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Mason City Globe-Gazette (Newspaper) - May 1, 1937, Mason City, Iowa NORTH IOWAS DAILY PAPER EDITED FOR THE HOME THi NIWSPAFIR THAT MAKIS ALL NORTH IOWANS NEIGHBORS HOME EDITION VOL XLIII FIVE CENTS A COPY ASSOCIATED PRESS AND TOTTED PRESS JTUU LEASED WIRES 3IASON SATURDAY MAY THIS PAPEB CONSISTS SECTIONS SECTION ONE NO 176 Diminishing Returns Taxes Can Be Boosted So High Revenue Lessens GUARD AGAINST MAY DAY RIOTS CHARLES P STEWART ASHINGT O N times I wonder if the law of diminishing rei turns is under stood as well as it ought to be consider i ng how simple the proposition is T o taxation experts its as plain as print of course But for the benefit of oth ers who may never have much at to it a little consideration of the subject might be profitable e Let us the case DJ an import tax on coffee for example Some of our tariff imposts are imposed with the deliberate pur pose of keeping foreign stuff out of the United States that it may not compete with our domestic production Produce No Coffee Coffee however is a different thing We produce none No pro tective principle is involved lor eign grown coffee is taxed upon its arrival here purely for the sake of the money that the tax yields to the government The government needs the money and that is one way of getting it pos sibly a poor way but it to a certain point The government always wants more and more money the coffee tax is bringing it in quite gener ously so it is boosted All right there is an increase in collections Then there are further boosts to get more still Imports Fall Off But ultimately there comes a time when coffee by reason of the tax becomes too expensive for any except the quite wellto do to continue drinking it Consequently imports of it fall off Mne British Ships Agree to Aid Evacuation The tax is higher but it is paid so much less coffee that the higher tax yields lower one did less than the This is the operation of the law of diminishing returns I do not know that this is par ticularly true of coffee but it is true of imports generally Tariff Too High We have reached a stage where the tariff does not yield anything like the revenue that it would if it were lower By being excessive it has counteracted itself We get less in tax collections where we expected to get more This rule holds good zs to a lot of taxation il lustratively Heaven knows I hold no brief WARSHIPS WILL GUARD OUTSIDE DF 3 MILE LIMIT Ignore Rebel Refusal to Permit Vessels to Leave Bilbao HENDAYE FrancoS p i s h Frontier captains of nine British merchantmen ignor ing Spanish insurgent refusals to respect any foreign ships inside their Bay Eiscay urday agreed to evacuate as many children as possible from Bilbao The captains of the nine ships which already have reached Bil bao through the insurgent sea gauntlet said they hoped to be able to remove between and children to St Jean de Luz around the bend ot the Bay of Biscav in France They announced their plan af ter a conference with the British consul at Bilbao R C Stevenson Relieved Food Crisis The ships which reached their anchorages in the Nervion river to relieve the food crisis of the war swollen population last week are the Hamsterley Thw ston Marvia Sheaf Fieid Bao worth Blackhill Thorehall Consett In London authoritative sources disclosed that British mer chantmen aided by British war ships would remove Bilbaos civ ilian population whether or not in surgent General Francisco Franco consents Warships have been or ships out side the three mile limit All French ports on the Bay of Biscay already had been in structed to receive refugees from Bilbao and were told to expect the first of thousands Saturday or for the malefactor Nevertheless of great when he gets up to a levy of about 80 per cent his inclination is to say Oh well I wont make any more money the government will most of it away from me any Sit Down Strike And he goes on a sit down strike living on what he has got and not trying to make any more The law of diminishing returns in operation once more Now as to big sources of rev enue Uncle Sam has reached the limit of the law of diminishing returns against big money the less it will get It is compel to increase its i water levy on us little oik Income tax I have lived m Ja an There s a class there of jinrickshaw These men are comparable to taxicab men except that they do not operate pull and run on foot between the Defies Great Britain General Franco virtually defy ing Great Britain and France to remove noncombatants from Bil bao despite ihe sinking of the bat tleship Spana backbone of his Bay of Biscay fleet curtly notified the British ambassador to Spain thai insurgent menofwar would not be pledged to respect foreign ships removing Bilbaos civilians The entire crew of the insur gent battleship sent to the bottom by gcxernment serial bombs meanwhile was re ported saved The Basque govern ment said the insurgent cruiser Velasco and fishing boats from Santander picked up officers and men including several injured by a belowdecks explosion An authoritative account said the disastrous bomb one of sevr eral that struck the Espana ex ploded aft and the crew struggled vainly for 40 minutes to keep their vessel from settling under 32 fathoms of choppy Bay of Biscay pan shafts Arid they are subject to income tax Diminishing Returns Aswe pare down income tax exemptions we get towsrd that endeavoring to get away from the law of diminishing re turns Such a situation might be fore stalled by cutting governmental expenditures It is not being done on capitol hill The administration advocates it but does not tell how We ordinary folk however are up against the law of diminishing returns It will get us if we dont look out Witnesses in Trial of Alleged Receiver of Stolen Butter DES MOINES Paul Gruber and two other Iowa bureau investigation agents went to Omaha Saturday to testify at communiques have not mentioned the sinking of the Espana LOYAL WARSHIPS STEAM TO AID BESIEGED CITY HENDAYE FrancoS p a n i s h Frontier UP Loyalist war ships steamed to the defense of be leaguered Bilbao Saturday and bombarded rebel held ports along the Bay of Biscay The broadsides were part ofa new offensive started earlier by the Basque land forces A Bilbao communique reported the capture of Garona and Cota as the loyalist defenders followed up a drive which threw back the advancing rebel army of Gen Emilio Mola nearly two miles on the bloody devastated Guernica salient APRIL SHOWERS USHER IN MAY Unsettled Skies uch Temperature which robbed many Iowa cream eries last year End DCS Molnes Strike DES MOINES strike oJ shop employes at the Des Momes Steel company ended when opera tors and union representative signed an agreement which pro Cloudy Not M Change Seen DES MOINES show ers ushered May into Iowa Satur day with a promise from the weather man that they probably wquld continue in scattered por tions of the state over the week end The forecast was cloudy arid un settled skies with much change in temperature It was raining in North Iowa and at Dubuque and Davenport Satur day morning and was partly LOOK INSIDE FOR JOHN F ONEIL N Y Municipal Judge Stabbed in Back Dies PAGE 2 2 North Iowa Residents Suffer Violent Deaths PAGE 10 State Board May Pay Brown to End Tenure PAGE H Grade School Children 80 Per Cent Immunized PAGE 13 Orders First Real Meal for 52 Days STOOPING OAK Whitlow 45 year old religious faster called Saturday for squir rel broth and a pot of wild I a mountain delicacy sim ilar to turnip greens for his first real meal in 52 days Thomas Whitlow his father shot a squirrel on Cumberland mountain and the rejoicing wife of the faster lost no time in prepar ing it He was ready to eat but none could say how his weakened body would react to the food doctors have warned may prove fatal un less carefully taken Whitlow broke his fast Friday morningby drinking a half cup of what he said was grape juice The neighbors who brought it claimed it was elderberry wine The 45 year old Cumberland mountain fur trapper said My fast is over My trial is ended I know God is with me and I am not afraid I received a sweet mes sage from the Lord He told me to abstain from water and drink a little wine for the stomachs sake 1 understand that wine is the fruit of the vine and not a fer mented or alcoholic beverage I absolutely did not drink any wine and will not First Lady Visits With Grandchildren in Daughters Home SEATTLE Frank lin D Roosevelt visited here Sat urday with her grandchildren Anna Eleanor Dall and Curtis Roosevelt Dall while the presi dent vacationed in Gulf of Mexico waters and both of whom resided for some time at the white house during the presi dents first administration had not seen their grandmother for several months The first lady arrived Thursday night by airplane for a two weeks stay Accompanying Mrs Roosevelt when she arrived at the airport here were her soninlaw and daughter Mr and Mrs John Boettiger who joined her in San Francisco Boettiger is publisher The children are Mrs Boettigers by a former marriage vides among other things a JO per cent wage increase cloudy over the rest of the state workers in the the weatherman said Have You Read Your Newspaper MOVIE STRIKE GAINS SLOWLY Actors Actresses Report for Work GableGoes to See HOLLYWOOD strike that threatened to paralyze the huge motion picture industry and send studio workers from their jobs gathered momentum slowly Saturday Saturday ordinarily is a slack period in the industry and the ef fect of employes already called out on strike was scarcely noticeable There was a scattering of pick ets at the major companies but otherwise the situation seemed normal Production went on as usual at the studios The pickets made no attempt to halt workers not al ready encompassed in the strike call which has affected members of four scenic artists painters draftsmen and hair dressers Report for Work Actors and most of them members of the screen actors guild reported for work 1 The senate civil liberties committee in Washington ques tioned witnesses from what Kentucky county about violence used to prevent mine union or ganization 2 What happened to Gen Douglas MacArthur former U S army chiefof staff 3 For what was Jackson Whitlow Tennessee mountain eer waiting before ending his long fast 4 In what country is Bilbao 5 William Gillette who died the past week was famous in what field of activity 6 What land of fish did Pres ident Roosevelt seek as he went vacationing on the Gulf of Mexico 7 Fire ruined a theater build ing with estimated loss of 000 in what North Iowa town 8 The Iowa legislature ad journed after the house spent most oi itsfinal day in argu ment bill that was finally dropped without pas sage 9 A farmer who had been week returned to his home what town dazed and unable to ex plain his absence 10 What two teams tookthe earlyleadsin major league standings ANSWERS ON PAGE 2 Among the early arrivals at MGM was Clark Gable Are you going to be a strike breaker he was asked he replied I just came to see the The situation seemed so quiet that he added Well I guess Ill just have to go to There are 38 pictures in produc tion now at leading studios as fol lows MetroGoJdwynMayer 5 TwintiethCenturyFox 2 Para mount 13 Universal 2 Warner Brothers 6 Columbia 3 Hal Roach 1 SelznickInternational 1 Sam Goldwyn 3 and RKO 2 I 1C 3ut of 60 Appear Absence oimakeup artists and feared devel opment the not ma terialize Early indications were that members of one of those on strike were not very respon sive to the call At M G 56 of 60 appeared for work Paramounfs big name players alone were at work Saturday no extras or minor actors requiring the services of makeup workers being scheduled to report at the The stars do their own makeup Extra police were detailed to the studios but there were ho dis orders Guild Deters Action There was ho indicationwhether the Screen Actors headed by Robert Montgomery and in cluding most of the leading players of the take action The guild met Friday night and discussed the strike but deferred any announcement until Monday Frederic March James Gagney Boris Karloff Marion Davies and many others are members of the guild The strike of the four unions was called as studio executives withheld decision on union de mands for a closed shop aswell as union recognition The other unions in the newlyformed Fed erated Motion Picture Crafts strike sponsor voted to defer un til later Saturday any decision on joiningthe strike GOV KRASCHEL DEFIES SENATE NAMES SCHOLES Council Bluffs Man on Iowa Jobless Compensation Commission DES MOINES Nels G Kraschel Saturday appointed Walter Scholes democrat of Coun cil Bluffs to serve a four year term as a member of the unem ployment com pensation corn mi s s i o n The post draws a salary of yearly Scholes who is president of the Central La bor union of Bluffs will represent labor on the commission He was one of three men appointed b y the governor on March 1 The senate failed SCHOLES to confirm Scholes appointment and Gov ernor Kraschel reappointed him after the fortyseventh general assembly adjourned Kits and Stanley Another member is Peter J Kies of Dubuque for 14 years county auditor there He also is a demo crat and represents the public The thirdinember is ClaudeStart aAfepliilsflcan and former state senator who repre sents appoint ments were confirmed by the sen ate March 1 The commission administers the unemployment compensation law passed by the special session last December and reenacted in the closing days of the fortyseventh assembly His First Choice In announcing the appointment Governor Kraschel said Mr Scholes was the first choice oi organized labor and was my first choice The senate ac cording to its conversation re fused his confirmation on grounds he was a new democrat Since he was a democratic ap pointment and that was so far as I know the only complaint with him I consider that his demo cratic pedigree was of more in terest to me and my party than to anyone else Therefore I dont ieel obli gated to recognize the senates C D A President Will Speak at Banquet Here Affair Will Conclude 13th Biennial Convention of Iowa Court Miss Mary C Duffy of supreme regent of the Cath olic Daughters of America will be the speakerat the banquet Sun day evening at the Hotel Hanford which will conclude the thirteenth t biennial convention of the Iowa court of the organization The banquet will celebrate the twentyfifth anniversary of the Mason City and the centen nial of the archdiocese of Du buque His excellency the Most Rev Francis Joseph Beckman archbishop of Dubuque will also speak at the banquet as Pitzpairicfc Mason City attorney The toastmaster will be the Rev Edwin Donohue of Shenandoah state chaplain Archbishop Beckman will be the celebrant at the pontifical high massat St Josephs church Sun day morning at oclock which will be the opening event of Sunday for the C D A dele gates The consecration to the Sa cred Heart planned for the juniors has been postponed B O Deeney chairman of the car committee for the convention has asked the 100 drivers engaged to take convention members to tte mass to line Third street northeast near the Hotel Hanford by oclock Sunday morning Thefinal business session of the convention will be at oclock Sunday afternoon at the armory Theelection of officers will be held and the resolutions committee will report Justice Roberts at His 62nd Birthday LABORALLOVER WORLD STAGES C DUFFY to Make Chute Jump SMITHFIELD Ohio Fif teen young parachute club mem boys and seven girls whose ages run from 14 to 25 left for Cincinnati where Saturday they will bail out enmasse from STRIP TEASERS OUT OF LUGf Commissioner Refuses to Renew Licenses of 14 N Y NEW YORK Com missioner Paul Moss brought the citys burlesque situation to a dra matic headSatoday by flatly re fusing to renew the licenses of 14 theaters where strip teasers were art WASHINGTON Owen J Roberts youngest mem ber of the U S supreme court ob serves his sixtysecond birthday Sunday still defying classification with or conservative groups on the tribunal Johnson Schools Head Dies IOWA CITY N Leeper Johnson county superin tendent ofschoolssince 1920 died after an illness of three weeks He was 67 a transport plane Sunday morning in a graduation Aviation authorities believed it would be the first nonexhibition mass parachute jump by civilians Report F R in for Little Rough Seas GALVESTON Texas UP President Roosevelt on a tarpon fishing vacation in the Gulf of Mexico in the vicinity of Galves ton and Arkansas Pass Texas was in for a little rough the of those wno wrote thaPhe U S weather bureau warned tnf disgraceful and Coarse vulgar and lewd were descriptive adjectives Commission er Moss used but he made no di rect reference to the striptease a major point in many of the com plaints He said he had given tne utmost consideration to the fact thatthe iheaters employ between 600 and Fasciil War Menace London Busmen Go on Strike BY THE ASSOCIATED PRESS Thousands marched bands blared the In ternationale over the world Satur day in traditional May day demon strations One bomb death occurred in Warsaw where Polish socialists and communists engaged in a turbulent celebration A child was the victim Several were hurt Huge throngs jammed the streets of European capitals and what was termed the biggest May day pa rade in New Yorks history claimed There and in many other Amer ican cities all police were Held in reserve v Parade in Moscow Cossacks paraded in Moscows red square before Communist Chief Joseph Stslin a half million persons gave the clenched fist sa lute in Paris arid German workers heard from Adolf Hitler that the time icr higher wages had not yet come Loyalist sympathizingparaders in many cities over the world cried help Bilbao as Spanish insur gent guns hammered at the be siegedBasque The day also the film capital of Hollywoodits greatest laborcrisis in years withpossibil ity of a walk out of union workers in movie studios Extra PoUce Posted At political groupsCcalled ftavjii demonstration by police men were posted strategic points downtown and guards were jposted at radio service stations and telephone companies The day took on the aspects of a national holiday in France and Russia In France demonstrators mobil ized to hail gains achieved by the peoples front government to de mand hew social reforms and to seek consolidation of forces against fascsim A walkout of busmen sig nalized May day in wwrote commis urday TfeWeatlier FORECAST IOWA Mostly cloudy and unsettled Saturday night and Sunday not much chanpe in cloudy and unsettled showers Saturday night and in east portion Sun day not much chanee in tem perature IN MASON CITY GlobeGazette weather figures for 24 hour period ending at 8 oclock Maximum Friday 60 Minimum In Night At 8 A M Saturday 52 What a welcome visitor Old Sol was on Aprils last day And on Mays opening day Saturday morning however he had to com pete with rain clouds and the re sult of the contest was no better than a draw lor the sun WEEKLY FOREGAST CHICAGO out look for the period to 9 For the upperMississippi lower Missouri valleys Generally fair first ofNveek with some latter part temperatures near normal Man 85 Leaps Out of Window in Sleep CLEVELAND five year old Carl Roje dreamed someone was cnasing him and jumped through a second story window in his sleep Rain soaked 700 persons but that the welfare ground 35 feet below spared him ofthe public was plainly imper riontiivort smWp illorfhv the tvne of performance Strip teasers and male comics too more than a little alarmed ia the past week by the gales of proIlaiiicu uaj lia test raging around them naa strihe for slower schedules and turned contrite at the last shorter workin crippled the and tried to temper their citys the But the commissioner took neea of the organized complaints from Catholic Protestant and Jewish religious leaders and turned down the applications of the theater owners for new licenses Patrick Cardinal Hayes was one citys transportation system midst of the nations season In a May day manifesto the more than a fractured ankle DEFENSE RESTS Final Witness Says Blood on Overcoat May Have Been His Own NEW CASTLE defense rested its case Saturday in the trial of Brig Gen Henry H Denhardt for the murder of the dark haired widow he was to have married The last defense witness through whom Denhardts law yers hoped to guarantee thero tundsoldierpolitician acquittal of Mrs Verna parr Taylors mur was Dr Alexander Wiener of Brooklyn N a blood ex pert He testified that blood on the generals overcoat may as well have been Denhardts own as that of Mrs Taylor since1 both victim and defendant had blood of the same classification witnesses had testi fied that Denhardt had exhibited a cut finger shortly after Mrs Taylors death and just before au thorities arrived to take away his overcoat for examination of the bloodstains Denhart the stains to injury suffered whenhe changedan automobile tire the night of his death He was described as a per son wbp bled freely from slight injuries Ijledby the type of performa the fetnguage used and the display of Mine Union Leaders AreSatisfiedWith Governors Promise FRANKFORT ganization leaders forthe United Mine Workers of America in Har Ian county said Saturday they were satisfied with promises of Gov A that their workers wouldbe protected William Turnblazer Harlan county organization leader quoted the governor as saying that at least part of the mine owners had agreed to allow union organizers in their mines Chandier ordered 16 police in the Harlan earlier this week after a confernce with mine operators He told Turnblazerin aconference with union workers Friday that companyemployed deputies would he withdrawn from the mines Turnblazer said White Bathing Suits Banned at Dirty Lake CLEVELAND wasnt entirely for moraity reasons that revealing white bathing suits were from Cleveland beaches Saturday Sotak mem ber of Parks Director Hugo Var gas advisory committee on beach said white suits whether or not they are immodest would look terrible coming out of our dirty committee of the tercational named the United States andFrance nations in which it said of workers had checked capital ism The manifesto called for rev olutionary overthrow of capital 2 Mexico City Warring organizations conducted sep arate demoristrar ions in Mexico City Officials of Mexicos federal district routed heir parades over different sec tions of the city to avoid clashes A downtown mass meeting was called in Detroit bya unitedMay day committee claiming to repre sent 100 union arid la organizations But the prime labor group in Michigans indus trial United Auto mobile Workers of planned no formal participation Leaders of American of Labor unionsatCleveland asked their shun par ades scheduled to converge on the public squarefrom three ildei of Two groups the Veteransof Foreign members of leftist vied for attention in Philadel phia s Constabulary on Alert The joint council of mitteefor industrial organization at St Louisv Called fora mass demonstrationrby several thou sand union workers Rumors thatradical groups had planned con stabulary and police on the alert in the Philippines In Keichsfuehrer Hit ler told wildlyvcheering boys aridgutls packed in Olympic stadium Saturday in the reichs May day celebration that those think bring dis union into our youtti are mistak The reichsfuehrers words car ried by an estimated other members of the movement in mass meetings throughout Germany interpreted a possible reference to nazi differences with overthe TO PEACE MOSCOW UPj sar May address Saturday declared threatened
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