Indianapolis Times, Indianapolis, Marion County, 14 January 1938 — Page 1

\ SCRIPPS ~ HOWARD

ASIATIC STUDY FOR PRESIDENT

Checks Japanese Holdings On Mindanao: Conference In Shanghai Set.

LEBRUN SEEKS CABINET

League May Delay Session; Tokyo Considers New Chinese Policy.

BULLETIN Jan. 14 (U. P).— Bonnet, Finance Minister in the defeated Chautemps Government, agreed today to try to form a new Cabinet,

PARIS, Georges

MANILA—McNutt conducts survey of Far Eastern situation for Roosevelt, PARIS—Lebrun seeks strong statesman to replace shattered Popular Front Government. Deladier refuses bid, : GENEVA-—League council expected to postpone session set for Monday because of French crisis. NEW YORK-—Franc advances early trading. SHANGHAI—Chiang Kai-shek demotes three generals to strengthen resistance to Japan. TOKYO—Announcement of Japanese policy reported awaiting secret note from China. HENDAYE—Spanish Rebels mass warships near Gilbraltar, apparently for attack on Almeria.

WASHINGTON, Jan. 14 (U. P.).—Paul V. McNutt, American High Commission-

er to the Philippine Isldands, |

is making a flving survey of American interests in the Far East and will report personalIv to President Roosevelt early next month, it was asserted in high official quarters today. Mr. McNutt now is on a tour of investigation of Japanese

where Japanese virtually control

new

land | holdings on the Island of Mindanao |

The Indianapolis Times

FORECAST: Snow and colder tonight; lowest temperature about 20; tomorrow fair and continued cold.

VOLUME 49—NUMBER 265

MWNUTT OPENS | Ray Threatened to ‘Kidnap My Chil

Miss Bess Robbins (left) today waged a technical battle in Circuit Court at Dan- | ville to exclude statements police said Mrs. Etta Jones, shown with her, | signed in connection with the murder of 13-year-old Helen Schuler, whom Mrs, Jones

is accused of killing.

RULES DRINKING MUST BE PROVED

Court Orders Police to Ob- . tain Witnesses to Intoxi- | cation of Drivers.

Criminal Court Judge Frank P. | Baker today warned traffic officers that hereafter he would not accept their unsupported testimony on the drunkenness of drivers when the | driver denies the charge. “It is the duty,” he said, “of the arresting officer to get witnesses to

the condition of the driver and they |:

Sixteen Found Guilty | In all, 16 motorists were found

‘Accounts

Third Degree Methods Charged in Child Slaying

By SAM TYNDALL Times Staff Writer

DANVILLE, Jan. 14 —Mrs. Etta

| that she was questioned at midnight by Sheriff Otto Ray in a darkened room as she was forcea to touch the body of 13-year-old Helen Schuler,

FRIDAY, JANUARY 14, 1938

made and

methods,

Jones told Circuit Court here today

othe child she is accused of killing.

VINGENNES UTILITY

PURGHASE GLEARED

Board Expldins ‘Going Concern’ Item.

Purchase of a water utility by the Vincennes Civil City for a base price of $1,125,000 has been satisfactorily explained, Chief Examiner William P. Cosgrove said today, making public an itemized State Accounts Board report. Previously an item of $102,960 for “going value” and the method of the City bond issue were questioned. “There was some doubt as to

the important hemp industry and | guilty of traffic violation charges | whether the ‘going value’ was not are reported to have some 15,000 and the fines and costs amounted | the City’s own franchise given to nationals concentrated around the | to only $105. More than $140 in fines | the former owners, and whether the

important hemp port of Davao.

On his return to Manila he is expected to take passage on an American warship and go to Shanghai to confer with Admiral Hairy E. Yarnell, Commander-in-Chief of the U. S. Asiastic fleet, and other American officials. President Roosevelt and State Department officials are concerned over the Shanghai situation where Japanese threats of encroachment on control of the International Settlement are considered alarming from the point of view of American rights and interests.

Highest Ranking Officer

Mr. McNutt is the highest ranking American Government representative in the Far East, a former military man, an experienced politician and considered a keen observer of national and international affairs. It was understood President Roosevelt is anxious to obtain Mr. McNutt's observations at first hand of the entire Far Eastern situation. Returning from Shanghai to Manilla or Hongkong, Mr. McNutt is due to leave for Washington on the Pan-American Airways clipper on Jan. 29 and is due in the United States on Feb. 5. Survey Significant

His survey and report to President Roosevelt were considered of special significance in view of recent developments. These included: 1. The convening of the Japanese Imperial conference at Tokyo presided over by Emperor Hirohito, at which the most important phases of the Japanese Government foreign policy and military and naval program in China were discussed. Reports from Tokyo indicate that a formal declaration of war on China may yet be made by Japan to give international legal standing to her naval blockade of Chinese ports. 2. Dispatch of more U. S. cruisers to Australian waters with three light cruisers proceeding to Singapore for a "courtesy call” at the British Naval base at Singapore. Joint U. S.-British Naval action in the Far East long has been advocated by British leaders and dispatch of the cruisers to attend the formal opening of the Singapore base was considered in diplomatic quarters here to be of special significance. 3. The possibility that the three light cruisers, upon completion of their Singapore visit, may be “detained” indefinitely in Asiatic waters for service during the continuance of the Far Eustern crisis

Lebrun Seeks Strong Man

To Form Cabinet

PARIS, Jan. 14 (U. P.).—President Albert Lebrun sought desperately today for a strong statesman to form a Government to replace the shattered Leftist Popular Front and make an effort to lead the country out of a grave financial erisis. Trading in the franc was suspended and it was considered imperative to form a Government over the week-end which would be prepared to take energetic measures to halt the fall of the franc, stop the flight of capital, replenish the {Tura to Page Three)

and costs were suspended. Eight speeders paid $70. Four | drivers found guilty of running] | preferential streets were assessed an | | average of $4 each. | | Four persons were injured in traffic accidents overnight. | In Criminal Court, Judge Baker | also warned persons convicted in lower courts and given suspended sentences that when they appeal the | convictions to Criminal Court they | lose the suspensions. | The first ruling came in the case of Elmer W. Pettit, 22, convicted by | Judge Charles Karabell of drunken driving and drunkenness. Judge | Baker affirmed the lower court's | finding and ryled he would have to (Turn to Page Three) |

SNOW DISAPPEARS AS MERCURY RISES

Colder Weather Forecast for Tonight by Bureau.

TEMPERATURES 31 31 31 31

31 32 35 38

19a. m.... 1 @. mm... 12 (Noon) 1pm...

Temperatures rose six degrees in two hours today melting most of | the thin blanket of snow which | earlier had covered city streets. More snow was forecast by the | Weather Bureau for tonight and colder weather, with the lowest temperature about 20. Tomorrow it will be cold and fair, the Bureau predicted.

GIRL SAVES $30,000 ' FROM BANK BANDITS

| | CLEVELAND, Jan. 14 (U. P).— | A girl stenographer’s alertness saved | $30,000 from three armed men who | today held up a Lorain Street Bank | branch and escaped with between $5000 and $10,000. Mary Probala saw the gunmen climbing over the cashier's cages. She ran to a rear room, locked herself in and pushed an electric button which locked two vaults containing the $30,000.

Court Ruling On Truck

Superior Court Judge Joseph Williams was to rule today on the con- | stitutionality of a recently enacted | State law requiring trucks to be equipped with electric safety devices. The suit, filed Dec. 2 by 30 truck operators, charged the law which gives the State Safety Committee power to make regulations, is unconstitutional because it delegates legislative power to the committee and gives it “discretionary power” without defining how it can be ex-

City was not actually buying its own franchise,” Mr. Cosgrove said. “No charges are to be presented.” The Accounts Board finding, made by Examiners J. H. O'Neall and G. H. See, showed the city issued $1275,000 worth of bonds to make the purchase from Charles M. Smith, Chicago. In that bond issue, however, city officials explained, was an unauthorized bond discount of $150,000. The report stated eventual cost to the city was the same whether it issued bonds equal to the purchase price at a high rate of interest or issued $1,275,000 worth of bonds at a lower rate.

'COCHAIRMEN NAMED

BY COURT COMMITTEE

Dr. F. S. C. Wicks, All Souls Unitarian Church pastor, Mrs. Austin Clifford and Mrs. Perry Lesh today were named cochairmen of the Juvenile Court Committee. The group. announced that directors of the Indianapolis Chapter, American Association of Social Workers; Indianapolis Chamber of Commerce and American Association of University Women had indorsed the committee's program. The committee was organized recently to co-operate with political parties in selection of candidates for Marion County Juvenile Court Judge in the 1938 primary election. Organizations which already have indorsed the committee's program are the Seventh District Federation of Women's Clubs, Junior Chamber of Commerce, Y. W. C. A., Indianapolis Council of Women and the Caroline Scott Harrison Chapter, D. A R.

DODD’S TALK DRAWS NAZI ENVOY PROTEST

(Earlier Story, Page 25)

WASHINGTON, Jan. 14 (U. P).— German Ambassador Hans Dieckhoff protested to Secretary of State Hull today the remarks of former American Ambassador to Germany William E. Dodd, in a speech at New York last night. Secretary Hull declined to cite the exact passages. He said he reminded the German Ambassador the right of free speech is observed in this country, and Mr. Dodd is now a private citizen.

Due Today Safety Law

Attorney General Omer Stokes Jackson filed a demurrer to the complaint and then agreed to delay enforcement until Feb. 1. The law was to have gone into effect Jan. 1. The statute sets up the State Safety Committee, empowering it to order the type of signals which frucks shall’ use. Judge William said he would give a ruling at the close of a hearing on Mr. Jackson's demurrer this afternoon.

{ murder.

| nied the charge,

The testimony was given to Special Judge Edgar A. Rice with the jury out of the room as Defense Attorney Bess Robbins waged a battle to have ruled inadmissible statements officers said Mrs. Jones made and signed after the Beech Grove

Miss Robbins charged the statements were obtained under the duress of “third degree” tactics and Prosecutor Herbert M. Spencer de-

Courtroom Packed

The Courtroom was packed today, some of the audience being Central Normal College students, One woman startled the Court by standing up in her chair and holding a mechanical hearing device in the air the entire session, ‘Miss Robbins placed Mrs. Jones on the stand for the direct examination and asked: Q—When you were taken to jail did Sheriff Ray ask you to make a signed statement? A—Yes. I told him how it happened and I told him I would not sign a statement unless it was in the presence of a lawyer or friends, Q—Did the Sheriff ask you to make a confession? A—VYes, He told me I couldn't have a lawyer until he got through with me.

Kidnap Threat Told

Q—What else did Sheriff Ray say {to you? A—He said that unless I confessed the way he wanted me to he would kidnap my child and take

it away so I could never see it again. | Q—What else? A—Sheriff Ray | told me he had the proper papers | from the judge to take my child

{away from me and he kept calling | Police Chief Charles Lowe of Beech | | Grove and told me he would have | | Chief: Lowe go and get my child if | I did not confess in three minutes. | | Q—What did they do the next | night? A--They took me at mid- | night to the 'undertaker’s parlor and | made me stand before the casket of [the child while it was dark in the {room and took my hand and made (Turn to Page Three)

SEVERAL INJURED IN FOUNDRY LABOR RIOT

NEW HAVEN, Mich., Jan. 14 (U. P.).—Peace was restored to this industrial village today after a night of rioting at the New Haven foundry. Two deputy sheriffs were injured and several union members and sympathizers received minor hurts as they struggled for control of the foundry. Officers, after four attempts to break through picket, lines which had surrounded the plant since it was closed three days ago because of labor difficulties, were repulsed. Tear gas bombs were hurled into the 700 pickets and sympathizers but they did not disperse. Meanwhile, Sumner D. Lampkins, foundry owner, met with officials of the United Automobile Workers Union. After a seven-hour session, a truce was called and Mr. Lampkins said he would not attempt to reopen the foundry until a final settlement was reached.

APARTMENT FIRE

Fire starting in the basement of the Imogene Apartments, 1054 W. 30th St, this afternoon swept through five rooms, reducing furniture to embers. Occupants of the two apartments were Mr. and Mrs. A. J. Harrington, Apt. 4, and Mr. and Mrs. Sidney Clark, Apt. 2. Other occupants of the building, whose apartments were damaged only by smoke, were Mrs. Nellie Treat, Apt. 1, and Mr. and Mrs. Russell Stark, Apt. 3. Loss was estimated at $5100.

PROTEST RATE RISE

WASHINGTON, Jan. 14 (U. P).— Business groups of seven states, including Indiana, today notified the Interstate Commerce Commission of their opposition to the railroad's pe-

HINT INQUIRY INTO

SWEEPS 5 ROOMS |

tition for a 15 per cent increase =i freight rates,

Left to right, Investigator Al Lynch, Prosecutor Herbert M. Spencer, Deputy John M. Kelly and Prosecutor John A. Kendall of Hendricks County. charged that Mrs. Jones’ statements were obtained through use of third degree

d,’ Mrs. Jones Says

Entered as Second-Class Matter at Postoffice, Indianapolis, Ind.

Times Photos.

Defense counsel has

VANNUYS PLANS TO RETURN SOON

Senator to Open Office in City After Antilynching Debate Is Ended.

By DANIEL KIDNEY Times Staff Writer WASHINGTON, Jan. 14.-—Sena-tor VanNuys intends to return to Indiana as soon as the Antilynching Bill is disposed of in the Senate, he announced today. He will make his headquarters at the Spink-Arms Hotel in Indianapolis, where he will confer with his lieutenants from throughout the state regarding plans for renomination, he said. The senior senator repeatedly has indicated that if the Statefhouse Democrats dictate his successor in convention he will run independently. Since the formal announcement of Samuel Jackson, Ft. Wayne, that he will seek the Demaocrafic nomination, his mail has been “more favorable than ever” Senator VanNuys declared.

Waits Senate Vote

Meanwhile, he is spending each day on the Senate Floor awaiting a vote on the Antilynching Bill of which he is coauthor with Senator Wagner (D. N, Y). “As chairman of the Judiciary Subcommittee which held hearings on the antilynching measure, I feel certain of the constitutionality of the present bill,” he asserted. Senator VanNuys says the two weeks of debate cannot be called a filibuster since all the Southern Senators and Senator Borah (R Ida.) have “talked on the merits of the bill and not merely made time killing speeches.” A petition urging passage was received by Senator VanNuys from the Association for Race Tolerance, New York City. It carried 15,000 | names from every state in the | Union. | “The bill has been indorsed by | 35,468 Southern women and many | of the leading Southern newspapers,” Senator VanNuys said. He predicted it will pass next week, “We are ready to vote any time and not debate it at all,” he said. “There are 70 Senators who have given me their word they will support the bill's passage.”

ICKES' DEPARTMENT

Oak-ay

McCarthy No. 1 U. S. Hero; Situation Unhealthy, Lewis Says.

HICAGO, Jan, 14 (U., P.).— Novelist Sinclair Lewis, America’s first Nobel Prize winner for literature, today listed “the nation's public heroes” as: Charlie McCarthy. Mickey Mouse. Robert Taylor. Clark Gable. Dale Carnegie, Tom Girdler. John L. Lewis. Bruce Barton. Joe DiMaggio. Jim Farley. Rudy Vallee. Bernarr MacFadden. The list, Mr. Lewis said in an address, indicates “an unhealthy state of affairs.”

DOCTOR HOPEFUL AS GARDOZ0 HOLDS GA

Justice Maintains Improved Condition 24 Hours.

WASHINGTON, Jan, 14 (U. P).

"HOME

FINAL

PRICE THREE CENTS

Profits and Gains Levies.

Small Exempted in Report.

WASHINGTON, Jan. 14 (U. P.).—The House Ways and Means Tax Subcommittee today proposed far-reaching changes in the undistributed profits and capital gains taxes and declared that such changes should mean ‘‘a very substantial stimulation to

business.” The subcommittee, headed by Rep. Fred M. Vinson (D. Ky), recommended in a report to the full committee 62 specific changes in present tax laws under five different headings and also proposed that all internal revenue laws be codified. No changes were proposed in levies on individual incomes. The report. will form the basis of the Revenue Act of 1938, which leaders hope to push to enactment by mid-March. The full House Ways and Means Committee will begin héarings on it tomorrow.

Small Firms Favored

Most important single recommendation of the report was that America’s “small” corporations—those earning $25,000 a year or less and comprising 88 per cent of the 200,000 that do the business of this nation— be exempted from the undistributed profits tax. The recommendations for changes in the income taxes on corporations included: General rule: A tentative tax of 20 per cent on corporations earning more than $25,000 a year, with credits for distribution of dividends at the rate of (Turn to Page Three)

RECESSION BLAMED

—Associate Justice Benjamin N. Cardozo has maintained during the last 24 hours the improvement

which was noted in his condition |

yesterday, Dr. J. P. Earnest Jr., reported today. “The doctors find this a hopeful

-| sign,” Dr. Earnest said.

Yesterday's report of a slight improvement in the 67-year-old Justice’s condition was the first encouraging word since Dr. Earnest revealed Sunday that the Supreme Court Justice had suffered a series of severe heart attacks during the preceding week.

F. D. R. Sees No Reason for

Banning Woman Justice

WASHINGTON, Jan. 14 (U.P) — President Roosevelt today declared he knew of no reason why a woman should not sit on the United States Supreme Court bench. The President's view was expressed in response to a press conference questioner who asked Mr. Roosevelt to state his opinion without regard to the fact that a Supreme Court vacancy now exists. Personalities and the vacancy aside, Mr. Roosevelt said he saw no reason why a woman should not serve on the high court.

Senators Hear of Espionage, Theft, Wire Tapping.

WASHINGTON, Jan. 14 (U, P). —The inquiry by the Senate Public Lands Committee into qualifications of Ebert K. Burlew to be Assistant Secretary of the Interior may lead to an investigation of reported wire tapping and espionage in the Department of the Interior, it was believed today. ‘ Although Chairman Alva B. Adams (D. Colo.) emphasized that the investigation would be confined to Mr. Burlew’s nomination, other Senators indicated privately that it might develop into an investigation of all affairs of the department headed by Harold L. Ickes. What was expected to be a routine examination of Mr. Burlew’s nomination by President Roosevelt, unexpectedly turned into a sensational inquiry yesterday with testtmony on wire tapping, secret police activities in the Department, and an embezzlement of $84,000 involv(Turn to Page Three)

"Inside the C. 1. O."

Benjamin * Stolberg in the fifth article of his series tells the story behind the Homer Martin gun episode.

Editorials Urge

Miss Allen for Court

CLEVELAND, Jan. 14 (U, P).— The five Ohio Scripps-Howard newspapers, in front-page editorials, today urged the’ appointment of Judge Florence E. Allen to the U. S. Supreme Court. The newspapers pointed out that of 500 cases Miss Allen tried as a Common Pleas judge, only three were reversed and they on technicalities. She now is on the U. S. Circuit Court of Appeals bench in Cin-

cinnati. FORD RECALLS 10,000 DEARBORN, Mich, Jan. 14 (U. P.).—Ten thousand men were notified today by the Ford Motor Co. to return to their jobs at the River Rouge plant Monday morning.

ON NEW DEAL POLICY

Business Willing to Assist, Coal Dealer Says.

WASHINGTON, Jan. 14 (U. P.). —President J. D. A. Morrow of the Pittsburgh Coal Co. charged before the Senate Unemployment Committee today that “this depression was created here in Washington.” He declared only prompt, affirmative executive and legislative action to dispel the doubt, apprehension and distrust general in the country would end the recession, “This depression is a matter of deep concern to the heads of every business and industrial enterprise, large and small,” Mr. Morrow said. “It was not of their making or seeking. It came upon them because a spreading doubt among millions of customers dried up orders for the output of their mills and mines and factories. “Our company and every other will give the Government every assistance to restore prosperity. But this willingness on the part of industry is not enough. This depression, created in Washington, will have to be cured here by a frank acknowledgment of some mistakes that have been made.”

CURRENCY OFFICIAL PLANS RESIGNATION

WASHINGTON, Jan. 14 (U. P) — Friends of Controller of the Currency J. F. T. O'Connor said today he plans to announce his resignation next week. He also is expected to disclose whether he intends to enter the race for the Democratic gubernatorial nomination in California, his home state. At the same time, it was reported that he was one of the many under consideration by President Roosevelt for the Supreme Court vacancy, created by the retirement of Associate Justice George Sutherland.

‘Want Only Tommy,’ Says Betty as Many Propose

LINTON, Jan. 14 (U, P.) —Twelve-year-old Betty June Lacer, who isn't old enough to marry the father of her baby son, today studied numerous marriage proposals she has received through the mail. Although she read the letters carefully, Betty June said she wasn't interested in marrying anyone except 13-year-old Tommy Chapman, the baby's father. Indiana law says they can’t be married for at least four years. The baby, now almost three weeks

See Page 23.

ard Chapman. Most of Betty June's time is spent in caring for the infant, Packages and letters containing clothing for the young mother and her baby have arrived from all parts of the United States and Canada. Interspersed among them were several marriage proposals. “They are fun to read” Betty June said. “But I wouldn't marry anyone except Tommy.” Ben Lacer, the girl's father, reses to read them, saying they are

SIZE IS BIG PON

Corporations

. R. HITS ALL LDING FIRMS; AX CUT ASKED

Changes Proposed in|

Lewis, Lamont and Young Talk With Roosevelt.

STEEL INVOLVED

Ex - Braintrusters in Conference at White House.

BULLETIN WASHINGTON, Jan. 14 (U, P.)=John L. Lewis said after his White House conference with. industrialists that labor and business are impressed with desirability of co-operat-ing with Government on a definite program to meet the business recession,

WASHINGTON, Jan. 14 (U. P.) .—President Roosevelt today demanded elimination of all holding companies from America’s economic structure and called in top-flight labor, banking and industrial leade ers to discuss his fight against

business recession.

The President in drastic language revealed plans to carry the holding company warfare started hy the New Deal in the utilities field to all industry. He cited banking specifically as an area in which the Administration objects to holding company control. Immediately ' after warning in a press conference statement to reporters, Mr, Roosevelt left his executive office for the White House for an important conference, Those he invited to mdet with him were: John L, Lewis, Committee for Ine dustrial Organization chairman; Phillip Murray, Mr. Lewis’ chief lieutenant; Owen D. Young, General Electric Co. chairman; Thogas W. Lamont, J. P. Morgan Co. part= ner; Adolph Berle and Charles Taussig, economic specialists and braintrusters of the early New Deal era.

uttering his

Subjects Are Listed

Mr. Roosevelt declared that spe= cific methods of proceeding against banking and business holding companies had not been determined but uttered his unalterable opposition to such structures and emphasized that by no means would the New Deal consent to modification of the “death sentence” imposed on utile ities holding companies by the Holding Company Act of 1935. Subjects of the White House cone ference were expected to include: 1. The general business recession, its causes and methods of combat« ing it. 2. Proposals for some form of Government-business co-operation to achieve greater stabilization of production, eliminating sharp prose perity peaks and deep depression lows. 3. Price problems, their effect upon industry, business in general and relations to wages and purchase ing power. In this connection ree ports have circulated of the possie bility of a reduction of steel prices, possibly linked with some adjuste ment of wages. 4. The holding company question and related antitrust questions. In connection with the steel rumors, it was noted that Mr. Lewis and Mr. Murray have been cone ferring privately in New York with Thomas Moses, U. S. Steel Corp. vice president. The nature of these discussions has been guarded.

May Bring Proposal

Today's conference, however, brings together Mr. Lewis and Mr, Murray and Mr. Lamont, a principal Morgan spokesman. The Morgan firm serves as bankers for U, S, Steel and Morgan partners are closely concerned with the huge ine dustrial enterprise. Mr. Young is also intimately associated with Mr, Lamont, There was a possibility that the group of White House visitors has developed some business or ecoe nomic plan for submission to Mr, Roosevelt. The President declared at his press conference that there were several methods of achieving the elimination of holding companies in all lines of business but declined to state at this time what avenue of approach he would use. He indie cated this decision is still in the formative stage.

TIMES FEATURES ON INSIDE PAGES

seve 37 Movies civiea Broun ....... 24 Mrs. Ferguson Clapper 24 | Music Comies ....32, 33 | Obituaries ... Crossword ... 31 Pyle ..... vane Curious World 33| Questions ... Editorials ... 24 Radio Fashions .... 19| Mrs. Roosevelt Financial .... 26 Scherrer Flynn ....... 24) Serial Story.s Forum « 24 Short Story.. Grin, Bear It. 32] Society ....18, In Indpls..... 3| Sports ....28,

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Jane Jordan.. 23| State

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