Brainerd Daily Dispatch, The (Newspaper) - February 1, 1939, Brainerd, Minnesota WEATHER Snow tonight and day Much tonight and Thursday THE BRAINERD DAILY DISPATCH The Complete Family Newspaper Pictures by In the Heart of the Lake Region Telephone Ho 74 or 75 United Press Ton Wire BRAINERD MINNESOTA WEDNESDAY FEBRUARY 1 1939 feature Service and Hews Pictures VOL 153 STORM IS WORST IN Stassen Asks Iron Ore Tax Increase Budget Talk Outlines New Tax Sour Recommends Diversion of Gasoline Tax from ways Administration Fee On Special Funds ST PAUL nor Harold E Stassen today asked the Minnesota legislature to piove a budget of for the biennium His request made in a message delivered before a joint session of both houses represented a cut from the budget for the present biennium but at the same time was approximately moie than be had been expected to ask Appropriations for the present biennium totaled but to this figure for purposes of com- parison must be added the pended balances at the beginning Of the biennium plus certain receipts for accounts which the governor now proposes should be financed through legislative These items add about to the total The governor's proposed tion thus is based on total tures for the present biennium of Slightly over To cover the apparent deficit of and to balance the budget the governor Raising the occupational and royalty tax rates on iron ore to the 10 per cent level where they 1 were two years in- crease state income Charging a 5 per cent general administration fee against the special funds dedicated to cial boards the conservation department and the highway increase income Re-enactment of the four cent gasoline tav with proceeds to go directly to the state ury instead of the highway de- raise the balance of the expected deficit 943 Reorganization Battle Renewed WASHINGTON UP Th house by voice vote today a resolution by Rep John Cochran D Mo up a committee to draft a new governmental The vote was taken after ed debate in which the republicans voting solidly against the crats failed by 153 to 102 to block a motion which put the resolution to final passage They assailed the section of the resolution which waived points of order against any brought in by the special committee for con- sideration Republicans contended that under his provision the democrats could m a giving the president n effecting reorganization of government bureaus and agencies the power to juggle at his pleasure This is the last crack we'll get at pleaded Rep Everett M Dirksen R 111 Let's strike out this section and still hold on to the money bags The conflict today foreshadowed renewal of the fight of ast session which was when the house by a mere handful votes killed the reorganization Stassen recommended the in creased iron ore taxes as the first necessary move with the change to charge special funds an administrative fee second Cut Out University Tax This then leaves us with the of raising additional amounts in excess of a million lars to balance the he con- This can be done by a one- mill levy upon real estate not in- homesteads The necessity of this mill however gether with the requirements of meeting the interest and principal on past bond issues issued by would raise total mill rate over ten mills and this should not be done T am therefore recommending that the special mill rate of 23 mills for the university be discontinued and the 10 for soldiers relief should be discontinued and cared for in the general appropriation And further that the one mill for load and fund be and that in place of the funds which the local governments ure ing from the one mill for road and bridge fund the one cent additional gas tax should be acted so that the gas tax will re- main at its present level for an ad- two years I the continuation if this four-cent gas tax only on the basis of its revenue taking the place of the one mill levy on real and on the basis that the department is the five per cent that I recommended as to iU dedicated funds Boost Old Age Funds In other words I feel that if aie to have the exclusive ind large from motor raxes and gas taxes then they should not also have an additional rising from the mill tax on real estate which is already too burdened Neither should he general revenue fund be ing the administrative ex- STASSEN on page 2 j Rep James W Wadsworth R N asked if the committee were ng to dispense with public ngs as it did last and that even members of con- gress didn't know what was going n then Warren N C pilot of the reorganization measure last session sought to still the con- by assuring the house that he had been working out a for the last month but did not yet have it fully drafted I believe the when finished will be a common meeting ground for members of both sides of this house to approach the problem of he said I believe that I can bring in a that will meet the approval of the majority of the members of this house The action on the Cochran lution came as house members op- posed to continuance of the Dies committee on un-American ties assailed a measure authorizing its continuance Appearing before the house rules committee which was expected to report the resolution late today or tomorrow Reps Jerry Voorhis D Calif and John D D Mich both voiced objections U S Defense Line Extends Into France Roosevelt's policy of peacefully but materially aiding democracies against aggressor states was inter- here and abroad today to have extended America's defense line to its 1917 world war position in France Secrecy shielding his discussions of foreign policy and French air mission activities here raised from Sen Hiram W Johnson R Calif Are we on the road to From senate military affairs com- who talked with the president yesterday details of the discussion gradually were ng through the capital They said Mr Roosevelt told them he would support democracies against aggressors by active means short of His remarks dently were directed primarily at Germany and Italy and probably hrough them to Japan Senators variously described his secret statement as alarming and as having indicated that the United defensive frontier lay now in France The current instances of aid to the democracies is assistance given by the administration to France m purchase of American planes It is understood that French facilities cannot produce the volume of planes needed immediately there for defensive purposes and that American factories are expected to share the burden until they are diverted to construction of our own emergency defense air fleet land also is purchasing planes here The French enthusiasm for this assistance suggested also that Europeans may consider made planes superior to any others Mr Roosevelt previously had a defensive lines around the western hemisphere and invited sister republics and Canada to help defend it He also has pledged the United States specifically to defend Canada against aggression Refugees A mass flight of Spanish Loyalist in ern pouring into France following the conquest of Barcelona by Rebels Radiophoto shows French mobile guards NBA Radiophoto escorting some of the fugitives through a snow-covered Pyrenees pass to their only concentration camps Claim New Rail Plans Not Sound WOMAN STOLE FOR HUSBAND GOES TO PRISON FOR YEAR CHICAGO Mrs Hazel Cornwall who was convicted of em- last November after she had pleaded she had stolen to hold her husband's love today was under sentence to a year term in the women's reformatory at Dwight 111 She was sentenced to a one to 10 year last November after she had been found guilty of having taken the money from the Western Springs State Bank where she was employed as a teller Chief Justice Michael L McKmley of Criminal court heard a motion to vacate the sentence late yesterday He reduced the to larceny and fixed the lesser penalty after Mrs wall had reiterated her plea that she had taken the money for husband Francis who had been un- employed at times He is now ployed by a Chickasha Okla ice cream firm Accessory charges against him were discharged last week after he had denied his wife had spent the money on him Before pronounced tence for Mrs Cornwall he called Cornwall before the bench everything McKinley said or else you were a goof Which do you prefer the court to think of I knew nothing about wall said I was a goof and IJ prefer to have you look on me as a goof j Either that was you knew going America's the boundary is the Berlin newspaper said today in a page one attack on the con- ference with military affairs com- Johnson's question whether the nation was indicated the may be extended to the senate floor CHANGE IN RELIEF GRANTS IS SOUGHT ST PAUL house legislative committee today was considering a proposal by Mayor George Leach of to cut relief grants to urban clients with corresponding higher grants to rural clients Ke urged such a move on the committee in an attempt to keep needy persons in rural districts and asked a uniform relief allowance to of the needy in cities Leach before the com- with the mayors of St Paul and Duluth to discuss relief for the He told legislators that thp rural areas will have to absorb pait of the urban burdens Leach proposed legislative action to provide so that counties such as Hennepin having relief clients whose homes are elsewhere in the state could home ties for aid given to needy He said that such a move would end a tice of urging needy persons to emigrate to the cities He also suggested that the legis- lature authorize cities to levy cial taxes to raise relief revenues fie said unless some such method s found to aid Minneapolis the city would be bankrupt Sen ton K Wheeler D Mont chairman of the Senate Interstate Commerce Committee reported to Congress day that current plans for financial of railroads are harbingers of renewed insolvency In the first of a series of ports on his committee's tion of rail economy Wheeler cited the financial experience of the souri Pacific and Wabash as cases in instance With a third of our railroad mileage now in the process of re- organization we must see to it that future are sounder and more permanent than typical of the Wheeler said He disclosed he has prepared a Senate to set up standards for rail aimed at s- suance of so-called income bonds which are bonds in name only the reliance on inadequate sinking fund provisions normal net income expectation is insufficient to meet the sinking fund payments the use of open-end with the of swollen fixed charges and diluted protection to bondholders and underlying all the other errors undue in estimating future earnings re- in capital structures that are out of gear with the earning power of the property Wheeler's report commenting on the Missouri Pacific and Wabash said the plans proposed for the reorganization of these roads reveal the same fundamental weakness that caused present collapse To be the report said there are provisions foi obtaining funds through stock issue but such when analyzed seem tle more than lip service to a ideal Practically the over- whelming probability under the proposed plans is that both roads will have to resort to additional to meet most if not all of their future financial needs WARN DRIVERS TO KEEP VEHICLES IN To permit street crews an to snow fi om the curbs drivers are to avoid parking tonight the city police department stated his morning If cars are left parked in the downtown streets they will be towed into garages and the age against the owners he police department warned The order holds good until 7 o'clock in the morning Dog Has Seeing Eye Like the eye dogs who guide blind humans a cocky little Boston rier named Jerry has appointed himself the guardian and eyes of his blind Spot a fox terrier the owner revealed today Spot sees the world through Jerry's said Mrs Paula who owns both dogs Jerry runs at his side all the time He keeps Spot off the street until traffic clears and then es with him to the other side Sometimes when the two are in a crowded place Jerry Spot's short leash in his mouth and leads him Jerry's affection for Spot began before Spot's blindness overtook him six years ago Jerry took to Spot the minut my husband lifted the fox terrie puppy out of his Mrs Woerishofer said Jerry was jus a pup himself but he then to look out for Spot Jerry is a true friendship and we are proud of him The Foreign Situation Disarmament apparently was the price of colonies in London today as the cabinet met to examine the international situation in the light of Adolf Hitler's speech of this week Prime Minister Neville it was understood will refuse to discuss redistribution of colonies in Germany's favor without Hitler conforming to an agi eed and ample measure of dis- armament Boiled down this means that Butam is unwilling to giva Germany colonies so long as there is danger that she might use as strategic bases from which hen air and submarine fleets could threaten cations ITALY Twenty thousand men marched solini today using the new Italian goose step and with daggers hold high in salute to their chief Thp occasion was the of the founding of the militia Many believed that II Duce might seize this fo make a speech giving some hint of anxiously awaited campaign concessions from France But solini remained silent SPAIN Nationalist today were closing m tightening the triangle of territory in Catalonia still held yy the loyalists The insurgent ar- mies were to have almost surrounded the city of Seo de near the frontier ng to trap thousands of loyalists Seo dp is only a little han 20 from the French der On the coast insurgent patches the nationalists were capturing laige number of or and railroad cars Apparently the attack was ng the loyalists too fast for them to get their transports northward through roads Nationalists also claimed today they had taken two submarines left m and four warships when they captured Barcelona It 13 pre- thr were small tle craft armed trawlers FRANCE Possibility was rumored today that France may invoke French Se curity Plan No 1 which would in volve the mobilization of ac tive troops on the frontier The rumor started follow ing the inspection of the frontier by Albert minister of the interior Simultaneous with the re port that the plan be invoked came that Ital ian troops removed from the celona area had been sent to thp frontier and that Italy intends to land a contingent of men on the loyalist sea coast near Fiance While theip seemed to be some con- the con- the Italian troops and thp mobilization thp troop werp discounted by most ob- s A npw lefugoe problem faced thp as authorities bated whether to allow oxen and sheep by fleeing to cross the border The cattle had been the passes from the river past HIPS Snow pied vegetal ami it was feared many of the might die of hunger in thf mountains In the meantime were bong made to receive re- ported stalling for the frontier de region JAPAN Consideration of a ation of war against Chinn vas i e- Ai ita Anfa said the was being by circles pi ob- ably means army men IP of the are speculating upon the of a men P ation of ould entail of lights of foreign in China and would the Japanese against claims fur indemnity using from the of foreign and With of war existing foreign nations still insist upon their lights under the Chinese ex- clauses A tion of by Japan undoubtedly would bring pressure in the United States for the invocation of the American neutrality act Borah Taken to Hospital Early Today Wil liam n Borah R Idaho was taken to Emergency hospital in an lance today and it was reporte without confirmation that he wa suffering from pneumonia There were conflicting reports a to the exact nature of the old senator's illness His office said he was suffering from la grippe Offices of his physician said he wa suffering from influenza A hos pital assistant said that his had turned into pneumonia Wrapped in Borah was carried into the hospital Mrs Borah her face streaked with tears had accompanied him in the ambulance Borah whose powerful influence in international in the ate made him one of the besl own Americans in the world be- came ill a few days ago day it was announced that he had a cold Borah's advanced age and custom of working intensively have sioned fears for his health since his illness following the last session of A member of Senate since 907 he is best known for his work as chairman of the Senate Foreign delations Committee while the Re- party was in power RECEIVE INITIAL CHECK FROM PWA FOR NEW SCHOOLS A United States treasury check or was received by the school board today as the irst 25 per rent payment on haie of the cost of the Lowell and school buildings The heck was based on a total cost of Until the time lon costs boine through he bond by citizens f the disti K t The fust check for the Harrison nd Whittier schools is expected oon 45 per cent grant on the and Lowell buildings will otal STRUCK BY VEHICLE Arch- Siltman is confined in a hospital suffering from everal broken ribs and head m- uries received when she was truck by an automobile in neapolis last week Highways in Area Blocked by Snow Fall State Highway Department Warns People to Stay Al Home Plows Pulled In Because of Low Visibility Despite abatement of the storm this afternoon saow plows still were being held in garages awaiting a drop in the high wind which was sweeping the snow over the entire area If the wind drops this evening the plows will be sent out Roads throughout the area were reported blocked and while the snow had stopped falling weather forecasts predicted more snow tonight Described by as one of the worst storms erd has seen in the last decade or more a blizzard raged through this district today By noon nearly five inches of snow had fallen and there was no sign that the storm would abate The storm blanketed all mid- western states starting from the Rocky mountains and moving Idly eastward By will have reached cities which are still digging out from the blizzard which struck the midwest earlier in the week The first storm missed erd but today's blizzard was ing full blast upon northern The state highway office in erd today warned everyone to stay off the highways except in those cases where travel was imperative With visibility down to 50 feet or less all snow plows were ordered in Highway officials explained that with the low visibility they a danger to other traffic on the highways As soon as the storm abates they will be ordered out to cleir roads which at noon today weie reported blocking rapidly To Continue Tonight Highways were reported closed in the Pierz and Mille Lacs area and were rapidly becoming able in a wide area around erd At the forestry station the was reported as unusually low Since 8 o'clock this morning t had fallen three points to reach he reading of 29.7 Forecasts were for continued heavy snow tonight and tomorrow with the weather turning much colder tonight The storm resulted from a low pressure area which formed over Colo and which was ered today over northern ka While the heaviest snow was ailing in north central states pre- was foreseen throughout he entire middle west A light snow vas falling in Chicago this ng where the last of the fall from arlier in the week was still be- ng cleared away West is Blanketed The storm had blanketed the ocky mountain states with one of fie heaviest snow falls for the area his winter There was 18 inches f snow at Logan Utah and ions of Colorado and New co reported from two to eight Highways throughout North and Dakota and m western either were already blocked r were expected to become tev within a few hours way departments of all three states earned motorists that automobile was extremely hazardous Aberdeen S D reported thai ight inches of snow had fallen here within six hours and that the was continuing A strong was blowing and a complete ighway blockade was in prospect communication was dis- in some sections of the state Fargo N D reported that most in that state were ex- to be closed within a short STORM Continued on page 2
