Mason City Globe Gazette, July 11, 1931

Mason City Globe Gazette

July 11, 1931

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Issue date: Saturday, July 11, 1931

Pages available: 16

Previous edition: Friday, July 10, 1931

Next edition: Monday, July 13, 1931

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Publication name: Mason City Globe Gazette

Location: Mason City, Iowa

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Years available: 1901 - 1994

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All text in the Mason City Globe Gazette July 11, 1931, Page 1.

Mason City Globe-Gazette (Newspaper) - July 11, 1931, Mason City, Iowa Edited for the Home THE NEWSPAPER THAT MAKES ALL NORTH IOWANS NEIGHBORS VTTvr iimToirtvijm IMAJ ALL KOKTH IOWANS NE VOL XXXVII FIVE CENTS A COPY ASSOCIATED PHESS LHASED WIRE SKHVICB MAgQN Crl gATURDAYt JULy Mining May Be at Loss One Owner Operates in Expectation of War The second of a series of special articles analyzing the critical bi tuminous coal situation THIS PAPER CONSISTS OF TWO SECTIONSSECTION ONE COURT DENIES FALL SUSPENS NO 204 By CHARLES f STEWART Central Press Staff Writer PAIRMONT w va juiy may seem strange that any con siderable number of bituminous mine operators should stubbornly continue mining at no more than the bare cost of P r o d u ction or even at a loss but there are explanations o f it which account for the phenome non in part and if one under stood them all the whole mys t e r y probably would be clear to him For one thing as a W e s t Vir ginia coal com pany official put it to me they rotate As an illustration he cited this case A certain bituminous operator with a property assessed at approxi mately 5340000 went bankrupt and was sold out under the hammer The mining industry being in so deplor able a state his property brot only 541000 The old owner trying to keep what he considered a enterprise afloat hadfallen so far short of doing it that it had ruined him but what was to him a ter rific loss was a profit to the new owner with a mere invest ment f TTOWEVER said my informant that was an extreme case Or dinarily the process of liquidation is much more gradual Generally the new owner merely loses a trifle more slowly than the old one or he makes a little whereas the old one loBf BesidesJaJcing the industry asa WhplOji overproduction is still tobe recicdnedwith If all bituminous values were scaled down at the same rate as in the Instance I have mentioned and the operation of all of them con tinued the only difference would be an allaround reduction in the price of coal which might save money to Turn to rago 2 Column SOLDTRANSFERS AT PENITENTIARY Examine Bank Account of Atlanta Man Accused of Prison Graft NEW YORK July 11 Agents of the department of jus tice forwarded to Washington to day the name of an Atlanta man they suspect obtained for arranging transfers of convicts from the Atlanta federal prison to more pleasant prison camps else where His bank accounts are to be examined Five prisoners were on their way back to Atlanta today from Fort Wadsworth In New York harbor to which they had recently been transferred The prisoners are Harry Gold hurst stockbroker adviser of Bishop Cannon who was sentenced for mail fraud John T Locke also sent enced for mall fraud Paul Rabkin whose confession revealed the bribe system Solomon Rufaman and Joseph Y Pearlman Fort Wadsworth on Staten Island was formerly an army post There are 10 prisoners to each guard The fort overlooks the bay It Is cool Germans Invest Savings in Foreign Currency WEALTHY LEAVE TO SEEK SAFETY IN SWITZERLAND Worried Over Possibl Actions of Hitler Opposition DERLIN July ll tenslo u with which Germany awaits th outcome of the creditseeking rac against time of Hans Luther presi dent of the Reichsbank today too on in wide sections of the reich th semblance of hysteria Persons with small savings ar buying American dollars The fam ilies of wealth are heading towar Switzerland Many of the German buyers o foreign currency are collecting dol lars pounds of francs because thej are worried about the possible ac tions of Adolf Hitler and Alfrec Hugenberg leaders of the opposl tionist parties Others have appar ently resigned to the despairing be lief that a financial and industrla crash will come before preventiv measures can be agreed upon Dsain Is Stimulated Either way their purchases o foreign curency are helping to stl mulate the perilous persisten drain on the Reichsbanks gold re serve already suffering enoug from the withdrawal of shortterm credits abroad Indicative of the extent to which some have surren dered to the panic psychosis is th fact that there are applies tions at banks for gold Collars pa per curency even of the American issue having lost its appeal Bankers have pointed out tha there is no danger of another infla real danger being a credi their argument goes over the heads of the little persons who lost their life savings in the postwar inflation and they go to the bank with what they can scrape together to ask for its equivalent in foreign money Declarations Add Gloom The gloom in government circles over Frances disposition to make credit assistance to Germany con tingent on political concessions hasnt been lightened any by the merging of the Hitler and Hugen berg forces into a united national ist apposition nor by the subse quent declaration of the steel hel met organization that the Hoover moratorium is doomed to failure be cause with its present government Germany is at the mercy of the French policy of might The press is practically unani mous In indignation over the French attitude The rightist papers call it French blackmail and the socialist Corwaert sees it as Paris pressure on Berlin The barracks are clean and roomy There are baseball games and radio may visit one another AUNT MET By Robert Quillen None of our folks was real atheists but Ive seen Uncle Ben tear a leaf out of a hymn book to light his pipe with TWO GUNMEN ROB WISCONSIN BANK Escape With Force Employes Customers to Lie on Floor CAMERON Wis July 11 Two gunmen robbed the Bank of Cameron of approximately today after forcing two employes and three customers to lie on the floor The raiders took all the money in the cash drawers and then ransack ed the vault They commanded W W Pieher cashier and S Kranz assistant cashier to stick em up They then told the employes and three customers to get down on the floor While one stood guard the other gathered the money taking virtually all there was in the bank Unidentified Boy Is Found Fatally Hurt by Crew of Train DES MOINES July 11 Crewmen of a Rock Island train found a boy aged about 17 lying fatally wounded not far from the roundhouse in Valley Junction early today Apparently run over by a train the youth was taken to a hospital here He died n few min utes later Railroad officials and Coroner William Carpenter began an investigation to learn the boys identity Luther Home With No Hope of French Aid Conditions Required for Floating Loan Are Prohibitive BERLIN July 11 Hans Luther president of the Reichsbank returned by plane from Paris to day without having obtained French assistance and without hope of oh taining it under conditions accep table to the German government On Tuesday the Reichsbanks golc coverage for currency still amountec to 1421000000 marks of which 600 000000 consisted of borrowed money gold discount credit and the rediscount credit from abroad On Wednesday the demand iu foreign currencies was 35000000 on Thursday 50000000 and on Friday another 50000000 Todays run fig uratively knocked the bottom out of the banks money barrel Figures Not Available Altho official figures probably will not be available until next week it is estimated that the banks gold coverage is now less than 600000 000 marks or approximately 1200 000000 including the gold discount and rediscount Naturally it is extremely unde sirable that the bank next week should find its currency backed en tirely by borrowed money The alternative of accepting the conditions which France has Smpossc on its participation in a credit also is not to be considered it was as serted in official quarters because those conditions could not be accept ed without precipitating the fall ofths Bruening government 1 t Sought French Aid Lulhervhad sought French aid in extending rcredt to the Reichsbank The bank head went into confer ence with Chancellor Bruening im mediately after his arrival at Tem pelbof airdrome and thereafter the cabinet was called into session to consider the drastic measures of de parting from gold standard and putting all German exports under government monopoly These developments came on the iieels of the news that tho Reichs aank run on foreign currencies to day reached the record breaking to tal of 100000000 marks about Turn to Tase Z Column Shmsons Leave on Visit to Italian Sea Castle ROME July 11 UP Secretary of State Henry L Stimson and Mrs Stimsou left today for a week end visit to beautiful San Gallo castle on the Tyrrhenian sea about 0 miles from Rome They were ac ompanied by Foreign Minister 5ino Grand and SIgnora Grand and American Ambassador John W Garrett and Mrs Garrett Will Rogers BEVERLY HILLS Cal July ranches were the eco nomic salvation of the northwest Wyoming may he king of the dude ranches but Santa Barbara Cal is daddy of the rich dudes Owning ranches and enjoying cm and its a great thing from every angle They improve em give lots ol employment raise fine horses and keep themselves out of a lot of worse devilment So buy a ranch somewhere in the west All your life every man has wanted to be a cowboy Why play Wall street and die young when you can play cowboy and never die Yours WILL Hoovers Scoring of Wheat Bears Splits Grain Men WASHINGTON July ll Agreement with President Hoover1 arraignment of speculators who se wheat short was expressed today b Dr J w T Duvel head of th grain futures administration He joined in deprecating their ac tivities when prices have tumble almost to record lows as unjust fiablc and reiterated his advocacy o a strict limitation by law of the operations July wheat on the Chicago e change touched 52V but ra liedThe rcarKjt sKs b the agriculture departments fore cast yesterday of a 1931 crop o 869013000 bushels President Hoover condemned limited number of speculators whom he charged were working solely to depress the markets ani rob the farmers of the rightful in come His denunciation was injected into the growing controversy over farm board stabilization wheat sale which has seen senate administra tion leaders lined up against the board in an effort to increase the return to growers now harvesting one of their biggest crops Dr Duvel agreed with the presi dent that short sales have merit in normal times but under presen stress conditions tend to weaken tin entire market structure Markets at a Glance NEW YORK traders withdraw ending clarification of German itnation Germans sag oils and specialties g unchanged Foreign exchange Irregular ranc at new 1931 high favorable weath r CHICAGO rains northwest bearish government eport arsons Takes Over Five Frat Houses to Use as Dormitories FAIRFIELD July 11 Clarence W Green president of arsons college here announced hat five of the schools buildings ow used as fraternity and sorority ouses would bo taken over for ormltorics this school year Plan New Mail Courses IOWA CITY July ng to increased demands from stu ents the University of Iowas chool of religion will present two ew correspondence courses in 1931 Z it has been announced by Dr r Willard Lamp a TAKES EXCEPTION MINNEAPOLIS July 11 Charles T Stevenson president of the Minneapolis Chamber of Com merce today took exception to President Hoovers condemnation of short wheat sales by speculators asserting that the trouble today is not too much speculation but too little He said that the federal farm marketing act haa been successful In but one thing and this is min imizing a matter of Torn lo Pnse 2 Column VALUE OF U S RAILROADS SET Commission Changes Base on Which Structure of Rates Is Reared WASHINGTON juiy 11 interstate commerce commission today changed the base upon which the railroad rate structure is reared in preparation for its consideration of the appeal by the railroads for a la per cent boost in freight rates The commission announced that at the end of 1930 the railroads had an estimated tentative value of 691000000 for rate making pur purposes This compared with a value of used by the commission in the 1930 rate case and a book value of 520040572611 claimedby the roads at that tlcie Book Value Higher w he book value of railroad prop erty at the end of 1930 without working capital was fixed at 518000000 and with working capi tal at 524078000000 The tentative valuation was ad justed on the basis of the commis sions previous valuations of the carriers and of annual reports The 1929 estimated valuation for rate making purposes was announc ed by the commission as Turn to Pneo 2 Column HOOVER GUESTS IN ACCIDENT ON ROAD TO CAMP President Will Take Up Domestic and World Problems T URAY Va July 11 portant domestic and interna tional problems were scheduled for discussion today between President Hoover and weekend guests at his Rapidan camp near here The chief executive and Mrs Hoo ver arrived late Friday after an ac cident in their party in which Irank Connor correspondent for the New York HeraldTribune and Mrs Connor were injured The ma chine in which the Connorn were riding from Washington to the Rapidan was overturned near Fair fax Va while passing a largo bus Broken Collarbone Mrs Connor suffered a broken collarbone and severe shock Mr Connor was bruised and scratched Both will recover physicians said Altho the accident marred tha pleasant atmosphere of the presi dents camp Mr Hoover went for ward with hia plans to discuss num erous problems He was expected to confer with Vice President Curtis scheduled to arrive early today on the prospective political situation next year and to obtain the Kan sans opinion on ways and means to improve conditions in the agricul tural belt Protested Board Plajw fiiUs recentlyprotested again the farm boards plan to dispose L 5000000 bushels of Btabllizatlo wheat a month and this week a tended a cabinet meeting with M Hoover The presidents statemen yesterday denouncing speculator selling wheat short and thcrcbi depressing prices was understood t have met the approval of the vie president Secretary Lamont and Assistan Secretary of Commerce Klein als guests were expected to discuss in ternational trade questions with Mr Hoover along with the situation in the domestic bituminous mining in dustry Acting secretary of state Cast was understood to have several mat terg including the forthcoming arm conference at Geneva to discus with the chief executive ILLNESS CANNOT SAVE FALL Associated Press Photo mnH i susPension of I one year sentence for ac coptlnsr n bribe whilei secretary of the interior shown hero at his Texas homo where he spends much of his time in the wheel chiiir POLICE BATTLE WITH STRIKERS Weary and Bruised After 2 Encounters Troopers Stand Guard CENTRAL FALLS R I July 11 and state police weary and bruised after two serious en ounters with rioting mill strikers and sympathizers were on guard oday against renewal of disorders vhich have kept the city in an up oar for two days The climax of two months of la or trouble was reached last night s a crowd of 3000 persons par ded the ttrcets and stoned the mill f the General Fabrics corporation hatterinj its windows and domag ng many of its looms State police were called to aid local officers Read Riot Act The riot act was read by police ho were attacked with bricks to matoes and eggs Tear gns was sed by the police The disturbers larched about the streets continu ng their rioting until midnight ne girl was in the hospital today man was under arrest for inclt ng to riot and another man was eld for rlotinir The eirl who re eived internal Injuries said that policemans nightstick caused her njuries Deputy Chief Cut Deputy Chief of Police Healey as cut on the eye by a blow from man he attempted to arrest one ate trooper was injured on the egby a brick and scores of police ere bruised and cut from hand to and encounters The mills attempted to reopen hnrsday after being closed since lay 7 The mill employs 1200 After last niehts rioting superin endent George Manton said that ie mill close indefinitely c said it had tried to reopen to re 3ve the financial burden of em oyes but a communist movc ent had drawn troublemakers rom near and far Year Plan Wilt Electrify Russian Fawns Vast Use of Moderr Power Depended on for Success This is the fifth of ii series of stories on present day con ditions In soviet By STANLEY RICHARDSON like industry will look to electrification for success under the projected five year plan which soviet Russia wl put into effect in 1933 Already one of the keystones o the current five year plan particu larly in industry electric power wil form the basis for one of the most sweeping changes foreseen for agri culture in the new campaign of gov ernment The goal is that not less than half ihe number of state and collective farms in the soviet union will re ceive their power requirements from electroenergy sources Use Vast Amounts We shall utilize such vast amounts of electroenergy in agri culture as no other country in the world said a member of the col egium of the peoples commissariat of agriculture Altho details of the chief prin ciples of the new five year plan now are m process of formation and will not he reported until Aug 15 a suf Iciently broad outline of soviet igricultural ambitions has been discussed to indicate hopes of the government that the strides already made In this direction will be dwarf d by the contemplated new dcvel pment Not only the construction of a wide network of power stations in uch manner as to satisfy the seeds f a large portion of the agrarian rea is involved but also an ortant increase in the number of mechanized tractor stations which ccordlng to the new plan will be ome centers of vast communal arming enterprises Irrigation Projects Wider use of chemical fertilizers nore irrigation projects especially n the large Central Asian territory nd improvement of natural and nr ficial grazing lands are other fac ors expected to figure in the new ampaign Mention also has been made of rojected changes In the cultivation f wheat designed to harmonize fith cattleraising but what these modifications may be has not been nade public Another phase to re eive particular attention will be he dairy industry The new program for agriculture ow Is the subject of exhaustive udles by a commission 50 scl ntists and agriculturists appointed y the commissariat of agriculture Russia still pays homage at Lenins tomb LWS Dire Picture of Any Future War LONDON July ll dire picture of humanitys plight in the event of another war was drawn by Prime Minister MacDonald at u mammoth peace meeting in AlDurt hall this afternoon The great arnmgeddon struggle would come at last said the prime minister and the end of It would not be defeat but the uniformity exhaustion Mankind would be al most wiped out The i prime minister spoke on a prog rjim which included David Lloyd George the liberal leader and Stanley Baldwin conservative leader their topic being arms and the people The curly part of the meeting was interrupted by the bursting of several stench bombs thrown by a woman in the audience As the prime minister shortly afterwards began speaking there was aomc heckling and attendants forcibly quieted one man who shouted out something about Russia The premier declared People seeking safety by arms are like people seeking safety under trees in a thunder storm They are at the point which 13 first to be struck when the storm breaks Ho said that the British delegates ivere going to next years disarma ment meeting at Geneva deter ninnd by appeals to pledges to hls lory and to common sense to per suade tho nations to reduce this enormous and disgraceful burden Great Britain was honor bound ic said to be in the forefront of those establishing peace LINDlWTO STOP AT OTTAWA Htanford MacNider Receives Letter From Famous Aviator OTTAWA July II S Minister Hanford MacNider has re cived a letter from Col Charlen A Lindbergh saying that on the pro ected night to the Orient the fam aus flyer and his wife will spenrl ne night here No date for tho start the flight was mentioned Col Lindbergh was invited to top over in tho Canadian capital y Minister of National Defense D M Sutherland so he might procure nformation as to the best route to ollow over northern Canada and Alaska Wf ADD DAY TO SENTENCE SO HE CAN STAY WEST Seven Year Attempt to Escape Prison Fails Definitely By SAM BLEDSOB WASHINGTON July 11 bert B Falls seven year at tempt to escape prison today failed definitely The former secretary of the in terior has only a few more days of liberty but Justice Bailey in the District of Columbia supreme court gave him a chance to serve his sentence of a year in n western prison Tho judge after refusing to sus pend the sentence suggested to Frank Hogan Falls attorney that he move to modify the sentence add a day to the year given Fall This would give the attorney gen eral the power to name the prison where the former cabinet officer will serve time for accepting a bribe of from Edward L Doheny Has Latent Tuberculosis Fall has latent tuberculosis and1 physicians have said the disease might become active if he were brot to the humid climate of Wash ington Justice Bailey said that appar ently Falls condition was no worse than when he was convicted in on an indictment returned in 1024 He added that much of the danger to Falls health by going to prison would be removed1 If a dryer climate than that of Washington were chosen Hogan promised t6 get in touch diately and let Justlco Bailey Jur war hisdecision nextMonday iney The summer vacation period Justice Baileys court begins then If Hogan does not move to modify the sentence Fall will probably be ordered to come to Washington at once Citizenship in Quosllon The question of whether Fall would lose his citizenship if the sentence were modified arose after Justice Baileys suggestion The jail sentence he is under at present would not affect his citizenship privileges A penitentiary sentence vould ordinarily altho it might not f the sentence were amended at the suggestion of the court and with tho agreement of Fall If the sentence is changed to a year and a day Fall would be eligible for parole in four months In the event of modification It would become a penitentiary Instead of a jail sentence Atlee Pomerene former Ohio sen ator andspecial prosecutor in the oil lease cases was present He served eight years in the senate with Fall when the latter was a senator from New Mexico Receives Word Calmly EL PASO Tex July 11 Albert B Fall calmly received tha information today that his scntenco of n year in jail given in Wash ington after his conviction ac cepting a bribe would not be sus pended My chief consideration is for my family he said I know that their deepest concern likewise ia for me Tho former secretary of tho tcrior declined further comment IOWA WEATHER Showers somewhat warmer In lio south ccntnil and ex treme cost portion Saturday nlgiit Sunday partly cloudy with showers in the east por LOCAL STATISTICS GlobeGazette weather figures fon 24 hour period ending at 8 oclock Saturday morning Vfaximum Friday gt Ml n Imun in Night 54 U 8 A M Saturday Ten days without a maximum emperature as high as 90 have been passed In North Iowa This la almost exactly tha same length of time passed in late June with tem peratures crowding the 100 mark day after day Saturday opened cloudy with a hit of rain In tha early forenoon The wind was from the south WEEKLY FORECAST CHICAGO July 11 outlook for the week beginning Monday July 13 For the upper Vlississlppl and lower Missouri val eys and northern and central great fair except show ers about middle of week temper atures near normal ;

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