The Indianapolis times. [volume], May 06, 1933, Capital Edition, Image 1

About The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965

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M-SCRJPP^^fOWARD
HOUSE SPEEDS
SHORTER WORK
WEEK ACTION
Leaders Expect to Report
Bill Today: Snag Hit by
Wage Measure.
MINIMUM PAY URGED
Frances Perkins and Head
of Clothing Union Plead
for Set Price.
BY RUTH FINNEY
Times Staff Writer
WASHINGTON. May 6.— Short
work week legislation moved several
steps closer to enactment today,
while substitute legislation for con
trol of production and prices, as
well as hours of labor and wages,
ran into difficulties.
The house labor committee con
cluded hearings on the first measure
late* Friday and prepared today to
report a bill regardless of what
action may be taken by groups con
ferring on the broader plan.
Those working on the industrial
control measure, however, have not
succeeded in drafting a bill accept
able to the divergent employer and
employe groups interested. As soon
as agreement is reached, Senator
Robert F. Wagner <Dem., N. Y.),
will lay the bill before President
Roosevelt and ask his serious con
sideration.
Demand Minimum Wage
The President is suspending judg
ment, meanwhile, and reserving
comment until the two measures are
in definite form. His present plans
call for separate consideration of
public works.
A broadside in behalf of minimum
wage legislation as part of any plan
that may be adopted for putting
men and women back at work in
industry closed the hearings before
the labor committee. It w'as led by
Secretary of Labor Frances Perkins
and echoed by strong groups of or
ganized workers.
The committee displayed more
sympathetic interest than at any
previous time.
While the committee was deep in
this discussion, a memorandum ar
rived from Secretary Perkins,
answering objections to the mini
mum wage raised in the hearings.
• Minimum wage legislation has
been opposed on the ground that
the minimum will become the maxi
mum, that all w'orkers will be kept
at a dead level. Conclusive disproof
is to be found in the investigations
of wages paid before and after the
minimum wage rates were put into
effect and the constantly increasing
proportion of workers receiving
more than the minimum rate.”
Hillman Voices Warning
The secretary quoted figures from
California, where a sl6 a w'eek mini
mum exists for women, showing
that a constantly increasing num
ber of women, reaching in 1927 to
64 9 per cent of the total, received
wages in excess of sl7.
“There is a well-entrenched cus
tom of paying the skilled worker
more than the unskilled,” said Miss
Perkins. “Increasing the wage of
the unskilled would, therefore, bring
pressure in the direction of forcing
the wage of the skilled up somewhat
in proportion.”
Powerful arguments for the mini
mum wage were presented in be
half of one of the strongest labor or
ganizations in the country, Amalga
mated Clothing Workers of America,
by Us president, Sidney Hillman.
In spite of the strength of his or
ganization, Hillman said, his
workers can not be protected except
with help from the national govern
ment.
"I ask for the short work week
minimum wage bill because it is for
the first time an attempt to meet
the evil at its very source,” he said.
Industry Can Supervise Self
“I am for it because it gives in
dustry, under supervision and
guidance of the government, oppor
tunity to manage itself.
“I am for it right now because so
far all measures adopted by the ad
ministration have, by reason of the
financial crisis, been purely defla
tionary. The closing of the banks
has left five billions of dollars fro
zen. As for inflation, which has
given us the cheaper dollar and a
higher price level for commodities,
it still has left us with declining
wages.
“This bill is more necessary in
connection with the inflation pro- ■
gram than ever before. And if it is
not enacted, there will be a bank
holiday with no banks reopening
afterward.”
Hillman scored the foreign em
bargo clause advocated by Chairman
Connery as a “certain way to kill
the legislation.”
Adventure Held Risky
“It is a risky adventure to pro
ceed further in the depression with
out a minimum w'age as a com
panion piece to hours legislation.” j
said Stephen Raushenbush, speaking
for the department of labor of
Pennsylvania and also for the
United Mine Workers of America.
“This bill is the only one offered
which will bring the wage-earners
up to the subsistence level.”
The problem now worrying draft
ers of the industrial control bill con
cerns protection of workers. In gen
eral. the plan seeks to establish the
right of collective bargaining and
to outlaw the yellow dog contract.
The problem of securing decent
wages at once in unorganized plants
and plants where company unions
exist has proved difficult.
The other end of the proposal,
providing federal regulation of trade
association agreements to control
production and prices, has been ap
proved in principle by the United
States Chamber of Commerce, in
tession here.
The Indianapolis Times
Partly cloudy and slightly cooler tonight; Sunday, generally fair, with warmer by night.
VOLUME 44—NUMBER 309
Slow Track Is Forecast
for Derby; 19 Named to
Start in Classic Race
I < MBSs/i Bk I
Louisville Is Jammed for
Historic Event; Favorite
Is Ladysman.
By I Hilril Press
LOUISVILLE, May 6.— The
field for the Kentucky Derby
was cut to 19 today, when Fingal
and Boilermaker, entries of
Colonel E. R. Bradley, and the
Calumet Farm's Warren Jr., were
scratched.
The weather had cleared at
scratch time, but the track was
heavy with mud.
BY KENNETH D. FRY
United Press Staff Correspondent
LOUISVILLE, May 6.— The glam
our and the glory of another Ken
tucky Derby lured a vast, gay mov
ing throng to old Churchill Dow'ns
today, where the season’s best 3-
year-olds await the strenuous mile
and a quarter test for a $50,000 pot
of gold.
Fast horses and beautiful women
—Kentucky's boast —will be on
parade at the time-honored Dow’ns,
where the derby will he run'for
the 59th time late this afternoon.
Uncertainty marks every racing
angle of today’s derby. Rain has
been predicted for three days. After
an afternoon of balmy w'eather
Friday, a brief torrent fell Friday
night. More showers were pre
dicted for today.
Field Is Large
A surprisingly large field of tw'en
ty-one colts and one filly was named
overnight, but three were scratched
today. But if the Downs oval
dries well today not more than fif
teen are expected to go to the post.
Several unexpected entries were
made when threatening W'eather
prevailed.
For the first time in four years,
the future book favorite selected
when nominations closed Feb. 1,
has withstood training perils. The
favorite is Ladysman, W. R. Coe’s
staunch son of Pompey, who failed
in the 1926 race here. Coupled with
Ladysman are Pomponius and
Pompoleon and they might be as
short as 8 to 5 by past time about
5 o'clock, central standard time.
Sonny Workman will be astride
Ladysman.
Anew feature was injected into
the Derby late Friday when Head
Play, the western favorite, worth
only $575 as a yearling, was sold
by Mrs. William Crump of Nashville
to Mrs. Silas Mason of Richmond,
Ky., for $30,000 and 15 per cent of
Head Play's earnings in the Derby.
Head Play Second Choice
Head Play holds favor as a
staunch second choice to the Coe
entry, at 4 to 1. Another w-ell-liked
western colt, Charley 0., is rated
at 6 to 1.
Colonel R. Bradley, whose entries
have w'on three Kentucky Derbies, ‘
has named three starters, Fingal,
Broker s Tip, and Boilermaker. The
latter two never have won a race,
although Broker's Tip. a son of
Black Toney, sire of Black Gold, the
1924 winner, has trained well and is
supported heavily.
If F. A. Griffith's Mr. Khayyam,
winner of the mile start at Havre
De Grace last week, comes pounding
home under the wire, he will be the
third son of a Derby w’inner to gain
the brackets in the $50,000 race. Mr.
Khayyam is held at 10 to 1.
At Top Doubtful Starter
No jockey riding a Derby entry
today ever has been astride the win
ning horse in this event.
Racing writers here for the Derby
are almost equally divided in select
ing the Coe entry and Head Play to
win. The only fillv entered, Nash
(Turn to Page Two),
Times Index
Page.
Book a Day n
Bridge 7
Classified 10
Comics 11
Crossword Puzzle 9
Curious World 9
Dietz on Science 12
Editorial 4
Financial 9
Fortunes From Depression —a
Series 2
Heywood Broun 4
Hickman Theater Reviews 5
Industrial Page 12
Money—A Picture Story 7
Radio 12 1
Serial Story n
Sports 11
Talburt Cartoon 4
Vital Statistics 9
Womb's Pages 6-7 i
DERBY FIELD
Bn I nilrd Press
LOUISVILLE, May 6. —Here’s
the official field for today’s fifty
ninth running of the Kentucky
Derby:
Sixth race: $50,000 added, 3-year
olds, IL4 miles.
Post Horse Prob. Odds
1. iB) Pompoleon 8-5
2. Charley 0 6-1
3. <C> Good Advice 10-1
4. Dark Winter 40-1
5. (B) Ladysman 8-5
6. Kerry Patch 20-1
7. Inlander 30-1
8. Captain Red 50-1
9. Head Play 4-1
10. Strideaway 60-1
11. Spicson 60-1
12. Silent Shot 100-1
13. Sarada 12-1
14. At Top 20-1
15 Isaiah 50-1
16. Broker's Tip 15-1
17. <B) Pomponius 8-5
18. Fair Rochester 60-1
19. <C) Mr. Khayyam 10-1
Note —All carry 126 pounds except
At Top, 121.
B—W. R. Coe entry. C—Catawba
farm entry.
Doubtful Starters—Good Advice,
Silent Shot, Pompoleon, Fair Ro
chester.
Probable Post Time—s p. m.
(C.S.T.)
Weather Forecast—Probably show
ers, clearing in afternoon.
Morning Scratches—Fingal, Boil
ermaker, Warren Jr.
Mutuel Field —Dark Winter,
Strideaw'ay, Spicson, Silent Shot,
At Top, Fair Rochester, CaDtain
Red.
OFFICERS RE-ELECTED
BY NATIONAL C. OF C.
Two Substitutions Are Made at
Washington Conclave.
Bn United Press
WASHINGTON, May 6.—Present
officers of the United States
Chamber of Commerce were re
elected Friday by the board of
directors with two exceptions.
William V. Hodges of Denver was
substituted for Nathan Adams of
Dallas as vice-president of the
southern division, and Robert V.
Fleming of Washington substituted
as treasurer for Oscar Wells of
Birmingham, resigned.
The board of and rectors was elected
as nominated earlier in the w'eek. It
includes W. F. Gephart and A. P.
Greensfelder of St. Louis.
In the Air
Weather condition at 9 a. m.:
West wind, 16 miles an hour; tem
perature. 52; barometric pressure,
29.90 at sea level; general condi
tions, overcast, hazy; ceiling, 1,800
feet; visibility, 6 miles.
t race track
m Selections
.. „_4. BY O. REVILLA •
CHURCHILL DOWNS. LOUISVILLE. Ky.. May 6.— Likewise looks
like the safest thing of the card today. This nag is about the fast
est thing on the track in the way of 2-year-olds and should pop right
back again, although I'm warning you it's Derby day and look out!
There is a 2-year-old starter in
the third that looks the works and
I am handing this to you as a good
thing. She went a half in :48 in
a workout the other day and I un
derstand she is going for the works
Derby day.
I can't see anything else but
Charley O. in the big race, with
Ladysman second and Mr. Khay
yam for what's left. Looks to me
like Charley is going to make his
big brother. Mike Hall, proud of
him after today.
Ogygia ran a hangup race last
out and today should do the well
known tow rope act. Habanero
looks like another winner for
Whitney in the seventh and it is
Cayuga in the second.
Trcd Avon, no doubt, is the best
of the lot at Pimlico in the sixth.
It is coupled with Open Hearth,
which probably will be scratched.
Today’s Selections
At Churchill Downs—
1. Naval Cadet, Southland Duke.
Thomasville.
2. Cayuga, Gettin' Even, Threat.
INDIANAPOLIS, SATURDAY, MAY 6, 1933
COST OF BANK
RECEIVERSHIPS
AT HIGH MARK
Expense Shown in Reports
at 27 Per Cent of Whole
Amount Realized.
ONE OFFICIAL TARDY
State Savings Figures Are
Delayed: Action Taken
on Meyer-Kiser.
With filing of the final report for
the second of three major Indian
apolis bank receiverships, total cost
for twenty-eight months’ liquidation
has reached $204,431.88.
Brandt C. Downey, receiver for
the Washington Bank and Trust
Company from Nov. 15, 1930, until
Feb. 28, 1933, filed his final report
Friday, showing expense of slll,-
485.40.
The final report of Curtis Rott
ger, receiver of the City Trust Com
pany from Nov, 18, 1930, until
March C, 1933, was filed April 21.
Operating expenses were listed at
$92,946.48,
Eben Wolcott, former receiver of
the State Savings and Trust Com
pany, has not filed the final report
ordered by Circuit Judge Earl R.
Cox. Deadline was fixed at April 22.
Operating Cost 27 Per Cent
During their terms of office, Dow
ney liquidated $396,628.38 of the
bank's assets and Rottger cashed a
total of $356,034.21, w'hich represents
$752,662.59.
Compared with the results
achieved, the operating expense
represents approximately 27 per cent
of the liquidated amounts, the re
ports show.
The Meyer-Kiser bank w'as added
as the fourth of the large local re
ceiverships Thursday, with appoint
ment of Thomas E. Garvin, former
municipal court judge, to handle its
affairs.
Liquidation of the institution was
rem.oved from the hands of former
officers of the bank on petition of
the state banking department, after
an audit disclosed that the bank
was insolvent.
Handled by Ex-Officials
For nearly two years the liquida
tion has been handled by Frod
Meyer, J. J. Kiser and M. S. Cohn,
liquidating’ agents and former-bank
officials.
Judge Cox w'ill hear further evi
dence Monday on. a receivership pe
tition filed by Edw'ard Little and
Sidney Horn, attorneys, against the
Pilgrim Properties, Inc., a real es
tate firm organized by Meyer-Kiser
bank officials.
Little, holder of twenty-two shares
in the property company, testified
Friday that he was sold the stock
on the representation that it was
stock in the Meyer-Kiser Bank
building pn East Washington street.
Later he learned that the stock
W'as on three local apartment
houses, he testified. Cohn and Kiser
were on the witness stand Friday
and denied that the stock was mis
represented.
T. B. CURE IS CLAIMED
Scientist Asserts He Has Discovered
Germ, Perfected Serum.
Bn United Press
BERLIN, May 6. —Professor John
Habthan, an American scientist
living in Berlin, today claimed that
he had discovered the germs caus
ing leprosy and tuberculosis were
identical.
Professor Habthan told the United
Press that he already had perfected
successful treatment for tubercu
losis through injections, and that
he successfully had treated 1,500
patients with his new' serum.
Habthan said he formerly lived
in New' York, but also did work in
Eugene. Ore., San Francisco, Los
Angeles and Chicago.
IN CONGRESS TODAY
Bt United Pres*
Senate, house and committees in
recess until Monday.
3. Atmosphere, Angon Bridge,
New Deal.
4. Traitor, Noah’s Pride. Justina.
5. Likewise. Speedy Skippy, Penn
cote.
6. Charley O, Ladysman, Mr.
Khayyam.
7. Habanero, Marie Jean, North
Mill.
8- Ogygia, Royal Sport, Birthday
Gift.
Best—Likewise.
Track—Fast.
At Pimlico—
1. No selections
2. Electric Gaff, Integrity, Your
Bob.
3. Watch Him. Brandon Mint,
Merrily On.
4. Ladfield. Vishnu, Mexico.
5. Foxianna. Garlic, Ming Sun.
6. Tred Avon, The Nut, Stepin
fetchit.
7. Flaming Mamie. Ruane. Storm.
8. Night Patrol, Worthington,
Traffic Judge.
Best —Tred Avon.
Track—Fast. ,
HELD IN KIDNAP PROBE
IkV \ J
John A. Griffith (above) is held
in Columbus. 0., for investigation
after he made a telephonic offer
to the parents of kidnaped Peggy
McMath to take them to their
daughter.
Griffin, a Clinton (Ind.) sales
man, was arrested when he sought
to charter a plane to take him to
Cape Cod, the McMath home.
HEAVY BATTLE
RAGESJNMA
Severe Fighting Reported
Inside Great Wall as
Japanese Advance.
Bn United Press
SUICHUNG, Manchuria. May 6.
Heavy fighting between Chinese and
Japanese troops near Shenhochen,
inside the Great Wall, w r as reported
here today when a squadron of Jap
anese airplanes left to bomb Chi
nese concentrations.
The battle opened with brisk can
nonading Friday.
How the Market
Opened
BY" ELMER C. WALZER
United Press Financial Editor
NEW YORK, May 6.— Stocks re
sumed their uptrend at the open
ing today after absorbing consider
able profit-taking near the close
Friday. The dollar continued to de
cline, breaking to anew low since
1879.
Cotton futures advanced 85 cents
a bale.
Buying orders came into broker
age houses when the pound ster
ling and other foreign units ad
vanced against the dollar. The
pound reached S4.OSVi, up 7 cents
and anew high since September,
1931.
Gains in the stocks ranged up
ward to a point and large blocks
turned over on the opening.
The first sale of U. S. Steel was
made at 48%, up 14 on a block of
4.500 shares. It moved higher in
the early dealings.
American Telephone opened 1.500
shares at 103%, up %. Allied Chem
ical opened at 94%. up 1; Consoli
dated Gas 52%, up %; Atchison
58"s, up %.
General motors sold at 22%, up
U on an initial block of 3,000 shares.
Grain Futures Strong
Bn United Press
CHICAGO, May 6.— Corn shot
into the lead on the Board of Trade
today as prices advanced a sharp
•% to 1% cents on the continued wet
weather and consequent delay to
seeding. Wheat was unsettled and
unevenly % cent lower to % cent
higher. Other grains forsook the
leadership of wheat and rushed up
ward with corn.
Oats advanced % to ■% cent while
rye w r as % to % cent higher and
barley 1% to 1% cents higher. Pro
visions also were strong. Foreign
markets were stronger than ex
pected which- offset profit-taking
selling in wheat, but the irregular
ity lin stocks slackened activity at
the start.
Legion Post to Give Play
Service v post of the American
Legion will present "The Seven-
Eleven Minstrels,” at the McCords
ville high school building at 8
Tuesday night. Twenty-four post
members make up the cast. The
show will be in charge of Dr. Rus
sell A. Showalter, Lawrence V.
Kinder, Clell Gibson and Fred Mc-
Conaha.
Roosevelt Looks Back on 60 Days of
/
Work and Sees Progress Achieved
BY RAY TUCKER
Times Staff Writer
WASHINGTON. May 6— “ When
I promised to give America a new
deal, I meant just that.”
President Roosevelt today feels
that he has earned the right to pass
that judgment on his first two
months. Although indulging in no
extravagant promises, he is hope
ful for steady improvement.
He realizes, along with everybody
else, that the great test is ahead—
whether the reforms set in motion
so speedily will work. Signs of bet
terment show in higher stock and
commodity prices, and a widespread
spirit of confidence, but he knows
the real battle comes now.
Regardless of future trends, his
action, courage, and leadership are
reflected in what he has tried to do.
When he took office, banks every
where were closing; he had to shut
their doors completely. Gold was
escaping to Europe and mattresses;
he had to embargo shipment and
demand its return under legal
penalty.
Few people had money to buy
necessities, though prices were so
low that manufacturers were going
KIDNAPED GIRL RETURNED;
$70,000 RANSOM IS PAID;
POLICE, FAMILY CLASH
mutton®
mm to.
MIMES
Utility Pleads Return Is Too
Low; Hearing to Be
Resumed Wednesday.
Temporary truce in the Indian
apolis Water Company's fight for
higher rates was in effect today,
following adjournment in federal
court Friday until Wednesday.
First w'eek of the lengthy hear
ing before Albert Ward, special
master in chancery, was marked
by testimony of water company
witnesses. They said the company
is earning less than 6 per cent on
a $22,500,000 valuation under the
public service commission's Decem
ber rate order.
They made their first steps in
the effort to show' the company's
rate-making valuation should be
set at from $26,000,000 to $28,000,-
000, on which the company asks a
return of from 7'- to 8 per cent.
Testimony Is Assailed
Testimony of Emerson W. Chaille
and George T. Whelden, realtors,
that the company’s lands, exclusive
of improvements, are worth from
$3,725,445 to $3,806,679, w’as attacked
bitterly by George W. Hufsmith,
deputy attorney-general, defending
the commission's rate order.
Hufsmith Friday brought admis
sion from Chaille that his valua
tion for rate-making purposes in
cluded parts of Wabash and Mis
souri street, title to which the com
pany claims through its purchase of
the canal.
Attack on what is termed exces
sive valuations set on farm lands
owmed by the company is expected
to be continued Wednesday.
Engineers to Testify
The water company later in the
w'eek is expected to introduce testi
mony by consulting engineers as to
value of the company’s improve
ments. William L. Ransom, New
York, and Joseph J. Daniels, In
dianapolis, are representing the
water company.
Hufsmith is being aided by Sher
man Minton, new state public coun
selor; Edward H. Knight, city cor
poration counsel, and James E.
Deery, city attorney.
1,400 TAKEN OFF
POOR RELIEF ROLL
April Cost Drops $30,000
From March Figures.
Decrease of 1,400 persons receiving
Center township poor relief was an
nounced today by Charles Clark,
county attorney. He said jobs
suppied through the city moderniza
tion drive caused the decrease.
Relief costs in April for coal, seed,
fuel, and administration dropped
approximately $30,000 from March
figures to $140,000, Clark said.
Families now are being taken off the
relief list at a rate of sixty a day,
he said.
Clark estimated that approximate
ly 500 more families will be released,
due to funds sent home from re
forestation camps. Poor relief costs
w'ill be reduced further by the 7,000
gardens being planted by relief
recipients, Clark said.
S2O Sombrero Is Stolen
A “five-gallon” sombrero, valued at
S2O, and a glaGstone bag containing
$l5O w'orth of clothing and toilet
articles were stolen Friday after
noon from the car of Albert McCabe,
circus employe, w’hile it was parked
in the 3600 block. Coliseum avenue.
Hourly Temperatures
6 a. m 54 8 a. m 52
7 a. m 54 9 a. m 52
into bankruptcy, and farmers to the
poorhouse. The spirit of a decade
of bigotry, chaotic economics, and
selfish nationalism was over the
land.
He walked in the very valley of
depression as he descended the
capitol stairway to the inaugural
stand. He himself was grim.
Today he smiles—a smiling dic
tator.
Today—amidst criticism and en
couragement—he is the nation's
constitutional dictator. The federal
government has assumed super
vision of banking, the monetary
system and agriculture; he proposes
to extend regulation to railroads and
all industry.
He is moving in the direction of
planned national economy, with a
request that wages be raised si
multaneously with price increases.
He has transformed Washington
into a world capital, to which states
men of other lands make pilgrim
age. He has tried to make the
phrase—“ We've got to succeed”—
the watchword for the coming Lon
don conference.
Now he squares off at the end of
the second monthr for his real task
Entered as Second Cla*. Mailer
at Poetoffir* Infllanspolif*
Father Grilled by Officers; ‘Deal’ Rouses Sus
picions of Massachusetts Authorities,
Who Continue Inquiry.
ABDUCTORS GIVEN TIME TO FLEE
Parent Admits Child Was Kept on Boat for
Hours Before Word of Her Rescue
Was Passed On.
BY MARTIN KANE
United Press Staff Correspondent
WOOD’S HOLE, Mass., May 6.—The story of kidnaped
Peggy McMath—a dramatic tale of Ihe blindfolds and ropes,
of long imprisonment in darkness under the guard of a kindly
man, and of treatment which drew a protest from her only
when she was served ham sandwiches for the third day in
succession—was made public today by Brigadier-General
Daniel Needham, state director of public safety.
As General Needham relayed the story to newspaper
men shivering in cold dawn winds outside the Wood’s Hole
coast guard station, and as he spoke, Peggy’s father, Neil C.
McMath, was undergoing continuous examination inside the
station.
Peggy was home again,
sleeping in her own bed in the
twenty - two - room McMath
house at liarwichport, but the
mystery of her kidnaping
seemed as far from solution
as ever.
The girl was found with her
father and several other men aboard
a boat off Harwichport late Friday.
McMath and his business asso
ciate, William Lee, as well as bank
ers and others concerned in the
ransoming of Peggy, were ques
tioned through the night after Peg
gy had told her story and had been
sent home with Mrs. McMath.
Ransom Is $70,000
Needham told Peggy’s story, an
nounced that the ransom had
amounted to $70,000 in currency, and
made public some details of ne
gotiations for the child’s return.
But beyond that he flatly declined
to go.
Needham told Peggy's story and
the other details shortly before 4
a. m., and indicated then that he
and his men, as well as McMath
and all the other witnesses, would
stay at the coast guard station
through the night.
He warned, however, that he
would allow no further statement to
be made, and would let no informa
tion leak from the well-guarded sta
tion.
Among the witnesses under ex
amination w'as Cyril Buck, a Har
wichport year-round resident who
served as intermediary between Mc-
Math and the kidnapers.
Asked to Name Dog
As Needham relayed the story.
Buck W'as approached by an agent
of the kidnapers and asked to ar
range negotiation. Buck insisted on
proof that the girl was alive and
after consulting McMath asked that
she be requested to tell the name of
her pet dog, which had died.
The kidnaper’s agent returned
w'ith the name, “Peter the Great”
written in Peggy’s handw'riting,
Needham said.
That convinced the McMaths that
it was safe to negotiate, and ran
som payment was arranged, ac
cording to the story.
But it was evident that police and
federal agents w'ere w'holly unsatis
fied with the situation. McMath
was insisting upon maintaining a
pledge to the kidnapers of forty
eight hours’ protection, it appeared,
w'hereas the officers felt they should
have all information and thus be
enabled to start at once upon the
trail.
Clash With Police
Many details of the story re
mained in doubt, and Needham was
frankly resentful over the situation.
“We’re just beginning work on
this case,” a department of justice
agent said when he and five other
—day-by-day use of his extraor
dinary power. And he smiles.
He has shown no fear of using
his power. He has closed and
opened banks, taken the nation off
the gold standard, and prepared
for inflation. He has slashed ex
penditures until the 1934 budget
may balance. He has brought back
beer.
He has sent an advance army of
250.000 men into the woods to give
them employment and take them
off the dole. He soon will have,
power to force farmers to curtail
production under a system that may
bring ready cash and higher prices.
He has asked for and will re
ceive legislation to reduce mortgage
costs on farm and urban property.
He will soon inaugurate in the
Tennessee basin a great experiment
in the proper use of natural re
sources.
His advisers are preparing A sl,-
500.000,000 public W’orks measure to
relieve unemployment. He wants
authority to regulate security is
sues. and he favors a banking law
that will underwrite the safety of
;he nation's banking systeiji.
Capital
EDITION
PRICE TWO CENTS
Outside Marion County, 3 Cents
federal agents left the coast guard
station long after midnight.
Friction between the McMaths
and the police first became evident
Thursday afternoon, when McMath
asked that all officers be withdrawn
from Cape Cod, and Needham re
fused.
Less than twelve hours after this
request, Peggy, blindfolded, was
placed in an automobile beside her
father not far from the McMath
home, according to the girl's own
story. She was taken immediately
aboard a boat, she said.
But it was not until late Friday
that police discovered Peggy was
back. They had their first tip through
a Boston policeman, who reported
being commissioned to guard the
transfer of SBO,OOO in currency from
a Boston bank to Harwichport.
Found on Sailboat
After questioning associates of
the McMaths and members of the
family, police sought coast guard
aid, and Friday evening a picket
boat moved alongside the 50-foot
auxiliary sailboat of William Lee in
Wychmere harbor.
Coast guardsmen, armed and
ready for a fight, went aboard Lee's
boat, the Bob. They did not know
what to expect—but w'hat they
found was a pretty domestic scene.
Peggy was drinking milk and eat
ing fruit beside her father, with
Lee and Buck and others sitting
nearby.
McMath explained then his
promise to the kidnapers that he
would keep Peggy on the boat for
48 hours to let them escape, but
the police disagreed. They brought
the whole party to Wood's Hole, and
immediately started the question
ing, which lasted through the night.
At first Peggy, McMath, and Lee
were examined in different rooms,
their stories being checked con
stantly. Peggy’s story, as related
later by Needham, added little of
value to police, though it was a
dramatic story coming from the
lips of the 10-year-old.
Others Are Quizzed
Later others joined the confer
ences, including:
George Bacon, vice-president of
the Merchants National bank of
Boston, from whose vaults the ran
som money apparently came; Ralph
H. Snow, treasurer of the Cape Cod
Five-Cent Savingsbank at Harwich,
to whom the money was consigned,
and who was believed to have deliv
ered it to McMath; E. E. Hall, chief
of the Harwich police, and Frank
E. Smith, assistant prosecutor of a
district centered at Taunton.
William C. Crossley, district attor
ney of New Bedford, had been asso
ciated in the examination from the
start.
Needham particularly was inter
ested in learning whence had
come the SBO,OOO, of which all but
SIO,OOO later went to the kidnapers.
McMath, himself a boat builder
here, had been represented by Lee
as having little money, though his
father, Francis C. McMath, and his
father-in-law, William Robert Kales,
both of Detroit, are regarded as
wealthy.
Needham Is Suspicious
“Some phases of this case are
worth the utmost scrutiny,” Need
ham said.
On one thing, at least, all of
ficials in the case were agreed.
Peggy, they said unanimously, is
a brick. She told her story straight
forwardly, and showed unusual
powers of observation for a 10-
year-old.
She assured them that she was
not afraid at any time, and she
stood up firmly for the man who
had caTed for her at a hideaway
where she was held most of the
time.
He was a friend, she insisted,
who sought only to return her to
her parents without letting kid
napers get her.
Mrs. McMath. it was learned for
the first time this morning, visited
Peggy on Lee's boat Friday morn
ing while police of a dozen states
still were maintaining vigilant
watch for signs of possible kid
napers.
The mother spent half an hour
on the boat and then returned to
shore, lest suspicions be arouse^
that the girl was aboard.