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Mason City Globe-Gazette (Newspaper) - January 1, 1941, Mason City, Iowa NORTH IOWAS DAILY PAPER EDITED FOR THE HOME E ft HIST or ES I A HOME EDITION VOL XLVII ASSOCIATED PRESS AKD UNWED THE NEWSPAPER THAT MAKES ALL NORTH 10WANS NEIGHBORS MASON CITY IOWA WEDNESDAY JANUARY 1 194 MASON CITY THE BRIGHT SPOT HAPPY NEW YEAR By UNITED PRESS From east to west across time belts of the country he people celebrated an unusually boisterous New Year Tuesday night and Wednesday against the backdrop of a world poised on t balance of war and delicate peace It was a great and final fline to mark lie endof adecade as well as a year And for many it j was an opportunity to momentarily the bombins black outs and other byproducts of the worlds war sectors They massed ill great throngs New Yorks For MONEY VALUES Federal Reserve System Advocates Gradual Increase in Taxes WASHINGTON The fed eral reserve system recommended repeal of presidential powers to revalue the dollar and issue greenback money Wednesday in a program designed to prevent tiie higher prices might result from huge defense spending Also advocated amongthc proposals requiring congres sional approval was a gradual increase in taxes until the fed eral budget is balanced or in every day langvage until Koyerninent tax collections can pay for the governments ex penditures Chairman Mainmer S Eccles of the federal reserve boaid in mak ing the proposal public said it was purely oi a precautionary nature He added it had the unan imous approval of the membeis the federal reserve board pres idents of the 12 federal twnlvi and the federal advisorv Council the 7 000 individual banks belonging to the fcderalreserve system the plan called foi technical measures to prevent use of most of the 57000000000 idle money now in banks for excessive loans a reversal of administra tion policy in some monetary fields and finally thc eventual balancing of the federal budget throughhigher taxes The of its kind ever that Vast expenditures the military bra gram and their financing create additional problems in the mone tary field which make it neces sary to review our existing mone lary machinery and to place our selves in a position to lake meas lues when necessary to forestall the development of inflationary tendencies attributable to defects Jol maehinery credit con Thesc endencics if un checked would produce a rise of prices would retard the na tional effort for defense and sreatly increase its cost and would aggravate the situation which may result when Ihc needs of defense now a stimu lus later absorb less of our eco nomic productivity The plan was listed in five Points as follows 1 Immediate increase bv con gressional action of deposit reserve requirements on all Federal Re serve member banks authoriza i lion for the Federal Reserve board to double the requirements if necessary in thc future make all banks whether chartered by the federal government or stales sub ject to these requirements 2 Remove presidents power to change gold value of the dollar repeal treasury authority to issue 53000000000 of greenback money and repeal treasury au thority to issue money agfliiiit the foreign silver it buys 3 Neutralize money expansion effect resulting from U s pur chases of foreign gold 1 Sell future government se curities to individuals and corpo rations and not to the banks a Gradually increase taxes un lil a balanced budget is reached not later than some future time when the country Wji iavc reached its full utilization of its economic capacity with appromi ale considerations of both employ ment and production1 j Federal Reserve spokesmen however said the business bnnni j created by the defense program had radically altered conditions so f Frnm Armw that regardless of their former I FlOm AlTOy merit the devaluation the greeni back and silver money cowers i WASHINGTON S12000 gathered in relatively orderly The more serious luuo cu 111 churches for midnight watch serv ices and masses Prayers for peace and a better world in 1941 were offered up But Americans thankful that they lived in a nation at peace In 3 ivarringr world made the most of it while Londoners sang Auld Lane Syne in crowd ed bomb shelters while many Berliners comjregatcd in dimly lit cafes and beer gardens while conquered Frenchmen tightened their belts a liltlc more ing the countrys biggest celebra tion Policemen said it was the biggest noisiest and drinkingest spree m years By midnight some 2000000 cheering persons were jammed in or around Times Square traditional spot for revel Uniformed soldiers sailors nnd marines were generously sprinkled through the crowds They were given quite a play and at the bars found themselves lionized In every large city hotels and night clubs were filled with those who had had paid up to for reservations The war made im ported champagne something ol a luxury but many celebrants found that the domestic cork gave just as good a bang and accomplished the Heart Cut Recovering John Richard Guerin age nine is shown in oxygen tent in Jamaica L I hospital ner an operation in which tnee titcheS cosed an inchlong gash in his heart Johnny was accideifa gabbed by a pair of scissors while in the act of leaping int bed LOOK INSIDE FOR Says Blood Tests Big Aid in Enforcement DBS MOKVES County Attorney Francis J Kuble Wednesday asked the Polk coun ty board supervisors for S3 000 to continue blood tests for persons suspected of driving while intoxicated Kuble asserted use of the blood tests has resulted in an increase of 30 per cent in the number of convictions and suilty pleas among drivers arrested NEGOTIATIONBY NAZIS RETAIN REPORTED CUT British News Agency Reports Vichy and Germans Not Agreeing Reu zi13 patch from Lisbon Wednesday said Chief of State Marshal Phil ippe Petams Vichy government and Germany had broken off ne gotiations The Associated Press has re ceived no confirmation of this report from other sources A dispatch from Vichy reporting Marshal Petains Aeiv Year re ception of foreign diplomats gave no indication of fresh FrenchGerman troubles Dies After BusAuto Crash Near Maquoketa MAQUOKETA Mechtcnberg 42 of Morrison rrson ill died at 4 a m Wednesday of injuries suffered Tuesday in a carbus crasli north of here His sistermIaw Mrs Max Capper 23 of Dewitt was killed in the accident Wedding Licenses at Dubuaue Set Record DUBUQUE rf BOGDAN IHILOFF Goes to Vienna Talk With Nazis Is Hinted PAGE 2 Huskers Face Indians in Rose Bowl Test SPORTS PAGE total marriage licenses in his o rice clurins 1840 for an alitime cc ord In 1933 oSll licenses were issued i arner Negotiations looking toward col laboration of the Petain govern ment with Germany have been in a virtual stalemate since Dec 14 when the old marshal ousted Pierre Laval his vice premier and for eign minister from his govern ment Until then Laval had been the chief negotiator with the He was replaced by Femand de Brmon designated chief represen tative for Petain in Paris Follottmj conferences between retain and Otto Abctz Adolf Hitlers ambassador tit Paris Laval was released from euslojiv by Petain and went to Paris but the Vichy regime made it clear he was not there in any official capacity J it v Naval Minister Jean Darlan went to Paris Christmas eve and was reported in advices reaching Berne Switzerland to lave pre sented to Hitler Petains proposals on how FrenchGerman collabora tion could be carried out The DarlanHitler meeting was saio to have taken place in occu pied France somewhere north of I ans on Christmas day Hitler was known to have been in France with Ins troops on Christmas day Darlan was said however to have aroused thc fuehrers he by s late for the con lich informed Bern sources said was held at a village neai Beauvais These informairs said Darlans chauffeur got lost At this meeting Hitler was said to have agreed to consider Pctains proposals and answer them in same purpose Hotel reservations in New York were 50 per cent above last year but transportation companies said air and rail travel broke no records Business was fairly heavy they said Those who celebrated at home danced to no music controlled b ASCAP The American Society of Composers Authors and Publish ers if they were tuned in to net work stations or local ones af filiated with the National Associa tion of Broadcasters Radios music war began at the stroke of 12 A cold drizzling rain only whetted tiie enthusiam of Chi cago s celebration where John Stork Jr CHICAGO WThe stork ar rived at tiie stroke of the year Wednesday His name was John Jr and he was bom to Mr and Mrs John F Stork at Mercy hospital Physicians an nounced the Caesarian delivery at a m Halls shattering crowd estimated by po lice at 600000 persons jammed the StateMadison streets area Capt Thomas Duffy said it was the largest crowd he had seen in 10 years of police duty on New lears eves The only difference is that Ihis year the crowd is bigger it started earlier and everyone had two horns instead of one he said Automobile traffic was routed around the 12block loop district because of the jammed streets Falsealarms brought firefigMiig squads to principal intersections where celebrants mounted the trucks Later inspectors cars pre ceded trucks on responses to The streets continued blocked by revelers until 5 a m Many of the latestayers were overflow from packed hotels and night clubs reported the richest gay est New Years eve in history In Washington the grim out look for the future cast a shadow over what was reported to be the largest and most expensive New years celebration since the boom year of 1929 President Roosevelt spent a i quiet evening at the white house with a few members of his family and close friends After a musicalc j thc party sang Auld Lung Syne at he stroke of midnight Jlr Roosevelt offered his ihc United States He said 2 Young Men Are Wounded Trying to Take Agents Gun pJES MOIKES young menlying wounded lnvahospiial here Wednesday were under ar rest following their alleged at tempt Tuesday night to wrest a gun from H H Anderson special agent for the Rock Island rail road Anderson who said he fell to the ground during lie struggle and somehow was shot by his own gun told police the pair jumped on him as he was making his rounds in the railroad yards Most seriously injured was Lawrence Flinn 1C shot in thc right side Thc bullet came out the middle of his back Flinns companion Harold Wil son 19 was shot in the right hand during he struggle police said Anderson was treated for btil et wounds in his left shoulder and leit hip r Lawyer Undertaker Police Arrive at Crash Scene 1OLA Kans airplane was reported to have crashed An lola Register reporter ar RAF ATTACKS ITALIAN BASES Reports Heavy Raids on Taranto Naples Palermo and Valona CAIRO URRoyal Air Force planes attached to the middle cast command wound up the old year Annunziata Wednesday announced I I aranto where iiist month the air arm of the Mediterranean fleet dealt a crippling blow to Ihc Italian battle fleet was attacked on Monday night the communique said and II bombs were seen to burst around their targets On Monday night Naples and Palermo also were attacked and first at the i the same night thc British raided a chemical factory at Cretonne in southern Italy Bombs were dropped at Torre Annunziata and Valona one of the main Italian ports in Albania was raided Tuesday for the 23rd time Weather conditions for the Valona raid were bad but all bombs fell in thc target area and considerable damage was caused scene Then the communique aid d POOR WEATHER CAUSE OF LULL IN PLANE WAR English Predict 1941 to Bring Improvement in Empires Prospects BULLETINS LONDON ministry of economic warfare announced Wednesday lliat effective Jan il exporters in Ireland must obtain navicerls for ship ments In a number of foreign countries including several Eu ropean neutrals Soviet Uussia Ircneh West Africa and certain smaller territories hut not in cluding the United Stales WASHINGTON Thc United States is not negotiating with or planning to ask Eire to open its ports or naval bases to Great Britain That was re vealed by President Roosevelt at his press conference when he was asked whether such a move was being discussed by the Irish Free State and this government or contemplatedin he near fu ture Tie shook his head Bj THE ASSOCIATED PRESS LondonsBig Ben and the bells of Cologne university tolled in the new year Wednesday in war engulfed year in which Adolf Hitler has promised his people complete victory and Brit ish leaders predicted decisive bet terment of the empires prospects There was an overnight Kill in me JIMwar because of poor t a a J011U weal her but men fought and died where a school of fish lay beyond active battlefronts of Af and Albania A fee axis planes were over Britain during the morning and afternoon but Chili Powder Is So Good for Bunions It Pops Corns and bunions don t take some Its thc hes P li prainending companion used chilipowder in his hoofs 1 it heated things up so warm it cooked his bunions and popped his corns it didnt hurt his toes Araberson said They just pulled themselves up out of danger by hanging For that formula the Burlihg jars flub Jri WVdtirriiv awarded Amberson its 1341 cham pionship Runnerup among the 0000 entries was E Core of Wal nut Creek Cal who said he had saved an Eskimo tribe from star vation by feeding fish frozen electricity f twisted small pieces of wire rozen solid f carried the wires to point ttlj the Eskimos reach and dropped the wire worms into the water The fish gobbled them and thc worms thawed in their stomachs electrocuting the floated ashore to fish the h i c h and state highway trolmcn j They found the wreckage of a miniature airplane i pot Thc RAF no damage was reported Londoners greeted the new year tiic sloom of blacked out streets with shouts of to hell wHh Hitler Germans held subdued celebrations then went to bed early in keeping with wartime restrictions For Germans the tenor of liie year was defined by Adolf Hit u jcls message to his soldiers that VKJ num by the fire will bring completion of the and read the mag greatest victory in our history n cover lp cover he I southeastern Europe thc saln I possible theater of thc spreati conflict Bulgarian Premier ii o Philoft told his j heavily helps those who help Honorable mention went to W L Person Kingfisher Okla who said while his wife was away from home recently he did nol spend the night with the boys I bought a copy of Good Housekeeping magazine curled up in a cozy chair sicje at homo a axinc from j communique raids were nuide i S i ft i area sutlation but observers specufatl td hi Picture Window Wins Lighting Contest money powers were no longer either necessary or contract for canned meat products Cslrabfl I has been awarded to the Rath IS MANAGING EDITOR Pacliins company of Waterloo i lies department announced FORECAST IOWA Rain and colder Wed nesday mehl chansimr to snow m north and wesl Thursday cloudy and colder light snow northeast and eastcentral nor ttons MINNESOTA Cloudy snow Wednesday night and east and central Thursday colder Thurs day and west Wednesday night IN MASON CITY GlobeGazette weather stalls war 1JUIJLIJH I AMES T Sprinkle lc a native of Ncuton Wednesday Wednesday The contract ton lcceplcrt at Sikcs supplcmaiMhArcsh tables and fruit on army menus i m Tuesday Minimum Tuesday nisjlit At 1 a m Wednesday YEAR AGO Minimum Precipitation 3j trace ivij itjiu m reply was not expected until Jan 3 or later Technically Germany and France arc not yet at peace but merely in a state of truce their relations governed by the armistice signed in the forest of ComDiCfnc June 22 Germany can denounce this if she holds France has not fulfilled her obligations Threats Germany holds over trance include the occupation of entire country France holds a card m the position of her still i powerful army in northern Afiica i commanded by General Maxnnc Wcygand who some observers believe might take independent action should German pressure on j Hip Vichy regime become too vcrc Tiis Yiilelidc decoration won for Mrs r SIS cash in the fourth annual j mior nouncert Wednesday by Ihc commiltcc in charge Storj Kaycnay cnravin c i t ilionll l was ional pictures on paffc S Lock nhnto visit might be connected witn Hie swelling of Germanys Balkan army which now has passed through Rumania to Bul garias doorstep On the Albanian batllcfronl tiic Italians reported attacks on outposts of Greek forces pushing heir counterinvasion through the fascislconnuerccl nation Four British bombers were rc porlecl shot dotvn in a raid un Valona one of the Italians chief norls if entry in Ihc battle of Libya where the British have had Italianheld Bar dia iindcr siege for tvo weeks the fascist high command reported a British thrust against an outpost of the beleaguered port had been j repulsed The British reported daylight raids Tuesday on targets in Ger many Belgium and the Nether lands and the nazi high command told of direct hits on a British armament factory at by a lone combat plane In the far reaclict of Ihe Pacific ocean it was a happy new year for 500 Men women and children rescued by an Australian vessel irom an islet in thc Bismarck Archipelago where they were marooned by German raiders which destroyed their ships Some of thoe rescued had been prisoners of hc nazis since Isst August British French and Nor wegians they represented the crews and passenger of 10 shiu Premium Roosevelt rcplyinc In a srcelinsr Tuesday from Kine VHtorin Kmamiclc of Italy ex pressed my hope thai clnrint ;