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Mason City Globe-Gazette (Newspaper) - December 19, 1936, Mason City, Iowa NORTH IOWAS DAILY PAPER EDITED FOR THE HOME THE NEWSPAPER THAT MAKES ALL NORTH IOWANS NEIGHBORS HOME EDITION VOL XLUI FIVE CENiE A COPY ASSOCIATED WtESS LEASED WlKE MASON CITY IOWA SATURDAY DECEMBER 19 1936 THIS PAPER CONSISTS OF TWO SECTIONS SECTION ONE NO 64 PROBING RAILS Lowenthal Is Responsible for Inquirys Depth By CHARLES P STEWART A S H I N GTON CPA Sen ator Burton K Wheelers in vestigation of A m e r i c as t r a importation systems appar ently is d e s tined to be the biggest c o n gressional in quiry in t h e countrys h i s tory It s the Mon tana senators quiz in the sense that he initiated it as h a i rman of the upper congressional chambers interstate commerce committee though a subcommittee of which Wheeler also is chairman is doing the actual probing The inquisition undoubtedly originally was suggested however by Max Lowenthal Ferdinand Pecoras assistant investigator in connection with the inquiry which the senates banking and currency committee conducted two years ago into American high financier ing That was the nations most Jormidable probe up to the time that congress launched it it seems likely to look like small po tatoes in retrospect in comparison with the present one It already has unearthed start ling means of law evasion by ma nipulators of the Van Swcnngen rail properties Lowenthals Case Lowenthal thus far has not bulked as large in the transporta tion investigation as Pecora did during the banking The late Sherman Duncan U Fletcher was chairman of the lat ter He gave a free hand to Pecora and supported him loyally but had not much to say on his own account Senator Wheeler a more aggressive personality likes to do his own questioning which over shadows Lowenthal somewhat Nevertheless Lowenthal dug up the case While haloing Pecora he saw a relationship between finan ciering and transportation and S the inspiration of inquiry Wheeler a Draroatizer This is not a reflection on Wheeler The Montanan has a sense of better than the late Senator Fletchers perhaps better than Pecoras and possibly better than that of Lowenthal who to be sure hasnt had much oppor tunity to prove himself except an adviser Anyway it was Wheeler whf chose tn make a start with an in quisition into the fashion in which George A Ball Muncie multimillionaire manufacturer of fruit jars managed to gain con trol for a measly or so of which merely was in of the Van Swcringens railroad and mis cellaneous empire An Unpaid Debt This was spectacular enough to attract the publics attention The transportation history into which the investigating committee must delve runs into the past for about a century For example Charley Kelly of the staff of the railroad brother hoods weekly organ an expert of the first magnitude mentions rollins stock used at the time of the Mexican war which j never yet has been paid tor There j have been fundings of ness and refundings and refund ings but no final payment In the meantime presumably the travel ing public has been required to pay fares to meet this load of mounting obligations A Timely Deal But retrogressing so far is in finitely tiresome and complicated The dickering of the recently deceased Van Sweringens with George A Ball George A Tom linson and the Morgans is up to date and snappy One wonders how the Morgans with a stranglehold on 000 worth of properties allowed BaU and Tomlinson as the Mid america corporation to scoop in the whole pot for or so It would have been a mistake to start with the Mexican war the Van Sweringens are so much more timely A Lively Start George A Ball the heir to the Van Sweringer three billions for an actual cash outlay as Senator Wheeler expressed it of two first class is referred to in Washington as having bought a pig in a poke and found himself in possession of a huge herd of swine and an infinity of young piglets The 74 year old multimillion aire who has remained obscure up to the present time admits that he had no notion what he was buying Its a lively start on Senator Wheelers investigation Max Lowenthal instigated it Admits Minnesota Thefts LE MARS Thom as 38 arrested here has admitted thefts near Aitken and will be returned to Minnesota to lace charges Plymouth county of ficers said NANKING THREATENS C Wheeler Says Rail Probe to Last for Months COMMITTEE TO RESUME STUDY ON JANUARY 6 I See Request for New Laws Wiping Out Holding j Companies WASHINGTON ing public hearings for the holi days senate investigators began i Saturday to sift through what j they termed a bewilderingly complex mass of evidence har vested during their two week in quiry into railway financing Chairman Wheeler iof the investigating committee said many months of hearings might be necessary before he can make a full perhaps with a request for new laws abolishing railroad holding companies On Jan 6 the committee will turn again he said to its study of Americas largest transportation system the sprawling web of rail ways bus lines coal pits and in dustries woven by the late Van Sweringen brothers of Cleveland A Closing Session Testimony from two partners of J P Morgan and thur M Anderson and George the famous bank ing house would have lit a Van Sweringen railroad go bust dur ing the depths of the depression if it had not received government loans marked the committees closing session Friday The road in question was the Missouri Pacific which borrowed more than from the Reconstruction Finance corpora tion before it finally went into bankruptcy in 1933 Of this sum the partners testi fied was used to pay off earlier loans to the Missouri Pacific from a Morgan banking syndicate Obligations Anderson said his firm had known of certain obligations of the Missouri Pacific which investi gators contended were concealed from the RFC Wheeler put in evidence records from the interstate commerce commission indicating that it had been reluctant to approve the RFC loans because it felt there was no need to bail out the private banks Testimony of the Morgan part ners investigators said completed the first chapter in their study of the Van Sweringen system Salient facts thus far disclosed by the in quiry include Control Once Concentrated 1 Control of the empire once was concentrated through an intricate system of holding worth of stock 2 York bankers got sick j of putting up money to carry the system through the depression and finally sold the controlling se curities at auction for about the price of two good 3 These stocks and bonds were bought by George A Ball graymustached Indiana fruit jar maker who said he put up the money because he wanted to help O P Van Sweringen Charge Books Falsified 4 Through an option agreement Ball permitted Van Sweringen to vote the holding company securi ties and maintain command of his 249 separate corporations with out putting up a nickel of his own 5 Since Van Sweringens death active control of these enterprises has rested in Balls hands 6 Charges that the Missouri Pacific books had been falsified were made by Interstate Com merce Commissioner Joseph Easl man but denied by Missouri Pa cific officials Cheer Fund Money Goes to Neediest Previously Reported Composing Room Employes A Friend II Chapter Sisterhood BT Kensington Club Crescent Club Jctferjon A Friend Club Will luM Kite Club L J G International Association of Ma ehinisls Lodtc No MonroeWashinfton History Club New Total Receipts Needed to Reach Goal 1FFERENT from Scrooge Mason Cityans do not need to be taken on a tour of sad ness to make them open their hearts at Christ mas time Con tributions to the Christmas Cheer fund are ample evidence of that and many less fortunate than the givers will have a really merry Christmas be cause of their generosity Who does the Christmas cheer fund help Administered by Mrs Mabel Blaise of the Social Wel fare League its funds are for the neediest In one Mason City family there are 9 children the oldest 12 years and the youngest a 6 months old baby The father has had PWA employment but has it no longer CAN IT BE DONE The final sprint is on Six hundred dollars was the goal set for this stage in the cam paign It wasnt quite reached Can the objective be reached in a Jinal fourday spurt Thats up to YOU Send your contribution to the Christ inas Cheer Fund GlobeGa zette Mason City Iowa LOOK INSIDE FOR WAIXY GADDIS Team Travels Proud Father to Join Later ON SPORTS PAGE Driver Is Held After Accident ONSTATE TAGE Legions Fight Not Over Miles States ON PAGE 12 Landon Will Call on President Roosevelt WASHINGTON All M Landon of Kansas republican presidential candidate in the re cent election has been invited to visit the white house Monday morning Landon will make a brief call on President Roosevelt while in Washington to attend the Gridiron club dinner that night Physician Is Appointed HAHTFOKD f Dr Martha OMalley of Dubuque Iowa has been appointed public health physician bureau of child hygiene here effective Jan 15 and the very slim income afford ed by it hardly provided for his family while it was being earned Now there is nothing How would you like to be say the middle child in that family if there were no cheer fund Christmas is for everyone not just for the children One elderly couple lining on a pitifully small allowance is going to be glad dened to Veceive a quilt and a new broom from the Cheer fund Santa Claus There are three children in Ma son City who have decided that they would just as soon have ov eralls to wear to school as a sled A sled would be fun wouldnt it But when you need clothing youre glad to get that too In one family of 10 children Santa Claus lias arrived already He came to bring shoes so the children could finish out this week of school Shoes were the need of another boy and he found himself a little job to earn the money for them His mother re cently married a man with a large family and some how no one has cared very much about him lately He saved his earn ings but before he had enough the money had to go for some other need in the fam i 1 y However through the Christmas cheer fund hell have the shoes he earned There are many other cases like this and a little Christmas helps a lot You dont have to put on a red suit and a white beard to play Santa Claus Join the goodfellows of the Christmas cheer fund and bring happiness to your neigh bors A contribution especially pleas ing to the director of this solicita tion was received Saturday from the GlobeGazettes own compos ing room and proof desk 29 of them giving a total of A gift similarly welcome was re ceived from the local unit of the union Again the way is shown for other groups A first requirement is leadership by some individual in passing the Rcmsen Pastor Dies SI JOSEPH JP The Rev Herman S Schleier 62 pastor of the Sacred Heart Catholic church at Rcmsen Iowa died here I GENERALLY FAIR WEEKEND SEEN Colder Weather Predicted Sunday for West and North Iowa DES MOINES generally fair weekend the weatherman said Friday is in prospect for Iowa although colder weather is due Sunday in west and North Iowa after a sharp rise in temper atures Saturday The weekend started off fair over most of the state with tem peratures about normal The low reported early Saturday was 14 at Charles City the high Friday 34 at Keokak Minimum temperatures forecast for Saturday night were 20 in the northwest section 25 in the north cast 30 in the southwest and 33 in the southeast Bettendorf Woman Dies After Running Into Side of Truck BETTENDORF Oscar Swanson 65 of Bettendorf died in a Davenport hospital of injuries inflicted when she ran into the side of an oil truck Friday after noon George Lund driver of the truck told authorities that the wo man ran into the side of his ma chine at a street intersection ap parently mistaking it for a bus An inquest will be held tonight DAYS LEFT BUY CHRISTMAS SEALS POPE CALLS OFF HIS CHRISTMAS EVE AUDIENCES Speculate on Successor as Pius XI Continues to Gain Slowly VATICAN CITY JP Pope Pius reported recovering from partial paralysis of his lower legs Saturday canceled his usual Christmas eve audience with the college of cardinals and the papal court The 79 year old holy father re luctantly ordered invitations is sued Friday recalled upon the Ad vice of his physicians prelates said Informed sources said the pon tiff was impressed by the fact that every unusual exertion during the last few days had been followed by a period of weakness To Call Individually Instead of receiving the cardi dals the pope will see them indi vidually during the next few days in his sickroom Again Friday night doctors kept a constant vigil over the pope nearing the close of his eightieth year to quiet his sleep when shortness of breath caused him to gasp and stir in his bed Within and outside the Vatican Catholics speculated over the pontiffs successor prelates in the holy see disclosed that Cardinal Pacelli papal secretary of hadtaken over tempor ary direction of ecclesiastical af Gains More Rest The realization grew that Pope Pius might never recover com pletely He passed a reasonably calm night gaining much more rest than the night before but reliable reports said he had not slept soundly for several nights His physicians were anxious that he be kept from aggravating thecongested blood condition which forced him to bed two weeks ago in great pain from legs so swollen they were partly par alyzed Diminishes With Effort His condition it was reported authoritatively had become os resistance contin uing to increase when he is re poseful but diminishing with ef fort and activity It was disclosed the holy father had been given food in small quantities at two hour intervals for the past two days because high blood pressure hampered his breathing and made it inadvisable for him to eat more heartily Since modern custom dictates that a new pope be chosen from among the cardinals theoretically there are 66 possible heirs to the papacy Actually however there are few from whom the selection would be made Three Most Likely Advanced age birth outside Italy and diverse other barriers to the highest office in Roman Catholicism dim whatever hopes most may have Three princes of the church are regarded now by informed Vati can sources as most likely succes sors Eugenio Pacelli secretary of state Elia Dalla Costa archbishop of Florence Luigi Lavitrano archbishop of Palermo Although Pacelli is the most prominent of the cardinals by vir tue of his office Vatican prelates said his name might be overlooked when a new pope is chosen Fear German Leanings His tenure as nunzio in Ger many and his negotiation of con cordats with Prussia Bavaria and Germany it was said might cre ate opposition among the seven French cardinals who might fear he had German leanings It was pointed out moreover that a papal secretary of state seldom is chosen pope famous prophecies of St Malachy on the selection of the popes would x indicate a successor to Pius be Pastor An pastor or bishop Both Dalla Costa and Lavitrano are bishops administering their dioceses and informed church sources noted Pius XI of Imola was the fifth successive pope chosen from among such cardi nals The roster of prospective popes is cut almost in half at the start because of the remote chance any of 29 foreignersjnight have to be chosen Requirements Are Severe Of the 37 Italians who remain a prelate well informed pn the Herring House Members Confer on Proposed Bill Kraschel Is Scheduled Meet With Senators on Sunday STORY ON PAGE 2 DES MOINES Clyde L Herring conferred Saturday with a group of house members on the proposed state unemployment insurance act and Lieut Gov Neis G Kraschel was scheduled to meet with a group of senators Sunday These conferences were to lay the groundwork for the special session of the legislature which will be opened at 10 a Mon day Governor Herring said he ex pected to complete his message to the assembly late Saturday and that the subcommittee drafting the unemployment insurance bill probably would clean up the odds and ends left in time so that a complete bill can be printed by Sunday morning Invited to Conference Invited to the governors con ference Saturday were B B Hickenlooper Cedar Rapids C L Rice D Delta A H Bonn stetter West Bend Don W Burington Sioux City Le Roy S Mercer Iowa City Harry F Copeland Waukee Paul A Cunningham Des Moines Le Mar Foster West Branch Milton Peaco Clin ton J P Gallagher Wil liamsburg and Roy J Sours Charles City These representatives were se lected as a nucleus to start study ing provisions of the bill the gov ageassistance board reported they had been active in social security legislation in past assembly ses sions Meeting with the governor and the legislators was H L Mc Carthy representative of the Fed eral Social Security board who explained what the Iowa legisla ture must do to conform with the federal requirements and save foj the state Iowa employ ers have paid in unemployment insurance taxes Have You Read Your Newspaper 1 What Church of England dignitary assailed former King Edward as a man who disap pointed hopes so high and aban doned a trust so great 2 Who is Miguel Mariano Gomez 3 What sentence was re ceived by Harry Brunette gun man captured in New York the past week by GMen who pleaded guilty to kidnaping a New Jersey state trooper 4 Carle E Jackson son of Baltimores mayor married what noted opera star 5 What is the name of the Chinese warlord kidnaped by rebellious soldiers 6 What two South American nations opposed a movement at Buenos Aires to create an American league of nations 7 A move was started to oust Dr Gl enn Frank as presi dent of what midwestern state university 8 What is original name of Pope Pius XI 9 What nation was the only one to pay its semiannual war debt installment to the U S the past 10 What happened to Hope Morgan 25 year old Lansing girl who killed her best friend AGE 2 Plan Board of Five The subcommittee drafting the bill completely revised the bill as to the system of state administra tion Instead of a state board of three members to be paid anually the committee decided upon a board of five to be paid S10 a day of actual service with a yearly limit of The group also wrote into the bill a clause providing that should the federal system become inop erative for any reason the state plan would end automatically The drafting committee had not yet decided whether the unem ployment commission should take over the work of the state bureau of labor Since the federal law provides that unemployment ben efits must be paid through em ployment offices or an approved agency several states have inte grated their unemployment and labor commissions Set Up Appeal Board It had also to decide on the set ting up of an appeal board to set tle disputed claims on the compen sation fund One suggestion under consideration was the establish ment of an appeal board to arbi trate such disputes In other states provision has been made for ap peal boards to meet only on arbi tration cases and receive pay dur ing the time it is in session In cases where the claims can not be adjusted by the appeal board the claimant could appeal to the courts Says Husband Lost Wages in Machine SHENANDOAH re ceiving a complaint from a wo man whose husband had lost his wages in a pinball machine May or Paul Ambler gave machine op erators just 24 hours to dispose of all slot race horse and pin ball precedents said 16 probably would be eliminated because they are close to or have passed their seventieth birthdays The severe requirements for the papacy this informant said mili tated against most of the others because they had worn the purple too long had risen through ad ministrative bodies without serv ice abroad or practical experience in a diocese were troppo dolce sweet or even were too religious having become cardinals from a monastic order FAINT CALLS ON RADIO REPORTED Search Continues for Two Airliners Missing in Utah Idaho SALT LAKE CITY radio indistinct sound of a mans weak were picked up time and time again Saturday by searchers for a Western Aid Express plane lost since Tuesday with seven persons The recurring calls apparently directed at both St George Utah and Salt Lake City were describee as between the frequencies of both United Airlines and Western Air Express They were picked up most plafntly said A E Cahlan of Western Air by a transcontinental and western air station at King man Ariz This Cahlan said was the only station able to make out where the unknown caller was trying to make contact Meanwhile 500 miles north in WashingtonI d a h o timberlands two northwest airlines fliers who vanished Friday were sought in the nations second plane mystery in a week 3 DAYS EARLIER GIVEN TO HALT REVOLT DENIED Operations Against Sianfu to Be Renewed Unless Chiang Is Freed NANKING China OF The Nanking government suddenly switching its tactics against re bellious Marshal Chang Hsueh Liang ordered Saturday night that punitive military operations against Sianfu rebel headquarters be reopened Sunday unless Gen eralissimo Chiang KaiShek is released The governments punitive ex pedition bombing operations and any other form of attack is deemed necessary recommencing Sunday morning if the generalis simo is not released before then a spokesman announced Shortly after midnight er military authorities tempered this announcement somewhat saying Sianfu wont be Three more days of grace in which to end the rebellion and release general Chiang had earlier been awarded by officials to the mutinous young marshal Quick End to War The spokesman refused to con firm a breakdown in the negotia tions to bring a quick end to Chinas civil war With profound regret we must disclose that our hopes for Gen eral Chiang have not material he did say however Throughout the day various ill founded rumors have circulated saying the generalissimo had been released and reached Loyang capital of Shansi province east of Farmer Struck by Automobile Dies SIOUX CITY Slutz 61 year old farmer of near Kings ley died in a hospital here of in juries suffered when he was struck by an automobile in the downtown business section The Weather FORECAST IOWA Generally fair Satur day nifrht and Sunday except unsettled in east portion Satur day night colder Sunday in west and north portions anti Sunday night in southeast por tion Generally fair Saturday nifht and Sunday colder in northwest Saturday night much colder Sunday IN MASON CITY GlobeGazette wsather figures for 24 hour period ending at 8 oclock Saturday morning Maximum Friday 27 in Night 16 At 8 A M Saturday 20 WEEKLY FORECAST CHICAGO weather outlook for the period from Dec 21 to 26 For the upper Mississippi and lower Missouri valleys and the northern and central great plains Not much precipitation likely especially in south por tions temperatures near or above J normal for the most part These rumors caused false hopes in the nation But authori ties who are most anxious to broadcast such information are unable to believe or confirm He declared the situation was growing more confusing every hour Soony Leaves Nanking The spokesman also disclosed that Dr T V Soong brotherin law of General Chiang had left Nanking suddenly by plane for Loyang setting his trip ahead original plans to go to the interior Sunday Dr Soong has gone on his per sonal the spokesman said He will act as a family rep resentative The government will not participate in such degrading The first time extension came just as the previous final ultima tum to Marshal Chang demand ing the generalissimos immediate return expired Although the national govern ment had set a deadline of 6 p m a for the release of their chieftain an authorita tive spokesman had expressed open skepticism that Chiang be released at that time To Allow Compromise The additional days of grace il was believed were given Chang allow completion of a com promise which was understood al ready to have been tentatively agreed on One notable victim of the mu tiny in which it was first reported the generalissimo himself had been slain was officially an nounced to be Shao YuanShung political historian and member of Chiangs staff Shao died Dec 13 as a result of wounds received during the coup detat Graduate of Wisconsin Shao was a graduate of the Uni versity of Wisconsin and Colum bia university and had edited Chi nese newspapers in San Francis co St Louis Toronto and Victor ia Canada The belief increased that Mar shal Chang was in complete con trol of the elements opposing the Nanking government but some quarters persisted in contending he would be influenced by the de sires and demands of his associ ates All Want Safety One of the few doubts of a quick and peaceful end to the civil was was expressed in these cir cles where it was pointed out the marchals subordinates were un likely to permit him to make a settlement that did not guarantee their safety as well as his own Chang substantial re ports indicated was acting now only for self preservation and would release his prisoneirs once his own life was assured The Nanking government on the other hand was represented as earnestly desiring to negotiate for Chiangs safety and only seek ing a solution that would preserve ;