The Indianapolis Star from Indianapolis, Indiana • Page 1

THE II UNBAY STAR. CENERAL NEWS TELEPHONE Riley 7311. GREATEST MORNING AND SUNDAY CIRCULATION IN INDIANA. RAIN AND COLDER. VOL.

31. NO. 216. SUNDAY MORNING, JANUARY 7, 1934. Kntered as Second-Class Matter at Post Office, Indianapolis, Ind.

Issued Daily and Sunday. TEN CENTS. 14 U.S. EIGHT PARTS TOIANAPOLIS KUiraSL SEE WE DO OUR PART Senate Fight Forces Treasury Aid to Quit IIMAC9MT CAUGHT WITH SIX III CHIME I fM Grocery, Automotive and Department Store Lead Retail Business in Indiana Clothing and Shoe Dealers Way Down Line in Income From Trade Food Volume Far Largest. Sport Flashes.

Indiana and Purdue both win their opening clashes in Big Ten basketball race, the Crimson defeating Michigan, 2Q-18, and the Boilermakers winning from Minnesota, 45-30. WATSONREFUSES TO ENTER FIGHT FOR HOUSE SEAT BAILIE RESIGNS AS IFffllll VOIE IS HELD UP This is the fourth of a scries of articles on Indiana business written by Clarence A. Jackson, director of the state gross income tax division. In the articles, authentic figures obtained from com-inlation of gross income tax returns are used for the first time. If some one were.to ask you out of a clear sky to name the three largest- groups of retailers in Indiana you would be very lucky, indeed, if you could select more than one of the three.

Until very recently, your selection might have been as good as that of anyone else, because no one knew exactly what the volume of retail business In the- state amounted to in any particular classification, or how one group compared with the others. grants mm MEMORIAL 11 Dillinger Gangster Surrenders as Leader of Kidnapers Dies in Gun Battle at Suburban Hideout. CHICAGO, Jan. 6. (-T) Walter Dietrick, escaped convict and one of the notorious John Dillinger gang of outlaws, was identified tonight as one of tho seven persons arrested at the hideout where Theodore (Handsome Jack) Klutas, kidnaper, was slain by police.

Dietrick, arrested in the bungalow which had been Klutas's headquar ters for the last few days, first gave his name as Paul Stroud, 29 years old, St. Louis, Mo. He was identified, police said, by fingerprints as one of the ten convicts who escaped in prison break at Michigan City (Ind.) penitentiary several months ago. Authorities here, bent for weeks on the capture of the Dillinger gang, immediately sought to determine if any of the others held were members of the mob. Klutas, leader of a widely sought mid-West kidnap band, was shot and killed in a police trap today at a suburban cottage where he had been living under the guise of a secret service operative.

Five persons were apprehended and taken to headquarters from Bellwood where the trap was laid. Klutas fell in a barrage of police bullets when he attempted to dash to freedom from the bungalow which had been under the surveillance of state's attorney's police for ten days. Today police received definite word that Klutas was in the quarters. A squad under Police Lieut. Frank Johnson went to the house and first arrested two men, who, State's Attorney Thomas J.

Courtney said, revealed details of the gang leader's hideout. Band Opens Fire. Other members of the squad deployed about the building. Finally, Klutas and two others came out. Johnson yelled at him to surrender.

In reply, Klutas's pistol barked. Johnson's squad opened fire and Klutas fell with bullets splattered through his body. Inside the- place police found a quantity of tear gas bombs, weapons and other materials. The shooting occurred across the street from the home of Police Chief Henry Eggebrecht of Bellwood. Klutas, to explain his sudden comings and goings, had told his landlord that he was a government secret service agent.

The slaying of Klutas climaxed a seven-year search for the former University of Illinois student who left the campus to head the notorious "collegiate band," named in nearly a dozen kidnapings and extortions which netted more than half million dollars. Three Held as Kidnapers. Melvin H. Purvis, head of the local police of the United States bureau of investigation, described Klutas and his henchmen as the "smartest" gangsters in the Three members of the gang previously apprehended are due to appear in court next week for their alleged participation in the abduction of Turns Down Plea He Oppose Robinson for Senate Mc-Nutt Candidate Yet to Appear. BY MAURICE EARLY.

James Watson, who has been boosted for the Republican nomination for representative in Congress in the Tenth district, has definitely taken himself out of the picture The former Senate leader visited several sections his home district during the last few days and advised all his political allies that he would not seek tho nomination. Immediately several in the long list of prospective candidates in that district started making formal an nouncements of candidacy. Might Have Become Speaker. Had Watson decided to seek a return to Congress through his old home district the fight would have become one of national importance It would have meant that Watson, if successful in the district, would have become a logical aspirant for the speakership should the G. O.

P. capture control of the lower house of Congress. The announcement of the former senator taking him out of the congressional race has caused some speculation on the possibility of him entering the state convention next spring as an opponent of Senator Arthur R. Robinson. In the many political conferences Watson is having at the Columbia Club, he has put his foot down on this talk.

Wouldn't Accept Nomination. "I would not have tho nomination for United States senator if it was given to me without opposition," Watson said. "I was beaten for that office." Nevertheless many of the old-tim ers, in the party are whispering in the ear of Watson that Senator Robinson will not do and that some one else should be picked for the nomination. They insist Robinson can be beaten in the state convention regardless of the bloc strength he has built up in the state. Much of this advice being given to the former senator, however, comes from Republicans who were never fond of Senator Robinson.

Would Be Only Source. The argument that Indiana re turned a large wet majority in the constitutional election last June is being presented as one reason why the Republican party should not offer a candidate for the senate who is a known dry. This is the one thing that might cause opposition to be pitted against Robinson. So far there has been no hint that such opposition will come forward, but there are a number of party members willing to make the plunge if they can be given a reasonable degree of assurance that they will have a chance in the convention. Watson explains that his present activities are limited to helping the boys get the strings of organization together in preparation for the 1934 campaign.

He believes the Republican organization in the state is in good shape in spite of the two defeats. No move has been made by the CONTINUED ON PACE TWO. Today 82 and Dying, So What? Does He Know the Words? Sarazen Will Fly. Good News Blankets Bad. By Arthur Brisbane- WHAT would you do if you were 82 years old nd your doctor said "you can live only a little while?" Some would say, as Luigi Cornare did, "I shall fool that doctor and live." Others would say, "If I must die, let me spend my last night alone looking up at the sky and the stars, that I shall soon be visiting." Still others would say, "Is there anything more that I can do, before I go, to help and provide for those that depend upon me?" W.

land, "vou J. A. Grant of Exeter, Eng-was 82, and the doctor said are going to die soon but Mr. Giant didn't do any of the things suggested. Instead; he gave an all-night champagne supper party, inviting interesting people, including Elinor Glyn, who wrote "Three Weeks," and pleasing dancing girls, saying to them, "I am having my final kickup." Perhaps you expect to read, "When the mad revelry was at its height, the old man suddenly pressed his hand to his heart and expired." He did not.

He got up next day feeling well, and the doctor said he wa3 much better. If you are 82, this should not persuade you to "throw" a champagne party. This incident is related only to remind you that sometimes things work out strangely. Dr. Eosenbach bought the manuscript of the "Star Spangled Banner" for $24,000, doubtless got a bargain, and you wonder several things.

Does Dr. Bosenbach know all the words of the "Star Spangled Banner?" If so, he knows more than a majority of Americans know. Were 'we jackdaws in former in carnations, that we should have such a fondness for collecting things, on iects that we can see and touch? A white traveler in Africa, having rifl to a native chief for many elephant tusks, later found the chief on his knees, praying to the rifle. He thought he had bought the white man's power. You can understand that a man might like to own the copy of the Iliad that Alexander carried around in the gold box that he took from the Persian King, or to own the copy of Montesquieu's "Spirit of Laws with Voltaire's sarcastic notations written on the margins.

But whence rnmes the fondness for collecting manuscripts merely as manuscripts? Gene Sarazen, the young Italian American golf champion, sets a good example in deciding to take up ine. With his nerves perfectly con trolled and his skill and courage, he might live to sink an enemy battle ship, or help make some enemy city wish its government had not been foolish enough to attack the United States. More and more patriotic young men will be impelled to learn the art of flying. And more and more, let us hope, the government of this coun try will give to those who want to learn the opportunity to There is always good news to make you forget bad news. Today's good news tells of a "measles that will save millions of children from suffering and many from death.

Science discovers that the blood of adults formerly afflicted with measles carries antitoxins and yields a serum that wards off measles entirely, or substitutes a mild attack. Severe attacks often have caused permanent physical defects, or ended fatally. Sixty-two volunteers, nearly all parents with young children, have contributed each up to three-quarters of a pint of blood to make necessary tests. The President asks Mr. Douglas, director of the budget, to see to it that emergency expenditures are made wisely and that the people, whose taxes must pay for those expenditures, get reasonable value for their money.

It is disappointing to find Senator Norris of Nebraska, one of the best men in American public life, objecting to the President's order and saying, "it does not sound good." Why? Should not those who accept the people's money give good service for it? Should not those who distribute it do so honestly and judiciously? Above all, should not all those who work on the public emergency pay roll by results of good work support the President and his generous policy by doing their best, really working and not dawdling? Copyright, 1934, KlngKeaturesSyndlcate, Inc. German Council Bans Advertising Over Radio BERLIN, Jan. The economic advertising council announced today that all advertising must be eliminated from German radio. "Radio serves as a public propaganda instrument only for the German people," it was explained. 7 7 7 7 7 SLAIN, CAPTURED.

JOHN (HANDSOME JACK) KLUTAS. WALTER. DIETRICH. 1933 LICENSE TAGS GOOD ON CARS TODAY No Arrests Until Tuesday- Then Supreme Court Decide. Hoosier week-end drivers will not be molested if they still have their 1933 automobile license plates.

Although no arrests will be made today or tomorrow for failure to have new license plates, the zero hour may arrive Tuesday. Preparations were being made yes terday by state officials to ask the Indiana Supreme court to issue a writ of prohibition to prevent Judge Joseph R. Williams of the Marion county Superior court from enforcing his restraining order prohibiting au thorities from arresting automobile drivers for failure to have 1931 plates. Writ to He Filed. Judge Williams issued his restraining order Friday.

It restrained police from making any arrests prior to Jan. 15, when a hearing is to be held on the question of a temporary injunction. Edward Barce, deputy attorney general, was preparing the application for the writ of prohibition yesterday, but was unable to complete its preparation for filing yesterday. It will be filed tomorrow. Meanwhile, those driving with last year's license plates will be safe tem porarily.

Thomas B. Pannell Dies; In Politics for SO Years OWENSBORO, Jan. Thomas E. Pannell, 74 years old, for half a century active in Democratic politics in Kentucky, died today at his home here. was wounded in the foot.

A companion of Gilbert who shot George Meara, a local automobile salesman, in the leg, escaped and has not been apprehended. At the same time Gilbert was sentenced this afternoon, Herschel (Peach) Howell of Indianapolis, driver of the bandit car, also entered a plea of guilty to the charge of being an accessory before the fact in connection with the robbery and received a term of ten years in prison. Judge Fred E. Hincs of Hamilton Circuit court, before whom both defendants appeared, heard no evidence, pi." uw- 'LA J. NpV, 1 Vf Notre Dame wins triple overtime contest from Michigan State, 34-33.

Tommy Armour blazes trail with sparkling rounds of golf to take lead in Miami open tourney. DETAILS IX SPOUTS SEC TIOX. I Drastic Breaks With Old De signs Feature Streamlines, Speed, Vivid Colors. NEW YORK, Jan. 6.

(U.P.) The most startling designs in automotive history were disclosed today at the opening of the thirty-fourth annual national automobile show. The step forward from models which were sensationally modern in 1933 is breath-taking. Gone are the inhibitions. Splashes of color will dot the nation's road ways this year. These splashes of color will cover the most extreme streamlining that has ever been at tempted by motor car makers.

Top to bottom, bumper to tail light, the motor car of 1934 has undergone a change. Bustles, Spats and Skirts. In the modernistically decorated Grand Central Palace, 250 new mod els including one foreign car, the Italian Lancia were wheeled out for public view this afternoon. The public looked, asked the prices, which were higher, and then gave general approval to the breaking away from tradition of motor car design. There are bustle effects, spat ef skirt effects and speed effects.

There are new names veering to ward the airplane. Power and More Power. There are colors that range from the brilliant hues generally associated with fire engines to the pale shades of the mauve decade, and then to the accepted blacks and blues. There is power and more power. Speed and more speed.

Comfort is one of the keynotes. Knee-action, during fall months gen erally associated with the football field, has invaded the motor car industry. General Motors Corporation has charts, tables and chassis to show how the innovation will work. Innovations AH Along the Line. The ultimate in streamlining is in the new Chrysler and DeSoto, with hoods that open from the front and lift bacu, making a suDmarine enecc for the car.

Packard maintains the boat-shaped radiator, but has streamlined the car with great sloping fenders, skirts for the wheels and long, powerful lines. All along the line there are innovations. Studebaker, Graham, Hudson, Nash with its new low-priced car, the LaFayette Pierce-Arrow, Auburn, Lincoln, Reo, Hupmobile and others, have wheeled models on the floor that cast into oblivion the designs of the past. Then There Is Ventilating. There is knee room.

Seats are built so one can actually recline and where three persons can sit in one front seat without going on a thirty- day diet. Luggage compartments are meant for luggage. Dashboard gadgets are fewer and bigger. Radios are hidden away in recesses. One feature is ventilating.

It comes from many sources windows, cranks, cracks, etc. and it is ventilation intended to be antipneumonia. Little Nooks for Vanities. Some of the models, in keeping with repeal, feature cellarettes. Many of the ash trays have disappeared.

few of the more swank town cars feature little nooks for vanities. One car is gold unsold. Thousands wandered in to see the show this afternoon, instilling further confidence in a motor car industry that already is jubilant over prospects for 1934. Other thousands visited the private salons over the city where individual companies have pushed their show cars into main foyers of hotels for further display. 20 Passengers Injured as Bus Hits Culvert TAMAQUA, Jan.

More than twenty persons were injured tonight when a bus of the East Penn Transportation Company en route here from Coaldale left the road and crashed into a culvert. nn RULE AU I Chamber Postpones Con firmation Over Assistant, Member of Investment Banking House. WASHINGTON, Jan. 6. (-T) The last senatorial objection to the con firmation of Henry Morgenthau Jr, as secretary of the treasury was re moved today by the resignation of Earle Bailie, who he brought into the department as a special assist ant in charge of fiscal affairs.

While the Senate finance commit' tee voted favorably on the Morgen thau aDoointment this week, such forcible objection to Bailie's con tinuanCe was raised by Senator Couzens Michigan) that a Senate vote on confirmation was postponed to keep the controversy from flaring up on the floor. Bailie's integrity was not ques tioned in any particular, the objections being based upon his previous and continuing association with the New York banking firm of J. and W. Seligman which, Couzens con tended, had floated several issues of foreign bonds now partially or wholly in default. Becomes Effective Soon.

While Morgenthau said only Tuesday that he expected Bailie to continue working with him on the temporary basis upon which the latter entered the department, the secre tary today announced that he had accepted his resignation, submitted hv lnttRr to become effective at Morgenthau's convenience before the end of January. Bailie's communication called attention to the understanding that his services were to be temporary and said that due to the recent death of a senior partner in J. and W. Seligman he felt he should devote his entire attention to the affairs of the firm. Because of Bailie's long experience in the investment banking -field, Morgenthau's plan was for him to take active charge of the vast borrowing operations which the government must undertake in the next six months, and for which plans were said today to be advancing.

Ten Billions Will Be Needed. To pay the costs of the recovery program government securities totaling six billion dollars must be floated, President Roosevelt reported to Congress this week, and an additional four billions of government paper must be issued to meet an equivalent amount of obligations ma turing before June 30. Bailie, in his month and a half in the department, has also been in close touch with the development of the President's monetary program, with which he always has professed full harmony. When the Morgenthau nomination was brought up in committee, a dif ficult problem arose. Members of the Democratic majority held no ob jection to his confirmation but sev eral of them felt as Couzens did about Bailie and looked upon the nomination as an.

effective way of approaching the question. Didn't Want to Go on Kecord. However, they did not want to go on record as opposed to confirming CONTINUED ON PAGE TWO. WEATHER FORECAST Jim Crow says: ber, a license tag on your automobile is much better than good excuse these days. Forecast for In diana for Sunday and Monday: Rain Sunday, probably changing to snow by afternoon or night, colder, considerably colder at night Monday generally fair.

Forecast for Indianapolis and vicin ity for Sunday and Monday: Rain Sunday, probably changing to snow by afternoon or night, colder, considerably colder at night; Monday generally fair. United Slates Weather Bureau Special Report for The Indianapolis Star, ALMANAC OF THE DAY. Sun rises 7:07 I Sun ets 4:36 WEATHER CONDITIONS YESTERDAY. Relative Humidity. a.

m. 87 pet I Noon 82 pet 7 p. m. 78 pet Precipitation. Amount during twenty-four hours ending at 7 p.

Total amount since Jan. 1. 1934 Accumulated departure from normal since Jan 1 (deficiency) Temperatures. a. m.

42 Wet 40 44 Wet 41 p. m. 44 41 .00 .31 .41 48 40 For the Same Date Last Year. a. 34 I Maximum 5B p.

m. SO I 31 A Statistics of the gross income tax division are a long step toward accurate reflection of the situation in the retail field. This is true because every retailer with sales of more than $1,000 a year is a gross income tax payer. Therefore, the total receipts compiled by the gross income tax division for the retail trade are the most accurate ever put together concerning any large business group in the state. Grocers Are Most Numerous.

To get back to the question, "What are the three largest retail groups in Indiana?" every one would mention grocers amopg the three, and to that extent, at least, every one would be right. The grocery business is by far the largest in the retail field, a volume nearly four times that of others long believed to be among the leaders. But what is the second largest? Here is a question that only a very few would be able to answer properly. From the gross income tax receipts the answer appears. It is the automotive business.

While the total receipts of all food stores amounted to $28,140,246.65 during the months of May and June, the automobile dealers, garages and similar places of business had receipts totaling If you still feel like guessing, try to pick the third group. What happened to the clothing stores, the shoe stores and others which for many years, have been considered among the principal retail businesses? Here is a big surprise. Tho total of all business done in clothing stores and shoe stores combined, according to the gross income tax statistics, was only about one-fifth that done by grocery stores alone. The receipts of drug stores in May and June amounted to almost as much as the total business of clothing and shoe stores. The third largest type of retail business in the state is the depart ment store.

A total of 114 such establishments reported receipts of $6,540,460.70 for May and June. The next largest in receipts were the drug stores; their business amounted to $4,134,914.43. Next in order come the lumber and building supply houses, hardware, implements and machinery, furniture, shoes, and finally men's and boys' clothing stores and womeh's apparel and accessory stores How Dollar Is Spent. The average dollar spent by a Hoo-sier citizen in retail stores in May and June, according to the figures, would be distributed about like this: One-fourth for food, one-fifth for his automobile, one-eighth for general merchandise, one-sixteenth for clothing, one-twentieth for drugs and other things sold In drug stores, one-fortieth for fuel and ice, and the remainder miscellaneous. Out of this same dollar, less than one-half of one cent would go for jewelry, but even then the jeweler would get three times as much as the proprietor of a sports goods store.

If a young man Is not ready to match wits with a host of competi tors he 1. id better stay tut of the retail grocery business, for 6,229 grocers, including those having combination grocery and meat stores, made income tax returns in July. This was one grocery outlet to each 519 of population and considered a chain of stores as a unit. The three largest grocery chains have a total of CONTINUED ON PAGE SEVEN. THE STAR TODAY Consists of 8 Parts Part 1 General News, Building News, Radio, Automobiles and Amusements.

Part 2 Sports and Financial News. Part 3 Society. Part 4 Want Ads. Part 3 Editorial, Art and Features. Part 6 Magazine.

Part 7 Alco-Gravure. Part 8 Comics. PWA Allots Money for Completion of Interior of Shrine. Indianapolis Star Bureau, 1397 National Press Building. WASHINGTON, Jan.

public works administration today made an outright grant of $192,000 of Federal money to the trustees of the Indiana World War Memorial, Indianapolis, to aid in completion of the interior of the shrine in Building which is the main building of War Memorial group. No loan was requested. The allotment represents 30 per cent of the cost of labor and ma terial on a project of which the total cost is $676,000. Employment for 230. The balance will be supplied by the application from other revenues.

The $192,000 grant does not have to be repaid to the works administration. It is said work can be started within one week and completed in eleven months, giving 250 men employment during construction. AUDITORIUM TO BE FINISHED, Remainder of Building Fund to Be Raised by Loan. John Napier Dyer, vice chairman of the Indiana advisory board of the public works administration, an nounced last week that the govern ment grant towards completion of the Indiana World War Memorial shrine would be made. The balance required for comple tion of the project will be sought from some other source, probably the reconstruction finance corporation, as such a loan would be guaranteed by the state tax levy of 4 mills which will last through 1935.

Work to be completed on the shrine, which was dedicated last Armistice day, includes the finishing of several rooms in the lower part of the building, which eventually will be used to store historical data and as meeting rooms for patriotic societies, and an auditorium which will seat 600 persons. The T. A. Moynhan Construction Company, contractors, had originally sought to obtain the entire amount from the Federal government under the public works grant. Paraguay Will Resume Warfare as Truce Ends BUENOS AIRES, Jan.

6. T) Paraguay officially announced tonight, said advices from Asuncion, that warfare in the Gran Chaco would be resumed at midnight and that the eighteen-day armistice with Bolivia would not be extended. A last-hour suggestion for prolongation of the truce was reliably reported to have been sent to Paraguay. Soldiers stood to their arms prepared to recommence hostilities interrupted Dec. 19 by a truce obtained through mediation efforts of the Pan-American conference and a League of Nations conciliation commission.

Blue and Desperate, Singer Ends Her Life ST. LOUIS, Jan. 5. (U.P.) Tb'e body of Mrs. Mary Louise Mi-lano, former opera singer, was found in the home of a friend here today amid programs and newspaper clippings revealing that she was a former member of the famous LaScala Opera company.

In a note left on a dresser, Mrs. Milano wrote, "I am blue and desperate. I feel I am going crazy. I want to die." She shot herself. Depression Hits Bottom; Scots' Bagpipes Pawned TORONTO, Jan.

6. C--The economic depression is figured to have reached its low here on Aug. 22, 1932. The evidence came to light today in an item listed in a pawnbroker's auction sale: "Lot 15,676 bagpipes, Aug. 22, '32, $10." That was the day a Scotsman Dawned his bagpipes.

Holdup Man Caught by Noblesville Mayor Gets Bride and 25-Year Term Ceremony Takes Place in County Jail Companion Sentenced to Serve Ten Years. James Hackctt, Blue Island gangster. Another reputed associate, Russell Hughes, was slain two months ago in Peoria, 111., Klutas's original home. One policeman was slain as Hughes sought to evade arrest. Two other alleged members of the gang, Eddie Wagner and Eddie La-Rue, were indicted along with the three scheduled to go on trial Monday for the Hackett kidnaping.

They have not been captured. A quiet campaign by police resulted in the apprehension of Frank Souder, Benton, 111., Julian Jones of St. Charles and Gale Swolley of Peoria as members of the Klutas gang some months ago. They were held in private imprisonment while officers questioned them and one, according to police, filially "talked." Prisoner Tells of Crimes. He described, officers said, many operations of the gang from its first kidnaping, that of William Urban of Peoria, on through the abduction of James Ward of Hackett, their No.

3, and revealed that "the brother-in-law of a nationally-known politician also 1 was on their" roster. Jones had pleaded guilty to the second kidnaping of Ward for which the gang was allegedly paid $1,500 and will receive a separate trial from his reputed confederates. For others, Assistant State's Attorney Mai Coghlan today announced, the prosecution would ask the death penalty. Hackett's first kidnaping in May of 1931 brought, according to reports then current, a command from the then acknowledged overload of Chicago's underworld, Capone, that the abductors release him. But tho COJilLXEE OX PAGE XW.

Special lo Tha Indianapolis Star. NOBLESVILLE, Jan. 6. After being sentenced to twenty-five years in prison late today on the charge of robbery, Lester Gilbert of Mitchell was married in the county jail to Miss Geneva Byers, daughter of Boone Byers, a farmer living near Bedford, the ceremony being read by the Rev. G.

E. Jones, pastor of the Noblesville Presbyterian Church. Miss Byers came to Noblesville this afternoon because, she said, it was her wedding day. "Lester and I were to have been married today at papa's home," she said, "but he got into this trouble and couldn't come to me, so I thought I would come to Noblesville and carry out our nuptial contract." Gilbert attempted to hold up the drug store of Mayor W. Gifford, Tuesday night and following a fierce fight was captured by the mayor and his 17-year-old son, William Gifford Jr.

During the struggle, in which several shots were fired, young GiffotJ.