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Mason City Globe-Gazette (Newspaper) - July 18, 1939, Mason City, Iowa NORTH IOWAS DAILY PAPER EDITED FOR THE HOME THE NEWSPAPER THAT MAKES ALL NORTH IOWANS NEIGHBORS FULL LEASED WIRES Interest Rate Cut in FHA Is Unlikely WASHINGTON Everything was set lor a new drive to reduce interest rates on housing loans ine buildup was perfect Mr Koosevelt mentioned it at a press conferencesay ing he was looking into it Witnesses were called before the national economic com mittee The big witnesses f o the closing ses sion were to be Federal Housing Administra tor Stewart M c Donald HOLC Paul Mallon Chahman John Fahey and Slums Clearer Nathan Straus But Mr McDonald the key wit ness failed to show Mr Fahey ap peared and received a goingover because his HOLC has failed to sell foreclosed houses at less than established real estate values Mr Straus was questioned about high costs in his program Questions were prepared to let Mr McDonald say why he has not reduced FHA interest rates But there was still no McDonald No witness previ ously had ever failed to answer the call of TNEC Yet Mr Mc Donalds ominous neglect al though unrecorded on the com mittee record continued until the committee adjourned until Sep tember It seems fair to assume there is not going to be a reduction in FHA interest rates c Wouldnt Upset Season This assumption is partly con firmed by what committeemeji were told was the reason Mr Mc Donald was missing He was aware of what was in store for him they say A few hours before he was to testify he called Leon Henderson guiding secretary of the commit tee and told Henderson he did not feel he should throwany bricks at the building industry at this time He has to get along with the industry and has considerable stake in it This sounded like rea son enough The commHteemen feel that McDonald just dees not want to lower the interest rates right now at least not as much as what might be lightly called the eco nomic wing of the new deal Mr McDonalds FHA is now in the middle a building season and a cut in rates would upset the whole building industry The economists agree but complain that he should have acted before the building season started However the president does not seem to be very hot on the sub ject as he omitted it from his mes sage submitting the invisible spending program his economists had urged him to include All in all it therefore seems cer tain the drive is off until winter Present FHA Costs FHA insured mortgages cost the borrower per cent Onehalf per cent goes to FHA for insur ance threefourths per cent to the bank for service leaving around 4 per cent profit for the the way the economists figure They want to cut it by a full 1 or 2 per cent to furnish money for housing construction at 3 or 4i per cent Most FHA people are afraid of shaving that much They are not lending the money Private banks do it If banks can only get per cent out FHA insured loans turn their money else where and let FHA go hang FHA probably will never consent to a cut more than a fraction 1 per cent Allof which explains the part of the testimony that TNEC did not hear as the difficulties in reducing building costs When no outsiders are around the new dealers reler to Mr Roose velts hiring of Presidential Can didate Pavil McNutt as the In diana purchase An official coined the phrase 4 C Mr Roosevelt is groaning more than you know about his budget A delegation of congressmen who came up to urge him to approve a public works program of 000000 in addition to the 000000 invisible spending found it you about expenses He mentioned that congress had gone over his head on the farm bill that necessary in creases in national expense vas unexpected and spoke about the democrats going into the campaign next year Nevertheless some of his hear ers thought he would not fight very hard it congress put through a PWA program Theirs is prob ably wishful thinking Klnr Inc IOWA YOUTH DROWNS OSCEOLA Gavrett 1 of Murray drowned while swimming in a farm pond near here He was the son of Mr and Mrs Marion Garrelt His com panions said they believed he had an attack of cramps MASON CITY IOWA TUESDAY JULY 18 MASON CITY THI iUKJHT THIS PAPER CONSISTS OF TWO SECTIONS SECTION ONE NO 240 FUGITIVE JACK RUSSELL CAUGHT STRIKE OF WPA BELIEVED TO BE MOSTLY ENDED Relief Officials Turn Attention to Enforcing Other Restrictions By THE ASSOCIATED PRESS WASHINGTON dent David Lasser of the Work ers Alliance Tuesday ordered his membership to abandon the WPA strike and called a nation wide demonstration Thursday demanding sweeping revision of the 1940 relief act With the strike of WPA work ers over the new 130 hour work month apparently ended except in a few eities relief officials turned their attention Tuesday to enforcing other restrictions re cently enacted by congress State administrators struggled lvnnhn the of trimming 300000 names off the WPA rolls by Aug 1 to conform to a re duced budget The law requires furloughs of those on the rolls continuously for 18 months and Col F C Harrington the WPA commissioner said such persons would constitute most of those dropped Howl Is Predicted In Washington headquarters WPA chiefs studied means of elim mmating geographical differen tials in pay to preserve the pres ent national average security wage of Harrington said this would necessitate increases in the south arid decreases in the north and west He predicted il would cause a howl Return of striking workers to their jobs did not end the attempt of labor leaders to obtain repea of the 130 hour law in favor ol the old prevailing wage system The law requires each employe to work 130 hours for his monthly security wage thus lowering the hourly rate some craftsmen Are Not Encouraged William Green and other AFL leaders called on congressional leaders in Washington Monday Green said the labor officials were neither encouraged nor discour aged by the reception of their suggestions but most members predicted the session would end with no change in the law After conferring with Vice President Garner Green said I gained the impression he felt there would be great difficulty in getting anything through congress this session The strike situation in Penn sylvania and Minnesota differed from that apparent in most other states McDevilt Ridicules Figures WPA officials said only 766 were absent from the 4J Phila delphia WPA projects and 501 of 1D725 WPA workers were out in Pittsburgh These figures were termed ridi culous by James L McDevitt president of the Pennsylvania Federation of Labor He said there would be no disorder in the strike AFL workers on WPA projects called Monday in the stale Mr and Mrs Corrigan Bodies of 28 Miners Brought to Surface PROVIDENCE Ky reaved wives and mothers stood silently at the entrance to the Duvin coal mine Tuesday as vol unteers brought to the surface the bodies of 28 miners killed in a dust explosion which shattered the mine interior Friday night The task was a difficult one The miners were trapped more than two miles from the mine shaft and each body had to be carried through water and debris more than a mile and then taken the remainder of the distance on small electric cars The Weather FORECAST IOWA much cloudiness showers in south portion Tues day night or Wednesday and in north portion Wednesday not much change in temperature MINNESOTA Partly cloudy Tuesday night and Wednesday except showers in extreme south portion Wednesday afternoon warmer in northwest portion Wednesday IN MASON CITY GlobeGazette Weather figures Maximum Monday 73 Minimum Monday night 61 At 8 a m Tuesday 55 Rain 07 inch YEAR AGO Maximum gg Minimum 55 v T areUMrand Mrs Corriean after their weddine at San An compass was in perfect working order as he charted his course to the church and down the aisle to the altar It eTh lhe lvronS to The bride is the former Elizabeth Marvin Asserts Scores of Fictitious Calls in Cab Strike Received WATERLOO While 18 union drivers of the Yellow Cab company Tuesday continued their strike which began Monday Roger Birdsall attorney for the company asserted the cab office was receiving scores of fictitious telephone calls for service Union officials denied any knowl edge of the calls Two taxicabs were being operated by the com pany Tuesday All calls for service were being rechecked Birdsall said Birdsall said all cars will be put into service with nonunion driv ers as soon as licenses can be obtained fromthe city council which will meet Monday night for new employes The union men are seeking a a week guarantee closed shop and seniority rights DOUBT LIFTING OF WPA RULING Officials State Issue of Dismissals Raised in Stassens Letter WASHINGTON pro jects officials said Tuesday they were virtually certain that the five day dismissal rule would not be lifted in the Minneapolis WPA strike situation They said they understood that Governor Stassen of Minnesota raised the question in a letter to Col F C Harrington national WPA commissioner asking that he suspend the rule which auto matically dismisses workers who absent themselves five days In Harringtons absence asso ciates said they would be very much surprised if he lifted the rule adding that it applied the same to all the country and that there was no extenuating circum stance at Minneapolis David Lasser president of the Workers Alliance expected to con fer Harrington and other offi cials on the alliance poll of WPA worker sentiment in the Minne apolis strike He said he would make public after the conference the vote of the alliance board whether to support or call off its part of the strike At the same time Lasser said he would announce results of the poll on whether to call off a nation wide oneday demonstration scheduled for July 20 against the new WPA wages and hours pend ing the outcome of congressional attempts to amend the law COLLAPSES AT DINNER LONDON Hugo Talsch Masonic aulhor of BoVion and Brookline died at Charing Cross hospital Monday night after collapsing at a Masonic dinner at the fashionable Connaught rooms TINKERS WITH PLflNE FQRTRIP Corrigan Following Hearty Farewells Has to Repair Air Jalopy SAN ANTONIO Tex Friends said that since his name was Douglas Corrigan there could be no authoritative guess as to the destination of the honeymoon ing wrongway flyer The grinning Irishman who a year ago to the day hopped the Atlantic from New York to Dublin when according to his story he got his directions mixed Monday married his childhood sweetheart Miss Elizabeth Marvin a school teacher The wedding party of relatives and fellow flyers followed the couple to the airport and there Corrigan blushed as after some what hearty and lengthy farewells the honeymoon departure was de layed while he tinkered with the faltering motor of his eightyear old aerial jaloppy SKIES CLOUDY IN MOST OF IOWA Temperatures Continue at Comparatively Low Point in Mostof State DES MOINES iP Cloudy skies covered most of Iowa Tues day as showers and variable tem peratures featured the days weather The weather bureau pointed out that while the mercury rose Mon day to a high of 93 at Omaha thermometers were confined to mild 70s throughout most of the eastern part the state with the highest reading there 80 degrees at Marshalltown Nearly every Iowa station re ported traces of rain but the eastern section had the heaviest amounts with Davenports 165 inches Monday leading the list Forest City had Monday nights lowest reading 60 degrees Fog Tuesday morning was reported at Iowa Falls and parts of northern Iowa Townsendites Give Pennies for Program WASHINGTON pen nies provided by Townsend clubs benator Downey DCalif an nounced plans Tuesday for a radio campaign starting in Sep tember to make oldage pension erouos an influential factor in the 1940 election The campaign will begin with broadcasts from Cleveland designed to reach list eners in Ohio and Indiana rnd will be extended gradually until by Jan 1 it becomes nationwide F R ARRANGES NIGHT SESSION IN WHITE HOUSE Three Republican Senators Invited to Discuss Legislation WASHINGTON extra ordinary night conference at the white house was arranged by ad ministration senate leaders Tues day apparently for the purpose of weighing finally the chances for neutrality revision this ses sion The meeting at p it was authoritatively reported will include President Roosevelt and Secretary Hull Senate Demo cratic Leader Barkley Chairman Pittman DNev the senate foreign relations committee and three senate republicans Minor ity Leader McNary ol Oregon and Borah of Idaho and Austin of Vermont Seek Individual Views Invitations to the republicans were said to have been telephoned Monday night and Tuesday morn ing by Senator Barkley Senator Austin said it was his understanding that the president and Hull wished to learn the in dividual views of the members on efforts of the administration to obtain revision of the neutrality law before adjournment However it was reported that McNary had made an in formal poll of republican senti ment regarding possibilities neutrality action This was said to have disclosed that most re publicans desired to defer dis cussion Austin who has publicly sup ported the demands of Mr Roose velt and Hull arms trality law said he personally thought it would be wiser to post pone consideration until next January I think that in the months to come the country will be practical unanimity opinions he de clared Then we can come back and consider this matter in a calm light when the atmosphere not so supercharged as it is ow Borah was the only member the group who voted with the majority of the Foreign Relations committee to postpone action until next session Three possible methods of re viving the controversial neutral ity bill were under scrutiny by the administrations congressional leaders Barkley said that they were 1 The senate might be asked to discharge the Foreign Rela tions committee from further responsibility for the bill which then would go directly to the floor for debate 2 The legislation might be attached to some other pending bill as a rider 3 Some member of he Foreign Relations committee might be won over to the administration viewpoint thereby reversing the 1211 vote by which the com mittee recently shelved neutral ity legislation until the next session Havent Given Up We have not given up Bark ley asserted We still are hope ful that something can be done Beaten in Horlon Riot John T Collins center said he was beaten near Draper Ky iL iie mC1 lenllfictl union men after they had asked him to join the union Here he is being examined for wounds by national fn the blootly Harlan area in an effort to prevent bloodshed in the current labor dispute BURGUNDER GETS DEATH SENTENCE Young Man to Die in Lethal Gas Chamber for Slaying Salesman PHOENIX Ariz in the states lethal gas chamber was decreed Robert Burgunder 22 year old college sophomore Tues day by a jury which him of killing Jack convicted Peterson Coinciding with his study of possible legislative moves Bark ley approached the senate repub lican leaders with the suggestions that they go over the whole neu trality question at a conference with President Roosevelt and democratic chieftains A presidential secrelary said there was no plans to receive a congressional delegation but ad ded that any which made known a wish to come would find the House door open G O F Agree to Talk Barkley said Senator McNary of Oregon the republican leader and Senator Austin of Vermont assistant republican leader had agreed to talk with the president if a situation developed in which such a conference would be de sirable A conference would be desir able Barkley explained if the ad ministration should want to ascer tain how far the republicans would cooperate in seeking neutrality legislation at this session He declined to say whether he had initiated the conference idea or whether it had come from the president 10 SOLDIERS DROWN PRAGUE UR Ten soldiers drowned and five were rescued near the Slovak frontier when a pontoon bridge on which they were working capsized a dispatch said Tuesday Officers who at tempted to save their men were among the victims it was said Phoenix automobile salesman The youths father former Seattle prosecutor had pleaded as head of defense counsel for a verdict of not guilty by reason of insanityand attempted to shoulder the blame as a neglectful and ignorant parent Peterson was one of two sales men lured to death in the desert under the pretext that a customer wanted a car demonstrated Bur gunder fled and was captured in Tennessee His divorced parents both came to his defense describing him as youth with a gambling mania His mother said she was to blame for his mental condition the day of the slayings having chided iiim in a letter without knowing ic was brooding over gambling losses Burgunder heard the verdict svithout emotion His mother Mrs Ruth Burgun der Alhambra Cal appeared deeply shocked More Iowa WPA Workers to Be DES MOINES ed dismissal of 2813 more Iowa WPA workers before Aug 1 will bring to nearly 5000 the number affected by the reduction in WPA rolls State Administrator George J Keller said Tuesday Nearly 2000 workers were dis missed the first week in July be cause ol quota reductions Keller said the new reduction would be made by removal 01 workers employed continuously for IB months or more on WPA projects LOOK INSIDE FOR Wirtz Quits Iowa U Post for NU Job IOWA CITY of Iowa officials announced Prof Willard W Wirtz member of the law college faculty had resigned to accept a similar position at Northwestern university He came here from Harvard university in ERNEST F LUNDEEN Favors Getting Islands in Panama Vicinity PAGE 2 Diz Off at Boss of Bruins PAGE 9 Insufficient Cream Collection Costly PAGE B Fourth Person Dies in Clinton Accident CLINTON toll of an automobile accident north here Saturday night was raised to four Tuesday when Sclden Orrick 28 died at midnight from injuries in a local hospital Charles Carter 26 Arthur Fleming 24 and Floyd Fulton 22 were killed instantly when their car plunged off the highway north of here and rolled down a 75foot embankment 30 English Bombers in Show of Strength LONDON British Wellington bombers flew over London Tuesday on what the nir ministry described as a routine flight Such a mass flight over London was unparalleled and it was considered a continuation of showing the public Britains air strength Police Invitation Goes Awry Seems the bike wasnt there when Rocco went back Seems a thief took it GIVES SELF UP WITHOUT FIGHT INOZARURK Readily Admits Four Kidnapings But Denies Guilt in Slaying OZAHK Ark Rus ell the Oklahoma fugitive sought or the kidnaping four men and he possible slaying of one was captured 18 miles from here Tues day He surrendered without a fight Russell admitted the kidnapings rat denied he had killed Billy Hamilton Russell was arrested by Sheriff phamp Crawford who lured him irom a cabin on Mulberry creek and then covered him with his n Hunted in Four States Dont move or Ill kill you Crawford told Russell Im not going to move the fugitive said I know you have it on me Russell had been hunted through four states for the past week since his escape from the state prison near McAlester Okla He was ac cused kidnaping Hamilton in Kansas taking him to Ringwood 111 and there torturing and mur dering him In the course his flight from state and federal officers he had kidnaped three other persons but released them unharmed Officers Start Fishinp Crawford received a tip ihat Russell was in the little tourist camp Monday night Richard Hill a constable told him a stranger was in camp and that he believed he was Russell Tuesday morning Crawford and Hill drove near the camp and started fishing in Mul berry creek Hill kept out of sight in the underbrush and I worked my way up the stream until I was right outside his cabin the sheriff said Then I called out that his gas tank was leaking and that he had better look at it Well he walked right out in his shirt sleeves and we had him I drew my gun and Hill stepped into sight too That was all there was to if Clean Shaven Refreshed Crawford said Russells loaded revolver was lying on the bed in the little cabin Russell was clean shaven and appeared refreshed after a good nights sleep He had Hill and Crawford put Russell into iheir car and drove the IS miles back to Ozark On the road he told us all about the kidnapings but he de nied he kidnaped that Kansas boy yho was found murdered in Il linois Crawford said He ad mitted the other kidnapings though Since Russell overpowered an Oklahoma prison guard at Mc Uester a week ago Tuesday he had kidnaped men in McAlester Okla Pittsburg Kans Kenosha is and Kansas City Mo In the last kidnaping he took Huron Cox a Negro garage at tendant and made him drive a police radio equipped car from a garage A few blocks from the garage he shoved Cox from the car After I got out of Kansas City I drove right down U S 69 and then headed east into the Ozark hills Bussell said I got into that camp Monday night and got some sleep I needed some right badly The police car was parked beside the cabin Russell had put Iowa license plates on il it carried Texas plates when he stole had dismantled Ihe huggywhip radio aerial that yould have aided in identifying it The police siren still was at tached but he had pulled the twoway radio set loose and put It in the back After Russell got away in Mc Alester he kidnaped R E Brown a photographer and for 24 hours they drove through Oklahoma Arkansas Missouri and Kansas He told Brown he was going to Chicago to kill his wife for turn ing him in on a robbery that re sulted in his Oklahoma prison sentence Twice he threatened to kill Brown before he decided he needed a faster car He forced Brown to stall his car and pretend it had broken doxvn Then he flagged down a motorist told him he needed parts and got a ride That motorist police be lieve was Billy Hamilton the young flour salesman from Ar kansas City Kans whose body was found Friday near Ringwood Hamilton had been beaten on the head shot and stripped of his clothes His car was found aban doned near Kenosha where Rus sell kidnaped Bud Egholm Okla homa City Friday night Egholm was put out of the car Saturday near Elgin 111 J Egholms car was abandoned in ;