BOY, 7, DEAD;
On Way to Grocery With
Nickel in Hand, Lad Is
BODY LEFT IN STREET
North Side Tragedy Occurs
at Dusk as Victim Is
Anxious cries of ‘ Dickey" echoed
through a. northside home today as
a girl of 3 searched in vain for her
playmate brother who is dead
victim of a hit-run auto driver. The
dead child is Richard Lewis Red
man, 7, son of Mr. and Mrs. Max
Redman, 2007 College avenue.
He was killed instantly Thursday
night beneath wheels of an auto
while going to the grocery for his
Police are without clew's of iden
tity of the killer.
The death raised the traffic toll
in Marion county for the year to
Unaware of the trag
edy, the lad's rister,
Beverly Ann, 3, climbed
from nkr bed early to
day and pattered down-
at airs calling for “Dickey.”
A broken-hearted mother met the
child, lifted her from the floor.
"Dickey is gone, Ann,” she
“Dickey” left the home Thursday
night at dusk for the grocery with
a nickel in his hands. The child
wanted a certain kind of soup for
his dinner, the mother said.
Within a few minutes a motorist,
Frank Herider, 34, of Evansville,
turned the corner at the intersection
of Twentieth street and College ave
nue. Headlights of the car fell on
a prostrate body in the center of the
Body Found by Motorist
Herider halted his Gar as Charles
Monroe, an uncle of the dead lad,
/stepped from a street car.
A crowd gathered and the body of
the child was carried into a drug
store. The uncle followed, identi
fying the body of the child on first
Police could find no witnesses to
Anxious at the long absence of
the child, Mrs. Redman put on her
hat and coat to go in search of him.
She was met at the front door by
the uncle, who carried the death
The child's crushed body was
*ent to city hospital as police
searched in vain for clews of the
death car. None had been found
Funeral Rites Saturday
Mr. Redman, an auto salesman,
Is pianist in Denny Dutton’s or
chestra. He was notified of the
death when he returned from his
Survivors are the parents and the
sister, and grandparents, Mr. and
Mrs. George Smith of Greensburg,
home of Mrs. Redman, and Mr. and
Mrs. William J. Redman of Indian
Funeral services will be held at
the home at 2 Saturday afternoon.
The body will be taken to Greens
burg for burial Monday.
SLAIN IN FAMILY FIGHT
Negio Is Killed; Brother-In-Law Is
Accused of Shooting.
Alonzo Scott, 66, Negro, was
wounded fatally Thursday night at
his home, 1205 North Sheffield
avenue, by a bullet said to have
been fired by his brother-in-law,
Herman McMillan. 44, Negro. 1164
North Pershing street. McMillan
is held" on a murder charge. A
family quarrel is said to have pro
ceeded the shooting.
Flu Epidemics at ‘Peak’
Jiit I ttiltd Press
WASHINGTON, Dee. 30—Influ
enza epidemics in various parti of
the country appear to have "reached
their peak.” with improved condi
tions probable in the near future,
it was said today at the United
States public health service.
When Dick Stanley
told Sheila Shayne he
was through with gay
parties and was going to
settle down to work, she
didn’t believe him. Sheila
was a dancer and Dick
was the son of wealthy
parents. There were sur
prises in store for both
of them and “Spotlight,”
the new serial, tells what
happened. It begins
Tuesday, Jan. X
in The Times
The Indianapolis Times
Cloudy and colder tonight with probably rain; temperatures somewhat below freezing by morning; Saturday, mostly cloudy and much colder.
VOLUME 44—NUMBER 200
20- Year-Old Girl Held
in Jail Here 5 Weeks on
Vague Immigration Count
Mexican Native Is Lodged
in County Cell as Probe
After eight years of wandering
from city to city in the United
States, Carmeletta Rita Quinn, 20-
year-old attracltve Mexican native,
today is in the county jail, com
pleting her fifth week of custody
as another victim of an immigration
Five weeks ago she was arrested
in Anderson while riding in an al
leged stolen car with a youth. The
youth is held on auto theft charges
and Carmeletta was held for immi
Removed to the Marion county
jail, she has told The Times that
she was talked to by immigration
officers but “got so mad at them’’
that she doesn't remember what
they told her.
Neither Has Counsel
The hearing, according to the girl,
is similar to the one given Boris
Naumoff, a Macedonian, also held
in jail. In both instances, the of
ficers talked with the arrest vic
tims, but neither was represented by
Naumoff, in his cell only a few
yards across the jail yard, is
charged with re-entering the United
States illegally. Both Naumoff and
the girl said they do not understand
the technicalities of immigration
Action in the local case is similar
to conditions which arose in the
east recently and is branded "Doak
itis." After the labor department,
headed by William Doak, secretary,
ordered wholesale arrests of aliens.
Fled in Fishing Boat
The girl insists there are no
formal charges against, her, al
though the labor department asserts
the case is being probed.
Carmelleta tells a story of being
an orphan at 12. She says she
didn’t attend school and that she
lived on a sheep ranch on the Mex
ican side of the Rio Grande.
The talk of an orphanage as her
future home frightened her, the
girl says, and she fled her home in
a Ashing boat and w'ent to work as
a cigaret vendor in an El Paso
Stranded by Companion
At 15, she related, she went to
Phoenix, Ariz., and, not finding a
job, went to a ranch where she
worked for $5 a week.
Her life shifted then to New Or
leans and later back to Phoenix,
where she again did housework.
Death of her employer sent her on
the road, hiking across the country
with another girl.
They finally came to Indianapolis,
where, Carmeletta says, her com
panion left her. and she worked in
restaurants and on city market
CALL BRITISH HANGMAN
TO DESTROY IRISHMAN
Protesting Crowds Parade at Dublin
as Sentence Is Executed.
By I titled /’reus
DUBLIN. Dec. 30. The Irish
Free States boycott against Great
Britain was extended Thursday to
include a British hangman.
The official British executioner.
L. Pierpont, came to Dublin to
execute Patrick McDermott, a young
farmer convicted of killing his
brother. The hanging took place
outside Mountjoy prison.
A crowd staged a demonstration
outside the prison during the hang
ing, carrying banners with the in
scription: "An English Hangman
Destroys an Irishman! Is This
Bt I’nltrit Prfsn
Hupp Motor Car Corporation
receives rush order for thirty-five
carloads of automobiles from Cal
lister Brothers, New York dis
Virginian railway reports No
vember net income of $250,600,
against $146,798 in November last
Department of commerce re
ports November iron and steel
exports were 56,041 tons, com
pared with 41,226 tons in October.
Mobile & Ohio railroad reports
November net income of $16,867,
against a deficit of $95,630 in
Union Central Life Insurance
Company reports its sales in last
half of 1932 ‘'substantially’’ were
ahead of like 1931 period.
Philippines Liberty Bill
Awaits O, K. by Hoover
By United Press
WASHINGTON. Dec. 30.—The
Gordian knot of Philippines-Ameri
can relations, which has perplexed
congress since acquisition of the
islands in 1898. was cut Thursday
when the house voted approval. 171
to 16. of a conference report, which
previously had been accepted by the
The bill, which will go to the
President after routine formalities
of engrossing and signing by the
Speaker of the house ar'.d president
of the senate, provides for inde
pendence after ten years under a
transitional commonwealth govern
Its fulfillment, even if signed by
the President, still would be con
tingent upon acceptance by the
Philippine legislature or a special
convention called by the legislature.
INDIANAPOLIS, FRIDAY, DECEMBER 30, 1932
IS DUE TODAY
Public Service Commission
to Hand Down Verdict
in Rate Case.
Whether thousands of patrons of
the Indianapolis Water Company
will continue to pay the emergency
reduction rates for their water sup
ply or have rates increased or re
duced, will be decided this after
noon by the “lame duck” public
Commissioner Howell Ellis, who
has had the case in tow, announced
that his order is ready.
Although it affects the entire
citizenry of Indianapolis the order
has been prepared in less time than
is accorded ordinarily to a one
man truck case.
Two weeks of testimony on the
permanent rate schedule was con
cluded Dec. 15. It took another
week for briefs to be filed by the
company, which is seeking in
creases, and by the city, apartment
owners and civic clubs seeking re
PLEA FOR MOONEY
Aid of President-Elect
Asked by Convict’s Mother.
By I titled Press
ALBANY. N. Y„ Dec. 30.—The
gray-haired mother of Tom Moo
ney, serving a life term in San
Quentin prison for the San Fran
cisco Preparedness day bombing,
made a personal appeal today to
President-Elect Roosevelt to help
her in her fight, for his freedom.
CONTINUE PROBE OF
ATTACK ON WOMAN
Deputy Sheriff Runs Into Blank
Wall in His Investigation.
With all clews proving fruitless,
deputy sheriff Harry Cook today
continued investigation of the
story of Mrs. Marjorie Marshall, 20,
mother of a baby two weeks old,
that she was assaulted by an un
known man Wednesday night while
alone in her home. Eighteenth
street and Shadeland drive.
Two men answering description
of the assailant, reported to be liv
ing in a shack in a neighboring
woods, could not be found by depu
ties after an extensive search
Mrs. Marshall said the attack
occurred after her husband, a milk
mar., left for work. The intruder
attempted to steal her diamond
ring, she said.
TAKE NUT FROM LUNG
Baby Girl Is Saved at Riley Hos
pital; Reported Recovering.
Norma Stephens, 23-months-old
daughter of Mr. and Mrs. Leroy
Stephens of Winchester, is recover
ing today at the James Whitcomb
Riley hospital for children follow
ing removal of a peanut from the
childs lung Thursday. The child
started choking while eating pea
The net effect of the bill, there
fore. is to give concrete expression
to United States policy, and there
after pass to the Philippines at
least partial responsibility for initi
ating the program which is outlined.
There is profound speculation as
to the fate of the bill at the White
It generally is believed that cabinet
officers primarily responsible for
Philippines affairs will recommend
a veto, on the grounds that the bill
does not provide an adequate eco
nomic foundation for independence.
There will be strong representa
tions in behalf of the bill because
of its proposed restrictions of Phil
ippines imports and immigration,
and because it fulfills at least par
tially the principle of self-determi
MAD; KILLS 2
AT ARM Y POST
Captains arnd Their Wives
Are Victims; Murderer
Slain by Sentry.
CHILDREN AVERT DEATH
Lieutenant Heading Posse
After Maddened Man
By I nit e/I Press
FT. HUACHUCA. Ariz., Dec. 30.
—The flag over this army outpost
fluttered at half staff today as mili
tary funerals were prepared for two
captains and their wives, who were
shot down by a Negro private, sud
The soldier, James A. Abernathy,
was killed by a sentry after he had
wound up his murderous rampage
by seriously wounding a guard of
The victims were Captain and
Mrs. Joseph R. Wessely and Cap
tain and Mrs. David A. Palmer,
killed instantly, and Lieutenant H.
R. Matthews, seriously wounded.
Colonel R. S. Knox, commandant
of the Twenty-fifth infantry, head
ed an investigating board of offi
cers, seeking a motive behind the
shootings which rocked the garri
son from its usual lethargy late
The Negro was afflicted with a
disease which may have caused him
to go suddenly insane over some
fancied grievance, they said. He
recently had asked for a transfer
to the Philippines.
Fires Point Blank
The tragedy started when Wes
sely drove up to the supply depot
and ordered Abernathy, an attend
ant, to fill up his gasoline tank.
Without a word of warning, the
Negro drew his revolver and fired.
As the captain fell, mortally wound
ed, the Negro leaped into the car
and sped to the officer’s small cot
tage. Mrs. Wessely was taking a
siesta when the Negro burst open
the door and shot her before she
Guards were being mobilized when
the murderer slipped out of the
house and made for Palmer’s house
on foot. On the way, he encoun
tered another officer. He paused for
a moment, then said:
“I’ll let you live.”
Children Hide in Room
Before the surprised officer could i
queVfton him, r&bctliiul'X* " q. ZZX
to the home of Captain PaWr.
The officer was at work in his
garden when the Negro appeared
and moment’s hesitation
opened fire.* Palmer and her
two small children were inside the
house. The maddened trooper forced
his way in and felled the woman
with another bullet. The children,
hiding in another room, apparently
escaped the attention of the gun
With the revolver in his hand,
Aberneathy paused on the threshold
as the provost guard, led by Lieut.
Matthews, surrounded the cottage.
The Negro glared wildly for a mo
ment at the detachment and then
fired point-blank at Matthews. He
started to flee and wheeled about
for a second shot just as Corporal
Peter Hardley dropped him witn a
bullet through the heart.
Both, Captains Veterans
Soldiers placed the bodies in mo
tor lorries and took them to nearby
Bisbefc, where funeral services were
Fellow-troopers said Aberneathy
had been ill for some time, but
never had shown signs of insan
ity He had been convicted three
years ago of manslaughter in con
nection with a Bisbee automobile
accident, but had been granted a
Palmer and Wessely both were
veterans of the army, having en
tered war-time service in 1917. They
were popular with their men, it was
said. Palmer, who was 42, was* a
native of Beverly, Mass. They left
two children, David. 12, and Pol
In Charge of Commissary
Wessely was 45 and a graduate
of the quartermaster corps motor
transport school. He enlisted in San
Antonio, Tex., his home. His wife
was a native of Cedar Rapids, la.
The captain was an assistant to the
quartermaster and was in charge
of the commissary, supply depot,
laundry and other fort units.
Originally a cavalry base. Ft.
Huachuca recently was augmented
by a force of infantrymen, moved
in when the war department
abandoned cantonments at Nogales
Its personnel is preponderantly
Negro, although there are more than
fifty white officers and soldiers bar
Falls Into Ohio; Drowned
By United Press
EVANSVILLE, Ind., Dec. 30
Thomas Cooper, 32, was drowned
late Thursday when he fell into the
TWO for ONE
Your rental st<l. nd,
merchandise for sale ad.
etc., will do double duty
in The Times Saturday.
Y ou receive two days’ re
sults at one day's cost.
Times Want Ads cost
less than those of any
other Indianapolis news
paper. Three cents a
word (with everv word
snelled out in full), a
liberal discount is al
lowed for prompt pay
Just call Riley 5551 and say
“Charge It,” or you can BRING
YOUR AD TO TIMES HEAD
QUARTERS. 214 West Mary
to Stick to Court Life
•S^^MHBIBKI w&fwl ¥
Retiring Deputy Attorney-General Plans to Toil,
Unless Sea Lure Proves Too Strong.
STILL cognizant, of the call of the sea which four times has borne
him to far climes and adventurous ports, James T. Dowling, deputy
attorney-general, today again bid "bon voyage"—but this time far less
Dowling is going back to the private practice of law, he says, pro
viding the lure of the sea again doesn't prove too strong.
IN JUDD CASE
Alleged ‘Accessory’ in Slay
ing of Two Women
By I ailed Press
PHOENIX, Ariz., Dec. 30.—John
J. Halloran, wealthy Phoenix lum
berman, was arrested today on a
secret indictment charging him with
serc/.-vJ.; in the
't>f Agnes Auii_T,eroi and Hedvig
Samuelson by Winnie Ruth Judd.
Halloran immediately posted bond
of $3,000 before Superior Judge
Howard Speakman, and was ordered
to appear next Tuesday morning for
Mrs. Judd was tried only on the
charge of murdering Mrs. Leroi.
although she was alleged to have
killed the two women, former
The indictment followed three
days of investigation by the grand
jury which first interviewed Mrs.
Judd, bringing her from the state
prison at Florence, Ariz., where, she
is scheduled to hang next Feb. 17.
The supreme court late Thursday
denied application of Mrs. Judd’s
attorneys for a rehearing of their
claims, which previously had been
Counsel said they would go to the
United States district court for
writs of habeas corpus and certio
rari, seeking Mrs. Judd’s release,
preliminary to taking the case to
the United States supreme court.
O. V. Wilson, defense attorney, ad
mitted that lack of funds would
hamper their efforts.
ARRANGE DINNER FOR
RETIRING FIRE CAPTAIN
Charles T. Treadway to Be Honored
at Turkey Feast.
Captain Charles T. Treadway,
who will retire Sunday from the
fire department at the age of 70,
will be honored with a turkey din
ner at 6 Saturday night at Engine
House 9, where he has been sta
tioned twenty-five years.
Guests will include Fire Chief
Harry E. Voshell and business men
in the vicinity of the engine house
at 537 North Belle Vieu place.
Louis Gass, to be retired soon
after long service in the Gamewell
system department, will be a spe
Fred Meyers will be master of
ceremonies. A gift will be present
ed to Treadway.
FREE SHOW ARRANGED
School Traffic Patrol Officers to Be
Guests at Lyric.
School traffic patrol officers will
be guests at a free show Saturday
morning at the Lyric theater under
auspices of the accident prevention
bureau of the police department.
The principal feature of the show
will be Singer's Midgets, who will
be at the Lyric a week beginning
Those planning to attend the
show will be met at, police head
quarters not, later than 10:30 and
march to the theater. It is ex
pected there will be an attendance
of 1,500 at the show.
SOVIET TOPIC IN OPEN
Russian Recognition May Come Be
fore Committee, Says Collier.
By United Press
WASHINGTON, Dec. 30.—A possi
bility that the question of Russian
recognition and kindred matters
may be fought out in open hearings
before the house ways and means
committee w-as revealed today by
Chairman James W. Collier.
James T. Dowling
Rare it is that an “able-bodied
; seaman" can weather the technical
i ities of a law suit, but Dowling, a
graduate of two law schools (Notre
Dame and Georgetown) boasts pro
ficiency in two professions.
With United States government
papers to attest his ability on the
deep sea, Dowling’s conquests in
clude being shanghaied on a whaler,
voyages into tropical waters, and a
sea voyage to Alaska.
It is with some effort that Dow
ling, still in his early thirties and
unmarried, says he is going back
to Gary to remain a lawyer. A Re
publican, he has served under At
torney-General James M, Ogden,
who leaves office Saturday.
How the sea won Dowling’s affec
tions after he became an attorney,
U- ; tUwy which might be lifted
from the pages of fiction.
In 1927 he was practicing law in
Gary, when suddenly he grew tired
of what already was becoming a
boresome business. He went to New
Orleans, where he boarded ship as
mess boy for a trip to the tropics.
Soon he was rated an ordinary
seaman and later won the class of
(Turn to Page Two)
HOUSE LEADERS TO
STUDY SALES TAX
Ways and Means Commit
tee to Go Into Problem.
By I nite/l Press
WASHINGTON. Dec. 30.—The
house ways and means committee
will be given an opportunity to con
sider enactment of a general manu
facturers’ sales tax. Chairman
James Collier revealed today.
Despite rhe announced opposition
of President-Elect Franklin D.
Roosevelt to this type of revenue.
Collier said a manufacturers’ levy
would be presented for considera
tion when the committee convenes
The bill, which will be presented
formally for approval or rejection,
was drafted by Representative C. J.
McLeod (Rep.. Mich.). It provides
for a 1% per cent general levy.
Collier recently raised a storm of
controversy when he and other
Democratic leaders said they were
convinced the sales tax presented
the one method of balancing the
budget through revenue.
Subsequently it was revealed that
President-Elect Roosevelt did not
favor the “general principles” of the
$lO Holdup; Gets 10 Years
By 1 nit est Prr**
TERRE HAUTE. Ind.. Dec. 30.
Robert Elson, 21. was under sen
tence of ten years in th® reform
atory today on charges of obtain
ing $lO in a holdup
W. C. T. U. Leader Is Put
Under Bond by Irate Wife
By United Press
CHICAGO. Dec. 30.—Some re
search work on alcohol today had
led through a series of events to
the placing of Mrs. Robert Brucer,
45, C6ok county president of the
W. C. T. U., under a SSOO peace
Mrs. Brucer signed the bond and
agreed to have nothing more to do
with Arthur Lynch, publicity agent,
after Lynch’s fiery French wife
swore out a disorderly conduct war
rant, and announced in the
chambers of Judge Joseph Graber
“I'll crush you like a serpent if
you don't let p on my husband.”
Mrs. Lynch first had sought a
warrant charging adultery, but was
persuaded by Judge Graber to make
the charge disorderly conduct
She claimed the temperance
worker was trying to “take my
Enter><l Second -a’liiss Matter
at Fostoffice, Indianapolis
ARE BLAMED IN
Incompetent Financiers and Lack of Control
by State Caused Most Failures,
Declares Survey Commission.
DEPRESSION EFFECT IS DISCOUNTED
Robberies Also Played Part in Collapses,
Findings Say; Remedies Are Rec
ommended in Report.
BY DANIEL M. KIDNEY
Incompetent bankers and inadequate state control of financial insti
tutions were the major causes of the 247 Indiana state bank failures since
1925. This is the verdict of the state bank survey commission, in a report
which was ready for distribution at the statehouse this afternoon.
Estimated loss to depositors in these institutions was $24,174,940,
according to the report.
New Car, $25 Taken From
Insurance Man: Left
West of City.
Kidnaped by two bandits in his
own automobile, T. D. Caudell, 2138
North Delaware street, insurance
collector, was forced to drive ten
miles west of the city today and was
robbed of his new car and $25.
The bandits forced Caudell into
the car at New York and Black
ford streets and commanded him to
Under their weapons, Caudell
drove ten miles west of Indianapolis
on the Rockville road where he was
pushed from the auto. The money
was stolen during the ride, he re
Caudell. a cllector for the Pru
dential Insurance Company, told
police he had come from a house
in the neighborhood when the
gunmen halted him. He said the
bandits told him the car would be
left at Blackford and New York
MERCURY TO DROP
HERE, IS FORECAST
Rain Forerunner of Colder
Weather, Says Bureau.
Heavy rain, fell here today as a
forerunner to colder weather Sat
urday and Sunday, according to a
forecast of the weather bureau.
Although precipitation totaled
only .26 of an inch, light rains con
tinued to fall this morning alter
beginning shortly after midnight.
Heaviest rainfall in the state was
recorded at Evansville, with 1.47 of
an inch while most stations in the
center and north sections reported
only light rain.
Passage of the rainy area to the
eastward will make way for an area
of colder weather now covering the
west. Temperature tonight will be
somewhat below freezing, according
to the bureau.
LIFE TO SLEEPIEST BOY
17-Year-Old Killer Sentenced to
Indiana State Prison.
By United Press
TERRE HAUTE. Ind., Dec. 30.
Carl Romoser, 17, the "world's
sleepiest boy” was sentenced to life
imprisonment in state prison today
on charges of murdering his brother,
How many full moons would
it require to equal the splendor
of the sun?
What people make blankets
so tight that they can hold
What is the will-o-the-wisp?
Maybe you can answer these
questions. If you can’t, you’ll
find the key in “This Curious
World,” a daily Times feature
that is entertaining thousands
The answers to the queries
given above will be found in
next Wednesday’s “This
husband away from me,” and that
the couple once had gone to a
cabaret and become intoxicated.
The W. C. T. U. head denied the
cabaret episode. She declared she
met the publicity man during the
recent campaign. The organization
had been doing some research work
on alcohol, she said, and Lynch was
helping her with publicity on the
Then on Christmas eve, said Mrs.
Brucer, she visited Lynch and found
he had undertaken certain personal
experiments with alcohol.
This, she said,, was the first
occasion she had ever seen a person
intoxicated, but she had heard that
black coffee should be administered.
She made Lynch some coffee, and
has not seen him since, she said.
And she’s not going to see him
again either, Mrs. Brucer an
PRICE TWO CENTS
Outside Marion County, 3 Cents
Depression tnd bank robbers
were included among other factors
causing 28.64 per cent of the
failures, while bankers and failure
of state supervision was credited
with 71.36 per cent.
The commission, headed by Wal
ter S. Greenough of the Fletcher
Trust Company, has its findings and
recommendations to the legislature
published in a 174-page booklet.
The two-year survey was author
ized and the commission created by
the 1931 legislature.
A complete reorganization of state
control of banking in Indiana is
proposed in the report.
Discounting the depression as a
major cause of Indiana bank fail
ures, the commission found that
“less than 28.64 per cent of these
failures are beyond control of the
They also found that small
banks, and banks in small towns,
are as safe or safer, than banks of
more than SIOO,OOO capitalization in
larger cities of the state.
Southern Indiana banks have
had a smaller percentage of failures
than those in the district north of
Indianapolis. Greatest percentage
has been in the industrial areas,
particularly the Calumet district, it
“It is believed that in most in
stances banks do not fail because
of economic conditions,” the com
Test of Soundness
“Trying conditions and depressed
economic situations merely serve as
the test for the soundness and com
prehensiveness of the management
policies of financial institutions. If
banks failed solely because of eco
nomic depressions, there would be
no banks left at the present time.
“The facts of the situation are,
however, that the majority of th®
banks that were in operation at
the beginning of the depression per
iod in Indiana still are operating
Contending that better banking
can be brought about by improved
state control, the commission rec
ommends a non-salaried commis
sion, no more than two members of
the same politcial faith. The Indi
ana Bankers’ Association would rec
ommend a member the Indiana
Savings and Loan League, the sec
ond member, and the other two
v/ould be appointed on a qualifica
tion basis by the Governor.
Would Direct Charters
This board would have jurisdic
tion over granting of charters and
select a commissioner qualified to
direct the department. The de
partment would be sub-divided,
with various division heads and a
staff of examiners sufficient to know
what is going on in the banking
The department also would have
jurisdiction over liquidations and
seek to curtail excessive receiver
Charters now are granted by the
state charter board. It is com
posed of the state banking commis
sioner, appointed by the Governor,
the Governor and secretary of state.
Often, the report states, this trio
may be of the same political faith.
The commission found that grant
ing of charters has been abused
greatly and, in the past, have not
been examined often enough for
the state to have adequate knowl
edge of their actual conditions.
Spite Chartering Charged
Chartering of “spite banks" for
'direct or indirect political reasons”
This has resulted in “cut-throat
competition” and consequent dis
aster, the report sets out.
“Instances are known in Indiana
of new bank charters being sought
and obtained by church groups,
lodge groups, or political groups
antagonistic to the church group,
lodge group, or political group in
control of the existing institutions,”
the report declared.
“In numerous instances from 1920
to 1932, villages of less than 500
people had two or more banks
Competition Is Bitter
“Competition in such commun
ities necessarily was bitter, because
it was nothing less than a death
struggle between the contending
business groups and, consequently",
desperate chances were taken,
nearly always making for bad bank- •
“In some instances, bankers with
long records of successful manage
ment were driven by the
in which they found them&..es to
take ‘long’ chances and to indulge
in practices not sanctioned by sound
6a. m 39 10 a. m 43
7a. m 4i 11 a. m 44
Ba. m 41 12 noon.. 44
9a. m 42 Ip. m 45
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