Indianapolis Times, Volume 48, Number 58, Indianapolis, Marion County, 18 May 1936 — Page 1

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SUPREME COURT KILLS GUFFEY ACT

JAPANESE TROOPS MASSED IN CHINA; NAVAL RACE BEGUN

Mighty War Machine Is Ready for Action Inside Great Wall. CONCERN GRIPS NANKING Campaign to Annex All Land North of Yel'ow River May Be Started. By Tinilrrl Press SHANGHAI, May 18.—The mightiest war machine Japan has ever mobilized on Chinese territory inside the Great Wall caused grave Chinese fears today that five northern provinces are about to be annexed to Manchukuo. Rapidly moving developments north of the Yellow River convinced many in the Nanking government that by force of arms Japan intends to place Henry Pu-yi, Emperor Kang Teh of Manchukuo, on the dragon throne of his ancestors beneath the glittering yellow tiles of Peiping’s lorbidden city Chinese concern increased when the Japanese embassy announced that henceforth there would be no statements regarding the strength of Japan s vastly augmented North China Garrisons. Tientsin dispatches reported that with completion of present Japanese troop movements between the Great Wall and the Yellow River Japan will have the most powerful military machine she has ever assembled for action against the Chinese. Increased 300 Per Cent Normal Japanese garrison strength in North China will have been increased by approximately 300 per cent. A week ago Japan had only about 3500 troops in Peiping. Tientsin, Fengtai, Tangku and at small posts along the Peiping-Mukden railway, in which British bond holders are heavily interested. Thursday and Friday Japan poured from 1700 to 2000 troops into Tientsin and Peiping. Most of the soldiers reinforced the North China garrison headquarters in the Japanese concession at Tientsin while a detachment was sent to Peiping to double the strength of the embassy guard in the legation quarter there. Other units were sent to Fengtai, an important railway junction controlling rail connection between Peiping and Tientsin, Peiping and Nanking, and Feiping and Hankow. 5000 More Landed Quietly Meanwhile, an additional 5003 troop., landed unobtrusively at Chinwangtao. the port for Shanhaikuan on the China-Manchurian border where the Great Wall comes down to the sea. An additional 2003 to 3000 troops ate expected to land from transports during the next two weeks. Tientsin dispatches reported that of the new arrivals only 1500 represent replacements. Os more serious concern to Chinese authorities was the fact that the Kwantung army, Japanese military unit m Manchukuo. was rushing strong detachments to all Great Wall passes, from Shanhaikuan on the sea to Kalgan, gateway to the caravan routes running into inner Mongolia. These Great Wall garrisons were reported as "ready to spring” Into North China. Officials emphasized that all has been quiet ilong the Great Wall since Japan's conquest of Jehol Province in 1C33. Hence, they believed, troops concentrating in the Great Wall passes were assembling to .tom an expeditionary force southward. Open Campaign Feared Chinese familiar with the North China activities of the Japanese military long have feared an open campaign to annex the provinces ol Hopei, Shantung, Chahar, Shansi end Suiyuan to Manchukuo, making it possible eventually to restore Pu Yi to the forbidden city from w hence, under Japanese tutelage, he would rule a vast territory extending from the YLellow River to the Siberian frontier. China, it was pointed out. would be powerless to resist such a move by force of arms since the Japanese have forced the demilitarization of North China since 1933 when Marshal Chang Hseuh-Liang was obliged to fle.< Peiping and take refuge with his troops in the Yangtze valley territory controlled by Generalissimo Chiang Kai-Shek. The only Chinese troops tolerated by the Japanese in North China have belonged to the private armies of war loids avowedly sympathetic to Japan's ambitions for mainland expansion. All others have been termed "bandits" and have been withdrawn to the Hankow area, where Chang-Hsueh-Liang now holds away, under threat of being expelled by the Japanese.

'NEW BOOKS'—ON THE SHELVES OF THE PUBLIC LIBRARY—A NEW DAILY FEATURE ON PAGE 1, SECTION 2, TODAY'

The Indianapolis Times FORECAST: Thundershowers this afternoon or tonight followed by fair tomorrow, not much change in temperature.

VOLUME 48—NUMBER 58

Destroyer Strength Must Be Increased, U. S. Told by Britain. NIPPON BUILDS U-BOATS America Likely to Join Movement to Augment Sea Forces. Hi/ United Pn ss WASHINGTON, May 18. —;The State Department, it was indicated today, will not object to Great Britain increasing its destroyer tonnage in the cruiser classes. BY FREDERICK KUH (Copyrijtht, 1936 bv United Press) LONDON, May 18.—Confronted by Italy’s outright seizure of Ethiopia and re- : newed Japanese saber rattling inside the Great Wall of China, Great Britain today decided to take an emphatic lead in the race for naval armaments. Britain sent a note to the United States conveying notification of the British Navy to retain 40,000 tons of destroyers in excess of treaty limits. A virtually identical note was sent to Japan. The United Press is able to reveal that the memorandum to Washington was dated May 6. Its contents, hitherto secret, expressed Britain’s preference to settle the issue of destroyer tonnage increase by negotiation rather than by invoking the so-called escalator clause of the 1930 London naval limitations treaty. Direct Move for Bigger Navy The direct move for a bigger, more mobile and more powerful British navy was indicated to be the result of Italy’s aggressiveness. The British memorandum cited flatly as the reason for its destroyer increase the fact that power, not bound by the London Treaty, have laid down more than 200 submarines since 1930. Italy was. not bound by the London pact, which was signed by the United States, Great Britain and Japan. It expires automatically at the end of this year. It was believed here that the British move inevitably would result in a considerable larger number of warships in service at the end | of this year than the London Treaty, expiring then, foresaw. The British memorandum to Washington expressly requested that the United States, “as soon as possible," convey its views regard ng the decisions of His Majesty s navy. The same request was made of i Japan. Japan Building Submarines In view of the British memorandum it was deemed certain that the United States and Japan would demand the compensatory right to re- | tain warships which, under the Lcn- | don treaty, would otherwise have been scrapped before the new year. Japan's answer, now under consideration by the Tokio government, is likely to constitute a bid for Japan to possess the world's largest fleet of submarines. Admiralty experts estimated that the Japanese navy already includes approximately 25.000 tons of submarines in excess of the treaty limit of 52,700 tons. Further, the United Press learned. Japan is building additional submarines.

New Jersey Is Counted for London on Eve of Primary Test With Borah

BY LYLE C. WILSON United Pres* Staff Correspondent TRENTON. N. J., May 18 Senator William E. Borah and Gov. Alf M. Landon of Kansas meet head-on tomorrow in New Jersey’s presidential primary poll for the first time as formal opponents in the 1936 G. O. P. sweepstakes. Political observers believe the results will uoost the Kansan nearer to the Republican nomination and move Mr. Borah closer to a bolt. New Jersey also will express indirectly its Democratic preference between President Roosevelt and Col. Henry Breckinridge. Col. Breckinridge has tested antl-New Deal Democratic sentiment in four of the 14 presidential primary states and made his best showing in Maryland where he trailed Mr. Roosevelt in a l-to-5 division of the primary ballot.

HOOSIERS MAY RECEIVE BONUS BY LATE JUNE

Veterans’ Bureau Chief and Postal Officials Agree on June 20 Date. FINAL DETAILS RUSHED $50,000,000 Expected to Be Shared by 62,000, Is Consensus. Indiana's World War veterans probably will have their bonus bonds before June 20. This assurance was given todayi by John H. Ale, manager of the ! United States Veterans Bureau in j IndiAnapolis, and postoffice author- ] ities. They predicted delivery of j $50,000,000 in bonds and government checks to state veterans would start June 15. The regional office of the veterans bureau on Cold Spring-rd had certified the payment of $17,367,338 in bonds and checks to the United States Treasury Department up to today. 14,811 Yet to Be Certified The $17,367,388 represents the payment of the final bonus claims to an estimated 62,000 veterans in Indiana. Mr. Ale said that 14,811 bonus applications are yet to be certified and vouchers sent to the Treasury. He estimated that by June 4 or 5 all applications received up to today will have been certified and that within a week’s time from then the bonds and their accompanying checks will have been filled out and be ready for mailing from the Chicago Federal Reserve Bank. Expects Word in 10 Days Mr. Ale's office is certifying bonus vouchers for approximately . threefifths of the estimated $50,000,000 to be paid state veterans. Postmaster Adolph Seidensticker said that within 10 days definite word should be received here as to the manner in which the bonus bonds will be delivered and cashed by veterans. He said that newspapers as well as the radio would be used to inform veterans of the manner in which they would receive the bonds and how they could cash them. Personal Delivery Required The bonds of state veterans who made their applications with the regional bureau here will be sent from the Chicago Federal Reserve Bank by registered mail to Indianapolis or ocher postoffices. The bonds must be delivered in person to the veteran and the veteran only. Relatives can not sign for the bonds. Marion County's share of the ! $50,000,000 flood of bonus money is ' estimated by officials of veterans’ 1 organization at between $6,000,000 and $7,000,000. Bonds are to be re- ! ceived by between 15,000 and 17,000 county veterans. World Zionist Leader Dead By Vii I ted Press LONDON, May 18.—Nahum Soko- | low. 76. former president of the World Zionist organization, died | yesterday. An outstanding Jewish leader, he visited many countries ir the interest of the Zionist movement. Times Index Barnes 9 Jane Jordan . 8 1 Births 13 Merry-Go-R'd 9 Books 9 Movies 4 Bridge 8 Mrs. Ferguson 10 Broun 9 Mrs. Roosevelt 7 Clapper 9 Obituaries 5 Comics 15 Pyle io j Crossword ... 16 Radio 2 Dietz . 9 Scherrer 10 Editorials —lO Science 10 Fashions 6 Serial Storv .. 8 Financial 11 Short Story .15 Fishbein 10 Society .. 7 Flynn 11 Sports' 12 Forum 10 State Deaths 5 i Grin, Bear It 9 Wiggam 9

A popular referendum on the propriety of executing Bruno Richard Hauptmann is a collateral issue in the Republican primary. Gov. Harold G. Hoffman, who is in bad with most leaders of his party but whose personal political machine still runs smoothly, has been challenged for his reprieve of the Lindbergh baby kidnapper. Gov. Hoffman is one of four deiegates-at-large nominated by the Republican state committee. Former Rep. Franklin W. Fort, onetime political intimate of Former President Hoover and a notable prohibitionist. is an independent candidate against Gov. Hoffman. But New Jersey will award the delegate-at-large seats to the four candidates with the largest number of votes. All five delegates-at-large candidates are pledged to Gov. Landon.

MONDAY, MAY 18, 1936

Fish Story 500 Persons Line Bridge on Meridian-St to Watch Antics.

a BOUT 500 persons lined the bridge railing at Fall Creek and Meridian-st today to wat'- .i thousands of carp and goldfish churn the water during this, their spawning season. Traffic was jammed temporarily on the bridge, shoppers were late for bargains and the work-a-day clocks. stopped while city folk satisfied their curiosity about a phenomt non of nature. Residents of the neighborhood said the fish return to this stretch of the creek about this time every year. “I don’t expect to catch anything,” said an old Negro who sa'd he had been fishing from the railing for hours, "ana I ain’t puttin’ any more bait on my hook. Them fish won’t bite now, but one of them nibbled on my bare hook a while ago. He might do it again. I’ll just keep my line in there anyway.” Back After 11 Years FIRST of the 17-year locusts came out in Indianapolis today, choosing Crown Hill Cemetery for their debut. They hadn’t made any noise yet, but they are expected to soon. If it stays warm thousands probably will be out in a couple of days. Frank Wallace, state entomologist, said that no one knows how the locusts all come out at the same time, as if by prearrangement, after spending 17 years in the ground. The females do not make much noise. The male has the most complex noise producing mechanism of any insect, and makes more noise than any, Mr Wallace said. They do no particular harm to forest trees, but are apt to damage young orchards, he said. They may stay for six weeks. Rain Aids Farmers SCATTERED rains throughout the state came just in time to relieve crop conditions, the Weather Bureau said today. The land was becoming too dry, it was reported. Thundershowers were expected this afternoon and tonight. Tomorrow should be fair with no great temperature change.

PACE CAR INCLUDED AS SPEEDWAY PRIZE Packard to Go to Winner of 500-Mile Classic. The white Packard pace car which Tommy Milton is to drive to send the field of 33 cars off to a flying start in the 500-mile race May 30 at Indianapolis Motor Speedway will be presented to the winner. Announcement of this special award was made today by M. M. Gilman, Detroit, Packard Motor Cos. general manager. This together with the $20,000 cash prize, lap prizes and accessory money, should make the winner’s share the richest in the history of the race, according to T. E. (Popi Myers, Speedway general manager Mr. Myers will ride the pace lap with Tommy Milton, who won the speed classic in 1921 and 1923. SHOVER MAY RESUME FORMER CITY DUTIES Defeated Candidate for Sheriff Hinted as Street Chief. Claude E. Shover, defeated Democratic candidate for sheriff.* may return to his old office as city street commissioner this week, it was reported today. When he became a candidate, Mr. Shover retired from the office and Fred Isenhut, his assistant, was named acting commissioner. Mr. Shover was appointed by Mayor Kern.

Observers will scan returns from the industrial northern part of the state for an indication of the swing of Socialist and Socialist-sympa-thizer votes to the New Deal. New Jersey lolled 42,000 Socialist votes in the 1932 presidential election. Col. Brekinridge is entered alone in the New Jersey Democratic preferential primary, a purely advisory expression of the voters' choice. Mr Roosevelt is alone in the field with a full slate of delegates to cast the 32 votes to which New Jersey is entitled in the Democratic national convention. Both Gov. Landon and Mr. Borah are entered in the Republican preferential contest and Gov. Landon has a complete delegate slate. The Senator has a partial slate of delegates. Well-informed observers believe he will get not more than three or lour delegates if any.

EDUCATIUN IN HEALTH HELU MODERN NEED Dr. George W. Clapp to Talk to Dentists at 3-Day Convention Here. SESSIONS OPEN TODAY Socialized Medicine Advocate Terms Security Law ‘Political’ Step. No country in the world ever will attain progressive and successful health insurance and socialized medical care until the problem is looked upon as economic rather than political. Dr. George W. Clapp, New York, author and leader in the movement for socialized medicide, said today. Dr. Clapp is to speak tonight before members of the Indiana Dental Association attending the annual three-day convention at the Claypool. He said today that the solution to medical and dental care lies in educating the public to living habits that prevent them from getting sick and having bad teeth, not in trying to repair them once they have become ill. Sessions of the annual dental meeting opened this morning with clinics and discussions. Dr. George B. Winter was to make the principal address this afternoon. Dr. Jacob R. Schwartz was to speak on "Modern Methods of Tooth Replacement.” Clinics Are Outlined Tomorrow’s session is to open with clinics. A business meeting is scheduled for the afternoon, when resolutions are to be adopted. Sickness has been found to be the outstanding single cause of unemployment and poverty, ana the solution to sickness is through the physicians and dentists, in teaching capacities. Dr. Clapp said. He criticized the Social Security Act as proposing a political answer to medical and dental ills. "That answer was formed entirely by political and social service workers and in its framing, the services of the American Medical Association and American Dental Association were continuously rejected,” he said. "All that we have learned in medical practice was deliberately left out, and the principles that we believe sound were transgressed at almost every step. Plans Are Investigated "The medical and dental professions are trying more than 120 health insurance plans in different communities in an effort to find a sound economic answer. “The medical and dental professions have the choice of working for comparatively few people in ‘luxury service’ and letting others go without, or offering to people of moderate of small incomes service which will meet every requirement at such fees that those incomes make possible.” "If we can teach people to live in such a way that they require only small amount of* care per person, the fees will be small qnd we can earn our living by doing many small operations instead of a few beg ones.”

LEN SMALL, TWICE ILLIHOIS CHIEF, DEAD Former Governor Beaten in Recent Primary. By United Prettx KANKAKEE. 111., May 18.—Len Small, candidate for Illinois Governor five times and elected twice, died suddenly in, a hospital yesterday after an operation. A blood clot caused his death, although he had appeared to be recovering satisfactorily from the operation a week ago. Mr. Small, born in Kankakee, June 16. 1862, was christened Abram Lennington, but was known generally as “Len.” Before he entered politics, Mr. Small was a farmer. He first became a candidate for nomination for Governor in 1912, and was defeated. He was nominated and elected in 1921 and 1925. He was defeated for nomination in 1928. In 1932 he was nominated again, only to lose in the Democratic landslide. He was defeated for nomination this year by C. Wayland Brooks. AAA CHECKS RECEIVED 13332 in Benefits for Farmers of County Reach Agent. Ninety-eight checks representing $3332 in AAA wheat checks to Marion County farmers were received today it the office of Horace Abbott, county agricultural agent. This represents the last of the wheat checks, with the exception of those in which compliance papers have been delayed, Mr. Abbott said.

Entered a* Second-Class Matter •••••• at I’ostoffice. Indianapolis. Ind.

READS MAJORITY RULING

Justice George Sutherland

SUBSTITUTE IS SEENJNUKELY Senators Doubt Congress Will Take Any New Action on Coal Bill. By United Press WASHINGTON, ,May 18.—Senate leaders expressed doubt this afternoon that Congress would act at this session on a substitute for the Guffey Coal Control Act. Senator J. Hamilton Lewis (D„ 111.), said he had not had time to determine the exact intent of the Supreme Court decision, but that, if it ruled out the entire he doubted that it would prove feasible to attempt to write anew measure at this session. “Probably the Administration and other groups interested would prefer to wait until next January by which time they would be able to ‘work more quietly.’ ” First formal comment came from Senator Joseph C. O’Mahoney (D, Wyo.), who declared in a statement: “This decision once again points to the necessity of a law providing for the national incorporation or the national licensing of all corporations engaged in commerce among the states.”

. Another Loss By Unite l Press WASHINGTON, May 18.— Citing the Supreme Court's NRA and AAA decisions as precedents, the District of Columbia Court of Appeals today held use of relief funds for the Resettlement Administration unconstitutional. While the court granted the right of Congress to appropriate funds for relief of unemployment, it restricted the use to which such funds might be put. The court held that President Roosevelt’s allocation of relief funds to Rexford G. Tugwell’s Resettlement Administration was an improper delegation by Congress of legislative power and that it invaded the rights of the states. The court’s decision was rendered in an injunction action brought by Franklin Township. Somerset County, New Jersey, against a proposed resettlement project in that locality.

STATE ABC CAN’T AID TAX DIVISION, RULING A Departments Have Separate Duties, Lutz Holds. The Attorney General's office ruled today that the state gross income tax department can not ask the Alcoholic Beverages Commission to revoke or refuse a license to a delinquent taxpayer. In requesting the opinion, the tax department pointed out that many holders of liquor licenses were delinquent in tax payments. Atty. (Sen. Philip Lutz Jr. ruled that the Treasury Department had no authority to disclose tax returns to the beverages commission. In effect, the opinion held that the two departments are separate revenue collecting agencies with distinct functions. The opinion also held that the liquor commisison can not revoke the license of one who has returned a fraudulent income tax return. ROUGH TRIP FRIGHTENS PASSENGERS ON ZEP ‘No Danger,’ Commander Says; Head Winds Slow Hindenburg. By United i'res* ABOARD DIRIGIBLE HINDENBURG, EN ROUTE TO NEW YORK, May 18.—Passengers soaring on toward Lakehurst aboard the Hindenburg today went through varying degrees of fright when sudden rough weather tilted the blunt nose of the dirigible upward, smashed dishes and threw several from their seats. Capt. Ernest Lehmann, commander, said there was no danger. Adverse head winds have reduced the speed to 45 miles an hour. Indications now are that the dirigible will land at Lakehurst early Wednesday.

6-TO-3 DECISION HITS LABOR, TAX, PRICE CLAUSES

Ruling Is Seen as Blow to Governmental Attempts to Regulate Industry; Verdict Follows Pattern of NR A Opinion. BRANDEIS, STONE, CARDOZO DISSENT Decision Is Interpreted as Leaving Validity of Wagner Labor Law Doubtful; Serious Defeat for New Deal. By United Press WASHINGTON, May 18.—The Supreme Court today in a sweeping opinion struck down the Guffey Coal Control Act and cited objections apparently meaning the end of any New Deal attempt to control industry or regulate laoor along lines of the invalidated NR A and the Wagner Labor Act. The court threw out the three vital features of the Guffey act—the 15 per cent tax on coal production, labor provisions and price-fixing. Under the terms of its decision it appeared unlikely any successful New Deal effort could be made to rewrite control laws upon the ruins of the NR A and other invalidated New Deal statutes. Additional weight to this interpretation was lent by a District of Columbia Court of Appeals decision which cited the high court’s AAA and NRA decisions in holding unconstitutional use of work relief funds for the Resettlement Administration. The full scope of the opinion, decided by a vote of 6 to 3 with Chief Justice Charles Evans Hughes concurring in a separate opinion, was sweeping. Justices Brandeis, Stone and Cardozo dissented. The dissenting opinion, written by Justice Benjamin N. Cardozo, centered on the power of the Federal government to fix maximum and minimum prices for commodities moving in interstate commerce. Hughes’ opinion indicated his belief that the Federal government had the right to exercise control over industry providing the control was exercised only over actual interstate commerce. The majority decision, by Justice George Sutherland, held that there was no question that the Guffey tax was a penalty tax under previous rulings of the court. It held that the labor provisions were “really disposed of adversely by our decision in the Schechter case.”

9 TO 2 NOW SCORE AGAINST NEW DEAL TVA, Gold Only Victories for Administration. Ky United I’nx* WASHINGTON, May 18.-The box score of New Deal cases won and lost in the Supreme Court today showed 2 victories and 9 defeats. Victories: Gold clause, Tennessee Valley Authority. Defeats: Hot Oil. Railroad Pensions, Fra-zier-Lemke, NRA, Removal of Trade Commissioner Humphrey, AAA. Processing Tax, Jones Securities Act. POLICE HUNT FOR ‘FIREBUG’ IN CITY Two Attempts to Start Blaze Reported. A pyromaniac who made two attempts to bum the home of Mrs. Elvania Hawkins, 2415 N. Ruralst, was hunted today by police and arson investigators. Meanwhile, detectives today accused Raymond Layer, 30. of 1513 N Kealing-av, of attempting to set fire to the Richardson Cos. plant, 20th and Olney-sts, early Friday. Detectives said Layer attempted to set fire to the plant, which is insured for $75,000, because he thought the foreman was not giving him enough work. The first attempt on N. Rural-st was made at 2 Sunday morning, but the blaze was extinguished by the family and neighbors. Two hours later the "firebug” is believed to have started a second blaze which spread to ihe attic Mrs. Hawkins and her three children, James Hawkins, 20; Rudolf. 18, and Dorothy Hawkins, 11, were forced to flee from the burning house. Weather boarding had been pried from the rear of the home. Kero-sene-soaked rags and waste had been packed between the weather boarding and the lathing, he said.

FINAL-STOCKS HOME PRICE THREE CENTS

“The only perceptible difference between that case and this is that in the Schechter case, the Federal power was asserted with respect to commodities which had come to rest after their interstate transportation; while here, the case deals with commodities at rest before interstate commerce has begun. The difference is without significance. "Federal regulatory power ceases when interstate commercial intercourse ends; and. correctively, the power does not attach until interstate commercial intercourse begins. "There is no basis in law or reason for applying different rules to the two different situations.” Held Intrastate Transaction The court ruled the bituminous coal in the process of mining is an intrastate transaction and can not be regulated by the Federal government. Mining, the court held, "brings the subject matter of commerce into existence. Commerce disposes of it.” The court held that in view of this and numerous other considerations set out at length in the opinion, the conclusion was "inescapable” that the effect of the labor provisions of the act, including minimum wages, wage agreements, colhictive bargaining and the powers of the labor board, "primarily falls upon production and not upon commerce.” Importance was added to these significant words by reason of the fact that they would seemingly also condemn the Wagner Labor Disputes Act which is undergoing court tests in several lower Federal courts. Hits Federal Control The court drew a sharp distinction between producing coal and regulating its production. It noted that the former was a private activity while the latter was ‘necessarily a governmental function, since in the very nature of things, one person may not be intrusted with the power to regulate the business of another and especially of a competitor.” The very existence of any statute which would attempt to confer such power "undertakes an intolerable and unconstitutional interference (Turn to Page Three)