Indianapolis Times, Volume 47, Number 308, Indianapolis, Marion County, 4 March 1936 — Page 1

RUSSIA WOULD FIGHT JAPAN TO PROTECT MONGOLIA, SAYS STALIN

LABOR CRITICAL OF INSURANCE PLANS; FAST ACTION LIKELY

Organized Workers Reported Dissatisfied With Jobless Bill. CHANGES ARE URGED Ask Minimum Limit to Be Set at Employers of Four. (Other Detail* nn Pajfe 3 and 4) BY JAMES DOSS Organized labor of Indiana today voiced dissatisfaction with the state administration’s unemployment compensation bill to be introduced in the special session of the Indiana General Assembly starting at 10 tomorrow. Adolph J. Fritz, Indiana State Federation of Labor secretary, said labor objects to the proposal to limit, the compensation awards to workers employed by employers of eight or more persons. The provision, labor feels, according to Mr. Fritz, should be changed to apply to employers of four or more workers, thus bringing more persons benefits. It is difficult to outline all of labor’s objections and possible objections to the unemployment compensation and other social security bills because labor leaders have had little opportunity to study them, according to Mr. Fritz. Object to Reserve System “The job insurance bill has been rewritten so often you can’t keep track of it,” Mr. Fritz said. The federation leader said labor also is inclined to object to the individual reserve system set up in the bill and believes a state pool of all funds would be a more equitable arrangement. ■As -the bill now stands, employers are permitted to establish individual reserves for their own employes from which only one-sixth of the levy would go to the state pool. If the individual reserve system Is maintained, Mr. Fritz said labor may insist that the balance reserve requirement be raised before employer la vies are allowed to cease under the so-called "merit rating system.” Advocate Higher Balance The bill now provides for a diminution of rates after 1940. fixing a sliding scale based on the percentage of the employer's pay roll remaining in the reserve account. Size of the balance would be determined by a low labor turnover which would require few' unemployment compensation payments. The figure at which levies are permitted to lapse is fixed now in the bill at a 12' 2 per cent balance. Mr. Fritz said he believed the balance should be at least 15 per cent. Organized labor will insist that there be no discrimination against strikers in payment of unemployment compensation benefits, Mr. Fritz said. Seek Unbiased Witnesses “We intend to bring in witnesses whose testimony we are sure will be unbiased,” Mr. Fritz declared. “It may be that their views will coincide with the bill's provision If so. we will go along with it, but we are determined that organized labor's interests shall be protected.” There also were hints that dissatisfied Democrats might join with minority members on opposition to “home rule” features of the welfare bill and enactment of other bills. Significantly, Gov. McNutt today appointed two township trustees as members of the Governor's Unemployment Relief Commission, but denied it was done at the insistence of the Indiana County and Township Officials’ Association, leading “home rule” advocates. Ti e trustee positions had not been filled before, although the appointments were authorized in the law creating the commission. No “Gag" Rule in Senate The appointees are Elmer J, Fox. Democrat, Fort Wayne, and John Fowler, Republican, Bloomington. Administration leaders took cognizance last night of the opposition rapidly being organized to the socalled model social security program prepared by a joint legislative committee. Lieut. Gov. M. Clifford Townsend announced there would be no gag rule in the upper House and that he anticipates introduction of bills other than the Administration social security measures. Speaker of the House Edward H. Stein has expressed similar views. Leader* of both houses contemplate attempts to pass resolutions tomorrow, thus clearing the calen- j (Turn to Page Three) 1

The Indianapolis Times FORECAST: Fair tonight and tomorrow; colder tonight with lowest temperature near freezing.

VOLUME 47—NUMBER 308

Many Favor McNutt Views, Canvass of Legislators Discloses. FORESEE BOLT FAILURE Administration Men Claim Assembly Will Get Through Quickly. BY JOHN L. CUTTER United Pres* Staff Correspondent The special session of the Seventy-ninth Indiana General Assembly convening tomorrow is to be brief and enact only social security legislation favored by the state administration, state legislators, by almost a 2-to-l margin, answered today in a poll conducted on the session eve. Attempts to bolt the administraj tion program are assured, but will fail, according to results of the poll. Gov. McNutt hopes the session will be completed in tw'o weeks at the most. More than 65 per cent 1 of the answers indorsed this limitation. Few Make Protests A few others protested against any specific time limit but agreed the special session should be confined to social security legislation, as wished by the Governor. One Indianapolis senator pointed out the economic importance of the legislation made it impossible for him to indorse an arbitrary time limit but added: “I am bound by a gentleman’s agreement—as I believe are all those members of the Senate who attended the caucus-con-ference last December —to consider at the special session only that legislation that would make Indiana statutes conform to the Federal social security act.” Answers in a similar vein came from another Indianapolis member and senators in the southeastern and northeastern sections of the state. Objects to Job Insurance A vigorous objection to unem- , ployment insurance was recorded by j one legislator who approved the pro- ! posed state-Federal old-age pension ! arrangement. “Unemployment insurance has been a costly and unsuccessful expej riment in many foreign countries.” | he wiote. “It makes taxes prohibitive, increases unemployment and builds up government bureaucracy. The national law is unconstitutional and Indiana should proceed with caution.” The method of financing the various portions of the security program, expected to be the most controversial subject during the session, brought a variety of answers. DRAG RIVER IN HUNT FOR MISSING MAN Foul Play Feared in Case at Edinburg. I Time* Special EDINBURG, Ind., March 4. Several boats manned by deputy sheriffs and volunteers today dragged Blue River here for the body of Marlie Tindle, 45-year-old unmarried war veteran, who is believed to have met with foul play ! last night. It also was suggested he was the victim of a hit-and-run driver. On the iron work of a bridge across the river, within 200 yards of Tindle’s home, Sheriff A. R. Mulkins of Johnson County found the missing mans cap, a shoe and blood and hair He was reported missing at 6 last night and at 4 this morning the sheriff decided to drag the river. The water is from three to six feet deep. He is known, the sheriff says, to have carried about S2O with him. He was a laborer. Sheriff Mulkins says none of his associates or relatives have been able to identify any enemy of the man. and know of no reason he should have taken his own life. Times Index Births 15 , Movies 6 Bridge 9 Mrs. Roosevelt 8 Broun 11 Music 5 Clapper 11 Pegler 11 Comics n Pyle 12 ; Editorials 12 Radio 5: Fashions 9 Serial Story ... 9 ! Financial 13 j Society 8; Hoosier Editor 12 ' Sports 14 Johnson 111 State Deaths.. 4 Merft'-Go-R’d 111 Want Ads ....16*

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Average Corporation Tax of 331/2 Per Cent Advised Levy on Undistributed Profits Recommended to House Subcommittee by Treasury Experts. By United Press WASHINGTON. March 4.—A tax averaging 33Vz per cent on undistributed corporation profits was recommended to Congress by the Treasury today as a means of raising $786,000,000 in new revenue and restoring

LA GUARDIA EXPECTS STRIKE CLOSE TODAY Rioting Brings Ultimatum From Executive. By United Press NEW YORK, March 4.—Mayor Fiorello H. La Guardia, aroused as the four-day elevator operators’ strike resulted in rioting in Park-av, warned both sides that “I shall expect the strike to end some time today,” The Mayor issued his ultimatum after reviewing police reports on disorders in which 3000 strikers paraded exclusive Park-av, breaking doors and window's and clashing with police. Strike Leader James J. Bambrick with equal vehemence threatened to call for a general strike in the city and to “give the order to tear down the town” if a third conference at City Hall this afternoon fails to end the deadlock. Urge General Strike By United Press HARRISBURG, 111., March 4. Citizens of Saline County, situated in the heart of the rich Illinois coal belt, were asked by the Progressive Miners of America today to join in a general strike tomorrow in protest against the alleged importation of outside labor to work the mines. The Peabody Coal Cos. opened its mine No. 43 Monday after a shutdown of more than two years. Work was resumed under a contract with the United Mine Workers of America, rival union which the Progressives have fought for years. Progressives are overwhelmingly dominant in the Saline field. BROTHERS HURT WHEN TRAIN STRIKES TRAILER Escape Serious Injury in Accident With Pennsy Passenger. William Carrico, 28. and his brother, Charles, of Louisville, escaped serious injury early today when a Pennsylvania Railroad passenger train struck the trailer of their truck at the Madison-av crossing. The train carried the trailer 75 feet and scattered the cargo of limburger cheese, meat and lard over the right-of-way and spread the strong cheese odor over the neighDorhood. Nine-year-old Gordon South, 130 McKim-st. remains in a fair condition at City Hospital with injuries he received when he was struck by an auto yestefllay in the 1400 block, Southeastera-av.

WEDNESDAY, MARCH 4, 1936

LEADER DENIES SUBVERSIVE SOVIET ACTIVITIES IN OTHER COUNTRIES

the Federal budget toward balance. Treasury fiscal experts, appearing before the House Ways and Means Committee in the face of protest against the tax suggestions made by President Roosevelt, estimated that the levy on undivided corporation profits would raise $600,000,000 to $620,000,000 annually. The tax would range from 27 to 40 per cent under the Treasury recommendation. Submission of the Treasury data coincided with prediction by Speaker Joseph W. Byrns that the House would accept the President's suggestion that revenue needed to finance the farm program and added bonus costs be raised by revising and extending corporation taxes. Meanwhile, Republicans started a new economy drive which they contended would eliminate at least part of the need for new taxes by reducing government expenditures. The Treasury data was submitted at an executive session of the Ways and Means Subcommittee on taxation, entrusted with the task of recommending to the full committee a tentative draft of the legislation. Chairman Samuel B. Hill said that the Treasury proposals did not (Turn to Page Three)

DRIVE TO CUT AOTO TOLL RENEWED HERE 23 Motorists Convicted by City Judges. A campaign to reduce traffic fatalities was renewed today by Municipal Judges Charles J. Karabell and Dewey E. Myers as they heard 28 traffic cases. “We must break up these traffic violations. Judge Myers and I agree that only by law enforcement can death by accident be eliminated,” Judge Karabell said. Twenty-three violators were convicted, two cases were continued, one rearrest was ordered and judgment was withheld in two cases today. Judge Karabell announced that hereafter affidavits would be sworn out for alleged violators who failed to appear in court and that they would have to provide SSO cash bond. COUNTY CONVICT FLEES Henry Scheckler, Auto Bandit, Escapes From Prison Farm. Times Special MICHIGAN CITY, Ind., March 4. —Henry Scheckler, sentenced to a 10-year term for auto banditry in Marion County Criminal Court in 1930. escaped from the Benton prison farm at the Indiana State Prison last night, it became this afternoon. ~

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Josef V. Stalin, Soviet dictator. Upper Lett—Demonstration in the Red Square, Moscow, the Communist Mecca. Lower Left—Outer Mongolia, which Stalin designates as one of the two chief danger spots of world war, the other being Germany.

DUCE CONSIDERS LEAGUE’S PLEA Mussolini Faces Embargo on Oil if He Spurns Peace Proposal. By United Press ROME. March 4.—Premier Benito Mussolini began today his study of a League of Nations plea to negotiate a peaceful settlement of his war on Ethiopia, knowing that the alternative was an almost certain oil embargo against Italy. Coincidentally, Mussolini prepared for a conference March 18-20 with Danubian statesmen, which he planned as a counter move to any League action against him. It is indicated that, while considering the League’s peace plea, Mussolini frankly is trying to win support and prestige by making overtures to the three “ex-enemy” nations—Germany, Austria and Hungary. Mussolini is expected to decide by Saturday on his reply to the League's peace plea. The cabinet is to meet then. The League’s plea for peace asked a reply Dy Tuesday. League Sees Peace Hope By United Press GENEVA, March 4. Hope rose among League of Nations leaders today that Mussolini might heed their plea to begin negotiations to end his war against Ethiopia. French official sources have “reason to believe” that Mussolini will agree to talk peace, provided no pressure is brought on him, it is reported. Guarding against the possibility that Mussolini might refuse to talk peace on terms acceptable to League nations, the League’s committee cf 18, which has charge of the penalties problem, met today to consider application of an oil embargo. Claim Clean Sweep By United Press ASMARA, Eritrea, March 4. Marshal Pietro Badoglio has completed a series of operations on the northern Ethiopian front with the rout of the last force opposing the Italians, it was confirmed officially today. Thirty thousand men under Ras Imru, one of the fastest and most powerful Ethiopian groups, were defeated and sent fleeing in disorder. More than 30.000 Ethiopians were killed or wounded in the series of battles starting Feb. 10 and continuing through March, it was announced. Italian casualties in the same period, which embraced three important battles, were given as slightly more than 2000STOCK TRADE QUIETS AFTER BRISK START Prices Range Irregularly Higher; Oils Show Gains. By United Press NEW YORK. March 4.—Trading quieted on the stock Exchange early this afternoon after running at the rate of 3,600,000 shares for a full day. Prices were irregularly higher.; Oils were higher. 1

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FAIR, COLDER TONIGHT FORECAST FOR CITY Lowest Temperature to Be Near Freezing, Predicts Bureau. Fair skies and colder temperatures are forecast by the Weather Bureau ' for Indianapolis tonight and tomorrow, with lowest temperature tonight near freezing. In the state and nation, damages to farmland, bridges and highways in four states were counted in thousands of dollars as flooded streams receded slowly and engineers predicted the worst damage over. Parts of lowa and Indiana still were threatened.

$575,000 MORE FOR U. S. ADDITION ASKED Contract for City Unit Held Up Pending Action. Times Special WASHINGTON, March 4.—An additional appropriation of $575,000 for the Indianapolis Federal Building improvements is to be asked of Congress by the Treasury Department, Rep. Louis Ludlow was informed today. The $1,315,000 approved last session is insufficient to cover the cost of construction under bids received last month. Contract signing has been delayed pending a further appropriation. The new allotment is to total $1,890,000. Proposed increase is contained in an estimate of $50,000,000 to be sought by the Treasury procurement division for similar cases where rising prices have interfered w'ith construction, Mr. Ludlow said. Hearing on the request is to be held about March 15, before the deficiencies subcommittee of the Appropriations Committtee of the House. Mr. Ludlow said he will urge speedy approval. I, U. QUITS OLYMPIC BASKETBALL MEET Tourney May Be Called Off, Declares Fox. Indiana University formally withdrew its entry in the Olympic basketball tournament today, announcing there was little incentive for the Koosiers since Purdue and Notre Dame were not competing. William Fox Jr., chairman of the Fifth District tournament committee, announced he will recommend to officials in Chicago that the Indianapolis meet be abandoned since no major Indiana team is competing. CYCLE OFFICER INJURED Hurt When Dog Runs in Path of His Yehicle. Motorcycle Officer Roy Losh, 453 Forest-av, was brown from his vehicle and injured seriously today when a dog ran in the path of the motorcycle at Newland-av and Ewing-st. The dog s owner, Theodore Passen. 1327 N. Tuxedo-st, was arrested on a charge of failure to have a dog license.

GERMANY OTHER THREAT OF WAR, DICTATOR WARNS Foresees Closer Peace Relations Between Governments of United States and Soviet Union. FIRST STATEMENT SINCE JULY, 1934 Stresses League of Nations and Powerful Mass Opinion in All Countries as Peace Forces. Editor's Note—Russia's attitude toward war with Japan and Germany is revealed in the following formally approved interview with Josef V. Stalin by Roy W. Howard. It is the first statement given by Stalin since that to H. G. Wells on July 23, 1934. With extraordinary frankness Stalin discusses Russia's relations with America and the world at large. At the request of the Soviet government the ScrippsHoward Newspapers turned the interview' over to the United Press and the Associated Press for distribution. BY ROY W. HOWARD Chairman of the Board, Scripps-Howard Newspaper* (World Copyright, 1936. by Scripps-Howard Newspapers) MOSCOW, March. 4.—The Soviet Union is prepared to jyo to war with Japan if necessary to prevent destruction of the independence of it3 virtual political ally, the Mongolian People’s Republic—Outer Mongolia. The revelation of the high tension now existing and how importantly the Soviet regards the recently intensifying

‘BLUFF,’ JAPAN OFFICIAL SAYS Stalin’s ‘Outburst’ Out of Harmony With Previous Comment, Is Claim. By United Press TOYKO (Thursday), March 5. Roy W. Howard's interview with Josef V. Stalin was printed in the Tokyo morning papers today accompanied by comment by an authority of the foreign office, expressing surprise at some of Stalin’s statements, which were held to be out of harmony with previous utterances. The foreign office official recalled former speeches in which Stalin asserted the Soviet would defend every inch of its own territory and does not want a single inch of foreign territory, adding that such is the basis of the Soviet principle of national defense. “We are at a lass to harmonize statements contained in the Howard interview with those previously repeatedly expressed by Stalin,” the official said. He added that Soviet-Mongolian relations were vague and the Japanese ambassador had asked the Soviet foreign office to define them, but received no reply. The foreign office authority expressed the following opinions: 1. Soviet influence in Mongolia is slight, so that if the Soviets fail to take advantage of every opportunity to spread propaganda, the Mongols will become indifferent, a fact which Stalin apparently realizes. 2. Such an “outburst” might serve to “puff up” certain elements in China, especially those engaging in anti-Japanese activities. Thus the Soviets might find it very convenient at this time to use a loud voice. The speaker concluded by saying that in his personal opinion, the “outburst” was largely bluff and not a serious observation. London Shows Interest By United Press LONDON. March 4.—Late editions of this afternoon's papers devoted much of their front page space to Roy W. Howard’s interview with Josef V. Stalin. The Evening Star carried a sev-en-column headline reading. ' Stalin Says ‘Hands Off’ or War With Japan.” The Evening Standard devoted half its front page to the story under a three-column heading reading, “Stalin Talks of War Danger to the World ‘Smoldering’ in Two Zones.” Saito Comment Brief By United Press WASHINGTON, March 4—Roy Howard's interview with Josef Stalin aroused interest in Washington circles today with Japanese Ambassador Hirosi Saito commenting, on reading the dispatch, that Japan had no intention of provoking any trouble with the Soviet Union. Few others were prepared to make immediate comment although ex- | pressing interest in the views of: Soviet relations by the I dispatch.

FINAL HOME PRICE THREE CENTS

friction in the ManchukuoMongolian area was made by Josef V. Stalin to the writ/ in the course of a three-hoi discussion of Soviet relatior, ship to general world events war threats and Soviet-Amer-ican relations particularly. The discussion, with Constantin Oumansky, newly appointed counsellor of the Washington embassy, as the third party interpreting, was held in Stalin’s office in the Kremlin. The interview was devoid of forensics and dramatics. Stalin is soft-voiced and genial. He has never sought publicity or a reputation for color. There is littie in his manner to reveal the almost mystic power with which he sways the will and emotions of 173.000,000 people. He is devoid of bombast. His demeanor is civilian, not heel-clicking and not mjlitary. His greeting was friendly and the informality and ready humor which characterized the conversation are silk gloves covering an oftendemonstrated iron will. Tolerant in Discussion At times he has the dogmatic manner of revolutionaries, but he employs a tolerance in discussion that veneers his past mastery of propaganda. During the past weeks, the chief interest of Moscow newsmen has centered in developments on the Outer Mongolian frontier. Clashes between Japanese troops and those of the Mongolian Peoples’ Republic. resulting in so-called border incidents, have been increasingly numerous. Neutral military observers believe Japan is seeking to drive a wedge into Outer Mongolia by way of Manchukuo, intended to block off assistance for the Soviet by way of China proper in the event of war. With possession of Ulanbator, the capital of Outer Mongolia, the Japanese air forces would be in an advantageous position to threaten the Trans-Siberian line at one of its most vulnerable points. “We Have <o Help” In response to a direct inquiry as to what the Soviet attitude would be should Japan launch her longpredicted military drive in Cuter Mongolia, Stalin said: “If Japan ventures to attack the Mongolian Peoples’ Republic and seeks to destroy its independence, we have to be able to help that republic. Litvinoffs (Maxim Litvinoff. Soviet foreign commissar) assistant, Stomoniakoff, recently so informed the Japane.se ambassador in Moscow and called his attention to the unchangeable friendly relations which the Soviet Union has entertained with the Mongolian Peoples’ Republic since 1921. We would help that republic as we did in 1921.” (In 1921, Red troops supported the Mongolians against White Russian troops backed by Japanese.) Admits Russia Would Act “Would a Japanese attempt to seize Ulanbator (Urga) make positive action by the Soviet Union necessary?” he was asked. “Yes,” was the unequivocal reply. "Have recent events developed any new Japanese activities in this region which have been eonstrang (Torn to Page Three)