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Mason City Globe-Gazette (Newspaper) - June 1, 1937, Mason City, Iowa NORTH IOWAS DAILY PAPER EDITED FOR THE HOME THE NEWSPAPER THAT MAKES ALL NORTH IOWANS NEIGHBORS HOME EDITION VOL FIVE CENTS A CCtPY ASSOCIATED PRESS AND UNITED PRESS FULL LEASED WIRES MASON CXTY IOWA TUESDAY JUNE i THIS PAPER CONSISTS or ONE SECTIONS NO 202 Incidents in Washington Funny Little Things Get Attention of Capital By CHAWLES P STEWART 1 ASH I N G T O N a few inconse quential but funny little things have been occurring in and about Washington re cently For example Not long ago Charles F Keene a cap ital realtor traveling from here to Nor folk dis appeared some time in the night from his I stateroom on a Potomac River Chesapeake Bay steamboat called the District of Columbia It might have been suicide but it looked more like murder Yet the circumstances of the case didnt exactly bear out either of these two theories It was rather as if the missing man simply had evaporated It was a regular Sherlock Holmes mystery The Washington police began trying to solve it So did the Vir So did the Maryland police Since it was an interstate matter the Gmen took hand in it The federal bureau of navi gation being responsible for safety at sea did likewise la Next Stateroom It soon was ascertained that a F Loper had occupied a stateroom adjoining Keenes Inasmuch as her cabin and Keenes were separated by but a thin partition it immediately was conjectured that she rright be a valuable witness All of the ablest state and fed this part of the United States finetocth combed Wash ington Baltimore and Norfolk for a week for Mrs R F Loper They couldnt find her Then all at once she turned up voluntarily at ELIA OFF ON WORLD FINISHES FIRST LAP OF FLIGHT PUERTO RICO the navigation bureaus inquiry I see by the she said that my testimonys wanted in the Keenecase Well for gosh sake exclaimed all the expert investigators Weve looked for you every where In Telephone Book Did you asked Mrs Loper in the telephone book Why no they hadnt Her name was and is in the book all right but for a sleuth that would have been too obvious MrsLopers tes timony wasnt of any value any way Makes Dawn Test Radios Everything Okay We Are on Our SAN JUAN P lia Earhart arrived here at p CST Tuesday completing the first leg of her roundthe world fiigh which startec Tuesday morn ing at Miami Miss Earhart accompanied by navigator Capt Fred J Noon an set her low winged twin motored mono plane down in Puerto Rico seven hours 34 minutes after she started on the mile journey across the Caribbean The nex point in her mile dash around Amelia the globe fol lowing ihe equator was to be Par imaribo Nett rlands Guiana miles from San Juan To Natal Next the flyer trying the equatorial flight for the second time intended o fly to Natal Senate Votes td Probe Tax Evasions Vote Follows Roosevelts Message Asking Congress to Plug Loopholes in Law Brazil thence across the South Atlantic across Africa to Asia Australia and eventually to Oak land terminus of the flight high commissioner to the Philip pines as we know has insisted that toasts drunk at Manila be drunk first in honor of President Roosevelt then of himself Mc Nutt thirdly in honor of President Quezon of the Philippine the Fili pinos want to toast Roosevelt pri marily Quezon secondarily and McNutt thirdly The state departments division of protocol which decides these Questions of precedence rules that McNutt technically is correct An Official Decision This an official de cision only Unofficially the protocol division asks Why shouldnt a banquet waive toasts and devote itself to serious drinking Pretty intelligent for an outfit like the protocol folk These situations as initially re marked arent important But theyre funny MissEarhart put her ship ihrough a dawn test of near ly an hour taking off from muni cipal airport at Miami at m At s zn she messaged Pan American Airways by radio Everything okay We are on our Last March 17 Miss Earhart took off frorr Oakland on a west ward flight around the world It failed when she crashed at Hono lulu after t tire blowout on the runways Reverses Her Route Reversal of her route on the present the will carry her past the an ticipated weather sooner than if she were to make another at tempted westward flight The worst weather Miss Earhart fore saw was in Africa where it was explained fJying conditions grow worse daily at this season The route of the flight was near the most of the way The plane with a capacity for fiallons of gasoline carried 600 gallons comparatively shozt hop to San Juan So THEY President Roosevelt in his mes sage to congress I arc confident that the congress will to en act legislation at this session speci fically and exclusively aimed at making the present tax structure evasion Amelia Earhart by radio from her plane as she started a fliffht around the world Everything okay We are on our Cv C Slapnicka vice president Cleveland Indians baseball team on deciding to send Bob Feller youthful pitcher from Iowa home Bcb still feels the soreness in his forearm and it has been decided that a complete rest will be Mrs Ida B Wise Smith of the W estiwatingr a half tewpoonful of beer would jjive her tunnel Tnmiel vision is a visual conditipn prevents an automobile driver from seelnir anywiiere hut atrairht in front of John L Lewis labor leader ac cusing Republic Steel corpora tion andChicago police force of planned murder in the death of several steel workers riot Sunday The nation ttnows the Chicago police force is corrupt It is the same force thatfor years has protected the hoodlum and the NAZIS FORMALLY ACCUSE VATIC AN See Relations Endangered by Failure to Disavow Mundelein Speech BERLIN German gov ernment Tuesday formally ac cused the Vatican of endangering normal relations with the nazi reich by failing to disavow the critical speech of George Cardi nal Mundelein of Chicago A diplomatic note handed to the holy sfc by Diego von Bergen the German ambassador to the vstican said The holy see must realize that its unexpected and incomprehen sible attitude in this matter so long as it remains unremedied has removed the preconditions for the normal course of relations between the German government and the Roman The Roman curia is the body of congregations tribunals and offices through which the pope governs the The foreign office said the note did mean that relations with theVatican were now beingbroken off Von Bergen it was explained left Rome on his usual summer vacation But it was he will not go back for Earlier the German government had made formal representations to the Vatican against Cardinal Mundeleins speech in which he called Adolf Hitler an Austrian paper hangerand a poor one at that and assailed German trials of priests and lay brothers on im morality charges as atrocity WASHINGTON sen ate acting in immediate response to a special message from Presi dent Roosevelt Tuesday passed without a record vote a joint reso lution calling for a far reaching in vestigation of shocking tax eva sion and avoidance Both majority and minority factions in the senate joined in support of the resolution which will create a joint congressional committee to investigate methods allegedly used by wealthy Ameri cans to evade or avoid full pay ment of federal levies The resolution was introduced by Senator Pat Harrison chairman of the senate fi nance committee immediately after the reading of Mr Roose velts message which called atten tion to the asserted widespread tax evasions and stated that im mediate passage of legislation to plug revenue law loopholes is It was expected that legislative action to close loopholes in the tax laws would be taken while the inquiry is in progress Methods of Evasion Methods of tax evasion are many the president said but all are alike in that they result in shifting the tax load to the shoulders of others less able to Mr Roosevelt urged congress to grant the treasury full power to ummon witnesses and compel their testimony in an investigation of tax evasions estimated to have cost the government between and in re fiscal year He did iot mention the of a congressional committee aiding in he proposed inquiry Mr Roosevelt quoted the late supreme court Justice Oliver Wendell Holmes definition of tax es as what we pay for civilized Too many the president said the civiliza tion at a Opposed to Revision The president sought to fore stall an indicated attempt in cer tain congressional circles to ex pand consideration of antitax evasion legislation to include re vision of the entire tax structure It seems to Mr Roosevelt said that the first duty of the congress is to empower the gov ernment to stop these evil prac tices and that legislation to this end should not be confused with legislation to revise tax He pointed out that he had al ready suggested to congress that there should be no new taxes or rate changes at the present ses sion but left a hint that revision of the revenue laws might be un dertaken at the next session Can Act Later I have indicated to the con must file an income tax return Although the methods of escape or avoidance of tax liability are different in that some are legal because of loopholes in the reve nue act some are on the border line of legality and others plainly illegal Mr Roosevelt held they were all alike that they are definitely contrary tothe spirit of the Feeling of Indignation Morgenthaus letter the presi dent said left him with a feeling of indignation What the facts set forth mean to me is that we have reached an other major difficulty in the main tenance of the normal processes of our Mr Roosevelt said We are trying harder than ever before to relieve suffering and want to protect the weak to curb avarice to prevent booms and depressions and to balance the budget Taxationnecessary to these ends is the foundation ot sound governmental finance When our legitimate revenues are attacked the whole structure of our government is attacked Clev er little schemes are not admir able when they undermine the foundations of The president said that not one but many red herrings are in pre paration to obscure the real issue Decency of Morals Already certain newspaper publishers are seeking to make it that if an individual can devise unanticipated methods to avoid taxes which the congress intended him topay he is doing nothing unpatriotic or unethical and second that because certain 13DESMOINES LAUNDRIES SIGN UP WITH DEES OF WEBSTERCITY Robbins 74 WebsterCity farmer died of injuries suffered when he thrown from a tractor he was operating under a disc harrow he said that the treasury will be prepared by next Novem ber to present to the appropriate committees information on the basis of which the congress may if it chooses undertake revisions of the tax The president included in his message a letter from Secretary of the Treasury Henry Morgen thau which cited the principal types of tax avoidance and eva sion disclosed in a preliminary study of income tax returns for the calendar year 1936 The evasion devices enumerated by Morgenthau included 1 Formation of personal hold ing corporations in nearby foreign countries and islands 2 Creation of closely held for eign insurance companies Personal Holding Companies 3 Formation of domestic per sonal holding companies incor poration of yachts and country es tates 4 Artificial deductions for in terest and losses on loans to tax payers by their personal holding companies or family trusts 5 Creation of multiple trusts for relatives and dependents 6 Formation of husband and wife or father and children part nerships 7 Setting up of taxfree pension ofwhich the only benefi ciaries aresmall groups of officers and directors in the high income brackets indiWdQ ncome tax bra elects or the un distributed earnings tax or the capital gains tax the first duty of congress should be the repeal or reduction of these The president said the problem involves the decency of American morals The example of successful tax dodging by a minority of very rich the president continued breeds efforts by oth er people to dodge other laws as j well as tax laws Matter nf Regret It is also a matter of deep re gret to know that lawyers of high standing at the bar not only have advised and are advising their clients to utilize tax avoidance devices but are actively using these devices in their own sonal affairs I am confident that the congress to enact legislation at Agree to Closed Shop Plan to Reopen for Business on Thursday MOINES of 13 laundries here closed by strikes Tuesday signed a contract with union representatives providing for the opening of their plants Thursday Owners could not be reached for a statement on the settlement James W Soutter secretary of the Des Moines Trades and Labor assembly said the terms of the settlement were Recognition of the laundry workers truck drivers and engi neers unions as bargaining agen cies for all plant employes Seniority rights Arbitration of wages hours and working conditions Provide Closed Shop Employes who are or become members of the unions during the effective period of the contract must remain members during its life and members expelled or suspended by the union must be discharged by the company The contract is effective until Aug 1 1938 Soutter said Negotiations concerning wages hours and working conditions will begin in 60 days he said He de clared they would be between committees representing laundry owners and employes Soutter said telephone operators twll be on duty in all plants at a m Wednesday truck pick ups will begin Wednesday noon and actual laundry operations at 7 a m Closed 8 Weeks The plants have been closed for the pasteight weeks some of them occupied by sitdown strikers Sev eral plants have suffered damage j s mostly in the form of smashed by night The union leaders called the strike seeking preliminary recog nition of their organization as a collective bargaining agency Wage and hour disputes between work ers and owners were also listed Historic Term of High Court Comes to End WASHINGTON JP The su preme court wound up an eight month historic term Tuesday by agreeing to pass upon constitution ality of federal loans and giants in financing municipal power plants It then adjourned not to meet again until October Before that time congress may act on Presi dent Roosevelts controverted court reorganization proposal to put new blood in the highest bench Before adjourning the court de clined to review litigation filed by the Electric Bond and Share company and 26subsidiaries chal lenging constitutionality of the 1935 act regulating public utility holding companies Van Devanter Through That left in effect a lower court ruling which required such com panies to register with the secu rities but did not in volve constitutionality of the leg islation A review was sought without waiting for a customary opinion by the circuit court of ap peals This was the final session at tended by 73 year old Justice Wil lis Van Devanter retiring after 26 years of service He will spend most of his time on his Mary land farm Among actions Tuesday the court Refused to review a decision by the sixth circuit court of appeals ordering a trial before the eastern Tennessee federal district court to determine whether the Tennes see valley authority could expand its power progranrsp eight states Nineteen private utility companies are seeking1to enjoin the TVA ac tivities Wagner Act Cases Declined to pass on two new cases challenging the Wagner la bor relations act on the ground that it made no provision for a ju LOOK INSIDE FOR IDA B WISE SMITH Discourses on Effects of Beer on Auto Driver PAGE 2 13 Die in Accidents Drownings in WeekEnd PAGE 8 GlobeGazette Joins Y to Make Safe Swims PAGE 9 Cerro Gbfdo Launching New Campaign on Weeds PAGE 12 ARREST SECOND MAN AT COWITH its employes ana oy me c 1 A L dent workers of Clayton Mark and I Stephens Questioned About nf f i i review of decisions by the national labor relations board as should represent employes in collective bargaining The ap peals were filed by the El Paso Electric company and a group of j its employes and by the indepen under grievances Gov Nels G Kraschel entered the strike negotiations two weeks union repi notcollect interest or a gold liberty bond which had been called company of Chicago Consented to review a ruling fay the court of claims that Robert A Taft of Cincinnati son of the late William Howard Taft could per I resentatives into conference Proposal Turned Down The union men refused to ac cept the governors peace proposal j UtUtLlplCfiUV CA J 1V1 O UtdCC yhich provided a 45 day truce dur clusively aimed at making the In addition Morgenthau set forth three major instances in which the law itself in dividuals and corporations to avoid their full share tax burden These included Division of Income Percentage depletion of such properties as r oil wells and mines 2 Division otf income between husband and wife in states having community property laws of the require ment that a nonresident alien present tax structure evasion Morgenthaus letter describee the treasurys surprise and dis turbance at the failure of March income tax receipts to measure up to budget estimates The re sultant preliminary study dis closed conditions so serious the cabinet member wrote that im mediate action is called 64 Bahama The most popular of the tax evasion devices he said involvec the creation of foreign persona holding corporations in the Ba hamas Panama Newfoundland and other places where taxes are low and corporation laws Americans have formed 64 such companies in the Bahamas alone in 1935 arid1936 and 22 more were organized by Ameri cans in the Bahamas during the past two Morgenthau related He sarcastically applied the description thrifty to a tax payer who formed 64 trusts for the benefit of four members of his immediate family and thereby claimed to have saved over 000 in taxes in one year The Weather FORECAST IOWA Mostly cloudy Tuesday night and Wednesday probably showers and thunderstorms in west and south Tuesday liight or Wednesday slifhtly copier in extreme nifht MINNESOTA Partly cloudy to cloudy Tuesday night and Wednesday slightly warmer in northwest Tuesday nifffil not quite so cool Wednesday in northeast and eastcentral por tions IN MASON CITY GlobeGazette weather figures 6r 24 period ending at 8 s Maximum Monday 72 Minimum in night 55 At Tuesday 59 Rainfall Trace ing which the plants would operate on a prestrike basis Negotiations were to begin after the truce ter minated The union last week was re ported to have drawn up a peace agreement embodying some of the governors proposals The governor walked oat of a secondpeace con ference when both sides admitted stalemate Fresh negotiations began last weekend when union leaders and owners sat down to conferences for redemption in advance of the maturity date A total of of such bonds were called by the treasury before they ma HOUSE VOTESTO OVERRIDE VETO Rebels Against Roosevelts Disapproval of War Risk Term Insurance WASHINGTON tion of house republicans and re bellious democrats Tuesday voted to override President Roosevelts veto of a bill for further extension of 5year warrisk term insur ance The voteto override was 368 to 13 A twothirds majority was necessary The bill affecting more than who went off the insurance Tuesday extends the insurance five additional years The bill the senate for a vote The last time a bill was passed over the presidents veto was the soldiers bonus measurelast year The revolt of administration congressmen was led by Chair man John of lie house veterans thebill tured Home Owners Loan Agreed to pass on conviction of Gertrude Kay of New York of vio lating sections of the home own ers loan act prohibiting false state ments She was sentenced to serve a year and a day in prison and challengedprovisions of the act setting up the home owners loan Litigation the tribunal agreed to review will be argued next fall with a filial decision a few weeks thereafter The rulings of the lower courts remain in effect on cases in which a review was denied Over 50Controversies More than 50 controversies ap lower courts were act ed on Tuesday The merits of the legislation was not involved in the action of denying pe titionsior review In addition the court delivered final opinions on a few cases which had been argued None was of gen eral interest Within a few days all of the CUT OMAHA Sioux City BY BOTTLE Theison policeman was cut bout the nghtleg by iiying glass at the AKSarBeri race track when a bottle crashed at his feet while was walking outside the grandstand justices will leave Washington to spend the summer in various vaca tion retreats Waiits Visitors to Nebraskas Capitol to Be Dignified LINCOLN State Land CommissionerLeo N Swan son custodian of the Nebraska capitol buiiding wants visitors to the to be dig He said so Tuesday in a large sign postedinside the main en trance which positively forbids running and sliding on the marble floors IOWANS AID RESCUE ORE Wi H River stock L Howorth both of loway aided in rescuing four persons from the Ash when their of lost their The Towans witnessed theacciderit Events of Night Anfinson Was Slain W Stephens about 44 Corwith was arrested early Tuesday and officers planned to question him to see if he might be able to provide any clews on a solujjon to the slay ing of Bert Anfinson Corwith beer parlor operator Stephens was taken to Garner and later was expected to be taken to jail in Mason City where Frank Weider a suspect in the case is being j held Stephens arrested about oclock at Corwith by Hancock county authorities had been liv ing in rooms over a grocery store with his divorced wife and their children He had been working in the store she operated Served 3 Months It was understood that officers were called tc the place when a daughter Dorothy asked officers to investigate a fracas that was said to1 at the Stephens place Stephensserved three monthsin jail at Mason City last winter on liquor charge It was about that timethat his wife received adivorce Stephens is friher of two sons and four daughters one of whom is married Officers stated some time ago IN PEACE Britain Protests Violence of Spanish Loyalists in Peace WASHINGTON Hull has expressed to both the German and Spanish ambassadors in Washington this governments earnest hope that their nations will be able to adjust amicably their differences in the Spanish civil strife Invoking the good offices of this government in anattempt to ward offa serious crisis in Europeas1 a result of the German bombard ment Monday of the Spanish gov ernment port Almeria HuH conveyed his message in conversations with bothenvoys Spanish Envoy Protests He first summoned7 German Ambassador HansDieckttofi privacy of1 Monday and told the envoy informallyof this governments urgent hope for a peacefulsetlement of the meria incident The Spanish ambassador Fer nando de Los Rios called at the state department Tuesday to ex press to the secretary of state his governments emphatic protest over what he termed Germanys violation of the nonintervention agreement and of international law in firing on Almeria Virtually Same Message In reply Hull repeated to him virtually the same message he conveyed to Dieckhoff Elaborating at his press con ference on his discussions with the two of a character most unusual in diplo matic lhat h e railed fact thattheU S constantly preaches and urges the maintenance of peace by all governments ITALIAN WARSHIPS READY TO STOP RUSSIAN SHIPS ROME warships have been ordered Rus sianvessels from supplying war materials to the Spanish govern ment authoritative sources dis closed Tuesday night Italian ships in Spanish waters already have been withdrawn by Premier Mussolini from the inter national neutrality fleet following Spanish government aerial attacks on Italian and German warships ermany has shelled Almeria in reprisal II Duce and Marshal Werdner Von Bloinberg German war min ister meanwhile flew here for con ferences over the grave Spanish situation Authoritative fascist quarters said that complete withdrawal of talys fighting ships from Span xSh waters because of Mussolinis decision to quit the 27 nation hands off Spain committee after the arrest of Welder that other arrests might be made in the case It has beer indicated that still more arrests may be made as officers continue investigations Found Near Toolhouse was night of May 20 or early May 21 His body was found neara railroad toolhouse but officers believed he might have been knocked uncon scious at his beer parlor and carried to the railroad tracks where Jie was struck a number of Weider was arrested after blood stains were found onhis shirt Tests showed7 these stains were not as he had claimed Louise Weider 23 daughter of the suspect wasemployed by Anfin son Last Day to File for Homestead Benefits DES Tuesday was tlie last day Towans could file applications with county auditors for tax relief under the new home from went to the rescue stead tax reduction act would make it too easy for the Spanish government Warnings also were sounded that the next time an Italian war ship is attacked there will be re prisals PROTEST SEEN AS WAT OF BOLSTERING PEACE LONDON Great Britain joined Germany and Italy Tues day in protesting Spanish govern ment violence against neutral shipping apparently as a measure to bolster Europes peace The British stand well informed sources believed was calculated to give reassurance to Berlin and Rome that their demands against the Spanish government were jus tified At the same to obtain safety of snipping through the creation Span ish government of safety zones for neutral warships Not Takinr Sides British spokesmen reiterated That the government was not tak ing sides in the controversybut was striving only to reform the framework of the international hands off now weakened by Italian and German withdrawals following thebomb ing of a German pocket battle ship The British protest wasr based on an attack on the BritishFlotilla leader H M S Hardy oft Palma Mallorca on 26 Theforeign office said the ship was almost byaerial bombs The British Charge at Valencia delivered the protest and received from the SpanuJi government apparent of its readiness toestablish de sired safety zone for neutral warships off Palma Need taf Rwtratat Foreign Secretary Anthony Eden re the needfoncestramt w p Wormed quarters quisHy stated that wMIe the government deplored such attacks as the Span
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