Indianapolis Times, Indianapolis, Marion County, 20 December 1938 — Page 13

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1) d s

EY CASE

BEFORE SEC AS HUTCHINS QUITS

FA Je

Now David Can Ride fo Nursery Sco

New Deal-Morgan Feud May |

~~ Be Renewed as New . ~ Probe Is Refused.

By THOMAS L. STOKES Ci Times Spegial Writer WASHINGTON, Dec. 20.—The Securities and Exchange Commission: and the New York Sfock Exchange find themselves at odds again, after

a period of comparative peace, over

refusal of the Exchange Board .of Governors to further explore cir

- cumstances surrounding the Rich + ard F. Whitney case which rocked |: © Wall Street a few months ago.

The issue was raised dramatically by the resignation of Robert M.

Hutchins, youthful University of

Chicago president, az one of thel

three “public members” of the

~~ hoard.

His resignation wes .in protest against 'the Board's action in sume

"marily dropping the Whitney case ‘without proceedings against

change members—including at least two J. P. Morgan partners—who knew about Mr. Whitney's criminai

> conduct months before it was Tre-

vealed publicly and failed to call it}

to the attention of ‘officials.

the proper

Test Case Passible Chairman William O. Douglas and

-' SEC members are not expected to

jet the matter rest. and the Stock Exchange, it apepars, has not heard the last of this incident, though no course of procecure yet. hasj crystallized. | It is suggested tha the Commis-

| sion might seek a review of the

board's action, ask that the case be reopened so to speak, or might itself undertake its own investigation into the secret knowledge of Mr. Whitney's associates on the Ex-

. change.

A decision probably will await receipt of the board's minutes. Nothing will be done hastily. 0 To some, the incident raised the fundamental question of whether the Exchange can effectively regulate itself, in view of the interrelations between its governing body and .ather members with powerful con‘nections and influence, such as J. P. Morgan & Co., built up over a long period of years. Some, view this as likely to become an important test case. : Hutchins Votes Alone For the Exchange Board of Governors was rather positive in its) action., The vote was 27 to 1 to drop the Whitney case, with Mr. Hutchins the. only dissenter and with the two other “public” members of the board, Robert E. Wood and Carle C. Conway, joining with the majority. Mr. Hutchins long has been a close personal friend of Chairman Douglas. Whether the resignation was by previous understanding with | the SEC Chairman or not, Mr. | Hutchins’ outspoken criticism of the board's action accompanying his |

‘. yesignation is reported to coincide

with the view of Mr. Douglas and | served to define the issue. This constituted the first serious | rupture in the co-operative relations between the SEC and the Ex~ change since the latter, under pressure from Mr. Douglas and the SEC, | reorganized itself, provided for three “public” members, end appointed a paid president, the 31-year-old William McC. Martin Jr. Mr. Martin presided over the koard meeting. New Deal vs. Morgan? Numerous reforms also were in-| stituted under the drive of the ag-| gressive Mr. Dougles. ; The affair appears to bring into conflict again the New. Deal and the! J. P* Morgan interests which always | have exerted such a powerful in-

fiuence in the past over the Stock 4.

Exchange. Richard Whitney, now serving sentence in Sing Sing, formerly was Exchange president, Public hearings before the SEC here revealed that his brother, George Whitney, a J. P. Morgan partner, gnd - Thomas W. Tamont, another Morgan partner, knew of Richard Whitney's operations long before they came out publiely. E. H. Simmons, Exchange president before the regime of Richard tney, supervised the Exchange’s gratuity fund from which Richard Whitney had removed securities. He has denied he knew of Mr, Whitney’s criminal conduct, : ] Turning over the record of the ublic hearings here to the: Stock Exchange, the SEC expected the

- Exchange to continue its own in-

quiry and, where it found prior knowledge of guilt, te fix responsi-

‘© pility and discipline members who

anid ah BY Bl

had failed to acquaint the Exchange with the .facts.

SCHOOLS IN MIDST "OF YULE PARTIES

Indianapolis public schools were

today.

A school dance is to be held in

the Thomas Carr Howe High School ‘Gym tomorrow afternoon. The Shortridge music department is to be in charge of a program tomorrow in Caleb Mills Hall. Senior and junior high school assemblies at Manual High School will hold a party today and tomorrow. An all-school chapel will be held today in the Butler University Fieldhouse under the direction of the student Council, undergraduate governing body.

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COLDS|

Little David Corum has his new wagon and the American Settlement Nursery School and Kindergarten will have candy for Christmas parties. ‘Those problems, at least, have been settled by impromptu Indianapolis ‘Santa Clauses. Handy Jones, 543 Massachusetts Ave. brought the Corum wagon out of stock and assembled it at the Settlement House, 617 W. Pearl St.; while David slept. David, who was injured in a traffic accident in July, will be pulled to and from the Nursery School

GOODFELLOW FUND

PLANS 25TH JUBILEE

Organization’s History to Be

Compiled for Event.

DETROIT, Dec. 20 (U. PJ).—The| Detroit Old Newsboys Goodfellow Fund will celebrate its silver jubilee this Christmas and to celebrate the event a book, “The Story of the

Goodfellows,” has been ‘written.

es of the book are being mailed to managing editors of

|Arguments May Be Ended

SNYDER WEEPS |

AS HIS LAWYER

| PLEADS TO JURY

Today on Ruth Etting’s Former Husband.

HOLLYWOOD, Dec. 20 (U. P).— The defense for a Weeping Martin

(Col. Moe) Snyder asked his free-| |dom today as a castoff husband, victim of a plan to get him out of | [the way so that his former wife, ® |Ruth Etting, would be free to marry

her new sweetheart, Myrl Alderman, J In one hour of argument, At-

“torney Jerry Giesler hoped to finish

z Times Photo. Handy Jones gives David Corum a wagon.

and his home instead of being carried. He is still | | lame from the effects of the accident, And the School Mothers’ Club has received from kind Indianapolis persons enough money and candy to provide even more than it had anticipated it could for the twa parties Friday. For the moment, at least, the most pressing problems of the Settlement are solved and teachers and mothers approach Christmas with some com-=-posure. :

Yesterday

the work of the charity organiza- the movement is traced in the tion. book, written by Ernest P. Lajoie, It was 25 years ago that the late|a former circuit judge and a pracJames Brady conceived the idea of |ticing attorney in Detroit, who has raising funds to insure the needy|been one of the prime movers in children of Detroit a Merry Christ-| Old Newsboys Goodfellow movement mas by organizing a group of men for many years. It is his hope that who as boys sold papers in down- the movement will spread throughtown Detroit. The idea was for | out the country. them to resume their old corners at, —_— a sisted period just bylere Onrigs | © CAT BACK IN 18 MONTHS mas and se apers to all who ie - passed, a refusing any | CENTERBROOK, Conn, Dec. 20 change. | (U. P) —Time means nothing to The idea caught the popula Dick, the family cat of Mr. and Mrs. fancy and today the Goodfellow gichard Dolph-A year and a half

Fund is. an agency that works the year around ee y itself re- 280 the cat wandered away. Then it sponsible for raising $150,000, which | came back, rattling the latch on the cares for the needs of 65,000 poor | door as it always had done to gain

children in the metropolitan area | admittance to the house, and set-

newspapers all over the country to|of Detroit. ‘Itled down as if it had been gone

"in the midst of Christmas activities §

| | | 1 | | | | | |

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187

his argument and save him from a lifetime behind the bars. Then Prosecutor Eugene U. Blalock was to make the rebuttal and, time remaining, Judge Thomas L. Ambrose would prepare the charge for a jury of six men and six women who will decide Snyder's fate. He is charged with shooting Alderman and with threatening the lives of Miss Etting and his daughter, Edith Snyder. “I do not say that the prosecution or the police Department would trump up these things,” said Giesler, “but.I do say that these three, Miss Etting, Alderman and Miss Snyder. would so so as the record, shows, sO their aims could be gained and so that Miss Etting and Mr. Alderman

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His logic directly opposed that of |. the state, which said Snyder had wrangled and abused Miss Etting through their {17 years of marriage and, after she was free, tried’ to ‘wreck her chances of happiness with ‘Alderman, ber pianist.

‘Mr. Geisler said Col. Moe shot |

Alderman in self defense on Oct. 15 and did nothing tq endanger the lives of Miss Etting and Miss Snyder. He ridiculed the idea that the ieditated, _ “After the defendant shot Alder- | man in self-defense, he had every opportunity to kill Miss Etting and his daughter if he had wished. «He could have slain them in cold blood if he had had murder in his heart. They were two defenseless women and Snyder had two guns, his own and Miss Etting’s. Yet what ‘did he do? He called the police himself and waited for ‘them to come.” ! Mr. Blalock said that the women escaped only because Miss Etting grabbed her revolver after Alderman was shot. He called Snyder “a yellow rat all the way through.” Defendant Sobs . - Snyder’s short, stocky frame shook with - sobs ‘when Giesler told’ how Miss Snyder picked up the revolver Miss Etting dropped. “His own daughter, his own flesh and blood testified that she shot at her father, even ‘though she admitted she did not see a gun in his hand when she shot at him,” Mr. Giesler said softly to the jury in a ‘hushed court room, i : Win, lose or draw, Snyder had 25 years lopped off his possible sentence. Prosecutor Blalock asked dis-

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shooting started by 9

1¢ accused Snyder of forc-|ing & revolver at them. Otherw r three prineipals from |the maximum penalty could hav jnto the music room been 115 years. :

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