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Mason City Globe-Gazette (Newspaper) - April 7, 1934, Mason City, Iowa DAILY PAPER for the Home SSi HOME EDITION THE NEWSPAPER THAT BIAKES ALL NORTH IOWANS NEIGHBORS VOL XL FIVE CENTS A COPY ASSOCIATED PKESS LEASED WIHB SERVICE MASON CITY IOWA SATURDAY APRIL 7 1934 THIS PAPEl CONSISTS OF TWO SECTIONS SECTION ONE NO 155 TaxDemand Not Likely Persident Expected to Let Veterans Issue Drop BUSINESS RESTRICTIONS FEARED By HERBERT VLCMMEB April 7 One fact should I 1 be kept in mind in all specula tion on w h a t President Roose velt may d o about congress overriding his veto when he re turns from his vacation cruise in southern wa ters It is that in his entire politi cal career he has shown himself to be a concili ator rather than a disciplinarian or one intent on revenge His is the genial and affable way He may crack the whip at times but the act is invariably accompan ied by his famous smile and good humor The suggestion made by Byrns of Tennessee democratic leader ot the house that he may ask addi tional taxes to cover the 000 loss to the treasury when con gress overrode his veto should be considered with this personal trait of Mr Roosevelt in mind Situation Shifted It is true that the president made such a statement to members of congress last June when his econ omy act was threatened by in creased allowance to veterans Democratic leaders of the house were called to the other end of Pennsylvania avenue and told in unmistakable language that if such increases remained in the bill con gress must levy additional taxes to New Headaches for Taxpayers Brewed in Senate INSULL TO BEGIN RETURN TRIP TO US NEXT WEEK Cannot Appeal Rules Attorney General of Turkey DR WIRT TO APPEAR AT WASHINGTON QUIZ WASHINGTON April pay for them The present situation hoxvever jg not aoalagous to that which pre vailed a year ago Then the legisla tion in question still was in a delio erative stage Now action has been completed Last June when the president made his suggestion of new taxes the house bad power to save the economy bill from inroads made by the senate Now both house and senate have spoken and theres nothing further anyone about changing the law can do Only punitive measures are left to the president and they have never been to his liking Risk another Defeat What if he should decide to go to the country and demand that new taxes be levied to make up for losses incurred by defeat of his veto Undoubtedly he could make it embarrassing for those members of congress who deserted him if he so chose But why sholud he care to risk another defeat at the hands of congress Proposals for increased taxes al ways bring groans and protests from constituents This in election year when the entire house and onethird of the senate must run Members of congress are loath to increase taxes at such times what ever be the reason Such a proposal some observers hold might lay the president open for an even more decisive defeat at the hands of congress than he suf fered on his veto Samuel Insull Chicago fugitive is to start back to the United States from Turkey next week to face trial on charges resulting from the col lapse of his giant utilities organiza tion The state department said today Burton Y Berry American vice con sul at Istanbul had been designated by PresidentRoosevelt to take cus tody of Insull who has fled from the grip of United States officers for more than a year A warrant empowering Berry to serve in that capacity has been signed by President Roosevelt and cabled to Turkish authorities Ex actly when the trip will start was not announced but it was expected icre to be early in the week No Appeal Possible ISTANBUL April 7 Bey attorney general of Turkey annonunced today that no appeal was possible against his govern ments decision to hand over Sam uel Insull Sr to American au thorities Kenan Beys ruling means the former utilities operator of Chi cagoVapparentlyhas lost his Jast legal battle against a return to the United States where federal war rants charging him with mail fraud and fraudulent bankruptcy await him The United States embassy did not indicate what its next step would be but it was believed Insull would be taken into American cus tody on papers to be delivered through the embassy It was indicated that Insull would leave Istanbul next week in the custody of United States authori After considerable apprehension about the willingness of Dr William A Wirt educator of Gary Ind to appear soon before a house committee ho accepted the subpoena to testify on his accusations that certain brain trustcrs had said they were plotting revolution The five members of the house of representa tives named to hear Wirts charges Include three democrats and two republicans Left to right Representative William W Arnold democrat Illinois John 3 OConnor democrat New York Alfred L Bulwinkle chairman democrat North Carolina Frederick Lehlbacb republican New Jersey Harold McGugin republican Kansas Associated Press photos ties Must Be Extradited Previously until the attorneygen erals ruling Insulls legal represen tatives here had appealed against a penal court decision that Insull must be extradited to the United States By Kenan Beys ruling this ap peal is thrown out automotically Apparently the ruling makes it impossible for the aged fugitives attorne3S to present what they had described as an ironclad argument for an appeal The fugitive remained secluded in his room at the house of deten tion attended by his 12 cents a day valet Guide Book Editor Dies LONDON April 7 Fullarton Murihead editor of Baedekers famous guide books for 35 years died today at the age of 81 Wea FORECAST IOWA Fair slightly warmer in west and north central por tions Saturday night Sunday partly cloudy and warmer MINNESOTA I n c r e asing cloudiness probably showers in cast and north portions Sunday and in northwest portion late Saturday night warmer in west and onrth portions Saturday night colder in west portion Sunday LOCAL STATISTICS GlobeGazette weather figures for 24 hour period ending at Oclock Saturday morning Maximum Friday 54 Minimum in Night 36 At 8 A M Saturday 53 WEEKLY FORECAST CHICAGO April 7 outlook for the period April 9 to 14 For the upper Mississippi and lower Missouri valleys Showers about middle and at beginning of week over south portions tempera tures near normal For the northern and central Sreat fair ex cept showers about middle of week and possibly over extreme south portion at beginning temper atures mostly near normal TWO VILLAGES IN NORWAY FLOODED Crag Crashes Into Sea asj Waves Rush in More Than 50 Drown OSLO April 7 worst disaster Norway has experienced in several decades occurred today when two little west coast fishing villages were overwhelmed by huge waves and a crag overhanging the fjord on which they lay crashed into the sea More than 50 persons were drowned among them 20 children as waves rushed over the villages of Tajfjord and Fjoraa and swept a half mile inland beating down everything in their path The helpless villagers were taken unawares as they were asleep in their homes which were mainly of timber Most of the houses were carried off bodily NRA Methods in Pennsylvania Hit by Mrs Pinchot Wife of Governor Declares Johnson Has Taken Side of Big Business WASHINGTON April 7 a general assault on NRA adminis tration in Pennsylvania Mrs Gif ford Pinchot today told the senate labor committee that Hugh S John son had thrown down his arms in the interest of big business A militant supporter of labor the red haired wife of the governor of Pennsylvania urged passage of the Wagner labor bill to outlaw employ er dominated company unions She had kind words for the pur pose of the national industrial re covery act in general but she de nounced the way it was administer ed in her state Ive heard of a Chinese general throwing down his arms she as serted but not an American gen eral General Johnson eager to build up the power and wealth of Wall Street she added has done so at the expense of the worker and con sumer US Spends More Than 5 Billions in 9 Months TAX BILL LIKELY TO REACH TOTAL OF 480 MILLIONS rassage Monday Seen as Possible With Both Houses in Recess WASHINGTON April 7 senate brewed new headaches for Lhe taxpayers today The tax bill which was a S25S 000000 measure as it came from the house already is up to a pro posed in the senate with a strong likelihood it will reach before it is passed An amendment by Senator Cou jns RMich that would add an estimated and one by Senator LaFollette RWis that would be good for perhaps 000 more were given the approval today of Senator Harrison DMiss who is in charge of the legislation Monday may sec a vote Both senate and house were in recess to dav Boosted to The bill as received from the house was boosted to in the senate finance committee be fore reaching the senate floor Senator Couzens proposal is for a 10 per cent superlevy to be ef fective for one year only The 10 per cent would be figured on the tax itself a person whose tax came to for example adding 10 per cent of taat and paying The LaFollette amendment would boost the super estate or inheri tance levies beyond the finance HELD IN STABBING ASCENCION AGU1KRE Deficit Only Slightly More Than at Same Time Last Year WASHINGTON April 7 Federal spending in the fiscal year which ends June 30 today passed On April 5 the latest date avail able the government had spent 55 005462333 as compared vith 53 333252776 last year The deficit that day stood at 52 655107341 as compared with 52 287945312 a year ago Of the outlay 2 018 950 000 went to routine expen ditures to emergency recovery costs The public debt today was listed by the treasury at 526179042000 as compared with a year ago In Nine Months Village Near Warsaw Razed by Fire With Loss of Five Lives WARSAW April 7 wind driven fire destroyed the East Gali cian village of Denysow with a loss of five lives it was reported here today Many persons were seriously in jured and 168 farm houses were burned Damage is estimated at approx imately 600000 Nine Killed Eight Seriously Hurt in Brazil Train Wreck RIO DE JANEIRO April 7 Nine persons were killed eight were seriously injured any many suffered slight hurts today when the engine and three coaches of an express train rolled off the tracks on the Mantiqueira mountains 100 miles north of here The five billion spent in a little over nine months of the 1934 fiscal year was nearly the total of entire spending in the 1932 and 1933 fiscal years In 1932 government outlays were S5154000000 and the next year Government income for the fiscal year to date was as compared with last ar Emergency spending showed a spurt in the early days of April In five days it came to as year REQUIRE PROOF OF COMPLIANCE NRA Order to Bidders for Government Business Is Upheld WASHINGTON April 7 Validity of an executive order re quiring certificates of NRA code compliance from bidders for govern ment business was upheld today by J R McCarl the comptroller gen eral The comptroller generals decis ion will compel all biders for gov ernment contracts to make such certificates which were held not necessary at the time of the recov ery administrations clash with Henry Ford Burden ofProof In the Ford casa McCarl held the government should bear the burden of proof of code violations but that once violations were established damages could be collected The new ruling makes statements of compliance a prerequisite to bid ding The ruling was given to Post master General Farley regarding a gasoline contract the lone bidder TRAINING ST WILL BE OPENED State Liquor Employes to Get Instruction at Des Moines DES MOINES April 7 Des Moines liquor store the first which will be opened in the state is to be a training school for per sonnel of other stores the state com mission announced today Employes are to be called to Des Moines for an instruction period varying from one to two weeks Harold M Cooper chairman said Members of the commission today were considering sites for stores in other cities after having selected the Mulberry building here for the local distributing unit The building was formerly headquarters for a motor company operated by Gov Clyde Herring compared with only in for which had his certificate the first five days of March Emergency Belief The largest emergency outlays in April were for emer gency relief 523933000 for civil works 523735000 for the RFC and 511217000 for railroad loans by the public works administration While the civil works closed oper ations last month the clearance of checks already issued will continue in proper shape Dealers Not Eligible Under the comptroller generals ruling Ford dealers will not be eli gible for government business un less the Ford Motor company certi fies its compliance with the auto mobile code The Ford company has not here tofore filed such a certificate and although represented to be and un derstood by the government to be to come out the treasury for some i operating in full compliance with the days New Wage Scale for Iowa Coal Miners Is Proposed at Meeting DES MOINES April 7 new wage scale calling for increases in pay to Iowa coal miners of from 5 to 40 per cent was introduced by 200 Iowa union miners meeting here The demands were contained in a resolution announced by George Cooper chairman of the resolutions committee of the organization Salient points in the new scale proposed by the union workers are a seven hour day five day week with basic pay of So a day The present scale is 5470 a day but only 15 per cent of the miners work on i a day wage basis it was pointed out code has not displayed the blue eagle of NRA Big John to Be Tried for Murder Mexican Bound Over to Grand Jury in Stabbing Case Ascencion Big John Aguirre 10 Mexican who resided at No 19 Le hijrh Row was held without bail in the county jail Saturday charged with flrst degree murder ill cpnnec CHAMBER NOTES RECOVERY SIGNS ON EVERY SIDE Group Says More Men Going to Work at Better Wages WASHINGTON April 7 Chamber Commerce of the United States said today that on every hatul there appear encouraging signs of further business recovery but that the advance is threat ened by some of the pending legis lative proposals More men are being put to work at better wages the organization said in its fortnightly summary of national business affairs Firms anil corporations long in the red are either over the line or getting closer to the black Some of the recovery legislation enacted in the last year has had a wholesome effect in laying the basin for business recovery and in i strengthening the nations brankinj structure Kcstrictions FiMireii But attention is now centering on the need of business for oppor tunity to continue its forward move ment unhampered by new and un necessary restrictions Certain leg islation some of it on the statute books iind some now pending HI congress threatens this advance i Proopsed labor legislation pro I duces much uncertainty The Wag j ner labor disputes bill which would sJabbmf Woman Fatally Hurt in Automobile Crash LIME SPRINGS April 7 Mrs Ed Capper 68 Chester was fatally injured in an automobile ac cident near here Her husband a granddaughter and Howard Stock ham of Chester driver of the other car figuring in the accident suf fered minor injuries committee rates and cut down ex isting exemptions Certain of Approval Both proposals are certain of sen ate approval The present normal income provi sions fix a rate of 4 per cent on the first 54000 of net income and 8 per cent on the excess The house and senate bills strike make it a flat 4 per cent but with surtaxes on amounts above 54000 ranging up to 59 per cent By beginning the surtaxes at the ower income figure instead of at 56000 as at present and providing higher rates and lowering the ex emptions for income from dividends and partially taxexempt interest the pending bill would make up for the loss in revenue due to elimina tion of the 8 per cent normal rate now in effect Would Extend Exemptions Persons with small incomes would benefit because the personal ex emptions now allowed in payment of normal tax would be extended to the surtax schedule This is not permitted now In addition a credit of 10 per cent on all earned income up to 520000 would be allowed under the senate bill as against 58000 in the house measure The LaFollette proposal would apply only to the super estate tax schedule as differentiated from the normal estate tax The Wisconsin senator has agreed to modify his proposal to make the 1 per cent super tax start on estimates of 540 000 instead of 525000 as originally planned and 550000 in existing law That tax would graduate up to 60 per cent on estates of over 510 000000 as against 45 per cent in existing law Reject Murphy Plan The senate Friday rejected 42 to 36 a proposal for sharp increases in taxation on exceptional capital net gains where they occur fre quently during a five year period Defeat of the amendment offered by Senator Murphy D Iowa in the revenue bill the less drastic fi nance committee provision of capital gains and losses by individuals The committee plan disallows capital losses to be used to reduce ordinary income and taxes gains in full or in part in proportion to the time for which the property has been held It is designed to tax speculative gains more severely than at present day evening of John C Chabez 40 year old Mexican who resided at No 13 Lehigh Row John waived preliminary hearing before Justice of Peace M C Coughlon late Friday afternoon and was bound to the grand jury The stabbing followed an argument over a window alleged to have been worth about 20 cents which Big John claimed was broken by the Chabez children with a slingshot Birds Nest Causes Chicago Gas Death CHICAGO April 7 Mrs Fannie Grossman 52 had been found dead from gas police concluded that a birds nest being built in a flue had caused the fumes to back up into a bathroom with fatal results Kidnaped Police Chief Whos Companion Was Slain by Outlaw Freed FORT SCOTT Kans April 7 fP Barrow phantom deperado of the southwest fled before a growing arm of police today after releasing a kidnaped police chief whose companion he had murdered i Scores of officers went into action along the KansasMissouri border after the desperado and his two coropions released Percy Boyd Com merce Okla chief of police early today They had held him prisoner for more than 14 hours Constable Killed They abducted him near Com merce vesterday after Barrow had shot and killed Cal Campbell 63 Miami Okla constable Boyd and Campbell had sought to investigate actions of two men and a woman whose motor car was mired in a rnudhole Barrow shot the constable with a machine gun The trio then forced Boyd into their car and sped away Boyd who suffered a scalp wound said lie was positive as to the identi fication of Barrow and Bonnie Parker the desperados cigar smok companiou He expressed the belief the other member of the trio a tall sandy haired man was Ray mond Hamilton alleged associate of Barrow Drove Into Kansas The killers drove into Kansas soon after the Commerce shooting After spending most of the afternoon on side roads between here and Pitts burg Kans they entered Fort Scott where they purchased a news paper giving an account of the mur der It was then that Barrow learned he had killed Campbell The officer was released seven miles south of here after Barrow had made another trip into the city in an unsuccessful attempt to steal a motor car Barrow is accused of slaying no less than half a dozen penes officers in Missouri Oklahoma and Hamilton recently escaped from a Texas farm where he was serving do away with company labor or ganization and impose outside un ions on employers offers a threat of strikes and other labor difficul ties for lui employment reserves proposing a tax on the countrys payrolls of a billion dollars a Vear would put an impossible burden upon industry The Connery bill making a 30 hour week mandatory for all industry would be detcrimental to recovery Uusiness Needs Capital Business needs yet the securities act hastily passed lasi year to protect investors has dried up capital markets The stock exchange bill designed to rebulate exchanges would if en acted in its present form open the door to further governmental in terference with business firms whose securities are listed Taxation legislation now pend ing contains provisions such as the reimposition of the capital stock and excess profits taxes which would adversely affect business ex pansion Nudists Intend to Go About Removal of Clothes Slowlv CHICAGO April 7 the spring a nudists fancy turns to what In this of 70 nudists near Valparaiso decision has been reached to go about the disrobing gradually wearing shorts and brassieres at first and then discarding these as the farmers in the vicinity become used to the idea Map of Russia Divorcee Wants Her Former Husband to Keep His Easy Chair OAKLAND Cal April 7 Awarded a divorce and all the fam ily furniture Mrs Frances M Mc Cormick thought her former hus band Ray should be allowed to keep the easy chair As she ex plained to court He was always more interested in easy chairs than in going out to find work The i court let McCormick keep the chair 1 263 years for murder and robbery i Everybody seems to want to know about the country that was once Russia and an unprecedented de mand for it leads us to renew the effor of the Soviet Union map showing Russia and Siberia as they are today It not only gives complete geographic information the plates having been corrected to date of rublication but it carries a wealth of commercial and other data to gether with official statements of the soviet system of government laws on marriage and divorce and attitude toward religion and the church Enclose 30 cents in coin to cover cost and handling Use coupon Mason City GlobeGazette Information Htircau Fi crie 1 IlHskin Director Washington D C I inclv10 cents in coin care fully wrapped for the booklet Presidents and Their Wives City Strtc Mail to Washington D C ;