The Indianapolis News from Indianapolis, Indiana • Page 1

THE INDIA'NXPOEI LAST EDITION CLOUDY; COOLER. jr.rlr 4:20. Sunset, 7:03. Circulation, First 4 Mos, ir32 Jlarion Coaaty .3.1 17 Grind UrMLl VTTT 140 Entered aeconl elae matter at poat olhc IndlanapoUa. Ind.

Iaaue4 dalin. FRIDAY EVENING, MAY 27, 1932. FORTY PAGES ikXS THREE CENTS Uli. LJXlll WHOLE 19.30) WALKER'S STOCK STORY DISPUTED Business Man Head of Croup Backing Nominees SLOWING UP THE GAME HE RELIEF PLAN Striving to Show Congress Way to Economically Sound Prozram. Edward W.

Harris, Widely Known Business Man, to Head C. O. Movement. Witness Says He Bought 300 Shares Later Used as Bus Loan Collateral. Only Company Figures Used' in April Spot Check, Ac countant Tells Ellis.

CONFIDENT OF SUCCESS FACTIONALISM CAST ASIDE SEABURY TRACES DEAL NO REAL ANALYSIS. WORD President and Treasury' Head Insist on Putting End to Borrowing. Support Asked for Majority of Ticket on Basis of Serv ice to Community. Contends Flight of Mayor's Alleged Agent Is Evidence 'b of Guilt Gilbert Shows Inaccuracy of Claims by Which More Rev. enue Is Asked.

MEWS DOVER OT ORGANIZE WATER RATE LOSS DATA CHALLENGED BACK NOMINEES I Tke ladJeaase'la Neva Bareau, 03 Aim BatiaiBC. WASHINGTON. May 27. President Hoover stia believes It Is possible for the executive and legislative branches cf the government to get together on temporary emergency relief legislation that will be sound economically. With this end In view, the President will continue his dally consultations with the leaders In the congress, both Republicans and' Democrat, The President naturally feels that, as the head of the government, he has a much larger responsibility In this matter: than Individual members cf the congress.

What he is striving do is to show the congress collectively Just what the treasury situation is and what inevitably would mult from! unwise legislation, particularly from what the country UutcUy recognizes as pork barrel lr gelation In the name of charity. The Preside nt started his day by railing for a copy of the relief leglsla tlye program sponsored by John N. Garner, Speaker of the liouse. While I A I Lilt ne was going tnrougn ww uiu, relator Royal Copeland (Denu. N.

cam In, and. the two had a talk about the various relief proposals now before the congress. Later the President sent for the director of the bu reau of the budget, and still later Og den L. Kills, secretary of the treasury, made his daily call. No Intimation came from the President as to whether he would discuss the Garner; program At this time.

Mills Gives Statement. The President realizes more clearly than perhaps he did before he met with some forty publishers and editor of daily newspapers Wednesday r.Ight that the country is insisting that the federal budget be balanced. This is the thins: UDDermost in the Trffiident's mind. The' secretary of the treasury concisely expressed the President's fn the statement which he made last night, a statement which was intended a comment on the views of Alfred XL Smith, former Oovernor of New York, but which, it was said at the. White House today, is rpllf'ble to any and all programs for relief that.

would make, balancing of the budget impossible. Among other things, the treasury secretary taid:" "The only wise, and sound course to pursue is to balance the budget and put an end to bor rowing. have been striving to reach this objective ior six months. Are wi to throw up our hands now? Ko matter; how earnest, sincere end moving the plea, the treasury department can not surrender on this fundamental principle," The President and bis secretary of the treasury take the position that "the greatest field of the revival of employment is In private Industry, and it is that employment that must be Find President Confident. Persons who discussed the disturbing situation with" the President today said they found Mr.

Hoover coo fidrnt that ithe congress, in the end, will not lay additional burdens on a treasury, now practically swamped. Mills said another thing in his statement last night th'at President Hoover liked and it was this: "Tle ene way to give real relief to the American people to restore confidence and get business golngi Let the congress balance the budget end pass a sound relief measure." It with the view to "getting business going" that the President now directing; the formation of business committees In the larger cities, com mittees made up of bankers. Industrialists and representative of other, groups of citizens, and it with the view to "getting business going that the President continues to tell the outstanding men In the congress that they, must see to It that legislation creating a system of twelve federal Lome loan discount banks must be parsed at 'this New York Has Plan. rh the New York federal reserve district, the President was informed today, the committee of bankers and Indu.otrLllstji appointed to foster the expansion of credit Is working out an arrangement by which a group of fcr.ks wia underwrite a issue of bonds by the Savings and Loans Bank rf New York state. It is the.

purpose cf the commission to use the' facilities rf the and Loan Bank to provide savings and, loan associations ith additional money, that they may er.t!e worthy families having ade fecuritics in the ownership of ltrr own premises to be relieved from t.v. anxiety of threatened foreclosure. It pointed out that New York itj'e Iz fortunate tn having a savings home lean bank. The President's fcr federal home loan discount would take care of a need the country which sppar tntly can taken care of In New Jfcr'n elate through state machinery. C.n the thole.

President Hoover, en ior him Mid this after i rot permitting himself to be 1 V. tome cf the doings the rcr.de Throughout the day r'rrlvcd. rented aswranec thit row the neemity of rj the tax bill out of the way jt jrUiT f' rrr bill carry 1 irrry fnf iirrt federal relief. Trrw! ruction loans. and a ff i en Tije 1L Part 1.

a a w. so mmmmmmmmm aW wana aaaaMaMMtaMaaMaaia MS EDWARD W. HARRIS. Senate Adoption May Depend on Raising Income Rates, Leaders Believe. 46 COUNTED FOR PLAN Some; Pessimism Over Final Success Is Traceable to House Uncertainty.

iV Tke laaiaoaaalla Barcaa. e5 Aloea VallSlaf. WASHINGTON, May 27. Forty aljc senators ere reported thb afternoon to be ready to vote for a' general sales fax as a substitute for a host of excise and "nuisance taxes now voted Into the 1.000.000,000 revenue measure. A roll call on the proposal is expected tomorrow.

Senate leaders were none toa hopeful of adoption unless the senate should agree to an upward revision of the Individual Income rates. As approved by the senate, the levies on normal incomes are 3, 6 and 9 per cent, and the maximum surtax is 45 per 'C Eight of ten senators have indl ated they, will aupport the general sties tax proposal, provided the sen ate raises the normal rates to 4 and per cent, and the highest surtax to 55 per as proposed last week by Sf nator Tom Connally (Dem Tex.) and rejected by the Part of the pessimism over final success of the present sales tax campaign traceable a belief the house again would reject the proposal, even though modified as contemplated by the plan' of Senator David L. Walsh Denv, Walsh submitted his pbn today in the form of an amendment to the pending measure to take the place of the exebe schedule. It calb for a general manufacturers of 1.75 per cent; with exemptions for foodstuffs, medicine, i cheaper clothing, cigars and cigarettes, newspapers and periodicals. Bibles and other articles used In religious worship.

Walsh Confident. The" Massachusetts senator professes to believe majority of the senate win favor hb proposal He said terrific opposition to the unpopular excise taxes making itself heard and felt. Senator David A. Reed another member of the finance committee, said a count i of noees had revealed a slight majority for the sales tax among senators participating in the tax discussion. Senators' James E.

Watson (Ind.) and Joseph T. Robinson the majority and minority leaders, respectively, said they are not yet prepared to predict adoption of the Walsh pbn. Excises which would be removed from the bin by the general manufacturers sales tax runs from 2 to 10 per cent, on a large Jlst of articles. Including automobiles, trucks, accessories, radios, phonographs, firearms, sporting goods, cameras, candy, cosmetics, jewelry, mechanical refrigerators, soft drinks, chewing gum, motor boats, yachts and matches. The 1.75 per cent, general levy estimated to yield $335,000,000.

which exceeds the total estimated to be raised under the Conflicting views are expressed as to the action of the house should that body again be called on to express itself. The 2.25 per cent, sales tax, recommended by the ways and means committee and Indorsed by the secretary of the was rejected 223 to 153. This means that thirty six representatives would have to change their vote to assure passage. None of the various tabulations of proposed changes contained a number as high. Twenty representatives who voted against the proposal are known to be.

willing to vote support. Several Indiana representatives Continued an Page 11, Part WANTED 5 PORCH SWINGS Flvo dollars In ttao hand la worth more than a swing 'In i the basement the way Mr. Taylor probably felt after this want a4 of fats appeared In Tb News KALTEX 8WLNO 5 good tondiutm; aa. Ta. nn." rive people phoned Mr.

Taylor after some one who saw his ad bottcbt the awing. That leave five people who'll Jump at the ehanre to bay year swlnr If they seo a want ad In The News aboat K. Call for an aa taker, Riley 7411. SALES TAX GAINS Illl DOUBT Preliminary plans for formation of a citizens movement in support of a majority of the Republican nominees for county and district of rices were perfected Friday. The movement, sponsored by the nominees and their friends, will be headed by Edward Harris, widely known Indianapolb business man, who president of the Hamilton Harris Company, wholesale tobacco dealers.

Other officers and details of organization work in the fall campaign will be announced Uter, it was said. "I have been asked by a majority of the Republican nominees and scores of their friends to head a movement designed to command the confidence and respect of all the Republican voters of this county," said Mr. Harris. "It is to be strictly nonfactioaL will be county wide in scope and will be conducted on the broad principle of community service. It was on thb basis that I agreed to accept the leadership.

"A majority of the Republican nominees have taken a bold and courageous stand against government by factions, and 'against factional domination' 'of party organizations, and will go before the voters thb fall on their records as public officiab and as citizens. They have the courage of their convictions and to my mind are entitled to the undivided support of all the Republicans of thb community." Poiat Out Previous Defeats. A majority of the Republican nominees In public statements several weeks ago pointed out that in the last two elections the party had gone down to defeat because of Coffin iam domination of the party, and they called on the precinct committeemen to bring about a general reorganization of the party machinery free from any taint of factionalism. "We are interested in the outcome of the fall election." said their statement. "We are candidates for office subject to that election." We are net the slate picked candidates of a political machine, but the representatives of 'the Republican voters of Msrion county." action of the nominees served to insUll a new spirit of hopefulness into Republicans generally throughout the county and brought them pledges of support from thousands of Republicans who had lost interest in party affairs because of factional difficulties.

The new movement which being formed said to be the result of a widespread crystallization' of thb sentiment. Besides being president of the Hamilton Harris Company, Mr. Harris a former member of the Indianapolis city council and has been an active leader in various civic and social affairs of the city. He has been a resident of Indianapolb since early and few men in the. city, are more widely Mr.

Harris was appointed a member of the Indianapolis city council in April, 1S28, after several council members" had resigned Ymder fire, and seized throughout the remainder of the term. He is a thirty second degree Mason. Knight Templar and Shriner. and a member of the Columbia Club. Rotary Club, Indianapolis Athktlc Club.

Highland Golf and Country Club and Meridian Hills Country Club. He also an elder of the Presbyterian church, a member of the Indianapolb Art Association and the Board of Trade, and has been one of the active leaders in the Boy Scout movement in' the city. ARMS OPINIONS CLASH Geneva Report Shows Wide Variance Views Among Nations. GENEVA. May 21 (AJP.) A report containing' many divergent views on the question of what weapons are most offensive was.

adopted today by the naval commission of the disarmament conference. The report shows not only that the great powers differ among themselves, but also hold views on the most important points contrary to those of small nations. The American delegation describes the submarine as a aDeciflcallT offensive weapon, and regards battleships and aircraft carriers to be defensive. Britain and Japan agree with the United States on battleships, but most of the smaller nations denounce them as offensive arms. Japan defends and denounces aircraft' carriers.

BODY WASHED INTO CREEK Heavy Ralna Bring MiehigSa Mar der Mystery Light. MUSKEGON, Mich, Max 27 (UP.) Heavy rains of the last few days brought a murder mystery to light here last night when the rope bound body of Mrs. Edith Powers, age fifty five, was washed through a storm sewer into an; outlet In Ruddiman i '). Two men. going fishing, "saw the feet of the body protruding from the sewer.

Police were, notified and found the body of Mrs. Powers, who has been missing from home since May 1. A rope about her head passed over her making an effective gag. There were lacerations about her head and. officer said she appeared to have been beaten with a heavy ln airuioent faxv M'NAMARA IS FREED OF Federal Judee Criticises I Meth ods of Dry Agents SEARCH WARRANT FAULTY Liquor charges pending John J.

McNamara. former convict, were dismissed in against federal federal Robert district court Friday by Judge; C. BalUell. The judge, sustained a motion of defense attorney that the casej be dismissed because of a faulty search warrant used in raiding McNsmara's farm home near Portvllle. Judge Baltzell criticised federal agents for "putting themselves under guidance of horse thief detectives" in the case.

"As soon as agents learn to get cases prepared properly we will be able to enforce the prohibition law more effectively. he said. McNamara served ten years in a federal penitentiary in connection with the bombing of the Los Angeles Times building. i The judge added that there, was no doubt in his mind that McNamara was guilty, but that under the law he would have to acquit him. At the time of.

McNsmara's trial, May 10, the judge questioned the legality of the warrant under which the federal agents had seized a still and 300 gallons of liquor at McNamara 'a farm. The judge then also criticised the prohibition department for using Earl Hatfield, an officer of the Horse Thief Detective Association, in obtaining evidence in the ra.v. Judge Baltzell said he "didn't have much confidence la such detectives." McNamara was convicted in criminal court In 1925 for alleged sabotage in connection with the construction of the Indianapolis Elks building, but his appeal still is pending before the Indiana supreme court. Rich Sultan's Will Reopened to Include Forgotten Wives NEW YORK. May S7 (AP.) Hb Imperial majesty.

Sultan Uhmed Shah Kadjar, Persbn potentate, who bad so many wives that he overlooked two of them in drawing up hb will, has taken excellent care of those he remembered. Thb was disclosed today by the Guaranty 'Trust Company of New York, which as executor under the ruler's will, has filed an accounting with the surrogate's court in New York. In order to bring the two forgotten wives Into the legal fold, the New York bank had the will reopened for probate last June 18. The shah had ten wives. The report shows, the shah had S3.000.000 'in money and securities at the time of hb death.

In add! to in, hb Jewelry was valued at 1151,683.32. The shah designated the Guaranty Trust Company as hb executor in a carefully penned will, apparently drawn up unassisted just before his death. Most of hb securities were held In New York. T0KI0 PROPOSAL STUDIED Four Powers Dlsross Suggestion for Confefnee on WASHINGTON, Msy 27 tU.P.) The United Btstes. Oreat Britain.

France" and Italy. It was learned today, are carrying on informal conversations to formulate a. policy on Tokio'a propoeal for a conference on the Sln'o Japanese controversy. LIQUOR CHARGES RACERS INJURED; 'CARS DAMAGED' A race car driven by Milton Jones. Cleveland race accompanied by Harold riding mechanic from the same city, hurdled over the southwest wall of the Indianapolb motor speed wsy Friday afternoon, in the course of a practice spin.

Jones and Gray were taken to the City Hospital, where it was said that while their injuries were serious, they probably would recover. The machine, rounding the curve at high speed, went out of control and hopped the wall near the spot where Harry Cox, another mechanic, was killed late Wednesday when a machine driven by jumped teh outer wall. Lands en Fear Wheels. The machine piloted by Jones was entered in the race as a Jones Special. Jones had expected to attempt to qualify the machine for the coming race ''Friday afternoon.

The car bore the number 19. According to witnesses of the accident, the Jones machine landed In a grassy plot outside the wall" on all four wheeb. Only a few minutes before the Jones mishap another car was disabled in a practice spin. Ira Hall. Terre Haute dirt track driver, struck the northeast wall in hb Duesenberg and may be eliminated from the race as a result of damage to the car.

According to speedway officials, Hall was uninjured, but hb machine was believed to be damaged beyond. Immediate repair. Second Time for HalL Hall's machine was an eight cylinder Duesenberg with a rear drive. Speedway officiab said that Hall's ma chine struck the concrete retaining wall on the northeast turn of the two and one half mile brick course. His machine, the fourteenth to qualify for the race, was put through the ten mile qualification spin last Saturday, opening day of the elimination period.

Hb average speed for the qualification trial was 114.206 miles an hour. This speed would have entitled him to start the big race Monday with his machine occupying the middle position in the second row. In the eveut he does not start, the position will go to the next speediest qualifier, witc all others moving up the line automatically. It was the second time in the 1932 prerace activities that Hall's machine had struck the wall. Inasmuch as twenty nine other machines already have qualified for the grind, the disabling of Hall's car may increase the open field from ten to eleven machines.

YOUNG WOMAN KIDNAPPED BY BANDITS AND WOUNDED Bookkeeper Found In Serious Condition Alonr Read Shortly After Oklahoma Bank Holdup. MORRIS, Okbx, May 2 AJ0 Miss Claire Aggas, young bookkeeper, was found seriously wounded along a road east of here thb afternoon shortly after she had been kidnapped by three unmasked men who robbed the First State Bank here of $700 and fled in an automobile. A revolver bullet had crashed through her face. Her condition was described as "critical." Mia Aggua was wounded, it was "believed, when Marshal Compton enpaged the bandits In a gun fight ax they eecaped from 4ae bank. PAGE SUES TRUSTEES OF U.

FOR $15,000 Former Coach Avers Football Contract Was Broken, vv NOW ON CHICAGO STAFF Trustees of Indiana University were made defendants Friday, in federal court to a Si 9,000 damage suit filed by H. O. (Pat) Pa ge, former head football coach at the university who alleges a series of financial Inconveniences were caused by hb dismissal December 27, 1930. Page, who b. now attached to the coaching staff of the; University of Chicago, avers that 'was wrongfully discharged by Indiana University athletic board of control and in violation of hb contract with trustees of the school.

The dismissal, hb suit asserts, came at a time after he had received assurance of continued employment and in a period of the year too bte the making of an advantageous employment contract with any other school. The' suit, filed by the bw firm of Bingham St Binghanv said Page signed a three year contract with Indiana University trustees April 1, 192S, with an understanding that' It would be continued after April 1929. at the salary of 1 12. WO for 1930. A communication from the trustees to the athletic board of control was recited in part: "In view of the moral opposition existing by reason of the approval of the three year contract the trustees recommend to the athletic board of control that it assure Mr.

Page that this employment will be renewed orj extended for two additional years with an increase In salary of SS00 each year," except In of Incapacity." Thb recommendation was made June 20, 1929, by B. F.iLong, Ora I Wldermuth and C. Xfeizer, members of the trustee's, board, the suit says. Page's suit alleges that because the board of athletic control repudiated the 1931 32 contract he was "only able to find employment at $8,000 a year," that thb occassioned a $7,500 annual loss of income; that he was forced to move hb household to Chicago at the cost of $500; that it costing him $250 a month' to sustain hb family there; that because hb home in Bloomington had not been rented to other tenants he had suffered a further loss of $4,000, and that hb family had been forced to live in quarters less commodious than afforded by the Bloomington home, causing further damage of $1,500. KIDNAPPED GIRL RETURNS Released by A rawed Abdoetor Who Took Her From Eseort RIVERSIDE, CaL, May 27 (UJ.) Mildred Cutler, attracUve twenty year old daughter of Chester Cutler, constable of Perrb, Cal who was kidnapped after her escort, was forced to leave her, returned home today, her father reported.

A Miss Cutler said the armed kidnapper took her to the edge of the city and then got out of the automobile. The girl drove the car home. shaken but unharmed, i Kidnapping Note Dropped From Car. CHARITON, la May 27 (AJ4 Authorities were confronted with the possibility of a new kidnapping mystery today when a note thrown from a speeding car was recovered at an oil station six miles east of here. The message read: "Help me.

I am in trouble. am in the hands of some horrible men. Five men. Three women." My sge in fifteen. June Stone." The scrap of paper bore the letterhead of a Des Moines firm.

it NEW YORK, May 27 (A.P.) Walter Herrtck, park commissioner, testified thb afternoon before the Hofstadter committee that he bought for Mayor Jsmes J. Walker and with the mayor's money 300 shares of Interstate Trust Company stock, which was Issued tn Herrick'a name and part of which was posted as collateral for a loan to the Equitable Bus. Company. i. Walker denied on the aland yesterday and Wednesday that he had ever owned the! stock, directly or indirectly.

Just before Herrlck took the stand. Samuel Seabury, committee counsel, in reply to a motion by Democratic members of the committee that all testimony taken since April 2S be stricken from the record, said Walker's testimony had been "vague on all points" end Russell T. Sherwood's "flight in the face of accusation some evidence of guilt." Both Sea bury and Walker are Democrats. Crowd Friendlier to Seobnry. Although the courtroom was less crowded than it was yesterday and whue Walker was on the stand, all seats were taken.

Today's crowd apparently was more friendly to Seabury than the crowds of the last few days. He was cheered several times in hb summary, and the Democrats who objected were hissed. "There no reason, Seabury said, "why Sherwood should fear investigation if he were the agent of others. He knew he waa being investigated in relation to the mayor Seabury insisted it stands in the evidence that Sherwood had a joint safe deposit box with the mayor; he aald. 'we nave the statement of the unsupported by evidence, that, although It was" in their joint names, nothing went into It.

1:. ''In addition we have proof showing that Sherwood and had been for many years, the agent of the mayor, and that in a written application for a position he said he was an accountant and 'ConfldenUal secretary at $3,500 a gl.SSe.SS Aeeotiat Alleged. have evidence that from January 1, 192S (the date Mayor. Walker went into office), until he fled, nearly 4t.O00.0O0 went into Sherwood's accounts. i "You have undisputed1 evidence that William Scanlon got $10,000 commission on a city contract, and" that $8,000 of it went Into the account of Russell Sherwood.

1 "You have' the msyor's testimony that he could Imagine no reason why any one should pay money to, Sherwood. You have the circumstances of the letter of credit, and you have the Sbto matter, undbputed end undented on the record, that those bonds were given the mayor, as was shown by Sisto's and McKeon's testimony. "The mayor registered a mental reservation," Seabury added. "He said that, if the stock went down. he'd make good.

That reservation was contradicted by Sisto and McKeoo." Seabury referred to. testimony that John J. McKeon delivered in bonds to Walker; from J. A. Sisto, banker heavily Interested in a brge taxlcab company.

Walker's B1U Herrlck asserted J. Norrb Oliphant. a broker, suggested to him it would be a good thing to buy Interstate stock. Oliphant. Herrlck said he wished twenty five shares for himself and suggested that Herrlck take an equal amount.

"He suggested I might be able to ConUnned oa Page 1. Part Tu WEATHER INDICATIONS UJOTTD 8TATX3 WXATHIR BUREAU. ladianapolU. Mar 27. 183.

Temperatttro Mar 183L Mar 27. 1932. 7 m. I 7 a. I.

a 7J i a. aw i i rtammfrfr 7 a 29 eo 1 9. 3f. ladianaiwlii, Vtclnltr MoaOr aloud toaisbt. bacomiac fair Saturday; cooler.

Indians Partly cloudy tonlsbt. Saturday; cooler. Kentucky Fair UaisbU Saturday: cooler tonlsbt and eaat Saturday. Onlo Generally fair and aoolar to kaht and Saturday eaceat arooably abow era near Lake Srta tootahC Lovtr MicBlaan CntOed tool tat Saturday; arobably leeai ralaa; cooler tonlsbt except aloat Lake Michisaa and ex treats aorth: coolar Satmrday aoUtcaC Frectpitatton for twenty fotir bours end. Inc at 7 a.

.13 of aa Inch Total rettUtlon ainco January I. 193X 12 S3 Inehea. Deficiency atnea January L. 1S32. 3.74 inebca.

Waatbcr Otoer ClUaa The following table abowa the ataU of weatfcar tn other cittea at a. Station. Wrather. Bar. Temp.

Amarllto. Cloudy 30.10 Bismarck. 8. Rain 30 31 3i Boa ion. Maaa.

29 S2 CThleaeo. IU Cloudy 29 it EinclnnaU PtCldr 29.9 anvar. Colo. ..4 Rain 30.14 4 Dodra City. Blai rtCldy 90.90 SO Helena.

1ont. Cloudy 30.20 42 Jackaoatilla. Clear 30.04 7 Kanaas City. MCldy 3015 4S Uttio Rock. Rain 300) 64 toa Anaelaa, Cloudt 29 92 cieuay.

39 aa i mh)U nmiu New Orleana. Rain New York. H. Cloudy Okla. CU.

Clear Omaha. Cloudy. PittJbursb. Cloudy Portland. Cloudy San Antonio.

Clear Pan PTaneleo. Clear Bt. Loui. Mo PlCldy nt. Paul.

Rain Tamna. Pla. Cloudy TVahinton. D. C.

Clr ju.w in 39 9S 70 39.94 fS 30 OS 6 30.20 40 39 a Tl 30 PS ftO 29.S8 ri0 JO 4 30 02 J.R 0 74 ja ao 74 AHMINOTON. Meuorloalt. Roarty Taaaralra. 4 1 a. a a.

JT a. la a. 11 a. n. 7' 12 74 in.

7 "5r Allegations ot the Indlanapolli Water Company that "compromise rates of April 'irould cause it a. 100.000 annual loss of revenues, even including Increased rates to approximately 25.000 consumers, and tberef ore action should be taken by the public service commission Increasing all rates above former levels, failed Friday to gain any verification from commission accountants. An Interrogation by Howell Ellis, member of the commission, of accountants ho attempted to analyse consumer and revenue effects of the' "compromise" rates as applied In April, produced the information that Water Company officials dictated the' methods by which the investigating; accountants were forced to work and banded to them consumer and rv enue figures prepared I by the com pany's own accountants Commissioner Ellis, who attempted, early in April to have the eommix aion mske a thorough audit and check of the Water Company's books and records to ascertain the effect ef the April a closely Questioned Webb Gilbert, chief accountant lor the commission, and two of his assistants, regarding a report on fis ttres which the utility off iclala hare announced to the public as showing revenun loaaea that ara anfftrlont ask for a general increase of rates. 1 Asaertlons Not Sepported. Assertions of the Water Company ku wuuui a vevrcnaa iu i eve niies as result of the April rates was that 6S.I pet cent, of the consumers in April received reduced bills and that a court Injunction restraining the collection of increases In the schedule would result in a 1200.000 annual lnui In rmtrniM not supported by any Independent investigation made by commission accountants, the investlstlon by Illls disclosed.

Gilbert testified before vComm stoner Ellis that all figures on the number of water consumers, classes cm Apru consumpiwn ana quantltlea of water consumed were given to the commission accountants by' Water Company; officers, who proteated against any full snalyMs of these figures in detail from their books and who later Instructed the eommlalort accountants on the manner they At sired the record cf minimum consumers to be analyzed. Gilbert said hia mea were pernuciea omy to rpot checlrt some vjf the figures snd this they' then completed their report by' applying simple mathematical ealcuv lstlons. any member of the commission, yourself ot any Interested person, wished to know the effect cf these inc jot a.prrioa oi one year, could, they ascertain such information from this Ellis asked Gilbert. have' to say no." Gilbert re. Plied.

Y. "As a matter of fact, you could have made all these jnathe matical computations in your office here In the Statehouse without golnf trm W.I.. couiun a jou7 auis asaea. "Yes." said Gilbert; we had the consumer data." Data Net Available. Ellis made the point that the (er Company did have in Its.

possession tuusumtT una ior on woicn wis effect of the April 1 rates could ha been calculated, but, Gilbert said, these were not available to the commission examiners. The further point was made that April was sot a typical month, by. which water consumption fcr a whole year could be Judged. Gilbert verified this from his knowledge of reports to the commission fQed by other water "Were the revenue figures on which vou baaed thla rvnart taken in an wsy from the earnings records of the company?" Ellis asked. 'The total earnings of company for the month was to us In a lump sum by the company GUbert repUed.

"But did they give you the earnings by classes of customers?" the commissioner asked. Gilbert replied neg. atively, adding that the actual revenue sum had not checked out with the consumer figures given to the accountants by the company and to which mathematical computations of old snd new rates had been applied. 1 rt doesnt take an expert accountant, does It. to do the simple mathematics represented in this report?" asked CUs.

Gilbert said it did not and that the task of analysing the April rate, effects had been made easy by the company supplying 100 per cent, of all the consumer and consumption facta and doing 25 per cent of the actual calculations. a a iv. IV.a na vkm hi in way," said Gilbert, "and for two et three days were taking consumer urea off the company's books. And then, some official of the Water Company called commission and we were ordered to take their figures a nd to spot check thm. "In your check here and there rf their figure, did you find any errors?" aked Ellis.

VYes." Gilbert rtplii'd. found a number of them. "When next did you httt fmr CoviUaoed oa rage it, Tart 1.