Indianapolis Times, Indianapolis, Marion County, 18 May 1938 — Page 1

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FORECAST: Mostly cloudy tonight and tomorrow; probably showers and thunderstorms; not much change in temperature,

Smpes “HowARPE VOLUME 50—NUMBER 58

LEWIS’ CANDIDATE CONCEDES DEFEAT IN PENNSYLVANIA

Earle Holds Strong | Lead in Senate Contest.

PINCHOT IS LOSER

G. O. P. Losers Unite With Victors for Fall Drive.

(Editorial, Page 10)

PHILADELPHIA, May 18 (U. P). —John I, Lewis’ bid for political power in Pennsylvania failed today despite last-minute primary coalition of the Roosevelt New Deal and

his C. I. O. Lieut. Gov. Thomas A. Kennedy, secretary-treasurer of the United Mine Workers of America, who was indorsed bv National Democratic Chairman James A. Farley, conceded the Democratic Gubernatorial nomination to Charles Alvin Jones, the regular organization candidate. Mr. Kennedy claimed a “moral victory” and his congratulatory telegram to Mr, Jones was not immediately followed by any pledge to support the Democratic ticket, “All things considered,” he said in a statement issued at his Hazleton home after wiring Mr. Jones, “the labor and liberal forces won a moral victory. I extend my thanks and appreciation to those who assisted us in our campaign and to the hundreds of thousands of Democrats who voted for us.”

State Chatman Victorious

Mr, Kennedy's acceptance of defeat and substantial leads by other Democratic organization candidates apparently meant a clean sweep for the primary ticket backed by State Democratic Chairman David L. Lawrence, Governor Earle had a practically impregnable lead over S. Davis Wilson, the C, I. O.-ticket candidate for U. S. Senatorial nomination. 6651 of 8076 precincts gave for Governor: Democrats: Thomas A. Kennedy, 428 508; Charles J. Margiotti, 168, 065, Charles Alvin Jones, 528,517. Republicans: Arthur H. James, 831.503; Frank P. B. Thompson, 1§,024; James Jones, 34,469; Gifford Pinchot, 383.369. 6939 of 8076 precincts gave for U. S. Senator: Democrats: Eddie McCoskey, 97,789: S. Davis Wilson, 278,597; George H. Earle, 677,584. Republicans: James J. Davis, 688,508: G. Mason Owlett, 406,667; Fdward L. Stokes, 44,439. While votes were being counted the State Supreme Court heard arguments whether an injunction blocking Grand Jury investigation of charges against high State officials should be made permanent. The court did not decide immediately. ' Hope for Smear

Republicans were hopeful that the investigation would proceed and smear both the State and National New Deal Administrations with revelations about how recovery and relief money is spent. Mr. Lewis’ political influence was expected to pale and Mr. Farley's prestige to tarnish somewhat under influence of Mr. Kennedy's defeat, Mr. Farley intervened in Pennsylvania politics the day before yesterday's primary with a compromise endorsement of Mr, Kennedy from one ticket and Mr. Earle from the opposition Democratic slate. But Gov. Earle repudiated his action and stood by his running mate, Mr. Jones. Likewise badly damaged by the primary backfire is the political position of Senator Joseph F. Guffey, Democrat, who joined with Mr. Lewis to bring Mr. Kennedy into the race. The election trend was comparatively conservative. Judge Arthur H. James, conservative, defeated Gifford Pinchot, oldtime progressive, for Republican gubernatorial nomination. But Mr. Pinchot's running mate, Senator James J. Davis, Republican, who sought renomination had a personal triumph and his nomination was conceded by G. Mason Owlett shortly before noon.

Pinchot to Support Foe

Mr. Pinchot announced that he would support the man who licked him. Mr. James shrilled his victory with a summons to Mr. Pinchot and his supporters to join in turning the New Deal tide next November. All was comparative sweetness and light among Republicans "as losers stepped up to bow themselves out of the show, Mr. Owlett’s concession, like Mr. Pinchot's, led to a pledge to support the party ticket. Thus the Republican battlers of the primary campaign alréady are drawing together against the common New Deal foe. “The Republican Party has selected a ticket for the November election which every citizen of Pennsylvania interested in good government can wholeheartedly support,” said Mr. Owlett. “All factionalism among Republicans should now be forgotten. I pledge my wholehearted support for the entire ticket as nominated.” By noon of the day after the primary there was no Democratic counterpart of this peace talk, Kennedy's weaknesses developed (Turn to Page Three)

TVote Is Construed As Serious Rebuff to C I. O. Chief.

———————

LABOR IS DIVIDED

‘Governor's Prestige

Now Reported at New Heights.

BY THOMAS IL. STOKES Times Special Writer WASHINGTON, May 18 John L. Lewis’ failure to seize concrete political power in the nation's leading industrial state, Pennsylvania, with its empire of steel and coal, appears to demonstrate that labor is not vet ready to go its own politically. It was a high adventure, for a great stake, which culminated in defeat of Mr. Lewis’ candidate for Governor, Thomas Kennedy, in yesterday's primary. Achieved, it would have meant that the C. I. O. chieftain was on his way to become a really formidable factor in national polities. Pennsylvania has 72 votes in the Democratic National Convention of 1940, and 36 electoral votes in the election. And it speaks in Congress through 34 House members and two Senators. Like most elections, the Pennsylvania primary was a much mixedup affair which will be interpreted and run over, like a horse race, for days to come, Labor was split along C. 1. O. and A. F. of L. lines; Democrats were divided into two camps in a fight for control of the State organization, and they threw mud as only Democrats can, National Chairman Jim Farley stuck his neck out at the 11th hour and got it whacked, Republican conservatives and progressives battled at each other.

Lewis Rebuffed

But the outstanding factor as far as the national political picture is concerned, was John L. Lewis’ rebufl, The Pennsylvania result seems to prove conclusively that labor, of itself, is not yet ready to bite off as big a chunk as a state until it heals the “schism within its own ranks—if then; and that, politically, its best course would seem to be to tag along with an established political party, as both C. I. O. and A. F. of L. did with Roosevelt's New Dealers in 1936. Tom Kennedy, when he got into the race, said that labor didn't owe the Democrats anything, but that the Democrats owed labor something. So he struck out on his own, with the blessing of John L. Lewis, and the result is apparent. Down with the Wilson-Kennedy ticket defeat went the pretensions of Senator Joe Guffev as a second Boies Penrose. His vaunted political machine, staking its fortunes on the C. I. O. setup, did not show up well. Up rose the prestige of Governor Earle, easily nominated as Democratic candidate for Senator, with a political machine forged during this contest by State Democratic Chairman David L. Lawrence and Matthew H. McCloskey Jr. the Philadelphia contractor and Democratic leader. Their state machine proved powerful and now holds the whip hand. Governor Earle is one of the 1940 Democratic hopefuls and he has overcome an initial handicap. Mr. Farley's prestige takes =a bump, but his record for sticking by his political henchmen—in this case Joe Guffey, who helped so much to carry Pennsylvania for Mr. Roosevelt last year—stands unmarred.

SHOWERS TO CONTINUE

NR URES 61 10 a. m.. 62 11 a. m.. 62 12 (Noon) . 63 1pm...

Today and tomorrow will be damp days for Indianapolis, the Weather Bureau said. The forecast was for mostly cloudy weather tonight and tomorrow with showers and thunderstorms probable.

Winners

Governor Earle

STATE HIGHWAY ENGINEER QUITS

SUCCesSor Not Named Yet; New Test Laboratory Head Appointed.

Sultan G. Cohen, the Indiana Highway Commission's chief engineer of construction, has resigned effective June 1 to re-enter private business, Chairman T. A. Dicus, announced today. Mr. Dicus also said that F. PF. Havey, Parke County, has been promoted from assistant to head the Commission's testing laboratory. Mr. Havey joined the Commission in May, 1934. He jis to succeed Earl Feldman, South Bend, who has been named head of the State Highway Planning Survey, succeeding Walter Sapp, Bloomfield, who also is resigning. Mr. Sapp has been with the Commission since June, 1924. Adding that no successor to fill Mr. Cohen's position has been named, Mr. Dicus said: “It is particularly important that we have the right man to replace Mr, Cohen since we are entering a heavy construction period. Mr, Cohen has been a good and efTicient employee. I intend to consider the matter of his replacement from every angle.” Mr, Dicuss explained personal changes should not be considered as a ‘general shakeup” because they were the result of “resignations, logical promotions and transfers.”

MODEL ENDS LIFE AFTER LOVERS’ FIGHT

CHICAGO, May 18 (U. P).— Gretchen Bowers, 23, a beautiful artists’ model, telephoned a& man last night and talked about the rainy weather. Then she put on her most expensive gown, painted her lips, and shot herself to death. A four-page note to the man was found on her dressing table. It said that he had ended their love. He was identified in the note only as “Stony.”

Modern 15-Story State Office Building Planned

Tentative plans for the new State office building to be constructed if PWA funds are received call for a 15 or 16-story modern structure to cost three million dollars, State Budget Director Edward Brennan said

today.

This building is one of 11 projects which State officials have filed

with Federal authorities.

Total cost of the entire program would be

approximately $8,250,000, of which®

the PWA would be asked to furnish 45 per cent. Governor Townsend explained the other fund requests were chiefly for construction of a new tuberculosis hospital in southern Indiana and providing additions to existing benevolent institutions. In emphasizing the tentative nature of the program, State officials said they did not know whether Congress would earmark additional funds to the PWA, Estimated cost of the other projects are: Muscatatuck Colony for Feeble Minded, Butlerville, $2.300,000; Central State Hospital, Indian-

| apolis, $500,000; State Fairgrounds,

$500,000; Women's $250,000; new

Indianapolis, Prison, Indianapolis, tuberculosis hospital (location undecided), $500,000; Girls’ School, Clermont, $150,000; Boys’ School, Plainfield, $350,000; Madison State Hospital, $200,000; Evansville State Hospital, $150,000, and Logansport State Hospital, $400,000. Location of the proposed State office building has not been decided definitely, but Mr, Brennan said it probably would be built on the site of the present State House annex at Senate Ave. and Market St. If constructed, offices in the Annex and those now located at 141 S. Meridian St., would be combined.

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WEDNESDAY, MAY

MAYOR RIVALS HEAR MANAGER PLAN LAUDED

Cincinnati Plan Has Proved Itself, Seasongood Tells Women Voters.

‘BEST FORM,” HE SAYS

Mrs. Merrell Nominated for Presidency of State Organization.

(Photos, Page Six)

By VIRGINIA M. MANNON

Reginald H. Sullivan and Herman C. Wolff, rival Indianapolis mayor-

alty candidates, today heard Murray Seasongood term Cincinnati's city manager government the “best form” of municipal government at the 17th state convention of the League of Women Voters. The mayoralty nominees were honor guests at a League luncheon at the Indianapolis Athletic Club which followed the opening of the convention, More than 200 delegates from 20 local leagues were registered. Mr. Seasongood, president of the Hamilton County (0.0 Good Government League and first Mayor of Cincinnati, from 1926 to 1930, under the Charter administration, spoke on “Modern Local Government,”

Cities Lessons to Be Learned

He cited the example of Cincinnati’s city manager plan as a “potent cause of Governmental regeneration in many other municipalities and counties of the country.” He enumerated the lessons to be learned by cities “desirous of emulating Cincinnati's record of achievement,” Discussion of the manager plan for city and county government and the merit system in selection of public officials were on the agenda for discusiso nthis afternoon. Mr. Seasongood declared that the council-manager government has proved its worth over a 12-year period. Lauds Merit System

“Perhaps most important of all,” he said, “a genuine merit system prevails with more than 95 per cent of the city employees operating under it, Campaign assessments and political activity of all persons in the administrative service are effectually banned. “There has been absolutely no politics in connection with the administration of relief. During the depression Cincinnati was about the only solvent city in Ohio and essential services were not curtailed. “The flood in 1937, by far the worst in the city's history, and a disastrous conflagration resulting therédfrom were met without recouse to martial law and with no resulting epidemic largely because the morale of the police, fire, health and other municipal departments had been built up to a high degree of efficiency, because proper equipment was available and because the disaster was faced by city officials with coolness and intelligence and by citizens with confidence in the authorities.” “Home rule is essential,” he said in discussing the means by which other cities ‘could follow the Cincinnati example. “Without home rule written in the constitution of Ohio, Cincinnati could not have adopted the charter under which it is operated.

Urges Hopeful Attitude

“Next, there must be in a community desirous of improving its political conditions an attitude of hopefulness and a refusal of despair. Tt is true that the ordinary citizen has his peculiar problems of livelihood and enjoyment and is not easily aroused to see that both are endangered by low political administration of the affairs of the community. Hence, it seems as though local administration must be very bad before it can be improved through the citizen's undertaking what should be his most important duty, the good government of the community. “The form of government is of importance. I consider the CouncilManager form best. It is possible to (Turn to Page Six)

COMPANY TO MOVE LOCK PLANT HERE

Seventy Local Workers Will Receive Employment.

The Best Universal Lock Co., Inc., is to move its plant for the manufacture of patented locks and lock hardware to Indianapolis by June 1, Myron E. Green, Indianapolis Chamber of Commerce industrial commissioner, announced today. Mr, Green said the company has leased 20,000 square feet of floor space in the Cole Motor Car Co. building, 730 E. Washington St. Thirty employees and their families will be brought here from Seattle, present location of the plant. Seventy other workers will be hired here, Mr. Green said. The reason for the move, it was announced, is that 75 per cent of the firm's sales now are made east of the Mississippi River. “After a thorough study of the East and Midwest, we picked Indianapolis as the one city where manufacturing conditions permit us to operate at peak efficiency. Geographically, of course, we will be better able to distribute our products.”

FN

18, 1938

Chicago Baby Now May Lose Her Right Eye

CHICAGO, May 18 (U. P)Baby Helaine Judith Colan, whose cancerous left eye was removed last

week, also may lose her right eye)

an attorney for the family indicated today as a life-or-death medical jury of 19 was summoned to decide what is to be done, Attorney Samuel A. Hoffman, official spokesman for the parents of the seven-week-old baby, said that in his opinion the eye must be removed, He based the opinion, he said, on a report that one-third of the right eye “still has cancerous fibres.” “I have already told the mother 80,” Mr,. Hoffman asserted, “and if the medical experts decide to operate, the operation probably will be performed tomorrow.”

PROBERS READY FOR TVA DATA

NATIONAL AFFAIRS

TVA PROBERS vote to summon ex-Chairman Morgan and TVA directors.

PUBLIC SALARY tax bill te be introduced by Rep Boehne,

SENATORS open fight on rail pay reduction, FIGHT BREWS on linking of farm aid te recovery bill,

F. D. R. EXPECTED to sign tax bill under protest, GLENN FRANK criticizes Senator Minton in 1 radio talk,

Morgan and Directors To Face TVA Probers

WASHINGTON, May 18 (U, P).— A joint Senate and House Commit-_ tee investigating the Tennessee Valley Authority voted today to call the TVA directors and former Chairman Arthur E. Morgan to hear their charges and countercharges immediately, The committee agreed that Dr, Morgan, who arrived here last night, would be the first witness. The motion was carried by a voice vote without vocal opposition. It was submitted by Rep. James A. Mead (D., N, Y.), committee vice chairman After hearing a telegram from Chairman Harcourt A. Morgan of TVA, denying Dr, Morgan access to TVA records in preparing his case, the committee adopted a motion giving the former chief of the authority permission to examine the records under supervision. The motion was presented by Senator Schwartz (D. Wyo.). The vote abruptly ended a controversy within the committee over whether to open the hearing here immediately or to defer it. One committee faction had insisted that preliminary work should be done in the TVA area at Knoxville, Tenn, before the principals in the controversy were summonded before the inquiry group. Rep. Mead accepted an amendment to his motion, offered by Rep. Thomas Jenkins (R. O.) specifying that the directors might make their, statements orally or in writing, and that the full statements would be heard without interruption before they are subjected to questioning. Rep. Mead’'s motion directs Chairman Vic Donahey (D. O.) to “invite the directors to appear before the committee at the earliest possible date and make a full presentation of their views, all the facts, and all the information involved in the charges and counter charges.”

Boehne to Offer Biii Taxing Public Salaries

Times Special WASHINGTON, May 18. Rep. John W. Boehne of Evansville, Indiana member of the House Ways and Means Committee, will introduce a bill to tex public officials salaries like those of other citizens and to remove the tax exemption from Government securities, he announced today. Such action was recommended by President Roosevelt in a message to Congress several weeks ago. Mr. Boehne said he does not ex(Turn to Page Three)

ASK HOOSIERS’ AID IN FARM BILL FIGHT

CAMDEN, Mich., May 18 (U. P.). —A committee of farmers from seven Michigan counties bordering on the Ohio and Indiana state lines, headed by F. W. Rowe, former state legislator, today petitioned their Ohio and Indiana neighbors for support, in a drive to repeal the Agricultural Adjustment Administration's crop control statutes, Senator Vandenberg (R. Mich.) has said he will present the farmers’ objections on the Senate floor, according to leaders af the protest move. The farmers charge the crop control legislation endangers livestock and poultry industries, their principal sources of income.

TIMES FEATURES - ON INSIDE PAGES

Mrs. Ferguson 10 0 RN | Obituaries ,..11 Pegler .......10 Pyle Questions Radio Mrs. Roosevelt 9 Scherrer Serial Story... Society ...... 6. 7 Sports ....12, 13 State Deaths. .11

Wiggam seven dl

BOOKS ...e0vee Broun .. Circling City.. Comics 1 Crossword ... Editorials ... Financial .

In Indpls ..... Jane Jordan.. Johnson ...... Movies Seren 14

Second Class

Entered » ce, Indianapolis,

at Posto

PLANE FOUND BURNED, NINE ABOARD DEAD

Rancher’s Discovery Ends 40-Hour Search for Missing Airliner.

——————

CRASHED INTO MOUNTAIN

Three Men, Four Women And Two Babies Victims Of Disaster.

SAUGUS, Cal, May 18 (U, P.) — A missing $80,000 Lockheed airliner, with all of its nine passengers dead and their bodies burned, today was found crumpled against the slopes

of Stone Mountain, in Mint Canyon, 20 miles north of here, None of the passengers—three men, four women, and two babies escaped, Stone Mountain, near Mt, MeDill is in the jagged Sierra Pelona Range, 20 miles north of here, The wreckage was visible from a main highway a mile and a half away, The body of Pilot Sidney Willey was at the controls, One other passenger was in the plane, The others had been thrown from the wreckage, Shrouded in fog since Monday afternoon, the wreckage was not sighted until this morning, although hundreds of motorists and searchers had passed by on the highway a short distance away. The plane, en route to St. Paul, Minn, via Las Vegas, Nev, had been missing 40 hours. It encountered fog and rain-laden clouds in

Terossing the mountains to the Mo-

jave desert. It struck a high “hog's back” of the Pelona range at an altitude of 3300 feet, burst into flames, then bounced and crashed 500 yards away, Pieces of burnt wreckage from the first point of impact indicated the ship caught fire with the first crash.

Deputies Remove Bodies

Deputy sheriffs from the Newhall sub-station reached the scene quickly and started removing the bodies, The dead: Pilot Willey, 32, Burbank. Fred: Whittemore, 42, St. Paul, vice president of Northwest Airlines and co-pilot on the iflight. Henry W. Salisbury, 29, St. Paul, engineer for Northwest Airlines, Mrs. Henry W. Salisbury, 25. Judith Salisbury, 2'4 months, their daughter, Richard Salisbury, 3, their son. Mrs. Carl Squier, 34, North Hollywood, wife of a Lockheed vice president, Lolla Totty, 26, Glendale, a Lockheed secretary, Walter Petersen, a Spade Canyon rancher, discovered the wreckage and communicated with Ben Wagner, fire dispatcher, who telephoned the Sheriff's office. Ground search parties proceeded to the spot. They found only the charred wreckage and bodies,

Woman Hears Crash

Petersen said he came upon the craft at 5:30 a. m., almost 40 hours after it took off from Union Air Terminal at Burbank. A woman who heard the crash was said to have directed the rancher to the base of Mt, McDill, a 5180foot peak at the northern bend of thie Sierra Pelona. Louis Wulekuhler, directing the search from Union Air Terminal, instructed all ground and air search groups to concentrate on that area. A pea-soup fog and moonless night, however, forced postponement of the hunt until dawn today.

REOPEN ANTITRUST QUIZ OF AUTO FIRMS WASHINGTON, May 18 (U, P.).—-Attorney-General Homer S. Cummings announced today the Federal Government will reopen its antitrust case against three major automobile manufacturing companies and their

finance company affiliates before a Federal Grand Jury at South Bend.

Matter Ind.

HOME

FINAL

PRICE THREE CENTS

$1,270,000 PLAN FOR WATER (0. WORK IS FILED

Company Petitions Public Service Commission for O. K. on Fall Creek Treatment Unit, New Blue Ridge Elevated Tank.

PROGRAM WOULD

EMPLOY 500 MEN

Two Years Required; Action Follows Agreement Delaying Litigation in Indianapolis Firm's 7-Year-Old Rate Case.

Permission to launch a program, costing about $1,2

70,000,

mn —

two-year plant improvement was requested by the

Indianapolis Water Co, today in a petition filed with the Indiana Public Service Commission, Company engineers estimated ahout 500 men would be given employment before the construction program is completed, Most of the work is to be let to contractors who are to to employ both the skilled and unskilled labor, it was ex-

SUCHOW CENTER OF HEAVY FIRING

FOREIGN SITUATION

SHANGHAI-—Japanese hammer Suchow as Chinese prolong fight. WASHINGTON — Britain, France and Russia decide Japs must not win, VALENCIA—Three rebel armies intensify drive on city, PRAHA-Conference sought hetween Premier Hodza and Konrad Henlein, MEXICO CITY—Gen., Saturnino Cedillo retired. Cardenas moves for “tranquillity.”

LONDON-Cabinet discusses air program, TOKYO — Japanese offensive against Hankow forecast.

SHANGHAI, Mav 18 (U, One of the fiercest battles of the Chinese war raged around the walls of Suchow today after Japanese troops attacked the outer defenses of the city under a terrific artillery barrage, dispatches from the front reported, Japanese reports indicated that a majority of the Chinese troops caught within the Japanese encircling movement were concentrating at Suchow. Cannon, machine guns and rifle fire had continued for 48 hours. Planes bomber and stafed all fronts around Suchow. The Japanese apparently were making a desperate attempt to take Suchow before additional Chinese troops arrived,

Chinese Prolong Battle

The Chinese were entering Suchow from the Pihsien and Taierhchwang sector. They apparently planned to prolong the battle in or. der to increase Japanese casualties and give the main body of Chinese troops time to reorganize the lines west of Kweiteh, The Japanese occasionally lifted their artillery barrage to permit the infantry to advance and close with the Chinese defenders in hand-to-hand fighting with bayonets and big swords immediately west of Suchow. The defenders rained grenades on the Japanese troops as they approached in successive waves, In the midst of exploding shells and bombs Japanese planes dropped

thousands of leafleis calling for sur- |

render and guaranteeing “kind treatment.” The. importance with which the battle was regarded, an implicit admission that in its climactic stages it might mark a turn in the war, was shown when it was disclosed

(Turn to Page Three)

‘One-Round Landon’ and

Townsend

Times Special

Share Barbs

LEBANON, May 18.—Former Governor Alf M. Landon, 1936 Republican Presidential nominee, was en route to Boston today after sharing the limelight with Governor Townsend at the 14th annual Ulen Country Club Governor's Day beefsteak dinner here last night. All speeches were “off the record.”

It was all fun and both Governor®

Townsend and Mr. Landon took their share of barbs in the “wisecracks” that passed back and forth over the dinner table, Mr. Landon was introduced as “One-Round Landon” and was described as a “modern Burbank” because he made sunflowers grow in Vermont and Maine,

Al Wynkoop, humorist, presided as toastmaster, Other speakers were Lieut. Gov. Henry F. Schricker, former U, S. Senator James E., Watson, Rabbi Jacob Tarshish of Columbus, and C. Walter McCarty, managing editor of the Indianapolis News, and Henry Ulen, the host, Mr. Landon was accompanied here by Ewing Emison, Vincennes leader of the dominant faction within the State Republican Committee and regional director for the Republican National Committee in 1936, and Ward Wheeler, former member of the State Highway Commission, The reception committee included Arch N. Bobbitt, State Republican B

a

chairman, John KX. Ruckelhaus, William L. Hutchison and Albert J. Beveridge Jr. The long list of guests included Frank McHale, Democratic National Committeeman from Indiana; Dick Heller, Governor Townsend's executive secretary; Adjt. Gen, Elmer F. Straub; Clarence Jackson, gross income tax division director; Mayor Boetcher of Indianapolis; U. S. District Attorney Val Nolan; State Safety Director Donald F. Stiver; Pleas E. Greenlee, Bituminous Coal Commission member; Secretary of State August G. Mueller; Wray Fleming, U. 8S. Customs Collector; Peter De Paolo, auto race driver, and Chic Evans, golf star. The diners, numbering 528, were guests of Mr. Ulen, Lebanon business and civic leader. Because of the size of the crowd, the dinner was staged in a tent outside the clubhouse, Eugene Pulliam Sr, one of the chief planners of the affair, was recovering from an operation and the program was brought to his home through an amplifier,

P)-—-

~#plained,

In announcing this project, the company officials are abiding by terms of an agreement approved by Federal Judge Robert CC, Baltzell which delayed further litigation in the company’s 7-year-old rate case against the Public Service Commis«

sion, The new program calls for: 1. Construction of an additional water treatment plant at the come pany's Fall Creek station, Keystone Ave. and Allisonville Road, on land already owned by the utility, 2. Erection of an elevated tank to maintain a more adequate pressure in the Blue Ridge neighborhood.

Improvements Considered

Now under consideration, the come pany's petition stated, are a series of improvements at the utility's present water treatment plant north of 16th St, Plans for these improvements ure to be submitted to the Public Serve ice Commission later, officials said, Water from White River reaches this plant through the canal, According to the petition, cone struction of the Fall Creek waler treatment plant will mark the first step in the company's plan for building a dam and impounding reservoir on Fall Creek near Oake landon, Nearly all the land .ee quired for the dam and reservoir now is owned by the company. It is estimated that about 16,000. 000 gallons per day of filtered water will be added to the city's available supply by construction of the treate ment plant, This structure is to be equipped with new type filter units, basins, pumps and accessories, if Commise sion approval is given to the project,

To Permit Enlargement

Officials also said they expected to show that the new plant will be built in a manner which will permit enlargement if necessary in the future, Solution of the problem of maine

taining steadier water pressures in the Blue Ridge neighborhood “is the construction of the elevated storage tank,” the petition stated. The rate case delay was agreed to by Judge Baltzell on March 10, after company attorneys said the utility could not proceed with an | improvement program during litie gation, In signing the stipulation Judge Baltzell said: “If there is, in the opinion of the court, an unreasonable delay in bringing of the cause on for further proceedings, the court reserves the right to order the case heard.” Others signing the stipulation were Joseph J. Daniels, Water Cori« pany counsel; Atty. Gen, Omer Stokes Jackson; Urban Stover, Deputy Attorney General, and Publis Counsellor Ralph Hanna. In a written statement Mr. Dane iels said, in part: “Our construction program could hardly proceed at the same time with rate litigation, and should not longer be deferred. The company feels the need of giving its imme diate attention to enlarging its fae cilities for assuring water supply to the people at Indianapolis.”

History of Rate Case

The rate case began in when the Water Co. appealed to the Federal District Court here from the Public Service Commis« sion's order setting a new valuation of approximately $22,500,000 and lower rates. The company cone tended these rates were confisca« tory. Judge Baltzell, three years later, set a valuation and ordered rates on the basis of a 6 per cent return, Modification made by Judge Balt zell on the valuation fixed by Albert Ward, special master in chancery, placed the value of the company’s property at $21,392,821. The utility appealed in 1935 to the Circuit Court of Appeals, which reversed Judge Baltzell's decision and said rising prices since 1933 would give the company a retum of less than 6 per cent.

1932

through Sengal s

Court, Dt or x ea reversal and ordered the case ree tried before Judge Baltzell,