The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1929-01-29
STATE Senate
ORDERS PROBE
ON ARMORIES
One Firm Constructs e
Buildings, Search Of
Records Shows.
NAME QUIZ COMMITTEE
Expenditures of More Than
Million and Half Are
Involved.

Investigation of the method of
constructing national guard armor-
les throughout Indiana by the OS-
trow Realty and Construction Com
pany of Indianapolis, financed by
it's parent institution, the Peoples
State bank of Indianapolis, was Or
dered today by the state senate.
Through a plan Of holding CONF
panies of citizens of the various
communities, the state armory board
has fostered construction, by the
OStrom company alone, of twenty
three armories, involving expendi-
ture of more than $1,500O00.
The resolution for the investiga-
ton was introduced by Senator
Thurman A. Gottschalk of Berne,
Democrat.
Lieutenant Governor Edgar A.
Bush named Senators Alonzo Lind
ley, French Clements, Carl M. Gray,
Denger G. Harlan and Charles r.
Morris to make the investigation.
They are to report not later than
Feb. 8.
Present Policy Questioned
Gottschalk is a member of the
state budget committee. His motion
was seconded by Senator Luther
o. Draper of Spiceland, Republican,
also budget committee member.
The resolution asks the committee
to determine the advisability of per-
mitting the state armory board to
continue its present policy, to de-
termine the amount of money al
ready spent, and the amount con-
templated for expenditure.
Explaining the motion, Gott-
schalk said that when the legisla-
ture gave the acknowledgement
$3.50, 900 iii 1927 for arnory rentals,
1t was led to believe that, under
the policy of holding corporations,
the rentals would take care OF the
bonded indebtedness. Now, how
ever, he said, the acknowledgement
presents q budget request of $780,
600 for rentals and this probably
would continue for the next fifteen
years.
II don't want to say there Is any
thing crooked said GottschalIc
''but there now is $1,572,00O OF i'm
debtedness on ar1nories, and by
next October the state arinory
board will have added another mill
lion to that.
Wants Light on Subject =
st question the methods of con-
struction, since all the financing Is
done through the Peoples State
bank and all the construction by
the Ostrom Realty and Construc-
ton Company, which is subsid-
iary of that bank. We have a right
to know. would like to know Il
everything is exactly right"
Henry Ostron, head of the con-
struction company, was out Of the
city.
Felix M. McWhirter, president Of
the Peoples State bank, commented:
Evident intention of the Indiana,
state senate to become informed of
the manner and extent in which the
state has proposed through its ar
mory board to fulfill its responsibili~
ties is commendable.
Certainly, the committee will as.
certain upon reviewing the records
Of the Office Of the state board of
accounts that the armory board has,
through cooperation of the subStan-
tial citizenry of the state, the Peo-
pies State bank and the Ostrom
Realty and Construction Company.
discharged In a manner advanta-
geouS to the state of Indiana its
housing responsibilities for the ma
tional guard"
Kershner Is Mum
Under the holding corporation
plan, citizens put up the money to
building armoireS and the state
leases them, buying them from the
holding corporations on the install
ment plan.
Adjutant- General William II.
Kershner refused to comment on the
resolution. Senator Robert Moor
head of Indianapolis, an armory
board member, was one of those who
seconded the motion for the in
vestigation.
The Ostronl company constructed
the country home of Kershner.
northeast Of the city, on Allison
vile road.