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Mason City Globe-Gazette (Newspaper) - January 7, 1935, Mason City, Iowa i NORTH IOWAS DAILY PAPER EDITED FOR THE HOME VOL XLI NEWSPAPER THAT MAKES ACL NORTH IOWANS NEGHBORS HOME EDITION FIVE CENTS A COPY ASSOCIATED PKESS LEASED W1KB SERV1CJI MASON CITY IOWA MONDAY JANUARY 71935 Collections Are Worry Leaders Concerned Over Delinquent Borrowers r i By HERBERT PLUMMEB ASHINGTON Jan 7 Many new deal ers are more concerned than they care to ad mit publicly over the problem of Uncle Sams col lecting from de linquent borrow ers They believe it is no longer an academic ques tion It is estimated that more than seven billions of dollars of gov ernment credit have been pumped into banks insurance com panies railroads building and loan associations and to businessmen home owners farmers and others The very serious question has presented itself of what the gov ernment is to do if these borrowers cannot pay interest on their loans V S Has Railroad The RFC has had the novel ex perience of being offered the pri vate business of one man who could not meet his obligations This agen cy already has taken over operating control of a railroad 232 miles long in the west When the Denver and Rio Grande couldnt scrape up enough money to pay the interest on a loan to com plete its portion of the Moffat line through tie Rockies it turned over control to the government This had the effect of putting Uncle Sam back in the railroad business for the first time since the World war With hundreds of millions al BUDGET MESSAGE STIRS DISSENT Will cave cur minr UUUl ff ILL ready lent to the railroads some of which have defaulted many expect increased pressure to push the gov ernment further into operation of these lines HoIcUng t THe railroads are not the only ones in difficulty The RFC has placed a man of it own choosing at the head of a bank to whom it extended credit HOLC is being urged to take steps against defaulting borrowers on mortgage loans The argument is being advanced j that unless something is done to the delinquents now the situation prob i ably will get out of hand Others will get the idea it is argued that nothing will be done to them if they fail to pay and the government will be left holding the bag Many fear the government is heading toward the situation in which private banks now find them selves In the course of years of lending these banks gradually came into control of large blocks of real es jfcate industries and other private Enterprises i SAYS SHE MADE SHIRT FOUND ON MURDERED BABY Admits She Told Sailor Lindberghs Planned to Stay at Hopewell By WILLIAM A KINNEY Copyright by The Associated FLEMINGTON N J Jan The nursemaid Betty Gow collapsed today after the strain of nearly three hours as a witness in the trUl of Bruno Richard Hauptraarn foi the kidnaping and murder of Baty Charles Augustus Lindbergh Jr She had just testified That the undershirt found on tlic body of the slain baby was made by her and put on it the last nignt she saw it alive Found Month Later That athumbguard worn by the baby was found by her a month af ter the kidnaping a hundred yaras from the Lindbergh home in Hope well N J That she told Red Johnson hti sailor friend and probably others that the Lindberghs were not re turningto the home of Mr Lind berghs mother Mrs Dwight W Morrow the Monday which just preceded the fateful March 1 when the baby was taken from Us crib Stands in Nursery when apprised hia baby was gone procufeda rifle stood in the nursery and cried Anne theyve stolen our baby She indignantly denied insinua tions surled at her by Edward J Reilly chief of Hauptmanns de fense counsel and definitely cried I did not when Reilly asked he if she herseif dropped the thumb guard where she claimed to find it She denied knowing several per sons mentioned by OConnell Paulette and Louise Du Boise and Abe denied boating excursions to New Rochelle N Y and City Island Nice Young Man Before she left the stand undei riendly questioning from Attorney General David T Willentz aiie des cribed Red Johnson as a very lice young man and said she was Try to See Bruno Cast Ballots in Rehearsal of Saar Vote Plebiscite to Decide Allegiance Will Be Held Sunday SAARBRUECKEN Saar Basin Territory Jan 7 today in the historymaking Saar plebiscite ordered 15 years cgo al Versailles Five thousand public employes cast their ballots in a dress rehear sal of the mass voting next Sun day In effect it was a vote for jr against Adolf Hitler just an army HEAVY SPENDINGInDeathEmbrace IN FUTURE SEEN BYMORGENTHAU very fond of him As State Trooper Joseph Wolf ART OF NIRA IS CALLED INVALID i i i kpreme Court Decides Upon Clause Making Slash in l Oil Production ucceeded her in the witness chair he little nursemaid made her way o a chair next to Mrs Elsie What ley the Lindbergh cook She com plained of feeling faint Someone brought her a glass of water She started to leave the court reached the door and began to sway Two men in an When these three boys failed to gain admission to the trial of Bruno Hauptmann for the Lindbergh baby kidnaping slaying at Flemington N J they attempted to form a hu man ladder to peer into the Hunterdon county jail in the hope of glimpsing the defen dant Their efforts were In vain corporal when the powers which won the World War decreed that the Saar after 15 years of super vision by toe league of nations should decide whether to return to Germany unite with France or re main under the leagues guidance Freely Predict Reunion Most observers freely predict a reunion with the reich Only minor disturbances were re ported in yesterdays huge windup mass meetings This was interpret ed as a brilliant victory for the ple biscite commission which permit ted the rival factions to demon strate without serious clashes For this reason the possibility of a postponement of the vote consid ered Saturday because of fears of Sunday disorders presumably was abandoned Polls Heavily Guarded Polling places nevertheless were heavily guarded Efforts to break Jthrougjjthe lines to see the inner Treasurys Report Says Income Tax Receipts to Be Larger WASHINGTON jan 7 Federal spending at the rate of a month during the nrst six months of 1935 in a current fiscal year deficit of HS69ns33S and a gross debt peak room rushed to her aid She slid in to their arms She was weeping Walk Through Room Mrs Whateley rushed after her and the two walked slowly through the grand jury room to the office of County Prosecutor Anthony M Hauck Jr Justice Thomas W Trenchard the who is pre 25 Grand Jury Goes Into Session on Liquor Seal Gift Police Who Made Raid First Witnesses in Probe of Cooper Affair CEDAR RAPIDS Jan 7 Police officers who took part in the raid Dec 12 on the J LeRoy dcmiina Favraer Canning plant here were the f1 f charge of the fircf mi ic i r fruitless The first ballots will be guarde in safes and mixed with final vote for counting one week from today GUARDSMEN KEEP PEACE IN STRIKE Warn Georgia Hosiery Mil Pickets Violence Not to Be Tolerated ROSSVILLE Ga Jan 7 Warned by guardsmen no violence will be tolerated union strikers at Richmond hosiery mill marshalled a test of their strength today by trying to prevent newly recruited workers from taking their places National 350 strong by Adj Gen Lindley Camp and Col L C Pope were on hand with machine guns fixed bay onets and tear gas To demonstrate their determina jjVASKtNGTON Jan 7 e iuuJmls w j jfirst decision on federal new deal kindly paternal jurist Ration the supreme court to sidingi came into court mmutes held invalid the clause of the before time and followed by his wonal industrial recovery act un Negro chauffeur went directly to which the government is at his chambers where he was closeted curtail oil production for a time with Sheriff John H Cur said this decision would tiss affect the remainder of the re The courtroom filled rapidly f Maps Tacked Up I he decision was delivered by The maps put in evidence last IPf TllafJAn I1 tfcwv lief Justice Hughes FORECAST IOWA Cloudy rain in east nnd south portions Monday night and possibly in east Tnes Jay morning colder Tuesday MINNESOTA Cloudy Mon ly night and Tuesday colder uesday week were tacked up again on the rack behind the witness chair by Hunterdon County Detective Wil Ham O Rittenhouse As he was at work the jury sur rounded by its cordon of special guards took its seats The states legal battery arrived in a few minutes Then Hauptmann was brought in His face was very pale Col Charles A Lindbergh slim and boyish looking as ever in a gray suit came in a minute later but did IN MASON CITY not glance at Hauptmann Attorneys Come In The defense attorneys arrived al most simultaneously Mrs Ann Hauptmann engaged 41 I her hU9Dand in conversation as pho WbeGazette weather figures for tographers bulbs flashed hour period ending at 8 oclock Miss Gow marched to the stand 0ay morning short quick steps and seated simum Sunday 41 Above herself She smiled at Mrs Elsie iniranm in Night 25 Above Whateley another Lindbergh ser 8 A M Monday 27 Above vant who had been sitting with her vures for 24 hour period endin She said under direct questioning V oclock Sunday morningendinS by Attorney General Wilentz that i muinmS her namc Bcssie Mowat Gow and Saturday 43 Above sne lived in Scotland j jtiimum in Night 21 Above Where were you employed on Ijj j8 A M Sunday 26 Above 1 first witnesses called before the Linn county grand jury today as it began investigation of the Farmer case and the gift by Harold M Cooper chairman of the State Liq uor Control commission of 200 state liquor seals to Farmer The seals with a letter from Cooper to Farmer which accompan ied them were taken in the raid in which a liquor stock valued at was seized Farmer is charged with illegal possession of liquor The police witnesses included Chief of Police Ray Tapper Chief of Detectives Earl Stanley Detec tive Lyle Marshall Sergt Dale Cun ningham and Patrolmen Walter Kansky and Vergil Powell Two Cedar Rapids newspapermen and one from Des Moines also have been subpoenaed to appear before the grand jury Linn County Attorney G K Thompson declined to reveal whe ther Cooper will be called before the grand jury Cooper issued a state ment Saturday denying reports that his resignation had been re quested as an outgrowth of the if disclosure it from reports of night riders intimidating workers the military last night arrested six men who failed to heed quick enough the command to move on and later released them after ques tioning Man Credited With Bringing U S Into World War Is Dead CAMBRIDGE England jan 7 Alfred Ewing whose work in the intelligence department was credited by Lloyd George with hav ing brought the United States into the World war died today He was scientist was the brains be hind the admiraltys famous Room 40 in which German code signals were deciphered 16Per Cent Gain in Retail Sales During 1934 Over 1933 Seen NEW YORK Jan 7 MAn av erage gain of more than 16 per cent in the dollar volume of retail sales during 1934 as compared with 1933 is indicated in latest statis tics The improvement is ascribed in part in a survey by a standard sta tistics company to growing confi dence m the future on the part of consumers and to benefit derived lvy unnlll UtllVCd by farmers from subsidies and re lief payments Sam Falls 4 Floors and Breaks Up Party SAN FRANCISCO Jan 7 Sari Lim Ming Chinese broke up a dinner party in his plunge from a fourth floor window Sam crashed through a restaurant skylight and landed on the table where the party was gathered The dinner was ruined but Sam was only cut and bruised uuu a ciuoo uvuu UCclH of 531086633874 was forecast to day by Secretary Morgenthau in the treasurys annual report to con gress It estimated that expenditures for the year would be in cluding ror relief off set by receipts of The predicted deficit would be in excess of the actual deficit at the end of the last fiscal year on June 30 1934 Continuance Is Foreseen The secretary foresaw a continu ance of heavy operating losses due to emergency expenditures He es timated that the treasury would go farther into debt during the fiscal year 1936 when expenditures would amount to offset in part by receipts of resulting in a deficit of 54528508 970 and swelling the gross public debt to A sharp paring down in emer gency expenditure items in 1936 was forecastbut an expected out f bring tal of such expenditures to 011475 or only half a million les than expected in the present fisca period The secretary found a cheerin possibility in the estimate that in come taxes in the fiscal year 193 would improve by ove 1935 and amount to This he said would reflect the fur ther gains because of the moderate y higher incomes anticipated for the calendar years 1934 and 1935 Not Reflected Promptly Morgenthau pointed out that in view of the nature of the federal tax structure it was not to be expected hat revenues would reflect prompt y an anticipated improvement in business For example he said coliec ions of income taxes during the atter half of the fiscal year 1935 will be based on the business vol me of the calendar year 1934 and ncome tax collections during the seal year 1936 will be based on the olume of business of the calendar ears 1934 and 1935 Therefore it is anticipated that the rising level of business activity will increase income tax receipts only moderately during the remain der of the fiscal year 1935 and the fiscal year 1936 Certain miscellan eous internal revenue receipts not ably estate and gift taxes show a lag in tax collections behind changes in general business condi tions Receipts Are Estimated Total receipts from customs duties and internal revenue exclud ing agricultural adjustment taxes are estimated at for the new fiscal year beginning next July l if the temporary taxes ex piring June 30 and July 31 1935 REACH NEW PEAK ON JUNEJO 1936 Roosevelt Says Unemployment Only Bar to Balanced Budget Asks Control of 4 Billions for Relief High Spots in Message on Budget WASHINGTON Jan 7 ient points in President Roosevelts budget message The national debt will be in creased during this year fiscal year 1936 by approximately 152000 thus bringing the total debt up to on June 30 But this increase as I have pointed out will be due solely to continued relief for unemployment I recommend that 000 000 be appropriated by the congress in one sum subject to allocation by the executive principally for giving work to those unemployed on the relief rolls TEXT ON PAGE 8 WASHINGTON Jan 7 Terming unemployment the sole barrier to a balanced Presi dent Roosevelt stirred dissent in Locked in a loving embrace the bodies of Rosalind Dishin ger 17 and Walter Dean Cameron below 16 of Rushville Ind high school sweethearts were found in Camerons automobile Love let ters of the two were found strewn about hut officers said they were puzzled as to the cause of death Associated Press Passengers Tell Vivid Tale About Ships Grounding Went Calmly to Breakfast Before Braving Rough Sea in Lifeboats By TED GILL Copyright 1935 bv The Press MIAMI Fla Jan ed passengers who went calmly to breakfast before braving a sea in lifeboats told a vivid story today of the grounding of the Ward liner Havana on a Bahaman coral Unemployment is still large For this reason it is evidenftHat we nave not reached a point at winch a complete balance of the budget can be obtained Such deficit as occurs may be expected to decline as rapidly as private industry is able to reemploy those who now are without work The total expenditure require ments for the fiscal year ending June 30 1935 are estimated at ap proximately The esti mated expenditures for the fiscal 8e5200903ooOt00 nio nance his new work relief plan Despite the signs of ffrcat con troversy however his forecast of eakTPUbic debt of on June 30 1936 was ac eu by at tie nroh the jobkss Present a ptoblem that must be confronted f rapldly as Private industry Is to reemploy those who now between Bid to Industry In this sentence and given ewn finitely fa apfeHminary was industry to make read a lead a While democratic leaders ln gen eral agreed with his stand the lump S of the relief fund r c republican leader regretted 1 strUce a baance was disPatched for readingto the senate and conr 6 d0t congressional reaction the press dent was confined to the white nouse with a cold reef The ship struck the reef early Sunday while most of those on board were asleep but the passen gers arriving today on the freighter El Oceano said the impact when the liner grounded was so gentle While I do not consider it advis ble at this time to propose any ew or additional taxes for the fiscal ear 1936 I do recommend that the ongress take steps by suitable les lahon to extend the miscellaneous nternalrevenue taxes which under xistmg law will expire next June or uy and also to maintain the cur ent rates of these taxes I consider nat such taxes are necessary to the nancmg of the budget for 1936 I recommend extension of the 3 cent rate on nonlocal first class mail Allows for Spending new deal accounting The sum of must be available for transfer to emergency niinoiti LU emergency relief needs during the remaining months of the current fiscal year to June 30 Adherence to this budget will accomplish three major objectives 1 The normal functions of the HAMoreyMayorm Waverly Dies Was Serving First Term WAVERLY Jan 7 H A Morey of Waverly died Sunday night of a lingering illness He was icaring the end of his first term as are extended This figure repre sents an increase of over the estimated receipts in the present fiscal year and of 000000 over the actual receipts in the fiscal year 1934 Morgenthau said that failure to extend the temporary taxes would reduce the total internal revenue re ceipts by about and customs by about to a total of or 000 less than estimated receipts from these sources in the fiscal year 1935 The secretary said he expecte current corporation income taxe to yield in the fisca year 1936 an increase of 569000 Turn o face 14 Column J Huey Long Looses His Promised Attack on giuuaueu was so gentle WJ Lue that many were not awakened With economy and a high standard of pf ficiency The broad obligation of the government to use all proper efforts to prevent destitution can be main tained under more practical meth ods than we are using at present head of the local government F R Administration WASHINGTON jan 7 Huey Long loosed his promised at tack on the Roosevelt administra tion in the senate today asserting the consequences of the policies of the president are in line with gov ernment reports showing the rich were getting richer the poor poor er and the middle class fewer Speeds to Havana Another rescue ship the United Fruit steamer Peten sped toward Havana with other passengers tak en off the Havana The El Oceano landed here with 38 of the 51 pas sengers on the ships list and some of the crew while the Peten car ried 11 passengers and members of the crew One passenger identified as Rob ert Rittenhouse of Brooklyn N Y died of apoplexy in a lifeboat the only known fatality one other pas senger was not placed in the Incom plete check and Capt A W Peter son of the Havana said a sailor was missing Lifeboat Is Swamped The transfer of the passengers to the El Oceano was carried out in heavy seas without mishap except for the swamping of one lifeboat which was struck by a large wave A woman and her two children were swept into the water but were saved by a seaman The new deal accountingal lowed for the spending of 101 1B two year period end mg months hence total asked for the year bp next 1 was 58520413 609 with receipts estimated at S3 39 This would mean a 70 deficit compared with 833S exected for the yC closing next June Congress was informed the ernments income would meet all expenditures except those to irive work to the unemployed Mr Roosevelt did not consider it ad visible at this time to propose new taxes but asked the continuation of existing levies No Inflation Need To newspapermen the president said there was no need for infla tion to finance his huge 1936 bud get The treasury planned to borrow needed funds But he warned rimul taneously that extra appropriations by congress must be paid for witli new taxes Significantly there was no budget provision for cashing the 52100000000 soldiers bonus fTurn In fast 14 Column and The excellent credit of the goverment will be maintained for the common good I think most people aboard the Havana didnt know what hap pened said T E Francis of Bos on one of those picked up by the El Oceano Although it had been raining it was bright sunlight when the boats vere swung over the side I boarded he El Oceano absolutely dry Dr Howard Fox New York ohv ician said the first he knew of the ccident was when a steward came Turn o Iasc H Column 3 14 Go on Trial for Alleged Plotting to Upset Government HILLSBORO 111 Jan 7 niinois treason code charges against 14 relief demonstrators indicted for conspiracy to overthrow the government were called for trial again today today was granted Dec 3 by Judge Paul Mc Wilhams of Litehfield after the de fense had taken a change of venue disqualifying the regular judges Selection of the jury is expected to take several days Badly Hurt in Fall COUNCIL BLUFFS Jan 7 Walter Reed 48 suffered a possible fractured skull and was taken to Omaha hospital after losing iiis bal ance and tumbling down a fiiht of steps in Omaha WATCH EUROPE With conditions as they are over seas anything may happen within 24 hours War may not come but the situation is sufficiently tense to make it a strong possibility With so much interest centering in Europe the new map available through our Washington information bureau is especially desirable It enables one to understand the cable dispatches and is invaluable as a handy ref erence The map shows old and new boundaries gives old and new spell ings of the names of capitals and other major cities and carries all the fundamental economic data It is in reality a condensed atlas Send 10 cents for this useful map Use coupon The GlobeGazette Information Bureau Frederic J Haskin Director Washington D C I inclose 10 cents in coin care fully wrapped for the Map of Europe Name Street City State Mail to Washington D C ;