Indianapolis Times, Indianapolis, Marion County, 24 June 1937 — Page 1

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The Indianapolis Times

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VOLUME 49—NUMBER 90

- NAME DOZENS WHO ~ FORMED HOLDING FIRMS, CUT TAXEN

‘Andrew W. Mellon, Alfred P. Sloan Jv., du Ponts, Robert P. Scripps and Roy W. ; Howard Are Listed.

FISHER FAMILY

‘Nothing Illegal’ in

ALSO IS CITED Methods Used, Says

Commissioner Helvering to Joint Congressional Committee.

By United Press

WASHINGTON,

June 24.—Treasury officials told the

joint Congressional Tax Committee today that Andrew W. Mellon, former Secretary of Treasury, Alfred P. Sloan Jr., General Motors Corp. chairman, and dozens of other wealthy Americans formed personal holding companies and thereby

reduced their income taxes.

Internal Revenue Commissioner Guy Helvering emphasized that the methods used were legal. He cited the cases.

to the committee to show the need for remedial legislation

to close loopholes in present laws. Other persons named by Mr. Helvering as having formed personal holding companies included: Thomas W. Lamont, New York financier; John J. Raskob, former Democratic National Chairman: several members of the du Pont family of Wilmington, Del., the Fisher family of Detroit and Robert P. Scripps and Roy W. Howard. . Mr. Helvering explained to the committee the complicated methods whereby the persons who formed personal

holding companies saved

money on their tax returns

by placing their incomes in

the hands of the corporation and thereby taking advantage of various legal deductions allowed under the revenue laws. The commissioner said that holding company “devices of the sorts described and to be described before this committee are spreading very rapidly under present tax avoidance publicity conditions.”

Cites 17 Specific Cases

“The atmosphere in which such schemes grow so rapidly is well illustrated by a recent statement appearing in the press in which J. P. Morgan is reported to have said, ‘If the Govgrnment doesn’t know enough ollect its taxes a man is a fool to them. That attitude is fairly general.” Mr. Helvering submitted to the committee tabulations listing personal holding companies, the names of the persons who incorporated them, and the manner in which tax deductions were claimed under various sections of the internal revenue (Turn to Page Four)

BOB BURNS |

. ‘ Says: OLLYW OOD", June 24 — Carelessness is a bad trait, but as long as you're only careless with your own affairs, it’s really nobody slse’s business. The trouble is, wnen that trait gets hold of you, you're : : liable to be careless in your dealings with other people. I had a careless cousin down home who got a job with a contractor who was puttin’ up a big building. . The contractor was very strict and everybody said my cousin wouldn’t last three days with him. Sure enough, on the second ‘day he was workin’ on a high scaffold and he got careless and slipped and fell

" seven floors.

When he crashed to the ground, all the other workmen gathered around to see if he was dead or not and my cousin looked up and said, “If the buss gets sore, tell him I had to come down here for nails, anyhow!” (Copyright. 1937)

STILL HOPING FOR STEEL SETTLEMENT . . . . .

Despite Tom Girdler’s statement that the Republic Steel Corp. will not sign a C. I. O. contract, members of the Steel Mediation Board still hope to settle the strike. members of the board in session at Cleveland. Left to right: Edward T. MeGrady, Lloyd

ASKS PUBLIC AID IN GAMING FIGHT

Prosecutor Invites Any One To Present Evidence to Grand Jury.

Any one having evideNce of gam--

bling activities is invited to appear at once before the Grand Jury, Prosecutor Herbert M. Spencer announced today in answer to Criminal Court Judge Frank P. Baker's charge that “gambling is rampant here because there is a payoff to someone.” Earlier, Chief Morrissey invited Judge Baker, the Grand Jury, or a citizens’ committee to investigate police activities. Both Chief Morrissey and Prosecutor Spencer said they were doing all they could to cope with the problem. Fined on Abetting Charge Judge Baker made the charge in court yesterday when he fined Emil Rahke, alleged “lottery king,” $500 and costs for aiding and abetting a lottery. : Today Judge Baker declined to amplify his statements, and %dded he does not intend to call a special session of the Grand Jury to investigate conditions he says exist. Mr. Spencer said: “Any evidence of any description relating to gambling in any way will be welcomed by my office. We (Turn to Page Three)

JOAN BLONDELL HAS "MINOR OPERATION

By United Press HOLLYWOOD, June 24.—Joan Blondell, screen actress, was resting comfortably in Cedars of Lebanon Hospital today.after a minor operation. She was sent from the film set with a painful attack of neuritis yesterday. Dr. Stanley Immerman said she will be in bed a week. The actress had been fighting the ailment a fortnight trying<to complete a picture. Her husband, Dick Powell, is back at work after an influenza attack that forced him to stop work two weeks ago.

K. Garrison and Chairman Chari" Tatt. :

DISMISSAL OF BUTASH'S CASE HELD POSSIBLE

State’s Course Is Uncertain ~ After High Court ~ Voids Conviction.

NEW EVIDENCE LACKING

Incident Leading to Arrest Described as Trivial in Bench Ruling.

(Text of Ruling, Page Eight; Editorial, Page 18) :

Belief that Paul Butash, who yesterday won his Indiana Supreme Court appeal from a criminal syndicalism conviction, would be freed without a new trial; was expressed today by his attorney, John H. Kingsbury. Harris Hubbard, Steuben €ounty prosecutor, said he did not- know whether a new trial would be asked until he had studied the opinion, He added that the State has ‘no new evidence in the case. The Court’s decision yesterday, reversing the lower court and ordering a new trial, declared there was no evidence to support the Circuit Court's verdict. Meanwhile, officials said three courses were open: - 1. The Indiana Attorney General’s office could ask for a rehearing before the Supreme Court. 2. Prosecutor Hubbard could nolle prosse the suit. 3. The Prosecutor could take the case to a new trial.

Case Called Trivial

Attorney General Omer Stokes Jackson said a petition for a rehearing of such a case is ‘very unusual.” The Supreme Court yesterday described as “trivial” the incident which resulted in Butash’s trial under the State Criminal Syndicalisin law, passed in 1918. Charges that he advocated overthrowing the Government by force were filed after Butash spoke at a meeting of businessmen and TriState College students at Angola in May, 1936. Mr. Butash served about 10 months of a one-to-five-year sentence in the State Prison before the American Civil Liberties Union obtained his release on $5000 bond. Mr. Kingsbury said he had not yet read the Court's opinion, but believed that it “precludes another trial.” He said: “In the light of the Court’s opinion, as I understand it, I don’t see how the prosecution will have the nerve to present the case to another jury.” The petition on which the Court ruled yesterday also included an allegation that the criminal syns dicalism law is unconstitutional and in contravention of ‘he guaranteed right of free speech. The Court, however, did not rule on the act's constitutionality. “If there is a new trial, we will test the constitutionality of the law and go to the highest court of the (Turn to Page Three)

STORM LOSS $25,000 IN LAGRANGE COUNTY

Crops and Buildings Suffer Rain, Wind Damage.

LAGRANGE, June 24.—At least $25,000 damage was caused by a severe wind and rainstorm which

morning. At Howe the Lima Township gymnasum was partially destroyed when wind blew in the roof and wrecked one wall. Communication with Ontario and other small towns throughout Lagrange County was disrupted, but reports indicated heavy damage to crops and to frame buildings. Plato Hall, a farm community center near Lagrange, was reported

struck by lightning and damaged.

Here are

and Earl C, Richar

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swept over northeastern Indiana this |

THURSDAY, JUNE 24, 1937

U. S. Aviator Plans Polar Hop to Soviet

By United Press SAN FRANCISCO, June 24. —James Mattern, the -American flier, said today he would - start about Aug. 15 on a nonstop flight from Oakland, Cal, to Moscow, across the North Pole, in his twin-motored, $100,000 racing plane. He wiil refuel in the air over Fairbanks, Alaska, he said, and possibly may fly alone, using a robot pilot to relieve him at the controls. If necessary, he said, he would take a navigator. The plans were announced at a luncheon for the three Soviet fliers, Valeri Chkalov, Alexander Baliakov and Georgi Baidukov, who flew from Moscow to Vancouver, Wash., last week. Matern said the three Russian airmen and the Soviet Ambassador. to the United States, Alexander Troyanovsky, had invited him to make the trip, and he would undertake it to show America’s appreciation for the Russian flight.

KIWANIS URGES SAFETY COURSE

Advocates School Programs To Help Cut Auto Toll; Ends Parley.

Safety courses in all primary and secondary schools was urged in a resolution adopted by Kiwanis International at its closing convention session here today. Every club member was urged to take an active interest in programs to reduce the staggering traffic toll. In addition to classes in safe driving methods in all schools, the resolution advocated courses in highway safety for adults. A national alien registration law was advocated in the only other resolution adopted at today’s meeting in Murat Temple. Introduced by Philip N. McCaughan, Long Beach, Cal.,, the resolution claimed that such an act is- needed to determine how many aliens are being supported on public relief rolls. New International officers were introduced as the meeting neared adjournment. = Roe Fulkerson, humorist and: Kiwanis Magazine editorial writer; (Turn to Page Three)

VALETTE SUSPECT'S FREEDOM IS LIKELY

Witnesses Can't Identify Her at Showup.

By United Press CHICAGO, June 24—State’s attorneys trailed Mrs. Ruth Freed into Criminal Court today for what they expected would be her farewell appearance in the baffling case of “who killed Audrey Valette?” The chic Mrs. Freed asked for her release on a writ of habeas corpus. Assistant State's Attorney Mal Coghian said he “supposed” she’d get it. Mrs. Freed stood last night with seven other women, not connected with the case, under the glaring lights of the police “showup.” Facing them were two men and two women who said they saw a “mysterious dark lady” enter and leave the La Salle Towers Hotel at about the time

-Miss Valette, Clark St. butterfly girl,

was killed last July 2. The witnesses announced they could not pick the dark lady out of the group definitely. . . The Valette case appears as much a mystery as ever.

BODY FOUND IN RIVER

The badly decomposed body of a man was found on some driftwood in the center of White River, two blo€ks south of Southern Ave. this afternoon,

Mountain," The Times' new daily serial, begins today on Page 26.

"Superstition

=

’

FUROPE TENSE AS NAZIS SPEED SPANISH CRISIS

Britain and France Forecast Grave Situation Will - Follow Aggression.

REICH AND ROME LINKED

Hitler’s Ships Sail for Spain, Though ‘Leipzig Incident’ Is Closed.

By United Press The dynamite underlying the

Spanish situation appeared near the detonating stage today. Hitler and Mussolini presented a threat to the peace of Europe which belied their protestations that they want only an amicable solution of the conflict. At the same time a foreign office spokesman in Berlin announced that “Germany considers the Leipzig incident closed,” a powerful German fleet was sailing from southern Portugal toward the Mediterranean coast of Spain. The “Leipzig incident,” meaning Germany’s charges that a Loyalist submarine had tried to torpedo the German cruiser Leipzig, caused Germany and Italy to withdraw from the international naval patrol of Spain. Duce Massing Ships: As Germany concentrated the bulk of her fleet in the Mediterranean, Italy was reported to be acting in concert and planning to maintain a battle fleet in Spanish waters “to protect Italian shipping.” Britain and France warned Germany and Italy that any belligerent action would be regarded with the greatest gravity. : The British-French coalition feared that the two Fascist nations planned overt action on the slightest excuse to move into Spain and insure the victory of the Franco Rebels. . In Valencia Foreign Minister Juse Giral Pereira charged that Germany’s aliegation of an attack on the Leipzig was a maneuver intended to justify ‘an act of aggression or maneuver she might be preparing.” Reports from Argeles-Surmer said that the Spanish Rebel cruiser Canarias had sunk the Government trawler Trinidad in French territorial waters. C7 French Worried J Premier Chautemps’ new cabinet held its first meeting in Paris today and heard Foreign Minister Yvon Delbos report on the alleged attack on the Leipzig. French leaders were acutely anxious. Some doubt was expressed that France would remain inactive if Germany and Italy openly intervened in the Spanish war.

Charge Ammunition Shipped From U. S.

By United Press PHILADELPHIA, June 24. — The Philadelphia Inquirer said today that a cargo of arms and munitions destined for the Spanish Rebels left Philadelphia last week and another cargo was scheduled to sail from here shortly. Italian aid in hiring a crew and in purchasing arms was charged in a report, made by the editor of a Hungarian anti-Fascist newspaper published in this country, according to the Inquirer.

Entered as Second-Class Matter

at Postoffice, Indianapolis, Ind.

Cool Weather ‘Will Continue, - Bureau Claims

LOCAL TEMPERATURES

6am... 68 10 a. m... 78 7a. m.. 70 11 a.m... 80 8a. m... 4 12 (noon). 80 9a m.. 76 1p. m.. 84

Indianapolis residents need not fear an immediate heat wave such as is gripping the Northwest and already has claimed three lives, the Weather Bureau promised today. The highest United States reading yesterday was 108 at Burwell, Neb. The Bureau said today is to be cloudy and the temperature probably would be between 85 and 90. The forecast for tomorrow is possible showers or thunderstorms and a bit cooler.

10-DAY TRAFFIC TOLL PUT AT 10

Local Driver Killed After Three Die in Trolley Crash; County Toll 78.

MARION COUNTY TRAFFIC TOLL TO DATE

TRAFFIC ARRESTS

Speeding Running red light Running preferential street. ... Drunken driving ....... re said Improper lights ....... Improper parking ........ No Driver’s License ............ 1

(Another Story, Page Three)

Four more names were entered on Marion County's roll of traffic dead today as the 1937 toll reached 78, Six have died from accident injuries since Tuesday. Ten fatalities have been recorded in 10 days. Police yesterday arrested only eight motorists for violation of traffic safety laws, the smallest number for any 24-hour period in several months. Three others were charged with improper parking and one with failure to have a driver's license. George Barbour of 1460 N. Pennsylvania St. was killed instantly last night when the car in which he was riding crashed into an abutment at. the Pennsylvania Railroad elevation ovér Southeastérn Ave. He was 42. A 46-year-old woman, identified as Mrs. Gertrude Johnson, 15 Highland Ave. was injured critically in the accident.: . Three Negroes were killed and a fourth injured yesterday afternoon in a collision between their auto and a streetcar at 18th and Illinois Sts. : Killed were Ernest Preston, 40, of 441 W. 18th St.; Will Houchins, 54, of 801 Roache St., and Thomas Dalton, 30, of 444 W. 21st St. Walter Hayes, 23, of 2038 Highland Place, the driver, was taken to City Hospital where his condition was described as fair. The streetcar, which had been headed south on Illinois St., jumped the track following the crash, siaking up 30 pasesngers and injuring slightly John Newkirk, 46, of 121 McLean Place, the operator. Passing motorists found Mr. Barbour’s body lying beside the wrecked

(Turn to Page Three)

Tells of Fixing Power Value Before Inspection

W. V. Burnell, an appraisal engineer hired by the Indianapolis Power & Light Co. to testify in its rate case before the Public Service Commission, testified today he made his estimates after spending two weeks here and without inspecting the conipany’s physical property. Fixing the company’s going concern value at eight million dollars, Mr. Burnell was cross-examined by Commission Chairman Perry McCart, Public Counsellor Ralph Hanna and James E. Deery, representing the City. Mr. McCart claimed a “going con-

cern” item of three million dollars

Mr. Girdler, chairman of the Republic Steel Corp, might have been signifying his opinion of the C. I. O. when this photo was taken, He is the second from the left. Others are, left to right, Donald B. Gillies, Republic vice presiaent; C. M. White, vice president, ds, assistant to the vice president. :

had been included twice in Mr. Burnell’s estimate, and said: “Unless you can justify this, you will not get much consideration here. ‘Going concern’ value is just someone's guess.” Later Mr. McCart told Mr. Burnell he was “just piling up a lot of useless records here.”

“Going concern value,” it was ex-

plained, is that intangible value which accrues to a company through public good will. A company valuation must be set by the Public Service Commission, it was said, before a final rate can he fixed.

(Turn to Page Three)

. . THIS MIGHT BE A SIGNIFICANT GESTURE . . . . . . . TROOPS MOVE

PRICE THREE CENTS

i

GIRDLER DEFIEN

C.1.0. AT

ON LABOR POLICY

&

Roosevelt Is Proposed As Arbitrator in Wide Walkout.

PLAN IS UNION’S

Warren Strikers Are Locked Out by Firms There.

(Other stories, Page 11; Editorial, Page 18.)

By United Press Philip Murray, chairman of the Steel Workers Organizing Committee, and leader of the steel strike, today offered to accept President Roosevelt as “final arbitrator” in the in-

dustrial dispute. Murray's offer was made as the Federal Mediation Board, headed by Charles P. Taft II, met at Cleveland with representatives of the four struck steel concerns—Bethlehem, Inland, Youngstown Sheet & Tube and Republic—in an attempt to find a basis for settling the strike affecting approximately 80,000 men. “We are here today, placing our cards face up,” Murray's statement said.

“We have told the board we are ready to negotiate in good faith, looking forward to a signed egreement.”

Steel Firms Remain Firm

Despite optimism expressed in Washington by Secretary of Labor Perkins, all indications here were that the steel companies were stariding firm in their refusal to sign a contract with C. I. O.—sole issue in the strike. : Other developments included: - Action by five industrial concerns in Warren barring almost 1000 workers from their jobs as a result: of the C. I. O. labor holiday yesterday. Three plants closed doors. ° : An appeal by Mayor Lionel Evans of Youngstown to President Roosevelt and Governor Davey to protect nonstriking steel workers who want to go back to work.

Arrange to End Threats -

Arrangement among military officials, union leaders and city officials at Warren of a system of picketing designed to end threats of clashes between strikers and nonstrikers. Governor Earle, of Pennsylvania, ordered termination tomorrow of the modified form of martial law under which Bethlehem’s great Cambria steel plant was closed. The demonstrations accompanying yesterday's call for a general walkout at Warren smoldered far into the night as police and militia held the crowd in check and enforced a court order permitting nonstrikers to réturn to the Republic mills. Although only a few .hundred workers came out of the Warren (Turn to Page Three)

TIMES FEATURES ON INSIDE PAGES

Movies Mrs. Ferguson 17 Mrs. Roosevelt 17 Music Obituaries ... O’Keefe

BOOKS ..0ee.- 17 Bridge ...... 14 Broun ....... 18 Comics Crossword ... 26 Curious World 26 Editorials .... 18 | Pegler Fashions .... 14 | Pyle Financial ... 20 | Radio Fishbein .... 14! Scherrer .... Forum ...... 18 | Serial Story.. 26 Grin, Bear It 26 | Short Story.. 26 In Indpls. ... 3 Side Glances. 17 Jane Jordan. 14 | Society 15 Jasper 27 | Sports 22 Johnson State Deaths. 5 Merry-Go-Rd. 18 | Wiggam ..... 27

INTO TROUBLED OHIO

x

HEARING

Refuses to Sign Without Ruling, He Says At Quiz.

MALIGNS MURRAY,

Union Chief Is Liar, Steel Firm Head Declares. |

By United Press

WASHINGTON, June 24.— Tom Girdler, Republic Steel Corp. chairman, told the Sen« ate Postoffice Committee toe day he would not sign a cone tract with the Committee for Industrial Organization should an election among his employees result in the C. I, O. being chosen as their bargaining agent. Girdler, appearing before the coms mittee in connection with its hear= ings on resolutions proposing formal inquiries into interference with the mails by steel strikers and other steel strike matters, declaring that the C. I. O. and its leaders “are utterly irresponsible.” ‘ “Republic Steel,” he said, “will not sign a contract with irresponsi= ble parties.” Charging that the C. 1. O. was to American industry,”

clared: Won't Sign Contract

“I won't sign a contract with the C. I. O. That isn’t required of me by law and the law does not require me to sign a contract with the C. 1.0” As Girdler testified before the Postoffice Committee, anofher Senate group—the Education and Labor Committee—approved a bill designed to strengthen the present Byrnes act prohibiting interstate transportation of strikebreakers. The new measure would make both the person transported and the person doing the transporting guilty of a Federal offense. Girdler was asked by Senator Ellender (D. La.) what he would do if the Steel Mediation Board ordered a National Labor Relations Board election among his employees and the employees voted for the C. I. O. “Would you still refuse to sign?” Ellender asked. “We still wouldn’t sign a cone tract,” Girdler replied. : Asked If He Would Act

Ellender asked if Girdler would comply in case the National Labor Relations Board ruled that employe ers must sign contracts with eme ployee representatives. “I wouldn't care what they ruled on that, because that isn’t the law,” Girdler said. “If the Supreme Court upheld a ruling, would you comply?” Ellender asked. “Whenever,” Girdler replied, “the law says I have to sign a contract, and the law is properly upheld, then I'll have to sign a contract. “I wouldn't refuse to sign a cone tract with the C. I. O. if the Sue preme Court said I had to, because I don’t violate the law. “I'm trying to tell this committee I won't have a contract with an ire responsible, communistic, violent, racketeering organization like the (Turn to Page Three)

policy of the “rule or ruin Girdler de

‘MAILERS ARE STILL OUT

(Early Details, Page 11)

¢

By United Press PITTSBURGH, June 24.—Striking mail room employees, who have forced suspension of Pittsburgh's three newspapers, today rejected again a proposal that they return to work immediately despite the possi bility that the international union may bring men in to work their jobs,

AREA . . .

Times-Acme Photos.

Resentment against Ohio National Guard was reported mounting today as the troops enforced a court order that those plants which had been operating be allowed to continue work. Nonstrikers, equipped with blue cards, are permitted to enter the plants. This photo was taken as one unit moved into the area. : LF

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