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Mason City Globe-Gazette (Newspaper) - January 23, 1947, Mason City, Iowa NORTH IOWAS I AST WE NT Or AND AvC 1S I Ml U I DAILY PAPER EDITED FOR THE HOME VOL Ajsodaled Pteg and United Press Full Leased Wires Five Cents a Copy MASON CITY IOWA THURSDAY JANUARY 23 THIS Paper Consists ol Two one NO 89 FEDERAL GRAND JURY INDICTS MAY IOWA SENATORS TACKLE INCOME TAX MEASURES Question ol Levy Is Expected to Be Hot Issue Among Solons Des Moines senate met as a committee of the house Thursday to begin work on the tax study committees bill to con tinue individual income taxcol lections atthe half rate with in dications that battle lines on the controversial measure may shape up before it reaches the floor next week The senate first heard from Lewis Cook director of research for the Iowa tax commission an overall picture of the states fi nancial condition as it now stands I and as it may be under current I tax laws a few years hence 1 Cook said that as of nextJune 30 the state will have an actual J cash surplus of from which 20 to 25 millions safely may be appropriated by the 1947 I legislature He predicted that tax revenues which hit an all time peak in 1946 would remain fairly stable during Ithe next 2 years but said the should look forward to Ithe future when lower returns I from present taxes are bound to I come I Cook said that actual working 1 balance in the state general fund I used solely for operation of the state government is now iOOO and that he did not regard I this sum as being too much of a Ireserve against future contingen ics The senate planned to continue lits committee of the whole session Ito hear other tax experts before Igoing into the discussion of the tax rate which some law Imakers want collected at the full to provide fundsfor school I Alsobefore the senate session Iwas a companion measure offered Iby the tax study committee which I would allow the state executive I council to restore the income tax Sto the full rate in any year when I revenues were needed This pro posed power is designed to avoid lany state levy on general prop prty for state purposes The house in a short session Thursday passed and sent to the jsenate 8 minor bills and a resolu tion Most important of the bills passed was one to repeal a sec Ftion in the law excluding clerical I workers from the definition of under the workmens I compensation law I The resolution provided for of presession house and senate expenses All of the bills passed were ap Dispute Over Governorship Ties Up Funds Atlanta Georgia rev enue collections and the operation of the states highway department have been tied up by the dispute over the governorship State Treasurer George B Hamilton disclosed Thursday Hamilton who receives tax col lections from the revenue depart ment and pays out warrants for its operation and who receives all federal funds allotted to the Georgia highway department said difficulties over bonding of key officials raised legal to his recognition of appointees named by Herman Talmadgc Rival administrations were ap pointed both to the state revenue commission and to the state high way department by Talmadge who was elected governor by the legislature and by M E Thomp son who claims to be acting governor in succession to Ellis Arnall resigned In the highway department Hamilton said the Talmadge ap pointed treasurer has not been confirmed by the state senate and hence transfer of bond from the previous treasurer is illegal In the revenue department Georgia law requires bond of the commissioner to be approved by the attorney general Bond of posted by Talmadgerap pointed Charles Redwine lacks the approval of the attorney gen eral who refuses to recognize Talmadge as governor and who has already given approval to the bond of Thompsonappointed Stonewall Dyer Earlier Thursday Talmadges gubernatorial rival M E Thomp son announced he had been recog nized as acting governor of Georgia by the Fulton National bank of Atlanta which cashed without question the first ex ecutive check drawn since he took office Thompson said the check for was for postage and badbeen presented in person by drum Thompsons secretary of the executive department It was drawn against approximately which was turned over to Thompson by retiring Governor Ellis Arnall DOG INHERITS indifferentTcThis inheritance of Duke a 13 year old Shepherd is shown with Mrs M M Leatherman Liberty Mo The dog named chief beneficiary in the will of Mrs Martha Mado lyne Benson will be quartered in a dog hospital After the dogs death the money will go to the Childrens Mercy hos pital and the Mary Catherine home for the blind proved by large majorities most of them without a dissenting vote Other bills passed included One to allow reinstatement of an expired watchmakers certifi cate without an examination Another to require foods to conform to federal standards where no state standards have been fixed Another measure dealing with taxes the county assessor bill will get a public hearing next Wednes day The senate tax reyision com mittee has set a hearing on the bill for that time The measure proposes creation of a system of county tax assessors Meanwhile committee reorgan ization in both houses n e a r e d completion More bills were be lingfiled in the house and senate land still other measures were in preparation stage The grounds for divorce would be enlarged to include incompati Jbility and insanity under a bill I introduced in the house Wednes Iday by Rep C E Bryson KIowa I At present the grounds for r divorce in Iowa are cruel and in Ihuman treatment desertion I drunkenness adultery and convic jtidn of the mate on a felony I charge Senator Elmer K Bekman R jOttuma and several other sena j tors sponsored a bill to permit in I digent tubercular patients to ob I tain free treatment in public tu berculpsis sanatoriums A bill was expected to be in jtroduced in the house Thursday Jby Rep Wilson Reed RFair 1 field to increase the maximum I workmens compensation payment Ifrom for 18 weeks to for 120 weeks Reed said he also had filed for introduction a companion bill to Jincrease the amount paid for nursing care In workmens com Ipensation cases Several others Herman Talmadge rival gov ernor by virtue of election by the Georgia general assembly said Wednesday in a news con ference he expected to have cus tody of the executive funds in time to meet his payroll Feb 1 Thompson said Thursday I think this answers Mr Talmadge Representative Taber Plans to ASK DISMISSAL OF VITAL SUIT ON PORTAL PAY Justice Department Says Time Involved Too Small to Consider Washington justice department said Thursday that the famous portal pay suit of the Mt Clemens Mich Pottery com panys employes should be dis missed unless new evidence gives more substance to their claims It was the supreme courts de cision in this case which touched off the current series of portal pay suits now aggregating more than The justice department took its stand in a brief filed with Fed eral Judge Frank A Picard the trial judge whose original finding in favor of the pottery employes was sustained by the supreme court The brief was filed with Judge Picard in New York where he is trying cases but copies were made available to reporters here Picard made the portal pay ruling in Detroit where he normally sits The principle he set which the supreme court is that workers are entitled under the wagehour 40hour week law to pay for time controlled by employers That means time spent on the companys property in preparing for actual productive work as well as the time spent in productive work itself While upholding the principle the supreme court directed that ALICE DEVINE Kidnaper EARL SHELTON of Suspicion Devine Girl Says ExConvict Not Man Who Kidnaped Her Sacrifices Life to Save Grandson Venice Cal Noble 63 sacrificed his life Wednesday that his grandson might live Freeman E Murphy bus driver told police that David Miehlman 4 dashed from a curb into the bus path Noble jumped after him shoved the youngster to safety but was struck and instantly killed himself David was taken to a hospital with head lacerations Al Scarface Capone Entirely Out of Danger Miami Beach Fla face Al Capone prohibition era gangster whose rackets netted him a fortune Thursday was reported entirely out of danger barring Physicians had life following a complications feared for his paralytic stroke Dr Kenneth Phillips said that the 48 year old former Chicago underworld king had rallied from a coma and that he would not be needed unless Capones condition changes for the worse Chairman of Committee AdoptsWhy WaitView on Federal Finances Washington JP Adopting a why wait until next year atti tude Representative Taber R N Y said Thursday he intends to balance the federal budget this year Taber chairman of both the house appropriations and joint senatehouse budget committees already has disclosed plans to 1 Use a sledgehammer on the 1948 budget and 2 Resurvey all 1947 spending programs which still are awaiting actual outlays of money Thursday Taber said he will go one step digging into appropriations actually voted by the last congress The objective will be to recapture some of the money not yet spent Shaking a finger at OPA the commerce department and the army and navy the New YoVker told a reporter My studies indicate very large sums that can be cut back from appropriations already made af fecting many government depart ments Also I believe the administra tion has underestimated revenues in the current year by 000000 I believe we can balance the budget this year as well as next year I have talked with representa tives of many government depart ments and members of congress he said Why over at OPA they still have 15000 employes with 7500 doing absolutely nothing Theres a sample of what I mean Then theres the commerce de partment Anybody can walk over and see They dont have to take my word for it A lot of the new units are sitting around doing nothing There are setups in the social security administration that need trimming Over in the navy they have some setups where 5 men are do ing what one man should One man i Know took a walk through the Pentagon and he counted until he got to 65 officers and other army employes He couldnt count 5 of them work ing I am finding that these samples represent the usual picture France Rejects U S Request to Send German POWs Home homes without was revealed Thursday The French made a counterproposal that a 3rd probably a Dongovernmental agencybe asked to study the problem and pre pare a longrange plan of repatriation sovernments Position was that manpower shortages retain the German prisoners use them on French farms and factories VE dayfor France to iad joined him Reed said as in troducers ofthe bills I A group of house members were Iilanmng a sale barn regulation Ineasure similar to one introduced the house in 1945 which never T ot out of committee House mem iers said the sale barn measure iitroduced in the senate Wednes gay was largely a police bill in JHat ll was essentially a law en rSrcement measure The United States is concerned because the Germans actually are American prisoners of war They were captured by U S forces and turned over to the French for custody in the closing days of the war French unwillingness to return these prisoners makes it difficult for the United States to press its case with Russia on the following prisoner issues 1 The 800000 Japanese prison ers that the Soviets are still us ing at forced labor in Siberia The United States and China have repatriated several millions and consider their job completed I 2 The undisclosed number of German prisoners that the Rus sians stili hold The Russians have never given an official accounting of these Former Secretary of State James F Byrnes took the initiative in trying to get all prisoners re turned home last fall He was preparing for the forthcoming German treaty negotiations and wanted the U S to have clean hands when it came to discus sion of prisoners of war He asked the French Belgians Dutch and Luxembourgers to take rnmediate steps to release prison ers turned over to them by the Americans All but France an iwered satisfactorily PLAN BEER BILL IN LEGISLATURE Mason City Senator Among Sponsors of Act Des Moines fP A proposal which would give local governing bodies wide powers in restricting sale of beer virtually outlaw rural taverns and double the state beer tax was prepared for intro duction Thursday in the Iowa sen ate Senator Herman M Knudson RMason who with ap proximately 25 others sponsored the measure said it probably would be introduced formally be fore day was out A major provision of the biU would give town and city councils complete discretion in deciding whether to issue beer permits At present permits must be issued to all applicants who meet legal re quirements The proposal also would 1 Increase the state beer tax from 4 cents a gallon to 8 cents a gallon with the additional revenue to be alloted to cities and towns to use as they wished The 4cent beer tax yielded in 1946 i 2 Restrict taverns to business areas and prohibit onsale beer business outside of municipal lim its except in private clubs or or ganizations 3 Generally divorce the sale of beer and food except in hotels railroad dining cars and bonafide clubs Although not strictly a local op tion measure some sponsors in dicated it would give local govern ing bodies virtually the same pow ers as local option so far as beer was concerned Judge Picard still must decide the amount of claims to be allowed workers The j ustice departments posi tion in effect is that as the record now stands the amount of time the Mt Clemens employes spent in preparing for work is so trifling that it is unworthy of considera tion By that argument the amount of claims the workers would be entitled to is zero However the justice department said Picard should take further evidence to determine whether more time is involved than has been brought out in the legal pro ceedings thus far As things now stand the brief declared It is submitted that if the find ings of this court based upon the evidence do not disclose periods of preliminary activity of longer duration that those appearing in the present record the de minimis rule would be applicable and therefore the action should be dismissed The de minimis rule means lit erally the law does not concern itself with The justice department inter vened in the case as a friend of the court This is a legal pro ceeding whereby a party with an indirect interest is sometimes al lowed to be heard in a case not involving him directly Testimony before congressional committees has been that the governments in direct interest through effects of the ruling on other cases may run into billions of dollars in taxes and in revision of war contract terms Plainly the brief continued an employer is not entitled to de duct trifling personal pursuit pe riods in computing the work week Alice Tells Police Her Identification of Photo Was Erroneou Lodi Cal Alic Divine was brought face to fac with an exconvict at a secret pre dawn rendezvous Thursday an after studying his face in th glare of automobile headlights sai positively that he was not th man who kidnaped her She admitted her identificatio of Earl Shelton from an 8yearol police photograph was erroncou after facing the San Francisc charm school operator at a meet ing arranged by her parents Lodi police Alice and her mother and fathe were waiting in the family auto mobile on a lonely country road o the outskirts of Lodi early Thurs day Out of the darknesssom distance away came the gleam 6 headlights from Sheltons car The approaching car came to stop and Alices father switched on his headlights The door of the other automobile opened and Shel don stepped out He walked back and forth in front of the head lights slowly and carefully fac ing Alice and her parents who sa tensely in their car That is not the man Alice sai emphatically Shelton who had surrenderee voluntarily to San Francisco po lice Wednesday night after learn ing that he was a suspect in the case stood still for a moment when he heard voices from the Devine car Then Lodi Police Officer Pat Conn got out of Sheldons car and led him close to the Devine car where he engaged him in conver sation The Devines listened close ly to the sound of Sheldons voice No that is not the man Alice said Her parents agreed Shelton at no time was under and by the same token the em ploye should not be entitled to the addition of trifling periods of pre liminary activity And where under the existing customs and practices there is liberality on the part of the em ployer in permitting employes to devote short periods of time to personal pursuits and needs there should be comparable liberality in applying the de minimis doctrine to walking and makeready activi ties It may be found that none of the periods of walking and make ready activity involved were or should be regarded as sub stantial arrest After Alice and her par ents all agreed that he was not her abductor Lodi Police Chief Mil lard Fore announced that he was free from suspicion Shelton is eliminated 100 per cent from any connection with the case by the parents and by the girl he chief said When Shelton was questioned by San Francisco police Wednes day night 12 witnesses who at tended his charm school testified that he was busy at the time of the kidnaping Monday teaching 25 San Francisco beauties how to be fashion models He agreed however to go to Lodi in his own car with 2 police men to clear himself completely It had been announced earlier that 17yearold Alice would face him later in the day After the rendezvous Shelton was brought to the city hall where he talked with Police Chief Fore and reporters Wearing a plaid coat and very selfpossessed Shelton asked Fore if a picture of William Giles the man who supposedly kidnaped Miss Devine Id like to see it he said Its caused me a lot of trouble The police photograph which had been tentatively identified by Alice and several other people as that of the kidnaper was shown to him Miss Devine said she was kid naped by a man who ostensibly wanted to have her picture taken for a national weekly magazine She said he bound and gagged her and stuffed her into the small trunkof a 1931 model Ford sedan Later that night her father J Edward Devine received a tele phone call asking him to look in a woodpile at his home for a note The note demanded for the safe return of his daughter The police teletype pickup bul letin still stood for Everett Wes cott Stiles 42 years 5 feet 8 inches all weighing 165 pounds dark EXLAWMAKER 3 ASSOCIATES FACE CHARGES 4 Men Are Accused of Conspiring to Defraud U S in War Contracts Washington Gen eral Clark announced Thursday the indictment of former Rep An drew J May DKy and 3 of ficials of a wartime munitions combine nn charges of conspiring to defraud the government Clark said those named with May in the indictment returned by a federal grand jury here are Henry M Garsson Murray Garsson and Joseph F Freeman all former officers and employes of the Erie Basin Metal Products Inc Elgin HI and of Batavia Metal Products Inc Batavia III He said one count charges that May wartime chairman of the house military committee did agree to receive from these firms a total of May was defeated in last falls election after a campaign in which his relations with the Garsson Jrown hair blue sharp fea ures apparently well educated driving a 1937 Ford sedan medi um grey in color May Denies Guilt Prestonsburg Ky mer Rep Andrew J May said in a statement Thursday on his indictment on a charge of con spiracy to defraud the govern ment I am not guilty I have done nothing wrong and have not violated any law He add ed I will appear in court and ask for a speedy trial at which I will completely vindicate my self brothers had figured Now71 he had sewed in congress since 193o The indictment was returned to Chief Justice Bolitha Laws of the federal district court CJark thai a conviction un der the conspiracy statute pro vides for a maximum of fine and for imprisonment of not more than 2 years GENERAL GEIGER DIES OF ILLNESS Top Marine War Leader Succumbs in Hospital Washington Gen Hoy i Geiger one of the top marine orps leaders of World war 2 ied Thursday in Bethesda Md aval hospital His death at a m EST amc only 8 days before he was ue to retire from active service ie was 61 Geiger who commanded the ems ons Oth army on Okinawa and later ic fleet marine force in the Pa fic entered the hospital last hursday Physicians said he suf ered from inflammation of the and pulmonary complica He was a native of Florida Sur ving are his widow Mrs Eu ice Renshaw Geiger of Rose ont Pensacola Fla a son Roy Geiger who is in the army at ort Sill Okla and a daughter rs Robert J Jackson of Pen cola Weather Report FORECAST Mason City Fair and continued mild Thursday night and Fri day Low Thursday night 32 Iowa Generally fair and mild Thursday night and Friday Low Thursday night 30 to 35 Friday 45 to 50 High Demos Soy 2 Vote Defeat Is Sample of New Party Unity Washington Senate democrats who came within 2 votes of Plans in the 80th congress first test posted notice Thursday that they will have their big artillery ready for future LrUP proposals Shotgun Wounds Fatal Des Moines Cram blit 4yearold son of Mr and Mrs Loren Cramblit died at a Des Moines hospital Wednesday night of injuries suffered when a shot gun which his father was repair ing accidentally discharged Minnesota Partly cloudy and warmer Thursday night Friday partly cloudy and mild IN MASON CITY GlobeGazette weather statistics for 24 hour period ending at 8 oclock Thursday morning Maximum 31 Minimum 21 At 8 a m Thursday 25 YEAR AGO Maximum 30 Minimum ig t uuf the minority whip said Wednesdays 47 to 45 vote by which the republicans beat off an attempt to scuttle the Brewster war investigating comw mittee is merely a sample of a new sort of democratic unity We lost but we showed the re publicans they have to watch their step on what they propose Lucas told a reporter But Senator Wherry of Nebras ka the majority whip retorted that the republicans arent par ticularly worried He noted the final tally was 49 to 43 to keep the Brewster committee in opera tion after the previous closer vote had defeated an attempt to turn over all war fraud inquiries to the expenditures committee I think the democrats have reached their peak and I doubt that theyll ever again be able to line up as many of their own members or get as much repub lican support Wherry said The chief job of the 2 whips Lucas and lo try to keep their party lines intact on major issues Wherry forecast a much wider victory margin for a resolution now before the senate to author ize an 8 months investigation of small business by a special com mittee which the Nebraskan will head A vote on this issue is set for late Friday and democrats con The senate war investigating committee inquired at length last summer into relations between the Garssons and May Clarks announcement said the indictment follows lengthy pres entation of evidence developed by an intensive investigation by the federal bureau of investigation The grand jury Clark said has been temporarily recessed and is lo be recalled lo consider further evidence being developed by the FBI The attorney general said the indictment is in 4 counts 1 Conspiracy to commit offenses against the United Slates and to defraud the United States 2 Violations of the United States code which makes it an of fense for a member of congress to receive or agree to receive any compensation for services ren dered or to be rendered to any person in relation to any proceed ing to which the United States is party before any government de partment A 3rd count Clark said elabo rates on the 2nd and charges that May conspired to commit offenses against the United States and that the Garssons and Freeman aided abetted counselled procured and induced May to commit the of fenses The counts are based upon the alleged receipt by May at Wash ington D C of a check of Erie Basin Metal Products Inc in the amount of 85000 on Aug 22 1944 Clark said The 4th count charges that May did agree to receive from Erie Basin Metal Products Inc Ba tavia Metal Products Inc and from Henry M Garsson Murray Garsson and Joseph F Freeman a total of 5363407 and other compensation to the jurors un known The 4th count also charges Henry M Garsson Murray Gars son and Joseph F Freeman with having aided abetled counselled procured and induced the com mission of the offense cede they probably lose again even though Senator Tobey R N also is seeking to kill off the special group Tobey favors turning its chores over to committee which banking heads Chairman Taft Ohio ot the GOP steering committee agreed with Wherry that Ihe sailing looks smooth for the small business group but he lold a newsman that there is rough water ahead for any other special committee that may be proposed Reduce Retail Milk Prices in Marshalltown Marshalltown milk prices will be reduced 2 cents a quart from the current 19cent charge here Feb 1 it was an nounced Thursday by the Mar shall County Farm Dairymens association and Marshalltown Milk Plant operators The new price will be based on payment of a hundredweight to farmers for whole milk against the prevailing rate of dairy men said Scores started a of housewives here milk boycott several wrcks ago when the price of milk was increased to 19 cents but this movement largely had subsided plant operators said ;