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Mason City Globe-Gazette (Newspaper) - July 18, 1935, Mason City, Iowa NORTH IOWAS DAILY PAPER EDITED FOR THE HOME THE NEWSPAPER THAT MAKES ALL NORTH IOWANS NEIGHBORS HOME EDITION VOL XLI KlVE CENTS A COPY ASSOCIATED PKESS LEASED WIRE SERVICE MASON CITY IOWA THURSDAY JULY 18 1935 THIS PAPEK CONSISTS OK TWO SECTIONS SECTION ONE NO 238 Australias Slump Over Visitor Tells How Depression Was Licked By CHARLES P STEWART ASHINGTON July 18 Australia is out of its depression it was a far worse depression than afflicts this country and now is fairly and increasingly pros perous again The speaker was Arthur H OConnor the is 1 a n dcontinents chief travel agent in America re cently a Wash ington visitor in connection with Australian mier Joseph A Lyons trip across the United States Well for heavens sake how did the antipodeans succeed in breaking the back of their hard times Is it a trick that can be imitated We did it answered Uncle Sams Australian guest by recog nizing and accepting our inevitable losses by discontinuing a hopeless attempt to bolster our economics up admitted the impossibility of creating an artificial as against a real prosperity Our collapse somewhat preceded yours Indeed many authorities blamed Australia for the world slump The truth is we simply felt it early because ours is a country of primary production Just as American agriculture felt it sooner than American industry we as more essentially an agricultural and mining commonwealth felt it soon er and more generally than the rest of the world We were geared to wartime prices and peacetime prices coming so suddenly jerked the bottom from under our system Program of Spending Federal and state governments tried to help by a program of enor mous spending Where they had been spending hundreds perhaps they should have adopted a policy of spending thousands they did adopta policy of spending millions Feechral and state governments The United States of latehas been spending approximately for every of its income We never were quite as bad as that said the Australian spokes man but we did get to spending from oneeighth to onefourth in ex cess of our taxation collections One Australian state became so desper ate that it talked of repudiating its foreign indebtedness This so alarmed foreign investors that our bonds fell 60 per cent below par Today under the Lyons govern ment our bonds rate at 102 on for eign exchanges Flexible Constitution How did we do it Well for one item the govern ment appealed to domestic holders of government securities to agree to a cut in interest rates and 97 per Turn to Page 3 column 1 ENGINEER KILLED WALLA WALLA Wash July engineer and two tran sients were killed ast night in the headon collision of a local passen ger train with a 20 car freight Twelve passengers were injured none of them believed to be se verely hurt Stanley Cowan Pasco Wash engineer of the passenger train was killed when trapped in his cab Fred Madsen Pdrtand Ore was the only identified transient victim The accident occurred in an iso latrfl sage brush area 27 miles east lii Pasco BIG TIME GANGSTER SHOT DOWN Tell Lobby Probers Records Were Destroyed FORECAST IOWA Partly cloudy to cloudy Thursday night and Friday pos sibly local thundershowers in north portion Thrusday afternoon or nijrhr Not so warm Friday in central and north portions and north central portions Thrusday night MINNESOTA Generally fair in north partly cloudy to cloudy in south Thursday night and Fri day cooler in south and east cen tral portions Thursday night IN MASON CITY GlobeGazette weather figures for 24 hour period ending Thursday morning Maximum Wednesday 87 Minimum in Night 70 At 8 A M Thursday 73 Thursday brought North Iowa its hottest weather of 1935 At oclock the mercury had touched the P6 mark which is 2 degrees higher than the previous maximum of the summer UTILITIES FIRM EMPLOYES TOLD WORK WAS DONE Senate Continues AAA Debate Processing Taxes Argued WASHINGTON July 18 Employes of the Associated Gas and Electric company which has ac knowledged that it spent 700000 in a campaign against the admin istrations utility holding company bill told senate investigators today that some records of this activity had been destroyed One of them E W OBrien of Erie Pa testified a superior had advised him we had no longer use for our legislative we ere through with utility legislation work OBrien said also he had advised R P Herron bond salesman of Warren Pa who sent several hun dred telegrams to members of con gress against the legislation that there was to be an investigation and he should clear out his files Debate Amendments While its lobby committee pressed the investigation into activities for and against the holding company bill the senate was embroiled once more in debate over administration amendments designed to broaden the powers of the AAA and protect it against court attacks The administrations proposal to close the courts to processing tax recovery suits was denounced by Senator Borah as a step benefiting big companies which have passed the tax on to consum ers but injuring small companies which have been unable to do so Debate on this controversial pro vision of the pending AAA amend ments began after the senate had voted against imposing a process ing tax on rayon Cannot Deny Right Where there has been a wrong perpetrated and property taken Borah asserted I do not believe you can deny a man the right to go into court It is true that some of the taxes have been passed on to the con sumer by the large processing com panies but the small companies have been unable in many instances to do so and by reason ot that have suffered The senate yesterday reversed its action of Tuesday and voted 44 to 41 against price fixing provisions Collections to Continue Attorney General Cummins said at a press conference a decision of the circuit court of appeals at Bos ton holding the processing taxes unconstitutional would not prevent further tax collections except in that particular case Legislation to prevent the filing of damage suits growing out of an other new deal deval up for consideration in the house Before plunging into de bate on this issue however that chamber agreed to a further con ference with the senate on the ad ministrations social security bill Other developments Peace Desire Expressed Emphasizing the American gov ernments desire for a peaceful set tlement of the ItaloEthiopian cri sis William Phillips acting secre tary of state revealed that all American envoys abroad have been authorized to inform other powers of the United States attitude Postmaster General Farley the democratic national chairman left on a vacation trip to Hawaii after talk with President 12 firms were sus pended by the agriculture depart ment under the perishable agricul tural commodities for failure to pay reparation awards Preliminary Hearing on Chain Letter Plan Opens Witnesses Tell Scheme Started Here Many witnesses were called Thursday afternoon as the prelim inary hearing was held on the chain letter scheme sponsored by the 40 and 8 for the milk fund The hearing held before United States Commissioner Charles W Barlow in the federal building was on charges of using the mails to de fraud filed against M 11 Pricbe of Keosauqua and Johnnie and Her man Hermanson Witnesses were questioned by E G Dunn United States district at torney and W D Danfortli his as sistant W L Bliss represents the defendants Methods Are Described The first witnesses those who worked in the system de scribed the methods of handling The letter scheme was at 10 Fourth street northeast For everv dollar put in an additional 25 cents was put in for the 40 and S milk fund Officers closed the place the after noon of May 18 after a spirited business was conducted Martin Mulligan who is in the tire business testified that he had known Priebc for some time and had sold tires to him He said he had heard the clerk at the Cerro Gprdo hotel where Pricbe toppcd when in town tell how Priebe re ceived some chain letters and had participated in a chain letter scheme for an Elks lodge in some other town Introduced Triebe Knowing that the 40 and 8 de sired some plan for making money Mrl Mulligan had introduced Mr Priebe to R C Patrick former chef de gare of the 40 and 8 he said He knew that Priebe Patrick and the Hermanson brothers dis cussed the proposition in i car Dewey Patton postal inspector who was one of the officers mak ing the arrest at the time the place was closed returned for the hearj Outrages Morals PARIS July 18 Warner above blond Ainrriciin dancer was found guilty of out the morals of Paris and was fined 50 Miss Warner did her outrag by dancing in the nude The decision against the American made a basis of a widespread prosecution ol all nude do ruTS in theaters and night clubs here had since bee Scheme Was Explained Mr Patrick described how the scheme was outlined to him at a discussion with the Hermanson brothers and Priebe in a car Dr T A Nettleton one of the leaders of the 40 and 8 testified saying that one of the reasons for the organization entering the chain letter scheme was because the milk fund was lacking in funds a last minute Roosevelt Licenses of SUCCESSOR TO Union of Political Factions on Possible Candidate for Mayor Goal SIOUX CITY July 18 TVPlans were underway here today to unite political factions on a candidate for possible successor to Mayor W D Hayes for whose removal trial a special judge was appointed by Chief Justice James Kintzinger of the Iowa supreme court A meeting to discuss possible can didates was held yesterday by E M Badgerow real estate operator and attended by Keyes Gaynor unsuc cessful candidate against Hayes at the last election Hayes now under suspension faces charges of failure to act against protected vice conditions as sertedly uncovered by the Wood bury county graft grand jury The chief justice named Judge W W Scott of Davenport to hear re moval proceedings now tentatively set for Aug 1 Request for a special judge was made by H M Havncr special prosecutor who will aid in presenting evidence against Hayes CHARGES MADE OF ATROCITIES Widespread Indignation in Italy Follows Stories of Alleged Raid ROME July 18 charg ed Ethiopian tribesmen today with mutilating numerous children in a mass attack of defenseless na tives of Eritrean Dancali Widespread indignation was aroused as the full details of the alleged raid on the Italian colony May 31 charged in a propaganda ministry communique were pub lished for the first time in this mornings Italian press Premier Benito Mussolinis own newspaper Popolo Dltalia review ing the ItaloEthiopian crisis in an article believed to have been writ ten or at least inspired by II Duce himself asserted Are Watching Developments A duel opened with arms cannot be resolved except by arms A government spokesman gave as surance that Italy watched develop ments toward Ethiopian mobiliza tion and a special session of the league of nations council confident of its own preparedness and the justification of its cause The British cabinet considered but was understood to have made no decision on what steps it should take especially at Geneva to pre serve the peace League to Meet At Geneva league of nations au thorities said smaller nations de mand that the council which is ex pected to meet shortly protect the integrity of Ethiopia The Italian spokesman said that Italy was keenly aware of Ethiopi an military preparations indicating it would not be caught napping by an imminent Ethiopian declaration of general mobilization He insisted that Italy was sure Ethiopia did not want peace DISTRICT JUDGE DEFERS HEARING ON OUSTER CASE Told Council Expected to Consider Manager Situation Informed the city council was ex pected to meet between now and Monday to consider the city man ager situation Judge T A Beard more Thursday afternoon deferred hearing of the ouster proceedings against City Manager E H Crofoot In view of the fact that the city council is considering taking the matter up there is no need of pro ceeding until after we know what that body will do said the judge The judge arrived from Charles City to act on the request of the prosecution for immediate tempor ary suspension of Mr Crofoot and to set a date for the hearing on the ouster petition which was filed by Morgan J McEnaney in behalf of five local residents County Attorney Frederick B Shaffer and Mines Mount assistant county attorney were in the court oom with Che expectation the mat ter would be taken up The attorneys in the case were informed by Judge Beardmore that a bond would be required of the plaintiffs in event a hearing is held Grant for Scout Cabin Made at Nashua NASHUA July ma terial grant for the Boy Scout cabin has been approved by E H Mullock state relief administrator through the efforts of William Smith Chickasaw county relief en gineer and W M Prudhon The cabin will be built of old telephone poles donated by the Northwestern Bell Telephone company The fed eral grant will be supplemented by donations of public local citizens in providing funds for the founda tion roof and other material to be used E BODIES ARE FOUND IN MINE Workers Locate Victims of Coal Shaft Explosion in Kentucky VAN LEAR Ky July 18 Bodies of the nine men entombed by a coal mine explosion here yes terday were found by rescue work ers today Seven of the bodies were brought to the surface one by one in mine railway cars as police and mine of ficials held back an assembled crowd John F Daniel Lexington chief of the state department of mines and minerals expressed belief that all nine had been killed instantly by gas Some of the bodies had been crushed by falling slate and coal All were brought to undertaking establishments in Van Lear Frank Price chief clerk of the Consolidating Coal company whose Mine No 5 was the scene of the disaster said the bodies recovered were those of William Kretzler 31 assistant foreman Charles Kretz ler 46 Virgil Clay 21 James K Vaughan 52 Derwood Litz 34 Sherley Hereford 38 and Roy Mur ray 38 The bodies of John Gool 56 and Frank Tuzy 45 were located last and brought out this afternoon Temporary Writ Issued on Chain Tax State Not to Collect From 20 Companies Until Hearing DES MOINES July 38 eral Judge Charles A Dewey today issued an order temporarily re straining the state from enforcing Iowas chain store tax law against the 20 firms which attacked consti tutionality of the measure The temporary restraining law will remain in effect until a three judge federal court rules on the con stitutionality of the measure Date for the hearing before the federal court was set for Sept 10 The office of the state board of assessment and review said the tem porary restraining order would have no effect on the boards attitude to ward other chain store firms Obliged to Pay Those who arc not parties to the suit still will be obliged to pay the tax although they arc privileged to pay it under protest an official of the board said The first tax payment under Iowas new chain store tax law was due July 3 The tax is based on the number of stores a chain has in Iowa The tax on the gross receipts of chain stores is due Aug 1 3936 Judge Dewey said his order was more or less a formality leaving the merits of the caselo be decided by the three judge federal corut File as Jntervenors Constitutionality ot the law was questioned in original injunction pe titions filed by the Great Atlantic andPacific Tea company the Wai green Drug company and the Gra ham Department Stores company They are supported in their suits by 17 other companies who filed as in tervenors The 20 companies set forth that their total gross receipts last year figured under the tax law were in 446 stores The chain stores claim they are liable to pay total taxes of State officials estimated today that the chain store tax would bring in from two and onehalf to four million dollars in the next year Denies Eqiiiii protection In opening their case attorneys for the chain store companies de clared the tax law is discriminatory confiscatory and violates both fed eral and Iowa constitutions by de nying equal protection under the law to all The intervenors were The Na tional Tea company owners of Red Ball stores Safeway stores Inc ThriftWar stores Inc Liggett Drug company S S Kresge com Gangster Slain pany J J Newberry company Newman Mercantile company Scars Roebuck and company Neis ner Brothers Inc J C Penney company Melville Shoe corpora tion G RKinney company Inc F W Woolworth company H L Green company Inc United Cigar Stores company Goodyear Tire and Rubber company Grant company and the W T 100 DROP SHOWN IN RELIEF GASES Report on Mitchell County Is Made by Mrs Elmer Lang Director OSAGE July has been a reduction of more than 100 cases on the relief lists here since March 1 according to Mrs Elmer Lang director of relief for Mitchell coun ty There arc now 90 active cases i receiving aid Reducing Iowas Relief Load Tracy Garrett in Burlington HawkeyeGazette A statement given out by the statefed eral relief organization shows a tremendous reduction of the case load in Iowa since re registration began c few weeks ago In this county alone the cut will amount to nearly 40 per cent And a very large proportion of those who were dropped from the relief rolls were drop ped because they did not reregister In sending out the reregistration blanks the clients were told not to return them if they felt they could now get along without this aid In some cases no doubt failure to reregister was due to carelessness misunder standing or inability to complete the ques tionaires and some of these former clients will probably put in an appearance at a later date seeking help But it is felt the great majority who failed to reregister did so be cause they believe they can now get along without this statefederal at least want to make a serious effort to do so The improvement in rural communities is especially gratifying It has been authorita tively stated that no ablebodied person with farm experience or a willingness to work on a farm need apply for relief in Iowa today LOUIS ALTKRIE EMPEROR TALKS TO HIS WARRIORS Lion of Judah Calls on All Ethiopians to Fight to Remain Free ADDIS ABABA Ethiopia July lg Haile Selassie called on all Ethiopians to follow him into battle today declaring it was better to die tree than to live without liberty The King of Kings and Lion of Judah addressed both his parlia ment and his soldiers In impassioned tones he said the military preparations by Italy now going forward proved the inten tions of that country to conquer Ethiopia He called on all his subjects to unite and cooperate for the de fense of the country saying he would lead the troops into war Us appealed to all not to fear death Follow Their Example Our ancestors he shouted preserved their independence by sacrificing their lives Follow their example God will be our fortress and shield and the modern armament of aggressors cannot deter our duty which is sacred for Ethiopian inde depcndence Reviewing Ethiopias past rela tions with Italy and the events from the skirmish at Ualual last December until now the emperor described Ethiopias efforts for a peaceful settlement of the dispute and also similar efforts by the Bri tish which he said Premier Musso lini of Italy had brutally rejected War Danger Evident He said the fact that Italian mil itary preparations were continuing proved Italys intention to conquer Ethiopia forcibly and said the dan ger of war was evident despite the fact that Ethiopia was profoundly imbued with respect for promises and the sanctity of treaties He said Ethiopia did not wish war but would defend herself to the last man if attacked He said Ethiopia did not desire a hegemony and did not menace her neighbors but was mistress of her own country and would fight to the bitter end defending her integ rity independence and sovereignty The emperor declared that Ita lian intentions to use modern scien tific weapons of warfare would meet with the resistance of all his subjects JEW BAITING IN BERLIN GOES ON Violent Methods Dropped as Nazi Campaign Is Made in Newspapers BERLIN July 18 bait ers persisted in their antisemitic campaign today dropping more vio lent methods by government order but turning to the Written word to demand death to Jews for various associations with Aryans The newspaper Judcnkenncr which rivals the Stuermer in anti semitic activities advocated the death penalty for Jews guilty of intimacy with Aryan women The Nazi partys syndicate serv ice in an article in the National Socialistische Partci Korrespon denz demanded that Jews be for bidden to rent apartments to Ary ans engage Aryan domestic help or accept Aryan clients under pain of deaoth if necessary Reports from the Schocnberg dis trict said large crowds congregated before a Jewishowned shop there but that the disturbance was con fined to shouts as police looked on The controlled press protested bit terly against atrocity reports abroad of the antisemitic disordcis j The sale will give Mason City and although they did not deny that the North Iowa residents an opportun outbicaks occurred lily to save money on things needed I ALTERIE OF OLD DAYS IN CHICAGO KILLED Former Partner of Dion OBanion Victim of Labor Trouble CHICAGO July 18 Alterie big time gangster who survived some of the citys bloodiest bootlegwars was shot down as he left his hotel today and died an hour later A blast of shotgun slugs dropped Iteric so seriously wounded that barely survived the ambulance ide to Lakcview hospital But the gangsters assassins missed Alteries voman companion identified by po ice as his wife Irma 35 Capt Daniel Gilbert chief of the itates attorneys police blamed the ilaying on labor trouble Once the partner of slain Dion OBanion pio ieer Chicago botlcggcr Alterie had atcly been an official of a janitors union Gilbert said Hit by 9 Slugs Alterie was unconscious when he arrived at the hospital and died vithout making any statement Doctors said nine slugs had struck lim His wife was taken into custody jy the town hall police Alterie won his nickname Two Sun after OBanion was slain He had posed for photographs brand ishing a pair of pistols and an nounced Ill shoot it out at State and Madison streets with OBanions killers Lived in Style Alterie lived in style Waiting at the curb for him today as he and hisXaaliwnablydressedbrunet wife strolled from their hotel was an ex pensive sedan Other gangsters frowned on Al terie as a wild man noted for shooting out park lights and firing random shots in hotel rooms First associating with a northside gang with Schemer Drucci and OBan ion he emerged unscathed from the bloody gang war they waged with Johnnie Torrios southside gang re putedly because Alterie was a boon companion of Capone When Chicago became too hot Alterie went west to buy a ranch at Jarr Canon Colo Shot From Amhnsh Alterie was ambushed in tradi tional gangland style His hotel the Eastwood Towers was at 926 East wood avenue on the citys north side Across the street at 327 East wood the killers rented a first floor apartment commanding a view of the door from which Alterie emerg ed In the nest police found a re peating shotgun an automatic ri fle and three shotgun shells The rifle had not been fired A dark stocky man had rented the room eight days ago sharing it the man ager said with one other Both Well Behaved Both were quiet and well behav ed said neighbors Police said Alteries labor union job was that of president of the theater and amusement building janitors union local 25 He main tained downtown offices Alteries two executioners left s green steamer trunk behind and police set out to trace them through this and the guns Alterie came back to Chicago af ter Colorado had banished him DAY SATURDAY All Downtown Stores Will Take Part in Annual Sales Event Til i In Insr 3 column 2 COOL SNACKS Tempting cool tidbits for swelter ing afternoons tax the resources of the housewife these days Let our Washington information bureau as sist you with a timely booklet of recipes for inviting salads and sand wiches Also a section on homemade soups including the jellied varieties favored on torrid July days This handy household service booklet car ries more than 100 tested recipes Inclose six cents to cover cost hand ling and postage Use coupon The annual event he summer dollar day held in Mason City Saturday with all downtown stores participating Summer merchandise including wearing apparel articles for the home and articles for the car will be offered in this citywide event at reduced prices There will be hun dreds of items on sale at SI and other articles specially priced The Mason City GlobeGazette Information bureau Frederic J Haskin director Washington D C I inclose six cents in coin carefully wrapped for the booklet Salads and Sand wiches Name Street City State Mail to Washington D C ;