The Indianapolis times. [volume], July 08, 1933, Capital Edition, Image 1

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

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AY -turps - HOWAMD
TWO BLAZES
AT BREWERY
ARE PROBED
Al Feeney Orders State
Marshal to Delve Into
‘Mystery.’
DAMAGE KEPT SECRET
Second Fire Breaks Out
With Guards on Duty
at Plant.
Two fires Friday night and early
today in the plant of the Indian
apolis Brewing Company, 1330-1340
Madison avenue, are being inves
tigated today by officials of city and
state.
Al Feeney, state safety director,
announced that he has assigned
Clem Smith, state fire marshal, to
the case, while another probe has
been started by the city fire preven
tion bureau.
While five guards were posted in
the brewery early today following a
two-alarm fire which swept through
the four-story structure at 6:45 p. m.
Friday, another fire started at 3
a. m. today in the malt bins.
"Smith will take personal charge
of the investigation," said Feeney,
' and I have instructed him to start
a probe immediately. Ordinarily, the
state does not step in to investigate
fires in the city unless requested to
by the city fire department.
Requires Immediate Attention
"But due to circumstances sur
rounding the two blazes at the brew
ery, 1 feel that it requires our imme
diate attention."
Brewery employes fought the fire
which started in the old wing of
the building today until the arrival
of the fire apparatus. The owners
would not state what the damage of
the early morning fire was, but
feared that some of the hoppers
valued at more than $2,000 each
were damaged beyond repair.
Loss in the Friday night fire was
estimated by the fire department
to be about $2,000.
Commends Fire Fighters
John O. Spahr, attorney and
spokesman for the International
Brewing Company, operator of the
plant, commended the work of the
salvage corps, stating that its work
had saved thousands of dollars’
worth of new equipment which just
had been moved in, pending stdtt
of manufacture.
He pointed out that Paul Fry,
state excise director, had not yet
granted the brewery a permit to op
erate. Spahr said that despite the
fire the brewery would start opera
tion in about two weeks, employing
about 300 persons and would manu
facture "good beer.”
Less than an hour before the
blaze swept through the older por
tion of the building Friday where
malt bins and elevator equipment
were stored, 100 men employed in
renovation work had quit for the
day.
Flames Shoot Into Air
Flames which shot more than 100
feet in the air enveloped the old
wing of the structure. Thirteen
pieces of fire apparatus responded
to the alarm. Firemen, fighting
their way through the dense smoke,
soon had the flames subdued.
But brands carried by wind
started a half dozen small fires on
the roof of the Geisen Products
Company, a bottling concern, oc
cupying the northern portion of the
brewery plant. Firebrands also fell
on a dozen roofs of homes north
east of the plant.
Considerable mystery thus far has
surrounded the opening of the brew
ery. Gold Medal beer, the name of
the brand originally manufactured
by the City Brewery Company, the
original owners, was pre-empted
when the Home Brewing Company
began to rehabilitate the plant early
in July.
Refused Permit by Fry
Frank Mayr Jr., secretary of state,
held up papers of incorporation and
Fry refused a permit. At the
brewery today, officials said that the
International company would oper
ate the plant solely, henceforth. Its
officials asserted they had bought
the building from John Beyer of
Southport.
Spahr said he believed the build
ing was covered fully by insurance
against fire loss.
Several weeks ago. an investiga
tion was made by The Times of
charges that 75-cents-a-dav wages
were being paid in rehabilitation of
the brewery.
Officers in the proposed corpora
tion admitted that men were being
paid as low as $1 a day for clean-up
work.
SUICIDE EFFORT FAILS
Attempting suicide by inhaling
gas from a stove. Miss Doris Blake.
24. of 6724 Julian avenue, was found
unconscious on the floor of her
home Friday night and taken to
ctiy hospital. Her condition is not
serious.
Times Index
Amusement Page 2
Book-a-Dav 6
Bridge 6
Broun Column 4
Classified 10
Comics • • 11
Conservation 6
Crossword Puzzle 9
Curious World 11
Dietz On Science 6
Editorial 4
Financial 9
Johnstone Cartoon 4
Lippman Column 9
Radio 12
Serial Story It
Sports 7
Vital Statistics 9
Woman s Page 5,
The Indianapolis Times
VOLUME 45—NUMBER 50
RICHARD DIX’S MARRIAGE ON ROCKS
Richard Dix of the movies and
his wife, the former Winifred
Coe. have separated after two
and a half years of marriage. Dix
hi * s wa - sn ' t interested in
jHHpP 4|p*' movies, and that he wasn't inter
ested in society, hence the split,
f They have one child, a girl, born
early in the year. The couple is
pictured here in happier days.
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12 Lives Lost as Flood
Wipes Out Canyon Towns
udden Cloudburst Brings Disaster to String of Resort
Colorado Hamlets and Fishing Cabins.
By United Press
MORRISON, Colo., July B.—At least a dozen lives were
lost Friday as a sudden mountain cloudburst poured a ten-foot
wall of water down Bear creek canyon upon a string of re
sort towns and fishing cabins.
GOAL DEALERS
FIGHT LOW PAY
Form Group to Push Up
Wages: Fair Code to
Be Sought.
With several mine wage increases
made and others in prospect, In
dianapolis' larger retail coal dealers
have ihcorporated the Indianapolis
Coal Merchants’ Association for the
purpose of establishing a code that
will compel coal dealers to restore
fair living wages to all employes.
The association will serve as a
skeeton organization locally for the
national recovery act when it be
comes applicable to the coal in
dustry. Incorporators are prepar
ing for a reversal of the general
business practice during the last
few years which has been to force
prices downward by reducing labor
costs.
Incorporators include: L. F. Shut
tleworth, director of the Indiana
Coal Merchants’ Association and
National Retail Coal Merchant
Association; H. L. Dithmer Sr.,
Polar Ice and Fuel Company;
Charles S. Merrick, Muesing .and
Merrick Coal Company; R. W.
Tubbs, Monument Coal Company;
V. W. Potts, Gem Coal Company;
Earl Z. Sigmon, Sigmon Coal Com
pany, and E. E. Heller, E. E. Heller
Coal Company.
ITALIANS STILL HELD
DOWN BY WEATHER
Air Squadron Ready for
Hopoff at Any Time.
REYKJAVIK. Iceland, July 8
Bad weather continued today to hold
Italy’s air fleet of twenty-four sea
planes, en route to the Chicago ex
position. General Italo Balbo was
ready for a quick takeoff for Cart
wright. Labrador, as soon as condi
tions were good.
INSPECTION IS BEGUN
Officials of Three Counties Make
Tour After Meeting Here.
Inspection tour of Marion county
highways by officials of Madison.
Hancock and Warren counties fol
lowed a luncheon meeting at the
Antlers Friday.
Marion county commissioners. Dow
Vorhies. Ernest Marker and Thomas
Ellis, and J. P. Johnson, contractor,
were hostes to the visitors.
Bruce Short, county surveyor, ex
plained to the guests the $1,400,000
improvement program planned lor
Marion county in the next year and
a half with the proceeds of a gov
ernment loan.
Arthur Chevrolet Held
on Hit-and-Run Charges
Accused of being the hit-and-run
driver who lashed an lderely woman
and her son with a length of wire
cable after sideswiping their car.
Arthur Chevrolet. 2911 East River
side drive, well-known motor manu
facturer. was arrested on assault and
battery charges Friday night.
Chevrolet was released on SSO
bond and was scheduled to appear
today in municipal court three.
He was arrested on an affidavit
filed by Fred-Freije, 20, of 4102 Cor
nelius avenue.
Freije said he and his mother.
Mrs. Rebecca Frere, were driving in
the 4300 black of North Meridian
Mostly cloudy and somewhat cooler with showers tonight and possibly Sunday.
Richard Dix of the movies and
his wife, the former Winifred
Coe, have separated after two
and a half years of marriage. Dix
said his wife wasn’t interested in
movies, and that he wasn't inter
ested in society, hence the split.
They have one child, a girl, born
early in the year. The couple is
pictured here in happier days.
Two towns, Morrison and Star
buck, almost were wiped out as the
torrential flood struck. Scores of
cabins along the canyon between
the two points were destroyed.
Property damage ran into the
hundreds of thousands of dollars.
Every bridge along the canyon be
tween Morrison and Starbuck was
washed out, and long stretches of
the road itself were destroyed.
Hundreds of head of live stock
were drowned.
Known missing and believed dead
were:
Mrs. Soderman.
Eunice, her daughter. 4.
W. L. Burton of Starbuck.
Ben Corbi, about 6. of Starbuck.
Bud Corbi, his younger brother.
Reports from Starbuck, reached
on foot by a rescue party from here
after all telephone lines had failed,
said that the town was a shamblas
and that at least nine persons were
missing.
Not one house in the tow r n, where
ordinarily about 150 persons lived,
was untouched, it was said.
From Starbuck to Morrison, re
turning members of the party said,
wrecked cars were numerous with
no traces of their occupants to be
found.
FACTOR RANSOM
OEALBLOWS UP
‘Pretty Boy’ Floyd Said to
Be Member of Gang
Holding Broker.
BY ROBERT T. LOUGHRAN
United Press Staff Correspondent
CHICAGO, July B.—Two of the
west’s most feared desperadoes,
Charles (Pretty Boy! Floyd and
Verne Sankey, are suspected in the
kidnaping of John (Jake the Bar
ber) Factor, the United Press
learned today.
At the same time is was disclosed
that negotiations for Factor’s re
turn. conducted secretly since he
was abducted a week ago this morn
ing. have collapsed entirely.
FARM PLAN APPROVED
State Hog and Corn Growers Agree
to Reduction Program.
Resolution approving the agricul
ture adjustment act provision for
reducing hog and com production
to raise prices was adopted at a
meeting of more than seventy hog
and corn growers of the state Fri
day at the Claypool.
The group named a committee,
headed by William H. Settle, Indi
ana farm bureau president, to at
tend a national meeting of corn
belt state representatives at Des
Moines. la., July 18.
j street. Thursday night, when a car
attempted to pass from the rear and
struck their machine.
A short argument ensued. Freije
charged, and the driver of the other
car obtained a wire cable length
from his car and struck Freije in
the face. Freije said the other dri
ver also struck Mrs. Freije in the
face with his fist and belabored her
shoulders with the cable.
The other driver then cursed
; them, returned to his car and drove
away. Frieje told police, who sought
Chevrolet when they found the li
cense plate number given them by
j Freije corresponded to the one issued
' to Chevrolet.
INDIANAPOLIS, SATURDAY, JULY 8, 1933
PRICES RISING
TOO SWIFTLY,
CAPITALFEARS
Wages Must Keep Pace, Is
View of Administration
in Revival Drive.
FIGHT TO STEM OUTPUT
Glutted Market May Bring
Dreaded Collapse,
Warns Johnson.
BY RAYMOND CLAPPER
United Press Staff Correspondent
WASHINGTON, July 8. Two
main worries have thrust them
selves up before busy administra
tion officials directing the recovery
drive.
One is the rapid rise of prices.
The other is the rapid increasing
in output.
Energies at the week-end largely
were concentrated on these two
situations.
As to prices, the administration
still has a long way to go in its
drive to lift them up to normal.
They now are about one-third be
low the 1926 level, which is the
general target. But the adminis
tration does not want to see this
climb all in one leap.
Drive to Get Wages Up
That would make it impossible
for persons still on depression
wages and salaries to buy goods.
General Hugh Johnson and his
recovery administration are driving
to get wages up.
It is slow work. The national
industrial administrator is issuing
blunt warnings that unless wages
and people are put back to work
through shortening of hours, they
will not be able to buy.
If they can’t buy, goods will pile
up in factories and on store shelves.
Then there will be another collapse.
General Johnson shudders to think
what would happen if that should
occur.
Restraint Is Urged
Failure of this effort, would not
bring back the old system, accord
ing to the view of many here. Gen
eral Johnson says that if the last
collapse brought about the present
attempt at government directions,
the Lord only knows what another
collapse would bring about.
What Washington is asking now
of business men is patience and re
straint. Business men are asked to
be content with modest profits, and
to hold their production to the
limits of probable consumption
while wages and consumer buying
catch up.
Washington officials are deadly
in earnest in this. A glutted mar
ket or prices out of reach are re
garded in the administration as
dangerous. Those who contribute
to such conditions are regarded as
menacing general recovery.
Stabilization Is Problem
Farm prices are most out of line.
They are about 45 per cent below
1926. Foods, textiles, and fuel are
about 35 per cent off. Building ma
terials, chemicals and house fur
nishings are off about one-fourth
from 1926.
Hides and leather products suf
fered least, being bout 15 per cent
(Turn to Page Three)
ARMED MILKMAN NABS
TWO THEFT SUSPECTS
Drivers for One Company Accused
of Robbing Rival.
Two milk company drivers were
arrested early today after they are
alleged to have been halted at the
point of a shotgun in the act of
stealing a case of milk from a driver
for another milk company.
Under arrest an vargancy charges
are Wallace and Frank Fritsche, 21
and 19, brothers, of 3003 South
Rural street. They are drivers for
the East End Dairies, Inc.
Police were called to the 2300
block of North Alabama street
early today by Elmer Cory-, 2601
North Rural street, William H.
Roberts & Sons dairy driver.
Cory said he had been missing
milk for some time and had de
cided to “lay for the thieves,” with
a shotgun.
THROW ALKY FROM CAR
Five-Gallon Can Tossed From Auo
During Police Chase.
A grip containing a five-gallon
can of alcohol was reported thrown
from a small coupe pursued by po
lice after the door of another auto
mobile had been torn off at Twen
tieth street and Martindale avenue
Friday night.
The police lost the coupe at Co
lumbia and Twenty-third streets
just after the driver had thrown the
suitcase containing the alcohol into
the street. A man and woman were
reported to be in the coupe.
OBSERVE INDIANA WEEK
Thompson Chain of Restaurants To
Feature Products on Menus.
Observance of Indiana week the
Thompson chain of restaurants will
begin Monday, it was announced to- i
day by Sampson Shaffer, local man
ager.
Indiana decorations will be placed
in restaurants and products of the
Hoosier state featured on menus. j
Governor Paul V. McNutt said |
Mayor Reginald H. Sullivan have
been asked to participate in an
opening day program. i
BANKER DIRECTS KIDNAPER HUNT
jHH 1 1
John King Ottley, above left, president of the First National bank
of Atlanta, Ga., is directing the search for a man who kidnaped him
for $40,000 ransom.
An alleged accomplice of the kidnaper, Pryor Bowen, above right,
17, freed Ottley after the banker had been forced to drive to a deso
late spot in the woods in his own car, and the kidnaper had left to
deliver a ransom note.
The entrance to Ottley’s home, where the kidnaper accosted him, is
shown below.
Soviet Plane Speeds to
Jimmy Mattern’s Rescue
Big Arctic Patrol Ship Roars Up Siberian Coast to Lend
Aid to Marooned Airman.
BY EUGENE LYONS
United Press Staff Correspondent
MOSCOW, July B.—A Soviet Russian Arctic seaplane,
with a crew of five, roared up the Siberian coast today to the
rescue of James J. Mattern, American round-the-world avia
tor, reported safe at Anadrisk, near the Bering strait.
THEFT LAID TO
EX-DRY CHIEF
300 Gallons of Alky, $126
in Office Equipment Is
Missing.
By United Press
HAMMOND, Ind., July B.—Walter
Jones, former head of the federal
prohibition forces in the Hammond
district, and three other men, were
to be arraigned before the United
States commissioner here today, on
charges of robbing the Hammond
prohibition office.
Jones was arrested at East Chi
cago. Robert Harden and Wayne
Harden were arrested here, and
Joseph Adich was apprehended at
Indiana Harbor. The warrants
were signed by Herman V. Atkins.
Ft. Wayne, deputy United States
marshal.
Loot in the robbery consisted of
300 gallons of alcohol and $126 worth
of office equipment.
Jones had a reputation for par
ticipating in numerous raids while
a member of the prohibition force.
He was one of eight Indiana pro
hibition agents released July 1 as
part of the federal economy pro
gram.
BEGIN HOLIDAY AT FORT
Citizens Soldiers Will Take Vacation
Over Week-End.
Citizen soldiers attending the
Citizens' Military Training Camp at
Ft. Benjaminin Harrison today be
gan a week-end holiday, following
a minute inspection of the camp by
Colonel William R. Standiford this
morning.
The first parade of the camp was
held Friday before a large group of
spectators.
How the Market
Opened
BY ELMER C. WALZER
United Press Financial Editor
NEW YORK. July B—Stocks
opened active with prices irregular
today. The feature was a block
of 50.000 shares of Radio Corpora
tion OT 11%, up %.
Other blocks ranged up to 5,000
shares. General Electric, a favorite
in the late trading Friday, opened
unchanged at 29% on 5.000 shares.
Westinghouse Electric, another star
performer in the late dealings oi
the previous session, opened 2,000
shares at 55. off %.
Steel common receded to 65%.
off %: Montgomery Ward 27%, off
1; United Aircraft 37%, off 1:
Union Pacific 127%. off %: Dupont
81%, off %; Case 95%. off %; Union
Carbide 44. off %; Chrysler 37%, off
%; American Can 93%, off 1%, and
Sears-Roebuck 444%. off %.
Public Service gained nearly a
point to 54% and smaller advances
were noted in Western Union. Stand
ard Oil of California. Columbia Gas,
Kennecott and U. S. Smelting. Wool
worth rose nearly a point to equal
its high at 49%.
The foreign office received word
that the motor of Mattern’s plane
was wrecked.
Professor Otto Schmidt, famous
Polar explorer and scientist in
charge of all governmental Arctic
stations, told the United Press today
that the seaplane was on its way
from Khabarovsk to the barren
country whence a telegram came
Friday signed by Mattern, and say
ing he was safe.
Chief Pilot Levanevsky is in
charge of the heavy plane, and has
four men with him.
"I have instructed Levanevsky to
find Mattern, and render him all
assistance,” said Professor Schmidt.
"If Mattern’s plane was not
wrecked, Levanevsky has capable
mechanics, who will be able to re
pair it and permit Mattern to take
off.
“Certainly Levanevsky is in better
position than anybody to establish
contact with Mattern.”
There is a radio station at Anad
risk, but the town is cut off from
civilization most of the year and
communication is most difficult at
all times.
In the Air
Weather conditions at 9 a. m.:
West wind, 9 miles an hour;
temperature, 80; barometric pres
sure, 29.94 at sea level; general con
ditions, overcast; ceiling, estimated,
8,000 feet; visibility, 12 miles.
RACETRACK
■■——>.—>.—...—ii n|i ~ BY O. REVILLA
LATONIA RACE TRACK, COVINGTON, Ky„ July B.—The Whitney-
Goldblatt combination again is elected to furnish one of the good
things of the meeting, in Pantaloons in the fourth. No doubt J. Mayer
will be in the leather, as they will be going for the money.
The big race of the week will be
run in the sixth, knowm as the
Quickstep Handicap. Several late
arrivals swelled the entry list to
twelve which will face Starter Bill
Hamilton today. They are:
Horse. Weight. Morning
line
Jockey odds.
•Pancho Lopez 105 Mayer 6-1
Agincoart 101 Mo boy 15-1
No Moie 115 Arcarro 3-1
•Morsel 105 Callahan 4-1
••Supreme Sweet 101 Allen 6-1
Leros 108 Miller 8-1
•Marooned 103 No boy 4-1
Isaiah 104 Kennick 8-1
Gift of Roses 106 Arnold 3-1
Jesse Dear 91 South 8-1
Pancoast 109 Laidlev 10-1
•Mrs. W. E. Schmidt. Superior Stable
entry.
•*Le Mar Stock Farm entry.
A mighty fine array of horse flesh
running for $2,500 added and fig
ures show Clarence Davidson’s No
More should step right out and do
it. although figures do a lot of fun
ny things, especially in handicap
races. The big Hoss Cambridge
shire, from Cuba, looks like a re
peater in the fifth and Monty M
should cop the third.
The best looking thing on the
Arlington card is Jovius in the
sixth. If the track should change
to soft, Charley O would take his
place.
Entered as Second-Class Matter
at Postoffice. Indianapolis
JIM WATSON ‘BACK
OF SCREEN’ IN BIG
INSURANCE BATTLE
Connection of Ex-Senator With Gigantic
Plan to Take Over Illinois Life
Company Is Revealed.
MILLIONS INVOLVED IN HUGE DEAL
a .., ■■
Hoosier Political Leader Said to Be Slated
for ‘Director and General Counsel’
of Organization.
BY CHARLES E. CARLL
Times Staff Writer
CHICAGO, July B.—While 70,000 policyholders of the
defunct Illinois Life Insurance Company today await a fed
eral decision on the future of their millions in investments,
James E. Watson, Indiana's former senator, is waiting to see
if he will add the insurance business to his gains of a varied
career.
Watson, The Times has discovered is active in seeking
control of the firm that, before its crash nine months ago,
was one of the greatest insurance companies in the middle
west.
Its 70,000 policyholders held insurance valued at $144,-
000,000 and assets of the company were at the $44,000,000
mark.
Activities of the former senator, known to his associates
WOMAN FLIER
RACINSRECORD
Amelia Earhart Pauses at
Amarillo, Tex., in Dash
Across Country.
By United Press
AMARILLO, Tex., July B—Ame
lia Earhart Putnam took off for
St. Louis at 8:10 a. m. today after
an emergency landing here on her
dash to beat her own transconti
nental speed record.
A loosened hatch on the cockpit
of her plane foreed her to make an
unscheduled stop here . Airport
mechanics quickly repaired the
hatch and she resumed the flight.
The famous woman pilot who
took off from Los Angeles at 1:12
a. m. (cst) today for Newark, N. J.,
landed here at 7:45 a. m.
She told airport attendants the
hatch became loosened before she
reached the Texas line. The re
pairs were made while her plane
was being refueled and oiled.
SWINE STEADY TO 5
CENTS OFF AT YARDS
Cattle Prices Unchanged; Receipts
Are Light.
Hogs were steady to a nickel off
this morning at the union stock
yards, weights over 160 pounds
showing the loss and underweights
holding even with the previous
range. The bulk, 180 to 350 pounds,
sold for $4.50 to $4.75; 130 to 160
pounds, $3.50 to $4. Receipts were
estimated at 3,500. Holdovers were
308.
Cattle were mostly steady with
light receipts of 100. Vealers sold
off 50 cents, ranging from $5.50
down. Calf receipts were 150.
Lambs were 25 to 50 cents lower
than Friday’s average. Most sales
were made at $8.25 down. A few
sold up to $8.50. Receipts were 200.
HOURLY TEMPERATURES
6 a. m 75 8 a. m 81
7 a. m 77 9 a. m 81
10 a. m 82
Today’s Selections
At Latonia—
1. Bitter Root, Weaver Bird,
Spring Station.
2. Bichloride, Babee, Bright Em
blem.
3. Monty M, Terrain, Dendirl.
4. Pantaloons, Bay Angon, Shaker
Lady.
5. Cambridgeshire, Jessie Dear,
Butter Beans.
6. No More, Gift of Roses, Leros.
7. Honey Locust, Field Goal, Gyro.
8. Scarlet Brigade, Judge Direnzo,
Brush Down.
Best—Pantaloon.
Track—Fast.
At Arlington Park—
1. Calumet Farm Entry, Gold Sig
net, Black Harmony.
2. Trinchera, Commuter, Miss
Tulsa.
3. Pairbypair, Dyac, Dark Love.
4. Plucky Play, Helianthus,
Springsteel.
5. Mati Hari, Slap Dash, Spoilt
Beauty.
6. Jovius, Charley O, Barnswallow.
7. Annimessic, Noelwood, Tickery
Tock.
8. Pharaheda, Peace Lady, Batty.
9. Eskimo, Outbound, Dark Sea.
Best—Jovius.
Track—Fast.
Capital
EDITION
PRICE TWO CENTS
Outside Marion County. 3 Cents
as “The Hon. James E. Wat
son,” in the bid for mutual
ization of the defunct firm
with the aid of an R. F. C.
loan of $3,000,000 have been
kept secret.
In this city, men who have been
interested in reorganization of the
company since its receivership last
fall were not aware that Watson was
involved in the transaction.
He would be, it is said, a director
and general counsel for the com-,
pany.
The group with which Watson is
“associated” is known to Judge
James H. Wilkerson and his com
mittee of three attorneys, who will
make the recommendation on resur
rection of the company, as “Hugh D.
Hart and associates.’’
Watson Behind Scenes
Watson never has appeared be
fore the committee, named by the
court, and Wilkerson told The Times
that the bid backed by the group
had not made its appearance until
after open hearings in federal court.
It is one of fifteen before the com
mittee.
Although Watson’s associates deny
that there is any attempt to make
money speedily, and that profits on
new business of the company, under
their mutualization plan will be the
only revenue source, expert insur
ance men of this city say that with
a 10 per cent share in the company,
when formed, “we never would have
to worry about the future.’’
First admission that Hart and
Watson were involved in the at
tempts to gain control of the com
pany came from General Abel Davis,
chairman of the board of the Chi
cago Title and Trust Company, and
receiver for the insurance firm.
Davis, head of a mammoth com
pany in his own right, has been in
charge of the receivership since the
company crashed.
Three Attorneys Named
Several weeks ago, judge Wilker
son turned the proposals for re
habilitation of the company over to
three attorneys—Will H. Thompson,
Indianapolis; Thomas L. Marshall,
Chicago, and Sam Swansen, insur
ance attorney of Milwaukee.
The committee has heard oral pre
sentations on each of the fifteen
bids for the company in private
meetings and Monday or Tuesday
is scheduled to recommend one of
them to Wilkerson.
Members of the committee have
been silent on the Hart-Watson
proposition. They assert, that as
agents of the court it is their duty
to reach a definite recommendation
and present it to Wilkerson. Mar
shall told The Times that he
feared any advance publicity on any
of the bids would tend to “panic’ 1
policyholders.
'The Times does not know which
of the bids will be accepted and
does not make the assertion that
the Hart-Watson proposition even
has obtained serious consideration).
Carlstrom Denies Reports
After the admission from Davis
that Watson was in the transaction.
The Times correspondent talked
with Oscar E. Carlstrom, former Re
publican attorney-general of Illi
nois.
Carlstrom immediately denied re
ports that Hugh D. Hart and asso
ciate would rewrite present policies,
collecting huge commissions on the
first year’s business, that might run
into millions.
“Our proposal is fair to the
policyholders,’’ he said. “We couldn’t
and wouldn’t attempt any such
scheme.”
“If that was the plan, you
wouldn’t be a party to it as counsel
in these hearings?’’ he was asked.
“I should say not,” he replied.
Would Tear L’p Proposition
“You'd tear up the proposition?
“I'd tear up the proposition,” he
answered. “No man with any self
respect would attempt such a thing
and still face one of those policy
holders.”
Carlstrom explained that Watson
had been here recently and was on®
of the “associates.” He also con
firmed the fact that Watson had
not appeared at committee hear
ings.
Carlstrom said Patrick j. Hurley,
(Turn to Page Six)