The Indianapolis News from Indianapolis, Indiana • 1

LAST EDITION NEW NDIANAP 11 Weather Forecast OCCASIONAL RAIN Sunrise, 6:06. Sunset. 5:45. ft 26 PAGES by xjocju. cARium i3 a wnK THREE CENTS 80 WEDNESDAY EVENING, MARCH 9, 1938 VOL.

LXIX WHOLE .21,32: 9 nn 17 nn MM i Mm PR ITU LTUZu JZ3 Li IN TURNING AROUND NEW DEAL HEADS German Bund to Hold Meeting in Home of Draughtsman Here RAIL HEADS TERM RAISE INADEQUATE 6 YOUTHS CONFESS MASS ROBBERIES REBUFF RECEIVE Executives Say 5 to 10 Per Cent. Rate Increase Falls Short of Needs Punitive Levy on Business Rumored From Pen of Roosevelt STANDING VOTE IS 180-124 ikjrMvr- QU.TE A DENT f-v l.N MY -MACHINE NEW SCHEDULE SPEEDED Decisiveness of Margin Held President Calls Conference to I I i i Sufficient to Survive Roll Call The Indianapolis News Bureau, 60S Albee WASHINGTON, March 9. Discuss Finances of Carriers WASHINGTON, March 9 (A.P.) Approval of higher freight rates by the interstate commerce commission fell so far short of needs, rail The house this afternoon killed the proposed penalty executives said today, that the nation's railroads remain in a peri surtax on family or closely-held corporations. lous financial condition. "We are glad to have what they By a standing vote of ISO I i gave us," said J.

J. Pelley, president of the Association of American Railroads, "but we're to 124 the membership adopted a motion of John W. Mc- The commission's decision, hand Cormack Mass.) to strike from the pending tax ed down late yesterday, gave the railroads permission to raise most rates from 5 to 10 per cent. Joseph B. Eastman, commissioner, estimated Admitted Tavern Thieves Held to Grand Jury Traced Through Fatal Crash MORE SOUGHT BY POLICE Gang' Believed in League With "Fence" Forced Younger Boys to Steal Six youths, four of whom were involved in a fatal traffic accident last falJ that sent them to a hospital for many days, have been bound to the grand jury in connection with a series of burglaries that had puzzled authorities since October.

They have signed statements admitting nearly a score of burglaries In Marion and Hamilton counties, most of them having been committed after the release of the injured four from the hospital. None of the loot obtained by the gang has been recovered, indicating- some big-time "fence" has been buying it. Authorities said further investigation may lead to th arrest of-others connected with activities of the gang. Charles McCallister, chief jailer, and Deputy Sheriffs Howard Skaggs and Robert Harritt conducted the investigation that led from tha sron? of the fatal traffic accident in which a brother of one of the alleged 'burglars was killed, to taverns and barbecue stands through-cut two counties. Those held to the grand Jury following a hearing before Judge Charles J.

Karabell are: Wesley Hoard, age twenty-two, 1841 Apple-Eats street; Maurice (Bud) age eighteen, 1742 Laurel street; Paul age twenty, 1851 Applegate street: Walter Menges. age twenty, 629 Orange street; Robert Patterson, age sixteen, living in Leonard street, and Eldcn Suddeth, age eighteen, 1635 Cottage avenue. bill all of Title I contain the additional revenue would amount X4t to $274,000,000 a year. Pelley said a study of the 190- page decision indicates the general ing the controverted levy. This was rebuff to the leadership and to President Roosevelt, who had indorsed the new tax.

In some quarters the President was named freight rate schedule has been boost address by Wilhelm Chicago A meeting of the German-Amer as the author of the proposal. ican Bund is scheduled to be held at It was an upset for tho ways and means committee, 8:30 p. m. Monday, at 339 North Summit street, the home of Charles W. Soltau, Indianapolis draughtsman, it was learned by The News today.

This picture shows the Sol and New York, national bund publicity director. The Invitations bear Soltau's name. "You are cordially invited to attend a meeting to be held in our home on the evening of Monday, March 14," the invitation said. "The meeting will be addressed by Wil- Continued on Tage 3, Part 1 tau home. Invitations have been sent to many persons of German descent, "cordially inviting them to hear an UHN ed only 5 or 6 per cent.

Railroad spokesmen during the hearings had asked for a 15 per cent, increase, but Pelley said the requested changes actually would have lifted the rates only 12.9 per cent. "Whether we'll go back to the commission again with another petition for higher freight rates, or just what course we will pursue hasn't been decided," he said, adding that the permitted raises will be put into effect as quickly as possible. White House Calls Meeting. They may be applied on ten days' notice. Following the decision, President Roosevelt announced he will hold a previously-discussed railroad conference at the White House next week.

The meeting will consider the whole question of railroad finances. Those to attend are Chairman Walter M. W. Splawn and Eastman, of the I. C.

Senator Burton K. Wheeler Representative Clarence Lea Carl Gray, of the Union Pacific, and PRESIDENT ASKS RENCH CABINET THROUGH STREET NCREASE NOTED IN NEEDY DURDEN SHOWDOW TVA TO NTENDS DRIVERS QUIT WARNED of Chairman and Two Directors Premier Chautemps Informs Court Rules Preferential Route More Than $10,000,000 Public Funds Spent for Assistance in 1937 George Harrison, representing rail Socialists of His Decision way laoor. With certain exceptions, the I Motorists Are Not Free From Reasonable Care Drivers on preferential roads or The burden of public, assistance to the needy aged, needy blind and dependent children in Indiana C. C- authorized the railroads to Increase freight rates by 10 per cent. It stipulated, however, that 15 Railroaders Rescued From Drifted Pass LIZARD HEAD.

March 9 (A.P.) The 171-mile Rio Grande Southern railroad system relaxed today with fifteen trainmen, a major part of its personnel, rescued from snow-chokd Lizard Head pass. The men had been" marooned with scant food supplies six danger-filled days. A borrowed locomotive powered a rotary snow plow that cut through twelve-foot drifts to free the men at the hight of a new blizzard last night. They were trapped in the threatening shadow of Nigger Head slide, a dangerous avalanche slope. The locomotive, obtained from the Denver Rio Grande Western, today went to the aid of a Rio Grande Southern rescue train hemmed in by snow slides while attempting to reach the snowbound men from the opposite side of the pass.

The plow engine led the released trains back to Rico. increases granted on many com shows a considerable increase for modities last fall must be included streets have a duty to attempt to avoid collisions as well as those using nonpreferential routes, the appellate court had ruled today, the last half of 1937, according to a in that percentage. PARIS, March 9 (U.P.) Prime Minister Camille Chautemps informed the Socialists tonight that the cabinet will resign. Chautemps earlier had announced that he must receive full powers to deal with financial and social reform. comparison of figures given today Increases of 5 per cent, were by Thurman Gottschalk, public Upholding a Randolph county cir granted on the following commodi ties: welfare administrator, with an audit cuit court case in which Paul released Tuesday by the state board Agricultural products, except Thomas, received an award of $6,750 of accounts.

The welfare department's state tropical fruits; animals and animal products, except horses and mules; Menges, Stephens, Suddeth and Hoard were riding in an automobile that was in headon collision with an automobile driven by Jack Deutschcr. age thirty-eight. 3515: North Pennsylvania street, in Road 67 near OakJandon, in October, last year. Two Killed In Dcutscher, who was returning to his home from Muncie, was killed, his head being torn off as he was thrown through the top of the car. Lindsey McKinneV, age seventeen, 1740 Draper street, a brother of Paul, who wa.i riding in the other car, also killed.

Witnesses said car in which the boys were riding was going "seventy or eighty an hour." It was a new car ow: 1 by Paul McKinney and driven by Menges. He and Stephens both suffered fractured skulls, while the others were less srriously hurt. The disclosures made txlay by authorities indicated lhat the youths may have been fleeing from one burglary, or at least sizing up possible "jobs" when the accidf-nt occurred, A barbecue In the 3200 block in Madison avenue was burglarized January 11, and an investigation showed four youths had been in the place the preceding night. The ment shows nearly $10,500,000 was lumber, shingles and lath; cottonseed oil and vegetable oils, except spent in 1937, while the account linseed oil. beard's audit gives $6,185,175 as the amount spent in the fiscal year from an oil company for damages from a collision, the court said the duty of exercising reasonable care rests cn both drivers.

Thomas was injured when his car collided with an oil truck. His automobile was not stopped at the preferential Road Anthracite coal rates were increased 10 cents a ton, or about which ended June 30, 1937. The increase is indicated in the 53 per cent. Coal Rate Rise Denied. number receiving monthly checks In December, 1936, a total of 41.768 Increases were specifically re 36, which the truck was using and got benefits, while in December, 1937.

the number had advanced to fused on bituminous coal, lignite, which had approved the tax and defended it throughout five days of debate. Eight of the twelve Indiana members voted against the tax. Two voted for it and two were not recorded. The Hoosier lineup: Against the Tax Schulte. First district; Halleck, Second; Pettenglll, Third; Jenckes, Sixth; Bochne, Eighth; Gray, Tenth; Larrabee, Eleventh, and Ludlow, Twelfth.

For the TaxGreenwood, Seventh; Crowe, Ninth. Not Recorded Farley, Fourth; Griswold, Fifth. Many Protests Received. Boehne is a member of the ways and -means committee. Early in committee' deliberations, he had opposed the tax and later had announced his objection largely had been removed by modifications.

For days members of the house had been bombarded with objections from business concerns and business men to the tax, which was denounced as punitive, discriminatory, and un-American. Indiana business men kept up a constant fire against the proposal, and thus opposition was reflected in the adverse votes of the Hooslers. The vote killing the new tax was in committee of the whole and a roll call vote is still possible when the committee rises. A first standing vote of 165 to 128 went against the tax. The teller vote which followed increased the margin.

Leaders, pointing out that 131 members were not recorded, said a roll call vote would be asked after absentees could be summoned. None appeared confident, however, of changing the result. Ludlow Issues Statement, Representative Ludlow issued a statement giving his reasons for voting against the section. In part the- statement read: voted against the surtax on family and closely-owned corporations because I believe It is my duty to aid honest business to get on its feet and to do all can to see that it is not handicapped by excessively burdensome and discriminatory taxation. "If business ever is to recover and do its part in restoring rjeneral prosperity and In giving Jobs to those who are so much" in need of work, it must have a fair chance.

"We do not need to go outside of our city of Indianapolis to be impressed with the fact that family-owned corporations, speaking of them as a class, are not a detriment but, on the contrary, they are a real aaset to the community, worthy of all the encouragement we can give them. "In surveying the general administrative and tax situation I am prompted to ask, 'When are we going to do something to encourage It seems to me that the Continued on Page 8, Tart 1 which was marked by a stop sign. iron ore, fresh milk and cream and 69.537. The figures today show the fed Although Thomas did not obey to Meet With Him Friday Shakeup Forecast WASHINGTON, March 9 (A.P.) President Roosevelt's determination to obtain a swift showdown in the quarrel among directors of the Tennessee Valley Authority today led some observers to forecast a shakeup in the three-man board. The President ordered the directors to meet at the White House Friday morning.

He told a press conference yesterday that the gathering will have one purpose to get the facts behind charges and counter-charges that have split the TVA board wide open. The emphasis with which the President spoke gave his hearers the impression he would employ stern measures if necessary to end the dispute. Senator George W. Norris author of the TVA act, said that if Mr. Roosevelt's inquiry shows the desirability of removing "some one" from office he would consider initiating congressional ouster action.

Norris asserted he believes removal of the entire board will be unnecessary. Such a step has been proposed by Representative Donald McLean N. Norris told the senate yesterday that at one time he had hoped A. E. Morgan would resign as chairman, but had become convinced he would not do so.

Morgan has been on one side of the controversy, and David E. Lilienthal and H. A. Morgan, directors, on the other. Mr.

Roosevelt did not indicate what action he might take, even if the Friday conference shows re-conciliation-to be impossible. Asked whether he might request one- or more resignations, -the President said that was asking what the court's decision would be before the evidence was heard. He explained he' had made no effort- to find out whether he had power to force any resignation. On refrigeration service. The commission deferred a deci the stop i sign, the evidence shows eral government shouldered a GROUP TO OPPOSE that he looked both directions be heavier part of the public assistance 17-Month-Old Government of Hungary Falls BUDAPEST, March 9 (A.P.) The Hungarian cabinet headed by Premier Koloman Daranyi resigned tonight after seventeen months in office.

Admiral Nicholas Horthy, regent, accepted the resignation, but commissioned Daranyi to form' a new government. He requested the retiring ministers to continue in office until a new cabinet is formed. The resignation came after debate in parliament on a plan to devote most of an internal loan of pengoes ($198,450,000) for sion on the application of Eastern railroads for permission to increase passenger coach fares from 2 to fore entering Road 36. Mist and burden under the welfare act dur ing 1937 than it did in 1936. fog prevented him from seeing the 2.5 cents a mile.

CHANGE US LN truck, according to the evidence. The truck driver did not swerve to State welfare officials attribute the federal increase to the fact the federal program was not fully operative in Indiana during the Senator Wheeler, as chairman of the senate interstate commerce committee, said he does not be avoid a collision, the record showed. "The mere fact that one vehicle first months of 1936. lieve the increased rates will "ma terially help" the railroads. name of one of the youths was obtained.

It was Ralph Derrett, age eighteen, 015 Beecher street, who was sentenced to the Indiana State has the right of way over another vehicle at a street or road intersec The figures show that of the almost $10,500,000 expended under the "What the railroads need is more tion does not relieve the driver of Farm the following day on a lar welfare act in 1937 to aid the state's needy, almost $5,000,000 or 45.1 per business," he said. "I can not see how they can get more business by the vehicle thus favored from the ceny-charge resulting from another cent, was contributed by the federal raising their rates. duty of exercising reasonable care to avoid collision at such intersec government. In 1936 federal funds offense. But from him authorities learned the names of his companions Stephens.

McKinney and Almost every railroad spokesman expressed disappointment that the tion," the court said. duty provided only 39.8 per cent, of the does not rest alone upon the driver Meeting Will Protest Proposed Abolition of Fifty-Second-Keystone Route A public meeting to protest abandonment of the Fifty-second and Keystone bus route will be held Thursday night at the Forty-ninth Street Christian church, Forty-ninth street and Sangster avenue. The works-sanitation board Monday approved a petition of the In total. Hoard. permitted increases were no larger, Ralph Budd, president of the Chi on the nonpreferential street.

A sixteen-year-old boy who was "While as contended by appel cago, Burlington Quincy, said the caught in another burglary job also The counties share of the costs of the program In 1937 dropped to only 21.2 per cent, or slightly more than one-fifth of the total. In 1936 the counties-bore 24.9 per cent, of increases are not nearly enough to lants (the company), the failure of appellee (Thomas) to bring his automobile to a full stop before en Continued on Tage 8, Tart cover added costs in wages, ma terlals and taxes. The lines had sought $470,000,000 more revenue to the -costs. rr-v Trill i ypnooii iviiis meet such expenses. "How can this do us any good? The state government provided $3,520,619 or 33.7 per cent, of the 1937 welfare lead.

The state's share in 1936 amounted to 35.3 per asked J. M. Kurn, co-trustee of the Schuschnigg to Hold Plebiscite on Hitler Policy INNSBRUCK, Austria, March 9 A.P.) Chancellor Kurt Schusch- nigg tonight called an Austrian national plebiscite for March 13 to determine the strength behind his fight for Austrian independence. In the referendum, Austrians dianapolis Railways to cease operation on the line and to substitute an extension of the Millersville 200 on South St. Louis San Francisco.

'En tirely inadequate" was the comment bus line. of Samuel T. Bledsoe, president of cent. Since 1936, the Indiana public as sistance program has grown con China Island tering the intersection may have been negligence per se, this fact of itself would not preclude the appellee from recovery unless it further appeared that such negligence was a contributing cause to his injuries. "The' driver of an automobile upon a public highway in this state should exercise reasonable care in its operation and not assume that, because the rules as announced by the court or statutes enacted by the legislature1 give him certain rights and preferences he the Santa Fe.

Residents of the community are opposed to the change, alleging the siderably. The number receivin? new route will slow up transporta LISBON, Partugal. March 9 (UJP.) monthly checks has grown from 41,768 in December, 1936. to 69,537 in December, 1937. yet the propor A typhoon which swept cross tion service to the downtown area.

Some patrons charge that service the island of Macao, Portuguese will be delayed at least twenty nun tionate share of payments being met will be asked to vote on -whether owned port; at the mouth of the by county taxes has been reduced; they are satisifed with the govern river, in southeast China. caused an estimated 200 deaths, ac this, too, in spite of the fact that payments to the aged have been increased from $14.31 to" $16 on the average for the state within the utes by the move. The Parent-Teacher Association of SchooF 91 will sponsor the protest meeting, which will begin at 7:30 p. m. The residents will discuss plans for requesting the works-sanitation board to rescind its action in approving the change.

can' avail himself thereof with apparent indifference to the safety and rights of other persons using the public highways." The opinion was written by Judge Alphonso C. Wood. year. cording to reports reaching here tonight. The island, about thirty-five nines east of Hongkong, was isolated by the storm and only meager reports In other words, 78.8 per cent, of public assistance allowances being paid each represent new are available, The city and shipping ment's program.

When the plebiscite was predicted earlier in Vienna, government officials said they expected Schusch-nigg: would receive a 70 per cent, indorsement of the course he has steered since his "Berchtesgaden conversations" with Reichesfuehrer Adolf Hitler last month. The chancellor has been attempt-tog to rally support for his resistance to German encroachment, for which. Berchtesgagden, giving Nazis a large voice in the Austrian government, was an opening wedge. that point, Norris said the TVA act vests that power in congress alone. This is the third time the President has intervened in TVA affat; because of the, three-year -old fetM.

The first time was. prior Lilien-thal's reappointment to board, when statements made by Chairman Morgan about his fellow director led the President to inquire into Lilien-thal's record. He stepped in again last fall after Chairman Morgan had written for a magazine an article on the public ownership, of power. Lilienthal and H. A.

Morgan Interpreted the article as impugning their integrity. Lilienthal and H. A. Morgan, Mr. Roosevelt related, sent a resolution to the President, asking: the chairman either to prove his allegations or withdraw them.

Mr. Roosevelt wrote the chairman that the dissension threatened the TVA program, and Morgan promptly came to Washington. The President quoted Chairman Morgan as saying he meant no reflection on the other directors. Mr. Roosevelt then instructed him to try to work in harmony, with the others.

money coming into the various counties of Indiana. in the port are believed to have suf fered heavy damage. Boy, 10, Witness at Trial, Tells of Sneak-Thief Career POISON SUICIDE VERDICT FOR BOYS' SCHOOL DEATH PLAINFIELD. March 9 (SdI.) All Drinking Water Boiled in Los Angeles LOS ANGELES, March 9 (UJ.) In pots and pans on kitchen stoves, the residents of this city of 1,380,000 boiled their drinking water today. The sewer system broke under the strain of last week's flood and the water supply is contaminated, though whether from the sewer is not yet known.

Until the cause is discovered. Dr. George Parrish, city health officer, warned all persons to boil their drinking water. Dr. Parrish said contamination of the municipal water supply was discovered in Highland park and in a large area of southwestern Los Angeles.

Sewers paralleling the water, mains were found to have burst. A mild epidemic of stomach disorders is sweeping the city. The victims suffered several days of nausea, but Dr. Parrish described this as "some sort of flu brought in rom the A new storm of gale force is charted to sweep California tonight, adding to the flood distress created by recent rains. R.

Baker, Hendricks county coroner, gave a verdict or suicide by poison in the death of Minnard Scales, assistant principal of the Indiana Boys School, who was News Features Pages. Boake Carter 1, Part 2 Comics 4, 5. Part 2 Crossword Puzzle 4, Part 2 David Lawrence 1, Part 2 Editorials 6, Parti Financial 10. 11, Part 2 Health Column 4, Part 2 Movies 6, Tart 2 Radio rrogram II, Tart 1 Serial Story 5. Part 2 Society 12.

Parti Sports 2,3, Tart 2 found unconscious in the lock chapel of the school Tuesdav The Weather Indianapolis and Vicinity-Occasional rain tonight and Thursday; warmer tonight with lowest temperature above Creeling; colder Thursday. Indiana Occasional rain tonight and Thursday; warmef tonight except extreme southwest; tolder Thursday. Other weather details on Tage An intelligent ten-year-old joung-ster, a pupil at School 8, was absent from classes today: he was in municipal court telling about his career as a sneak thief. Friendly and apparently unwor-ried, he told Judge Charles J. Kara-bell that he stole cigarettes, a flashlight, a camera and S3.50 from a downtown drug store just before it went out of business.

And to top things off, he said he borrowed a cume from the night watchman as hp walked out of the store with his loot. a downtown garage, having made friends with the night watchman. The boy was not on trial. Instead he was in court as a witness against Leon Downs, 424 North Alabama street, a cab driver, charged with receiving stolen goods namely, cartons of cigarettes stolen by the boy. Downs was fined $23 and costs and sentenced to forty-five days in jaiL He said he bought the cigarettes from the boy because he told him a "sob" story of his mother and father being ill.

The boy denied telling this yarn-Juvenile court authorities were in court and said the boy would receive a hearing in that court. They said he was alert in his studies. FORMER BARONESS TAKES POISON; STAYS IN HIDING LOS ANGELES, March 9 (AP.) Mrs. Irene Palmer, age forty-five, the former Baroness Pongracz, rested in undisclosed private quarters today after treatment for what Georgia Street Receiving Hospital reports was self-administered' poison. Detectives said Mrs.

Palmer told them she was the former wife of Cyril Tolley, a golfer. Other sources said this Tolley was not to be confused with Cyril Tolley, famous British amateur. Analysis of stomach contents by Dr. N. Harger, toxicologist of the Indiana University school of medicine, disclosed poison.

Dr. J. C. Stafford, deputy coroner, said 'Mr. Scales left no note of explanation.

Funeral services will be held in the Friends church here Thursday aiternoon. Burial will be at Plain-field. Officers and students at the school will participate in the 10 EARTH SHOCKS CAUSE PANIC -AT TINTA, PERU LIMA, Peru, March 9 (A.P.) Dispatches from Tinta, Peru, today said ten earth shocks rocked that city, sending the panic-stricken inhabitants running to open spaces for szfety. 1, Part 2. money." the boy said.

It also was alleged that he had 1 stolen, articles from cars parked in.