Indianapolis Times, Indianapolis, Marion County, 18 December 1940 — Page 1

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VOLUME 52—NUMBER 242

Bitter Debate Looms Over ED.

WEDNESDAY, DECEMBER 18 1940"

Entered as Second-Class Matter ¢ at Postoffice, Indianapolis, Ind.

PRICE THREE CENTS }

er to a British Arms

INVASION FEARS MOUNT IN ENGLAN

THIRD PROTEM. JUDGE RULES IN

PAST 24 HOURS|

Lipman and Steers Alternate |

In Roles of Attorney And Jurist.

The judge pro tem. merry-go-

Ball Under Fire

round in Municipal Court went into .

high gear today with three pro tem.

judges sitting on tne same bench|

in less than 24 hours. Yesterday,

Pro Tem. Judges Silas a

Lipman and Edwin K. Steers) #8

swapped places on the bench while they took turns defending clients charged with serious traffic violations. One client was discharged, the other’s case was continued. Today, the third pro tem. judge to sit on the Municipal Court 4 bench since noon yesterday, George G. Rinier, sentenced a speeder to the maximum penalty—$100 and costs and 10 days in jail—in a sudden reversal of Municipal Court pace.

Substitute for Karabell

The three judges, each handling some traffic violations, were pinchhitting for Judge Charles J. Karabell, who is ill. Judge Karabell is the municipal judge appointed to the post. The other three are his appointees. "In Court 4 yesterday, Pro Tem, Judge Lipman worked the bench in the morning while Pro Tem. Judge Steers took over in tlie afternoon. That gave Mr. Lipman an opportunity to defend a client in a hitrun case in which a policeman was the victim. A few minutes later the roles of the two attorneys had changed. Pro Tem. Judge Lipman was back on the bench and Mr. Steers had stepped down to defend one of his clients charged with reckless driving. It was all pretty baffling for Deputy Prosecutor Francis E. Thomason.

Thomason Loses the Day

At one moment, Mr. Thomason was arguing with a defense attorney. The next minute, Mr. Thomason’s opponent was a judge. And the former judge was a defense attorney arguing with Mr. Thomason. . Mr. Thomason lost the day to the two judges. The hit-run case was continued and the defendant on the reckless driving case was discharged. Today, Mr. Thomason hadn't a word to say about the situation. -He was acting as a judge himself. All morning he sat on the Superior Court 2 bench, pinch hitting for Judge Herbert Spencer, who said he was trying to get rid of a cold. But Pro Tem. Judges Lipman and Steers had plenty to say.. Mr. Lipman asserted he saw nothing “unusual” about the Municipal Court switch. ‘An attorney who has a client in court can’t act as judge, he said. ‘They're Never Ready’

‘Mr. Steers said the same thing. He added that he had made extensive preparations to try his case yesterday afternoon and consequently objected when Prosecutor Thomason asked for a continuance. The prose-

cutor based his request for a con-|,

tinuance on the fact that he was not prepared for the trial. “The prosecutor's office should have been prepared,” Mr. Steers said. “ “It was the State which had the case continued until yesterday because they were not ready. They're never ready.” Meanwhile, the action of Pro Tem. Judge Rinier this morning in giving.a speeder the limit elicited this comment from Traffic Capt. Leo « Troutman: “With sentences like that, these speeders will slow down.” The man sentenced was Waldo S. (Continued on Page Three)

RCA TO EXPAND HERE

WASHINGTON, Dec. 18 (U. P.) — Secretary of Navy Frank Knox today announced award of $2,370,034 to the RCA Manufacturing Co, Camden, N. J., for expansions of its plants at Camden and Indianapolis. The Navy said both expansions were necessary to produce needed radio equipment.

DIES SUBPENAS FIVE WASHINGTON, Dec. 18 (U. P.).— Rep. Jerry Voorhis (D. Cal) announced today that the Dies Com‘mittee has subpenaed five “important’ witnesses from the aircraft industry in southern California to appear at a secret hearing Friday.

TIMES FEATURES ON INSIDE PAGES

Clapper vsess 19 Mrs. Ferguson 20

srs

Mrs. Roosevelt 19 22| Santa's Secret 27 Serial Story.. 28 Side Glances. 20 Society ..22, 23 e Jordan.. 23|Sports .... 24, 25 Johnson ..... 20,State Deaths. 13 Movies 1oiiss 1

Forum Gallup Poll... Homemaking. =

George A. Ball . . . Aims of Foundation questioned.

AVOIDS TAXES, SENATE IS TOLD

Foundation Was Created to Escape Payments, Committeemen Say.

By DANIEL M. KIDNEY Times Staff Writer. WASHINGTON, Dec. 18.—That the George and Frances Ball Foundation was created by George

A. Ball, Muncie manufacturer, to avoid income and inheritance tax payments on $5,000,000 profits made in the Van Sweringen railroad holding company deal was charged in a report to the Senate today. The report was signed by Senator Burton K. Wheeler (D. Mont.), chairman, and ‘Senator’ Harry 8. Truman (D. Mo.); member, -of the Senate Committee on Interstate Commerce which investigated the entire Ball-Van Sweringen transaction. pr

Today's report was outlined in the |

opening paragraphs as follows: “An earlier section of these .reports described the purchase at auction by George A. Ball of Muncie, Ind.; -of large blocks .of Alleghany Corp. stocks and bonds on Sept. 30, 1935. It told of his creation of a superholding company, Midamerica Corp., in which to lodge these securities.

Describes Sales

“This report describes the steps he took to create another superholding company and to use it in selling the securities in such manner that he and his family might retain control of the profit he made on the purchase, without paying income tax on the profit or inheritance tax on the wealth after his decease.” Admission that such tax avoidance resulted from creation of the Ball. Foundation for “religious, ed-

ucational, and charitable” purposes

was obtained from Frank B. Bernard, Muncie banker, who aided in the setup, according to excerpts of testimony before the committee which are incorporated in the report. “Although the emphasis, according to- Mr. Bernard, was on the character of the prospective buyer of control of the vast railroad network, a sale of the securities would inevitably bring .a large profit to Mr. Ball,” the report states.

Claim 5 Million Profit

“The actual profit, when he made the sale, was slightly more than $5,000,000. The sale price constituted a profit of 1200 per cent on all the Alleghany securities sold. “On the controlling block of Alleghany common stock, taken by itself, the profit was 1500 per cent. As noted heretofore, Mr. Ball held these securities through Midamerica Corp.; increase in their market value above what he paid for them (Continued on Page Eight)

RECORD LEVEL FOR EMPLOYMENT SEEN

U. S. Statisticians Say 1940 Rate to Exceed 1929.

WASHINGTON, Dec. 18 (U. P.). — Labor Department statisticians predicted today that average industrial employment for 1940 will be the highest in history. They said an expected increase of 200,000 in non-agricultural employment in November and December probably would bring the average for this year to about 37,000,000. This would surpass the 1929 record high average of 36,710,000. Credit for the increase of employment, in the opinion of Labor Department officials, goes to the defense . program. A spokesman for the C. I. O. disputed the unofficial estimate of Labor Department statisticians, however. . He declared that there would actually be a million fewer industrially employed = persons in 1940 than in 1929. American Federation of Labor economists said

they thought the Labor Department estimates. were “probably correct.”

‘that the Dec. 31

REVOLT GROWS AGAINST AUTO TAG DEADLINE

Four Cities Ignore Stiver’s Enforcement Warning, Pledge Leniency.

the Dec. 31 auto tag purchase deadline gained momentum today with the New Castle police chief and the Brazil mayor promising motorists

# | in their cities a “reasonable” exten-

sion of time to procure the new plates. Previously, the Logansport chief of police and the Connersville City Council announced leniency to motorists who did not purchase their license plates before the deadline. The protest against the deadline appeared likely to spread to other cities despite the warning by State Safety Director Don F. Stiver yesterday that State Police would begin arresting all motorists using 1940 plates on and after Jan. 1.

Hear Other Towns Protest

Officials at the State House said that they had heard rumors that similar action would be taken by police chiefs in “some other towns.” Mr. S8tiver said that he had no comment to make on the action nf the officials of the four cities. He said, however, that the members of the force would enforce the law, and the law is that all motorists found with 1940 license plates and driver licenses afier Jan. 1 are subject to arrest and conviction of 4 misdemeanor. It was pointed out, too, that State Police have the right to make arrests any place in the State -and that they can make arrests in any city whose own police officers have promised leniency. Fri ‘ Finney, commissioner of thé ‘Bureau of Motor Vehicles, said he had no comment fo make on the situation since the matter of enforcement of the deadline was up to the State Police. State officials believed it unlikely that “any amount of protests” would cause Governor Townsend to extend the déadline as he has done in previous years. . Warned to Stay in Town In announcing several weeks ago deadline was final, the Governor pointed out that he did not feel that he should

‘|extend, it since the employment

situation was such this year as to make an extension unnecessary. Governor-Elect Henry F. Schricker has also announced that he does not favor an extension. Police Chief Thomas Lockhart of New Castle warned New. Castle drivers to remain within the city limits to avoid arrest by State Police. He did not specify for how long he would extend the deadline. Mayor Thomas E. Tiffee of Brazil said that the City Administration has decided to instruct the Police Department not to make arrests “until - a reasonable time has elapsed.” Pointing out that Governor Townsend has granted 60-day extensions for the last three years, Mayor Tiffee said he saw no reason why the same concession should not be granted this year.

IT'S WARMING UP, BUT IT MIGHT SNOW

Hoosier Weather Has: It All Over California.

LOCAL TEMPERATURES

6a. m ...34 10a. m. ... 7am 33 Nam .. 8am . 33 12 (moon)... 37 Sam ...33 1lp.m...38

The United States of America, Indianapolis included, is in for some warmer weather, according to the men who are paid to know. Locally, Meteorologist J. H. Armington said we might get occasional light snows tomorrow afternoon. He added that it will: be cloudy tonight and tomorrow and somewhat warmer tomorrow. . The way he sees it, the lowest temperature will be about 25 or 30. Out in. California, where people go to get away from “this nasty Hoosier - weather,” it’s raining heavily. . Ha, Ha!

34 . 36

“ONE DAY THIS WEEK, writes an Indianapolis woman, “I saw a young man come out of a downtown department store with two little boys and get into lothe-A-Child car.

joy on those children's faces a. the way they grasped the bundles they carried in their arms. “I am inclosing $5 in the hope that it will help to bring some joy to some needy child.” The Indianapolis Times thanks

Fords a story we want to bring

- A revolt against enforcement of

Mrs. Reel an YESTERDAY Mrs. Raymond R. Reel went to a store to buy some shoes for her 19-month-old-son, David. On the way back home, she noticed for the first time a fire box a bleck from her house. At 5 a. m, today the knowledge of the box’s location saved her home at 1720 Thaddeus St.—and David. : “A crackling. noise” awakened Mrs. Reel this morning about 15 minutes after her husband, -an

. . . a trip to the store saved Billiard Co., had gone fo work.

employee of the Kings Indiana |

She Made a Lucky Trip

eir home,

“The bedroom wall was glowing all over,” she said, “and I ran out of the house and pulled the alarm.” Mrs. Myrtle Dugger, who lives in the other half of the double, aided .in carrying David into the

kitchen away from the intense

heat. Just firemen arrived, he The fire ies believed. to have sae from a defective smokepipe.

WALTER-LOGAN BILL IS VETOED,

Invites CORIraversy, F.D.R. Says; Hoosiers May Vote to Over-ride.

WASHINGTON, Dec. 18 (U. P.).— President Roosevelt today vetoed the Walter-Logan Bill fo. increase the authority of the courts over administrative agencies, because he said it. “would produce the utmost chaos and paralysis in the administration of the Government at this critical time.” “I am convinced that it is an invitation to endless and innumerable controversies at a moment when we can least afford to spend either Governmental or private effort in the luxury of litigation,” Mr. Roosevelt declared.

“Today, in sustaining - American ideals of justice, gn ounce of action is worth more than a pound of argument. Mr. Roosevelt’s views were communicated to Congress in a 1600word veto message to which he appended a 3000-word analysis of the

Jackson. A two-thirds vote in each House would be required to override the veto. A roll call just. before reading of the President’s message showed 287 House members present. An hour’s debate on the question of. overriding the veto was in order, to be followed by a vote. The Senate did not meet today.

". Since only one Hoosier Congress-

man, Rep. William H. Larrabee (D.) opposed the bill, the motion to override the veto likely will be supported py both Democrats ‘and Republicans. in the Indiana House delegation. : Mr. Roosevelt said that the objective of the measure was ‘“profes=sedly the assurance of fairness in administrative proceedings” with which there would be universal agreement. But he was convinced that “in reality the effect of this bill would be to reverse and, to a large extent, cancel one of the most significent .and useful trends of the 20th Century in legal administra-

cannot forget the look =

the letter writer for putting into °

hom Its the story. of children who :

‘ltion.”

live in homes that let in cold air on all sides Homes that usually are heate by a single stove in one of {fle rooms. Homes where

the 'kKHO Shing ahout the world’s ills and unemployment. But even their innocence cannot hide from them the fact that it is an unhappy world. Too often they have no underwear and, even in this kind of weather, they are forced to go to school in thin little summer coats, The smaller ones some-

times cry. The larger gt

childrén who

bill by Attorney General Robert H.

in her school work and

Planes Abardon Manhunt in Hills

MIDDLESEORO, Ky., Dee. 18 (U, P).—The search for Clyde ' Buchanan and his. sen Clyde Jr., wanted for slaying a deputy sheriff and wounding two other officers, shifted south today on a report that the fugitives were: not hiding out in the mountains. Airplanes .which had circled over - the ranges where Virginia, Kentucky and Tennessee join in an attempt to spot the fleeing pair and blast them out with hand grenades were called off.

PASS NEW ELECTION LAWS, COX URGES

Sets Formal Hearing on Recount for Friday.

Repeal of Indiana's election laws and enactment of others “that can be understood,” wére recommended by Circuit Judge Earl R. Cox today at a preliminary hearing on Marion County’s 21 recount cases. “Most of the election laws on the books are confusing and not understandable,” he said. After Recount Commissioners filed their formal report on tabulations of votes, Judge Cox reiterated | previous charges that many of the ‘county’s voting .machines are “mechanically defective.” “There will be recounts after every election if the old machines are not rebuilt or new ones purchased,” he warned. “I'm putting that question up to the people because it will mean a big outlay of money, but it will be a saving in the end.” : In their report to the court, Recount Commissioners said that totals on several voting machines appeared to be erroneous. Joseph Sexton, Democrat, who was defeated in a State Senate contest by 51 votes, presented Judge Cox with. affidavits from 331 voters ‘in one precinct who swore they voted for Mr. Sexton. The voting machine in that precinct showed only 267 votes for Mr. Sexton. He asked Judge Cox for permission to bring into court each of the 331 voters who signed the affidavits. Judge Cox set Frida for a formal hearing.

To Clothe-A-Child: “Never Can | Log Their Joy’

are ashamed of their Clothes, They try to miss school,

THOSE ARE THE YOUNGSTERS The Indianapolis Times Clothe-A-Child campaign is designed to help. (Clothe-A-Cfild is far more than a Christmas present. A | Yesterday, for Histance; a 12-year-old girl, ‘large for her age, came ' into ' the 'Clothe-A-Child office. Her size had made her conscious of her lack of proper clothing. She-was falling behind

SHORT-OF-WAR FOR MAXIMUM

Cargo Ships Bulk Large in Program but © Naval Craft Are Excepted.

By LYLE C. WILSON United Press Staff Correspondent WASHINGTON, Dec. 18.--Short-of-war aid to Great Britain is headed today toward its maximum limits. President Roosevelt is exploring a program of paying for and lend-

vessels. Merchant vessels bulk large in the contemplated program. Any| vessel, airplane or munition advanced on loan would be covered by a mortgage. ' Mr. Roosevelt is confident that that could be done without increasing the danger of the United States being involved in war. Meanwhile, Republican Congressmen blamed the President for much of the lag in the defense program and demanded that he name a boss for the nation’s rearmament program. Mr. Roosevelt called an afternoon conference with top civilian chiefs of the War and Navy Departments.

Plan Invites Debate

Mr. Roosevelt revealed that there are two or three cases of industrial non-co-operation which are under investigation in connection with his power to take over such facilities to obtain the maximum national defense effort. The lease-loan olan invites national debate and bitter Congres-

“| sional controversy. It was outlined

shortly after Secrgtary of Treasury Henry Morgenthau Jr. informed the House Appropriations Committee that British officials say they cannot order further armaments here without financial assistance. Scattering Congressional reaction foreshadowed the dispute to come if Mr. Roosevelt seeks from Congress next month the legislation and appropriations which would be! Heossary to put the plan into efec He said he sought to remove the dollar sign as a factor in further aid to Great Britain. He dismissed as __banal—commonplace or trivial —the idea that the Johnson Act or Neutrality Act should be repealed to permit loan of funds to be spent here by the ‘British. He considered the suggestion of outright gifts as almost as bad, alough he said it might come to

VanNuys ‘Asks Base Titles

Asserting that the best defense of the United States is the continued success of Great Britain in defending herself, Mr. Roosevelt outlined the program which would expand our munitions production and give Great Britain’ a share of it on loan or lease. He excepted naval vessels in response to a direct question, although the late Lord Lothian, British Ambassador, had been pressing for naval aid. Rep. Sol Bloom (D. N. Y.) and Senator Sherman Minton (D. Ind.) gave the leaserloan plan speedy indorsement. Rep. John M. Taber (R. N. Y.) said he would prefer a money loan as “less likely to get us into war.” Senator Tom Stewart (D. Tenn.) said he would favor the plan provided it did not impair our own defense. “I think I speak with authority,” said Senator Frederick VanNuys (D. Ind), “when I say that any (Continued on Page Three)

Pupils Preparing For Yule Holiday

IF THERE ARE 75,000 fidgeting children in Indianapolis today, there’s a reason Christmas vacation starts Fri-day-in public, parochial and pri- | vate schools, and will last until Jan. 6. The children are busy winding up one of the busiest weeks of the year. Christmas programs are being held in nearly every school and youngsters are adding the Suisking touch to gifts for par

Ne ied Christmas trees twinkle

in the front hall of nearly every schoo)

becoming excessively shy. A Times shopper took the child to the store. When she came back, her family stared in astonishment. Clad in a trim, blue coat, a neat dress, | new stockings and shoes, she was smiling in confidence, no longer an unfortunate schoolgirl but now a young lady. . . You who contribute to Clothe-A-Child have every right to be proud of cases like that. You are building the finest of foundations under your community—

ghe was. .-.-

HELP HEADING |

ing or leasing to the British ‘all|. types of armaments except naval| 3

Going Home

Princess Stefanie—etc. Ces Hungary next stop.

NAZIS' FRIENDS ORDERED OUT

Hungarian Princess and German Student in Denver Lose U. S. Permits.

WASHINGTON, Dec. 18 (U. P.), —A Hungarian princess who is a friend of high Nazi officials and a young. German student at Denver University today faced the possibility ‘of long voyages across the Pacific: Ocean and Asia to comply with a Justice Department order to leave the United States. Unless some other country offers them refuge, they must either return to the country issuing their passports—Hungary and Germany---or face deportation proceedings. : Permits Not Renewed Attorney General Robert H. Jackson anounced last night that Princess- Stefanie Hohenlohe-Walden-burg-Schillingsfurst | of. Hungary, said to have been the leading Nazi hostess in London prior to the war, and Karl Scheuring, 18-year-old Nazi sympathizer, had been denied applications for renewal of their permits to visit this éountry. The Princess was ordered by the Immigration and Naturalization Service, at the request of Mr. Jackson, to'leave by Saturday; Scheuring yD Dec. 26. Referring to Scheuring’s statement Denver that no ships are going to Germany, it was pointed out that ships still are crossing the Pacific. Use of the trans-Atlantic clipper by Scheuring. was impossible since all flights stop at Bermuda, a British possession. It was believed thats the’ Princess, too, would avoid such a stop. . Princess’ ‘Plans Uncertain’ Scheuring told reporters’ in Denver that he would return tb Germany “if that is the order. but it looks like I will have to' grow ‘wings and fly.” He said he might sail on a Japanese boat. The Princess’ plans were not known, but it was reported in San Francisco that she was “somewhere in the San Francisco Bay area,” presumably preparing to leave the country. The princess entered the United States on Dec. 22, 1939, on a visitor’s visa from London. | Scheuring came here on July 20, 1939 for a temporary visit, but remained as a student.

SUB ATTACK HINTED ON BRITISH CONVOY

Send Distress Signals.

NEW YORK, Dec. 18 (U. P.) — Possibility that one or mors Germ an submarines were attacking a British convoy was seen today when three ships in the North Atlantic sent cistress signals which were intercepted by Mackay Radio here. The distress calls indicated the vessels were about 400 miles north=west of ‘Scotland.

LONDON, Dec. « (U. PJ— Stockholm said on that = the

.| Swedish steamer Gwalia, 1258 tons

had been sunk with a "loss of 17 lives. A . :

go) 21%

forces reported.

Three Ships in North Atlantic,

FASCISTS FLEE

BEYOND BARDIA IN AIR ATTACK

Storms Slow Greek’ Gains; Communists in London * Protest Food Prices.

_ By JOE ALEX MORRIS United Press Foreign News Editor | British and Greek armed’ slow but

steady progress in offensives

|against Italy in Libya and Al |bania today, but London dis-

patches hinted = persistently that fears of a new and greater German invasion plan ‘were mounting in the British | capital. Operations of the British Imperial forces in Africa appeared to be exe panding, with the chief attacks: by land, sea and air forces directed

coastal base at Bardia but with indications of a new thrust at Italian

Selassie can rally rebels against the Fascists. R. A. F. planes were leading the aitack on both the Albanian ang Libyan fronts, where they fiercely bombed Italian forces along the Mediterranean Coast, Siaghed at the main Italian bases and reported

Bardia toward Derna. -

Report 2 Divisions About two Italian divisions were

«¥

desert attack. The threat of a German invasion continued to worry British officials even in mid-winter and their diffi culties were intensified by pro ; organized by Communists, increased food prices and'a shortage of milk in London. A rowdy scene occurred at ‘the Ministry of Food when a group of women protested to a - spokesman, demanding “more ‘and cheaper milk.”. The German radio propaganda, quickly magnified the demonstration into food riots. - 3

Better Raid Shelters Asked

In the House of Lords, however, there were grave warnings b y the: Bishop of Birmingham and hers against the Government’s: program: for protection against air raids, . The British people are showing great endurance, the Bishop said, bu failure to provide better protece tion than has. yet been indicated’ will be received in the, industrial areas with grave ‘misgivings. There also was a’speéch in Berlin: —by Adolf Hitler, who addressed 5000 cadet officers of the air force, Army and Storm Troops, encourage ing them to the tasks that lie ahead: The text: of his speech was made public but it emphasized German as well as the British ats tention is directed primarily toward a coming climactic attempt to smash Britain. Both Rome and Berlin 3 Sotto res ports that German moved to Italy in an FB bolste the Fascist defenses in Albania Libya. The Nazi pees em emp pe that Germany “shoulder 0 (Continued on Page Three)

MOVING OF INFANTRY

WASHINGTON, Dec. 18 (U, P.) ==. The Army is training air infantry troops with a view to moving divisions of ri Migs o visions—by transpoz t wag, learned today. 2 Training of air infantry is now Soncenrated at Ft. Sam Houston,” ex Officers estimated it would take? 600 transport planes to move a“ streamlined division of 10,000 men and equipment — rifles, machine guns, anti-tank guns, etc.

TRADERS ARE CAUTIOUS

NEW YORK, Dec. 18 (U. P.). == Traders were cautious on the stock market today and prices moved ire:

: regularly in light turnover.

ON THE INSIDE— ;

Ernie Pyles ship enters a submarine zone . Gifts for Britain not convoys—Clapper

Ethiopia if exiled Emperor Haile

BY AIR IS PRACTICED

reported bottled up ab Bardia by the British circling tacticsin 53 % tanks and mechanized units led

v SESE de Er are Te

Se PRE EE as Sls i a

that Fascists were retreating from = |