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Mason City Globe-Gazette (Newspaper) - February 18, 1935, Mason City, Iowa NORTH IOWAS DAILY PAPER EDITED FOR THE HOME THE NEWSPAPER THAT MAKES ALL NORTH IOWANS NEIGHBORS HOME EDITION VOL XLI FIVE CENTS ft COPY ASSOCIATED PRESS LEASED W1IIK SBKVICE MASON CITY IOWA MONDAY FEBRUARY 18 1935 THIS PAPEK CONSISTS OF TWO SECTIONS SECTION ONE NO 110 NEW EAL GOLD PLAN UPHELD Supreme Court Gives Ruling on Gold Clauses White House Considers Decisions as Victories NO ACTION NEEDED IN GOLD RULING Roosevelt Confers With Secretaries Hull Morgenthau By FRANCIS M STBPHENSON WASHINGTON Feb 18 President Roosevelt and his imme diate aides decided today after study of the supreme court gold decisions that no legislative or administrative action was required The decisions were accepted at the white house as a complete victory for the government This announcement was made by Attorney General Cummings and Senator Robinson of Arkansas democratic leader after a lengthy discussion with President Roosevelt and Secretaries Hull and Morgen thau Called After Announcement The parley was called immediate ly after the supreme court had spok en its mind It was known in ad vance that the administration was ready should the decisions have been adverse with various alterna tives of administrative and legisla said Robinson to the Complete Victory Attorney General Cummings said As far as I am concerned the de cisions constitute a complete victory for the government all along the line and no administrative action seems to be required The declarations were regarded as portraying the mind of President Roosevelt who bad given the closest attention to the courts decisions For more than two hours he went over the entire monetary situation wih his aides Asked if international monetary stabilization had come into the dis cussions Cummings replied that was not considered TROOPS START FOR SOMALILAND Blackshirts Are Cheered by Italian Populace as 2000 March NAPLES Italy Feb 18 Pi More than 2000 blackshirts with full colonial equipment boarded the S S Gange today for Eritrea and Italian Somaliland as part of Italys reply to Ethiopias defiance The two battalions had been re viewed by Premier Mussolini in Rome on Saturday II Duce in a stirring speech told the men they were to write the most beautiful page in the history of thefascist militia The troops were cheered enthusi astically by the Italian populace as they marched through the streets TheWeatlier FORECAST IOWA Generally fair Mon day night and Tuesday except unsettled in extreme east Mon day night colder Tuesday and in extreme west Mondav night MINNESOTA Generally fair tonight and Tuesday except un settled in northeast portion to i night colder Tuesday and in west portion tonight IN MASON CITY GlobeGazzette weather figures for 24 hour period ending at 8 oclock Monday morning i Maximum Sunday So Minimum in Night 27 At 8 A M Monday 31 Figures for 24 hour period ending HIGH COURT RULING 0 KS COURSE FOR PRIVATE CONTRACTS Bar on Gold in Federal Bonds Declared Invalid but Holders Are Without Power to Bring Suit BY JOHN T SOTER Associated Press Staff Writer JII3J by The Aisnclntiit Tress WASHINGTON Feb 18 five to four the supreme court today in effect swept away any government or private obligation to pay gold bonds in gold Chief Justice Hughes deliveringthe majority opinion in a courtroom tense with the realization of an historic moment said congress must be free to deal as it saw fit with matters which would affect the currency and the court must take ac count of current economic conditions even in ruling on contracts three of his col McReynolds said The constitution is gone1 Denied Redress night While invalidating the law say ng government obligations need not he paid in gold the court simul taneously denied holders of federal bonds the right to sue for redress Action of the supreme court of the United States on the gold policy of the New Deal gives historic interest to this the only photograph ever made of the highest court in the land while it was actually in session The picture made by Dr Erich Salo mon German photographer shows left to right Justices Iloberts Butler Brandeis Van Devanter Hughes Sutherland Stone and Curdaza listening 1o an argument Justice McUeynolds was absent when the photo was made Unseen in the picture is the gold eagle which glares down on the courtroom It is seen in closeup showing its resemblance to the blue eagle of the new deal 8 oclock Sunday morning Maximum Saturday i Minimum in Night At 8 A M Sunday 29 23 26 thirds of February normal ly second coldest of Iowa3 months is past with no temperature lower than 10 above zero and with an average temperature only a little below the melting point MESSAGE ON NRA Policy on Section 7A and 30 Hour Week Proposal Closely Watched WASHINGTON Feb 18 J President Koosevelt pressed toward completion today his message to congress setting forth recommenda tions for the new NRA He was hopeful but not certain of getting it to capital hill late in the day A busy calling list afforded small opportunity for Mr Roosevelt to fin ish writing this message which he regards as among the most impor tant to go forward to congress this session The white house also was keepin an eye out for the expected decision of the supreme court on the gold cases but with no definite knowledge whether the ruling was coming to day or what it would be Hull at Conference Secretary Hullwas invited to the regular Monday luncheon conference of the president and Secretary Mor genthau If any proclamations should be is sued after the gold ruling the secre tary of state must sign them Congress looked for a message from Roosevelt proposing an al tered NRA to govern industry The president framed this long awaited expression of policy in the midst of contentions by some con gressmen and labor leaders that a compulsory 30 hour work week is needed to restore industrial employ ment to former levels Confronted by Demands He was confronted as well by de mands in the senate for a new in vestigation of complaints that the present NRA has fostered monopoly and injured the little businessman One of several points of contro versy on which the presidents stand was awaited eagerly was sec tion 7A of the present NRA act guaranteeing the right of labor to organize and bargain collectively There had been indications from of ficials that the white house would seek to continue this clause Tlie national labor relations board re cently recommended that the col lective bargaining question be clar ified in the new law Senator Wag ner DN Y has said he wants a stronger collective bargaining law and it is believed he aims at barring socalled company unions Aside from collective bargaining the only phases of the present NRA which have been mentioned at the white house as favored on a perma nent basis are provisions against child labor and the maintenance of j minimum wages 2 German Women Are Decapitated Beheaded on Charges of Serving as Spies BERLIN Feb IS Ger man women Baroness Renate von Natzmcr and Frau Benita von Fal kenhayn were killed on the block today as spies An executioner beheaded them in Ploetzensee prison in northwestern Berlin shortly before noon as the German government acted with wartime sternness and in the utmost secrecy to smash espionage of Ger manys military secrets The two women were accom plices of a Polish baron Col Georgs Sosnowski formerly of the Polisn army Sosnosvski himself was savtd from execution by the intervention of the Polish ambassador and al though the reputed espionage lead er escaped with bis life but under a sentence to life imprisonment Also sentenced to life imprison ment was Fraulein Irena von Jena a German The sentences were passed Sat urday by the peoples court and the verdict was studied over the week end by Reichsfuehrer Hitler him self now in Munich SLAYER OF MRS TRACY IS SOUGHT Aged Womans Head Bat tered in Robbery At tempt at Maquoketa MAQUOKETA Feb 18 Pi Sheriff Clarence Heinecke and agents of the Iowa bureau of inves tigation were pressing a hunt here today for the slayer of Mrs Sarah Tracy 77 year old scrubwoman whose head was battered in what a coroners jury held last night was an attempted robbery The elderly widow was reputed to have a fortune estimated at from 51200 to S5000 and to have carried the money in her clothing Sheriff Heinecke said she had lived frugally and indicated distrust in banks and investments but had never disclosed details of her financial affairs even to close relatives Mrs Tracys body was found late yesterday in the kitchen of her home tiere A daughter Mrs Daisy Propst calling during the morning o visit found the house locked When the home was still locked late n the day on another visit she saw the body through a window and summoned aid LARGE STAKES IN GOLD GASES Actual amount Involved in Actions Before Court By MELBOURNE CHRISTERSON Associated Press Staff Writer WASHINGTON Feb 18 TK Sixtynine billion dollars was the ul timate stake in the legal maneuver ing that took the celebrated gold clause cases into the supreme court The immediate stake of those who refused to accept the governments emphatic no in answer to their de mands for payment in gold was only a small sum compared with the vast total involved in all public and private contracts One of the men who through counsel had told the supreme court that congress had no right to de prive him of his gold or the equiva lent in legal currency wanted to gain only 51469 Thousands Arc Personified But that man personified thou sands of holders of bonds mort gages and other contracts contain ing promises to pay an estimated in gold or its of pres ent devalued currency Here is the story behind these historic cases Last February Norman C Nor man of New York presented an in terest coupon on a Baltimore and Ohio railroad bond which had a face value of 2250 and demanded payment in gold or its in legal tender Payment was refused and Nor man determined to get the addi tional sued in the supreme court of New York county Was First Challenge He was among the first to ham mer at the constitutionality of public resolution number 10 ap proved June 5 1933 under which congress declared provisions of contract obligations requiring pay ment in gold or in any amount of money measured thereby to be against public policy Just as strong an attack on the resolution was made by the Bank ers Trust company of New York and William H Bixby trustee un der a mortgage of the Iron Moun tain railway who asked in the United States district court at St Louis in December 1933 that the mortgage of be payable in gold coin Difference Is Claimed In 1917 the Missouri Pacific company acquired the mortgage property of the Iron Mountain road The Missouri Pacific now in re ceivership indebted to the recon struction corporation for 800 The Missouri Pacific contend ed that if it were forced to pay in gold or its equivalent its total bonded debt would be increased I Turn to pntce 3 column 2 Gold Held Limelight Long Time Emergency Moves in Administration Since Start WASHINGTON Feb 18 nancial activities of this adminis tration leading up to the supreme courts gold clause decision saw the United States go off the gold stand ard and other developments which reverberated throughout the world The day President Roosevelt took 4 every bank in the nation had closed its doors to ward off huge crowds seeking to withdraw deposits On his second day in the white house Mr Roosevelt issued his fa mous proclamation imposing a gen eral nationwide banking holiday Frequently since then have come other moves intended to combat de pression Hoarding Was Fought During the bank holiday no banking institution could pay out any cash or take any other action which might facilitate hoarding Three days later the emergency banking act was introduced in con gress and passed the same day It required any or all individuals partnerships associations and cor porations to pay and deliver to the treasurer of the United States any or all gold coin gold bullion and gold certificates owned by them On March 10 President Roosevelt issued an executive order prohibit ing until further notice any indi vidual partnership association or corporation from exporting or oth erwise removing from United States domains any gold coin bul lion or gold certificates except as authorized by the treasury Restrictions Are Placed Foreign exchange restrictions also were placed in effect on this date except as would interfere with legitimate and normal business The following month rn execu tive order was issued forbidding hoarding of gold with certain ex ceptions of more than S100 a per son and providing a penalty for violations Congress authorized the president on May 12 to accept silver in pay ment of the debts of foreign gov ernments up to to re duce the weight of the gold dollai by not more than 50 per cent to fix the weight of the silver dollar at a definite ratio in relation to the gold dollar and to provide for the un limited coinage of such gold and silver at the ratio as fixed Authorized to Fix Weight The president also wasauthorized to fix the weight of the gold dollar in accordance with any intcrna tTttnt to 3 rolmnn 2 BONDHOLDERS ARE ENTITLED TO GOLD BUT CANT GET IT WASHINGTON Feb 18 P all holders of United States bonds which promised to pay gold the supreme court in effect said this today The government had no right to stop gold payments on your bond after promising to pay gold The government has taken gold out of circulation and there is no way you can force the treasury to pay you gold iou cannot sue before the court of claims So the only thing Kft is to accept for your bond its face value in the everyday devalued dollar MASON GITY MAN KILL Emory Highsmith Shot After Fight in San Diego Beer Parlor Emory Highsmith 27 formerly of Mason Ctty was shot through the head following an argument and quarrel Saturday night at San Diego Cal where Mr Highsmith has been stationed at the naval training base Henry Dodge 44 beer parlor bouncer at San Diego is being held by police waiting the filing of a murder charge Mr Highsmith police said was shot after he and Dodge had engaged in what wit nesses described as a hand to hand fight in a beer parlor Detective Edward Dieckman said Dodge told him he drew the gun to strike and subdue Highsmith but in the contusion one bullet was fired and Highsmith crumpled to the street Mr Highsmith is the son of Mr and Mrs Martin R Highsmith 213 First street northwest He is sur vived by his parents and brother and sister of Mason City Reactions Given on World Marts in Gold Ruling in American Cities Shows Spurt Following Announcement By Thn Associated Press Reaction of markets of the worlc today to the United States supreme court decision on gold clauses in grains on the board of trade was temporarily suspended immediately upon the announcement of the supreme courts gold decision after a sharp two cents advance in wheat and corn prices How long the market would be closed was not immediate ly announced Robert P Boylan president using powers granted him several days ago issued the order that baited dealings in the grain pits and then officials studied the decision NEW markets surged upsvard upon news that the supreme court had upheld abroga tion of gold clauses in private ob ligations Wall Street tickers quick ly started to hum Railroad bonds jumped as much as 2 points in many instances and numerous early losses in stocks were converted in to gains of 1 to a share oper ations at the Minneapolis Chamber of Commerce grading trading pit were suspended until further no tice following announcement of the gold clause decision by the su preme court in the court of claims This right also was denied hold ers of the old gold certificates who had sought to get S169 for each dollar in their certificates The government won all along the line with regard to private bonds and state and municipal con tracts Ineacif case iy five to four around the court upheld the right of congress to regulate the cur rency Keads Dissenters Views In reading the views of the dis senters Justice McReynolds said the constitution has been swept away In reference to the federal gold bonds which were held to be an ob igation that could not be repudiated the decision took note of potential effect on national economy should the holders be allowed to sue for more than face value Here is the language in which the court partially invalidated the con tested law We conclude that the joint reso lution of June 5 1933 insofar as it attempted to override the obli gation created by the bond in suit went beyond the congressional power Here is the language in which the court denied holders of federal gold bonds to sue for redress in the court of claims In view of the adjustment of the internal economy to the single measure of value as established by the legislation of the congress the majority had held and the univer sal availability and use throughout the country of the legal tender cur rency in meeting all engagements the payment of the plaintiff of the amount which he demands would Appear to constitute not a recoup ment of loss in any proper sense prices wM the Winnipeg grain exchange shot but an unjustified enrichment upwards in the wake of an advanc Position Is tjtenaWe ing Chicago market following the decision shot upward on the Toronto exchange on an nouncement of the decision Min ing issues advanced 10 to 15 per cent and heavy advances were chalked up in the industrials Two Burned to Death in Milwaukee Hotel MILWAUKEE Feb IS persons lost their lives early today in a fire at the fashionable Hotel Astor residential hotel and apart ment house near Juneau park The dead Oscar Tewcles 66 year old deaf mute and brother of the head of the Tcweles Seed company of Milwaukee Else Sajirger Tew eles jiuvse Five persons were taken to the county emergency hospital suffering from the effectsof smoke NEW prices on the New Orleans exchange took a sharp upward spurt with rather wild trading when first news of the decision was received The first understanding was that the govern ment had won on ail counts but this information was later changed Prices rose 25 to 2S points above Saturdays close CLEVELAND prices on the Cleveland stock exchange ad vanced about one point generally shortly after the decision was an nounced Our board will not be affected materially for a day or two by the decision said one official of ths exchange Plaintiff seeks to make his case solely upon the theory that by rea Tiirn to pnitR 3 Iolnmn 5 Charters of Liberty Three great pronounciaraentos which may be said to be the char ters of American liberty are to be found in this new booklet now ready for you at our Washington information bureau There is no more valuable booklet than this vvhich brings these famous docu Declaration of Indepen dence the Articles of Confedera tion and the Constitution of tho United in their original text with the names of the signers Send 10 cents for your copy Use coupon sprang to life on the Montreal stock exchange with the gold decision announce ment and a flood of buying orders sent listings soaring American dollar weakened considerably on the Lon don market dropping to after tTurn to 3 column I Mason City GlobeGazette Information bureau Frederic 1 Hsisktn director Washington D C I enclose 10 cents in coin care fully wrapped for booklet on the Constitution of the United States Name Street City State lMail to Washington n C
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