The Mason City Globe-Gazette from Mason City, Iowa on July 18, 1935 · Page 1
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July 18, 1935

The Mason City Globe-Gazette from Mason City, Iowa · Page 1

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Thursday, July 18, 1935
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NORTH IOWA'S DAILY PAPER EDITED FOR THE HOME "THE NEWSPAPER THAT MAKES ALL NORTH IOWANS NEIGHBORS" HOME E D I T I O N VOL. XLI KlVE CENTS A COPY ASSOCIATED PKESS LEASED WIRE SERVICE MASON CITY, IOWA., THURSDAY, JULY 18, 1935 THIS PAPEK CONSISTS OK TWO SECTIONS SECTION ONE NO. 238 Australia's Slump Over Visitor Tells How Depression Was 'Licked.' By CHARLES P. STEWART , A S H I N G T O N , July 18. (CFA)-- "Australia is out of its depression (it was a far worse depression than afflicts this country) a n d now is fairly and increasingly prosperous again." T h e speaker was Arthur H. O'Connor, the is- 1 a n d-continent's chief travel agent in America, recently a Washington visitor in connection with Australian Pr- mier Joseph A. Lyons' trip across the United States. Well, for heavens' sake, how did the antipodeans succeed in breaking the back of their hard times? Is it a trick that can be imitated? "We did it," answered Uncle Sam's Australian guest, "by recognizing and accepting our inevitable losses, by discontinuing a hopeless attempt to bolster our economics up ·we admitted the impossibility of creating an artificial, as against a real prosperity. "Our collapse somewhat preceded yours Indeed, many authorities blamed Australia for the world slump. The truth is, we simply felt it early, because ours is a country of primary production. Just as American agriculture felt it sooner than American industry, we, as more essentially an agricultural and mining commonwealth, felt it sooner and more generally than the rest of the world. We were geared to wartime prices, and peacetime prices, coming so suddenly, jerked the bottom from under our system. Program of Spending. "Federal and state governments' tried to help, by a program of enormous spending. Where they had been spending hundreds, perhaps they should have adopted a policy of spending- thousands; they did adopt- a policy of spending millions." · · ..: "Feechral ..and state governments ' " ' l a c l . " . The United States of late- has been spending approximately $2 for every $1 of its income. "We never were quite as bad as that," said the Australian spokesman, "but we did get to spending from one-eighth to one-fourth in excess of our taxation collections. One Australian state became so desperate that it talked of repudiating its foreign indebtedness. This so alarmed foreign investors that our bonds fell 60 per cent below par. "Today, under the Lyons government, our bonds rate at 102 on foreign exchanges." * * * Flexible Constitution. "How did we do it? "Well, for one item, the government appealed to domestic holders of government securities to agree to a cut in interest rates, and 97 per (Turn to Page 3, column 1) ENGINEER KILLED WALLA WALLA, Wash., July 18^ (jp)--An engineer and two transients were killed ast night in the headon collision of a local passenger train with a 20 car freight. Twelve passengers were injured, none of them believed to be severely hurt. Stanley Cowan. Pasco. Wash., engineer of the passenger train, was killed when trapped in his cab. Fred Madsen, Pdrtand, Ore., was the only identified transient victim. The accident occurred in a.n iso- latrfl sage brush area 27 miles east lii Pasco. TT^Weather 'BIG TIME' GANGSTER SHOT DOWN Tell Lobby Probers Records Were Destroyed FORECAST IOWA: Partly cloudy to cloudy Thursday night and Friday, possibly local thundershowers in north portion Thrusday afternoon or nijrhr. Not so warm Friday in central and north portions, and north central portions Thrusday night. MINNESOTA: Generally fair in north, partly cloudy to cloudy in south Thursday night and Friday; cooler in south and east central portions Thursday night. IN MASON CITY Globe-Gazette weather figures for 24 hour period ending Thursday morning: Maximum Wednesday 87 Minimum in Night 70 At 8 A. M. Thursday 7-3 Thursday brought North Iowa its hottest weather of 1935. At 2:30 o'clock the mercury had touched the P6 mark, which is 2 degrees higher than the previous maximum of the summer. UTILITIES FIRM EMPLOYES TOLD WORK WAS DONE Senate Continues AAA Debate; Processing Taxes Argued. WASHINGTON, July 18. -T--· Employes of the Associated Gas and Electric company, which has acknowledged that it spent ?700,000 in a campaign against the administration's utility holding company bill, told senate investigators today that some records of this activity had been destroyed. One of them, E. W. O'Brien, of Erie, Pa., testified a superior had advised him "we had no longer use for our legislative records--that we ere through with utility legislation work." O'Brien said also he had advised R. P. Herron, bond salesman of Warren, Pa., who sent several hundred telegrams to members of congress against the legislation, that there was to be an investigation and he should clear out his files. Debate Amendments. While its lobby committee pressed the investigation into activities for and against the holding company bill, the senate was embroiled once more in debate over administration amendments designed to broaden the powers of the AAA and protect it against court attacks. " The administration's proposal to close the courts to processing tax recovery suits was . denounced by Senator Borah (P-./tda.) as a step benefiting big companies which have passed the tax on to consumers but injuring small companies which have been unable to do so. Debate on this controversial provision of the pending AAA amendments began after the senate had voted against imposing a processing tax on rayon. Cannot Deny Right. "Where there has been a wrong perpetrated, and property taken." Borah asserted, "I do not believe you can deny a man the right to go into court. "It is true that some of the taxes have been passed on to the consumer by the large processing companies, but the small companies have been unable in many instances to do so and by reason ot that have suffered. The senate yesterday reversed its action of Tuesday and voted 44 to 41 against price fixing provisions. Collections to Continue. Attorney General Cummins said at a press conference a decision of the circuit court of appeals at Boston, holding the processing taxes unconstitutional, would not prevent further tax collections except in that particular case. Legislation to prevent the filing of damage suits growing out of another new deal policy--dollar devaluation--was up for consideration in the house. Before plunging into debate on this issue, however, that chamber agreed to a further conference with the senate on the administration's social 'security bill. Other developments: Peace Desire Expressed. Emphasizing the American government's desire for a peaceful settlement of the Italo-Ethiopian crisis, William Phillips, acting secretary of state, revealed that all American envoys abroad have been authorized to inform other powers of the United States' attitude. Postmaster General Farley, the democratic national chairman, left on a vacation trip to Hawaii after talk with President 12 firms were suspended by the agriculture department, under the perishable agricultural commodities, for failure to pay reparation awards. Preliminary Hearing on Chain Letter Plan Opens Witnesses Tell How* Scheme Started Here. Many witnesses were called Thursday afternoon as the preliminary hearing was held on the chain letter scheme sponsored by the 40 and 8 for the milk fund. The hearing, held before United States Commissioner Charles W. Barlow in the federal building, was on charges of using the mails to defraud, filed against M. 11. Pricbe of Keosauqua and Johnnie and Herman Hermanson. Witnesses were questioned by E. G. Dunn, United States district attorney, and W. D. Danfortli, his assistant. W. L. Bliss represents the defendants. Methods Are Described. The first witnesses calle:i. those who worked in the system, described the methods of handling. The letter scheme was at 10 Fourth street northeast. For everv dollar put in an additional 25 cents was put in for the 40 and S milk fund. Officers closed the place the afternoon of May 18 after a spirited business was conducted. Martin Mulligan, who is in the tire business, testified that he had known Priebc for some time, and had sold tires to him. He said he had heard the clerk at the Cerro Gprdo hotel, where Pricbe ,-toppcd when in town, tell how Priebe received some chain letters and had participated ' in a chain letter scheme for an Elks lodge in some other town. Introduced Triebe. Knowing that the 40 and 8 desired some plan for making money. Mrl Mulligan had -introduced . Mr. Priebe to R. C. Patrick, former chef de gare of the 40 and 8, he said. He knew that Priebe, Patrick and the Hermanson brothers discussed the proposition in i car. Dewey Patton, postal inspector who was one of the officers making the arrest at the time the place was closed, returned for the hear- j 'Outrages Morals" PARIS, July 18. /P)--Joan Warner, above, blond Ainrriciin dancer, was found guilty of "out- raprin* the morals" of Paris and was fined 50 francs--$3.30. Miss Warner did her "outraging;" 1 by dancing in the nude.. The decision against the American made a basis of a widespread prosecution ol all nude do ru'?TS in theaters and 'night clubs here. had since bee Scheme Was Explained. Mr. Patrick described, how the scheme was outlined to him at a discussion with the Hermanson brothers and Priebe in a car. Dr. T. A. Nettleton. one of the leaders of the 40 and 8. testified saying that one of the reasons for the organization entering the chain letter scheme was because the milk fund was lacking in funds. a last minute Roosevelt. Licenses of SUCCESSOR TO Union of Political Factions on Possible Candidate for Mayor Goal. SIOUX CITY, July 18. (.TV-Plans were underway here today to unite political factions on a candidate for possible successor to Mayor W. D. Hayes, for whose removal trial a special judge was appointed by Chief Justice James Kintzinger of the Iowa supreme court. A meeting to discuss possible candidates was held yesterday by E. M. Badgerow, real estate operator, and attended by Keyes Gaynor, unsuccessful candid_ate against Hayes at the last election. Hayes, now under suspension, faces charges of failure to act against protected vice conditions as- sertedly uncovered by the Woodbury county graft grand jury. The chief justice named Judge W. W. Scott of Davenport to hear removal proceedings, now tentatively set for Aug. 1. Request for a special judge was made by H. M. Havncr. special prosecutor who will aid in presenting evidence against Hayes. CHARGES MADE OF ATROCITIES Widespread Indignation in Italy Follows Stories of Alleged Raid. ROME, July 18. (.W--Italy charged Ethiopian tribesmen today with "mutilating numerous children" in a mass attack of defenseless natives of Eritrean Dancali. Widespread indignation was aroused as the full details of the alleged raid on the Italian colony May 31, charged in a propaganda ministry communique, were published for the first time in this morning's Italian press. Premier Benito Mussolini's own newspaper, Popolo D'ltalia, reviewing the Italo-Ethiopian crisis in an article believed to have been written or at least inspired by II Duce himself, asserted: Are Watching Developments. "A duel .opened with arms cannot be resolved except by arms." A government spokesman gave assurance that Italy watched developments toward Ethiopian mobilization and a special session of the league, of nations council, confident of its own preparedness and the justification of its cause. The British cabinet considered, but was understood to have made no decision on what steps it should take, especially at Geneva, to preserve the peace. League to Meet. At Geneva, league of nations authorities said smaller nations demand that the council, which is expected to meet shortly, protect the integrity of Ethiopia. The Italian spokesman said that Italy was keenly aware of Ethiopian military preparations, indicating it would not be caught napping by an imminent Ethiopian declaration of general mobilization. He insisted that Italy was sure Ethiopia did not want peace. DISTRICT JUDGE DEFERS HEARING ON OUSTER CASE Told Council Expected to Consider Manager Situation. Informed the city council was expected to meet between now and Monday to consider the city manager situation. Judge T. A. Beardmore Thursday afternoon deferred hearing of the ouster proceedings against City Manager E. H. Crofoot. 'In view of the fact that the city council is considering taking the matter up there is no need of proceeding until after we know what that body will do," said the judge. The judge arrived from Charles City to act on the request of the prosecution for immediate temporary suspension of Mr. Crofoot and to set a date for the hearing on the ouster petition, which was filed by Morgan J. McEnaney in behalf of five local residents. County Attorney Frederick B. Shaffer and Mines Mount, assistant county attorney, were in the court- oom with Che expectation the matter would be taken up. The attorneys in the case were informed by Judge Beardmore that a $1.500 bond would be required of the plaintiffs in event a hearing is held. $200 Grant for Scout Cabin Made at Nashua NASHUA. July 18.--A $200 material grant for the Boy Scout cabin has been approved by E. H. Mullock, state relief administrator, through the efforts of William Smith, Chickasaw county relief engineer, and W. M. Prudhon. The cabin will be built of old telephone poles donated by the Northwestern Bell Telephone company. The federal grant will be supplemented by donations of public local citizens in providing funds for the foundation roof and other material to be used. E BODIES ARE FOUND IN MINE Workers Locate Victims of Coal Shaft Explosion in Kentucky. VAN LEAR, Ky., July 18. (.T)-Bodies of the nine men entombed by a coal mine explosion here yesterday were found by rescue workers today. Seven of the bodies were brought to the surface, one by one, in mine railway cars as police and mine officials held back an assembled crowd. John F. Daniel, Lexington, chief of the state department of mines and minerals, expressed belief that all nine had been killed instantly by gas. Some of the bodies had been crushed by falling slate and coal. All were brought to undertaking establishments in Van Lear. Frank Price, chief clerk of the Consolidating Coal company, whose Mine, No. 5, was the scene of the disaster, said the bodies recovered were those of William Kretzler, 31, assistant foreman; Charles Kretzler, 46; Virgil Clay, 21; James K. · Vaughan, 52; Derwood Litz, 34; Sherley Hereford, 38, and Roy Murray, 38. The bodies of John Gool, 56, and Frank Tuzy, 45, were located last and brought out this afternoon. Temporary Writ Issued on Chain Tax State Not to Collect From 20 Companies Until Hearing. DES MOINES, July 38. (.Ti--Federal Judge Charles A. Dewey today issued an order temporarily restraining the state from enforcing Iowa's chain store tax law against the 20 firms which attacked constitutionality of the measure. The temporary restraining law will remain in effect until a three judge federal court rules on the constitutionality of the measure. Date for the hearing before the federal court was set for Sept. 10. The office of the state board of assessment and review said the temporary restraining order would have no effect on the board's attitude toward other chain store firms. Obliged to Pay. "Those who arc not parties to the suit still will be obliged to pay the tax. although they arc privileged to pay it under protest," an official of the board said. The first: tax payment under Iowa's new chain store tax law was due July 3. The tax is based on the number of stores a. chain has in Iowa. The tax on the gross receipts of chain stores is due Aug. 1, 3936. Judge Dewey said his order was more or less a formality, leaving the merits of the caselo be decided by the three judge federal corut. File as Jntervenors. Constitutionality ot the law was questioned in original injunction petitions filed by the Great Atlantic and'Pacific Tea company, the Wai green Drug company and the Graham Department Stores company. They are supported in their suits by 17 other companies who filed as in- tervenors. The 20 companies set forth that their total gross receipts last year, figured under the tax law, were $39,455,715 in 446 stores. The chain stores claim they are liable to pay total taxes of $1,594,5-10. State officials estimated today that the chain store tax would bring in from two and one-half to four million dollars in the next year. Denies Eqiiiii protection. In opening their case, attorneys for the chain store companies declared the tax law is discriminatory, confiscatory and violates both federal and Iowa constitutions by denying equal protection under the law to all. The intervenors were: The National Tea company, owners of Red Ball stores; Safeway stores, Inc.; Thrift-War stores, Inc.; Liggett Drug company; S. S. Kresge com- Gangster Slain pany; J. J. Newberry company; N e w m a n Mercantile company; Scars, Roebuck and company; Neisner Brothers, Inc.; J. C. Penney company; Melville Shoe corporation: G. R.Kinney company. Inc.: F. W. Woolworth company: H. L. Green company. Inc.; United Cigar Stores company; Goodyear Tire and Rubber company, Grant company. and the W. T. 100 DROP SHOWN IN RELIEF GASES Report on Mitchell County Is Made by Mrs. Elmer Lang, Director.' OSAGE, July 18.--There has been a reduction of more than 100 cases on the relief lists here since March 1, according to Mrs. Elmer Lang, director of relief for Mitchell county. There arc now 90 active cases i receiving aid. Reducing Iowa's Relief Load (Tracy Garrett in Burlington Hawkeye-Gazette) A statement given out by the state-federal relief organization shows a tremendous reduction of the "case load" in Iowa since re- registration began c few weeks ago. In this county alone the cut will amount to nearly 40 per cent. And a very large proportion of those who were dropped from the relief rolls were dropped because they did not re-register. In sending out the re-registration blanks, the clients were told not to return them if they felt they could now get along without this aid. In some cases, no doubt, failure to re-register was due to carelessness, misunderstanding or inability to complete the ques- tionaires and some of these former clients will probably put in an appearance at a later date seeking help. But, it is felt, the great majority who failed to re-register did so because they believe they can now get along without this state-federal help--or at least want to make a serious effort to do so. The improvement in rural communities is especially gratifying. It has been authoritatively stated that no able-bodied person with farm experience or a willingness to work on a farm need apply for relief in Iowa today. LOUIS ALTKRIE EMPEROR TALKS TO HIS WARRIORS Lion of Judah Calls on All Ethiopians to Fight to Remain Free. ADDIS ABABA, Ethiopia, July lg. (.T)--Emperor Haile Selassie called on all Ethiopians to follow him into battle today, declaring it was better to die tree than to live without liberty. The King of Kings and Lion of Judah, addressed both his parliament and his soldiers. In impassioned tones he said the military preparations by Italy now going forward proved the intentions of that country to conquer Ethiopia. He called on all his subjects to unite and co-operate for the defense of the country saying' he would lead the troops into war. Us appealed to all not to fear death. Follow Their Example." "Our ancestors." he shouted, 'preserved their independence by sacrificing their lives. Follow their example! "God will be our fortress and shield and the modern armament of aggressors cannot deter our duty which is sacred for Ethiopian inde- depcndence." Reviewing Ethiopia's past relations with Italy and the events from the skirmish at Ualual last December until now, the emperor described Ethiopia's efforts for a peaceful settlement of the dispute and also similar efforts by the British which, he said, Premier Mussolini of Italy had "brutally rejected." War Danger Evident. He said the fact that Italian military preparations were continuing' proved Italy's intention to conquer Ethiopia forcibly and said the danger of war was evident despite the fact that Ethiopia, was profoundly imbued with respect for promises and the sanctity of treaties. He said Ethiopia did not wish war but would defend herself to the last man if attacked. He said Ethiopia did not desire a hegemony and did not menace her neighbors but was mistress of her own country and would fight to the bitter end defending her integrity, independence and sovereignty. The emperor declared that Italian intentions to use modern scientific weapons of warfare would meet with the resistance of all his subjects. JEW BAITING IN BERLIN GOES ON Violent Methods Dropped as Nazi Campaign Is Made in Newspapers. BERLIN, July 18. (.Pi--Nazi bait- ers persisted in their anti-semitic campaign today, dropping more violent methods by government order but turning to the Written word to demand death to Jews for various associations with Aryans. The newspaper "Judcnkenncr." which rivals the "Stuermer" in anti- semitic activities, advocated the death penalty for Jews guilty of intimacy with Aryan women. The Nazi party's syndicate service, in an article in the "National Socialistische Partci Korrespon- denz, demanded that Jews be forbidden to rent apartments to Aryans, engage Aryan domestic help or accept Aryan clients, under pain of deaoth if necessary. Reports from the Schocnberg district said large crowds congregated before a Jewish-owned shop there, but that the disturbance was confined to shouts as police looked on. The controlled press protested bitterly against "atrocity" reports abroad of the anti-semitic disordcis, j The sale will give Mason City and although they did not deny that the ! North Iowa residents an opportun- outbicaks occurred. l i l y to save money on things needed. I' ALTERIE OF OLD DAYS IN CHICAGO KILLED Former Partner of Dion O'Banion Victim of Labor Trouble. CHICAGO, July 18. (.T)--Louie ("Two Gun") Alterie, "big time" gangster who survived some of the city's bloodiest bootleg- wars, was shot down as he left his hotel today and died an hour later. A blast of shotgun slugs dropped Iteric so seriously wounded that ; barely survived the ambulance ide to Lakcview hospital. But the gangster's assassins missed Alterie's voman companion, identified by po- ice as his wife, Irma, 35. Capt. Daniel Gilbert, chief of the itate's attorney's police, blamed the ilaying on "labor trouble." Once the partner of slain Dion O'Banion, pio- ieer Chicago botlcggcr, Alterie had atcly been an official of a janitor's union, Gilbert said. Hit by 9 Slugs. Alterie was unconscious when he arrived at the hospital, and died vithout making any statement. Doctors said nine slugs had struck lim. His wife was taken into custody jy the town hall police. Alterie won his nickname, "Two Sun," after O'Banion was slain. He had posed for photographs, brandishing a pair of pistols, and announced: "I'll shoot it out at State and Madison streets with O'Banion's killers." Lived in Style. Alterie lived in style. Waiting at the curb for him today, as he and his,Xaaliwnably..dressed.-brunet wife strolled from their hotel, was an expensive sedan. Other gangsters frowned on Alterie as a "wild man," noted for shooting out park lights and firing random shots in hotel rooms. First associating with a northside gang, with "Schemer" Drucci and O'Banion, he emerged unscathed from the bloody gang war they waged with Johnnie Torrio's southside gang, reputedly because Alterie was a boon companion of Capone. When Chicago became "too hot." Alterie went west to buy a ranch at Jarr Canon, Colo. Shot From Amhnsh. Alterie was ambushed in traditional gangland style. His hotel, the Eastwood Towers, was at 926 Eastwood avenue, on the city's north- side. Across the street, at 327 Eastwood, the killers rented a first floor apartment commanding a view of the door from which Alterie emerged. In the "nest," police found a repeating shotgun, an automatic rifle and three shotgun shells. The rifle had not been fired. A "dark stocky man" had rented the room eight days ago, sharing it, the manager said, with one other. Both Well Behaved. 'Both were quiet and well behaved." said neighbors. Police said Alterie's labor union job was that of president of the theater and amusement building janitors' union, local 25. He maintained downtown offices. Alterie's two executioners left s. green steamer trunk behind, and police set out to trace them through this and the guns. Alterie came back to Chicago after Colorado had banished him. DAY SATURDAY All Downtown Stores Will Take Part in Annual Sales Event. (Til i In I'nsr. 3. column 2) COOL SNACKS Tempting cool tid-bits for sweltering afternoons tax the resources of the housewife these days. Let our Washington information bureau assist you with a timely booklet of recipes for inviting salads and sandwiches. Also a section on homemade soups, including the jellied varieties favored on torrid July days. This handy household service booklet carries more than 100 tested recipes. Inclose six cents to cover cost, handling and postage. Use coupon. The annual event he summer dollar day held in Mason City Saturday, with all downtown stores participating. Summer merchandise, including wearing apparel, articles for the home and articles for the car. will be offered in this citywide event at reduced prices. There will be hundreds of items on sale at SI and other articles specially priced. The Mason City Globe-Gazette Information bureau, Frederic J. Haskin, director, Washington, D. C. I inclose six cents in coin (carefully wrapped) for the booklet "Salads and Sandwiches." Name Street City State (Mail to Washington, D. C.)

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