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Mason City Globe-Gazette (Newspaper) - April 5, 1936, Mason City, Iowa E R MS HE M t T C F rT I NORTH IOWAS DAILY PAPER EDITED FOR THE HOME THE NEWSPAPER THAT MAKES ALL NORTH IOWANS NEIGHBORS HOME EDITION VOL XLII FIVE CENTS COHY ASSOCIATED PEESS CEASED WUtE SERVICE MASON CITY IOWA MONDAY APRIL 6 1936 THIS PAPER CONSISTS OF TWO SECTIONS SECTION ONE NO 155 Employment Lags Behind Observers Baffled as Business Goes on Improving By CHARLES P STEWART ASHINGTON CPA Witt bus incss rapilj getting back to a h i g hly satisfac t o r y prosperity level why is em p 1 o y m e n t lag ging Economists not answer this question at a 1 convincingly That business is much better there is no doubt Income tax col lections are up about 35 per cent The governments industrial figures are rosy Financial publications al speak of greatly advanced earnings by the countrys big corporations Retail trade is good It would seem as if jobs should be available nearly normally Yet the American Federation o Labor estimates that 12550000 workers still are idle and the peak of unemployment was only approxi mately 13000000 False Explanation The stock explanation of unem ployment is that mechanization is responsible for unemployment that is to say one man now can produce as much as half a dozen or more men formerly thus pitching the extra half dozen or more into the discard It isnt an explanation of course which holds water It is the theory of overproduc tion And as Congressman George Huddleston the house of represen tatives premier economist repeat edly has pointed out there can be no such thing as overproduction until everyone has what he wants up to a there are pre cious few folk in the United Stares who would not consume more in definitely if they could pay for it Mechanization Results Mechanization does indeed dislo cate employment Senator James Couzens aptly brought this out in a report he made a few years ago when the mechanization process was younger than it is today What he emphasized was that a man who has been trained to a trade and finds his job jerked from under him by his particular trades mechanization finds small consola tion in the prospect that some new occupation presently will offer an opportunity for reemployment At best he will have to relearn a call ing At worst if he is old he is a derelict permanently Such a situation is hard in indi vidual cases but it is subject to gradual readjustment There are no signs of one Manufacturers View President C M Chester of the National Association of Manufac turers makes the assertion that re adjustment is retarded by capitals unwillingness to invest in the ma chinery for societys new needs while in a state of uncertainty as to the politicoeconomic future We stand says President Ches ter on the threshold of aircondi tioning television transportation through air twentieth century hous ing But we are asked to subject our selves and our workers and our pro cesses to the ideas of men who never have produced anything and who cannot point to a single enter prise under their control com petently and productively man aged He did not mention the private in dustries which have been terribly bungled What About Railroads FOF example the railroads However it may be true that properly regulated enterprise rather than capital which seems to be stupid more than anything is handicapped by uncertainty But why does reemployment lag behind business recovery Major Ralph H Case a compe tent economist who grew up on the western plains puts it After a very arid season when the well has dried up and then a wet season follows does that well begin to flow again immediately No It is a slow process of infiltra tion TORNADOES KILL MORE THAN 200 Securities Commission Loses in High Court FRANCE TO SEEK GENERALTREATY TOPREVENTWAR British Sympathies for Ethiopia Mount With Italian Advance By THE ASSOCIATED PRESS France has begun a campaign for an all inclusive agreement against war in answer to Reichsfuehrer Hit lers proposals that separate peace pacts be negotiated bilaterally among the nations of Europe French officials indicated they wanted any new security system constructed on the framework of the league of nations while the Ger man idea is that such a method is too unwieldy to insure peace In consequence the world is like ly to see the diplomats of Germany and France conducting international campaigns in favor of their own particular plans for peace First Demonstrations The first demonstrations of this conflict are likely to take place this week in Geneva London and Brus sels with sessions of the league of nations committee of 13 the gen eral staffs of France Belgium find reat Britain and the Locarno trea ty signatories respectively British sympathies for Ethiopia appeared to be mounting as Italian armies consolidated territory won the Italian posi tion on the northern end of Lake Tana the source of supply for the and the irrigation systems of the AngloEgyptian Sudan and Egypt Italy Pushes Southward At the same time Italian columns n northeastern Ethiopia carried on southward from Quoram advancing 35 kilometers closer to Dessye the next objective for the fascists and ong the general headquarters for the Ethiopian emperor Reports from Italian military headquarters said the fascist forces uniformly victorious along the northern front with Emperor Haile elassies soldiers retreating in dis organized groups toward Addis Ababa The Ethiopian capital was likened n appearance to a dead city with only about 10 per cent of its citizens within the city limits Saturdays raid by five Italian air jlanes which machinegunned the ocal airdrome was responsible They feared a bigger squadron with bombs might be the next to appear iver the mountain horizon Denied Right to Compel Stock Dealer to Testify About Proposed Issue By NATHAN ROBERTSON Associated Press Staff Writer WASHINGTON LT Asserting that any tendency toward compul sory self acusation unlawful searches and seizures and unlaw ful inquisitorial investigations must be halted the supreme court decreed Monday that the securities commission could not compel J Ed ward Jones New York dealer in oil stocks to testify concerning a pro posed issue of securities After handing down this 6 to 3 decision by Justice Sutherland the court deferred for at least one week its final ruling on constitutionality of the Guffey act to regulate the soft coal industry Jones had filed a statement with the SEC for an issue of of securities Later the government is sued a stop order and directed him to testify on the securities He attempted to withdraw the registra tion statement and refused to ap pear under siibpcna Upheld by Court His position was upheld by the court majority with Justices Car dozo Brandeis and Stone dissenting pass on con The court did not stitutionality of the 1933 truth in Securities act which required the registration Approval of the commissions ac tion the majority said must be denied if there were no other reason for denial because like an unlaw ful search for evidence it falls upon the innoentaawBllasUpon the guilty and unjustly confounds the two Citing what it termed the three intolerable abuses of the star chamber the court added that oven theslightest step in the direc tion of curtailingone of these rights must be halted x x x Jest it serve as a precedent for further advances in the same direction or for wrongful invasion of the others Decline fo Interfere There were no other decisions of j major consequence in the brief ses sion The court declined to interfere with lower court rulings that the law bairing payment of obligations in gold does not prohibit the collec tion of the equivalent amount of foreign currency if that alternative method of payments is specified The justices acted on several oth er petitions for review refusing for the most part to entertain them Before turning to argument on other cases the court agreed to pass on constitutionality of the 1933 New York state mortgage morator ium law challenged by Joseph Lo Boy 10 Injured in Mysterious Accident WATERLOO T Kenneth Kneeskern 10 year old son of Mr and Mrs Albert Kneeskern was in a critical condition Monday at St Francis hospital with a skull frac ture suffered in a mysterious acci dent Sunday A boy companion said Kenneth fell from his perch on the back of an automobile as it was driven into a filling station but a police check of the neighborhood failed to verify this The boy was found lying in the street Father Time Dies ST LOUIS Tim 3thy Father Time Dempsey iS widely known for his work among he poor here died of a heart at tack carry Monday HEARING STARTS ON M AND ST L Seven Other Roads Propose to Buy Railway Line for Eight Million MINNEAPOLIS by ae Interstate Commerce commis ion on the plan to purchase the Minneapolis and St Louis railroad y seven other railroads opened ere Monday Under the proposed plan the oad now in receivership would e purchased for approximately 00000 its properties divided among hem and onethird of its 1650 lie main line track abandoned F K Gage Fairfax Minn hairman of the defense committee pposing sale and dismemberment f the railroad is leading the fight retain the road as an entity Waterloo Negro Shot Through Head Police Search for Suspect WATERLOO Ander son 24 Negro was shot in the head with a 38 caliber automatic pistol at a m Monday at the home of Cornelius Ard Negro Police were looking for Ard whom Anderson accused of the shooting The bullet entered Andersons skull on the right side near the top His condi tion is not believed critical He is in Allen Memorial hospital Several hours later police ar rested Gladys Bishop 2n Negro who had a fleshh wound in her loft shoulder apparently made by a bul let She said she did not know how she was wounded She was re ported to be Ards sweetheart ON THE INSIDE DR V A FARRELL Mason City Physician Dies From Hip Injury ON PAGE 5 Governor Hoffman m Attack on His Critics ON PAGE 2 Northwood Hampton Bands Win at Britt ON PAGE 8 Richardson County Soil Plan Chairman ON PAGE 2 porto former owner of a New York City tenement Sustain Iowa Decision The supreme corut refused to in terfere with a lower court decision holding unconstitutional a provision of the 1934 revenue act imposing a processing tax on coconut oil pro duced chiefly in the Philippines In holding the levy invalid Feder al Judge George C Scott of the northern Iowa district court tem porarily had enjoined the govern ment from collecting the tax from the Iowa Soap company of Burling ton Iowa Urging the highest court to re view the controversy without wait ing for the eighth circuit court of appeals to act the department of justice coontended the revised stat utes barred issuance of injunc tion against collection of any feder al tax Use Same Argument It insisted that the tax should be paid and a suit filed Ihen in an ef fort to recover the money from the government This same argument was ad vanced by the government a few weeks ago in a case brought by Louisiana rice millers against pay ment of AAA processing taxes The supreme court ruled that the money impounded in federal courts should be returned to the taxpayers since the AAA had been held un constitutional The coconut oil tax was three cents a pound if produced in the Philippines and five cents if pro duced lsewbererr the district court said Use Philippine Oil Judge Scott held the effect of the act was to increase the use of Phil ippine cocnut oil He added the leg islation in part was intended and calculated to raisg revenue for the benefit of a foreign state and to regulate and limit manufacture within the several states of the United States Tills was not within any power granted by the constitution and in violation of states rights he assert ed The tax collected from the Phil ippine coconut oil He added the leg ment of justice said the Philippines are not a foreign state because they have not yet been granted in dependence The injunction barred payment of taxes for October 1935 and future levies BROOKHART TO RUN FOR SENATE ON GOP TICKET Says Party Cannot Win onOld Deal or New Deal Criticism DES MOINES Sen ator Smith W Brookhart of Wash ington Iowa Monday announced his candidacy for the republican nom ination for Unit ed States senator in the June pri maries The former Iowa senator more recently United States trade adviser to soviet Russia de clared his politi cal intentions issuing a formal TO GET SALARIE Illinois State Employes to Take Action Against Treasurer SPRINGFIELD Employes of two divisions of the state finance department Monday threatened to go to court in an effort to collect their March salaries refused them since last Wednesday by Treasurer John Stelle Charging Stelle and Auditor Ed ward J Barrett were guilty of a wanton act Assistant Finance Director S L Nudelman announced a petition for a writ of mandamus against the two would be filed in Sangampn county circuit court He said every employe in the mo tor fuel tax and purchase and sup plies divisions would be a party to the litigation Nudelman in charge during the absence of Director K L Ames Sunday refused an offer from Stelle to separate his departments pay rolls into two groups of old and new employes Stelle and Barrett con tended the new employes included persons hired for political purposes and since last week have refused to pay workers in code departments under Governor Horner Outlaw Song Claims U S Suicide Victim STURGIS Mich song that Hungary outlawed because it inspired thoughts of suicide appar ently had claimed an American vic tim Monday in 13 year old Floyd Hamilton Jr He hanged himself with a clothes line in the living room of his home and Coroner Willard T Ealch of Three Rivers who pronounced the death a suicide said the boy had a newspaper clipping with the words nf the song Gloomy Sunday in ais shirt pocket BROOKHART statement here on his platform and campaign views He prefaced his statement with a declaration that the republican party can come back in Iowa but not on the basis of the old deal Neither can it come back upon violent criticism of the new deal It must offer candidates and pol icies superior and far in advance of the new deal There must be no equivocation asto the policies and no question as to tnerairfelimiBaUoji of the candidates Sketches His Views An independent candidate for sen ator four years ago after he failed to win the republican senatorial nomination Brookhart in his state ment sketched his views of the present three candidates for the par tys senatorial nomination and con cluded I believe the field is wide open for a candidate with a definite pro ram and I have decided to enter the race in that way For 10 years I served the farm ers the laborers and independent business in the United States senate and if the party had followed me it would be in power today but I had a majority against my ideas in both parties The next senate is certain to be more favorable He referred to the other candi Lester J Dickinson Mayor Edwin Manning of Ottumwa and Guy Linville of Cedar Rapids as three of a kind and which ever one would win the farmers would lose Vote for XeuJ Deal He added that he did not think however that Manning and Linville are tied into anything like the du Pont company Senator Dickinson he asserted voted for most of the new deal He then interviewed the du Fonts and the Liberty league and turned violently against his own action Since then he has developed five beautiful points of glittering gen erality He has also developed some sil ent but effective political action In one congressional district he offered a man to be spent as he pleased if he would become a candi date for congress in the interests of the senator Edwin Mannings platform is for new faces He is a fine looking young man but at that it is doubtful if he is as pretty as the senator They may paint up with different brands of facial cosmetics but un der the skin they belong to the same political philosophy Cedar Kapids Gang The latest entry is Guy Linville a distinguished leader of the Cedar Rapids gang who even surpassed the senator with a brilliant gener ality that neither knows nor prom ises anything Brookharts review of his rivals vas in connection with a question j he propounded as to whether any one now in the field offers a solu tion for two unsolved vital prob farm problem and unem ployment Branding the present soil conser vation law all right he said it still is not a solution of the farm problem He advocated his own plan jnder which dealers would be re quired to pay producers a parity irice for their products This plan le said also would solve the uncm Dloyment problem in part Final CamHog Checks OSKALOOSA Final pay ment cornhog checks totaling OHfi27 arrived here Monday for riis tribution to 1130 Mahaska county 1 farmers i Patman Tries to Sidetrack Tax Program WASHINGTON ist1 Monday sought to sidetrack the tax program Before a house committee near ing the end of public hearings on the tax program Representative Patman D Tex said it was all right as revenue plans go but that the proposed levies were unneces sary while billions of gold remained idle in the treasury Other developments The senate agriculture commit tee modified its request for the names of persons who received benefit payments under the AAA It called for those who received 510000 or more instead of 1000 or more as originally specified Acts on Ordirs The navy disclosed it had acted at the state departments request in sending a destroyer to intercept two sailing vessels suspected of smuggling arms and munitions into Honduras Secretary Dern protested that the bill by Senator Norris R Nebr to establish a Mississippi valley authority would give too much authority to a single agency and result in waste Eastern railroads hinted they would go to court against the pas senger fare reductions ordered by the interstate commerce commis sion if the order is not suspended Big AAA Payments Buckling on their armor for ma jar tax and relief jousts opposing congressional forces found time also Monday to scan a disclosure of big payments made by the AAA for crop Making his first bow to the de mands of Senator Vandenberg R Mich for data on the larger bene fit payments Secretary Wallace re vealed they ranged up to in the case of one Florida sugar corporation Among the larger pajments were to a California hog farm 29398 to a California wheat farm ing concern to a Puerto Rican sugar corporation and 454 to a Florida tobacco concern Wallace disclosed that the largest cotton payment for 1934 went to a Mississippi concern head id by Oscar Johnston AAA official Kiip Relief Handling With the house appropriations committee preparing to begin this week its hearings on the presidents request for 51500000000 for relief for nest year republicans in both chambers hammered at the handling of the present fund The republican congressional cam paign committee charged that relief money is being used to help buy the election and Senator Steiwer R Ore said democrats are block ng a senatorial inquiry into po itical machinations and misuse of relief money There was little legislative busi ness in congress Monday The sen ate set apart the most of the the impeachment rial of Federal Judge Halsted L Ritter of Florida accused of grant ngan excessive receivership fee to a former law partner and other of fenses The house devoted itself to minor matters Mew Zeppelin Starts Trip Back to Germany RIO DE JANEIRO new erman zeppelin Hindenburg which completed its first voyage from Europe to South America Saturday started back to Friederichshafen errnany at 7 a m Monday Elected Mayor w s WILCOX W S Wilcox was elected may or nt the organization meeting of Hie new Mason Citv council Mon day STORY ON PAGE SPRING WINTER WAGING BATTLE Sun Shines Again But Iowa Weatherman Forecasts More Cold DES MOINES con tinued wrestling with winter for its rightful season Monday but with out much success The gun broke through the clouds over most of the state but the weatherman forecast unsettled con ditions with light snow probable in tie northeast portion and colder temperatures Tuesday Snow ranging up to four inches at Knoxville and three inches at Os kaloosa fell over the weekend in the southeast portion of the state Weekend temperatures also were below freezing the min imum being 12 above at Alta Car roll Forest City and Iowa Falls The highest weekend temperature was 64 at Clarinda Minimum temperatures forecast for Monday night were 30 in the rorth half of the state IS in the southwest and 20 in the southeast Its still winterish the weather man said for temperatures are av eraging 10 degrees and more below normal Britain Asks Study of Ethiopian Charge of Use of Poison Gas LONDON Eden oreign secretary told the house of commons Monday that Great Brit ain was making urgent representa ions at Geneva for the immediate discussion by the league of nations of Ethiopian charges that Italy is using poison gas against noncom lafants and bombing open towns HURT AS STORMS SWEEP THROUGH SOUTH Hundreds Homeless and Property Damage Up in Millions ATLANTA than 200 known dead 1000 injured and hun dreds homeless were listed Monday in the toll of tornadoes and storm bred fires which terrorized com munities in half a dozen southern states Relief authorities estimated prop erty damage would run from to in the cities worst affected Tupelo Miss and Gainesville Ga Five men perished in a hardware company store fire at Gainesville in the wake of a tornado which struck soon after the opening of business establishments at that north Georgia mill center White persons predominated among the victims However a large part of the Negro section of Gainesville was leveled Fires Break Out Fires broke out both at Gaines ville and Tupelo Rain helped fire men to quench the blazing struc tures in the Mississippi city Relief workers said the death toll might mount appreciably as debris was removed At Gainesville it was feared the loss might rival that of a tornado which killed 104 persons there June 1 1903 The tornadoes were the souths worst wind storms since a five state CALLED TO HELP Mrs Mabel Quintard execu tive secretary of the Cerro Gor do county Red Cross chapter Monday received a call to help in the flood areas of the lower Mississippi valley The call was received from James Power as sistant to the manager of the midwest area in St Louis Mrs Quintard served the flood strick en area in the vicinity of Ox ford Nebr last year SHOP EARLY More Shopping Days Until EASTER FORECAST IOWA Mostly unsettled Mon day night and Tuesday possibly liftht snow in northeast portion Monday night continued cold with colder Tuesday MINNESOTA Partly clnmly to cloudy Monday night and Tues day light snow early Monday night in extreme southeast cold er in west and north moderate rnlri wavp in northwest Monday night colder Tuesday in south and eastcent nil portions IN MASON CITY GlobeGazette weather figures for 24 hour period ending at 8 oclock Monday morning Maximum Sunday 34 Minimum in Night 1 At 8 A M Monday Figures for 21 hour period ending at 8 oclock Sunday morning Maximum Saturday SI Minimum in Night R At 8 A M Sunday 2 California would call it unusual remaining on the ground for four days in the month of April Sunday nights minimum fell only 1 degree short of the April record set on the night of April 2 Monday Old Sol was on fulltimo duty and the wind hail shifted into the southwest Normally this would moan a decided wnrming up But this isnt a normal April twister killed 370 persons in March 1932 and carried the 1936 deaths to nearly 250 Physicians and nurses were rushed to the stricken towns by the Red Cross State and national agencies united to relieve the suf fering of the injured and the home ess A lengthening death roll listed these figures Tupelo Miss 124 Gainesville Ga 48 Auburn Miss area 7 Elkwood Ala 3 Anderson S Car 1 Booneville Miss 4 Kcd Bay Ala 5 Coffeyville Miss 34 Columbia Tcnn area 6 Fayetlevllle Tenn 1 Residents of Gainesville said 100 persons may have been killed there There was no confirmation of ru mors of 1000 dead Red Cross headquarters in Wash ington heard that 20 were killed Twelve physicians and 20 nurses were ordered to the stricken manu facturing center of 8000 from Athens Ga Red Cross sources also announced a report that between 100 and 175 persons were killed in the Tupelo disaster Field workers were sent to both cities to give aid Toll May Be Heavy G C Reed manager of the Gainesville Telephone company said the death toll may be heavy Business houses about the town square were damaged badly The twister struck at Gaines ville at a m about 12 hours after other storms ripped from Ar kansas fo Tennessee Tornadoes last Thursday and Fri day killed 43 persons principally in Cordele Ga and Greensboro N Car and did pioporty damage es timated at 53000000 Seventeen wore killed previously this year in southern windstorms The storm centered its fury on Tupelo little TV A city of 10000 the first town to utilize Muscle Shoals power Strikes Arkansas First The storm first struck La Crcsse Ark then roared east into Tupelo i in northeast Mississippi Suburban Willis Heights suffered worst Booneville Miss was next to be struck From there the storm ruphod northeasterly into Rod Bay Ala then veered into the Armour Harlan Minos and Cross Bridge vil lages in the Tennessee hills near Columbia J P Nanny mayor of TupoK said dead nnrl injnierj woro hoiur nulled from the wreckage1 f homes for hours and ii was I ;