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Mason City Globe-Gazette (Newspaper) - July 2, 1935, Mason City, Iowa NORTH IOWAS DAILY PAPER EDITED FOR THE HOME THE NEWSPAPER THAT MAKES ALL NORTH IOWANS NEIGHBORS HOME EDITION VOL XU JTVE CENTS A ASSOCIATED PRESS LEASED WIRE SERVICE MASON CITY IOWA TUESDAY JULY 2 1935 SECTION ONE THIS PAPER CONSISTS OF TWO SECTIONS NO 224 if If Tinkering With Taxes Danger Is Seen in Levies Imposed Recklessly HOUSE PASSES OWN UTILITY BILL By CHARLES F STEWART Central Press Staff Writer ASHINGTON July late Henry T Rainey speaker of the U S house of representa tives was one of the ablest au thorities in the country on the subject of taxa tion Taxes can be so levied he re peatedly told me as t o accom plish almost any desired end For example there once was a terrible dis ease known as phossy jaw which afflicted workers engaged manufacture o f matches but it was the way matches could be made manufacturers said Well we a prohibitive tax on that kind ol matches related the speaker Report Gambling Equipment Seized Here Moved in the oldfashioned only the laid d of and they soon hit on a harmless formu la We cured phossy jaw tion by taxa SLOT MACHINES FOUND LATER IN WESTERN IOWA Two Letters Seized in Probe Involve Cerro Gordo County Cerro Gordo county became one of the focal points in the slot mach ine investigation Tuesday with the disclosure of information concern ing the alleged transfer of machines from this to another part of the state and of two letters concerning operation of machines in the couu However Speaker Rainey empha sized the point that unskillfully or recklessly legislated imposts are likely to be as injurious as judicious ones may be he explained as a medicine which is salvation in one case may be pois on or at best no good whatever in some other case To Offset Huey Now President Roosevelts share our wealth prescription is one which appears to have been sug without much consideration as to its ultimate effect on the pa It is a prescription which in fact seems not to have been pro posed so much to cure the nation s economic illness as to win folk away fvom the rival remedy if so urged by Senator Huey P Long Tins the Kingfishphysician was prompt to recognize and his nerve being ex cellent he wasequally prompt to efficacious But he strongly hinted at what many persons believed to be a pretty reasonable suspicion that the white house was in no haste to have its prescription actually tried but simply was trying to hush tim up Thereupon administrationists were compelled to show that they really did mean business Order Too Large Accordingly the news was broad cast that the administration wanted action within a week Adopting a Turn to Fuse 3 Column 1 24PERSONSHURT AS BRIDGE FALLS More Than 2 Score Plunged Headlong Into Ravine at Toronto TORONTO July 2 span of the Woodbine foot bridge burdened by homeward bound picnickers col lapsed early today plunging more than two score persons headlong into a dark East York ravine Twentyfour persons were in jured none of them seriously and were taken to hospitals Many oth ers including several women and children received medical treatment at the scene A span of the old wooden struc ture 40 feet above the ravine gave way as members of the East York Workers association started over it after a picnic and wrestling matches in the nearby park The Weather FORECAST IOWA Local showers or thundershowers Tuesday night or Wednesday slightly warmer Tuesday night in south central portion un settled local showers or thun derstorms Tuesday night or Wednesday warmer along lake region cooler in extreme west Wednesday IN MASON CITY GlobeGazette weather figures for 24 hour period ending at 8 oclock Tuesday morning Maximum Monday 8 Minimum in Night 68 At 8 a m Tuesday 74 Rainfall Trace Monday maximum temperature was within a degree of the High mark of the season It was perhaps the best single growing day with numerous cornfields in this regon at or near the traditional kneehigh stage by the Fourth of July ty The GlobeGazette was informed by an officer Tuesday that affida vits have been obtained to the effect that slot machines picked up in Car roll were the same devices which records showed were ordered des troyed in Cerro Gordo county Names Joe Powell One of the two letters involving Cerro Gordo county named Joe Powell of Clear Lake as one of the addresses of a communication from Max Langer Dubuque who ap peared Tuesday before the gran jury at Sioux City in connection with the investigation The other letter was written bj George Hochwender North Federal avenue Mason City to Frank S Brisbois Fonda who has also appeared before the grand jury and who denied knowing Langei but slightly It was the seizure of Brisbois rec ords that brought this and othei correspondence before the granr jury Hochwenders Letter The letter dated at Mason City and signed Geo although the en velope carried a return address to George Hochwender read N Federal Mason City la May 19th 1933 F S Brisbois Fonda la Dear Friend Your letter at hand dated May 19 and I am answering on the same day and what does this state man cost per year and how much per machine And this just runs for one year and if you go to Dubuque I want to go down with you As far as Powell is concerned you cannot talk to him as he has been drunk for the last five days and I have found out how he bought the machines he got this spring was through a fi nance co here and I was told that he was going to close in on him as he wasnt getting any money out of him and Whit said he told him that every cent he had was eleven dollars and did he pay his money in the S200 to the state What I want to know is you say that much for each county that would be out of reason would it not and still pay so much per month I thought we could get this up here too and go 5050 and I think a fellow should see the county officials first dont you And you must be wrong about just one courr ty arent you And about me I had a machine in a place and he told the man he would give him 550 for it and I let him have it I know he has paid out for spots and then a fellow came over from Ban croft and told Whit Nite Spot he would for his spot and Whit said he would take it and Powell hag paid him allready So they just keep selling and when I get any money I sure will send it to you as there nothing doing yet up here As ever your Advised Against It Another letter seized by officials read as follows Clyde E Mayer Company Manufacturers Brokers 3512 Dearborn Ave Phone 72313 Sioux City la April 17 1933 Brisbois Bros Company Fonda la Dear Frank Replying to your letter of April 6 will say that I note your sugges tions regarding Mr Haigt but so long as you are going along and no body is asking you anything and you most certainly are not being bothered why get into a deal and spend this extra money I was told by good authority from Des Moines Maley Says Lytle Made Bribe Offer DBS MOINES July 2 Assistant Attorney General Walter F Maley said today he was conduci ng an official investigation of an alleged bribe offered by C F Lytle iioux City contractor in competi tive bidding on the Cedar Rapids sewage disposal plant As soon as I obtain a small amount of additional evidence for which I have already arranged I propose to submit the matter to the Linn county grand jury Maley said Open Letter Sent Maley previously had requested Lytle in an open letter made public last week to reply to questions con cerning an alleged 510000 offer made to William Bemis uie success ful low bidder The offer was made by Lytle through his general manager and superintendent a Mr Parrott to Bemis Maley said today Parrott suggested that Bemis withdraw his bid and give as an explanation a claim that errors had been made in computing the amount necessary to construct the disposal plant Maley said his evidence showed Bemis was the successful low bid der at approximately Maley said while Lytles company was the second low bidder at 262 000 Evidence in Possession The assistant states attorney said evidence in his possession had been gathered during the last several weeks and the remaining informa tion necessary before the case was ready to be taken to the grand jury was being prepared in documentary form The case will be taken to the grand jury either by myself or by some member of the attorney gen erals staff Maley said While the procedure has not been definitely determined this office s completing arrangements to lay the matter be fore the investigating body MAX DUCKWORTH WITNESS AGAIN Former County Attorney to Escape Prosecution by His Testimony SIOUX CITY July 2 mer Woodbury County Atty Max E Duckworth who resigned from office while ouster proceedings were pending again was a witness today before the county graft in vestigation grand jury Duckworths appearance before the grand jurors today followed con ferences with the special prosecu tors H M Havner and Ole T Nag lestad and his attorney Lafe Bond who conferred for about two hours By testifying it is understood the former county attorney will re ceive immunity from prosecution by the present grand jury if the testi mony he gave tended to incriminate him Days Second Witness He was the second of the days witnesses before the grand jury which is investigating alleged graft and corruption in connection with a reputed slot machine syndicate Turn In Iac 3 Column 1 CLAY PRODUCTS COMPANY CASE FINALLY AT END Action Against Keeler Settled After Seven Years in Courts The giant National Clay Products company case which has ground its way through state and federal courts for seven and a half years and was now enroute to the Iowa supreme court on an appeal from the decision of Judge T A Beard more in the local district court came to an abrupt close Tuesday with the announcement that a set tlement had been made According to a stipulation pre pared by attorney for both sides 205 stockholders of the extinct Na tional Clay works will receive 500 in addition to having a lien on the plants of the National Clay Products company for an judgment confirmed Reach Settlement The case was that of Albert F Trettin et al vs the National Clay Products company and F E Keel er It was Ben Hunter Los An geles attorney for Mr Keeler who negotiated for a settlement of the case F A Ontjes and E G Dunn were attorneys for the plaintiffs and Breese and Cornwell William Lamb Chicago and O T Gilbank Los Angeles attorneys for the de fendants Smith and Feeney were in the case as attorneys for the Ma sonCityBrick and Tile company The case was headed for a hear ing in the September term of the supreme court on an appeal by the defendant from the decision of Judge Beardmore when settlement was made Judge Beardmoe held that Mr Keeler in his effort to ob tain t rol of the National Clay works committed legal fraud The stockholders holding a mi nority interest in the company sued for in settlement of their share of the assets of the company owned 1771 89 shares of preferred stock They were given judgment on the basis of for each share of preferred holdings plus 6 per cent interest from Aug 3 1926 making a total of at the time the de cision was handed down In Federal Court The case first came into the fed eral court in December 1927 and for several years following Judge George S Scott was called upon to make rulings on motions and other matters in court sessions held in Mason City Sioux City Fort Dodge and Waterloo In December 1930 the plaintiffs dismissed the federal court case and went into the state courts In the spring of 1933 the case was tried Cedar Falls Man Is Seriously Burned in Gasoline Explosion WATERLOO July 2 field Nielson 22 Cedar Falls was severely burned about both arms late yesterday in a gasoline explo sion while be was installing an elec tric refrigerator in a store here He was cleaning the motor with gasoline when it was ignited by a spark when a thermostatic switch affected by rising temperature automatically started the motor Confesses Slaying Daniel W Melds 61 old gardener presents a tingle picture above after telling po lice officers how he lured his 42 year old sivcetlieiirt Fran ces Conklin to a Los Angeles lovers lane and shot her to death According to authorities in his confession of the crimp Niclds told ot saving one bul let in his gun for himself How ever he lost his nerve and could not bring himself to com mit suicide RAILROADTRACK WASHED OUT AT FORT ATKINSON torrential Rams Flood Central Iowa Five Men Missing About 700 feet of track on the Chicago Milwaukee St Paul and acific railroad was under water ir washed out east of Fort Alkin on about oclock Monday evening by a cloudburst Approxi mately 300 feet of track was washed out and under from one to our feet of water about miles east of Fort Atkinson and about 400 feet ot track was under water about a mile east of Fort Atkin son according to word received at he division offices at Mason City Tuesday morning Service over the line was rlartcd at oclock Tuesday morning however after approximatjly 12 hours of repair work and inspec tions RAGING TORRENTS DBS MOINES July 2 rental early morning rains turnec small streams into raging torrents in central Iowa again today for the second time in two weeks Primghar residents meanwhik purveyed widespread damage causa by a recordbreaking cloudburst o nearly 9 inches yesterday Searchers feared five person were drowned in the swollen Mis sissippi river at Keokuk A cloudburst of 312 inches a Boone wrecked Ledges state park damaged six county highwa bridges gravel roads and cit streets and raised the flooded De Moines river a foot and a half Creeks Over Banks Shallow Walnut creek west Des Moines turned into a ragin stream within an hour A creek through the town Madrid south of Boone vent ove its banks forcing residents to fie from their homes A launch in which seven person were riding on the swollen Missis Eippi overturned when it struck th swift current at the mcuth of th Des Moines The men were thrown from the launch Clyde Anderson and Eli Rockefeller swam to shore after an unsuccessful attempt to locate their companions Five Men Missing The missing men are Everett Ep CURTIS FOR NEW G0 P CHAIRMAN Not Getting h Work Soon Former Vice President Says WASHINGTON July 2 Charles Curtis vice president in the Hoover administration today declared for a change in the repub lican national chairmanship They are not getting to work soon enough he said in an inter view I think there ought to be a new chairman He did not mention Henry P Fletcher by name Fletcher is the present chairman of the partys naj pers Jack Fallon and Harry Wag presen ner all of Keokuk Robert Lancas Smothers in Corn Truck Turns Over CLARION July F reshour of Springfield Mo was mothered to death at 10 oclock Monday night when the truck he ras riding in as relief driver up et 14 miles southeast of Clarion He was sleeping on shelled corn which the truck was filled the accident occurred R L Glover of Springfield the river ran off the pavement to the eft and in an effort to right the ruck went off to the right side he truck upset Freshour could ot get out and was smothered by he shelled corn The truck was enclosed with a railer James T Cox of Springfield 5 the owner of the truck An in ucst was planned this afternoon t Williams iTVK INIUKED IN BUSH A P KANAWHA July persons were injured Monday evening when truck driven by Ira Zigler farm er near Kanawha coming from the south on to the main highway and an auto driven by Harley Muhm collided two miles east of Kanawha Mr Muhm who was accompanied by three persons returning from a funeral suffered a broken bone ii lis left leg and severe cuts on hi ace and arms W H Warnock oni of the occupants of his car is still n Mercy hospital at Mason City for treatment of an injured left knee and ankle injury A scalp wound was suffered by Mrs Warnock and Mrs George Cos griff of Britt sister of Mr War nock received severe bruises These two were taken to the hospital but were able to go to their homes later Mr Zigler who was hauling a horse suffered a broken nose and bad bruises The car and truck were wrecked S THROWN OUT TOP OF CORWITH CAR CORWITH July driven by John Carlson employed at the Corwith postoffice and Mrs Ncal Thompson crashed late Monday a half mile east of Corwith In the Thompson car were Mr and Mrs Clifford Miller formerly of Kanawha and two children Dean 9 and Janice 3 Mr and Mrs Miller and Dean were thrown through the top of the car Mrs Thompson grabbed the small girl to prevent injuries to her Mrs Mil er was badly bruised and Dean suffered a gash on his hand Carlson suffered a bad gash on lis face and broken ribs REFUSES SECOND TIMETO FOLLOW WISHES OF F R tional committee He is regarded as the selection of former presi dent Herbert Hoover titular leader of the party There are plenty of issues Curtis said The save the consti tution proposition is very impor tant And I think there are too many boards and commissioris He referred to a speech he made in Topeka Kans Aug 18 1932 at tacking bureaucracy and contin ued If the republicans got in they would reduce the taxes Thats what I think of the Roosevelt tax pro gram Remember the republicans reduced taxes when Andrew Mel lon was secretary of the treasury They could be reduced again if they got rid of these boards and commissions to have nothing to do with the par ty whom you came to see me about a couple of weeks ago Under the liberal policy of the democratic ad ministration and the economic con ditions of the country why in the name of sense will they bother these machines I have recommended you to a very good friend of mine and until they ask for something go along and operate and let Fouts and the The Will to Come Back Tracy Garrett in Burlington HawkeyeGasefte It has become suddenly popular for the first time in years writes a business com mentator to take an optimistic view of re covery It is no longer popular to be a pessi mist Great news Here indeed is evidence that we ore turning a corner Thinking back it may occur to some of us that we tried to turn that mental corner before away back in 1930 and 1931 popular then to deny the reality of the big slump to fight fear and gloom with gener ous doses of cheerful psychology This hap pened again immediately following the bank holiday of 1932 But blow followed blow Uncertainty augmented fear in fact some in sist that fears were purposely inspired by those who saw an opportunity for what they considered great social reforms to be ex perimented with while the public through suf fering would try almost anything uncom plaininqlv persons who were willing to oro long the suffering preferring reform to re covery As a result after a few brave efforts a good many practically gave up and waited for their doom or trusted to the economic cycle to run its course What are the present signs of optimism based upon Partly upon reassuring business indications many of the statisticians curves trend upward Partly too we reason out that with the vast deficit of goods and services needed the tide must turn and general busi ness activity be renewed Partly to a growing public demand for less experimentation less interference and dictation a greater tunity to let the economic cycle turn with out checking it for the purpose of trying out some other theory But on the whole there is much fatalism in this new feeling of feeling that things must come back in America re gardless of statistics or politics or psychol ogy or tampering er of Memphis Mo and Glenn Brainerd former resident of the Ke ikuk transient camp The accident occurred last night No trace of either the men or the aunch has been found A flooded creek in Ledges Park wept away five sturdy foot bridges constructed by CCC workers to vithstand flood waters Most of the icnic tables were carried away The raging creek ripped away part of a concrete ford The water stood 14 feet deeep in some places where normally t is only a few inches deep Tourist Cabins Flooded At Boone the cabin floors in a tourist camp were flooded Base ments in the residential and busi ness districts were filled with wa ter Employes at one greenhouse couldnt go to work because the reenhouse stood in the middle of a small lake Madrid rnineri were unable to go to work cast of town because a iiighway was under several feet of water Walnut creek rose so rapidly at Des Moines that families in the streams path were unable to re move their household goods before the full impact of the flood struck The weather bureau said the rise here probably will have little effec on the river at other points unless additional heavy rains fall DEFICIT IS LESS THAN ESTIMATED Treasury Figures Given for Fiscal Year of Greatest Peacetime Spending Mexican Government to Continue Present Program and Policies clear indication that the government of President Lazaro Cardenas in tends to continue its present pro gram and policies came today from the first meeting of the newly in stalled cabinet President Cardenas made plain his future plans it was learned today by rereading to the cabinet yesterday his January 1 mKSSsfflo the nation WASHINGTON July 2 treasurys deficit for the fiscal year ending last Sunday was 96361 The figure covering the seconc full year of the new adminis tration compares with a deficit 01 5398949603542 in the previous fis cal period It is considerably less than thi deficit estimated it the president budget message to congress last spring Receipts during the year totalled 5380046720196 compared with 53 11555404953 in the previous year They exceeded budget estimates of 53711650688 New Peacetime High Expenditures the year estab lished a new peacetime high total of including 53 65459053081 of emergency spend ing This compared with 08495 in the previous fiscal period which included emergency spending totalling Total expenditures of 58581069 026 had been estimated in the pres idents budget 0this amount it was calculated that would be disbursed for recovery and relief The gross public debt increased during the year from 41448 to 52870089262453 at the close of business June 29 That date this year marked the end of the fiscal year 1935 Wheeler Plans Fight in Conference for Death Sentence Act WASHINGTON July 2 er handing President Roosevelt his second defeat in two days the house of representatives today passed leg slation to regulate public utilities The vote was 323 to 81 a majority of 242 Earlier the rebellious house voted 258 to 147 for its own bill refusing again to comply with the presidents wishes for mandatory abolition of unnecessary public utility holding companies Downing the president for a sec ond time it adopted its own bill which gives the securities commis sion discretionary authority over holding companies That was on a question of substituting it for the senate measure His Second Defeat Yesterday the house ballotted 216 to 146 in a more secretive teller vote against inserting the death sentence provision in the house bill The measure offered by Chair man Wheeler of the senate inter state commerce committee and Chairman Rayburn of the house in terstate commerce committee now back to the senate to an un ertain fate Wheeler said the fight would be ransferred to a conference commit ee to adjust differences between the senate and house If we cant get a decent bill out of conference I am in favor of let ting it die and going to the country on the issue he said lowans Back F R A republican motion to send the measure back to the house inter state commerce committee was re jected 312 to 93 The entire Iowa democratic delegation in the house voted against substitution of the house bill which did not contain a death sentence clause for utilities hold ing companies for the senate bill which did These were Biermann Eicher Gillette Jacobsen Uttcrback and Wearin Republicans Divide Two Iowa republican representa tives Gwynne and Thurston voted in favor of substitution Gilchrist the other republican joined with the democrats in voting no While the utilities issues domin ated proceedings on Capitol Hill Secretary Morgenthau announced a fiscal year end treasury deficit of bringing the gross public debt up to 62453 The deficit was consider ably under that estimated by Pres ident Roosevelt in his budgit mes sage last spring NRV Plans Made A surprise development took place on the NRA front when the president arranged with the skele tonized NRA and the federal trade commission to carry out with in dustry voluntary code agreements supplanting the code structure out lawed by the supreme court The opening of an investigation by a special senate committee of Governor Paul M Pearsons admln Turn In PURR 3 column 2 For Emergencies Vacation camping and summer outings bring their inevitable toll of bumps and bruises You will want to carry along the GlobeGazette service booklet First Aid Com piled in cooperation with the United States public health service and the American Red Cross A complete and authoritative manual for emergencies Tells how to treat shock sunburn snake bites wounds burns lightning stroke bleeding suffocation poison ivy burns hives mosquito bites and the sting of bees Enclose six cents to cover cost handling and postage Use this coupon Nebraska Has First Liquor by Drink Sale DESHLER Nebr July 2 First legal sales of liquor by the rtrink in Nebraska began today in1 Deshlcr The Mason City GlobeGazetto Information Bureau Frederic J Haskin director Washington D C I enclose six cents in coin carefully wrapped for the First Aid booklet Name Street City Slate Mail lo Washington D ;