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Mason City Globe-Gazette (Newspaper) - January 4, 1934, Mason City, Iowa North Iowas E ft HIS MEM ART OF IOVA n r ii o ki r I DAILY PAPER ii Edited for the Home THE NEWSPAPEft THAT BIAKES ALL iNOUTH iNKlGUBOKS ME EDITION VOL XL flVE CENTS A COPY ASSOCIATED PRESS LEASED WIRE SERVICE MASON CITY IOWA THURSDAY JANUARY 4 1934 THIS PAPER CONSISTS OV TWO SECTIONS SECTION ONE NO 75 Session May Not Be Brief Leaders in Senate Chary of Making Predictions RECOVERY DEFICIT NINE BILLIONS By HERBERT PIAJMMER ASHINGTON Jan 4 1P While house lead ers have been free in their pre dictions that the coming session of congress will be a short one senate bosses have been rather chary in their views Both Speaker Rainey and Floor Leader Byrns have said they see no reason why the job shouldnt be com pleted by early spring May 1 is the date generally chosen by the optimists Thus far only one senate leader has commented on the subject pub licly Senator Joe Robinson has ex pressed the hope that adjournment can be effected in the spring Robinsons estimate veteran of the senate as he is sounds more like a prayer than a prophecy No one familiar with the senate dares predict what it will do It could of course get away early But will it Battles Breiving Despite the fact that onethird of the senators will be up for re election next year and therefore anxious to get home and start cam there are other consid erations to keep in mind Those from the farm states for example will have a lot to get off their chest about the administra tions agricultural program Discon tent in the farm area whileappar ently not as acute as it was earlier is till a factor Secretary Ickes and the Public Works administration have aroused the ire of others There are those who feel they have been slighted in the allotments of the more than billion iabllarsthey in liidjsnerial welcome the opptfrtiinityto airtheir griev There will be attempts to en large the PWA which promise end lets debates The battle over money may re sult In anything Despite the Presi dents Irtcst monetary move as re gards silver there are many who still believe a bitter struggle is prospect Slumbering Volcanoes Senator Thomas of Oklahoma leader of the inflationists takes th view that the new silver coinage policy will only intensify the figh iu congress for a cheaper dollar If he is right in his prediction tha the President has opened the doo to all the various forms of monc tary expansion there is no telling what will happen These are only a few of the con troversial issues likely to arise There are others such as patronage banking legislation criticisms o the numerous recovery any one of which is capable of pro longing the session Indefinitely Hopes of an early adjournment whether entertained by either nous or senate leaders cant be so very high however pressing may be th need to get back home and strength en political fences Government Holds Its Offer for Gold in Ounce Vote to Let Druggists Resell Liquor WASHINGTON Jan 4 government today again offered S34C6 an ounce for newly mined domestic gold It was the twelfth repetition of this figure Onthe basis of a sterling open ing of 510 to the pound Lon dons bar gold price was 3254 an ounce Mason Succeeds Lazcll IOWA CITY Jan 4 Fred J La7ell of the University ot Iowa resigned as editor of the Iowa Publisher organ of the Iowa Press association Prof E F Mason was named to succeed him AMENDMENT TO BILL APPROVED BY IOWA HOUSE ean Introduces Local Option Plan to Let Cities Vote DES MOINES Jan 4 Druggists would be permitted to esell liquor purchased at state iquor stores xipon prescription by a icensed physician under an amend ment to the liquor control bill adopt today by the Iowa house of rep resentatives by a vote of 51 to 40 The amendment submlted by Rep Mitchell of Webster pro voked a lengthy debate in which it vaa charged that this was the first to be placed in the bill The house sidestepped temporarily one of the most controversial ques tions In the liquor bill when Repre sentative Zylstra withdrew his amendment making the establish ment of state liquor stores optional with city councils or the municipal electorate Dean Kequest The amendment provided the com mission could establish as many iquor stores as necessary not ex ceeding one to each 10000 popula tion or one to each muncipality of 300 or over The stores could be eg tablished or discontinued only upon application of the municipal council which also could demand a popular voteon theVquestlbn Representative vDean of Cerr6 Gordo asked that the question be deferred as he was preparing an amendment on local option The chair decided that if action were taken on the Zylstra amendment the same subject matter could not be taken up again without approval by vote of twothirds of the assembly Representative Fabritz approved de ferment Wthout a record vote the house adopted a liquor control committee amendment which would permit manufacturers using large quanti ties of alcohol to make purchases direct under special permit Post Bond They would be required to post a bond and file with the con trol commission a report of all re ceipts The house also adopted a number of clarifying amendments submit ted by the liquor control commit tee chief of which WAS the change In the name of the bill from the Iowa temperance act to the Iowa liquor control act and increasing the cost of special permits from 1 to In speaking for his amendment Mitchell declared there was no at tempt to provide for sale by drug gists generally but only upon the prescriptions for medicinal pur poses Representative Strachan of Hum boldt characterized this as a joker declaring doctors will write pre scriptions more liberally under such a law Dislikes Word Joker I resent the statement that this is a joker said Mitchell If a druggist sells on prescription he cannot compete with a state liquor store but it does provide a means by which persons may obtain liquor for medicinal purposes by giving the druggist the right to resell Violent opposition was made to the amendment by Representative Exemption of Earnings on Real Estate Rejected State Senate Amendment to Tax Bill 2029 DES MOINES Jan 4 pro posed exemption of earnings of real estate from the net income tax was rejected today as the state senate continued its work on tax revision The senate defeated by a vote of 20 to 29 an amendment filed by Sen j ator Frank Beatty of Keokuk to the interim committee tax bill S P Wea IOWA WEATHER Mostly cloudy rain or snow Thursday night and possibly In northeast portions Friday morn ing no decided change in tem perature LOCAL STATISTICS GlobeGazette weather figures for 21 hour period ending at 8 oclock Thursday morning Maximum Wednesday 29 Above Minimum In Night 28 Above At A M Thursday 38 Above Rainfall 02 of an Inch Highways streets and sidewalks were made treacherously slippery by the rain which began falling in the early hours Thursday morning and continued into the day Tum io rnge 13 Column 6 WORLDPARLEY HELD USELESS Italy Sees No Hope of Arms Cut in Present Franco German Impasse ROME Jan 4 in the person of Premier Mussolini was represented today as viewing as useless the world disarmament con ference at Geneva in the light of the present FrancoGerman im passe That view it was said does not mean that Italy will refuse to at tend the coming steering commit tee meeting In Switzerland but if she does attend she would do so to associate herself with others In recognizing the lack of wisdom in convoking the conference itself un der the existing situation The direct quotation came from a qualified government spokesman 1 after debating the proposal for most of its morning session Beatty proposed in his amend ment that earnings of real estate or other personal property taxed at the same rate be estimated as five per cent of the assessed value of the property the deducatiou to be made from the income Deduction Provision was made that the de duction of any person in a single year should not exceed Beatty made a strong plea for adoption of his amendment con tending that otherwise property would be subject to double taxation the earnings as well as on the that his proposal would tend to equalize this matter Opposition to the amendment was voiced by the sponsors of the in terim committee bill Senator George Patterson argued that adop tion of the amendment would injure the net income tax feature of the three point tax plan of the com mittee Major Amendment The amendment was the major tbe session wiiiciithe eHtfrely or the taxrevision questioh onivhicl it has worked for nearly two weeks Committee of the whole sessions were continued Senator J E Doze of Humeston at the opening of the morning ses sion sought to call up for consider ation the state NIRA bill providing for state cooperation in the na tional recovery program Objection was raised however on the ground that it was a con troversial measure and would re quire time for discussion The house judiciary number two committee today introduced a bill legalizing the corporate acts of the Benton County Agricultural society Urge Postponement The judiciary mimber one com mittee of the house recommended for indefinite postponement the Fel ter bill which would give landlords a lien on the personal property of the tenant if a copy of the written lease containing sucli lien is filed with the clerk of court and names each article on which the lieu is claimed The committee recommended for passage the bill of Senator Reese of Marshall providing exemption of radio receiving sets from the per sonal property tax After a fight along urban vs rural lines the upper house yester day afternoon decided to stand by the provisions of the bill as to the allocation of revenue Amendment Is Defeated It defeated by a vote of 15 to 30 an amendment sponsored by Sen ator Byers and other members which would have returned the rev enue to counties on the basis of taxes levied rather than OR the basis of assessed values in the county Senators from urban centers sup ported the Byers amendment while it was opposed by members from rural areas and by sponsors of S F 1 Several attempts were made to defer action on the amendment but these efforts were defeated Has Jfo Precedent Senator John K Valentine of Centerville chairman of the interim committee which drafted the bill opposed the amendment contend ing that he had found no precedent for allocation on the basis proposed by Byers It also was argued that the amendment by allocating on the basis of taxes levied and collected would tend to encourage extrava gance In expenditures Will Rogers BEVERLY HILLS Cut Jan Roosevelt handled that congress yesterday just like a mother would a fretting baby Just when any other mother would have told it to hush and be a good baby and not cry he didnt tell em a single thing to do Just slipped em all a piece of candy the little black re publican babies along with the white and left em feel ing that mother had confidence in em and they were all tickled to death rolling on the floor with their toes In their mouth and googooing at each other Yours WILL CopyrfKrit McNnnsTit SynUlcarel One Killed When Auto Turns Over on Icy Highway Garner Man CWA Employe Fatally Injured on Road Near Klemme KLEMME Jan CWA worker was killed and another was injured Thursday noon when the car in which they were riding a mile south of Klemme tipped over on the ice highway and fell on top of them Henry Griffin about 50 Garner was killed in the accident The men had gone to work at Twin Lake but had started home because the rain halted their labor The car a touring mode swerved on the highway and as the driver Chris Harisen attempted to right it the vehicle turned over and landed on its back The auto was demol ished Griffins head was crushed by the top of the car and he died almost instantly Hansen brother of Sher iff P A Hansen was injured Griffin formerly lived in Klemme He leaves a wife and three children in Garner Griffin had only been working on the CWA project for a short time A dam is under con struction at Twin Lake Funeral services have not been announced FlSREPORTON COSTS BRANDED AS STARTLING Plan Liquor Tax Vote Friday Morgenthau Approval Urged WASHINGTON Jan 4 gress learned today the recovery rograni is piling up unprecedented deficits and forthwith put Uirjf jroblem aside for future considera ioii to deal with matters consider ed more immediate In a blunt message that told of he government having to borrow ten billion dollars in the next six months President Roosevelt esti mated the public debt would reach a record high of almost 000 by mid1935 Nine billion of this would be Incurred between now and them Startling was the way Speaker Rainey described it while express ing no worry and praising the pres ident for frankness and cutting ordinary expenditures Signal for Uispair A signal for despair was the attitude of Senator Dickinson of Iowa republican who called it a confession of broken promises and declared the budget set an un Copeland Presents Substitute Bill for Tugwell Measure WASHINGTON Jan 4 new food drug and cosmetics bill was introduced in the senate today by Senator Copeland DN which the physiciansenator said eliminated many of the objection able features of the previous mea sure that has been termed the Tug vvell bill Jeweler Brother of Smith Manly Shoots Robber in Long Beach MANLY Jan D Smith 60 who has made annual vis Its to Manly and Mason City the last 16 years and is a brother of Frank H Smith of Manly struggled wtih a robber who attempted to hold up his jewelry store in Long Beach and wounded him according to word received here The robber was later identified as Ernest Fitz water who only a few hours pre vious to attacking Mr Smith had held up a filling station The rob ber was convicted The bandit entered the store with known peacetime record of extrava gant expenditures and wilful waste Rainey added There is nothing so alarming iibout sujjiriereasfe of to six billions more 5ii the national deb when the normal national income is around The deficit wont be paid all in one year but in time Dickinson said This fiscal program will impost a tax burden on this generation an on many generations to follow Cannot Continue This courtry cannot continue to exist half subsidized and half vie timized To borrow ten billion dol lars between now and July 1 maj be but the beginning of the end so far as stable federal finances concerned Pendingcommittee study of the massive figures the senate gave at tention to war debts and other af fairs asking the treasury to repor to it on obligations owed here bj foreign nations The finance com mittee unanimously approved th nomination of Henry Morgenthai Jr to be secreeary of the treasury and Senator Long D an nounced he would support it The house went to work on th bill to tax liquor at a gallon Some members meanwhile hai their eyes on a petition filed b LuncJeen FL for casi payment of the veterans bonus Morgcntlinu Indorsed After the finance committee re port favoring Morgenthaus nomina tion ns treasury secretary the sen1 ate adjourned until Monday out of respect for the members who have i died of late A vote on the nomina tion will be taken next week all indications being for approval Tame debate on the liquor tax kept the house busy several hours A vote was to be deferred until to rn orow Numerous bills including one by Senator Norris D Nebr for de velopment of the Missouri river ter ritory like the Tennessee valley TRAILED IN SLAYINGS Mrs Edith Dilly McGmilis Christmnii was sought by officers of Miissllliin Ohio for questioning I the fatal shooting of her estranged hus Imnd and his invalid sister Associated Press Highlights in Message on Budget WASHINGTON Jan 4 inent quotations from President Roosevelts budget message to con Powerful forces for recovery exist It is by laying a foundation of confidence in the present and faith in the future that the upturn which ve have so far seen will become cumulative The cornerstone of this founda tion is the credit of the govern ment If we maintain the course I have outlined we can confidently look forward to cumulative beneficial forces represented by increased volume of business more general profit greater employment a dim inution of relief expenditures larg er governmental receipts and re payments and greater human hap piness Tammany Faces Loss of Another of Its Systems LaGuardia Will Ask Legislature to Change Court Plan The excess of expenditures over receipts this fiscal year amounts to over seven billion dollars My estimates for the coming fis cal year show an excess oj expendi tures over receipts of two billion dollars We should plan to havea defin itely balanced budget for the third year of recovery and from that time oh seek a continuing reduction of the national debt YORK Jan Mayor Fiorello H LaGuardias unortho dox experiment In municipal gov ernment barely three days old threatened today to destroy another of the traditional political entrench ments of Tammany hall The fusion mayor setting a new pace in municipal government is prepared to submit to the state legislature next week a bill abolish ing the citys dual court system of magistrate and special sessions courts In the event of accomplishments Mayor LaGuardla would bring to a climax the sensational allegations of graft and corruption in the magis trate court system made by Samuel Seabury and his bright young men of the Hofstadter committee investigation of two years ago This latest move by LaGuardia follows on a triphammer attack on New Yorks civic problems the her itage of 16 years of Tammany acl and four years of de IB vvui a gun and ordered Mi Smith to hold Plan were Put before both branches up his hands Instead Mr Smith called the robbers bluff and struck him knocking the gun from his hands Both men struggled fiercely according to an article on the first page of the Long Beach PressTel egram and the robber began using a blackjack on Mr Smithshead Although ivlr Smith suffered se vere cuts from the blackjack the robber fled Grabbing the robbers gun Mr Smith fired twice at the fleeing robber one hitting him in the body and the second in the neck The robber fell and was taken in an unconscious condition to the hospi tal TWO TORNADOES HIT PENSACOLA PENSACOLA Fla Jan 1 Two separate tornadoes struck Pen sacola this afternoon one tearing along the waterfront and the other twisting through the city injuring at least nine persons one child prob ably fatally and demolishing about 35 residences SOUTHERN CROSS REACHES BRAZIL Great French Flying Boat Completes Its Ocean Crossing NATAL Brazil Jan 4 great French flying boat Southern Cross arrived here early today completing an Atlantic crossing from Saint Loviis Senegal The plane landed at oclock local time n m F S T for a flying time of 18 hours 27 minutes for the 1970 miles The four motored hydroplane is the French entry in a race with Ger many to set up the first transAt lantic airmail line between Europe and South America via Africa Within two months the French government hopes to Initiate daily service between Paris and Rio fie a nonstop hop sche duled over the South Atlantic ministration pression Six More Added to Growing Death List in California Flood LOS ANGELES Jan 4 more victims were added to a grow ing list of dead in the southern Cal ifornia flood of New Years clay as searchers prodded grimly through piles of debris today bringing the death toll to 42 Official reports listed 72 oKier persons as missing and fear grew that many of them might be dead The final toll may not be known for months The total debt if increased by the sum of two billion dollars dur ing the fiscal year 193D would amount to approximately 000000 on June 30 1935 It is my belief that so far as we can make estimates with our preB theirs goveriimen should seek to hold the total dcbl within this amount It is clear that the necessity for relief and recovery will still be with us during the year 193435 In the next six months we sha1 have to borrow approximately si billion dollars of new money an in addition four billion dollars to meet maturities of a like amount TO SPEND BILLION DOLLARS A MONTH Treasury Report Forecast New Peak in National Debt for 1934 WASHINGTON Jan 4 ernment spending at more than i billion dollars a month for the firs half of 1931 and a new peak in tin national debt was forecast today In the treasurys annual report to con press The report was in the name o William H Woodin as secretary having been prepared before Presi Roosevelt on New Years day named Henry Morgenthau Jr to the cabinet post Confesses Kidnaping Orphan Boy to Use in Jewel Robbery OMAHA Jan 4 po lice questioning today George W McDonald 37 confessed that he planned to use 11 year old Robert Walsh kidnaped Tuesday from St James orphanage here in an Oma ha jewel robbery He admitted be ing convicted in 1915 at Denver af ter a similar crime there Film Star Husband Separated Following New Years Eve Row HOLLYWOOD Jon 1 lent as to the cause of the quarrel which separated them at a Nev years eve party Sidney Fox film actress and her motion picture pro ducer husband Charles Beahan admitted today they were living apart but hoped to effect a rccon i ciliation soon It estimated emergency recovcrj costs alone would be during the fiscal year that end June 30 and general expenses 533691767 for a total federal out lay of and an operat ing deficit of The treasury figures prepared be fore final completion of the budge did not include extrabudget quests of President Roosevelt for 160000000 in the current year i and for 1D35 These amounts would increase expendi tures deficits and public debt to tals accordingly Predicts nig Odd Woodin predicted a public debt at the fiscal yearend of as compared with last June The previous debt high a result of war costs wai 2548 506000 in 1910 The postwar low was in 1930 For the fiscal year of 193f the treasury foresaw a return to a pay asyougo basis for both general and emergency expenditures with the latter dropping to The operating deficit for 1935 was estimated at 5511897021 a fig ure smaller than the sinking fund requirement and indicating conse quently a 15477708 reduction in the public debt RFC Big Spender It was estimated that the govern ment would spend nearly three times ns much in the six months from now until June 30 as in the first half of the fiscal year For emergency purposes alone the spending will be about five times us fast niggest estimated spenders ver PRESIDENT ASKS THAT II S DEBT BE HELD DOWN Would Continue Federal Pay Cut and 3 Cent Postage Rate IEXTON 18 WASHINGTON Jan 4 President Roosevelt frankly report ed to congress today a prospective nine billion dollar recovery cani aign deficit for the next two years nd asked that the lid be damped own to put the government on H liiyasyougo basis by 1936 In his message transmitting the rudget he estimated expenditures liargeable entirely to the recovery iffort of almost 57500000000 foV his fiscal yenr ending June 30 All of this he said involves gov rnment borrowing of 10 billion dol ars during the next six months ut he expressed no doubt of mcct ng this problem Swells Public Debt The nine billion dollar deficit vhich would swell the public debt o the alltime high of 531834000 100 does not take into account pros pective new taxes from liquor reve nue and plugging of income tax oopholes There was no recommen dation for new taxes The executive did recommend re storation of one third of the 15 per cent cut in pay for federal em ployes effective July i and fav ored continuation of the three cent non local mail rate As in his personal acjdress in the house chamber yesterday Mr Roosevelt spoke optimistically of the business outlook 4 Forces tor Recovery Powerful forces for reoovevy exist he said It is by laying a foundation of confidence in the present and faith in the future that tlie upturn which we have so far seen will become cumulative The cornerstone of this founda tion is the good credit of the gov ernment If we maintain the course I have outlined we can confidently look forward to cumulative beneficial forces represented by increased vol ume of business more genera profit greater employment a di muimUon of relief expenditures larger governmental receipts and repayments and greater human liapplnesH It hnd been pointed out by him earlier In a supplemental Uix with newspapermen that the more than ten billion dollars to be spent this fiscal year Is not up to the limit au thorized by congress Results of Expenditures The results of expenditures al ready made his message rend show themselves In concrete form in better prices for farm commodi ties in renewed business activity in increased employment in reopen ing of and restored confidence in banks and in wcilorganlzed relief The prospect seven billion dollar deficit for this year includes 160000000 additional to be asked from congress for continuing until summer the vast civil works admin istration and financing the home loan bank system Mr Roosevelt told newfpapermen he would just as noon have the two billion dollar recovery fund he lian asked for next year in a lump sum If congress prefers to itemize it he OFFICIAL ROAD MAP Uncle Sam is spending millions of dollars every month on new highways Broad ribbons of open road now beckon tourists to the warmth and sunshine of Amer icas 30 famous winter havens The now roads make winter tour ingtis easy and pleasant as sum mer excursions As a special aid to tourists the CIlobcGnzette of fers an official road map of the United States showing all the celebrated winter resorts in color A copy of the Official Road map 28 by 12 inches in is ready for every GlobeGazette reader Use coupon Mason City filnbeG Information Bureau Fredorln 1 Ifnsliiu Director Washington D O I inclose 5 cents Iu carefully wrapped for Official Roar map Name coin the Street City Slate Tn Column ;