Indianapolis Times, Indianapolis, Marion County, 13 May 1939 — Page 1

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The Indianapolis Times |. 0.

FORECAST: Fair and continued cool tonight ; tomorrow, fair and warmer.

FINAL

VOLUME

51—NUMBER 54 SATURDAY, MAY 13, 1089 FIT

FRAUD RIFEIN KOKOMO CASE, ¢ U$. CHARGES

State and Defense Counsel Exchange Claims of ‘Smoke Screen.’

| PROCEEDINGS NEAR END/

Harley, Harmon, Ratoliff| Get Directed Verdict | Of Acquittal. (Photo, Page Three)

“This case reeks with fraud,” a Federal Court jury trying eight | former Kokomo City and WPA officials, was told today.

Abducted OAL ACCORD A Penny or Tr houghts MERE HINT OF CIVES WARNING ER on GIVEN TO CITY

Cautions Against Violence & Shia cl TL Mayor and Committee Meet As Chandler Sends |° Ae J ge McNear and Partner, but Troops to Harlan. aE Be er Get No Offer.

MINES OPEN MONDAY pi : | > PLEDGE REPORT MONDAY

| Agreement Near. ERNE | Believed Barrier.

PRICE THREE CENTS

EVISION OF TAX 0 AID BUSINESS

PREDICTED

‘Roosevelt Leaves Question Up to Congress,

But Says Revenue From Corporations

Must Stay at Present Total.

CALLS LEADERS TO WHITE HOUSE

NEW YORK. May 13 (U. P).— 7 bs nm | The citys attempt to learn Senate and Treasury Proposals for Repeal of

| Miners and union operators, with definitely the price at which it could |

six of the latter bolting, signed a ; : buy the Indianapolis Water Co. Profits Levy and Substitution of Higher

union shop agreement today and ? failed again today | immediately John L. Lewis warned However, a special committee of |

n ” 5 the dissenters that “there must not 8 MR | scven city officials was given what | Ny Nou, apR SEIZED BY NAZIS haan Of mie workers hy : = y ts | was described as an “indication of | if we extended this investigation gi" i 3 3. what the owners will take” at a

into everv countv of the U. 8S.”

ment. . The defendants are charged with conspiring to defraud the Govern-

Formal ratification of the agree-

{and his partner, R. L. Creek.

Rate to Be Discussed.

By THOMAS L. STOKES Times Special Writer

WASHINGTON, May 13.—Corporation tax revision to

Paul A. Pfister, assistant district ment, which was reached yesterday, SS ; LA hl 8 [closed door conference with C. w.| el Ht Nite pam hs was unanimous after the six asso- && : Fy jy | . i i < ker : : .. t : attorney, said in his closing argu- PUTNAM SAYS ciations from southern West Virs a : i McNear, Chicago investment broker, meet the demands of business is now definitely in the cards

ginia withdrew ahd meant that the : a LEW 4 | The committee will meet with its at the present session of Congress. 3 8 President Roosevelt still personally declines to sponsor

threatened soft coal famine has

been averted and 340.000 miners will . | parent committee of 23 city officials |

ment through the use of WPA labor Gagged and Quizzed About go back to work after being idle| § ® Ra ’ i \& : ] (at 11 a. m. Monday to report the|

on private jobs at Kokomo. Ac-

since April 1

results of its three meetings with a program, though carefully pointing out some “don’t’s.” He

quittal of three other defendants’ ‘Man Who Killed Hitler.’ The six dissenting associations, fl 4 LN 7 : L. * @ | Mr. McNear, who is representing the jg leaving the responsibility to Congress. Treasury Secree

was ordered yesterday by Judge J. Lerov Adair at the close of testimony Charges Smoke Screen

represented one-fourth of the ton- {C. H. Ceish estate, owners of ihe

He Declares. nage and employment of the eight- |

| company. tary Morgenthau will co-operate to the extent of submit

state area. | ui wa ; : Mayor Says Little ting various alternatives to Congressional committees.

BAKERSFIELD. Cal. May 13 (U. Mines Resume Monday | mn i mm In reporting the results of the con-

— |

Though Congress is never

Fo - —— . . The case was expected to go to the P.).—George Palmer Putnam, pub-| Eastern miners will return to the Times Photo. | ference Mayor Sullivan said: eager to undertake tax revie jury this afternoon following a brief |jjsher and husband of the late! pits on Monday, along with 126,000 Mother's Day comes only once a year and a year seems like an “We have been meeting since | |sion it virtually has been

summation by District Attorney Val amelia Earhart, told officers todag | western miners, who walked out in awfully long time to one as small as Penny Kelly, but she hasn't

Nolan. The judge said he would re-|,fter

ing to receive the verdict when it is! ye was abducted from his North | hour provisions of the 1937-39 con- |

he was found bound and sympathy last week. forgotten about tomorrow. She went to a nearby flower store to select |10:30 a m. They have made no

| an indication of price.

‘the growing psychology that

ye | 'jockeyed into position now to main mn or near the Federal Build-|ga00eq in a vacant house here that| The contract renewed the wage- | the gift for her mother, Mrs. Eileen Kelly, 2063 N. Meridian St proposition. We have only received | PLANS PUSHE ‘do the job, partly because of

reached | Hollywood home by two men who tract and differed from it only in|

“This subcommittee has no power

Lit ‘ Y » 9 ® Conviction carries a maximum spoke German. the wordage of the enabling clause, Fi Sl K Sh » htt penalty of two years in the peni-| Mr. Putnam returned to his home| Which makes the new document a og ows ing S Lp, to do anything except to get an |

tentiary and a fine of $10,000. in Hollywood today. complete union shop agreement. In demanding convicition of the| Undersheriff Jack Houston said no The wage-hour clauses, renewed

will report all of our negotiations to

remaining eight defendants, Mr. trace had been found of his auto-|

» ® : | . | for two years, provide a seven-hour, | R { Pl R d the larger committee here Monday. State and Railroads on : a Pfister charged the defense has mobile, which was used for the ab- five-day week and a daily basis wage ecep ion ans evise The Mayor would not disclose] Grade Separation are ready to take the initiae —— . " tive.

made “a concerted effort to throw! duction. of $6 in the north and $5.60 in before you a smoke screen of in-. The men made no threats and the South.

sinuations and insults.” gave

Forrest Jump, one of the defense captive, Mr, Putnam said. However, tions would attempt to resume

what the price indication was. Other | officials said that all comment on]

no motive for taking him| Whether the dissenting associa- Ship to Dock Late, So Welcoming Is Set for Tuesday; i|¢ meeting would have to come

(this will help business, and

{ offer, which we did not receive. We City Engineer to Confer With partly because Congressional

(tax leaders now apparently

The tipoff came when, after seve

from the Mayor. Negotiations for the long-awaited eral days of passing the buck back

attorneys, in replying to Mr. Pfister, remarks which they made in Eng-| Operation on a nonunion basis re- | Royal Counle Walks Deck Despite Weather. | For the first time since negotia- track elevation program on the|ang forth, it developed that Mr,

accused the Government itself of|lish convinced him that he was mained to be seen. Mr. Lewis, presi] | Mr. Creek. was called in. attempting to throw a smoke screen abducted as a “scare” because he dent of the United Mine Workers . : about the case. published an anti-Nazi novel re- Of America, warned them to remain | By WEBB MILLER Fear Tax Commitment

Those for whom verdicts were cently, Mr. Putnam said. [shut down until they were willing

ordered yesterday by Judge Adair were Charles H. Harley, James A.| He Harmon, fcrmer Kokomo WPA proj-

ect, supervisors, and Lester E. Hat | Violence but was shaken and un- “United Mine Workers,” he said. plans for their reception

The book referred to is “The Man |

apolis, former WPA superintendent |

| tions began, Mr. McNear’s partner, South Side were under way today | as City Engineer M. G. Johnson | made arrangements for a confer-| United Press Staff Correspondent ence with State Highway officials. sponsibility for tax legislation to The program was outlined in ala White House conference Monday

| : ; : RE Er ; ; te . Se Both men, and Fred Bates JohnWaylaid in Garage {to sign a contract with the union. | QUEBEC, May 13.—King George VI and Queen Elizabeth of Great

| Britain, en route to visit Canada and the United States, were held son, Mr. McNear’s local attorney, works

Roosevelt, has summaned Treasury officials and those charged with ree

Board resolution yesterday | afternoon.

was not subjected to physical Door Left Open back by fog and ice today and authorities were obliged to revise the left the conference shortly after it which declared the City's intention| This serves to give the movement

standard agreements with separate |ing the royal party, will not dock

| cussed the weather in Chicago. The

| started. They waited in the ante- of going ahead with extensive |a color of Administration blessing.

Board resolved to begin Morgenthau, Undersecretary John

cliff, 2052 Kenwood Ave. Indian- | Merved by the experience. “are prepared forthwith to sign| The Empress of Australia, carry- 1 S PROTESTS ON {room of the Mayor's office and dis- grade separation plans. [Those invited include Secretary 1 !

in Howard and Tipton Counties. Wha

Says Evidence Insufficient him about the source of the infor-

Judge Adair said he felt sufficient evidence had not been present-

that no defense would be offered for six defendants, other than the testi- At

mony already presented. The siX Hollywood, Mr. Putnam said. he was

ng on that went into the volume. pfine workers are aware that a'by Prime Minister W. L. Mackenzie ed to convict them and if a jury re- Wavlaid in the garage of his home in| ,4o0iations is favorable to the con-! As a consequence, the Prime turned a verdict of guilty, he would the exclusive Toluca Lake resi-|tyqat» Minister said, the functions ar- Hull feel “compelled to grant them a new dential district. One of the men| peferring {4 the statement of Gov. ranged in Quebec for Monday will trial.” poked a gun in his ribs, he said, (Continued on Page Three) be carried out on Tuesday. The Grounds as Reason. Federal inheritance tax authorities. | The judge made his decision after and forced him into his own auto- — defense attornevs told the Court moble

Killed Hitler.” Mr. Putnam|,omnanjes within or without the |in Quebec until next Tuesday morn-

the conference. lin the House of Commons at Ottawa

valuation of the water company by |

| visit to Montreal will be advanced { The only price indication has been| Mr

were Mr. Harley; Olin R. Holt, for- pound and gagged with automobile TURNS 10 BR ; [Joseph C. Grew, American Ambas- | rere ‘the Board. mer Kokomo Mayor; Carl J. Broo, tire tape and left in an unfinish>d Dinner Date Advanced |sador at Tokyo, has made vigorous elimination will he worked cut in [ings that Mr. Roosevelt repeatedly

former city attorney; George H. home on the outskirts of the city.

Morrow, former city engineer;| My Putnam struggled several program in Ottawa will include bombing of Chungking and “WORK PROCEEDING | said.

clerk, all of Kokomo. Since the trial began Monday, dozens of WPA workers, present Kokomo City officials, WPA investigators and officials have testified.

him.

Labor Diversion Charged with

heard his cries for help and released

The changes to be made in the representations to Japan over the

reporters were called in. Union A, It was understood by the com- Meridian St. to Bethel Ave. and Committee member, Rep. Jere Coo= . Putnam said that he was, .enonderance of sentiment in these King. mittee that Mr. McNear and his as- seven . . . sociate were reluctant to quote a vania Railroad from Raymond to |son (D. Miss.), Senate Finance Come Gives Humanitarian price because it might be used as a Orange Sts | mittee chairman.

City ‘Replies’ to Railreads Roosevelt “If” Is Large

! esi y ski Later they were called back into proceedings to eliminate 13 grade |W. Hanes, Rep. Robert S. Doughton | said that one of the men questioned | yssoeiations which withdrew from ing, a day late. it was announced JAPAN'S BOMBINGS the meeting and shortly afterward crossings of the Indianapolis|(D. N. C.). House Ways and Means

(Belt) Railroad from S.|Committee chairman, the ranking

crossings of the Pennsyl- per p. Tenn.), and Senator Harrie

Johnson was instructed by | They are expected to discuss varie until Wednesday (Other Foreign News, Page Three) |$26.500,000, which, according to Mr. the Board to arrange discussions ous proposals, worked out both at

Bound and Gagged IN UIRY IN The royal visitors are scheduled dn McNear, the City could buy the com- | between representatives of all 1ail- : on, DS tinited Sir tre “a A ingin ) . : SA 18M" the Treasury and at the Capitol, for Bakersfield, 100 miles from UR ER to enter the United States on] WASHINGTON, May 13 (U. P). pany through revenue bonds and re- roads affected by the program as | Ie sury and ; p d June 7, —Secretary of State Hull said today |tire the bonds, still making a profit. well as State Highway oficials and corporation tax revision, and une

Details of the grade doubtedly will hear again the warne

future conferences, Board members| Nas raised during talk of tax revie

|sion—that 1evenues must be maine

George Mix, former assistant city ; g ; 1 i: hi cities bv Japanese air| The Board's action constituted a |tained and that the small business< engineer, and Mel Good, former Bours aha nally managed 10 oppen Ace New York Detectives advancing the state dinner from Siiinese By P ON NEW 006 TRACK [repls io Ae officials who have | man, who has become the particular

City the ta inding his i ape binding his mouth. | : cupants of a house 50 feet away Seeking New Link | Wednesday to Thursday night, and Secretary Hull said the represen- . {the parliamentary dinner from tations were made on humanitarian | [be undertaken under the

newspaper reporters in the detectives of the homicide squad Wednesday, with the exception of Secretary Hull said the protest

The Government based its case on Office of Sheriff John A. Loustalot. left suddenly today on a mysterious the state dinner. will be dropped. Was in line with the well-known

the reported use of WPA labor to

vately owned. This, WPA officials tesified. would constitute diversion of WPA labor from an approved project. During the closing arguments, defense attorney Arnold Cronk in-

tas : rm peti mission to Brooklyn, N. Y., to in- The functions arranged for the American abhorence of the practice ; Al

asserted that if any elevation is to|

charge of the Administration, shall 1939 (not be discriminated against in

Thursday to Fridav. grounds, upon instructions from the amendment to the State Grade | changes.

For the first time, the President

His lips still bearing black marks PHILADELPHIA, May 13 (U. P.).| Under the rearranged schedule, State Department. The represen Hancock County Sheriff Separation Law, the City would | Te Te ae

from the tape. Mr. Putnam talked —Capt. James Kelly and three ace the original capital program for tations were made orally. have to make the first move.

of the so-called undistributed profits

Suit May Be Dropped tax—which seems to be the particus proceedings will be carried |lar bugaboo of business—but he ate

rest “ah § Os i ; J ; : . ris [taches a big “if.” vestigate “an important new devel- other days of the visit will be ~on- of bombing defenseless men, women Workmen today proceeded with on under the new provisions of the | g

clean bricks, crush stone and repair rf : 1a in rind rati a machinery which it alleged was pri- DRIZILE SOFTENING opment” in the mass murder for in- tinued. and children from the air. the construction of a new dog rac- !aWw Which has reduced elevations Profits Tax Cut Last Year surance case. Dispatches from the liner re- Secretary Hull pointed out that [costs to the railroads from 50 to 20 |

New York dispatches said they ported she was halted completely at the bombings were carried on ing plant on Road 67 east of Mc-

‘per cent. The law provides that | This is that, if repealed, Congress

persons of undisclosed identities. |sirens blowing. The fog lifted for fied. whether attempts would be made to| (Continued on Page Three)

It was believed that the trip was|an hour yesterday afternoon and| He noted the bombings were car- pq oc

sisted that at the tims the bricks Commission Rules Show ports that nine murders traceable to|hy 10 p. m. (Indianapolis Time),

were cleaned hy WPA laborers, they

City. Evidence was introduced purport-| ing to show that Mr. Mix bought or was given old brick buildings and

limestone slabs by Kokomo com- r.

aie a ; i ie the Ip Thi : i. sville S i y + in- | provide some other means of prePREAKNESS TRACK arrived there accompanied by two times, then proceeded slowly, her against cities which were unforti-|Cordsville as speculation arose the City pay half of the remain {provide Jone other eats ot pres

——ier cue through withholding dividends, which was one of the original objec

taken in connection with re -| ; ried out against populations which | . ; v ( 1 cent re-|she went ahead at full speed, but were not iow Be ae in the! A Cincinnati man was reported ‘FAIR AND WARMER J [tives of this tax, another being to ; J

[the merchants of death had been | ghe was motionless again. She then Sino-Japanese hostilities. as representing the corporation

land Jersey City, or on information| gyth the King and Queen walked the practice of bombing civilian, Sheriff John Dent of Hancock] (furnished by a politician and an {pe deck frequently despite the bad Populations from the air and in- County, in which the track is locat- | BULLETIN ’ {elderly fortune teller detained last | weather a ; |cluded specific references to the re- ed, said he had heard reports that | night. peated air raids on Chungking, as attempts would be made to operate

ALTIMORE. May 13 I : ; bobites a BALTIMORE. May 13 Capt. Kelly and the detectives Special Autos Waiting

).—All chances for a fast

panies. Numerous WPA workers track for the running of the ‘have conferred frequently within the’ A< their Majesties entered Cana-|Chow in all of which places numer- not be permitted.

testified they chipped mortar off Preakness disappeared this (past few days with Morris (Louis! qian waters. the program for their |Ous people were killed. Newspaper

these bricks or crushed the stone afternoon when rain began {the Rabbi) Bolber, 45, self-styled our had been worked out to the dispatches reported more than 2000| police said he had heard similar |

and repaired machinery. U. 8. Dis- falling steadily. Indications | Psychiatrist” and accused of being last-minute detail. The plans for|dead in Chungking alone as a re-| rumors and that “they are spending | trict Attorney Val Nolan, the Gov-| were that the footing would (O0€ Of the leaders of the arsenic|protecting and entertaining them sult of the air raids. a lot of money out there.” ernment’s prosecutor, then in- pe sloppy. : (ring, and John Cacopardo, 27, overlooked no eventuality. |

troduced as evidence many claims

for payment by the City for] BALTIMORE, May 13 (U. P).—|tify at the trials of a relative, Her-| fitted with nonshatterable glass, Hurt 1000 M HOLLYWOOD, May 13 (U. P).| the materials or rental of equip- A drizzle of rain fell on Pimlico|man Petrillo, and Mrs. Carina Fa-|were ready for them at the Quebec | (1UP ore

{brought here from Sing Sing to tes- Special autos of reinforced steel, Chunking Raids SANDY GETS MEASLES

—Sandy Henville, the latest Holly-|

ment |track today as mighty Johnstown Vato. \dock. The names of guests at every| SHANGHAI, May 13 (U. P.).—|wood actress to be given star rank- | — : € Lincoln F. Record, a defendant|awaited his drive toward America’s, Police continued questioning Jo- | hotel and roominghouse in Quebec |Japanese airplanes in successive|ing, was stricken with the measles | ~Unseasonal cool weather will con- | (Continued on Page Three) and former Kckomo WPA project | iriple crown against five rivals in| seph Peppe, 37, Democratic district have been given to police. raids on the Kiangpei and Tans-|today, much to the embarrassment tinue tonight, but the mercury will| sme eee ee supervisor, testified that he made the historic Preakness Stakes. leader, concerning reports that he| First to greet the royal guests zesze areas of Chungking, the capi-|of the studio which must delay her|climb

rental” but “in reality they were an application by track officials to the names of likely victims for the | King, who will go aboard and| may total 1000, Chinese reports said |said the 1-year-old baby was|will

claims for my services to the City.” | limit wagering to win and place murder gang. {lead the party ashore ‘today. not seriously ill.

| bets.

PRISONER ESCAPES ioiheaviy on a fod or show bois HOUSEHOLDER, UNHURT IN CRASH, THANKFUL FOR CREEK . . . . on the Johnstown-Gilded Knight AT LONG HOSPITAL Ng shift in weather came as William Woodward's Challenge was

The action was requested be-

State and City Police sought a declared out of the going because Pendleton Reformatory prisoner who! pf a cough, and the field was re-| escaped today from Long Hospital,| quced to five colts and a filly, the where he had been a patient, clad|gmallest in 20 vears. : only in pajamas and robe. | The rain was light but steady. The prisoner was Eugene Riensch,| yntii the skies darkened it was

22. Hospital attendants said he was! only

a question of by how many

brought to the hospital three weeks|jengths Johnstown would sweep off

ago for a mastoid operation and| with was to be returned to prison today. ile

TIMES FEATURES they

both

the 850.000-added prize in the? and 3-16 classic. But railbirds

recalled that the Kentucky Derby victor is a hard-track horse and

revamped their line accord-

ingly.

ON INSIDE PAGES LY

| Wheatley Stable's Gilded Knight,

L. Brann's Chailedon and

proven factors when the going

Broun .. 10) Mrs. Ferguson 10 is slippery, boomed into prominent : Churches .... 5! Music .. 13 consideration as conditions changed. Clapper ...... 10 Obituaries ... 7|The threat of a heavy downpour left | Comics 14| Pegler ....... 10/the status of King Ranch’s Ciencia, | Crossword ... 7|Pyle 9 Saratoga Stables’ Volitant and A. G.! Curious World 14|Questions .... 9 Vanderbilt's Impound unchanged, Editorials ..., 10| Radio 13 but it appeared a definite detriment Financial .... 13|Mrs. Roosevelt 9|to Johnstown because of the Belair |

Flynn .....0 10 Scherrer ..... | abnormally long stride.

Forum ....,.. 10|8erial Story 14

r 1 Ciencia was given a change of ! " y rin, ol It 14| Society 4-5 jockeys when Trainer Buddy Hirsch Ronney Householder got a surprise “dunking” in chilly creek waters at the Speedway yesterday—but Householder’s car skidded down sideways, tore out 25 feet of which appears today on ndpls. ... 3/Sports ...... 6-T/announced Irvington Anderson he's mighty glad the creek was there. It probably saved his life. In his spanking new Leon Duray racer, wooden retaining wall and rolled over twice. It finished bottom side %

force big corporatinons to disgorge

their surplus profits to increase pure

The undistributed profits tax was cut down to a bare skeleton in the

had become the property of the Bets Must Be Accepted. (uncovered in Brooklyn, Manhattan |yas 960 miles east of Cape Race., The protest was general against building the track. | IS SUNDAY PROMISE chasing power.

[last Congress, leaving only a 21; per

|well as Swatow, Ningpo and Foo- it. He added that gambling would Topcoat Weather to Stay cent tax if all dividends were

withheld, with a graduation downe

Capt. Walter Eckert of the State] Tonight, Bureau Says. ward for percentage distribution.

The present revenue law contains » provision (Section 102) designed

LOCAL TEMPERATURES to prevent withholding of surpluses

51 10a. m... 59 to avoid taxation, which carries tax

m 52 11 a. m.... 61 |penalties, 25 per cent under $100,000,

‘om... 55 12 (noon) . 63 |and 35 per cent above, for amounts MM... 59 1pm...

65 withheld to avoid taxation. The Treasury had considerable

somewhat tomorrow, the| James Watson | Weather Bureau said. The weather OREIGN SITUATION

fair, too, the Bureaus DARES STOCK TRADE

| promised.

cr — er — | en.

TAKES HIS QUNKING HEAD FIRST, .. . . . |Z" YOR% Mey 13 (U. Plu

| pared to the second smallest total | for a short session since last June, as uneasiness over the foreign situe ation held the list in a narrow rut, Virtual settlement of the soft coal strike failed to influence any demand. Apprehension over the European situation centered on reiteration of Polish determination to protect its interests and subsequent indications Germany may be planning some week-end move. There also was some fear that Premier Mussolini may further complicate the Euro pean outlook by presenting Italy's demands upon France in a speech tomorrow,

What Makes a 'Good Mother!

1500 children helped Dr. George W. Crane, noted psychologist, prepare the rating scale

Jane Jordan. 9 State Deaths. Tl would replace Carroll Bierman. No| he was tearing around the oval at 118 miles an hour when things began te happen—“walking” the race | up, dumping Ronney head first into the creek. Officials said the car Page 9. ERT

Movies ....... 8/Wiggam ..... 10'reason was offered for the switch. * drivers call it—on the southwest turn. | probably would be ¥

in time for qualification trials, _