Indianapolis Times, Volume 47, Number 294, Indianapolis, Marion County, 17 February 1936 — Page 1

ISCfUPPS - HOWARD |

TVA IS UPHELD BY SUPREME COURT

OHIO IS NEAR FLOOD STAGE AT EVANSVILLE Stream Is Expected to. Pass Overflow Level There Tonight. 3 BOATS THREATENED River Workers Battle to Save Craft From Ice Gorge. By United Press EVANSVILLE, Ind., Feb. 17.- The Ohio River was rapidly approaching flood stage today. The river stage early today was reported at 33 feet .4 of an inch. It probably will pass the 35-foot flood level tonight. River workers are fighting to save a wharf boat barge and a towboat from an ice gorge which extends to Uniontown, Ky., where the river is frozen solid. The gorge is expected to hold for several days due to the low temperatures. Cold Is to Follow Snow A thick blanket of snow fell over Indianapolis today as a forerunner of anew zero wave from the Northwest. expected to hit here tonight. A total of 2.3 inches of snow had fallen this morning at 6:30. It is expected to continue through tomorrow. The City Street Department assigned 300 men to keep the streets clear. The temperature was 17 at 1 this afternoon. Railroad companies called for extra mqji to keep their roads open, and the utilities took steps to keep service open against the blanket of snow. Capt. Ed Helm announced this afternoon that he would order the arrest of all persons who did not have their sidewalks eleared of snow in 24 hours. He said 28 persons had been injured by falling on snowcovered ice today. Comparatively comfortable temperatures have marked the last 24 hours. There were many casualties in cold-weather accidents, with the thin fluff of snow over the ice making it hazardous for both pedestrians and motor traffic. Henry Dunbar. 58. of 1631 Ludlowav, who fell Saturday and lay for approximately eight hours in the abandoned engine room at the Brookside Lumber Cos., Commerce and Massachusetts-avs, died Saturday night of the effects of the ex(Turn to Page Three) SABOTAGE SUSPECTED BY AGRICULTURE HEADS Point to Spread of Tuberculosis in Trize Dairy Herds. By l'nitrd Press WASHINGTON, Feb. 17. —Department of Agriculture officials today investigated suspicions of sabotage designed to ruin the high standing of the department's national research center in Maryland. Some officials said they were convinced that sabotage was responsible for the recent spread of tuberculosis in one of the prize dairy herds at the Beltsville <Md.) center and for the slaughter of two young cows by an apparently maniacal killer. However, they have not yet any suspicions as to the person responsible. FLIER. TRUST COMPANY NAMED IN SENATE QUIZ Committee Discusses Revaluation in Brazil in 1932. By l'nitrd Press WASHINGTON, Feb. 17. —Names of Leigh Wade, former U. S. Army round-the-world flier, and of the Guaranty Trust Cos. of New York, were drawn into discussion of, the 1932 Brazilian revolution today before the Senate Munitions Committee. Wade was disclosed to have represented the Sao Paulo (revolutionist) government in New York as a buyer of arms and ammunition. Stephen A. Raushenbush, chief investigator, said the Guaranty Trust Cos. “must have known that it was helping to finance the revolutionists,'’ because it handled most of the $1,115,000 placed at Wade’s dis- j posal. SWANSON MUCH BETTER AFTER BRIEF RELAPSE Secretary Shows Real Improvement, I Hospital Announces. By Vnitrd Press WASHINGTON. Feb. 17.—Secretary of the Navy Claude A. Swanson, in a serious condition for several days as a result of a fall 10 days ago, was reported “considerably improved" today. Physicians at Naval Hospital s?ud ! Mr. Swanson was resting well after a relapse during which little hope for his recovery was held and that “real and permanent improvement has continued.'* IS Hurt in Theater Riot By Vnitrd Press YOUNGSTOWN, 0., Feb. 17 Thirteen persons were recovering today from injuries received yesterday when cries of "fire’’ stampeded a theater crowd of 1000. None of the 13 was Injured seriously.

The Indianapolis Times FORECAST: Snow tonight and tomorrow with cold wave probable; lowest temperature tonight about zero.

VOLUME 47—NUMBER 294

The Dissent

By Vnitrd Press WASHINGTON, Feb. 17. ' The dissent prepared by Associate Justice Mcßeynolds today bitterly denounced the TVA. “The record leaves no room for reasonable doubt that the primary purpose was to put the Federal government Into the business of distributing and selling electric power throughout certain large district,” McReynolds said, “to expel the power companies which had long serviced them and to control the market therein.” Mcßeynolds quoted from various TVA reports and documents in defense of this contention. He quoted the opinion of the late Federal District Judge William I. Grubb, who heard the test case when it was first brought and ruled TVA unconstitutional. “I think the trial court reached the correct conclusion and that its decree should be approved,” Mcßeynolds said. “If under the thin mask of disposing of property the United States can enter the business of generating, transmitting and selling power as, when and wherever some board may specify, with the definite design to accomplish * ends wholly beyond the sphere marked out for them by the Constitution, an easy way has been found for breaking J .own the limitations heretofore supposed to guarantee protection against aggression.”

JOSEPH PLEADS SELF-DEFENSE Officers Fired First, Says Quinnette Suspect in Murder Trial. BY JERRY SHERIDAN Times Staff Writer GREENFIELD, Ind., Feb. 17. Donald Joseph, escaped convict, attempted to establish today a motive of self-defense in the fatal shooting of Detective Orville Quinnette in an Indianapolis apartment Dec. 7. Testifying in his own behalf, Joseph said Quinnette opened fire on his pal, Paul Pierce, as he entered the apartment. Both are charged with first degree murder. “When the two men (Detective Quinnette and his partner, Russell Chatham) entered the room, Paul asked, 'Where are your credentials?’ Quinnette answered by shooting,” Joseph testified. “We never saw their badges or knew they were detectives. Chatham reached for his gun, and I grabbed him. He shot me, and I begged him to stop because I didn't have a gun.” On cross-examination, Joseph admitted that he and Pierce held gay parties in the Hazel Dell apartment, I2th-st and Park-av, Indianapolis, after the two escaped from the Indiana State Prison. He said he was placed in a “sweat box” at police headquarters and denied medical aid unless he confessed. D. J. Parsons, Federal Bureau of Investigation ballistics expert, said the fatal bullet had been shot from a revolver found in the apartment after the gunmen fled. He was the final state’s witness. Pierce to Take Stand Pierce, who if, alleged to have shot Quinnette, is to be placed on the stand this afternoon, defense counsel said. 80,000 ETHIOPIANS ROUTED BYJTALIANS Fascisti Win ‘Biggest Victory’ of War. By l'nitrd Press FIELD HEADQUARTERS. ITALIAN NORTHERN ARMY (Via Asmara, Eritrea), Feb. 17. —ltalian regulars and Fascist militiamen mopping up the cloud-veiled, sad-dle-shaped hill of Amba Aradam u>day after their biggest victory of the Italian-Ethiopian war. The remnants of a demoralized Ethiopian force of 80.000 men are trying to sneak in small groups through the Italian lines to join the main armies to the south while the jubliant Italians toil over the rocky hill, searching its many caves. Before the Italians lies a clear path to the rugged mass of Amba Alagi, 18’i miles farther south, which Is expected to be the next objective and perhaps the final one before the rains of mid-March. The Italians command the fertile and strategic Enderta region before Makale and control all the passes to the Tembien region behind their lines in which warriors of Ras Siyoum lurked for months. MILK PRICE IS FIXED FOR FEBRUARY PERIOD Distributors Given Rates for 4 Per Cent Butterfat. Prices to be paid for milk of 4 per cent butterfat content by distributors for the period Feb. 1 to 15 were announced today by Leon C. Coller, In'dlanapolis milk administrator. Prices are $2.20 a hundredweight, Class I; $1.84, Class 11, and $1.62. Class 111. ,

STOCK PRICES BREAK BADLY AFTERRULING Confusion Reigns as N. Y. Traders Unload Blocks of Utilities. WHOLE MAFfKET SHAKY Announcement of Court Decision Turns Day Into Rout. By United Press NEW YORK, Feb. 17.—A soaring stock market was turned into a disorderly rout today ‘when the Supreme Court found in favor of the government in the Tennessee Valley Authority case. Prices of utilities had been carried to new highs at gains ranging to 10 points on the Stock Exchange and to more than 3 points on the curb. Utility bonds had been whirled up also as Chief Justice Charles Evans Hughes read the lengthy decision. Tickers fell five minutes behind. Then, without knowing of the decision, traders became nervous. Word came from the floor that prices were under those on the tickers. Selling Increased. Then just before the actual decision finding for the government the market had steadied again. Traders Dump Utilities Announcement of the decision turned the market into a wild affair. Traders dumped utilities overboard. Other sections of the list went down with them. Tickers were far behind. All the early gains were lost and substantial losses substituted in many instances. Consolidated Gas dropped from its high of 38% tp 35 1 2 where it was off ■%. Commonwealth & Southern which up to 1 p. m. had turnover of 636,500 shares, many sales in blocks of 1000 to 10,000 shares, fell back from 5% to 4. Peoples Gas dropped more than 3 points from its high. North American dropped more than 4 points. Curb in Confusion On the curb confusion was as great as on the big board. Sell orders came into Electric Bond & Share so rapidly that specialists were unable to fix a price on the stock. Finally it sold 20,000 shares at 18%, off %. Other utilities on the curb broke sharply. Utilities on the bond market had a sharp reaction. Other sections of the market had been carried up with the utilities. They broke subsequently. United States Steel touched 61% and fell to 59%, where it was off % net. Western Union dropped 2 points from its high. Case lost 2 points, but was still 3% points above the previous close. SENATE PUSHES FOR VOTE ON NEUTRALITY Extension Move Appears to Doom New Measure. By L'nitrd Press WASHINGTON, Feb. 17.—The Senate began consideration today of a resolution extepding present neutrality legislation, and prepared to push it to passage in the face of determined but apparently hopeless effort to enact a strict, permanent bill. The measure was called up unexpectedly by Chairman Key Pittman of the Foreign Relations Committee, and brought immediate protest front Minority Leader Charles L. McNary of Oregon, who complained that Senators proposing a stricter law were absent. An almost identical neutrality resolution was expected to come up for debate in the House later today under a strict “gag” rule limiting debate to 40 minutes.* STERN PROSECUTION WINDS UP ITS CASE Last Government Witness Called to Stand. The government this afternoon called its last witness in the mail fraud trial of 11 officers and salesmen of the Louis Stem & Cos. investment firm in Federal Court. The witness, David T. Nicoson. Security Trust Cos. official, testified that Earl Warren, local manager for the firm, obtained a lease on an option to purchase 84 acres of land near Mars Hill. Other witnesses have testified that Stern salesmen represented that the company owned the property and sold lots to investors. Following identification of exhibits, the defense is expected to open its case late this afternoon.

MONDAY, FEBRUARY 17, 1936

Vast Area Where Power Project Affects Millions

Vagt extent of the f or p ower S uppl y, flood control, and navigation, is graphically shown a / on this ma P> prepared by Tennessee Valley Authority engineers, on which are given locations of the P* . '/ S' Generators now are turning at one dam—Wilson, on the Tennessee River—sending power to Tennessee and —/ V" j / y* Mississippi cities. Giant transmission lines are unde r construction from Norris Dam, nearing completion on the 9i inch River > 400 miles upstream from Wilson. Fifteen miles above Wilson Dam work is being rushed /C on Wheeler Dam, and three other great barriers are included in the TVA project—at Aurora near the k Tennessee's mouth, at Pickwick Landing, and on the Hiwassie, which flows into the Tennessee above Chat-

RED FLAG FLIES IN SPAM RIOTS State of Alarm Declared as Fierce Disorders Sweep Nation. By United Press MADRID, Feb. 17.—The red flag flew in Madrid and Barcelona today during grave disorders resulting from yesterday’s general election in which the left wing parties claimed to have won .a majority in parliament. A state of alarm was declared throughout Spa n by the cabinet. One person was killed and four wounded in a clash with demonstrators and police in Madrid. The crowds in Barcelona, chief city of Catalonia, took possession of the city for a short time and forced the Catalan government to reinstate the old city council, thrown out of office for its part in the October (1934) revolt. The red flag flew here over the Casa Del Pueblo, headquarters of the Socialists. It was waved by crowds here and in Barcelona as they shouted for amnesty. Warders Held as Hostages The Madrid demonstrators headed for the jail. Several thousand gathered at the Puerto Del Sol in the center of the city and shouted for political amnesty. Laborers at Madrid University laid down their tools and declared they were starting a strike. The mutineers at Cartagena held two warders as hostages. The fire department was called out to aid police at the prison and to fight the fire. The prison was surrounded by guards. PANTAGES IS DEAD; THEATER MAGNATE Ex-Immigrant Boy Made Millions in Vaudeville. By United Press HOLLYWOOD. Feb. 17.—Alexander Pantages. an immigrant boy who amassed one of the world's largest theater fortunes through the medium of vaudeville, was found dead in bed today, apparently the victim of heart disease. An autopsy was ordered. Dr. Leland Chapman said he had been dead several hours. The body was discovered by John Gerkin, the gardener, dispatched to his room when he failed to come down to breakfast. TEACHER IS KILLED IN SCHOOL BOILER BLAST Several Pupils Are Injured, Part of Structure Destroyed. By United Press HORN LAKE, Miss., Feb., 17. Mrs- Agnes Mansfield, music teacher, was instantly killed and several pupils injured today when the boiler at the local high school exploded. The music studio, directly over the furnace room, was wrecked, tha walls collapsing on the teacher. Parts of the boiler were blown through the walls of the gymnasium 50 yards away.

Vast extent of the TVA project, for power supply, flood control, and navigation, is graphically shown on this map, prepared by Tennessee Valley Authority engineers, on which are given locations of the mighty dams, the cities to which power will flow, the transmission lines, and the valuable mineral deposits. Generators now are turning at one dam—Wilson, on the Tennessee River—sending power to Tennessee and Mississippi cities. Giant transmission lines are unde r construction from Norris Dam, nearing completion on the Clinch River, 400 miles upstream from Wilson. Fifteen miles above Wilson Dam work is being rushed on Wheeler Dam, and three other great barriers are included in the TVA project—at Aurora near the Tennessee's mouth, at Pickwick Landing, and on the Hiwassie, which flows into the Tennessee above Chattanooga. t

RESTAURANT OWNERS LOSE TAX CUT FIGHT Petition for Lower Gross Income Rate Denied by Judge Cox. Circuit Judge Earl R. Cox this afternoon denied a petition of 25 local restaurant operators asking that they be compelled to pay only one-fourth of 1 per cent gross income tax. The operators contended they were manufacturers of food and therefore not liable to pay 1 per cent. Judge Cox also denied a petition for refund of the difference between one-fourth of 1 per cent and 1 per cent in taxes already paid. COUGHLIN'S CHARGES DENIED BY O'CONNOR Priest Is Called ‘Libelous Intruder in Politics.’ By United Press WASHINGTON, Feb. 17.—Rep. Martin L. Sweeney (D„ O.) informed the House today that the Rev. Charles E. Coughlin would come to Washington tomorrow and dare Rep. John J. O’Connor, (D. N. Y.,) to carry out his threat to “kick” him from the Capitol to the White House. By United Press DETROIT, Feb. 17.—The Rev. Charles E. Coughlin, radio priest, and Rep. James J. O'Connor (D., N. Y.), chairman of the House Rules Committee, were parties to a namecalling controversy today. Father Coughlin accused Mr. O'Connor of sponsoring a “fraudulent” bill in Congress and of killing the Frazier-Lemke farm mortgage bill. Mr. O’Connor, denying the charges, wanted Father Coughlin to go to Washington so he could “kick him from the Capitol to the White House.” Father Coughlin opened up on Mr. O'Connor in his weekly radio talk. Mr. O’Connor hinted at the possibility of seeking legal redress for remarks he asserted were slanderous. “He's been a disgrace to my church and a libelous intruder in politics since coming to this country from Canada a few years ago,” said Mr. O'Connor. “I’m not even sure he’s a citizen.’ ROBINSON, HISTORIAN, DIES OF HEART ATTACK Internationally Famous Philosopher Passes at 72 in New York. By United Press NEW YORK, Feb. 17.—James Harvey Robinson, outstanding historian and internationally famous philosopher, died yesterday in his home after a heart attack. He was 72. Hundreds of thousands of students and teachers of history recognize him for his “Introduction to the History of Western Europe.” Published in 1903, it has been a standard *' :t for hundreds of history and sociology classes. FIRE DAMAGES CHURCH Smolders Undetected During Service in Westfield Edifice. By United Press WESTFIELD, Ind., Feb. 17.—Approximately SIOOO damage was caused at the 53-year-old Westfield Friends Church yesterday by a fire which had smoldered undetected throughout the morning worship. An overheated furnace was be- ; lieved responsible.

3 TRY TO MAKE BRUNOjONFESS Famous Persons Strive for New Version; Resentence Due Tomorrow. By United Press TRENTON, N. J„ Feb. 17.—Three of America’s headline names sought today to force a confession from Bruno Richard Hauptmann as the convicted murderer of the Lindbergh baby awaited the setting of a third date for his electrocution. The new date was expected to be established tomorrow when the Attorney General’s office plans to make application to Justice Thomas W. Trenchard to sign anew death warrant. Originally the Attorney General’s office intended to make application today but press of legislative matters indicated the delay. The three headliners whose entente became apparent at this late date were Samuel Leibowitz, one of the nation's most successful criminal attorneys, Mrs. Evalyn Walsh McLean, a multi-millionaire, and Gov. Harold G. Hoffman of New Jersey. Mr. Leibowitz cross-examined Hauptmann like a prosecuting attorney for almost four hours in the state prison death house yesterday. Then he talked with Gov. Hoffman for three hours. “We are making progress toward getting to the bottom of this case,” he said when he left the prison in darkness and a drizzling rain. ROY D. CHAPIN, FORMER CABINET MEMBER, DIES Pneumonia Is Fatal to Commerce Secretary Under Hoover. By United Press DETROIT, Feb. 17.—The boy who quit college 35 years ago to learn the infant automobile industry “from the ground up,” Roy D. Chapin, president of Hudson Motor Car Cos., and former Cabinet member, was dead’here today. Mr. Chapin, Secretary of Commerce under President Hoover, had been ill six days with pneumonia when death came last night. Ho would have been 56 years old Feb. 23. Funeral services have been set tentatively for Wednesday. Civic-minded, Mr. Chapin was a director of the Detroit Symphony Society and the Detroit Community Union. He is survived by the widow, three sons and three daughters. SHIRT FACTORY GUARDS PAID FOR STRIKE DUTY S2IOO Distributed by New Albany Clerk to Special Deputies. By United Press NEW ALBANY, Ind., Feb. 17. Under court order, city clerk Joel Ford today distributed S2IOO to spe- | cial deputies employed to guard the M. Fine & Sons shirt factory during recent labor disturbances. Judge John M. Paris granted a ! request by police commissioners to : compel payment. Originally Mr. Ford had declined to make payments because of a question as to their legality. MAYOR IS ILL AT HOME Kern Expected to Return to Office Tomorrow Mayor Kern today was confined to his home with a slight cold. He is expected to return to his office j tomorrow.

Entered as Second-Class Matter at PostoiTice. Indianapolis. Ind.

HIRAM PERCY MAXIM DIES IN COLORADO Inventor of Gun Silencer Succumbs to Throat Ailment By United Press LA JUNTA, Colo., Feb. 17.—Hiram Percy Maxim, member of a famous family of inventors, died in Mennonite Hospital today from a throat ailment. He was 66. Mr. Maxim, who was en route to California with his wife from their Hartford (Conn.) home was taken from a train here last Thursday when he became ill. He was the third bearer of his name to achieve fame through his inventive genius. He was the inventor of the Maxim silencer, which revolutionized the firearms industry. His father, Sir Hiram Stevens Maxim, invented the Maxim gun, first practical machine gun. An uncle, Hiram Maxim, introduced maximite, for many years the most powerful of all explosives for armorpiercing projectiles. ARMY COURT DENIES PLEA OF M'MULLEN Trial for Misconduct to Begin Today. By United Press WASHINGTON, Feb. 17.—A* military ccurt of II Army officers, their swords criss-crossing the horse shoe court-martial table, thwarted efforts of defense attorneys today to quash misconduct charges against a fellow officer, Col. Joseph I. McMullen. The military judges rejected motions to strike from the record specifications charging McMullen with violation of Army ethics and honor in allegedly accepting fees and rewards from Joseph Silverman, dealer in surplus army supplies. McMullen was charged with accepting the fees while on active military duty as —adviser to the Assistant Secretary of War, and while Silverman was seeking contracts and concessions from the War Department. Taking of testimony was expected to begin at the court-martial’s afternoon session. FOOD STRIKER ‘STARVED’ ON MILK DIET, HE SAYS Early Promise of Solid Food Cheers Disgruntled Heir. By United Press FRANKFORT, Ind., Feb. 17. George Everett Farrell, recovering slowly in a hospital from a selfimposed hunger strike, was heartened today by the prospect of receiving solid foods again. The 30-year-old unemployed radio technician, who ended his 288-hour strike last Friday, revolted against a milk diet yesterday and complained of being “starved to death.” Farrell started the hunger strike in an effort to obtain a redistribution of the $24,700 estate of his grandfather, George Humberg, who died in 1932. TIMES INDE)T Page Amusement* 4 Births, Deaths 13 Bridge *.,. 7 Broun 9 Comics 15 Editorial 10 Financial 11 Merry-Go-Round 9 Mrs. Roosevelt 6 Pegler f 9 Radio 2 Serial Story 7 Sports 12-13 Want Ads 13-14 Woman’s Pages ........ N 6-7

FINAL HOME l PRICE THREE CENTS

NEW DEAL IS VICTORIOUS BY 8-TO-1 RULING Every Issue in Power Project Held Legal by Justices. HUGHES READS VERDICT Concurring Opinion Given by Brandeis on Behalf of Colleagues. By United Press WASHINGTON, Feb. 17. The Supreme Court today upheld constitutionality of the New . Deal’s vast Tennessee Valley Authority experiment on all points placed in issue in the present test. The vote of the Supreme Court to uphold the general constitutionality of the TVA was eight to one. The lone dissenter was Justice James Mcßeynolds. The opinion of the court, read by Chief Justice Charles Evans Hughes, was so sweeping that New Deal power and legal experts immediately asserted it had given the right-of-way to the New Deal’s other vast power experiments, such as Grand Coulee, Bonneville and Fort Peck. Justice Louis D. Brandeis, in a concurring opinion, said that he, together with Justices Harlan F. Stone and Owen J. Roberts and Benjamin N. Cardozo, concurred in the opinion, but believed that the Alabama Power Cos. stockholders had no right to sue. New Deal Hails Ruling “The ruling,” according to Edward J. Foley Jr., chief PWA counsel, “upheld the right of the government to improve streams for navigation by dam projects. “It declared constitutional the government’s program to sell the power the projects created by water storage.” In succinct fashion, Hughes upheld the following rights of the government: 1. The right to build Wilson Dam, key structure of the TVA, under war powers and powers of aiding navigation. 2. The right to sell power produced at such dams. 3. The right to build transmission lines to transport such power to a reasonable market. The long-awaited opinion, delivered on the sixtieth day since tha case was argued before the court, was believed by Administration leaders to clear the way to wide and scattered “little TVA” developments. The Hughes opinion made clear that the court found no merit in any of the points raised by TVA opponents. “Certainly the Alabama Power Cos. has no constitutional right to insist that it shall be the sole purchaser of the energy generated at the Wilson Dam,” said Hughes, “that the energy shall be sold to it or to go to waste.” Argument Termed Irrelevant Hughes described the picture drawn by TVA opponents of the prospect that the government might use TVA power for factories that would compete with private industry. “The picture is eloquently drawn, but we deem it to be irrelevant to the issue here. The government is not using the water power at Wilson Dam to establish any industry or business,” said Hughes. “It is not using the energy generated at the dam to manufacture commodities of any sort for the public. Uphold U. S. Contention The government is disposing of the energy itself which simply is the mechanical energy, incidental to falling water at the dam, converted into the electric energy which is susceptible of transmission. “The question here is simply as to the disposal of that energy. And the government rightly conceded at the bar, in substance, that It was without constitutional authority to acquire or dispose of such energy except as it comes into being in the operation of works constructed in the exercise of some power delegated to the United States. “As we have said, these transmission lines lead directly from the dam, which has been lawfully constructed, and the question of the constitutional right of the government to acquire or operate local or urban distribution systems is not involved.” Future Tests M3y Come The court did not go into the authority of the government to finance rural power lines and municipal power lines, since this point was not at issue in the present case. It appeared from the opinion that the possibility of future tests of some phase of the government's power program remained. How(Turn to Page Three) * i)