Indianapolis Times, Indianapolis, Marion County, 17 December 1938 — Page 1

*. or more and people are

_ Years.”

‘crowded that it was difficult to walk.

said.

|west, he said.

[to sidewalk duty for three purposes.

-—Prosecutor C. Byron Hayes and

\

x

The India

"

napo

lis

FORECAST: Fair tonight and tomorrow; colder tonight with lowest tompersinte about 20; rising i tomorrow,

VOLUME 50—NUMBER 241

YULE BUYERS RUSH STORES, JAM STREETS

Police Term It a Record Crowd, Go on Extra Duty.

MERCHANTS OPTIMISTIC

10 Extra ‘Traffic Directors Are Stationed in - Busiest Area.

(Joe Collier Feature, Page Three)

* What police described as a record crowd shopped today in ‘downtown stores for Christmas gifts. Attended by special details of police who watched ‘sharply for sneak thieves and were prepared to answer shoppers’ questions, the crowd came early and stayed late. The street car company estimated traffic was heavier than the comparable day last year, and that it was much heavier yesterday . than

the comparable day last year. By noon the sidewalks were so

Stores’ aisles were filled. Street cars froni some sections had standing room only.

Temperatures Snappy

Temperatures were snappy with winter and the light snow in the residential sections seemed to add fillip to the day. The Weather Bureau predicted fair weather and lower temperatures for tonight with rising temperatures tomorrow.

TEMPERATURES 34 10a m... 32 11 a.m... 3) 12 (Noon). 25

a. m 24 a. m 26 a. m... 27 la. m

(Ql of some of the large owntown stores were unanimous in stating that this holiday shopping season had been “excellent” and that today was the greatest shopping day” in two or three

The ‘entire season, they said, had been better than was anticipated. Stores have been full for two weeks buying more heavily, they said. } The second Saturday before Christmas is always the heaviest in volume of business, they said, It has been for years. But this Saturday was heavier than last year, they

“The weather, if anything, stimulated business today,” one official said. “It lent about the right touch to the season—if only there had been just a little snow downtown.” . ? Another store official declared: Lights Turned Off “1 might almost say that this store believes a five-year record was set.” Capt. Lewis Johnson of the Police Traffic Department made special preparations to “move the traffic more smoothly but not faster.” Ten extra traffic directors were assigned to downtown corners and stréets and the traffic lights are being turned off during the rush hours. Patrolmen directed the traffic with one whistle blast for north and south and two blasts for east nnd

In addition, men were stationed between corners. !

About 15 patrolmen were assigned

They supplemented the work of about 25 plainclothesmen in watching for sneak thieves and pickpo~kets. They helped direct pedestrian traffic and they answered questions so that people did not have to walk into middle of the street to consult traffic policemen. Capt. Johnson said that there were six extra motorcycle units in e downtown area and that “double parking was not tolerated.”

GRAND JURY CALL “EXPECTED IN SLAYING

FT. WAYNE, Ind. Dec. 17 (U. P.).

police are expected to confer today about possible Grand Jury action on the slaying of 3-year-old Alfred Junior Reaser. The baby was slashed to death by his mother, Mrs. Ruth Reaser, 39, here yesterday.

Shopping Days Till Christmas

TTT WANT MY — 1 MONEYY

ERICA WAS = Wirth INDIGNATION, FRANCE HAD JUST ' DEFAULTED ON. WAR DEBT eo0e0

OOKING Back to Christmas Six Years Ago—Drys were fighting bill to legalize 32. , . . Everyone arguing technocracy. . . . America was bursting with indignation; French had just defaulted on war debt. . . . Airplanes were beginning to ride radio beams. . . . Adding to Yule cheer in depression year, statistics showed fewer people were dying than in any year since 1880. . . . Germany

ute or two.

down at the factory.

While you were out looking skimped on lunches. so the kids wouldn't suffer.

too.

almost unbelievable economies.

# o 2

Mary’s dresses, purchased for were doing winter duty.

skip Sunday School. but you knew what it was.

PROWLER SLAIN BY POLIGEMAN

Trolley Operator Robbed of $10; Two Burglaries Are Reported Overnight.

An unidentified Negro was shot to death early today:by a merchant policeman as he fled after allegedly trying to burglarize the Standard grocery at 1419 E. 25th St. The special policeman, Jaines Hardester, 49, 25082 Martindale Ave., is employed by merchants in the Vicinity. He told Detectives Jesse McCarty and Thomas Aulls, who investigated, that as he was patrolling his district about 2:30 a. m., he heard a noise in the vicinity of the grocery, about ‘a block from Where he was walking.

saw a man standing behind the counter. Hardester said the man rushed out the door, which had been jimmied, and struck him on the cheek.

Killed Instantly

Hardester said that when the alleged burglar ignored a command to halt, he fired once, missing, and then fired again. The second bullet struck the fleeing suspect in the back of the head, killing him almost instantly. The victim was taken to the City Morgue. . Police said the victim was not armed. The special policeman was not in uniform, police said. Police | investigated the activities of a man held on a vagrancy charge after he was said to have confessed to. the theft and pawning of two diamond rings valued at $300 Two men held up and robbed a trackless trolley operator at E. Riverside Drive and 30th St. of $10. The victim, Chester Davis, 33, 1043 S. Pershing Ave. told police both men escaped south on Pershing Ave.

WHITE RIVER WPA PROJECT APPROVED

$5,025,503 Flood Control Work Consolidated.

Times Special ' WASHINGTON, Dec. 17 ~—President Roosevelt has aproved a $5,025,503 White River flood control project

the | for the Works Progress Administtation Senator Sherman Minton was

informed today.

Carl Kortepeter, N Marion County WPA administrator, said the project for White River flood control approved today by President Roosevelt was a consolidation of -several projects now under construction. He said the new project was drawn up to include all others on the general flood control work to conform with new regulations of the WPA.

broke rail §peed Tecord with streamlined train, 4

eved the thing would fly. The onlookers grinned

ET’S just reverse the situation for a minYou're a skilled workman. But somehow and for some reason your health hasn’t been so good the last few years. . year it hit’ you harder than ever. down for weeks. Somebody else got your job

It worried you, but you kept your chin up. That little nest egg you worked so hard to put in the bank dwindled with terrifying swiftness.

You went without any— But nevertheless, with all your trying and hoping, Christmas turned up and there were no presents for the children. They were a little bewildered and you knew they were hurt, although they were brave,

You ‘told yourself that this year would be. different. You were a good man. You wanted to work. There was always a place for a good man. And you just couldn’t give up, what with . the wife backing you to the limit and making

acle how she kept the house going. You never knew what a dime really meant before.

UT worst of all it did things to you inside ° when you saw little Johnny’s clothes going.

And there were no words to describe what was going on inside you when Johnny and Mary decided they wanted to They tried to gloss it over, Their clothes looked

Hurrying to the’store, he said, he|

Last You were

so shabby. They couldn’t tell you. couldn’; keep it from you either. It wasn’t yourself you cared so much about. You could get along. But you had two kids— two kids still in school—fine little people. They needed the break. You knew you'd get a job sooner or later. You're still looking. Another Christmas is almost here. And you don’t know it, but the wife

SATURDAY DI DECEMBER 17, 1938

Just Suppose YOU Didn’ t Have a Job; Then Youd Know What It’s All About

(Donors’ List, Page Three)

But they

has written a letter to Clothe-A-Child.

for a job you again,

Maryland St.

It was a mir- rority. Select

many children

” »

2 3 LOTHE-A-CHILD is conducted by The Indianapolis Times each Christmas season for children just like that. Just reverse the picture

;, who have a job and means, may want to help. Here are the ways: 1. If you wish to shop with a child personally, call R{-5551 and make an appointment to meet a child at Clothe-A-Child headquarters, 206 W.

2. If you want The Times to act for you, mail a check to “Clothe-A-Child, The Indianapolis Times.” Experienced shoppers will do the rest. 3. Or you can join with others in your office, plant, club, church, sports team, fraternity or so-

a committee, let. us know how you desire to clothe.

The Social Service Department of the Public

Schools checks the list to determine the neediest .

summer wear, $8 to $12.

Child.”

On Your Way

Guard Goes on Spree, Prisoner Is Free, Fails to Flee.

ACKSON, Mich, Dec. 17 (U. P.). — Southern Michigan Prison officials hurried today .to St. Louis, Mo., and Clinton, IIL, to pick up an erring prison guard with a hangover and th¢ prisoner he 16st while changing trains.

The guard who could not resist the lure of St. Louis night life is Sergt. John W. Malaney. St. Louis police informed Werden Joel Moore of the Michigin prison that Mr. Malaney had staggered into a police station andl with an apologetic hiccough announced he was a prison guard who had lost not only his prisoner but also his baggage, his revolver, his leg irons and his money.’ The prisoner, -Mr..Malaney sug= gested, ‘might have caught the train according to schedule. Having volunteered this ir.formation, Mr. Malaney curled ip in the corner and went to sleep. In a phone cail to Warden Moore, St. Louis officers asked advice. Mr. Moore ordered them to hold Mr. Malaney and call police at Clinton, Ill, to stop the train en route to Jackson. At Clinton the sheriff boarded the train and sure enough there was the prisoner, with leg irons attached and Mr. Malaney’s re-| volver in his pocket.

2 2

HE prisoner, W. R. Armstrong, a parole violator, said it was an awful bother carrying Mr. Malaney’s suitcase as well as his own but he was determined to complete the trip to Jackson even if his companion did desert him. Being lonesome, however, Armstrong agreed to wait in the Clinton jail until a new prison escort arrived, Warden Moore was especially anxious that Armstrong should arrive safely at Southern Michigan’ Prison because of his record at the McAlester, Okla., penitentiary. While in the Oklahoma prison, he founded a successful school system, wrote a textbook, and so endeared himself to the hearts of

2

penitentiary officials that upon his |

release they persuaded Michigan officers not to exercise their claim on him for parole violation. Shortly after Oklahoma gave Armstrong his freedom, however, he was arrested at Kreba, OKla., for passing a worthless check. Then Oklahoma authorities announced that Southern Michigafi Prison could have him, and Sergt. Malaney was delegated to bring him in, with the ai orementioned results.

WPA MAY GET 600 MILLION

WASHINGTON, Dec. 17 (U. P.).—|,

Senate Majority Leader Barkley (D. Ky.) predicted today that a $600,000,000 deficiency @ appropriation would carry the relief load between March 1. and June 30, 193%-—-the

end of tie fiscal year.

‘the future.

children and to eliminate the possible duplication of clothing gifts. : ; The cost of outfitting a boy or girl depends on their individual needs.

The average is from

‘Clothe-A-Child headquarters is open from 9 a. m. until 6 p. Call RI-5551 now. Just ask for “Clothe-A-

ILIMA REFLECTS

m.

EUROPE’S FEARS

THE FOREIGN SITUATION

LIMA—U. S. drafts compromise on solidarity declaration. MEXICO CITY—Catholic worship to resume in Tabasco State. a ” ”n LONDON-—Chamberlain stiffens policy. toward dictators.

TUNIS—French claim maneuvers prove Tunisia impregnable. KAUNAS—{Lithuania offers Memel autonomy, refuses more. HENDAYE — Rebel warships bomb Southern Spanish coast. . PISTOIA—I{alian students halt “California” revue. BERLIN-—German trade deficit is 27 million. BUCHAREST—Boycott on ‘er-: man’ Christmas trees urged. ” 2.8

SAN FRANCISCO—Pickets halt loading of munitions.

By WILLIAM PHILLIP SIMMS ~ Times Foreign Editor LIMA, Peru, Dec. 17.—The ominous shadow of European developments more and more is falling darkly athwart the Lima conference influence and hastening its decisions. Threats of war, falling currencies, flight of capital and the growing menace of untoward events abroad underly all conversations here. Diplomats are seriously concerned over They are convinced that the totalitarian powers and democracies are racing. toward a showdown and that a conflict couldn’t fail to have tremendous bearing ‘on every nation in this hemisphere. Inevitably: all this is helping shape the course of the conference. Patently, if Britain and France suffered a Second Munich or went down in defeat on the battlefield, the only strong democracy left in the world would be the United States, which country would be the only power (Continued on Page Two) ————oor os ——— re e——

INDIANAPOLIS FOOD PRICES SHOW DROP

Average Decline for Nation Is .7 Per Cent. Times Special

WASHINGTON, Dec. 17.—The retail average cost of foods in Indi-

|anapolis fell 9 per cent from Sep-

tember to October, and 6.4 per cent from October, 1937, to October, 1938, the U. S. Department of Labor and the Bureau of Labor Statistics announced today. The average ‘decline for the entire country was .7 per cent from September to October and 7.9 per cent from October, 1937, to October, 1938. Continued declines in flour, bread and meat prices were held as cause

of the general drop.

The Wright brothers “contraption” of 35 years ago... ILL DEVIL HILL, N. C.,, Dec. 17 (U. P).— Thirty-five years ago today two young brothers, Wilbur and Orville Wright, pushed an . awkward-lookirg contraption down the beach hfe and solemnly told gaping onlookers ey.

ments later their grins vanisfled as the craft actually rose into the air and sailed along on its crude cloth wings, propelled by a gasping motor. That first flight, which almost ended in disaster when the airplane floundered to a bumpy landing a few seconds later, started a f in world" :

ANDREWS MAY ASK REVISIONS IN HOUR LAW

Exemption of High-Paid Earners Considered as Needed Change.

COMPLAINTS PILING UP

Time and One-Half for All Overtime Is Principal Puzzle of Statute.

(Another Story, Page 3)

By RAYMOND CLAPPER Times Special Writer

WASHINGTON, Dec. 17.—Elmer Andrews, the Wage and Hour Ad-

in considering possible revisions to get the “bugs” out of the WageHour Law. . Ordinarily that isn’t done here. The standard procedure is io stand pat, insist that the critics are wrong,

and take a beating. Possibly something has been learned from the Administration’s unhappy experience with the Wagner National Laber Relations Act. By a more openminded attitude toward complaints, the Administration could have saved itself much grief in connection with the Wagner Act. The basic purpose of that act has been widely accepted and is gaining the acquiescence of even the most reactionary employ-

ers. Yet, almost from the start, there has been widespread complaint about some of the details, complaints that have come not alone from employers but also from the American Federation of Labor. But the Administration and Senator Wagner have stubbornly refused to consent to any revisions and all criticism has been brusquely ignored. Had the Administration taken a more open-minded attitude, the measure would have been much more successful, and the rebuke at the polls last month would not have been so pointed.

Basic Purposes Upheld

Administrator P. Andrews is proceeding to protect his Wage and Hour Administration from such trouble. He is engaged in considering possible recommendations for revisions which will eliminate causes of irritation not essential to the reat purposes of this legislation. “Mr, Andrews has just returned from a trip across the country which he made primarily to find out in which respects the act was not working as well as might be. Little criticism of the basic purpose of the act seems to have been encountered. There is general acceptance now of the principle that the Government should protect bottom-bracket employees by fixing a minimum wage and a maXimum hour. Has No Ceiling

But everywhere Mr. Andrews went he was showered with complaint about the over-time section, which requires that time-and-hals be paid for more than 44 hours a week. That provision was put into the law to penalize employers who worked the help more than 44 hours a week. That provision has no ceiling—it applies to employees whether they receive 25 cents an hour or $2 an hour. A highly paid mechanic, far above the minimum wage line, is sent from his Schenectady, N. ¥., works to repair a turbine in Cleveland. He is gone 48 hours, and puts in actually one day at work. How much of that time is figured as chargeable? This is one of the questions that actually Las come up. They have no relation to maintaining minimum wages. Yet the wage-and-hour administration must wrestle with the questions for which no Government official can find a satisfactory answer. I suspect Andrews would like to get rid of that whole budget of controversy which contributes nothing to improving conditions. of the bottom-bracket employees, which is the main business of the act. Consideration is being given to the possibility of amending the act so that above a certain guaranteed monthly wage line—$200 or $400 or wherever congress wants to put it, the wage-hour act will have no application whatever.

ministrator, is taking the initiative | §

Entered as Secor d-Class at Postoffice, In

Exposed

Times-Acme Telephoto, George Vernard (top), Canadisp agent of McKesson & Robbins, Ine, and George Dietrich, assistant vice president and assistant treasurer, have been identified Arthur and George Musica, respectively, brothers of Philip F. Donald Coster) Musica.

NAB PUBLISHER INLOTTERY RAID

Clinton Newspaper Head Says Low Bond Shows Charge Isn’t Serious.

George L. Carey, Clinton, Ind. newspaper publisher, was under arrest today following a raid yesterday by State Police on his office in which police reported they found lottery tickets for the 500- mile race sweepstakes, Mr. Carey said the tickets were “just a small job order amounting to only $37.50 which we made no attempt to conceal and surely the charges couldn't be very . serious since I am bonded at only $100.” Don F. Stiver, State Police Superintendent, said the tickets” were evidence of a $1,000,000 scheme.” He said police seized 50,000 tickets “and we have saved people in Indiana $50,000 and no telling how much more.” The - tickets, he said, called ‘the lottery the “Memorial Day Grand Treasure—Sweepstakes, Indianapolis Motor Speedway.” Each bore the date May 31, 1939, and said there would be “6733 cash awards.” Mr. Carey said he looked upon the raid as retaliation for political differences he had had with county and city administrations.

Slot Machine Seized; Two Arrested

Two persons were under arrest today, after police confiscated two “bookie” loudspeakers and a slot machine in two raids on W. Lousiana St. . : Sergt. Carl Ashley of the Vice Squad said the squad brought into headquarters two loudspeakers, three “run-down” sheets, six racing forms and a-bundle of betting slips after raiding an alleged bookie shop. No "arrests were made at the “bookie.” The squad then went next door where, Sergt. Ashley said, he confiscated a five-cent slot machine. Elvis Snell, 28, of 1308 Bellefontaine St. was arrested on charges of

violating the 1935 Slot machine act.

fansponn ind.

FINAL HOME

| itn

PRICE THREE CENTS :

J

OTHERS

HINTED

IN DRUG FRAUD; SEC IS AROUSED

Stockholders May ‘Lose $20,000,000 in Swindle.

4 PROBES START |

Checks on Financial ‘Wizardry’ Are Proposed.

AGREE ON NEED

Commissioners Admit

M. & R. Case Shows Loopholes.

By THOMAS L. STOKES Times Special Writer HINGTON, Dec. 17—The McK & Robbins fraud case in New York, which reached a dramatic climax with the suicide of the corporation president, has provoked discussion within the Securities and Exchange Commission as to means of providing a closer check on

W.

' | such financial wizardry.

Ultimate development of a uniform accounting system for American business and industrial enterprises, which would have to be by categories, tightening up on private accounting outfits, even creation of a larger staff for Government -supervision of accounting, are ameng the measures being discussed informally within the commission. All of them offer difficulties and arouse objections on one score’ or another from one quarter | or another.

Exchange Moves Promptly | But there is a very definite con® viction within the SEC that some

further reforms may be necessary. This case represents also to the

- commission a shining example of

the failure of boards of directors, revealed from time to. time, to keep themselves informed of what goes on in corporations, a responsibility which Federal officials feel some corporate managements yet do not exercise adequately, considering the trust imposed upon them by stockholders. ; This, it is true, was the extraordinary case which comes slong every decade or so invelving an amazing figure who seems to be able to delude and magnetize his associates and gain their confidence. He was able also to cover up his operations in his reports to the SEC. Price, Waterhouse & Co., one of the best known accounting houses, certified the McKesson & Robbins reports to the SEC, which, in itself, naturally carried weight. Since the SEC moved into the case, officials have checked back on the reports and are unable to find anything which would have aroused suspicion {Continued on ] on Page Two Two)

GARNER AND F. D. R. - TO MEET IN PRIVATE

Vice President Arrives With, ‘No News.’

WASHINGTON, Dec. 17 (U.P) — Vice President Garner returned to the capital today for a conference with President Roosevelt preparatory to start of the 76th Congress on Jan. 3. Apparently in the best of health and in a jolly mood. Mr. Garner and his wife stepped from a train at Union Station into national po-, litical prominence after a sojourn of several months at his Home in Uvalde, Texas. Mr. Garner waved aside questions concerning national politics with the comment: “No news today.” This afternoorr, Mr. Roosevelt and Mr. Garner will confer privately on next year's plans. | Although Mr. Garner was not expected to change his previouis policy of not. discussing anything in public, the first conference of the year between the President and the Vice President will be watched closely for any hint of the attitude of the two leaders of the Democratic Party on Administration policies.

35 Years Ago, the Wright Brothers and Their ‘Contraption’ Made History

And tolay’s big airliner and a trim little plane at Indianapolis Airport.

SAYTON, Dec. 17 (U. P.).—The 35th anniversary of the first successful airplane flight by the pioneering Wright Brothers will be observed with special ceremony here today. Orville Wright, surviving member of avia~tion’s most famous brother team went to Woodland tery d pl the

- grave of the

other member, Wilbur Wright.

Planes from Wright Field will fly over the cemetery in tribute, In the evening, Orville Wright and Henry ‘Ford are to be honored guests at an annual Chamber of Commerce dinner a

Dewey Investigates Missing Records on Coster.

J

NEW YORK, Dec. 17 (U. P.). = Federal authorities revealed that others “just as important” as Philip Musica ‘were involved in the scandal of McKesson & Robbins, Inc., the drug firm which was de= veloped by swindlers | with prison records. Assistant U. 8. District Attorney Irving R. Kaufman hinted that live ing witnesses might prove almost as

tion of the vast drug combine ‘Musica, the immigrant boy wh

was exposed and trapped as the “F. Donald Coster” who had built the financial. empire of McKesson & Robbins. : “Based. upon certain facts in our possession, there are other people— I wouldn't say higher in the scheme but just as important as Coster,”

of Federal Government’s investiga tion of the amazing swindle which may involve losses of 20 million dole lars to 13,500 stockholders. ‘The Federal attorney's remark was, interpreted as including the three brothers of the late Philip, who also changed their names and became McKesson & Robbins executives. Philip, the “big brother” and arch schemer of the group, was president; of the corporation. The three sure viving brothers were in jail, unable to provide $100,000 bonds each. NEW YORK, Dec. 17 (U.° P.).—The United Press editors in New York who last week - selected the 12 biggest news stories of 1938, revised their list today to make a place for the McKesson & Robbins scandal, The original list began with the Sudeten crisis and ended with the Richard Whitney confession. Today the U. P, editors removed the Whitney story from their list and substituted the McKesson & Rob< bins story “because of its greater dramatic impact and broader ramifications.”

Es i - el

They are George, who assumed

and became assistant treasurer of his brother’s firm; Arthur, known as George Vernard, who be= came connected with two dummy corporations dealing with the firm’s crude drugs department; and Rob= #ert, who, as Robert Dietrich, posed as the brother of George and was & purchasing\agent for the firm,

a Republican and a Democratic polis tician of Connecticut—the state in

tained its largest plant. They will be questioned next week. Subpenas also were issued for two sisters of the Musicas, and for two other men said to have been ine volved in the firm’s dealings. In three Connecticut cities, the Government, creditors and stocke holders moved to tie up the remains ing assets of the corporation, now operated by two trustees. Thomas S. Smith, U. S. Collector of Internal Revenue at Hartford, said his office would make demands soon upon McKesson & Robbins for payment of $240,000 taxes, due Dec. 15. At New Haven, three creditors filed a petition in Federal Cour$ listing claims of $20,000. At Fairfield, the Black Rock Holds ing Co., holder of numerous shares of M. & R. stock, filed $10,000 ate (Continued on Page Two)

PUBLIC DEBT GOES T0 $305 PER CAPITA

WASHINGTON, Dec. 17 (U. P.) — The Treasury announced today that the public debt is now at an alle time high of more than $39,400,000,« 000 representing approximately $305. for each man, the country. The debt was boosted to a new peak of $39,403,330,479 on Dec. 15 as a result of approximately $740,000;=

ury.

TIMES FEATURES ON INSIDE PAGES

i

Movies .... 8 Mrs. Ferguson 10 Music 813 Qbituaries ...

BOOKS ..:iv0ses 9 Broun ....... 10 Churches .... 5 Comics ...... 14 Crossword .... 17 Curious World 14 Editorials .y.. 10 Fashions ..4. 5 Financial .... 13 Flynn ........'10 Forum . 10 Sm, Bear It. 14 35 IndDis, jas 3

‘valuable to the Federal investigas =

killed himself yesterday. when he

said Mr. Kaufman, who is in charge

>

the name of George E. Dietrich

now .

Subpenas ‘likewise were issued for 3

which McKesson & .Robbins maine

woman and child ng!

000 cash borrowing by the Trease .