The Courier-Journal from Louisville, Kentucky • Page 1

THE CO URIER-JO URNAIJ WISHES YOU HAPPINESS DURING' 'AW THE NEW YEAR' fife WHASPage 6 Section 6 64 Pages 6 Sections VOL. CLXV NEW SERIES NO. 24,838 LOUISVILLE, FRIDAY MORNING, JANUARY 1, 1937. SECTION 112. PAGES TTTTJ CVXITQ TRAINS ANI BFTOVB KtiriXJ.

THIRD ZONE. FIVE tt.NTS. iii- IVeit? Year Gets Welcome Phone Rate Roger Bafoson Predicts Ordered In City Louisville to Lead U. State Total $525,000 Recovery During 1937 Ken tucky'slBar gaining Babson Survey Am Cf in jsP 'J oca' Highlights of Roger W. -Babson, noted economist, made a special survey of conditions in Louisville for The Courier-Journal.

Some of the highlights of his findings follow: Louisville has one of the brightest outlooks of any American City for 1937. General business in 1936 averaged 10 per cent over a year ago. Kentucky tobacco crop should continue to bring prosperity into Louisville area. Holiday sales have been the best in years. This trend should be maintained.

During the past year the foun dations have been laid for a period of booming business. In 1937 I look for the first year of real prosperity since 1929. I feel that your city is only beginning to realize on its possibilities. Louisville is already on its way to a building boom. Other industries in your city have encouraging outlooks.

I estimate that Louisville will run considerably ahead of the remainder of the country. 1 Jimmy Coulter, 214 Shawnee Terrace, typifies the jS'etv Year ipirit, surrounded by a bevy of beautiful girls at the Kentucky Hotel. Left to right IVora Duvall, Doris Johnson, Betty Coulter, Jimmy Coulter, Marie. Baumen and Mar jar ie Elrod. I Job Risk Law Is Approved State Among 35 Okehed By Federal Social Security Board.

The Courier-Journal Washington Bureau. Washington, Dec. 31. The Social Security Board today ap proved the Kentucky unemployment compensation law as meet ing the requirements of the So cial Security Act. The Kentucky law covers approximately 275,000 employes, the board announced, and the total number of wage earners now covered by approved unemployment compensation laws is approximately 17,000,000.

Thirty-five States and the District of Columbia now have laws approved by the board. As the result of this approval, employers who are subject to the Federal tax on employers of eight or more levied under the SociSl Security Act, may get credit up to 90 per cent of that tax for the contributions they make to the State unemployment compensation fund for employment as defined for the purpose of the Federal tax. The Kentucky law is a combination of the pooled-fund and employer-reserve systems. Employers will contribute five-sixths of their contributions to the individual reserve accounts and one-sixth to the pooled fund. Employes to Pay.

The law applies to employers of eight or more, persons 1936, but beeinnine with 1937 it will Apply V1w -imptips more persons. Employes ui Kentucky will be called upon for contributions to the unemployment compensation fund. Only rune other States exact contributions from employes. These are Ala bama, California, Idaho, Indiana, Louisiana, Massachusetts, New Hampshire, Rhode Island and New Jersey. The employe in Kentucky con tributes nothing for 1936, but in 1937 and thereafter he will con- Boy's Kidnaper Legislation Is Law Paper ReportsjGapf'ls pftqd rrf Photo, by Fred W.

Parker. Loraine Tegel, ftl9 'Orgati- tttul Con Bensing, 1518 Beech, as they ushered in the ISete 'ear over one soft drink at the. Seel bach Hotel. Old Man 1936, a Splendid Chap In His Day, Is Tossed In Street But His Erstwhile Friends Give Him a Fine Fare- well Before Turning to Younjj 1937. 9 rlea of Union Is Rejected General Motors Opposed to Nation-Wide Action On Issue.

Detroit, Dec. 31 0J.R) William S. Knudsen, executive vice president of General Motors Corporation, tonight turned down a United Au tomobile Workers request for Na tion-wide collective bargaining. Knudsen, addressing himself to Homer Martin, U. A.

W. A. president, repeated an earlier decision that all bargaining in behalf of General Motors workers should be conducted with managers of individual plants. Would Vacate Plants. Knudsen said, as a prerequisite to collective bargaining: "I would suggest as a first preliminary step toward bargaining with the plant managers that you order your members to vacate the plants as a condition precedent to a discussion of any alleged grievances." Sit down strikers were characterized by Knudsen as "clearly trespassers and violators of the law of the land.

We cannot have bona fide collective bargaining," he said, "with sit down strikers in illegal possession cf the plants." The letter v.s in reply to a telegram jesterd in which the U. A. W. A. executive expressed impatience at delay and urged an immediate general conference with a view to uniform agreements covering General Motors' plants in thirty-five cities scattered through fourteen 27,00 Out in 9 Pla4su Meanwhile, thre sit-downs In General Motors plants today had brought the total of the company's employes on strike to 27.C00 and the number of its plants closed to nine.

Citing detailed accounts of strikes now under way in five cities, Knudsen accused union leaders of throwing thousands of men out of work without at tempting to bargain with manage ment. He reiterated be- Aiivt TT A A lated its principles. His letter cams on the heels of a fifth deriird from Martin, which Knudsn- had not yet received and in which the U. A. W.

A. leader charged G. M. C. with discrimination against union workers and of "spies" hired from private detective agencies.

Letters Heighten Tension. The exchange of letters heightened the tension which gripped the entire industry. Both sides looked to a meeting of U. A. W.

A. (Continued on Page 4. Column 4.) City Is Given Business Rule Rale Reduction Fights Waged; Taxes Are Cut. By THORNTON CONNEIX. Government "for the people" was the type Louisville and Jefferson County enjoyed in 1936 and, with the same executives in office, excepting one member of the Fiscal Court, is the type taxpayers may expect in 1937.

By his every act Mayor Neville Miller has made it plain he considers it a Mayor's duty not only to see that tax revenues are carefully, wisely expended, but also to see to it that inhabitants of Kentucky's first city receive a dollar's worth of service for every dollar spent for telephones, gas, electricity and other utilities. Business Administration. During his three years in office, Mr. Miller has given Louisville jut promised when he won i-y cloak of candi- ess administration." A the City of that affects all been reorganized on a business basis, "for the peo- and Nation, Louis- had a New Deal. 'd not only in the prevalent but that abounds.

'iil sales have in-. 0,000 since 1933. $42,375,000 for were the highest in is "strong-mayor" aient, under which i a'! bui i r- A 1 (Ce Column 2.) rmirKT. cnH New Charges to Be Ef. fective On Bills After January 26.

Counties Having Free In-terexchange Service Not to Share. Br J. HOWARD HENDERSOV. The Courier-Journal Frankfort Bureau. Frankfort, Dec.

31. Reductions of $525,000 in telephone rates throughout the. State, of which go to Louisville subscribers, were ordered today when the Public Service Commission abruptly ended' its two-year investigation. The order was consented to by Mayor Neville Miller of Louisville and representatives of the Southern Bell 'Telephone Telegraph Company. The lower rates will go in effect on billings of January 26 and later.

The order, when supplemented by an allocation section, will close the city of Louisville hearings, which were about one-third complete, and all phases of the State's investigation. Inter-Exchange Tolls Eliminated. The $85,000 reduction for out State sections will be alloted to counties which do not have country-wide inter-exchange service. The twenty-seven counties which now enjoy county-wide inter-exchange service will not share in the reductions. But tolls for inter-exchange service, provided for in the October order of the commission, were eliminated.

There will not be any toll charges in Jefferson, Daviess, Hopkins and other counties where service is now had between exchanges without tolls. That is the big difference rescinded October or- der, and the new order In add -tion, Louisville gets a larger shart of the reductions, $440,000 on 1937 business compared to $353,000 granted in the October, order, Total Redaction Larger. The total reduction is larger than the October reduction, 000 against $516,000. But the $516,000 October reduction had coupled with it a provision for toll charges, which created a furore and led to recision of the first settlement. The new settlement fixes the hew rates for Louisville, but not for the remainder of the State The distribution of the out-State savings among the various exchanges is to be worked out later by the commission.

In Louisville resident users will nav $3.75 monthly, as they would have paid under the October order, instead of the present $4.25 rate for one-party lines. Two-party residence lines will cost $3, instead o' $3.75. Four-party residence lint i will cost each subscriber S2.25 instead of $2.50 in the Oc tober order and $2.75 under pres ent rates. Business Rate $8.75. Business phones (one -party lines) will cost $8.75 under the new rate.

They cost $10 now, and were fixed at $850 in the rescinded order. The new rate for business phones on four-party lines, $6. Individual business lines with a message rate service will cost $5 a month, with eighty-five messages allowed, and additional messages will cost 3 cents eacn Extension phones for business service will cost $1 a month for flat rate service. For private branch exchanges with message rates the first trunk will be en titled to eighty-five local mess ages for $5, Each additional trunk will cost $2.75 a month, without additional message al lowances. Messages in addition to (Continued on Page 4, Column 1.) Estimated Motor Toll Only 353 Under 1935 Washington, Dec.

31 A tragic estimate that 35,708 persons lost their lives in automobile accidents in the United States in 1936 came tonight from tne uov-, ernment's Accident Prevention Conference. The conference found some solace in the fact that this year's total was 353 less than in 1935. California had the greatest increase, from 2,797 last year to 3,050 this year. New -York led in decreases from 2,991 to 2,600. The conference said that the decrease in New York "was attributed largely to the enactment and strict enforcement of laws against reckless driving and speeding." Kentucky's estimate for 1936 was 667, a decline of five.

The Indiana figure was 1,333, compared to 1,208 in 1935. Weather Forecast Kentucky Increasing cloudiness Friday, probably followed by occasional rain in west portion at night; occasional rain Saturday; not much change in temperature. Indiana Fair, slightly warmer in extreme south portion Friday; Saturday rain in south, rain or snow in nortiT portion, Economist Says City Just Beginning to Know It Possibilities. General Business Hero Averaged 10 Pet. Above Last Year, He Says.

Br Ror.ra habson, (Prepared Specially for Th Courier Journal.) Louisville has one of the brightest outlooks of any American city for 1937. I am bullish on prospects for the Nation as a whole next year, but I am particularly optimistic on the South and on Louisville. Strategically located in the center of a rich industrial and agricultural section, I feel that your city is only beginning to realize on its possibilities. During the past year the foundations have been laid for a period of booming business. In 1937, I look for the first year of real prosperity since 1929.

During 1936 general business Jn Louisville averaged about 10 per cent above a year ago. This was in line with the forecast I made for your city last New Year's Day. Recovery from the low point of the depression now totals more than 70 per cent in Louisville. This approximates the Nation-wide revival. Your city thus finds itself back to the level of 1930.

There is one significant difference, however. In 1930 we were on the way down into a deep abyss of suffering and want. Today we are on the way up into a new and hopeful era of prosperity. Building: a Feature. As realers will note in the na tional article, published in Section 4, I look for building to be a business feature of 1.9:i7 for the entire country.

Louisville ready well on its- way to a ing boom. The following iu-t. are interesting. At the bott of the depression the monthly of permits issued amountr $30,000. The present level is doas to $600,000.

Next year's total may run 25 per ccnt perhaps 50 per icent higher. Louisville's industry and Louisville's citizens will benefit materially from this ac tivity. Other industries in your city have encouraging outlooks. I refer particularly to steel and iron, which, barring serious labor troubles, should be a leader in 1937. The manufacture of farm machinery should profit from the expected increase in farm purchasing power.

Your distribution concerns have attractive prospects for the new year. Louisville's land and riv erway transportation facilities are in line to benefit from any faster movement of goods from factory to consumer. Retail Trade In Improvement in the general, condition of American farms should continue in 1937. Today's crops are bringing in about 13 per cent more income to the farmer than was the case a year ago. This gain, plus pay increases, and dividend extras have swelled Louisville's retail trade.

Holiday sales have been the best in years, running from 20 to 40 per cent in some lines over last Christmas' total. This trend toward greater retail trade should be maintained in 1937. Kentucky's great tobacco crop should continue to bring its share of prosperity to your area from both a trading and industrial standpoint. The longtcrm liquor outlook may be somewhat clouded by overproduction and attendant price-cutting. For the short term, however, the liquor industry in Louisville should benefit from the tremendous increase both in national and local consumer purchasing power.

After considering local factors i-the light o' the national outlook, I estimate that Louisville will run considerably ahead of the remainder of the country during the early months of J937. As the new year opens, I forecast that we will see general business avcrsgk.rf 15 to 20 per cent above the corresponding months of 1936 in your city. Bars of Gold Ten billion dollars, fg conservative estimate of the value of the gold to bo stored in the Government vaults at Fort Knox, early this year. The section of next Sunday's Courier Journal contains a full page cf pictures of Uncle newest depository and of activity in t'ua mints at the and Ztn Francikco To round out a full Sunday's reading, the Mogazmc Section will be chock full of interesting features, alonii with 'news eurnm.ir the Scmaphoie, hook page, "America Speaks' and other choice bits'. Order your Sunday Courier-Journal today.

i of his wages to the employer-1 reserve account, and one-sixth of 1 per cent to the pooled fund. In no case will his contribution exceed 50 per cent of the rate his employer pays. The rates of contribution for employers are fixed at 0.9 per cent of payrolls for 1936; 1.8 per cent for 1937; 2.7 per cent for 1938, 1939, 1940 and 1941. There is provision for merit rating thereafter. The law provides that benefits shall be 50 per cent of the full-time weekly wage with the maxi- (Continued on Page 4, Column 3.) ITlDUte IlVe-SlXinS OI 1 per New Advertisement Signifies Child's Father Ready to Meet Terms.

Tacoma, Dec. 31 OP) A classified advertisement signified tonight that Dr. W. W. Mattson was ready to meet the terms of the kidnaper who seized his son, Charles, 10, for $28,000.

ransom. The Seattle Times, which published the advertisement, also stated it had "absolutely reliable authority" that the wealthy physician had contacted the abductor and had been assured of Charles' safety. Simultaneously the Tacoma NewsTribune announced it had learned a contact had been established between the family and the abductor. Pay-off Man Held Chosen. The Seattle paper further quoted its informant as saying the $28,000 ransom was ready for delivery and that a pay-off man was being chosen to complete the transaction.

"Mabel We are ready. Everything entirely in accordance with your desires. Said the advertisement. It suddenly replaced one which said: "Mabel Please give us your address. Ann." The only immediate comment was from an intimate friend of the family who expressed belief the Mattsons did not expect Charles' immediate return, or that if they did "they are following a Federal agent's instructions and are keeping absolutely quiet about it." Mattson Home Cheerful.

Unexplained cheerfulness suddenly pervaded the Mattson home just before the new "break" became known to the outside world. Dr. Mattson remained uncommunicative, however, as reports flew about that he or his agents had met the abductor and that little Charles would be released shortly. The Tacoma paper said: "The News-Tribune's informant said there was no. question that (Continued on Page 4, Column 6.) Ask Me Another 1 In what country is the drachma a coin? 2 In poetry, what is a pasus? 3 What3 is the zero longitude? 4 What is meant by 5 With what two great engineering works was Ferdinand de Lesseps connected? Answers to today's Ask Me Another are on Page 4.

linger W. Balnnn. McasiirO. dent, Would Block Cuse Plane Slii pnieiit. (Copyright, 1936, by Universal Service.) Washington, Dec.

31 (US) Emergency legislation giving President Roosevelt discretionary authority to embargo arms shipments to Spain or any other nation involved in civil war was agreed upon tonight by Administration leaders, for immediate introduction into Congress, i -The measure, a joint, resolution, was approved by the President late today, in a determined effort by Government leaders to block shipment of $2,777,000 worth of airplanes, engines and parts by Robert Cuse of the Vimalert Company of Jersey City. N. to the Loyalist Government in Spain. The joint resolution, in effect, will nullify the State Department license already granted to Cuse to ship the planes and engines to Madrid. Confers With Leaders.

Chairman Key Pittman of the Senate Foreign Relations Committee, and Chairman Sam D. McReynolds of the House Foreign Affairs Committee, discussed the resolution in detail with the President. The resolution, which amends the existing Neutrality Act, reads: "That whenever the President (Continued on Page 8, Column 1.) 'Cured' Says Pope, But His Physician Only Shakes Head Vatican City, Dec. 31 (P) A small ray of hope pierced the cold mists hanging over Vatican City tonight with revelations that the clogged vein in the Pope's left leg had cleared and that local circulation had been restored. The general circulatory condition, however, continued critical and there still were clots in the Pontiff's blood stream that might bring death at any moment.

The terrific pain, which it was disclosed today had caused the Pope to groan aloud throughout the night Tuesday, lessened some what and he was noticeably more cheerful. He told attendants he knew that he now is cured. His physician, Dr. Amanti Milani, however, shook his head, observing that despite the lessening of pain the Pontiff's condition is critical. Sixteen cardinals and 10,000 laymen today prayed for his recovery at the Church of St.

John Lateran. east of the city. They were used in W.P.A. work. The girl said the gang had robbed a Sioux City, Iowa, jewelry store last Sunday.

The loot was $37,000 in jewelry and $1,000 in cash. She told Captain Doyle a quarrel developed within the ranks of because members feared one of the group might "squawk." Lacy said the girl told him there were five men in the gang and that four of them knocked the fifth unconscious, bound him, placed him near the shed and set off the explosive. The girl said the gang shot her, but that she managed to flee before the blast. The woman's injuries are so (Continued on Pace 8, Column 6.) Progress Made In Government During 1936 In Louisville, State and Nation Reviewed Old Man 1936 shuffled out at midnight Thursday, a bit bewildered at the turn of events as the clock struck twelve. Up until midnight, the Old Man had been wined and dined at a thousand tables.

It had been. "Good luck to you, Old Man," here, and "Fare you well, Old Man," there. It was like that up until the clock began to strike twelve. The Old Man had been the cock of the walk, the star of the show," the toast of the town. "One, two, three, four, five, six," "More Abundant Life" Slogan Justified By Recoverv.

Br ITI.KIC BELL. The Courier-Journal Washington Bureau. Washington, Dec. 31. Of all things that came upon the national scene in 1936, that which is truly outstanding today is the "more abundant life." That phrase is President Roosevelt's.

He used it at the outset as the aim of a New Deal which sought a prosperity reaching to all classes of the people. asked for a fairer distribution of the resources of a rich country. In the early days of the Roosevelt regime, "the more abundant life" lost some of its appeal in the light of cold realities. It became even a term of derision when used by Mr. Roosevelt's enemies, resisting his program of wider social solicitude on the part of the Government.

But even as that resistance reached its peak during the year 1936, the god3 that hold sway over peoples and empires bestowed at last upon the United States a measure of economic recovery justifying the Rooseveltian slogan. Long before the November election, it was apparent that the depression had been conquered. By the time the Presidential campaign started, politicians no longer hesitated to proclaim that the famous corner had been turned. Thus the year was marked both by the return of real prosperity handmaiden of the "more abundant life" and by the decision of the clock struck, while everybody itoed and shouted, "Goodby, Old Man, and good luck." "Seven, eight, nine, ten, eleven, twelve," the clock chimed, while everybody cried, "Hello there Kid, you're right on time." "That's funny," the Old Man muttered. "How'd that young 'un get in here?" But there he was, no mistake about it.

A vigorous little chap in the full bloom of perfect health, he took the spotlight with agile grace. His swaddling sweater bore the numerals, "1937," though he wasn't big enough by far to be an undergraduate. "Hello yourself" the Kid shouted back. "Let the show continue!" Few Feeble Capers The Old Man puttered around in the shadows a few minutes, cutting feeble capers and gesturing to himself. But nobody paid him the least attention, that is.

until a headwaiter came along and cuffed him, saying: "Get along. Old Man, you've had your turn." Still muttering to himself, the Old Man tottered outside and wan dered around for a while in the streets. StilL nobody noticed him. except a cop who told him he'd better watch his step or he'd get run over. "But you don't understand," the Old Man cackled.

"Nobody is going to run over me. I'm somebody. I'm 1936." "That's what you think," the cop snapped. "Now get along, Old Man, before I run you in." Just About Over. The Old Man, gnarled and bent, ambled away with faltering steps and dejected mien.

Suddenly, the Old Man found himself hopelessly caught in a swirling crowd of late merrymakers on their way to a night club. It was just about over for him. and he knew it. With supreme effort, the Old Man unbent himself and spoke what were to be his last words on ithis earth. I "Heh, heh, he laughed.

"The joke's on you fellows after all. You think you're too smart to notice Old Man 1936 now, but forget I'm the fellow that brought you enough money to get in this club at $5 a head." "Heh, heh. heh:" The Old Man died underfoot, laughing at his own joke. None of the other heard what he said, hrcause it was 1937 88522 Gem Store Looted Hamilton. Ohio, Dec.

31 (P) Jewelry. valued at $5,000 was taken Planning for Human Welfare Was Notable At Frankfort. By J. HOWARD HEXDEESOV. Frankfort, Dec.

31. During the twelve months past Kentucky began to put some substance into its form of government, so that by the year's end the State Government was beginning to be an agency for human welfare. And some brains, too, just as if those in charge believed that with careful planning the State could give its citizens a larger share of happiness than they had received or had come to expect of their Government. The accomplishments of 1936 are not at an end with the close of the year. Actually much more is to be expected of 1937 than was brought about in 1936, and the field of endeavor for the benefit of the citizens will be further widened in 1938.

From Augustus E. Willson in 1907 to Ruby Laffoon in 1931 through seven administrations and twenty-eight years of Kentucky life (babies had become seasoned voters in the span) every candi- date had promised to reorganize the government. Each gave the same reasons: More service for less money. Each failed, or trying, watched the re Blast Shakes Sioux Falls, S. A Gang Execution, Girl Says Sioux Falls, S.

Dec. 31 OP) A terrific explosion of dynamite and black powder, reported to have been set off by a robber gang to kill one of its members, shook this city and vicinity early tonight. The explosion was heard fifty miles away. Helen Snyder, a Sioux City, Iowa, girl, was found wounded in the road a short distance from the scene of the explosion by Ed Lcy. a farmer.

The told Police Capt. Leo Doyle a bizarre story of how a gang had executed one of its members in the explosion. Her story could not be immediately confirmed. Tons of the explosives were stored in an iron shed five mllea modeled structure function under f. "invisible government" much as it'p t' had functioned before he camel upon the scene.

vi-The form of government at beginning of 1936 was like it was; kirn 1907. A bit more grotesque with in the haphazard additions of theiLt a. years, but a ramshackle" affair an crea economic fire trap. Governor Chandler and the a General Assembly of 1935 re-jmc .5 organized the government. Their I was an improvement upon, for r.

.1 the American people to retain the from a display window of the New Deal itself. Eut there was aj William Seidensticker Jewelry third great theme of 1936. This Company store early today by twe jmen who hurled a brick wrapped (Continued on Tate 7. Column 'in cloth through the glass. (Continued on Pace 11, Column 1.) i X..