Indianapolis Times, Volume 48, Number 62, Indianapolis, Marion County, 22 May 1936 — Page 1

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TOWNSEND TAUNTS OARP PROBERS ON DELAY IN CITATION

Committee Lacks Courage to Press Charge, Says Defiant Doctor. INVITES TRIAL IN HOUSE Hurls New Challenge When ' Bell Group Decides to Hold Up Action. By United Press WASHINGTON, May 22. —Dr. Francis E. Townsend announced today through his attorney, Sheridan Downey, that he had notified all officers of the Townsend pension movement now under subpena to refuse to testify before the House old-age pension inquiry. By United Press WASHINGTON, May 22. Dr. Francis E. Townsend, renewing his defiance of the House old-age pension inquiry, today charged the committee lacks courage to carry out its threat to cite him for contempt of the House. Dr. Townsend’s new challenge was Issued after the committee abandoned Its plans to carry the case before the House today. ‘ They haven’t got the courage to carry through their threats,” said the elderly pension-plan founder. “I challenge them to go through with their plan to put me on trial before the House." Dr. Townsend, who said he would ‘‘rot in jail” before testifying further before the old-age inquiry, contended the committee was unwilling to accept responsibility for ‘‘any more persecution.” Afraid of the People, He Says Dr. Townsend said committee members are “afraid to face the American people” and forecast that they “will pass the buck to the courts rather than try me before the House.” Dr. Townsend’s new challenge was issued as the committee met in executive session seeking to determine its course of action. Two plans were under consideration but there was no certainty that either of them would be carried out. One plan was for certification of charges to the House and trial of Dr. Townsend for contempt by the House. The other plan provided for certification by the House of the charges of the District of Columbia Supreme Court. The second plan would mean no decision could be reached, probably, before the November elections. If the first program was followed it probably would mean the House would be tied up so long that adjournment would be delayed. The committee had olanned originally to meet at 9:3F j. m., vote an immediate recommendation to the House for a contempt citation and take up the matter on the House floor at 11 a. m. Overnight, however, the members appeared to have changed their attitude toward swift and drastic action against the 70-year-old physician whose dramatic exit from the committee room precipitated the crisis yesterday afternoon. New Inquiry to Start cuggestion for sending the case in to District Court would probably delay any final ruling on the question for months. It would mean that the House would vote a formal certification of charges which then would be prosecuted by the district attorney rather than by the House itself, sitting as a court of inquiry. None of the committee members, however, was willing to indicate what course of action would actually be followed. Meantime the inquiry was adjourned until later today when it was announced Townsend affairs would be dropped entirely and Dr. James A. Pope, head of another old age pension organization placed on the stand. Dr. Townsend’s withdrawal came yesterday after he had been subjected to three days of relentless questioning about his pension organization Before he reached the door he was Joined by the Rev. Gerald K. Smith, organizer for the late Huey Long’s “share our wealth” movement, who cleared a path for the aoctor through a crowd of spectators and newspaper reporters. The incident gave further impetus to rumors of a third party alliance between the two organizations and the Rev. Charles E. Coughlin’s National Union for Social Justice. MARKETS AT A GLANCE By United Press Stocks fractions to 2 points higher in dull trading. Bonds quiet and mixed; French bonds weak. Curb stocks fractions to more than a point higher. Chicago stocks higher, quiet. Call money 1 per cent. Foraign exchange, sterling firm, franca easier. Cotton 1 to 5 points higher. Grains, wheat up % to % cent, corn and oats easier, rye mixed.

The Indianapolis Times FORECAST: Fair and somewhat warmer tonight and Saturday.

VOLUME 48—NUMBER 62

Would Rather ‘Rot in Jail’ Than Face Inquisitors, He Declares. TERMS PROBERS UNFAIR Makes It Plain Grievance Is Against Committee; Not Congress. BY DR. FRANCIS E. TOWNSEND President, Old-Age Bevolving Pensions. Ltd. Copyright. 1936, by United Press BALTIMORE, May 22. Before appearing on the witness stand of the Bell House Committee, 1 had heard reports that the committee was determined to besmirch my character and put an end to the pension movement. I did not believe those reports. My faith in the United States Congress and my belief in the democratic processes of government told me that this sort of thing did not exist in America. I have had a rude awakening, for the Bell committee —with the exception of two members—is a sad representation of this democratic government in which I have so much faith. I told the committee under oath that I did not personally profit from the movement; I told them that I have no money with the exception of about SSOO. For two and one-half days, I patiently answered —as best I could—all the questions they put to me. Treated as ‘Criminal’ They did not seem interested, however, in the philosophy behind the pension plan. Instead, they asked me a series of s',upid, vicious questions filled with ii.uendo and intended to besmirch my character. In my efforts to answer them, I was confined to a laconic “yes” or “no.” They denied me any chances t j explain my answers. I have had in my pocket all this time a carefully prepared statement on my economic philosophy and ideas about the pension plan. I did not seek to convert the committee to my beliefs. I did believe, however, that an orderly legislative group would be interested in knowing something about the plan they were investigating. However, they refused to let me read the statement. They wanted to confine the committee testimony to petty matters of personalities. Therefore, I did what any upright American citizen would have done. No Offense to Congress The committee’s action just before I left the hearing room is typical. I asked permission to read a one-paragraph statement. I understand witnesses before committees are generally allowed to read statements. • But they denied me even this. I will rot in jail before I will go back before that committee to answer questions. I mean no offense to the Congress. I will appear before the House to answer any and all questions connected with contempt proceedings. I shall not allow myself again to be the victim of this congressional inquisition.

NEW DEAL POWER CASE RULING DUE U. S. Attorneys Confident of Program's Validity. By United Press WASHINGTON, May 22.—District of Columbia Supreme Court Justice Alfred A. Wheat prepared today to pronounce judgment on validity of the New Deal’s $200,000,000 municipal power program. Government attorneys were confident, with the start of closing arj guments, that the decision would i uphold constitutionality of the AdI minstration's program of financing publicly owned electricity systems with government funds. Such a ruliftg would be of major importance, a victory for one of the few remaining original recovery activities launched by President Roosevelt. The legal battle will go before the Supreme Court next fall, regardless of the winner in the lower district court. 2 KIDNAPERS DIE ON CALIFORNIA GALLOWS Abductors of Prison Board Members Lose Long Fight for Life. By United Press SAN QUENTIN, Cal.. May 22. Alexander McKay of Glasgow, l .’cotland, and Joseph Kristy of C'eveland, 0., were hanged on the San Quentin gallows today for kidnaping members of the California Prison Board in a break from prison made in January, 1935. Their execution ended months of desperate efforts by the British government to save Mackay on the ground his kidnap victims had not suffered bodily harm and that, therefore, the death penalty was not warranted.

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PATROLS GUARD COUNTYCREEKS Drive Launched to Protect Swimmers From Death and Disease. More than 100 men today patrolled the danger spots of Fall Creek, White River and Eagle Creek to protect swimmers from drowning and serious disease. Working under the recreation department of the Marion County Works Progress Administration, young men cover more than 20 miles of river and stream along stretches which have claimed the lives of many children in Marion County in past years. During the summer these sources of danger are to be patrolled every day and plans are being made to project the program through the the winter to avoid drowning caused by ice breaks. Watchmen are instructed to prevent swimming in places where drowning or infection might occur. They are to warn children of the danger and send them to the nearest of the estimated 25 supervised swimming pools or beaches. Several months of study in collaboration with the city Board of Health and the police department provided a survey of danger spots as a basis for patrol. All young men employed on this project are under the National Youth Administration. Unable to finish high school, they are employed during these months and money earned is to be spent on further education. The patrols work from 11 each, morning until 7 q^hight. The first rescue was- reported May 11, when the patrolman on Eagle Creek pulled Charles Fitzgerald, 10, from deep water when went beyond his depth. Health officials have stressed the danger, not only of drowning in these spots, but the possibility of disease coming from stream pollution. Eye, ear and throat infections and dysactery are said to result from polluted water. FIRECRACKERS IGNITED NEAR DR. ROSE’S HOME Squad Cars Answer Call to Physician’s Residence. A frightened neighborhood was aiding police today in an effort to locate persons who set off firecrackers near the home of Dr. E. E. Rose, 2153 Barth-av, last night. Dr. Rose, at whose home Sergt. Richard Rivers was slain by bandits, was the physician who gave medical aid to one of the wounded bandits and then called police. Explosion of the firecrackers caused neighbors to believe that friends of the bandits had returned for revenge. Twelve police squad cars answered the call to the physician's residence. Times Index Births 10 Grin, Bear It. .21 Books 21 Jane Jordan .16 Bridge 16 Merry-go-Rd .21 Broun 21 Movies 24 Clapper 21 Mrs. Feiguson 22 Comics 37 Mrs. Roosevelt 16 Crossword 19 Pyle 22 Curious World .23 Questions —22 Dietz 21 Radio 26 Dutcher 21 Scherrer 22 Editorials 22 Science 22 Fashions 16 Serial Story... 4 Financial 30 Short Story . 37 Fishbein 22 Society . 18 Flynn 30 Sports m. 31 Food 28 State Deaths. 25 Forum 22 Wlggam 21

FRIDAY, MAY 22, 1936

PLEASANT READING

Mercury Here May Reach 85, Bureau States United States weather forecast today propelled Indianapolis residents toward straw hats and other summer apparel as observers predicted an 80 to 85 temperature for the day with higher marks for tomorrow. Yesterday’s maximum temperature was 79. EISENHUT TO KEEP CITY STREET POST No Change to Be Made, Kern Reports. Mayor Kern announced today that no change is to be made in the office of Street Commissioner. Fred Eisenhut is to continue in that position, he said. It had been rumored that Claude E. Shover, who held the office before his unsuccessful campaign for the Democratic sheriff nomination, would return to the post. Mayor Kern made no statement concerning Shover, who could not be leached for comment. Mayor Kern also announced that the city asphalt plant is to be placed under the supervision of Henry B. Steeg, city engineer. A meeting this afternoon of Mr. Steeg, Mr. Eisenhut and Louis E. Brandt. Works Board member, is to plan repairs on principal streets leading to the Indianapolis Motor Speedway. THREE SQUADS ANSWER FALSE HOLDUP ALARM Speedway Employe Leans on Button in Downtown Office. Three squads of police armed with machine guns and sawed-off shotguns burst into the Indianapolis Motor Speedway office, 444 N. Capitol-av, this morning. Col. Eddie Rickenbacker, Speedway president; T. E. Myers, manager, and Joe Copps, publicity director, explained that an employe had leaned accidentally against the holdup alarm bell button.

Republicans Must Stay Conservative, Says Moses

Herewith is the third and last of a series of articles on “What Is Wrong With the Republican Party?” written for The Indianapolis Times by former Senator George H. Moses, Republican of New Hampshire. BY GEORGE H. MOSES (Copyright. 19361 The time has arrived for us Tories to come out from behind the bushes and expose ourselves as Tories. There is room in the United States for two major parties. One should be conservative, the other progressive, liberal or radical—the tag is not important. Because ours is traditionally a two-party system and because two strong parties are necessary to keep an adequate check one on the other, we should avoid, if possible, the development of a multiplicity of parties. Even less than France, which has suffered acutely from the girations of its bloc Parliament, is the United States adaptable to a multiparty arrangement. ,

FARMER SAVED IN $5500 FIRE Seven Cows, Calf Killed, Barn Razed; Wife Rescues Mate. Arland Coolman, 51, farmer at 56th-st and State Road 52, nursed burns on the arms and face today and thanked the quick-wittednass of his wife and the bark of a collie dog for saving his life yesterday when a fire destroyed his stock barn. The fire, caused by a shortcircuit in a light wire, caused $5500 damages and the deaths of seven registered cows and a calf. Mr. Coolman was milking cows in the barn yesterday evening. His collie dog, Peggy, saw a newspaper carrier approach the home and barked wildly. His wife, hearing the bark, looked out and saw the barn in flames. Mr. Coolman did not know of the fire until she ran to the barn and told him. The couple attempted to rescue the cows, but only one was saved. The cows were burned so seriously that they were taken to a slaughter house. A neighbor boy, Harold Bragg, reported the fire to nearby residents, but by the time other farmers reached the scene the barn was in ruins. The barn, built in 1870, was the largest and one of the oldest in Pike Township. One hundred bushels of corn, five tons of hay, 10 tons of straw and a strawstack near the barn were destroyed. Mr. Coolman said a part of the loss was covered by insurance. TWO KILLED IN BLAST Ohio Powder Plant Is Demolished by Two Explosions. By United Press PAINESVILLE, 0., May 22.—The Republican Bronze Powder Corp. here was demolished by two explosions early today. Two employes were killed. The victims were William Kish and Kennith Brown.

But unless the Republican party accepts its responsibility to represent the conservatives of the country and the Democratic party the progressives, the 1940 presidential election will almost certainly be a catch-as-catch-can affair with not only a third party but probably a fourth, fifth and sixth figuring prominently in the campaign. Several of the radicals who for years have been hiding behind Republican petticoats during election years have recently bolted our party to support Democratic candidates. I, for one, am not sorry to see them go. They belong with Roosevelt, not with us. Let him have them. We will trade Bob LaFollette and George Norris for A1 Smith and Carter Glass. We ought to be getting some of the nominal Democrats whose sympathies lie with us rather than the New DeaL A few of them have come over to our team in all but name. We should do everything we can to persuade them to come the (Turn to Page Three)

BANKERS OF STATE HEAR MARRINER ECCLES, HEAD OF U. S. RESERVE BOARD

GREENLEE AND M’KINNEY TIEUP NEAR, IS CLAIM Former McNutt Aid Hints Coalition, Scores WPA Report. BY DANIEL M. KIDNEY Times Staff Writer WASHINGTON, May 22.—Senator Sherman Minton is to place the name of Pleas E. Greenlee in nomination for the governorship at the Democratic state convention, it was announced here today. At the same time, Mr. Greenlee indicated that his delegate strength and that of E. Kirk McKinney, would unite against Lieut. Gov. M. Clifford Townsend, the third announced candidate. Mr. Greenlee, admitting that he supplied Senator Frederick VanNuys with cases for investigation of the Indiana WPA, termed the official report “plain political whitewash.” VanNuys Approves Report With a letter of approval from Harry L. Hopkins, administrator, the report exonerating Wayne Coy, Indiana WPA director, and his administration from political coercion, was presented yesterday to Senator VanNuys. The Senator said he thought the report was satisfactory. Although Senator Minton has criticised Mr. Greenlee for his vigorous attacks upon the state administration, he feels that Mr. Greenlee secured for him the nomination for Senator. After accepting Mr. Greenlee’s invitation to nominate him, Senator Minton said he also wanted to remain loyal to Gov. McNutt. Cairns 687 Delegates Mr. Greenlee claimed that he had 687 delegates pledged to nominate him at the Democratic state convention, and credited Lieut. Gov. M. Clifford Townsend with 684 and Mr. McKinney with 474. Adding his strength with that of Mr. McKinney, Mr. Greenlee said: “We can beat them.” He said that the Greenlee and McKinney camps would combine against Mr. Townsend. Criticising the WPA report, Mr. Greenlee charged that Pierce Williams, WPA investigator, did not get some of the names correctly. “Every case cited regarding my candidacy is authentic and I have first-hand knowledge of the political coercion used,” he said. “Somebody is just a liar,” and I don’t mean our boys back home.” First case cited in the Williams report was that of Curtis Hostetter, Greenlee supporter and publisher of the Rockville Tribune. Asa WPA (Turn to Page Three) CAB DRIVER ROBBED OF sl6, FORCED FROM TAXI Holdup Man Made Him Walk to Town, He Says. Forced from his cab by a welldressed young man, Robert Calender, 46, of 517 N. Delaware-st, was robbed of sl6 and had to walk to town at noon today, he told police. Cavender said he picked up the fare at Keystone-av and the Mil-lersville-rd and was driving to Millersville when the bandit pulled a gun from his pocket and demanded the money. The cab was found later at 42d-st and Key-stone-av.

HINDENBURG SPEEDING TOWARD NEW RECORD Tail Winds Give Hope of Making Eastward Flight in 48 Hours. By United Press ABOARD DIRIGIBLE HINDENBURG, May 22.—Capt. Ernst Lehmann, master of the dirigible Hindenburg, expects to set a 48-hour record fc .tween Lakehurst, N. J., and Frankfoit, Germany, he said today. The Hindenburg is flying far north of the direct course, but is expected to shave time from the 48 hours 28 minutes record set on the first eastward flight. In the first 24 hours after leaving Lakehurst, the Hindenburg made 1900 sea miles and at times reached a speed of 100 knots. On its westward flight it made at times only 20 knots because of head winds, which now are tail winds. Capt. Lehmann expected to reach the European coast this morning. LIGHTNING KILLS lOWAN Bolt Injures Four When It Strikes Among PWA Workers. By United Press SIOUX CITY, la., May 22.—A lightning bolt struck today among 500 PWA workers, killing George Uhl and injuring four critically. Two of the most severely burned and shocked were expected to die. Burned in Garage Fire A. J. Kendall, 3441 Boulevard-pi, was recovering today from bums on the face and arms which he received while fighting a fire yesterday in a garage and storeroom at 347 V/. 30th-st.

Entered as Seeond-Clas* Matter at Postoffice, Indianapolis. Ind.

Suicide Balked By United Press BOSTON, May 22. The mysterious blond who attempted to leap 3000 feet from an airplane over Boston Harbor yesterday told alienists today that she was Sue Lino, a Boston domestic. The young woman, who previously had stubbornly refused to identify herself, suddenly revealed her identity to Dr. Riley H. Guthrie, chief executive officer of Boston psychopathic hospital. Described by Dr. Guthrie as the victim of mental depression, the girl refused to reveal why she tried to leap from the plane, which she had hired for $17.50, ostensibly for a joy ride. The courage and resourcefulness of Charles W. Sutherland, husky pilot, saved him and his passenger from plunging to their deaths in Boston Harbor. With one hand he fought a desperate battle before restraining the girl and maneuvering his open cockpit plane to a safe landing at Boston Airport.

NELSON HOWELL IS DEAD AT 43 Mallory Purchasing Agent Had Been 111 Since February. Nelson B. Howell, 43, purchasing agent for the P. R. Mallory Cos., died last night in his home, 3711 Ruskinpl. Mr. Howell had been ill with pneumonia and a heart ailment since February, but apparently was recovering when he suffered a relapse a few days ago. Mr. Howell came to Indianapolis from New York City in 1929. He had been employed by the Mallory Cos. for about 14 years, officials said. They said they believed him to be a native of New York City. He is survived by the widow. The body is at the Flarmer & Buchanan Mortuary. Funeral arrangements are being completed.

‘JOKER’ DISCOVERED IN LEVYMEASURE Tax-on-a-Tax Feature to Be Reconsidered. By United Press WASHINGTON, May 22.—The Senate Finance Committee voted today to reconsider a section of the compromise corporate tax plan when a “joker” was disclosed whereby a heavier tax burden would be imposed on some corporations than committee members had planned. Study of the compromise convinced the committee when it resumed secret session today that it would, in some instances, levy a tax upon a tax. Asa result the committee voted to reconsider this part of the bill and began study of Treasury estimates on the yield of various rates. The so-called tax-on-a-tax developed in connection with the compromise plan putting an 18 per cent flat tax on corporations and a 7 per cent tax on undistributed profits.

ALLEN COUNTY COURT DECISION IS UPHELD Suit to Enjoin Auditor, Treasurer Lost by Trio. In an opinion handed down today the Indiana Appellate Court upheld the Allen County Superior Court in another suit involving the $1.50 tax law. Brought to enjoin the auditor, William Orthlieb, and treasurer, Fred Eppeman, of Allen County from making tax duplicates in excess of the limitation of $1.50, the suit was filed in 1934 by Emmett Martin, Otto Bonahoon and John H. Kieler. They appealed after an adverse decision. The $1.50 limitation imposed by Legislature is exceeded only in cases of emergency, the statute declares. $7860 P Ft EM IUMDRAW N ON SCHOOL BOND ISSUE $127,860 to Be Used on Remodeling Two Buildings. Bid of $127,860 for a $120,000 bond issue maturing in 20 years with 3.5 per cent interest was accepted today by the School Board. Proceeds are to be used for remodeling Schools 21, at 2815 English-av, and 44. at 2101 Sugar Grove-av. A six-room addition is to be built at School 21, and an auditorium and three-room addition at 44. Work is scheduled to begin soon. The board awarded contracts for a boiler and deep-well pump at School 64, 3000 Cottage-av, and for the resurfacing of the Manual Training High School playground.

FINAL-STOCKS HOME PRICE THREE CENTS

Introduced as Holding Second Most Important Post in Nation. OFFICERS TO BE NAMED Resolutions Are to Be Passed by Indiana Financiers. The Indiana State Bankers Association this afternoon S heard Marriner S. Eccles, chairman, Board of Governors, Federal Reserve System. He was introduced as the man who “holds the second most important office in the nation.” Mr. Eccles spoke after a luncheon in the Claypool. After his address the bankers were to pass resolutions and elect officers. He refused to allow his address to be reported by newspapers. A. G. Brown, Ohio Citizens Trust Cos. president, Toledo, 0., opened the second day session this morning with an address in which h® criticised government competition with private enterprise. Report Is Made A report of the education committee and an address by Avery G, Clinger, Columbus, 0., Ohio National Bank president, completed the morning meeting. Mr. Brown said, “the subject of government competition with private business is one that not only concerns the commercial banker, but every thinking American who can not help hut be alarmed.” “Surrounded by government-spon-sored credit agencies, which obviously have acquired an irresistible desire to make their services indispensable, and circumscribed by a regulatory system referred to as one of the most complex ever imposed upon any business of government, there is little wonder that the banker has moved slowly toward an aggressive program of lending—in fog, fear and confusion, his program, has necessarily been a negative one.” Suggests Action for Bankers Mr. Brown suggested that if the bankers of the country want the government to get out of the lending business they must demonstrate that they are able to take over as much of the available sound credit risks as possible. He said that if the government’s policy of lowering interest rates that can not be justified by actuarial experience continued, it would further demoralize private farm mortgage lending and would mean the subversion of the lank bank system. “The present situation is wholly artificial and any attempt to found a permanent policy upon it is bound to result disastrously,” he said. Terms Action Unfair He said that it seemed to him to be unfair of the government to provide a hundred million dollar subsidy to set up Production Credit Associations and that he could not appreciate the need for such associations. “Government influence in th® field of private lending will be halted only after it is generally acknowledged that there is no need for its participation. The banker, particularly the country banker, has the real opportunity to ‘nail* its progress on cold-blooded business appeal.” He said bankers should assum® a more aggressive attitude, lower the interest rates to meet the competition of governmental agencies and provide a proper quality of credit to meet the farmers' need, including a plan of payment commensurate with the ability of th® borower to pay. Mr. Eccles was met at the station by Gov. McNutt, B. D. Mitchell, (Turn to Page Three)

HIGH COURT SUSTAINS ELECTION CASE RULING Nine Warrick County Persona Escape Trial on Fraud Charge. By United Pres* The fight of nine Warrick County persons accused of election fraud to escape trial on the charge they were indicted by an illegal grand jury was won today before the state Supreme Court. The high court affirmed Warrick Circuit Court’s action in overruling the prosecution’s demurrer to abatement pleas they entered. Indictments were voted against the nine defendants after the general election in 1934. They filed abatement pleas on the charge the grand jury was drawn from a box containing duplicate names and that names of those on a previous panel had not been taken out before the new term began. PICKETS ARE ARRESTED Three Held After Clash With NonUnion Workers. By United Press KOKOMO, Ind., May 22 —Three pickets were arrested today after a clash with non-union workers at the F. A. Welsh Manufacturing Cos. Union employes at the plant walked out a year ago, demanding union recognition. The company now employs 170 men.