Indianapolis Times, Volume 47, Number 307, Indianapolis, Marion County, 3 March 1936 — Page 1

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CHOOSE PEACE OR EMBARGO, ; ITALY IS TOLD c *ranco-British Prooosal Is Sent to Belligerents by League. ASKS END OF WARFARE Urged to Begin Negotiations at Once; Duce May Accept, Is Hint. By Unite/1 Press GENEVA, March 3.—The League of Nations Committee of 13 today adopted a resolution appealing to Italy and Ethiopia to make a peace agreement “within the framework of the League.” The resolution, offered by Great Britain and France, was coupled with an appeal to the warring nations to begin negotiations at once with a view to ceasing hostilities. The committee, comprising all members of the League Council except Italy, then voted to reconvene on March 10. Italy and Ethiopia thus were given one week to consider the appeal for peace. If Italy rejects it, the League’s General Committee of 18 on penalties Is expected to proceed promptly to impose an embargo on shipments of oil to Italy. The Franco-British resolution was adopted at a session which lasted only 15 minutes. Although the appeal was regarded as the League's last alternative to imposition of an oil embargo, it avoided all appearances of being an ultimatum to Italy by not directly fixing a time limit for a reply and by not insisting that Italy cease hostilities before peace negotiations are started. The resolution was described officially as being “a pressing appeal to the two belligerents for immedifte opening of negotiations within he framework of the League and thgr spirit of the covenant.” In anticipation of probable rejection of the proposal by Italy, (he League’s committee of oil experts’ will meet during the week to devise machinery for application of an embargo. The penalties committee of 18 also is to continue work on means of reinforcing existing sanctions. There was some feeling here that Premier Mussolini might agree at least to discuss peace proposals. He could thus seek to prolong negotiations indefinitely while his army advances in Ethiopia and the League delays the oil embargo. Naval Accord Near Sty United Press LONDON, March 3.—Almost the final technical obstacle to th? initialling of a naval treaty among Britain, the United States and France was cleared away today when France accepted a limit of 35,000 tons and 14-inch guns for battleships. The treaty permits the building of an unlimited number of battleships until the end of 1940. TRADING TURNS DULL ON STOCK EXCHANGE Roosevelt’s Tax Recommendation Studied by Wall StreetHi/ Un ilrd l'r< ss NEW YORK. March 3.—Stock trading turned extremely dull today ns traders studied President Roosevelt’s tax recommendation to Congress. Prices held about steady after early gains ranging to more than a point. U. S Steel common reached anew high since 1933 at 66 \ in early trading and lost only part of the point gain General Motors went to a new high since 1929 at 61 up l’. and Chrysler maintained more than a point gain. $641,006 GAIN SHOWN IN BUILDING PERMITS Januarv-Febriiary Increase Over Last Year Reported. Building permits for the period Jan. 1 to Feb. 29 represented an increase of $641,006 over the corresponding period last year. Building Commissioner William F. Hurd told the Safety Board today. Permits for the week ending Saturday, however, showed a decrease of $23,572 compared to the corresponding week last year. Mr. Hurd said. A total of 176 permits. 1 representing $32,782, was issued last r week. BITTEN BY DOG. LOCAL POLICEMAN IS TREATED Chow Had Rabies When He Attacked Sergt. Dever. Sergt. William Dever, assigned to the Indianapolis Humane Society, was ordered to take Pasieur treatments today as the result of being bitten by a rabid dog yesterday. Veterinarians reported today that the chow, which died shortly after it was taken to the dog pound, had a positive case of rabies. The dog was captured in the 1900 block, E 38th-st. FINKLESTEIN FINED SSOO Watson’s Campaign Manager Failed to File Tax Return. Hli United Press CHICAGO, March 3. Jacob Finkelstein, campaign manager for former Senator James E. Watson of Indian*, today was fined SSOO for failure to file income tax returns in 1930 and 1931. Charges of failure to pay income tax for those years were dismissed.

The Indianapolis Times FORECAST: Fair and warmer tonight; tomorrow increasing cloudiness.

VOLUME 47—NUMBER 307

Small Change Financial profit from Indianapolis rackets struck anew low today with the introduction of the playing card sales “game.” Edward Fuller of Xnox, Ind., told police that he bought two decks of cards from a man at Meridian and Washington-sts. When he opened the card boxes he found they contained a short, cold deck consisting chiefly of hearts. The aggregate lass was 10 cents—s cents the package.

TRAFFIC LIGHT CHANGE MADE New Moves to Prevent Tieups at Downtown Intersections. Improvement in the traffic light setup in Indianapolis as an accident prevention move was outlined today by the Safety Board. • The lights on Washington-st at Alabama and East-sts were ordered moved into the safety zone sections and another light is to be installed at the Rockville-rd and W. Washington-st, after a conference with members of the Indiana State Highway Commission. The downtown light change will prevent tieups at the intersections. Mayor Kern presented the recommendation for the West Side light. A survey also is to be conducted to determine whether a light should be installed at the five-way intersection at Rural-st and Southeasternav. LA GUARDIA ACTS IN NEW CRISIS Summons Leaders as Union Threatens to Paralyze Tallest Buildings. ll’/ I nitrd Pres* NEW YORK March 3.—Mayor F. H. La Guardia worked desperately today to bring about a settlement of the building service workers’ strike as union leaders threatened to call out employes in the heart of Manhattan—the district from 42d-st north to 59th-st. Representatives of the building operators and strike leaders were called again to the Mayor’s office. Ben Golden, assistant director of the National Labor Relations Board, acted as the Mayor’s representative. Should the strike spread to the region between 42d and 59th-sts it would affect some of the tallest structures in the world, including the Chrysler, Chanin and Graybar Biddings and Rockefeller Center. One of the first developments of the day was an attempt by a flying squad of 30 strikers to attempt to paralyze building service at the Stock Exchange as it opened for trading. A detachment of the Exchange’s private police forced the strikers to disband. Strike Leader James J. Bambrick claimed that at least 71,000 workers had quit more than 5650 buildings by noon. Police, however, estimated that only 1100 buildings had been affected. GANG BULLETS KILL BROTHER OF M'GURN Police Believe De Mory ‘Knew Too Much.’ Hi/ United Press CHICAGO. March 3.—Anthony De Mory, who “knew too much,” followed his brother, Machine Gun Jack McGurn, to a slab in the county morgue today. De Mory, third member of the hot-blooded Sicilian family to fall before spitting gangland guns, was shot last night as he played cards in a Chicago “recreation” hall. Police agreed he must have died because his brother’s assassins feared he might talk. De Mory was an innocent victim of circumstances. He had never taken an active part in the gang business that brought his brother fame as a Capone machine gunner. Tony was shot by two men who entered the poolroom, firing nine times. M'CART IS REAPPOINTED Public Service Commission Chairman to Serve Four Years. Gov. McNutt today announced the reappointment of Perry McCart, Paoli. as chairman of the Public Service Commission for another four-year term.

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$30,000,000 COST SEEN ON JOB AID BILLS Figure Is Estimate of What Employer and Employe May Pay Eventually. ANNUITY U. S. FUNCTION Workers Retirement System Does Not Require Action by Assembly. This U the second of a series of stories outlining Indiana’s social security problem and proposed legislation that is to effect it during the special session of the Legislature, opening Thursday. BY JAMES DOSS Unemployment insurance and Federal annuity taxes contemplated under the social security program on which Indiana is to embark this week, eventually may cost the ! workers and employers of the state more than $30,000,000 annually. Indiana is not called upon to do anything about the Federal annuity plan that will provide monthly pensions for employes on retirement at 65. That is a transaction between the employer and the Federal government, with the employer as his workers’ agent. Neither are the Federal annuity benefits for persons 65 to be con- ! fused with old-age pensions on j which the Indiana General As- ! sembly is to begin action this week. The old-age pension is a benefit for aged indigents. The annuity | is an investment by the worker and ' his employer for the former’s benefit. Three-Part Program Outlined The three-part social security program being undertaken by Indiana deals with old-age pensions, job insurance and maternal and child health. Every Indiana employer of eight or more persons (with a few exceptions) is to become liable April 1 for nine-tenths of 1 per cent tax on his pay roll for the succeeding nine months of 1936. To receive 90 per cent credit on the Federal tax to which he would be liable if the state did not enact such legislation. the employer may elect to pay also for the-three-month period which started Jan. 1. Employer payments are to increase to 1.8 per cent in 1937 and to 2.7 in 1938 ana 1939. The much discussed “Merit Plan,” an inducement for the employer to stabilize (Turn to Page Three) KERN PREDICTS CUT IN LOCAL GAS RATE Efficiency Increased, He Tells Women’s Council. Mayor Kern this afternoon said that directors of the Citizens Gas and Coke Utility foresaw a “substantial reduction” in gas rates to consumers within the year. He spoke at the meeting of the Indianapolis Council of Women in L. S. Ayres and Cos. auditorium. “There has been an increase in efficiency in both the operation and profits since the city took over the Citizens Gas 00. Within a year there should be substantial reductions in rates to citizens,” Mayor Kern said. A settlement of the city’s difficulties with the Indianapolis Gas Cos. and Indianapolis Power & Light Cos. also were predicted by the Mayor. NIPPON GENERALS QUIT AS RESULT OF REVOLT Most of Members of Supreme Military Council Resign. By United Press TOYKO. March 3.—Most of the members of the supreme military council tonight submitted informal resignations to the Minister of War as an aftermath of the revolt of a segment of the army against the government. Those who submitted the resignations were Generals Havashi, Abe, Masaki. Araki, IJeda, Nishi and Terauchi. CONDITION IS SERIOUS A.vdin Fazli Hurt on Head and Body by Falling Bricks. The condition of Ad.vn Fazli. 45, a barber, who was injured when a brick coping fell from a building at 407 W. Washington-st while he was walking in front of the structure, i is regarded as serious at City Hospital today. He is suffering from i head and body injuries.

Kate Has Something to Moon About—a 22-Story Climb!

Kate Smith, radio singer and movie actress, known as ’’The Song Bird of the South, makes no secret of her weight. She weighs—well, plenty. To make matttrs worse when there’s an elevator strike—her offires are on the twentysecond floor. Miss Smith climbed all those stairs—every one—and in the following dispatch she tells about it. BY KATE SMITH (Written for the United Press* YGRK, March 3.—ls you don’t think it’s a job to take Kate Smith up 22 flights of stairs —then you ought to be Kate Smith. Whew! I lost pounds. I know I lost pounds. How was I to know, when I

TUESDAY, MARCH 3, 1936

His Profession A young man stepped jauntily from the prisoners’ bench in Municipal Court today as the bailiff called, “Case of Harry Lynch, charged with burglary and grand larceny.” “What's your proses; .l, young man?” asked Municipal Judge Charles J. Karabell. “Truck driver and burglar,” your honor,” said the prisoner promptly. “You’re charged with burglary and grand larceny,” said Judge Karabell. “Yes. sir, that’s right,” was the quick answer. Lynch, who is 18 and lives at 830 College-av, was bound to the grand jury.

BORAH MAY BE G. O.P I BOI.TER Approaching Primaries in Key State May Determine His Course. BY NED BROOKS Times Special Writer WASHINGTON, March 3.—The approaching presidential primaries in such key states as Ohio and Illinois may determine whether Senator William E. Borah will become the No. 1 “walkouter” of the 1936 campaign. The possibility of a bolt which would put the Idahoa_n in President Roosevelt’s camp has been the topic of political gossip ever since A1 Smith made his threat to take a walkout of the Democratic convention. Some observers see in developments of the last few days the pattern for a Boarh walkout on the Republicans. Although withholding his fire for the opening of the Ohio campaign on March 19, Borah is known to resent the failure of Gov. Alf Landon and Frank Knox to accept his challenge to complete in the Buckeye primary. Action Is Denounced Borah Henchmen contend that Landon and Knox, by boycotting the primary, given their support to the “favorite son” arrangement which Borah has denounced as a hoax for control of delegates by an old guard clique. The Idahoan must now content himself with a fight against Robert A. Taft, designated by Ohio “regulars” as the favorite son. If the Borah slate is defeated in Ohio and the old guard movement is successful in other states where uninstructed delegations are being sought, he may decide that his fight for liberalism within the party is futile, some observers believe. A desertion by Borah also would hinge on the platform to be written by the Cleveland convention, politicians concede. The Senator has served notice he will fight for a liberal platform. Democratic leaders, mindful of Borah’s powerful following west of the Mississippi, have kept the way open for his possible support of Mr. Roosevelt. Borah himself has centered his fire on the reactionary elements in his own party and has avoided the sniping at the New Deal in which other Republican aspirants have indulged. PRISON RULING HELD CURB ON CONGRESS Narrows Interstate Commerce Powers, Is Belief. By United Press WASHINGTON, March 3.—Tne Supreme Court in upholding the Hawes-Cooper prison labor act has nevertheless again whittled down the power of Congress, lawyers believed today. For it distinctly hints that Congress has no constitutional power to divest goods shipped in interstate commerce of the Federal government’s exclusive jurisdiction. The decision upheld the conviction and $25 fine imposed on an Ohio man in an Ohio State Court for offering to sell prison-made goods from Alabama, but it expressly stated that another count of the indictment, charging him with illegally transporting the goods into the state, was not being passed upon. The Hawes-Cooper Act divests such goods of their interstate commerce character, in cases where states pass laws forbidding their transportation and sale, as Ohio has. Urges War Debt Commission By United Press WASHINGTON. March 3 —Senator William G. McAdoo <D„ Cal.) introduced a resolution in the Senate today providing for creation of a foreign debt commission to negotiate anew settlement of war debts owed to the United States.

headed for rehearsal at my Manhattan office, that the elevator boys were going out on strike. I had just come back from Chicago. Besides, I arrived at my office late. Could I sit on the front steps and wait for the boys to settle their arguments. No sir, I had to get to that rehearsal at any price. And what a price it was! I started out quite brightly, saying to myself: “What’s 22 flights to me? Haven't I been bob-sledding and ice-skating and skiing up at Lake Placid practically every week-end this winter?

NEW CORPORATION TAXES PROPOSED BY PRESIDENT

HE CAN’T SEE THE FOREST FOR THE TREE!

HOPE OF NEW STAY FOR BRUNO DIMMED Hoffman-Hague Alliance Is Seen in New Jersey. By United Press TRENTON, N. J., March 3.—A strange web of politics in keeping with the bizarre tradition of the Lindbergh case, enmeshed the fate of Bruno Richard Hauptmann today, A session of the state Legislature last night served to dim the forecast of a second reprieve made earlier by a responsible official. In the maneuvering of the state assembly on a bill seeking to divert highway funds to relief and another to prevent the interim ouster of Col. H. Norman Schwarzkopf, head of the state police, political experts professed to see an alliance between Republican Gov. Harold G. Hoffman and Democratic Boss Frank Hague, Mayor, Jersey City. The Governor, it was said, had agreed to continue against the highway bill —a measure on which he addressed a joint session last night—in return for aid in denying extension of the term of Col. Schwarzkopf whose handling of the Lindbergh case he had characterized publicly as “the most bungling” in history. They are political and personal enemies. LAND SWAP PROPOSED FOR NEW FIREHOUSE City to Ask Co-operation of Assembly Is Indication. Proposal for erection of a firehouse near the Central Indiana Hospital, Tibbs-av and Washing-ton-st, is to be presented at the special session of the Legislature, Safety Board members indicated today. They said the state is to give the city ground in the vicinity in trade for additional ground presented by the city to the state for erection of the Naval Reserve Armory, 30th-st and White River. MILIT~PRICES ARE SET Rates for Last February Period Ranges From 81.65 to 52.20. Milk prices in the Indianapolis area for the delivery period, Feb. 16 to 29, for distributors w’ere announced today by Leon C. Coller, local milk administrator. They are $2.20 a hundredweight for Class I milk. $1.87 for Class II and $1.65 for Class 111.

Am I in training—or am I in training? This is going to be easy!” nun I TOOK the first 10 flights in high. They weren't bad at all. And I met the nicest people. I think all our best people were going up or going down. If I hadn't been in a hurry. I'd have stopped and chatted. They all smiled and waved and greeted me with a cheerful, “Hello, Kate.” The next five flights began getting tougher by the minute and the people I met weren't quite so nice. I wondered if their smiles weren't a little strained. Along about the eighteenth floor, I be-

Entnrf'd n < sf'cnn<l-Y'la*< Matter at Post office, Indianapolis, Ind.

And It’s Still a Problem Gas Company Stockholder Confuses Bookkeepers for 25 Years; They’re Upset Yet.

MEET the man who has the doubtful distinction of having been a bookkeeping problem to officials of the Citizens Gas Cos. for a quarter of a century. He is one W. F. Douthirt, New York. No one seems to know a great deal about Mr. Douthirt except, that he has been a very difficult fellow to deal with. I ; ■ ■

Back on July 31, 1907, Mr. Douthirt bought one share of common stock in the gas company. No one, with the possible exception of Mr Douthirt, knows just why. Maybe it was for reasons of sentiment. Things went all right for a while. No one knew Mr. Douthirt was going to turn out to be a problem stockholder, but he was revealed in his true light in 1911 when the gas company started paying dividends. tt a u MR. DOUTHIRT failed to cash his dividend check. Os course, the check for one dividend on one share of common wasn’t so large that his failure caused great confusion in the bookkeeping system, but company treasurers and controllers do not like to have even small transactions outstanding. Maybe Mr. Douthirt was possessed with the collector's instinct. He proceeded to save all of his dividend checks, ranging in amount from a 31-cent regular to a $5.67 special. Frequent letters from company officials, asking him to cash them, failed to move him. He even held out during the depression. Recently, when the city of Indianapolis acquired the gas company and it became necessary to retire the outstanding stock, Mr. Douthirt finally agreed to get into step with his fellow investors. He mailed in with his one share of stock a stack of 60 dividend checks to be coneolidated into one. However, at last reports he still was doing all right as a problem stockholder. He failed to indorse his stock certificate so it must be mailed back to him for his signature. Company officials are hopeful he won’t have writer’s cramp for another quarter century. ♦ Former Ambassador Dies MADISON. Wis., March 3—Rasmus Bjorn Anderson. United States Ambassador to Denmark from 1885 to 1889, died at his home last night from pneumonia.

gan getting awfully tired of stairs. Have you ever noticed how much alike they look? No variety, you know. All the same. I began wishing I didn’t have to see another step as long as'l lived. I reached the twentieth floor, panting like Mrs. Astor’s pet horse and I have no memory at all of the last two flights. I think my mind went blank. When I came to, I was inside my office talking to my announcer-manager, Ted Collins. I glanced over at the piano. There on the rack was the first song I had to rehearse —“I’d Climb the Highest Mountain.”

CITY GETS SAMPLE OF SPRING WEATHER Wind Blowing From South Sends Mercury to 59. A southerly wind and clear skies brought spring temperatures to Indianapolis this afternoon as swollen streams throughout the state receded. The temperature at 1 this afternoon was 59, which is 24 degrees above normal. Tomorrow, the Weather Bureau says, there will be a cloudy sky, but it will continue warm. Flood conditions over the country were: lowa officials believed the worst threat in their state may come in a few days, if at all. The Illinois River, already at flood stage near Peoria and Beardstown, 111., still was rising. Crushing ice floes tore out six small bridges and ripped the pilings from beneath the main bridge on the highway between Lincoln and Omaha, Neb. PL A N CA N’T CONTROL CROPS, WALLACE SAYS Such Legislation Impossible Under Farm Program, He States. By United Press WASHINGTON, March 3.—Sec-’-tary of Agriculture Henry A. Wallace, on the eve of a series of meetings to set up the new farm aid program, today asserted that production control of individual farm commodities "is simply not possible’’ under the soil conservation plan. Addressing the audience of the National Farm and Home Radio Hour, Mr. Wallace said that officials hoped that supplies of major farm commodities “will be kept in approximate balance with demand” as a mere by-product of “wise land use.” SI3OO IN CASH. JEWELRY IS REPORTED STOLEN Thief Takes Loot From Home of Dr. John A. Pickard. Theft of money and jewelry valued at more than SI3OO was reported to police today bv Dr. John A. Pickard, 2246 N. Illinois-st. Dr. Pickard told officers that the thief entered his home through the office, which adjoins the residence, and stole the money and jewelry from his bedroom. The cash totaled $426 and the remainder consisted of jewelry. Included in tne loot was a pearl ring valued at SSOO by Dr. Pickard. Huge Statue Crushes Workman By United Press CHICAGO, March 3.—A 3000pound statue which toppled on him as he and eight other men attempted to lift it, crushed Kenneth Witter, 25, to death today.

FINAL HOME PRICE THREE CENTS

Revision of Whole Setup Asked by Roosevelt in Message. GIVES 2-POINT PLAN Anticipates Yield Will Give United States Additional $620,000,000. Complete Text, Page 3 By United Press NEW YORK, March 3.—Wall Street today viewed President Roosevelt’s proposal to tax corporate surpluses as favorable on first reading, but withheld market commitments pending further study and congressional action enactment of the recommendations into law. By United Press WASHINGTON, March 3. —President Roosevelt today submitted to Congress the outline of a broad revision of corporate income taxes intended to increase their yield by an estimated $620,000,000 annually and eliminate necessity for permanent farm processing taxes. Mr. Roosevelt presented a twopoint tax suggestion for restoring the budget to balance except for relief expenditures. The program: 1. A graduated tax, estimated by the Treasury to yield $1,614,000,000 for the 1936 tax year, on undistributed corporate income. This would be accompanied by repeal of the present corporation income tax, capital stock tax, excess profits tax and of the present exemption of dividends from normal tax on individual incomes. < Taxes on which repeal was recommended carried an estimated yield of $994,600,000. The proposed change would increase the corporate tax yield by $620,000,000 to a total of $1,614,000,000.) 2. A direct tax intended to recapture as much as possible of unpaid and returned processing taxes, coupled with temporary reimposition of processing taxes at lower rates and on a broader base. Yield of these two taxes would be approximately $517,000,000. Treasury officials explained that the proposed tax on undistributed corporate income would not be retroactive, but could apply to 1936 and future income. Seeks Same Revenue The President said the intention of the proposed corporate tax should be to tax undistributed corporate income so that it would yield approximately the same revenue as if it were distributed and had been taxed after it got into the hands of the individual stockholder. He said he was informed by the Treasury that during the calendar year 1936 some $4,600,000,000 in corporate income would be withheld from stockholders. “If,” said the President, “this undisturbed income were distributed, it would be added to the income of stockholders and there taxed as is other personal income. “But as matters now stand, it will be withheld from stockholders by those in control of these corporations. In one year alone, the government will be deprived of revenues amounting to over one billion three hundred million dollars.” Total of 8994,600,000 The taxes which would be repealed under Mr. Roosevelt's suggestion had the following estimated annual yield: Capital stock, tax, $163,000,000. Corporate excess profits tax, $5 . 000.000. Corporate income tax (estimated 1937), *5826,600,000. Total, $994,600,000. Mr. Roosevelt said the Treasury believed the new proposed tax would yield that sum plus the $620,(Turn to Page Three) DAVID W. GRIFFITH. 56, WEDS N. Y GIRL, 26' Famed Movie Director Marries Quiet Lousiville Ceremony. By L nitnt Press LOUISVILLE. Ky„ March 3Mutual admiration and friendship which had grown since she was a child culminated in marriage for Evelyn Marjorie Baldwin. 26. of New York, to David Wark. Griffith, 56, motion picture producer. In a quiet ceremony last night, attended by close friends and relatives, Miss Baldwin, daughter of Mrs. Sarah Baldwin, became the bride of Griffith, who last Friday was granted a divorce from Linda A. Griffith in Oldham County Circuit Court, from whom he had been separated since 1911. The couple will remain here several days before completing plans for a honeymoon. Times Index Births 17, Movies ft Books 13 Mrs. Roosevelt 10 Broun 13 Music 4 Clapper 13 Pegler 13 Comics 19 Pyle 14 Editorials 14 Radio 4 Fashions .... 11 Serial Story . Ik Financial .... 15 Society ip Hoosier Editor 14 Sports 16 Johnson 13 State Deaths . 20 Merry-Go-R’d 13 ; Want Ads ~.18