The Key West Citizen Newspaper, May 25, 1933, Page 1

Associated Press Day Wire Service VOLUME LIV. No, 124. Key KEY WEST. FLORIDA, THURSDAY, MAY 25, 1933. For 53 Years Devoted to the Best Interests of Key West PRICE FIVE CENTS - Further Revelations In Business Of Morgan Firm | ‘Drastic Changes Would The LAW And The RACKETEER | sai pa Oe ae ae Before Senate Committee! Gains And Losses By In- yestors Related In In- vestigation Now Under Way : (By Assoeinted Press) WASHINGTON, Mey 25.—The mame of former President Cool- idge was contained-in a list of favorite purchasers of “standard brands” of stock through the J. P. Morgan company, introduced in evidence. -The list composed scores of prominent figures showed the late Mr. Coolidge purchased three thousand shares out of.a total of seven hundred twenty two thou- sand sold. The standard brands issue w: in the summer of 1929 after Mr, Coolidge left the White House. Investigators disclosed. letters from Rascob and other prominent figures “thanking” the firm: for selling Alleghany stock © under special arrangement.. In the meanwhile Pecora show- ed through questioning Whitney that bargain sales were made at the same time to Rascob and Jo- _seph R. Nutt, treasurer of the Na- hé'eotild reciprocate in:the future - Asked how’ Rascob could | re- ciprocate, Whitney * quietly ‘sug. gested that. he was chairman of YiViD PORTRAYALS OF ACTIVITIES ta LF Axsewtnted Prenm) * WASHINGTON, May 25.—A gigantic sweep of the Morgan company’s business was vividly portrayed by evidence in the sen. ate investigation today. that ‘it sold $6)024,440,000 in securities to the public since world war days. Denial by Senator McAdoo that he ‘wassa “preferred client” of the Morgan company turned the investigators back to a list. they obtained yesterday of the famous figures who were invited by the firm te purchase stock at figures below the market price. McAdoo read a prepared state. ment. asserting he lost $3,565 on three purchases he was invited to miake by the Morgan house. He however, that he made of arts on five hun- shares leghany Corpor- ation stock he was invited to pur- chase along with William ‘H. Weodin, now secretary of the ‘@reasury, and other - prominent! Persons in industrial life in 1929, George Whitney, youthful-look- ing Morgan partner, immediately: explained to the committee the a Chey nad actually listed at ie it was sold to a int Tiet at $29. si | Whitney also said that his own total profit on the Alleghany Mock sold to apecial customers Was $146,250, | Senator Couzens pointed to/ ® letter in which Woodin was of- fered the stock which said it was. then selling at thirty five tel thirty seven, A letter from John J. Rascob thanking the Morgan firm for “kindly remembering me” in selling him two thousand shares! of Allehany stock below market} veatigators, SPECIAL CASH GASOLINE SALE Effective May 26, until fur- ther notice: 5 Gallons 90; 10 Gallons $1.75 inne Albury’s Service Station Fleming and Grinnell Sts. Galf Gas Leu Smith Service Station White aad Catherine Sts. Cities Service Gas SPECIAL PRICES ON OTHER : AUTO NEEDS FLORIDA’S QUOTA ONFOREST CAMPS PLACED AT 3,000 KEY WEST ONE OF POINTS OF CONCENTRATION IN AC. TIVITIES CALLING FOR CON- SERVATION WORK (Florida Press) TALLAHASSEE, May 25.— Florida’s total enrollment for the civilian conservation corps forest camps has been set‘at 3000: men, according to a statement received from Washington by J. C. { i | i Shaking Off Gangland eo (By Assoctated Press) By NOEL THORNTON NEW YORK, May 25.—Law en- forcement agencies are discover- ing the alarming menace of the new era in racketeering lies in the fact that it is a direct onslaught on legitimate business. Until a few years ago racke- teering was largely confined to in- tra-gang warfare for supremacy in illegal liquor traffic and control of votes. New Pastures Beckon As the flood of easy money from these two activities began to trickle away, the underworld czars began inflicting their ‘strong arm extortion tricks upon _legiti- mate trades, and especially upon the small business man. The first trades to be forced to) pay toll were cleaning and dyeing plants, laundries, and milk, fish and poultry dealers. The racke- teers organize their plans so clev- erly that it is often difficult to !are now being personally inter- price, was placed before the in-! | Huskisson, Director of the Florida’ tell where legitimate business ends Emergency Relief Administra-| and illegitimate begins. tion. |: ‘Peteusiltng!. The Lamndcine Of this number 650 were chos-| 4 typical instance is in the laun- fen and sent to the United States dry business. A racketeer leader army recruiting service, May 1. forms an organization of laundries | The enrollment will be completed) in a big city borough, ‘All custom- by June 1, in order that the entire! ers are listed in.several districts, | quota may be established in work’ and each laundry is givén one cis- camps by July 1. Applicants to, trict. No laundry is allowed to fill the remaining 2350 vacancies' take work oe eecamere, cutaids its district.. The “dues” the laun- viewed and turned over to army, dry pays the racketeer are passed recruiting’ officers for prelimi-/ on to the customers in higher nary physical examinations. j charges for work. Applicants: must be. between; [If a laundry refuses to join the the ages of 18 and 25years, sin-_ organization, or if one attempts gle, and it is mandatory that they} to invade another’s territory, then be registered on the rolls of their, tS truck drivers may be beaten local “ county emergency relief its tant. ok cae dae councils. plant, or machinery an = Mr, Huskisson has announced) !¥¢"Y PU ther: Pay in it usually pays the demand- k. ? Chairmen of) all county , agencies are notified in, advance of the dates to have their men at] the ited —_ concentration; points. The ‘men who are palect- ed by the army recruiting service| will be sent to a conditioning} camp where further and mor® STRONG HOPE TO GET BRIDGE LOAN careful physical examinations will INDEFATIGABLE WORKER be made. The applicants must be prepared to entrain immediate- ly and are being asked to have with them all the necessary cloth- ing and articles for their use dur- ing the six months’ enrollment. period. Three camps have been siege “We are going to get the loan cen rperigns three National for-/+, puild the bridges. Of that I rection of National forest super-| feel satisfied,” said Wm. R. Por- visors. In addition to these, tour ‘ other camps which were recom.| tet, president of the First Nation- mended by Governor Scholit . while making preparation have been approved. They yi a Zor ee a genre focated in Bay, Columbia, Duval) to leave this afternoon for an im- and Liberty counties. These lat-| portant business conference in Mi- ter four camps will be under the| supervision of State Forester) *™- Harry-Lee Baker and will be sub-| Ject to the same restrictions and ii te lisek ba th0. te i tor) leave for Washington to take steps [to secure the loan, Mr. Porter eat . ag 5 ater agjetrng eae! said that he could not say anything his work under the direction of | Telative to that until after Gover- the United. States Department of, nor Sholtz appoints the commis- Labor, in Washington. | sioners for the Bridges District. MAKE REPAIRS TO HEMINGWAY HOME ':.2f svscsussee | Advised by The Citizen that | Associated Press dispatches are to OTHER BUILDING PERMITS the ST ie aay ok ry sioners ly not ap- ISSUED THIS WEEK BY IN- | pointed by the governor until after the adjournment of the legisla- SPECTOR PARER j ture on June 5, Mr. Porter said he ae jeould not form any iden as te Workmen are making repairs) when the body will meet in Key to the second story of the Ernest West to arrange final plans for the Hemingway home on Whitehead, visit to Washington, but is of the street. An addition is also being made to the residence. Permit for the, projects was is-| mad } sued this week from the office of Harry Baker, building inspector. LEAVING THIS AFTERNOON ON BUSINESS TO MIAMI i Attor! on his way to Washington and ex- pects to arrive there tonight for conferences preliminary to the ar- rival of the delegation from Mon- } following the appointments. Other permits for repair work — during the week are as fol- nine “| i Repairs to the front of building at Fleming and Bahama streets. : Owner, J. H. Hayes; cost, $50. | Repairs to roof of home at 1012 Division street. Galvanized {shingles te be used. Owner, Frank | | Rivas; cost, $150, i |. Repairs to roof at 729 Love; j Lane. Owner, Willis Brady; cost,} $50. es, SYLVIA SIDNEY in PICK UP See Page 3 for Reader On This Picture —alo— ESTHER RALSTON in AFTER THE BALL FOR -SECURING © BRIDGES; Asked when the delegation will| J. Lancelot Lester is| Matinee, 10-15; Night 16-25<! Seereec0eesesceooce | Hoe t Businesses. now paying billio | back, helpless before the coopers of ixGndtion, @d fansom, ors ‘afraid to al s in tribute to racketeering look | forward in hope that some day the pirate will be laid flat on its! tive effort of his present victims to throw off the yoke he hes imp osed by violence and other means | months merchants in New. Yorx, ’s Stranglehold On Business gained new courage with the re- Sult that several racket cliques have been broken up and_ their leaders imprisoned. The late Larry Fay generally is credited with originating the mod- ae idea of racketeering. In 1929 he was arrested in = charge of | conspiring to violate the general | business law by organizing the milk trade, but- witnesses failed to ap- pear and he was discharged. Later he tried, unsuccessfully, to organ- ize New York's taxi drivers, de- manding $1 a month “dues” from each driver. Other Racketeering Fielcs In Chieago the state’s attorney is seeking Murray Humphries, credited with having suececded to most of Al Capone’s power, and other reputed “big shots” to question them about their activi- ties in cleaning and dyeing and trasportation industries. Law agencies and the Ameri- can Federation of Labor have been alarmed by a system where- by racketeers sift enough of their ; members into a union local to Provisions For Key West 4 Referendum On Bill ¥ . Passed By Legislature » CITIES DEFAULT | Passed By Lert INBOND DEBTS) Pa, GOVERNOR MAKES SURVEY ere OF CONDITIONS sHowiNc| The salient points in the 159 OUT OF 181 FAIL To|neW charter for Key West, MEET OBLIGATIONS are herewith (oe Oe the information of the peo- einige Whee) ple. This charter ‘was re- TALLAHASSEE, May 25.—'cently passed by the legis- Governor Sholtz recently gave the lature at Tallahassee in a legislature a bond survey showing bill offered by the senator that 159 out of 181 cities in Flor.|°"4 Fepresentative from {ida are now in default either on ‘principal or interest or both. This data has been supplemented with figures showing that actual val- ues of real estate in the major of Florida’s bonded cities have drop- ped from three billion dollars in 1926 to little more than one bil- lion in 1933; while the principal debt had dropped from $222,000,- 000 to $204,000,800 in 103 cities | vote out the regular officers and vote in their own regime. In (addition, a number of “Outlaw” ‘unions have been organized which jare not in any way affiliated with the Federation of Labor. The Law intervenes State’s Attorney Courtney and |i aides are now seeking to | break up gangster control by hav- jing the union locals hold new lelections under the supervision of ‘his office. The federal government is mov- ing in on the efforts of gang- ;sters to get a stranglehold on 3.2 |beer, Agents from the attor. ney general's office charge that several .3.2 beer. ...licenses ,..have been, granted to breweries secret- | Discussion \MOONEY EXPECTING HIS LIBERTY SOON | ENCOURAGED OVER DIRECT- ED VERDICT ON UNTRIED INDICTMENT | (iy Associated Press) SAN FRANCISCO, May 25.—Tom Mooney, back in San Quentin today after a directed verdict of ac- ital on a hitherto untried indictment, predicted the ver- dict would bring him liberty soon. Plea for a pardon may be the president, prison } } { | carried to | Mooney said. ‘MRS. SHOLTZ TO FLY TO HAY | (Ry Axeoctated Pree) DAYTONA BEACH. May 25.—} holtz, and three chil- ldren left bere for Miami whence ishe plans te fly Friday to Havana | | i Mrs. Dav’ ‘In Legislature (By Associated Press) TALLAHASSEE, May 25.— The house tocay scrapped over! fixing load weight limite for} trucks and buses operated on highways, while the senate defied a threatened veto by Governor ; Sholtz on the measure reducing/ derson, salaries of state officials approx. imately twenty per cent. The house touched off another fight over charges of graft in set- tling dates for conducting race tracks. Telling the senate he was “re- liably” informed that the gover- nor intended to veto the salary bill, Anderson asked the senate to probably be put on trial at the next! ‘term of circuit court which con-| recall the measure and change it to avoid a veto. Gillis said the legislature should not change the bili to meet the] ot the jury that the body stood| governor’s wishes, and should not [be influenced by a threat of a/ of manslaughter and veto. The senate first agreed to re- call the bill but later voted to leave it with the governor. The house defeated an attempt! for « verdict of manslaughter, ider| was said. by Eveli of Manatee to recom the vote of yesterday defee € }an amendment to raise the weight! H | Yumit on trucks and buses from) [opinion the meeting will be held | for about a week's stay. She will eighteen to twenty jas soon as arrangements can be return from there to Tallahassee. i pounds. thouand |to the police, However, in-recent | Chicago and-other big cities Kave|ly owned by gangsters. . i RRETAINS (Governor's Threats To Veto - Salary Bill Starts Great JURORS FAILTO REACH AGREEMENT IN WAPLES’ CASE AFTER LONG . DELIBERATION BODY 1S UNABLE TO COME TO VERDICT; MISTRIAL 1S OREDRED AGAIN IN CASE Another jury has returned & “No Verdict” report in the case of William P. Waples, twice tried on @ charge of killing Barry An- * At 5 o’clock yesterday after- Eee Judge Jefferson B. Browne convened ‘court to receive the re-) port of the jury. The foreman, Paul Monsalvatge, reiterated what was said 10 o'clock in the morning, | that there was no possible chance of the jury agreeing. Jadge Browne discharged the ‘jury and continued the case from {this term of court. Waples will | venes the third Monday in Octo- ber. | It was learned from a member seven for conviction on a charge five stood firmly for acqnittal. At the firet trial, which was con- cluded May 3, the jury failed to jarrive at a verdict. Six of the |jarors were for acquittal and tix it iin “Retomeaaense a NOTICE, B. P. O. ELKS | Members of Key West Lodge | No. 661, B. P. O, Bika, are request- led to be at the lodge room tomer ” ivow afternoon at 3:30 p. m, for ANNOUNCING OPENING OF ORANGE INN 425 Angele Street PABST BLUE RIB Carton BON BEER, $1.00 No bhettle deposit--6 to carton ithe purpose of attending the fun- ‘ eral of ur late brother, George F. By order of the Exalted Raler. t i may26-1t SEVENTEEN By Senter Clam in SCHOOL : Haac | G. N. GOSHORN, | Secretary. whose debts comprise most of the principal obligations of the state, An unusual example of this de- ‘crease in property values of Flor. the ‘caption, as found by compilation, is Safety Har- In 1926 Safety Harbor had 1982-38 the values ‘of real estate have so decreased that its debt now amounts to $5,372 for every $1,000 of assessable values, or net increase of debt since boom of 17,830 percent. Another heavily bonded city is Bellair, in Pinellas County, where the bond debt todey amounts to $5,230 for every listed resident. Safety Harbor’s per capita debt is $1,007; Coral Gables owes $1,424 for every resident; Palm | Beach also has a high per capita city debt, $1,239; but its bonded debt for every $1,000 worth of assessable property is only $29, one of the lowest of the South } Florida cities. The average shows that in 1926 cities of Florida owed $74 on each $1,000 worth of property, while in 1933 owing to the shrink- age in values and lack of any ma- | terial change in the outstanding debt, the burden has exactly doubled, now being 46 per » @ {thousand for @ statewide average, MALONE HEARD AT ROTARY MEETING BILLS | EXPLAINS VARIOUS INTRODUCED IN LEGIS. LATURE The Rotary members, at their regular luncheon today, heard an address delivered by Mayor . Wil- im H. Maione, who talked on the jous bills that have bean intro- ‘duced in the legislature, principal- ily those affecting Monroe county. Mr. Malone expiained the nature of each measure referred to, and | | i | j throughout. } The club decided at the meeting |today to send President Roosevelt ia pictare of himpelf which was | purchased from a local boy whe ‘made the figure eat of wood, [whieh is considered « very clever [piece of work. The pictare will be to [the chief exceutive of the nation jim the name of the Rotary Club jof Key West, im connection with | which Mr, Koosevalt will be in- ree adupsed his address was an interesting one! Monroe. At a meeting of the Economic League of Key | West, which drew up the ‘charter and sponsored the bill, it was decided to give jto the public, in a condensed | form, a summary of the changes in order that a complete knowledge of the familiar ; the members to be elected by the ity at large. x ai hy a member of the council, From the other five one will be selected as president. Each member of the council will be pnid $4 for each meeting at- tended, provided that in no year will any member be allowed to ceive more than $200. Salary « the mayor may be fixed by ordi- nance. The city will be divided into #ix wards or election districts. At the end of two years council may change the number of wards or alter the boundsries. List Of Officers .. The complete roster of officials and officers of the city's gover ment follows: Mayor, city eour- cil, chief of police, sergeant of police, city clerk, municipal judge. known as police justice; tax col lector-assessor, dity attorney, chief of fire department, health officer, sexton. board of election commis sioners, three members; board of public works, five members, end j suck others as may be provided by jordinance, not inconsistent. here- j with, J All officers shall be qualfiied voters. They will perform. wuch duties and receive such compen tion as prescribed by ordinance, not inconsistent herewith, No member of the couiicil nor jany appointe* officer, nor any jother officer, shall, in any man- iner, be connected direetly, or in- |direetly, in any kid +f work to tu idone under contract for the city, | Council cannot pay any contractor for werk performed until be makes in sclemn osth thet no person con- netted with the city government ix in any wey connected elih the controct. Mayor's Duties The mayor shell see thant ali jordinances ore faithfully ¢zacet- led. bie will be empowered by, ant iwith, the consent of city council, organize a police foree of suf | fieent strength to insare peace land good order within the fain-<> jou! fisatts of the city. He shail ap- | stent all officece of the city ger [erhment not otherwise proviied itor. é The power is vested in the mayer jto make temporary appowtortii» lie fill vacancies im any office, ex (cept city council and beard of po-