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Mason City Globe-Gazette (Newspaper) - January 15, 1947, Mason City, Iowa HISUHYAND ARCHIVES 2 KOINES I A NORTH IOWAS DAILY PAPER EDITED FOR THE HOME THE MAKES ALL NORTH IOWANS NEIGHBORS VOL LIU Associated Press and United Press Full Leased Wires Five cents a Copy MASON CITY IOWA WEDNESDAY JANUARY 15 1947 This Paper Consists of Two One No Vt GEORGIA GOVERNORSHIP IN TANGLE 1ST SCHOOL AID BILL IS PLACED IN LEGISLATURE Proposes Benefits From Personal and State Income Tax Proceeds DCS Moines The first Ischool aid bill of the 1947 session introduced in the Iowa legis lature Wednesday i The measure proposes that all net proceeds from personal and Uate income taxes be appropriat jd for benefit of school districts jt was introduced in the senate linder sponsorship of Senators Irvmg D Long RManchestcr knd A D Clem RSioux 1 Returns from individual income axes now are grouped with sales jaxes and other revenues for pay Wnt of old age assistance school ilid and other purposes The income tax produces around 7000000 revenue a year The LongClem measure pro ides that such revenue be segre ated by the state treasurer into personal and income tax fund he money would be distributed to ijie various public school districts proportion to the number of apils i Meantime the state income tax is involved in proposed legisla jl in of a different type in a bill onsored by a house member i An estimated 200000 lowans in e lower income brackets would exempted from payment of the ate individual income tax under bill prepared for introduction ednesday in the Iowa house of I ipresentatives i The measure prepared by Rep 1 harles S Van Eaton RSioux would 1 Lower from 5 to A per cent the maximum tax im bsed 2 Increase the deductions i lorn the computed tax 3 Raise ie gross income upon which in 1 tax returns must be filed revenue from this group j ihose in the lower income brack s is so low that the cost of pro jssing estimated to be approxi 1 ately per report filed is not i Mstified Van Eaton said raising the gross income which income tax returns i iust be filed further administra j cost is eliminated because lany nopay returns are elim I he added l Van Eaton emphasized this j ould especially benefit small usinessmen whose establishments s re not incorporated At present any single person an income of SI000 a year si nd any married person having an ncome of a year is subject paying the tax Everyone whose Sf hcome is at or above those levels Si nust file a return even though iJHxemptions result in the nopay y Returns i1l Van Eeaton would raise the on single persons from to and the limit on persons from to I J52000 a year The deductions be raised as follows Single to married per 4 sons to and each depend to Sjji The Iowa senate Wednesday bdopted on a voice vote and sent to the house a concurrent resolu 4ijtion memorializing congress to remove all controls on sugar ijjj The first bill to pass either jjljhouse of the 1947 Iowa legislature 3cleared through the senate Wed slilnesday 2 days after the session jconvened ill It was a minor corrective meas gi jureintroduced by the special sen committee The measure provided that certificates be approved by athe national office of vital sta Jitistics instead of the bureau of census The bill was sent to the i house i Six new bills were introduced i in the house Wednesday bring V ing the bill total there to 42 j One whose contents previously i were described would require the registration of lobbyists another would provide for adult educa tion classes in public schools and a 3rd would authorize cities and towns to acquire and lease park ing lots i In the senate a measure was t introduced Wednesday by 4 sena tors to change the pay basis of municipal and school examiners employed by the state auditor j Examiners now get a day j maximum The new bill would permit them to receive a maxi V mum of a year and ex y penses 1 2Pcmts Suits on in Boston Boston UP Twopants suits Cvent on sale here Wednesday Described as allwool the suits offered in the bargain basc pent of William Filenes Sons Co vid priced at j iViThe store claimed to be the first i offer the doubleduty garments ace the wartime ban was lifted Disarmament Group Urged by Australia Lake Success N T tralia in a compromise move pro posed Wednesday that the United Nations security council set up an 11 member disarmament commis sion and speed up consideration of atomic energy control The proposal was admittedly meant to reconcile differences be tween the United States and Rus sia on how best to approach the arms and atomic problems Norman J O Makin chairman of the council and Australian am bassador to the United States sub mitted a resolution providing 1 For a disarmament commis sion to work out arms limitation proposals 2 For the atomic energy com mission to continue its work on atomic controls 3 For the military staff com mittee to draft proposals for the United Nations international po lice force to preserve world or der 4 For the disarmament com mission the atomic energy com mission and the military staff committee to submit reports be fore April 30 5 For the security council to expedite consideration of the first report of the atomic energy com mission which contains the Unit ed States plan for atomic control Before Makin introduced his resolution Dr Quo TaiChi of China supported the United States position that atomic energy should be given top priority in the arms limitation study China also supported a Rus sian proposal for a commission to draw up plans for arms regula tion The United States Russia France and Australia now have resolutions before the council suggesting varying ways of ap proach to the arms problem WarrenrR Austin former U S sehat67 took hisseat Wednesday as the U S delegate NAB WAA MAN AND EXGONVIGT FBI Hold 2 on Charge of Defrauding U S Washington Director J Edgar Hoover announced Wed nesday the arrest of a warassets administration official and an ex convict on charges of fraud Hoover identified the menas George A Gormley an exconvict and Louis V Dionne WAA ex pediter and said they evolved a scheme to obtain textiles through alteration of sales documents at a sale conducted by the WAA in Alexandria Va Both are residents of Washington D C Hoover said both men are charged with a violation of the fraud against the government statue in that they caused a forged document to be presented to the United States government The investigation thus far Hoover said has resulted in the recovery of textiles costing the government This amount of goods was seized in New York storage firm after being traced from a terminal of trucking firm Hoovers announcement said the 2 men reportedly met at a Wash ington hotel bar last November and thereafter conceived a plan which assured the delivery to Gormley of more highgrade wool en goods from the government warehouse than he had formerly purchased and paid the Alexandria sale SENATORS HOLD BILL HEARINGS ON PORTAL PAY Capebart Warns Suits Threaten Existence of Thousands of Businesses Washington fP Senator Capehart RInd said Wednes day the potential loss to the treas ury from portaltoportal pay suits is so great that taxcutting must be delayed until some rem edy is found The Indiana lawmaker also told a senate judiciary subcommittee that the portal pay ready totalling more than 51000 the very ex istence of thousands of businesses and industrial units Capehart was the first witness at a hearing on separate bills which he and Senator Wiley R Wis wrote to outlaw or curb pending as well as future portal suits The magnitude of the economic problem presented by the so called portaltoportal suits im pels immediate action on the part of congress Capehart declared These suits stem from a su preme court ruling that workers are entitled to pay for time whether productive or not they are required to spend on an em ployers premises Capehart testified that if the pending suits are successful even in a minor degree the result in evitably would be loss of tre mendous sums of money in fed eral revenues due to reductionor elimination of tax liability and the greatly increased direct cost of goods and services to the fed eral government He added In fact the potential loss to the government is so great thatI canT not see how wecanevert consider reducing the tax burden now unless congress enacts legislation to remedy this situation The Indiana senator suggested that the subcommittee call before it the secretaries of commerce war and the navy as as other top federal officials to tell how these suits might bear on the fis cal aspects of their departments Capehart an industrialist him self said we are facing a na tional problem wh i c h if not promptly solved may have dis astrous consequences on produc tion and commerce One of the big questions about the moves in congress to outlaw pending suits is whether the pro posed legislation is constitutional Capehart said he wanted to em phasize that I have conferred wfth leading attorneys who have given exhaustive study to this problem and they have assured me that the pending amendment to the fair labor standards act fully meets the test of constitu tionality The subcommittee headed by Donnell is counting on hearing at least 15 witnesses by next Monday Don nell declined to announce the full list saying only that representa tives of both labor and manage ment also will be heard Wileys office said the CIO whose unions have filed most of the pending suits has asked to testify Milk Goes Down Davenport reduction of 1 cent in the price of milk effec tive Thursday was announced Wednesday by the QuadCity Milk Dealers Association The present price is 18 cents a quart A de cline in farmers prices madethe reduction possible officials said British Challenge Russian Claim to Spitsbergen Group Spokesman Says Russia Bound by 1920 Treaty on Demilitarization London JP A foreign office spokesman challenged Wednesday a new soviet claim to the Arctic island of Medvezhi in the strate gic Spitsbergen archipelago and said Russia remained bound by the 1920 international treaty de militarizing the islands The soviet news agency Tass soviet cir cles said Medvezhi actually was a Russian island and announced that Russia and Norway had agreed on the necessity of joint defense in the area We are unaware that the soviet union have any valid claim to any island in that region the spokes man said That is Norwegian territory Tass said the 1920 treaty could not remain valid because its sig natories included nations which fought against the allies in World war II These were Italy and Japan The foreign office official said Britain could not accept that view He remarked that many existing treaties bore the signatures of ex enemy states including the Mon treux convention and the Haggle convention and said it has never hitherto been suggested that they be renegotiated because of this fact Britain has no knowledge of any sovietNorwegian agreement on the necessity of joint defense the spokesman said The 1920 treaty he added provided that the islands should not be used for what he called warlike pur poses The Tass story was broadcast by the Moscow radio Tuesday night Negotiations for revision of the treaty the broadcast said were instituted by the Russians with Norwegian representatives in 1944 and 1945 and an understanding was reached about the necessity for joint defense of the islands Senate Group Plans Labor Bills Hearing Washington Chair man Taft ROhio announced Wed nesday that the senate labor com mitteewill open a consolidated learing on ail pending labor pro osals Jan 23 The goal is to lave some legislation ready about Vtarch 1 he said Taft said this program was unanimously agreed upon at an rganization meeting of the senate abor committee The Ohio senator told reporters he hearing will first touch upon fie comprehensive labor bill of ered jointly by Senators Tail Ball RMinn and Smith R J and a proposal by Senator Murray DMont and 8 other democrats for an overall study of abor problems by a commission composed of congressmen and public representatives named by he president Then Taft continued the hear ng will consider all other bills and resolutions having the object of reducing industrial strife in the United States Taft said this would include 1 All bills dealing with organ zation and responsibility of labor unions 2 Proposals for labor courts and compulsory arbitration 3 Proposals for mediation and conciliation 4 Proposals regarding the closed shop and nationwide col ective bargaining 5 Bills amending the national abor relations act Outlining a program for speed on labor legislation Taft said the ull labor committee will conduct learings all day on Tuesdays and Thursdays when the senate s not in session and on Monday Wednesday and Friday forenoons when it is meeting Taft said Secretary of Labor Sohwellenbach will be invited as an initialwitness to be follower by other government officials anc labor relations experts Next wil come sponsors of various bills and finally representatives of organ zed labor and other groups AP Wirtphoto GEORGIAS GOVERNORSHIP IN SQUABBLE Top picture Georgias governors meet in the statehouse at Atlanta Wednesday morning Herman Talmadge right fac ing camera standing with his mother the widow of the late GovernorElect Eugene Tal madge is greeted by Ellis Arnall left as he refused to surrender the governors office after the general assembly had elected Talmadge Wednesday morning to serve the next 4 years Lower picture Fists fly outside the governors office Wednesday morning in this brief encounter over the governorship of Georgia Striking London Transport Workers Reject Peace Offers Sympathy Walkouts in England Spread as 17000 Stevedores Quit London London transport workers Wednesday re jected official overtures toward a settlement of the of some 65000 men which paralyzed the London docks and menaced the citys entire economic structure Delegates of the relatively small group of London truck drivers conferred for 6 hours with officials and then in a private meeting turned down offers designed to put them back on the job While the negotiators bargained and bickered sympathy walkouts spread The London docks were tied up when about 17000 steve dores quitworkin an extension of the labor protest against the use of British troops to move vital foodstuffs The ordinarily teeming Thames river was virtually clear of com mercial activity with nearly 40 freighters left stranded Big quantities of foodstuffs were tied up despite the effortsof the mili tary to keep them moving The decision of the strike lead ers meant that the tieup already pressing hard on the supply lines to London dining tables probably would spread even further The strikers committeemen de cided to meet again Thursday But whatever hopes there were for a settlement were dimmed by the vote to keep the men out in de fiance of the powerful Transport and General Workers union The position remains virtually the same said Arthur Deakin secretary of the TGWU who took part in Wednesdays conferences We have adjourned until Thurs day when a further meeting will take place with the strikers com mittee On the docksides revolutionary communist Trotskyite party members distributed yellow pamphlets urging no compro mise A stampede from their jobs by more than 100000 workers ap peared possible unless troops were withdrawn from handling strike bound food in London markets and a quick settlement reached Moderate Snowstorm Moves Across Central and Southwest Iowa BV THE ASSOCIATED PRESS A moderate snowstorm moved across southwest and central Iowa Wednesday and shortly before noon had moved as far east as Newton The weather bureau said inter mittent light snow would fall un til morning and that most central and southern points probably would receive about 2 inches as the storm moved eastward across the state Rail and bus lines said the fall had not interfered with schedules but bus drivers said at noon that the highways were becoming slip pery in the snow area Weather Report FORECAST Mason City Cloudy with light snow Wednesday night and Thursday Somewhat colder Wednesday night with lowest temperature about 5 to 10 Iowa Cloudy northwest and light snow south and east portions Wednesday night and Thursday somewhat colder Wednesday night Lows Wednesday night ranging from near 5 above northwest to 28 extreme south east Highs Thursday 15 north west to 30 southeast Minnesota Partly cloudy contin ued cold Wednesday night In creasing cloudiness and not so cold Thursday IN MASON CITY GlobeGazette weather statistics for 24 hour period ending at 8 oclock Wednesday morning Maximum 35 Minimum 15 At 8 a m Wednesday 15 YEAR AGO Maximum 31 Minimum 3 Free Palestine League Vice President Held by British Officials London J Smerten ko vice president of the American League for a Free Palestine flew to Croydori airport from Paris Wednesday despite a British gov ernment ban on his entry and im mediately was detained by immi gration authorities The Russianborn United State citizen was accompanied by 2 American newspapermen who satisfied authorities that their pa pers were in order However the pilot of the private Messer schmitt plane which took Smer tenko across the channel was de tained The Ohio river is 975 miles long and the area drained by it is com puted to be 110000 square miles CHARGES HIGH SALES PROFITS Senator Ferguson Hits Buying for LendLease Washington Fer guson R Mich declared Wednesday that inordinate prof its were made on sales of smal hardware items to the treasury procurement branch for lendlease during the war Ferguson told the senate that the war investigating committee has turned up instances where contractors having no manufac turing facilities were paid prices 50 to 1000 per cent higher than the manufacturers price He spoke in favor of extending the life of the special committee In the cases examined by the committee doing business in this fashion has cost the governmen over the manufacturers actual price he said Senator Elbert Thomas D who was a member of the joint committee which drafted the congressional reorganization law spoke at length against continuing the committee Polish Government Tells U S It Will Run Election Own Way Note Rejects Claims by Western Powejrs of Intimidating Voters Polands commun istbacked provisional government told the United States Wednesday it intended torun Sundays par liamentary elections its own way regardless of whether Britain and America liked it The new note handed to U S Ambassador Arthur Bliss Lane by the foreign ministry rejected as unfounded allegations by the western powers that suppression coercion and intimidation of vot ers and repressive measures against Vice Premier Stanislaw Mikolajczyks Polish peasant par ty violated Potsdam and Yalta guarantees of free and unfettered elections The government contended it was fulfilling all obligations un dertaken at Potsdam and com mented that the election of parlia mentary representatives was a matter within the exclusive prov ince of the Polish people The note crisply concluded with the obser vation that since the balloting is scheduled for Sunday further dis cussion would be fruitless The new note was much shorter than the one recently 1 submitted to Britain in which the govern ment maintained it was not was failing ti live up to international obligation agreed to at Potsdam British Am bassador Victor CavendishBen tinck now is in London for confer ences concerning Sundays voting This new diplomatic snu seemed to crush what little doub remained that the communist dominated government bloc par ties would sweep the elections a government leaders have beer predicting for some time Opposition leaders declarer Tuesday armed progovernmen gangs were spreading such terro among antigovernment force that the last hope of free un fettered balloting had vanished Mikolajczyk said the governmen bloc had refused to allow Polish peasant party watchers at th polls unless recommended by bloc controlled sheriffs He said tha meant the bloc would have ex elusive control over conduct o the elections President Boleslaw Bierut de nied the accusations at a new conference and also verbally re jected the allegations in the Amer Scan and British notes declarin the charges were not supported by documented evidence ARNALL WONT GIVE UP POST TO TALMADGE Legislature Elects Son of Late Executive But Arnail Defies Act Atlanta Arnall who n the early morning hours defied hreats of a yelling mob to oust him held to the office of governor of Georgia Wednesday while Her man Talmadge named to the post y the legislature set up shop out ide Talmadge arrived at the capitol ihortly after a m and was ushered into a small room off the governors reception room where Ldjl Gen Marvin Griffin had ct up his office Arnall who left the capitol in he early morning under protec ion of national guardsmen after refusing to relinquish the office had not returned when Talmadge arrived this morning His entire staff was on duty however and a ecretary said the governor is on he way to the office Arnall returned shortly after Talmadges arrival As his first ct he installed Col R W Collins lead of the state guard as adju ant general Arnall told Collins that the state guard would be placed under he military department Shortly after his arrival Tal madge conferred with Adjt Gen riffin who previously had served under Arnall Griffin who was sworn in by Talmadge shortly after his election told newsmen IB was taking orders from the new governor Griffin was not in uniform After talking with Griffin Tal madge called newsmen into his office and said that he hoped to exercise the powers the gover norship without but that the national guard was ready to function in any erner ency I dont expect to have to use any force the son of the late Eugene Talmadge who died before taking the office to which Herman was named Tuesday night said Although I understand that Governor Arnall is now sur roufided by certain units of the state guard The national guard jave him protection Tuesday night at rny request Early Wednesday morning the legislature elected Herman Tal madge to the office in a tumultous icssion Arnall refused to relin quish the post and was escorted From the capitol unhurt by na tional guard officers and close as sociates who barricaded the doors of the executive chamber to save turn from violence In a brief dramatic encounter Arnall told the youthful son of the late Eugene Talmadge I cannot surrender to a pretender Talmadge escorted by a com mittee of 25 legislators and fol lowed by whooping surging fol lowers pushed into Arnalls of fice at a m It was a quarterhour after the legislature had named him to the 4 year term which his father Eugene Tal madge didnt live to serve I presume he said that you have been informed that I have been elected as governor by the general assembly of Georgia Replied Arnall I understand the general assembly allegedly has elected you but the general assembly cannot elect a governor Accordingly I respectfully but firmly refuse to yield the office to you whom I consider a pre tender After a brief exchange Tal madge demanded Do you defy the committee and the general as sembly of Georgia I do not replied Arnall sharply But I uphold the law I cannot surrender to a pretender Talmadge turned to reporters saying aside I hope the press gets this Then he addressed Arnall I hope you will not continue to thwart not only the people but the express direction of the gen eral assembly It is not my inten tion as chief executive to create a scene or disorder I intend to set up offices at such places as are available and conduct the of fice of governor Returned Arnall I likewise ac cede to that same position and will continue to serve as governor of Georgia Well see said Talmadge turning on his heel Ypu were nice to come in said Arnall pleasantly to Talmadges back As Talmadge pushed through the crowd outside a group sought to force its way into the executive office but was blocked by r T McCutcheon Arnalls executive secretary An exchange of words led almost immediately to a fist fight which milled for 2 minutes in the governors reception room McCutcheon retreated into Ar nalls private office and barred the heavy door against the mob ;