. but if they submit an offer they do so by means of a postal money order or certified check made payable to the collector of internal revenue in their district. “So it is manifest that the inspectors do not assess fines or collect any money as charged by the letter which you quote. The check is held by the collector as suiety while the Bureau of Internal Revenue considers the offer. “If it is accepted, the money is retained. If rejected, prosecution is usually then recommended and in most cases the amount of money is less than would be required if the violater were arrested and forced to post bond for his appearance in court. "The letter you wrote mentioned a druggist who contended that a strip stamp had fallen off a bottle in his store when inspectors reported that they had found umax paid liquor in lus store. Interested in Consumer "All retailers have been advised that in such cases they should immediately inform this office and that they will then be given proper protection from prosecution. ‘ The letter tells of a hotel penalized because it prepared cocktails in advance without a rectifier's permit. That is clearly a violation according

MME. STAVISKY FIGHTS FOR LIBERTY

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With France waiting in fear of disclosures that will rock the nation, the Stavinsky swindle trial is in progress in Paris. Here in the courtroom is shown Mine. Arlette Stavisky, widow of the alleged archswindler, charged with guilty knowledge of his operations, conferring with her attorney, Maitre Roger. Back of Roger is Gaston Bonnaure, former deputy, one of a of co-defendants.

Chief and Sheriff Clash Over Gambling Orders

Morrissey Says Police Have Orders to Close Places. The Indianapolis gambling situation remained today about as it always has been, but no two officials could agree on how it always has been. Sheriff Ray charged that city police are allowing some dotvntown gambling places to remain open as a matter of favoritism, and closing others. Also, Ray charged that police took t he time Saturday afternoon to warn all downtown operators that he and his men were about to make a gambling raid, with the result that they all closed. Chief Morrissey said that no such thing was true; that his men have orders to close and keep closed all gambling spots; that he can’t believe his men would warn spots to close, and that, all in all, he can t understand a thing the sheriff is talking about. Shortly after noon Saturday Sheriff Ray and his men gathered at the jail and started an extensive drive against slot machines in the county. When they got to where the slot machines w ? ere supposed to have been, they w'ere ail gone. The sheriff charges that someone warned them. When, he says, he made a survey of downtown "spots” he found them all closed, too. Both of these circumstances, he said, added up to more than coincidence. The sheriff says he is going to "turn on the heat” and that he intends to get them, if he has to do it himself. Chief Morrissey said he thinks it’s a good idea. 5000 FARMERS WILL ATTEND CONVENTION Farm Bureau to Discuss Rural Electrification at Session. More than 5000 farmers from all parts of Indiana are expected to attend the three-day annual convention of the Indiana Farm Bureau starting Wednesday at Tomlinson Hall. One of the most important features of the convention will be discussion of rural electrification and how various rural communities may proceed tow'ard obtaining cheaper electricity. An address by Rush D. Holt (W. Va.), youngest member of the United States Senate, tentatively is scheduled. to the law, and there is nothing the inspector can do about it. "Please be assured that this office and all other agencies of the Bureau of Internal Revenue are interested primarily in the consumer and the legitimate dealer, and that all persons in its employ are thoroughly instructed and constantly reminded that they are working for the taxpayer. “We have come to expect protests from persons who desire privileges giving them benefits over their competitors. but we hear no complaints from those who are co-operating with us in a wholesome observan :e of the law.”

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PARK BOARD GETS IRVINGTONIANS’ AID Back Pleasant Run-Blvd Extension Fight. East Side business men and property owners are entering the Pleasant Run-blvd extension fight in the Park Board’s behalf, a. C. Sallee, superintendent, said today. In commenting on the protest raised by public links golfers to the proposed addition. Mr. Sallee said many Irvington residents had signed petitions asking that work be started as soon as possible. Final action of the Park Board on the route of the new parkway, which is to follow Pleasant Run to Shadeland-dr, extend north to 56thst and then east to Fort Benjamin Harrison, is expected this week. SHERIFF RAY SITS IN ON MUSGROVE TRIAL Rumors Afloat That Slot Machine Racket Is to Be Aired. As Herschel Musgrove, former policeman, went on trial today in Municipal Court on charges of assault and battery on Chief Morrissey, Sheriff Ray was an interested spectator. Moreover, Paul Rochford, the sheriff’s personal attorney, was attorney for Mr. Musgrove, who is accused of walking into the chief’s office June 3 and striking him. Chief Morrissey was the first witness. Mr. Musgrove was charged by Chief Morrissey with having operated slot machines while he was on a beat, and the Safety Board upheld the charges and dismissed him from the force. There have been rumors current along the levee that when Mr. Musgrove came to trial, the slot machine racket in the city would be aired as it never has been before. MOOSE WOMEN NAME MRS. BUTZE HEAD Other Committee Chairmen Are Selected at Conference. Mrs. Jean Butze, Indianapolis, has been named state citizenship chairman for the Women of the Moose. Other committee chairmen, appointed yesterday at the fifth pilgrim governor’s conference and central Indiana district meeting, are: Mrs. Floy Conley, Kokomo, publicity; Mrs. Emma Spisak. Whiting, social service; Mrs. Catherine Shull. Terre Haute, homemaking; Mrs. Wynema Stokes. Kokomo, child care and training; Mrs. Ica Scott, Marion, library, and Mrs. Jennie Ullum, Muncie. membership. Arrest Four on Liquor Charges Four persons were arrested yesterday on charges of violating the liquor laws. They are Cal Jones. 54. of 302 Hancock-st; Frank Carli, Mrs. Anna Turk and Ftank Turk. 969 Holmes-av.

THE INDIANAPOLIS TIMES

U. S,-CANADIAN TRADE TREATY DRAWS ATTACK Pact Is ‘Cold Comfort’ to Farmers, Claim of Grange Leaders. (Continued From Page One) and is automatically continued unless terminated by either party. The United States obtained tariff concessions from Canada on some 767 articles and commodities affecting practically all branches of American agriculture and industry, and all sections of the country. These reductions range from approximately 10 per cent to 50 per cent. A number of American products were taken off the duty list and placed on the free list. Included in this category were American periodicals and magazines, which heretofore have paid high duties in Canada. Canada Opinion Varied By United Pres* MONTREAL. Que., Nov. 18.—Details of the reciprocal trade treaty between Canada and the United States were received today with varying reactions throughout the country. Interests which have enjoyed the protection afforded by the former high tariff barrier against most United States commodities objected vigorously. Those who favor lower duties and the wider freedom of trade welcomed the agreement. Livestock growers, dairymen and timber interests hailed the treaty. Increased sales of their basic commodities were taken for granted as a result of the lower tariff rates which will be applied when the treaty becomes effective. The liquor industry was particularly pleased. One leading Canadian distillery official estimated that the price of Canadian whisky in the United States would be $1 lower. An important provision is the guarantee that newsprint paper and wood pulp would continue to enter the United States duty free.

See Political Reaction BY WILLIAM PHILIP SIMMS Scripus-Howard Foreign Editor WASHINGTON, Nov. 18.—The dollars-and-cents importance of the Canadian-American trade treaty will likely be eclipsed by its political effect throughout this hemisphere. It is the biggest of several guns already fired and to be fired in the Administration’s battle to draw the 22 nations of the Western world closer, both economically and politically. In one respect, at least, President Roosevelt is in accord with his predecessor. And that is on the importance of international trade. Said President Hoover in a speech at Boston: “Might Survive as Nation” “Should we have to suppress the 9 or 10 per cent of our total production which is now sold abroad, we might survive as a nation, though on lower living standards and wages.” Through the boomerang effect of the Hawley-Smoot tariff and subsequent trade barriers, much that President Hoover feared has come to pass. Now the Roosevelt Administration is making a strenuous effort to recapture the lost ground. It is convinced, however, that neither Europe nor Asia now, nor any predictable future, offers much room for encouragement. Both areas seem in for a protracted period of unrest, doubtless ending in bloodshed. Unlike 1914 Situation Unlike w'hat happened after 1914, the United States is unlikely to profit enormously by the temporary trade boom offered by a foreign w ? ar. Already an act of Congress calls for the automatic stoppage of munition shipments, and there is reason to believe this law will be broadened early in the coining year. President Roosevelt and Secretary of State Cordell Hull have repeatedly warned American businessmen against trade with Italy and Ethiopia. the two principals in the present conflict. And if these warnings go unheeded. signs are not wanting that the government will crack down on those guilty of violating either the spirit or the letter of America's neutrality law. Breaks Open Safe; Steals Glasses A robber entered the Adams Plating Cos., 138 W. lOth-st, last night, broke open the safe and looked unsuccessfully for money. So he stole a pair of glasses, valued at sl2.

Announcing II Our 6th ANNIVERSARY Pre -Thanksgiving Turkey I TURKEY Luncheon FEAST Beverage and Dessert £ very Day Until T hanksgiving Although Turkey prices have 11 a. m. to 3p. m. soared to unusual high levels, Seville has purchased a large —— quantity of tender native turkeys for this; our 6th anniversary, offering them to you at an exceptionally low price. Enjoy This Favorite Holiday Delicacy Everv Dav This Week at SEViLLE trryflTflrar

Cheese It! By United Press CHICAGO. Nov. 18.—Four policemen charged into the home of Mrs. W. N. Massie today after she reported there was a package which suspiciously resembed a bomb resting in her apartment hallway. Cautiously the cops sneaked up on it. One listened intently. "I can hear some ticking and scratching.” he whispered, tense with excitement. "We’d better take it out to a vacant lot.” suggested another. Gingerly the police carried the package to an open space a block away. With trembling fingers they opened it. Out popped four white mice.

DR. ALEY, ONCE BUTLER LEADER, PASSES IN EAST Educator to Be Buried in New York City Tomorrow. Funeral services for Dr. Robert J. Aley, Butler University president from 1921 to 1931, are to be held tomorrow in N<.w York City. Rites are to be conduced at the Central Christian Church on W. 81st-st. The body is to be cremated. Stricken with pneumonia following a one-year illness. Dr. Aley died last night in his New York home. He was 72. Survivors are the son, Maxwell Aley, editor of Longmans. Green & Cos., New York book publishers, and two grandsons, Maxwell Parker Aley and Robert Jonathan Aley. Officials Pay Tribute Butler University officials and business leaders today paid tribute to Dr. Aley’s work in building the university and increasing its scholarship rolls. Born in Coal City, the former Butler executive ran a boarding club at Indiana University while obtaining his second A. B. degree from I. U. His first A. B. degree was acquired at Valparaiso University. He received his master’s degree from Stanford University in 1895 and in 1917 his Ph. D. from the University of Pennsylvania. He married Miss Nellie Archer, Spencer, in 1884. Mrs. Aley died two years ago. Began Teaching at 14 His teaching career began at the age of 14 in a small country school near Coal City. Later he taught on the staff's of Vincennes University, Spencer High School, Indiana University, and Stanford University. Dr. Aley served as Superintendent of Public Instruction of Indiana from March, 1909, to November, 1910. He resigned to become president of the University of Maine where he remained until he came to Butler in 1921. He was president of the National Education Association in 1916-1917. secretary of the National Council of Education from 1911 to 1913. Dr. Aley served as editor for several educational magazines and was the author of five books. His last book “The Story of Indiana” was written in 1912 in collaboration with his son. Once Slated as Governor Throughout his life Dr. Aley supported the Democratic Party and at one time was mentioned as a possible candidate for Governor. Before he left Butler University he gave his home as a permanent residence for its presidents. He was appointed president emeritus of Butler. His resignation was effective July 1, 1931. Dr. Aley was the second former president of Butler to die in the last year. Dr. Walter Scott Athearn, who succeeded Dr. Aley. died this year following a short illness. Eulogized by Dr. Putnam A representative of the university will attend the funeral. Memorial services are to be held this week at the university in honor of Dr. Aley. Dr James W. Putnam. Butler president, eulogized Dr. Aley and his benefit to the. university, saying: “He was a man of whom Indiana well may be proud. To his native ability he added a thorough training and wide experience. He was an excellent teacher and wise administrator. In 10 years he guided Butler through its expansion period and saw the school move to its new campus. Dr. Aley is mourned by his colleagues and thousands of ’riends and alumni of Butler.”

STATE WITNESS UNDER FIRE BY DEAN DEFENSE Officer Not Certain of His Identification, Woman Tells Jurors. Mrs. Minnie Beddon. 810 S. Ingo-mar-st, today testified as a surprise witness in behalf of William < Willie > Mason and Edward i Foggy) Dean at their trial in conenction with a holdup Feb. 7 1933. in which Sergt. Lester Jones was killed. Mrs. Beddon told that she had heard Patrolman Michael McAllen, the state's star witness who has identified Mason and Dean as among those at the People's Motor Coach Cos., when the killing took place, make this assertion before he took the stand in the last trial of the pair: “I hate to take the stand because I really can't be positive about any of those fellows because I was looking at the machine gun and not at them.” Overheard Conservation Mrs. Beddon, then employed on an FERA pay roll as a cleaner in the courthouse, said Patrolman McAllen made this statement to another police officer. The state charges that Mason and Dean were shooting down Sergeant Jones. For this, life imprisonment is demanded by Prosecutor Herbert M. Spencer on the charge of inflicting physical injury during a robbery. The defense claims that Dean spent the night at the home of his ailing father at 823 Woodlawn-av, and Mason in his Clifton iKy.) bungalow'. Identified Dean Patrolman McAllen, who stood beside Sergt. Jones as he pulled open the garage door, identified Dean as the bandit who turned a machine gun fire on the officer. Mason, Patrolman McAllen testified, was the gunman with whom he exchanged shots. Two taxi drivers, Harold Butts and Paul Luthmers, testified that Dean, Mason and three others kidnaped them for a wild drive through snow-covered streets shortly after the holdup. Three bandits. Ernest (Red) Giberson, Fred Adams and George Schwartz, are serving life terms in Indiana State Prison for seconddegree murder. A series of circumstances—the theft of weapons from the Frank-

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OFFICIAL WEATHER _Vnitrd Stair, Wrathrr Rurrati__

Sunri'f 6St Sunrt I? 1 TEMPER.i rURK —.Not. ]fk. 19:U— Y a. m 47 t p, m. ....... 6.1 —Today— Sa m. 40 HI a m 13 Ya rn 41 11 m. Ha m. li 'i Noon) It oam 42 Ipm 4.3 BAROMETER 7 a m. 30.20 1 p. m 30 IS Precipitation 24 hrs cndinr 7 a tr. no Total precipitation since Jan 1 35.45 Deficiency since Jan 1 09 OTHER CITIES AT 7 A M. Station. Weatije: 8.. r Temp, Amarillo. Tex Cloudy 29 00 44 Bismarck N D Cloudy 29 S3 .70 Boston Rain 29 66 34 Chicago Cloudy 30 2' 40 Cincinnati Cioudv 30 23 40 Denver Clear 29 '8 30 Dodge City. Kas Cloudy 29 82 44 Helena. Mont. .... Clear 30.02 24 JacksoniUle. Fla. ... Clear 30 14 4fi Kansas Citv. Mo .... Cloud' - 30 02 40 Little Rock. Ark. ... Clotuiv 30 24 40 Los Angeles PtCldv 30 06 50 Miami. Fla Clear 30 06 60 Minneapolis Cioudv 30 04 38 Mobil*. Ala Clear 3' 23 New Orleans Clear 30 22 44 New York PtCldv 29.68 38 Okia Citv. Okla Cioudv 30 00 44 Omaha. Neb. ...... Rain 29 98 36 Pittsburgh Cioudv 30 16 34 Portland. Ore .... Cloudy 29 98 40 San Antonio. Tex. .. . Rain 30 06 50 San Francisco Clear 30.00 46 St. Louis Clear 30 24 34 Tampa. Fla Cloudy 30.12 50 Washington, D C . . Clear 29 94 42 CITY LIBRARY TO HONOR CARNEGIE Exhibit to Recall Gifts of Famed Capitalist on Birthday. Th. one hundredth anniversary of tlie birth of Andrew Carnegie, whose money helped establish five branches of the Indianapolis public library, is to be observed with programs and exhibits at the Central Library the week of Nov. 25. Carnegie was 15, a messenger boy. when he first had access to worthwhile books in the library of Col. James Anderson. Pittsburgh. Col. Anderson acted as librarian one day a week to give working boys a chance to use his books. Years later when Carnegie had amassed his great fortune in the steel industry, he gave $.50,000,000 to start public libraries throughout the United States. lin (O.) police station, Buick stolen from a local garage, strange men who visited the Dean home at Traders Point and holdups of tw r o local dairies during the early part of 1933 —are part of the state's case

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VANNUYS OPENS SIZZLING DRIVE ON CHAIN SHOPS Senator Announces Series of Amendments to AntiTrust Laws. (Continued From Paso One)

millions to the chains annually, the Hoosier Senator asserts that it is time for state and Federal governments to rescue the independent storekeeper. Drafts loophole Bills Guided by the suggestions and recommendations of the FTC chain store investigation reports, he is drafting bills to close the loopholes in the Clayton Act "Among other proposed remedies, these bills will provide that all corporations which sell merchandise in interstate commerce to chain stores or their intermediaries, report to FTC the facts concerning prices, terms, discounts, allowances, quantities, grades, cost of production. selling and service." VanNuys explained. "The commission will be authorized to order the modification or discontinuance of the terms of such sales if found to be unfair or unreasonable. This provision adds strength to Section 2 of the Clayton Act. “The provisos of Section 2. however. place a very serious handicap on the effectiveness of such section. In effect, they legalize discrimination in price on account of difference in the grade, quality or quantity of the commodity sold or where | such discrimination makes only due I allowance for difference in the cost of selling or transportation or is made in good faith to meet competi- ; tion. To Strike Out Proviso “Through the loophole of this proviso, it has been almost impossible to invoke Section 2 of the Clayton Act against the chain store system. Present pending bills retain this proviso. The bill I intend to introduce will strike it out. “This will leave Section 2. in plain, understandable terms, as a declaration that discrimination in price between different purchasers is unlawful, where the effect of such discrimination may be to substantially lessen competition or tend to create a monopoly. “With such a statute, the FTC or any other enforcement agency may act effectively.”