Globe-Gazette from Mason City, Iowa on December 19, 1936 · Page 33
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Globe-Gazette from Mason City, Iowa · Page 33

Mason City, Iowa
Issue Date:
Saturday, December 19, 1936
Page 33
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NORTH IOWA'S DAILY PAPER EDITED FOR THE HOME "THE NEWSPAPER THAT MAKES ALL NORTH IOWANS NEIGHBORS" HOME EDITION VOL. XLUI FIVE CEN'i'E A COPY ASSOCIATED WtESS LEASED WlKE &EKV1CJC MASON CITY, IOWA, SATURDAY, DECEMBER 19, 1936 THIS PAPER CONSISTS OF TWO SECTIONS SECTION ONE NO. 64 PROBING RAILS Lowenthal Is Responsible for Inquiry's Depth. By CHARLES P. STEWART A S H I N GTON, • (CPA) — Senator Burton K. Wheeler's investigation of A m e r i c a's t r a importation systems apparently is d e s- tined to be the biggest c o n- gressional inquiry in t h e country's h i story. It ;s the Montana senator's quiz in the sense that he initiated it, as , . c h a i rman of the upper congressional chamber's interstate commerce committee, though a subcommittee, of which "Wheeler also is chairman, is doing the actual probing. The inquisition undoubtedly originally was suggested, however, by Max Lowenthal, Ferdinand Pecora's assistant investigator in connection with the inquiry which the senate's banking and currency committee conducted two years ago into American high financier- ing. That was the nation's most J'ormidable probe up to the time that congress launched it: it seems likely to look like small potatoes in retrospect, in comparison with the present one. It already has unearthed startling means of law evasion by manipulators of the Van Swcnngen rail properties. Lowenthal's Case. Lowenthal thus far has not bulked as large in the transportation investigation as Pecora did during the banking qui/.. The late Sherman Duncan U. Fletcher was chairman of the latter. He gave a free hand to Pecora and supported him loyally, but had not much, to say on his own account. Senator Wheeler, a more aggressive personality, likes to do his own questioning, which overshadows Lowenthal somewhat. Nevertheless, Lowenthal dug up the case. While haloing Pecora he saw a relationship between finan- ciering and transportation, and '-S the inspiration of the* inquiry. Wheeler a Draroatizer. This is not a reflection on Wheeler. The Montanan has a sense of publicity—far better than the late Senator Fletcher's, perhaps better than Pecora's and possibly better than that of Lowenthal. who. to be sure, hasn't had much opportunity to prove himself except ?; an adviser. Anyway, it was Wheeler whf, chose tn make a start with an inquisition into the fashion in which George A. "Ball. Muncie. Ind.. multi-millionaire manufacturer of fruit jars, managed to gain control for a measly 53.000,000 or so, (of which merely 5262,000 was in cash), of the Van Swcringens 53.000,000,000 railroad (and miscellaneous) empire. An Unpaid Debt. This was spectacular enough to attract the public's attention. The transportation history into which the investigating committee must delve runs into the past for about a century. For example, Charley Kelly of the staff of the railroad brotherhoods' weekly organ, "Labor." an expert of the first magnitude, mentions rollins stock, used at the time of the Mexican war. which j never yet has been paid tor. There j have been fundings of indebted- | ness and refundings and re-fund- ' ings, but no final payment. In the meantime, presumably, the traveling public has been required to pay fares to meet this load of mounting obligations. A Timely Deal. But retrogressing so far is infinitely tiresome and complicated. The dickering of the recently deceased Van Sweringens with George A. Ball, George A. Tomlinson and the Morgans is up to date and snappy. One wonders how the Morgans, with a stranglehold on 53,000,000,000 worth of properties, allowed BaU and Tomlinson, as the Mid- america corporation, to scoop in the whole pot for S3,000,000 or so. It would have been a mistake to start with the Mexican war: the Van Sweringens are so much | more timely. ] A Lively Start. ' George A. Ball, the heir to the Van Sweringer. three billions for an actual cash outlay, as Senator Wheeler, expressed it, of "two first class locomotives," is referred to in Washington as having bought a pig in a poke and found himself in possession of a huge herd of swine and an infinity of young piglets. The 74 year old multi-millionaire, who has remained obscure up to the present time, admits that he had no notion what he was buying. It's a lively start on Senator "Wheeler's investigation. Max Lowenthal instigated it. Admits Minnesota Thefts. LE MARS, (JP)— Delbert Thomas, 38, arrested here, has admitted thefts near Aitken, Minn., and will be returned to Minnesota to lace charges, Plymouth county officers said. NANKING THREATENS C Wheeler Says Rail Probe to Last for Months COMMITTEE TO RESUME STUDY ON JANUARY 6 I See Request for New Laws ! Wiping Out Holding j Companies. ! WASHINGTON, (.^—Adjourning public hearings for the holidays, senate investigators began i Saturday to sift through what j they termed "a bewilderingly ' complex mass" of evidence harvested during their two week inquiry into railway financing. Chairman Wheeler (D., Mont.) iof the investigating committee ! said many months 'of hearings might be necessary before he can make a full report—coupled, perhaps, with a request for new laws abolishing railroad holding companies. On Jan. 6 the committee will turn again, he said, to its study of America's largest transportation system, the sprawling web of railways, bus lines, coal pits and industries woven by the late Van Sweringen brothers of Cleveland. A Closing Session. Testimony from two partners of J. P. Morgan and company—Arthur M. Anderson and George Whitney—that the famous banking house would have lit a Van Sweringen railroad "go bust" during the depths of the depression if it had not received government loans, marked the committee's closing session Friday. The road in question was the Missouri Pacific, which borrowed more than 823,000,000 from the Reconstruction Finance corporation before it finally went into bankruptcy in 1933. Of this sum. the partners testified, $7,350,000 was used to pay off earlier loans to the Missouri Pacific from a Morgan banking syndicate. Obligations "Concealed." Anderson said his firm had known of certain obligations of the Missouri Pacific which investigators contended were "concealed" from the RFC. Wheeler put in evidence records from the interstate commerce commission, indicating that it had been "reluctant" to approve the RFC loans because it felt there was no need to "bail out" the private banks. Testimony of the Morgan partners, investigators said, completed the first chapter in their study of the Van Sweringen system. Salient facts thus far disclosed by the inquiry include: Control Once Concentrated. 1. Control of the $3,000,000,000 empire once was concentrated- through an intricate system of holding companies—in $8,250 worth of stock. 2. .\'e\v York bankers "got sick j of putting up money" to carry the system through the depression and finally sold the controlling securities at auction for "about the price of two good locomotives." 3. These stocks and bonds were bought by George A. Ball, gray-mustached Indiana fruit- jar maker, who said he put up the money because he wanted to' help O. P. Van Sweringen. Charge Books Falsified. 4. Through an option agreement, Ball permitted Van Sweringen to vote the holding company securities and maintain command of his 249 separate corporations, "without putting up a nickel of his own money." 5. Since Van Sweringen's death, active control of these enterprises has rested in Ball's hands. 6. Charges that the Missouri- Pacific books had been "falsified" were made by Interstate Commerce Commissioner Joseph Easl- man but denied by Missouri Pacific officials. Cheer Fund Money Goes to Neediest Previously Reported ............. 5308.75 Globe-G»icHe Composing- Room Employes .............. Iti.". 1 ) A Friend (II. F.I .............. -'.00 D.Z, Chapter, P.E.O. Sisterhood .'•.«*) BT. Kensington Club ........... 2.IIO Crescent Club. Y.W.C.A ......... -.50 Jctferjon P.T.A .................. S.OU A Friend ......................... "."I 1 U.G.L. Club ...................... Will ,luM Kite Club ..... * ............. 1.00 L. J. G ................. .••'« International Association of Ma ehinisls. Lodtc No. V.MC Monroe-Washinfton P.T.A History Club ..... MI.WI ~i.»0 5.0(1 New Total Receipts Needed to Reach Goal .. Sr.72.5ll . S427.5U 1FFERENT from Scrooge, Mason Cityans do not need to be taken on a tour of sadness to make them open their hearts at Christmas time. Contributions to the Christmas Cheer fund are ample evidence of that and many less fortunate than the givers will have a really merry Christmas because of their generosity. Who does the Christmas cheer fund help? Administered by Mrs. Mabel Blaise of the Social. Welfare League, its funds are for the neediest. In one Mason City family there are 9 children, the oldest 12 years and the 'youngest a 6 months old baby. The father has had PWA employment but has it no longer CAN IT BE DONE? The final sprint is on. Six hundred dollars was the goal set for this stage in the campaign. It wasn't quite reached. Can the $1,000 objective be reached in a Jinal four-day spurt? That's up to YOU! Send your contribution to the Christinas Cheer Fund, Globe-Gazette, Mason City, Iowa. LOOK INSIDE FOR- . WAIXY GADDIS Team Travels, Proud Father to Join Later ON SPORTS PAGE Driver Is Held After ' Leiand:Car Accident ' ON'STATE TAGE Legion's Fight Not Over, Miles States ON PAGE 12 Landon Will Call on President Roosevelt WASHINGTON, (ff)— Gov. All M. Landon of Kansas, republican presidential candidate in the recent election, has been invited to visit the white house Monday morning. Landon will make a brief call on President Roosevelt while in Washington to attend the Gridiron club dinner that night Physician Is Appointed. HAHTFOKD, Conn., (f?) — Dr. Martha O'Malley of Dubuque, Iowa, has been appointed public health physician; bureau of child hygiene, here, effective Jan. 15. and the very slim income afforded by it hardly provided for his family while it was being earned. Now there is nothing. How would you like to be, say, the middle child in that family, if there were no cheer fund? Christmas is for everyone, not just for the children. One elderly couple lining on a pitifully small allowance is going to be gladdened to Veceive a quilt and a new broom from the Cheer fund Santa Claus. There are three children in Mason City who have decided that they would just as soon have overalls to wear to school as a sled. A sled would be fun, wouldn't it? But when you need clothing, you're glad to get that, too. In one family of 10 children, Santa Claus lias arrived already. He came to bring shoes, so the children could finish out this week of school. Shoes were the need of another boy and he found himself a little job to earn the money for them. His mother recently married a man with a large family and, somehow, no one has cared very much about him lately. He saved his earnings, but before he had enough, the money had to go for some other need in the fam- i 1 y. However, through the Christmas cheer fund, he'll have the shoes he earned. There are many other cases like this and a little Christmas helps a lot. You don't have to put on a red suit and a white beard to play Santa Claus. Join the goodfellows of the Christmas cheer fund and bring happiness to your neighbors, A contribution especially pleasing to the director of this solicitation was received Saturday from the Globe-Gazette's own composing room and proof desk workers— 29 of them giving a total of S16.75. A gift similarly welcome was received from the local unit of the ma"chinists' union. Again the way is shown for other groups. A first requirement is leadership by some individual in "passing the hat." Rcmsen Pastor Dies. SI. JOSEPH, (JP) — The Rev. Herman S. Schleier, 62, pastor of the Sacred Heart Catholic church at Rcmsen, Iowa, died here. I GENERALLY FAIR WEEK-END SEEN Colder Weather Predicted Sunday for West and North Iowa. DES MOINES, (JP)— A generally fair week-end the weatherman said Friday, is in prospect for Iowa, although colder weather is due Sunday in west and North Iowa after a sharp rise in temperatures Saturday. The week-end started off fair over most of the state, with temperatures about normal. The low reported early Saturday 'was 14 at Charles City, the high Friday, 34 at Keokak. , Minimum temperatures forecast for Saturday night were 20 in the northwest section, 25 in the north- cast, 30 in the southwest and 33 in the southeast. Bettendorf Woman Dies After Running Into Side of Truck BETTENDORF, (JP)— Mrs. Oscar Swanson, 65, of Bettendorf died in a Davenport hospital of injuries inflicted when she ran into the side of an oil truck Friday afternoon. George Lund, driver - of the truck told authorities that the woman ran into the side of his machine at a street intersection, apparently mistaking it for a bus. An inquest will be held tonight. SHOPP/NG DAYS LEFT BUY CHRISTMAS SEALS POPE CALLS OFF HIS CHRISTMAS EVE AUDIENCES Speculate on Successor as Pius XI Continues to Gain Slowly. VATICAN CITY, (JP) — Pope Pius, reported recovering from partial paralysis of his lower legs, Saturday canceled his usual Christmas eve audience with the college of cardinals and the papal court. The 79 year old holy father reluctantly ordered invitations, issued Friday, recalled upon the Advice of his physicians, prelates said. Informed sources said the pontiff was impressed by the fact that every unusual exertion during the last few days had been followed by a period of weakness. To Call Individually. Instead of receiving the cardi- dals, the pope will see them individually during the next few days in his sickroom. Again Friday night, doctors kept a constant vigil over the pope, nearing the close of his eightieth year, to quiet his sleep when shortness of breath caused him to gasp and stir in his bed. Within and outside the Vatican, Catholics speculated over the pontiff's successor \yhen prelates in the holy see disclosed that Cardinal Pacelli, papal secretary of state., had- taken over temporary direction of ecclesiastical af- Gains More Rest. The realization grew that Pope Pius might never recover completely. He passed a reasonably calm night, gaining much more rest than the night before, but reliable reports said he had not slept soundly for several nights. His physicians were anxious that he be kept from aggravating the- congested blood condition which forced him to bed two weeks ago in great pain from legs so swollen they were partly paralyzed. Diminishes With Effort. His condition, it was reported authoritatively, had become "oscillating"—his resistance continuing to increase when he is reposeful but diminishing with effort and activity. It was disclosed the holy father had been given food in small quantities at two hour intervals for the past two days because high blood pressure hampered his breathing and made it inadvisable for him to eat more heartily. Since modern custom dictates that a new pope be chosen from among the cardinals, theoretically there are 66 possible heirs to the papacy. Actually, however, there are few from whom the selection would be made. Three Most Likely. Advanced age, birth outside Italy and diverse other barriers to the highest office in Roman Catholicism dim whatever hopes most may have. Three princes of the church are regarded now by informed Vatican sources as most likely successors: Eugenio Pacelli, secretary of state. Elia Dalla Costa, archbishop of Florence. Luigi Lavitrano, archbishop of Palermo. Although Pacelli is the most prominent of the cardinals by virtue of his office, Vatican prelates said his name might be overlooked when a new pope is chosen. Fear German Leanings. His tenure as nunzio in Germany and his negotiation of concordats with Prussia, Bavaria and Germany, it was said, might create opposition among the seven French cardinals who might fear he had German leanings. It was pointed out, moreover, that a papal secretary of state seldom is chosen pope. •The famous prophecies of St Malachy on the selection of the popes would x indicate a successor to Pius XI.should be "Pastor An- gelicus"—saintly pastor or bishop. Both Dalla Costa and Lavitrano are bishops administering their dioceses and, informed church sources noted, Pius XI of Imola was the fifth successive _pope chosen from among such cardinals. The roster of prospective popes is cut almost in half at the start because of the remote chance any of 29 foreignersjnight have to be chosen, Requirements Are Severe. Of the 37 Italians who remain, a prelate well informed pn the Herring, House Members Confer on Proposed Bill Kraschel Is Scheduled to* Meet With Senators on Sunday. STORY ON PAGE 2 DES MOINES, OT—Gov. Clyde L. Herring conferred Saturday with a group of house members on the proposed state unemployment insurance act and Lieut Gov. Neis G. Kraschel was scheduled to meet with a group of senators Sunday. These conferences were to lay the groundwork for the special session of the legislature which will be opened at 10 a. m., Monday. Governor Herring said he expected to complete his message to the assembly late Saturday and that the subcommittee drafting the unemployment insurance bill probably would clean up the odds and ends left in time so that a complete bill can be printed by Sunday morning. Invited to Conference. Invited to the governor's conference Saturday were B. B. Hickenlooper (R), Cedar Rapids; C. L. Rice (D) Delta; A. H. Bonnstetter (D), West Bend; Don W. Burington (D), Sioux City; LeRoy S. Mercer (D), Iowa City; Harry F. Copeland (D), Waukee; Paul A. Cunningham (R), Des Moines; Le Mar Foster (D), West Branch; Milton Peaco (D), Clinton; J. P. Gallagher (D), Williamsburg, and Roy J. Sours (R), Charles City. These representatives were selected as a nucleus to start studying provisions, of the bill, the gov- age-assistance board reported they had been active in social security legislation in past assembly sessions. Meeting with the governor and the legislators was H. L. McCarthy, representative of the Federal Social Security board, who explained what the Iowa legislature must do to conform with the federal requirements and save foj' the state $3,000,000 Iowa employers have paid in unemployment insurance taxes. Have You Read Your Newspaper 1. What -Church . of England dignitary assailed former King Edward as a man "who disappointed hopes so high and abandoned a trust so great?" 2. Who is Miguel Mariano Gomez? 3. What sentence was received by Harry Brunette, gunman captured in New York the past week by G-Men, who pleaded guilty to kidnaping a New Jersey state trooper? 4. Carle E. Jackson, son of Baltimore's mayor, married what noted opera star? 5. What is the name of the Chinese warlord kidnaped by rebellious soldiers? ' 6. What two South American nations opposed a movement at Buenos Aires to create an American league of nations? 7. A move was started to oust Dr. Gl enn Frank as president of what midwestern. state university? 8. What is original name of Pope Pius XI? 9. What nation was the only one to pay its semi-annual war debt installment to the U. S. the past week"? 10. What happened to Hope Morgan, 25 year 'old Lansing, Mich., girl who killed her best friend? ; , ,4AJSSWERS.,O.N.P. AGE 2) Plan Board of Five. The sub-committee drafting the bill completely revised the bill as to the system of state administration. Instead of a state board of three members to be paid $5,000 anually, the committee decided upon a board of five to be paid S10 a day of actual service, with a yearly limit of $1,200. The group also wrote into the bill a clause providing that should the federal system become inoperative for any reason, the state plan would end automatically. The drafting committee had not yet decided whether the unemployment commission should take over the work of the state bureau of labor. Since the federal law provides that unemployment benefits must be paid through employment offices or an approved agency, several states have integrated their unemployment and labor commissions. Set Up Appeal Board. It had also to decide on the setting up of an appeal board to settle disputed claims on the compensation fund. One suggestion under consideration was the establishment of an appeal board to arbitrate such disputes. In other states provision has been made for appeal boards to meet only on arbitration cases, and receive pay during the time it is in session. In cases where the claims cannot be adjusted by the appeal board the claimant could appeal to the courts. Says Husband Lost Wages in Machine SHENANDOAH, (£>)—After receiving a complaint from a woman whose husband had lost his wages in a pinball machine, Mayor Paul Ambler gave machine operators "just 24 hours" to dispose of "all slot, race horse and pinball outfits." precedents said, 16 probably would be eliminated because they are close 'to or have passed their seventieth birthdays. The severe requirements for the papacy, this .informant said, militated against most of the others because they had worn the purple too long, had risen through administrative bodies without service abroad or practical experience in a diocese, were "troppo dolce" —too sweet or gentle—or, even, were too religious, having become cardinals from a monastic order. FAINT CALLS ON RADIO REPORTED Search Continues for Two Airliners Missing in Utah, Idaho. SALT 'LAKE CITY, (JP}— Faint radio messages—the indistinct sound of a man's weak voice— were picked up time and time again Saturday by searchers for a Western Aid Express plane lost since Tuesday with seven persons. The recurring calls, apparently directed at both St, George, Utah, and Salt Lake City, were describee! as "between the frequencies of both United Airlines and Western Air Express equipment." They were picked up most plafntly, said A. E. Cahlan of Western Air, by a transcontinental and western air station at Kingman, Ariz. This, Cahlan said, was the only station able to make out where the unknown caller was trying to make contact. Meanwhile 500 miles north in Washington-I d a h o timberlands two northwest airlines fliers who vanished Friday were sought in the nation's second plane mystery in a week. 3 DAYS EARLIER GIVEN TO HALT REVOLT DENIED Operations Against Sianfu to Be Renewed Unless Chiang Is Freed. NANKING, China. OF) — The Nanking government, suddenly switching its tactics against rebellious Marshal Chang Hsueh- Liang, ordered Saturday night that punitive military operations against Sianfu rebel headquarters be reopened Sunday unless Generalissimo Chiang Kai-Shek is released. "The government's punitive expedition, bombing operations and any other form of attack is deemed necessary, recommencing Sunday morning, if the generalissimo is not released before then, ' a spokesman announced. Shortly after midnight, howev^ er. military authorities tempered this announcement somewhat, saying "Sianfu won't be bombed." Three more days of grace in which to end the rebellion and release general Chiang had earlier been awarded by officials to the mutinous young marshal. Quick End, to War. The spokesman refused to confirm a breakdown in the negotiations to bring a quick end to China's civil war. "With profound regret, we must disclose that our hopes for General Chiang have not materialized," he did say, however. "Throughout the day various ill founded rumors have circulated saying the generalissimo had been released and reached Loyang (capital 'of Shansi province east of • Farmer Struck by Automobile Dies SIOUX CITY, (JP)— Harry Slutz, 61 year old farmer of near Kingsley, died in a hospital here of injuries suffered when he was struck by an automobile in the downtown business section. The Weather FORECAST IOWA: Generally fair Saturday nifrht and Sunday, except unsettled in east portion Saturday night, colder Sunday in west and north portions -anti Sunday night in southeast portion. MINNESOTA/ Generally fair Saturday nifht and Sunday; colder in northwest Saturday night: much colder Sunday. IN MASON CITY Globe-Gazette wsather figures for 24 hour period ending at 8 o'clock Saturday -morning: Maximum Friday 27 J\Tiniirouiti in Night 16 At 8 A. M. Saturday 20 WEEKLY FORECAST CHICAGO, CP)—The weather outlook for the period from Dec. 21 to 26. For the upper Mississippi and lower Missouri valleys and the northern • and central great plains: Not much precipitation likely, especially in south portions; temperatures near or above J normal for the most part. "These rumors caused false hopes in the nation. But authorities who are most anxious to broadcast such information are unable to believe or confirm them." He declared the situation was growing more confusing every hour. Soony Leaves Nanking. The spokesman also disclosed that Dr. T. V. Soong, brother-in- law of General Chiang, had left Nanking suddenly by plane for Loyang, setting his trip ahead o£ original plans to go to the interior Sunday. "Dr. Soong has gone on his personal initiative," the spokesman said. "He' will act as a family representative. The government will not participate in such degrading negotiations." The first time extension came just as the previous "final ultimatum" to Marshal Chang demanding the generalissimo's immediate return expired. Although the national government had set a deadline of 6 p. m. (•I a. m., CST.) for the release of their chieftain, an authoritative spokesman had expressed open skepticism that Chiang v.-ould be released at that time. To Allow Compromise. The additional days of grace, il was believed, were given Chang ;,o allow completion of a compromise which was understood already to have been tentatively agreed on. One notable victim of the mutiny, in which it was first reported the generalissimo himself had been slain, was officially announced to be Shao Yuan-Shung, political historian and member of Chiang's staff. Shao died Dec. 13 as a result of wounds received during the coup d'etat. Graduate of Wisconsin. Shao was a graduate of the University of Wisconsin and Columbia university and had edited Chinese newspapers in San Francisco. St Louis, Toronto and Victoria, Canada. The belief increased that Marshal Chang was in complete control of the elements opposing the Nanking government but some quarters persisted in contending he would be influenced by the desires and demands of his associates. All Want Safety. One of the few doubts of a. quick and peaceful end to the civil was was . expressed in these circles where it was pointed out the marchal's subordinates were unlikely to permit him to make a settlement that did .not guarantee their; safety .as -well as his own. -.Marshal Chang, substantial reports indicated, was acting now only for self preservation and would release his prisoneirs once his own life was assured. The Nanking government, on the other hand, was represented as earnestly desiring to negotiate for Chiang's safety and only seeking a solution that would preserve

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