Indianapolis Times, Indianapolis, Marion County, 5 January 1939 — Page 1

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FORECAST: Partly cloudy tonight, becoming

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tomorrow; considerably colder tonight, with Towest temperatures 30 to 35.

1 radia at

SCRIPPS — HOWARD §

| VOLUME 50—NUMBER 257 °°

THURSDAY, JANUARY, 5, 1989

" Entered as

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

[OWNSEND ASKS LEGISLATURE FOR “TAX LAW REFORMS

: | Governor Calls for Study of Liquor Report;

~ Urges Changes in Welfare, Budget

d And Marriage Statutes.

J’ CAUTIONS AGAINST PRIMARY CHANGE

Knapp Elected Speaker of House and Stein Is Named Minority Leader; Both Chambers Adjourn Until Tomorrow.

The Legislature adjourned until 10 a. m. tomorrow at the conclusion of Governor Townsend's address at the opening ®mession

~ today.

(Text, Pages 10 and 11)

Governor Townsend called on ‘the Legislature which chnvened today for revisions in the marriage, tax and budget Iaws and “liberal adjustments” in the state welfare laws.

In his address to the 81st regular session, the Gov-

~ ernor also urged:

1. Repeal of the Truck Weight Tax Law.

2. 3. 4. 5.

A study of the Liquor Control Commission’s report. Recodification of the State’s safety laws. Caution in any changes in the direct primary. Revision of the food and drug laws.

6. Permanent extension of the Jan. 1 auto tag purchase deadline to any time between, March 1 and July 1.

7. Enactment of a State

wage collection law.

2. Appropriation of $10,000 to be used to protect Indi-

labor and capital from foreign competition.

9. Adjustments in the State conservation laws.

10. A study of distribution|

Nmethods: of state-collected

funds. Declaring that “it has been apparent for some time that changing, conditions have required a revision of our marriage statutes in the in- . __terests of health and.soeial stabil. #“sty,” Governor Townsend asked the Legislature to study the report of his special Marriage Law Commit‘Interested in Syphili&’ “The committee and I have been particularly interested in preventing the spread of syphilis through marriage, and thé committee's recs ommendations do set up definite safeguards,” the Governor’ declared. ‘On taxes the Governor urged amendment of the budget review laws to provide a longer period of time between publication and the adoption of budgets, “in order that ‘the public may have a better opportunity to study their tax proposals.” ‘Lists Welfare Needs

Declaring that “the greatest probf lem of my administration has been " the welfare of the people with moderate and low incomes,” Governor Townsend made the following recommendations concerning welfare: ‘1. Creation of a joint House and Senate Commission to make a com- - prehensive study of unemployment and relief problems. : 2. Consideration of a program of permanent co-ordination and adadjustment of the system of security for those |

ance. ) 3. “Liberal adjustments” in. laws affecting assistance to aged, blind and dependent children. The Governor told the legislators that, by executive order, he was transferring the duties of the Governor’s Commission on Unemployment Relief to the State Welfare Department,’ :

Cautions Legislature

On the election laws, which have been under discussion during legislative caucuses, the Governor cau- * tioned the Assembly on the proposal for placing nomination of State officials and U. imary. Pre said:

«1f after consulting. public will, |

you find that a substantial majority desire the nomination of State office candidates, or part of them, and for the United States Senator, by direct primary, and you decide to enact a ary system, I would have you

ho heed public assist-

S. Senator in the direct :

LIQUOR REPORT LEAK" SLAPPED

‘ Political . ‘Maneuvering,

-+ Says Settle; Caucus Action |

‘Strikingly Similar.’ (Text, Page 6; Editorial, Page 16)

As . Governor Townsend today made public’ the report of. the Special Liquor Law Study Commission, Chairman W. H. Settle of the com-/ mission branded’ as “political maneuvering” last Tuesday's leak of the recommendations to the Democatic caucus. The report made 12 recommendations including repeal of the beer importer system, restrictions’ on package sales of less than one pint with certain exceptions, removal of the restriction on the number of wholesale beer permits; ‘ Comparing the Commission’s report and the Democratic caucus’ program, Commissioner William E. Treadway said “the similarity is striking.” He supported Chairman Settle’s statement that: “It looks as

tage of the committee in giving advance information on the report.” ‘Rabbi Elias Charry, another member of ‘the Commission, however, said that no Commission member

consequently any inference of a leak was “a. stupid statement.”

Recommendation Listed

The Commission’s recommendations were: : 1. Repeal of the sections of the present law providing for the “port of entry”. system. ' . 2. A defensive reciprocal statute under which the Alcoholic Beverages Commission would be authorized to meet problems created by changing conditions in the liquor ‘industry. . hood 3. Legislation prohibiting the extension of credit both in the wholesale and retail marketing of liquor. 4, Amendment of the present law to require all fraternal clubs and lodges to comply with the license, visibility and closing hours provisions of the present law.

Urge Bottling Clause

Knapp Takes Over House Gavel

Times Photo.

" Secretary of State James Tucker, Republican, left, lost no time in

congratulating and turning over

the House gavel to Rep. James

Knapp (R. Hagerstown), right, after the latter, was elected House

Speaker shortly after the Legislature convened tdday. Slenker (R. Monticello), center, looked on.

Rep. Glenn R.

All Is Calm When House Goes on Job

By JOE COLLIER Like the night before Christmas, at 9:45 a. m. today not .. a creature was stirring in the House. For fully 15 minutes before the Indiana Constituticn says the Legislature was to open, the 51 Republicans and the 49 Democrats were in their seats, sitting still, and gripping the ‘arms as if they were about to take their first roller coaster ride. Por that is believed to be the first ‘time in the legislative history of this or any other state, things happened on time. The House was sworn ‘in more than Fkalf an hour before the Senate. Rep. James. Knapp = (Re. Hagerstown) was elected S)eaker, even hefore the ‘Sengte des All Representatives = ‘were there for the roll call; vhereas at least four Senators were absent. at A ‘The Representatives weren't even smoking cigars, and you could almost have hoard ‘a pin drop, except When .someons ‘was officially -speaking. When the Senate moved over to ‘the House to. hear the Governor's message, Re jresentatives were downright stingy ‘+ about sharing their se:ts.

INDICTMENTS IN PRIMARY VOIDED

Spencer Finds Judge Baker’s Instructions to Jury ‘Misleading.’

By NOBLE REED Indictments charging 22 local primary election workers with violating the Indiana election laws today were ruled invalid py Special Judge John W. Spencer Jr. .of Evansville, in

Criminal :Court -here. Judge - Spencer's decision, technically sustaining the plea in abatement, -in efféct means. that all the indictments are ruled out of court and that new true bills would have to be returned by a new grand jury before any of- the defendants could be brought. to trial. . |: Attorgeys . were ‘instructed by Judge Spence : eleasing al, “defendants from | their bonds. All have been held in $1000 bond since indictments were returned last September. . “The ruling wads based on defense attorneys’ ehipfges, made recently in a plea in abatement, that Frank P. Baker, former .Griminal Court judge, “illegally overced the Grand Jury into retur the indictments.” ; :

le hk bad = Judge Spencer declared - that “most of the evidence is merely demonstrative of the fact that the Judge- of the Criminal Court was engaged in a serious effort to carry

though someone has taken advan-

sat in the Democratic caucus and

NATIONAL BANKS CONDITION _ ASKED

State

Department Issues Call as of Dac. 31.

WASHINGTON, Jan. 5 (U. P.).— Controller of the Currency Preston Delano today issued a call for condition of national banks as of Dec. 31.

The State Department of Finan

cial Institutions today issued a call for condition of Indiana State banks as of Dec, 31.

HEAVY RAINS ARE DUE TO SWELL STREAMS

Fair and Colder Predicted

~~ For Tomorrow.

HOURLY TEMPERATURES

a.m... 56 10a m... 51 am... 55 11 ao. m.., S51 a. m... 53 12 (Noon). ‘a.m... Si

Heavy general rains over Indiana,

Also

51. 1 p.m... 49 iia

out the duties of his office.” Judge Baker, who has hitherto refused to comment on charges that he influenced the Grand Jury, was ill in bed today and could not be asked to comment. * In his ruling, stated: “The secret instruction given by the judge of the Marion Criminal Court to the foreman of his Grand | Jury, even if no violation of judicial propriety, nevertheless was fun-

Judge Spencer

of law, and misleading to a Grand Jury obviously ‘anxious to do that Yaich it believed the judge desired : 0.” as : = . Discussing :the “secret instructions” giyen the Grand Jury, Judge Spencer referred to evidence offered recently in the plea in abatement hearing when Ellis Carroll, Grand Jury foreman, testified: he conferred with former Judge Baker about election evidence before indictments were returned. Judge Spencer further stated: . “The - facts - thereby developed seem to be. that the Grand Jury had: been in ‘session about eight weeks - without a report when the Criminal Court Judge reinstructed the jury and thereafter discussed

such Grand Jury in chambers; in (Continued on Page Five)

cer’ to prepare entries

damentally incorrect as a statement.

the matter with the foreman . of

NEW 9-BILLION BUDGET ASKED BY ROOSEVELT

Surprise Relief Message 1s Compromise on WPA Spending Poljcy.

NATIONAL AFFAIRS = BUDGET includes two billions for defense. : 3 RELIEF budget to be opposed ‘by Congress economy bloc. BRIDGES attacks Hopkins as New Deal foes rally. ; HOOSIER Congressmen sur- . prised by message. U. S. NEWSPAPERS praise and criticize message. ABROAD: Dictator nations angry; democracies: pleased. i wow» (Other Stories, Page Four; Budget,

Other Stories, Page Nine; Gen. Johnson, Page 16.)

WASHINGTON, Jan. 5 (U. P.)—. President Roosevelt submitted a near record nine billion dollar fiscal year budget to Congress today and bomb-shelled legislators with a surprise deficiency demand for 875

million dollars in immediate relief funds. . The new relief demand will swell the current 1939 fiscal year deficit to $4,097,000,000. ; : He asked the deficiency appropriation for WPA to spend during the remainder of the fiscal year which ends June 30, 1939. The nine billion dollar new budget is for the fiscal year 1940. If the new relief suni is voted over conservative protests it will boom recovery and relief costs in this fiscal year to a spectacular $3,312,604,830. But the President promised to cut those costs to $2,266,165,000 in the next fiscal year. New WPA

upward of 2,700,000 jobless during

are almost gone. * Compromises on Relief

The WPA request was made in a special message—the President’s first special one to the new 76th Congress. He will send others shortly Gealing with national health plans an national LC B IE, re te] ~ Congress} Oe ai sist that 500 million dollars would be der of the year and a scattering of bitter-enders would accept the Presi-

dent’s challenge to cut all recovery

and relief spending by one-third to

balance Treasury books immediately. Speaker William B. Bankhead (D. Ala.) and House Majority Leader Sam Rayburn (D. Tex.) said the WPA. appropriation would be taken up immediately. It may be ready for action next week. : - ‘Mr. Roosevelt almost split the difference between the budget balancers and the advocates of big relief spending. C. I.O. Chairman John 1. Lewis. and David Lasser of the WPA Workers’ Alliance have been demanding a billion dollar immediate relief appropriation. The economizers said 500 million dollars would be enough. : >

Rejects Economy Plea

The President’s 1940 fiscal year budget submitted today bolstered his defiance of dictators with a call to arms for defense and to spend for recovery. : A Congressional economy bloc is actively hostile, but he rejected economy pleas of conservative New Dealers to cut Government costs. He asked $422,000,000 in new taxes. He proposed a two billion dollar military and semimilitary defense program. : This annual budget message sharply reminded Congress that Mr. Roosevelt had not “been (Continued on Page Five)

STOCKS TAKE DROP ON BUDGET MESSAGE NEW YORK, Jan. 5 (U. P)—

Stocks drifted lower following the President’s budget message. Avia-

tion and rail issues were the prin-

cipal losers.

Hopkins Under A ttack as

money is needed, he said, to care for|

WPA during the femain-

Text, Page Eight; Relief Text and a

Prof. Felix

Times-Acme Photo, Frankfurter:

Sen. Pope Named to TVA; Coauthor of Farm Bills

WASHINGTON, Jan. 5 (U. P.) —President Roosevelt today nomithe next six months. WPA funds| nated former Senator Pope (D. Ida.) as a member of the Tennessee Val-

ley directorate to fill the vacancy created by ouster of Dr. Arthur E.

Morgan. : Senator Pope,

‘a stanch New Dealer and coauthor of the New Deal

farm program, was defeated in the Idaho Democratic primary last year.

Today's (nomination, sent to the Senate for confirmation, was for the remainder: of a - nine-year term

Morg would ha other dl and David

Mr. Roosevelt also sent to the

Senate the nominations of former| Works Progress Administrator Harry |. L. Hopkins to be Secretary of Com-}.

merce and former Governor Murphy of Michigan to be Attorney General. Both Mr. Hopkins and Mr. Murphy have assumed their Cabinet posts, the Senate must act on their

but the confirmation. = ; ; Senator Pope has been interested in TVA since its creation, has sup“it consistently in the Senate and has studied it at first hand. Visited Valley In fact, his study of the Authority’s work so impressed him that he introduced a Senate bill two years ago to create a Columbia Valley Authority. Like the TVA act, his bill provided . for navigation, flood

control and power development of the Columbia River. s Tall and well-built, you think of Senator Pope as a typical big Westerner. But it happens that he was big before he ever left his home in the South, where he spent approximately half of his 54.years. : He was 6 feet 13% inches tall and weighed 180 pounds when he played guard and tackle on the Louisiana Polytechnic football team early in this century. He was captain of the team during his senior year.

“We playetl most of the big teams |

of the Souvh, and so I got to see a lot of that country,” he reminisced. His recollections: went beyond his football days; he recalled his cotton picking days-as a boy. ; After-graduating from Louisiana Tech, he studied law at the University of Chicago and got his degree in 1909... he by 70% Hie Goes-West | The ‘young lawyer found a $10-a-week job in a Chicago paper factory, and worked there until ®he had enough ‘money for a railroad ticket to Boise, Idaho.

which expires May 18, 1942. That

| IN MIAMI HOSPITAL

MOE Eormer County Welfare

JOEL A. BAKER DIES

~ Head Was 45.

Joel A. Baker, former . Marion County Welfare director, died in Miami, Fla, last night, according to word received here today at his home. He was 45. A member of the family said that Mr. Baker had been in ill health for some time and that he had gone South for a vacation. He died in Gable Hospital. Death was due to a stomach ailment. : He is survived by his wife and by a daughter, Jo Ann, both of whom. are in Indianapolis at the Baker home, 211 Beverly Drive. Mr. Baker held many political offices during the last decade in Indianapolis. = At one time he was secretary of the Indiana State Bar Association. He later became City Purchasing Agent in the administratiop of Mayor L. Ert Slack.” He was special investigator attached to Criminal Court.

5 IN CONTINENTAL FRAUD SENTENCED

Moore Given Seven Years ~~ And His Son Five.

Federal Judge Robert - C. Baltzell today sentenced John W. Moore Sr. and his son, John W.. Moore Jr. to seven and five years, respectively, in Federal Prison for their part in the one . million dollar = Continental Credit Corp. fraud case. : ; - ‘Sentences also were passed on five other officers and employees: of the corporation and its affiliated firms.

Cardozo’s ; Succe ‘A Liberal, So Lineug Is Unchanged.

BF. D. R’s ADVISER

Minton Backs Choi Of Nation’s “Most Influential Man?

"WASHINGTON, Jan. 5 (U. P.). President Roosevelt today nor nated to the United States Suprei Court Prof. Felix Frankfurter, o standing legal liberal whose in ence Jong Tiss been an import actor ew Deal policy making. Prof, Frankfurter, a Je

scholar whose liberalism attracted

f | Benjamin Nathan Cardozo, an

Jewish liberal of legal renown. The nomination was sent to the Senate, which must confirm the aps pointment of the 56-year-old Hare vard University Law School profess sor before he assumes his place. Senators generally predicted the nomination would be confirn with little opposition. : The nomination was referred mediately to the Senate Judie Committee for consideration. publican Leader Charles L. Mi (R. Ore.) announced recently th he would require all major appoi ments to undergo commit scrutiny. : oa Third Named by F. D. R..

A keen and erudite student of! law, conscientious lawyer and a sonality who ‘sent“young “attorn into the New Deal, Prof. an furter has been termed “the mo influential single individual in United States.” : 3

Prof. Frankfurtet is the third

since he replaces Justice Care another liberal. Presumably, h join Justices Louis D. Brandeis Harlan F. Stone as the nucléus court liberals. With the two R velt appointees—Justices Black Reed—this group will. comprise. liberal majority on the Court of least five. a +Chief ‘Justice. Charles: Ev: Hughes and: Associate Justice J. berts have combined votes with this liberal bloc New Deal issues before the C in the last-two years. {

Two Consistent Conservati

Théir general - adherence to I eral principles limits the consisten conservatives to Justices James © McReynolds and Pierce Butler, sul vivors of the once dominant co! servative majority. : ~ An adherent of the school of : eralism outlined in historic’ diss sents of Justices Brandeis and the late Justice Oliver Wendell Holme Prof. Frankfurter has been aquent “back door” visitor to White House in this Adm and the intellectual leader powerful group of young gove! mental dfficials influential in ma ping the course of the New Deal. Many of his students and pr teges -are now in Administrati policy-making postions. : These 1

change Commission; E. Lilienthal of the Tennessee ley Authority; Calvert Mag attorney for the Wage-Hour A istration; former SEC Cha James M. Landis, now dean. Harvard Law School; Judge : Stephens of the Circuit ‘Court: Appeals for the District of

Netw Deal Foes Draw Lines particularly in Indianapolis and tol : i hs ai se : the south, will cause streims to rise 5 WASHINGTON Jans (U. P)— SE a Senator Bridges (R. N. H.) today considerably 2 J iH. frmington, opened fire on the appointment of meteorologist, said today. They will | former WPA - Administrator ' Hopnot approach flood stage however, rerce Secretary while

kins as Commerce £ without 36 hours more of downpour, | Pipartisan opposition to the Roosehe predicted. ;

velt program was an undercurrent: This, he said, is not likely and

in both Houses of Congress. r Senator Bridges denounced the he predicted that weather would be fair and colder .tomorrow. The

bear in mind the defects of previous jaws and avoid them, if possible.” On the traffic safety question the : mmended to the Legislature the report of the Indiana Traffic Safety Council on the recodification of safety statutes as a further step toward the prevention of death on the highways.” . The Governor said that because the present Food and Drug Laws do . not control dangerous drugs, cosmetics and therapeutic devices, he recommended revisions in the acts. ‘He also urged permanent extension of the auto tag deadline because “I believe it is unfair to ask a motorist to pay those fees at a (Continued on Page Five)

In those days, he explains, the Cry) “yy, yroore Sr. was fined $5000 and was, “Go West.” He chose Idaho|pic on 41500. © = = because he was told it was growing| ne sentences on the other derapidly, and Boise was reported t0|fendants in .the case were Hiram him as booming... ~*~ ° [Browne three years and $1500 fine; He arrived in a strange city with-/gaiph . Phillips, 18 months and out. money or friend but he ' soon $1000 fine; Russell E. Wise, a year found" work in the law office of the|ang a day and $500 fine, and W.|: Mayor of Boise. His salary was $30 garry Eikenberrw, a year and a day a month. - That was in the fall of |g;g $500 fine. = ; 1009, TWENEY You ler he, him-| Earlier, Judge Baltzell had refused | jsell, Was elce.l0. VBPOLs to delay sentences pending hearing ‘He served as City Attorney, then|q, iu Eh lg

assistant Attorney General for the : nani ' proposals. DOUBT FOUR MANIACS

5. Legislation to prohibit the bottling of beer manufactured in other States and imported into Indiana in bulk. : 6. Amendment of the present law to prohibit the sale of liquor in bottles of less than one pint capacity, | except in public dining cars or dining rooms. 7. Legislation making the sale of liquor after midnight illegal ‘except for New Year’s Eve, 8. An increase in the number of excise police officers and the placing of the excise police force on a merit

bia and John W. Winant, chairman of . the Social. 8 Board and now head of the In national ‘Labor. Office: at G Switzerland. :

. Isolationists charged the President desired to appoint the United States as “world policeman,” and that such a policy eventually would plunge the country into war. Ecohony bloc leaders protested contination of large-scale spending, and were ready to challege budget recommendations. Legislators clamoring for drastic revision of New Deal laws, particularly the National Labor Relations Act, deplored the absence of specific White House

Remove Beer Restriction

9. Amending of the law to remave the restriction on the number of wholesale beer permits. - 10. Legislation requiring a special entertainment permit by those who wish to provide music and dancing facilities. : Fo 11. Legislation for signs in all liquor establishments calling attention to the illegality of sales to minors. 12. An appropriation for education of the public concerning the Liquor Control Act. .

DIZZY SIGNS FOR 1939 5200" 6|serial Story . 22| CHICAGO, Jan. 5 (U. P).—Disay Bear Tt. 22|Society

6 2! ... 12| Dean heard today that hig arm was | a2 “okay” and shortly afterward :

Will need expe the ground ‘and in factories. :

‘ TIMES FEATURES 1 ‘ ON INSIDE PAGES

BoOkS -vososes 15|Movies «..... 117 sesso 16/Mrs. Ferguson 16 3 sveses 22 Obituaries ses 7 ~ Crossword ... 23|Pegler 16 ~ Curious World 22 Pyle Editorials 3... 16{Questions .... Fas i ns ses 13| Radio 2 Financial .,.. 23/Mrs. Roosevelt 15 Plynn. . Scherrer 15

in the Ge ay SEs Jn. We If you are &

TWO FISHING BOATS ; : : correspondent, 1 e S {repeal of the Reciprocal Trade|Cecil Wilson and her 5-yearro moe La TSURUGA, Japan, Jan. 5 (U. P.)./ment had thrice been ‘attributed to Pre Act, curtailment of the|daughter were i near Barger-|: BOOE IES REPORTED OLO ED CLOSED || —Fifty-one ‘persons were missing]? d ot disputable. | § ) Labor Rela-|ton, Tenn. in the same storm. | GARY, Ind, Jan. U. P)— 8 of two fishing 4 killed near

selection of Mr, Hopkins on the grounds that administration of re- ; . i. lief was one of the major issues of heaviest ‘rainfall in Inciana last|the November elections. : State, then Mayor and then U. S. : night was at Bloomington, with 2.23 re is the appointment of 2 Sena i Be Song ht *re-slectin on Jo i mar ver met: a. payroll ; ; : , but, sl 2 : i™ A ches. 11 as ruined 146 Inches B80 F008 SSE SiR | Lending Administration opponents Ee IN SOUTH BEND AREA i has only had experience as a social |interpreted as heralding the end of pe iE IN STORMS Terre Haute, 2 at Evaniville, 125 worker.” perience as a social New Deal experimentation the FIVE DIE IN STORMS | _ . . sep en 5 Ww B>. at Vincennes, 110 at New Harmony, | "re" Republican then recalled |President’s assertion that “the Past In el HEDN STATES [cn tiny otoredtio reports hat 1.13 at Anderson, 1.71 at Martins- | published reports, denied by Mr.|three Cong ‘have met in part| IN SOUTHERN STATES |rotice today discredited rep : ville, 198 at _Edwardsport, 2 at|Hopkins, that the former WPA ad-|or & whole the pressing needs of the| : po =" ifour maniacs who escaped ] Shoals, and 1.27 at Hazleton. ministrator told. a friend that “we|new order of things.” e ‘MEMPHIS, Tenn, Jan. 5 (U.|day from the Lima; O., Ho About a 20-degree drop in tem-|must spend and spend, tax and tax,| Until the Administration prepares|p).—Seven persons were killed, atthe Criminally Insane a perature was predicted for tonight |elect and elect.” he specific recommendations on foreign|least -a score injured ‘as a result) pecs Bend. by the Bureau. Deimocratic . Leader Barkley (D.|policy and aecom: panying questions|of tornadic winds in four Southern Ty Sou rted that h Ky.) reminded Senator Bridges that|{of national defense and. neutrality, |states. Sedo ol Be an oF Teporieq thal : e Mr. Hopkins had denied the state-|Congressional leaders will concen-| A cyclone near Bolivar, Tenn.io. wiam an is ugh ment, ‘Senator Bridges then put in|trate on proposals for broad|last n oyed the home, uf(Y3s Wiliam Brucks, ome © ths the record a statement by Arthur |changes in existing laws. Monroe Willis, 40, killing Mr. ‘Willis Pus! ye a the man ioe Said. as