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Mason City Globe-Gazette (Newspaper) - June 1, 1937, Mason City, Iowa 7 si NORTH IOWAS PAPER EDITED FOR THE HOME THE NEWSPAPER THAT MAKES ALL NORTH 1OWANS NEIGHBORS HOME EDITION FIVECENTS A COPY ASSOCIATED PRESS AND UNITED PRESS FULL tEASED WIRES Incidents in Washington Funny Little Things Get Attention of Capital By CHARLES P STEWART ASH I N G T O N Quite a few inconse quential but f u nny little things have been occurring in and about Washington re cently For example Not long ago Charles F Koene a cap ital realtor traveling from here to Nor folk dis appeared some time in the night from his stateroom on a Potomac River Chesapeake Bay steamboat called the District of Columbia It might have been suicide but it looked more like murder the circumstances of the case didnt exactly bear out either of thesetwo theories It was ratheras if the missing man simply had evaporated It was a regular Sherlock Holmes mystery The Washington police began trying to solve it So did the Vir ginia police So did the Maryland police Since it was an interstate rtiatter the Gmen took a hand in it The federal bureau of navi gation being responsible for safety at sea didlikewise Stateroom It soon was ascertained that a Mrs R F toper had occupied a stateroom adjoining Keenes Inasmuch i as her cabin and Keenes were separated by but a thin partition it immediately was conjectured that she might be a valuable witness All of the ablest and fed this part of the United States finetooth combed Wash jngton Baltimore and Norfolk for a week for Mis R F Loper They couldntfind he Then all at ooce she turned up voluntarily at MASON CITY IOWA TUESDAY JUNE 1 1937 THIS PAPER CONSISTS OF TWO SECTIONS SECTION ONE NO 202 AMELIA OFF ON WORLD FLIGHT the navigation bureaus I VI see by the Pjiper shesaidi that mx wheie Book Did you look asked Mrs Lopei rn thetelephohe book Why no hadnt Her name was and is in the book all right but for asteuth that would have been too obvious Mrs Lopers tes timony wasnt of any value any way Paui V McNutt of Indiana new high to the Philip pines as we know has insisted that toasts drunk at Manila be drunk first in honor of President Roosevelt then of himself Mc Nutt and thirdly in honor of President Quezon ot the Philippine the Fili pinos to toast Roosevelt pri marily Quezon secondarily and McNutt thirdly The statedepartments division of protocol which decides these questions precedence iules that McNutt technically is correct An Official Decision iThis however is an official de cision only Unofficially the protocol division asks Why shouldnt a banquet waive oasts anddevote itself to serious drinking Pretty intelligent for an outfit like tlie protocol folk These situations as initially re marked arent important But theyre funny FINISHES FIRST LAP OF FLIGHT IN PUERTO RICO Makes Dawn Test Radios Everything Okay We Are on Our Way SAN JUAN P H lia Earhart arrived here at p m CST Tuesday completing the first leg of her roundthe w or Id flight which started Tuesday morn ing at Miami Miss Earhart accompanied by navigator Capt Fred J Noon an set her low winged twin motored mono plane down in Puerto Hico seven hours 34 minutes after she started on the 1181 mile journey across the Caribbean The next point in her 28000 mile dash around Amela Earhart the globe fol lowingthe equator was to be Par imaribo Netherlands Guiana 1373 miles from Sari Juan To Natal Next From there the flyer trying the equatorial flight for the second time intended to fly to Natal Brazil thence across the South Atlantic across Africa to Asia Australia and eventually to Oak land Cal terminus the flight MissEarhart put her ship through a dawn testof near taking off from mum 41a m she messaged Pan American An ways by ladiont JSveiyttung okay We are on ourway Last March 17 Miss Earhart took from Oakland on a west ward flight around the world It failed when she crashed at Hono lulu after a tire blowout on the runways Reverses Her Route Reversal of her route on life the will carry her past the worst an ticipated weather sooner than if she were to make another at tempted westward flight The worst weather Miss Earhart fore saw was in Africa where it was explained flying conditions grow worse daily at this season The route of the flight was near the equator most of the way The plane with a capacity for 1100 gallons of gasoline carried 600 gallons on the comparatively short hop to San Juan SO THEY President Roosevelt in his mes sage to congress I am confident that the congress will wish to en act legislation at this session speci fically and exclusively aimed at making thepresent tax structure evasion proof Amelia Earhart by radiofrom her plane as she started a flight around the world Everything okay We are on our way C C Slapnicka vice president of Cleveland Indians baseball team on deciding to send Bob Feller youthful pitcher from Iowa home for a rest Bob still feels the soreness in his forearm and it has been decided that a complete rest will be beneficial Mrsi Ifla B Wise Smith of the W C T U estimating a half teaspoonful of beer would give her tunnel Tunnel vision is a visual condition which prevents an automobile driver from seeing anywhere but straight fn front of him John L Lewis labor leader ac cusing the Republic Steel corpora lion andChicago police force of planned murder in the death of several steel workers in a riot Sunday The nation knows the Chicago police force is corrupt It is the same force that for years has protected the hoodlum and thethug i NAZIS FORMALLY ACCUSE VATIC AN See Relations Endangered by Failure to Disavow Mundelein Speech BERLIN German gov ernment Tuesday formally ac cused the Vatican of endangering normal relations with the nazi reieh by failing to disavow the critical speech of George Cardi nal Mundelein of Chicago A diplomatic note handed to the holy see by Diego von Bergen the German ambassador to the Vatican said The holy see must realize that its unexpected and incomprehen sible altitude in this matter so long as it remains unremedied has removed the preconditions for the normal course of relations between the German government and the Roman curia The Roman curia is the body of congregations tribunals and offices through svhich the pope governs the church The foreign office said the note did not mean that relations with the Vatican were now being broken off Von Bergen it was explained left Rome on his usual summer vacation But it was stated he will not go back for some time Earlier the German government had made formal representations to the Vatican against Cardinal Mundeleins speech in which he calledAdolf Hitler an Austrian paper hanger and a poor one at that and assailed German trials priests and lay brothers on im morality charges as atrocity propaganda Senate Votes to Probe Tax Evasions Vote Follows Roosevelts Message Asking Congress to Plug Loopholes in Law DIES OF INJURIES WEBSTER CITY Robbins 74 WebsterCity farmer died of injuries suffered when he was thrown from a tractor he was operating under a disc harrow sen ate acting in immediate response to a special message from Presi dent Roosevelt Tuesday passed without arecord vote a joint reso lution calling for a far reaching in vestigation of shocking tax eva sion and avoidance Both majority and minority factions in the senate joined in support of the resolution which will create a joint congressional committee to iiivestigate methods allegedly used by wealthy Ameri cans to evade or avoidfull pay ment of federal levies Tlie resolution was introduced by Senator Pat Harrison D chairman of the senate fi nance committee immediately after the reading of Mr Roose velts message which called atten tion to the asserted widespread tax evasions and stated that im mediate passage of legislation to plug revenue law loopholes is imperative It was expected that legislative action to close loopholes in the tax laws would be taken while the inquiry is in progress Methods of Evasion Methods of tax evasion are many the president said but all are alike in that they result in shifting the tax load to the shoulders of others less able to Mr Roosevelt urged congress to grant the treasury full power to summon witnesses and compel their testimony in an investigation of tax evasionsestimated to have cost the government between and 000DOO 11 revenue did mention congressional in the proposed inquiry Mr Roosevelt quoted the late supreme court Justice Oliver Wendell Holmes definition of tax es as what we pay for civilized society Too many individuals the president said want the civiliza tion at a discount Opposed to Revision The president sought to fore stall anindicated attempt in cer tain congressional circles to ex pand consideration of antitax evasion legislation to include re vision of the entire tax structure It seems to me Mr Roosevelt said that the first duty of the congress is to empower the gov ernment to slop these evil prac tices and that legislation to this end should not be confused with legislation to revise tax schedules He pointed out that he had al ready suggested to congress that there should be no new taxes or rate changes at the present ses sion but left ahint that revision of the revenue laws might be un dertaken at the next session Can Act Later I have indicated to the con gress he said that the treasury will be prepared by next Novem ber to present to the appropriate committees information on the basis of which the congress may if it chooses undertake revisions of the tax structure The president included in his message a letter from Secretary of the Treasury Henry Morgen thau Jr which cited the principal types of tax avoidance and eva sion disclosed in a preliminary study of income tax returns for the calendar year 1936 The evasion devices enumerated by Morgenthau included 1 Formation of personal hold ing corporations in nearby foreign countries and islands 2 Creation of closely held for eign insurance companies Personal Holding Companies 3 Formation of domestic per sonal holding companies incor poration of yachts and country es tates 4 Artificial deductions for in terest and losses oh loans to tax payers by their personal holding companies or family trusts 5 Creation of multiple trusts for relatives and dependents 6 Formation of husband and wife or father and children part nerships 7 Setting up of taxfree pension trusts of which the only benefi ciaries are small groups of officers and directors in the high income brackets In addition Morgenthau set forth three major instances in which the law itself permits in dividuals and corporations to avoid their full share of the tax burden These included Division of Income 1 Percentage depletion of such properties as oil wells and mines 2 Division of income between husband and wife in stales having community property laws 3 Elimination of the require ment that a nonresident alien must file an income tax return Although the methods of escape or avoidance of tax liability are different in that some are legal because of loopholes in the reve nue act some are on the border line of legality and others plainly illegal Mr Roosevelt held they were all alike in that they are definitely contrary to the spirit of the law Feeling of Indignation Morgenthaus letter the presi dent said left him with a feeling of indignation What the facts set forth meaa to me is that we have reached an other major difficulty in the main tenance of the normal processes of our government Mr Roosevelt said We are trying harder than ever before to relieve suffering and want to protect the weak to curb avarice to prevent booms and depressions and to balance the budget Taxation necessary to these ends is tne foundation of sound governmental finance When our legitimate revenues are attacked the whole structure of our government is attacked Clev er little schemes are not admir able when they undermine foundations of society The president said that not one but many red herrings are in pre paration to obscure the real issue Decency of Morals Already certain newspaper publishers are seeking to make U that if an individual can devise unanticipated methods to avoid taxes which the congress intended him to pay he is doing nothing unpatriotic or unethical and second that because certair not approve it high Income tax biaclcets oi the un distributed earnings or the capital gains the first duty of congress should be the repeal 01 reduction of these taxes The president said the problem involves the American morals The example of successful tax dodging by a minority of very rich individuals the president continued breeds efforts by oth er people to dodge other laws as j well as tax laws Matter rif Regret It is also a matter of deep re gret to know that lawyers of high standing at the bar not only have advised and are advising their clients to utilize tax avoidance devices but are actively using these devices in their own per sonal affairs I am confident that the congress will wish to enact legislation at this session specifically and ex clusively aimed at making the present tax structure evasion proof Morgenthaus letter described the treasurys surprise and dis turbance at the failure of March income tax receipts to measure up to budget estimates The re sultant preliminary study dis closed conditions so serious the cabinet member wrote that im mediate action is1 called for 61 Bahama Firms The most popular ot the tax evasion devices he said involved the creation of foreign personal holding corporations in the Ba hamas Panama Newfoundland and other places where taxes are low and corporation laws lax Americans have formed 64 such companies in the Bahamas alone in 1935 and 1936 and 22 more were organized by Ameri cans in the Bahamas during the past two months Morgenthau related He snrcastically applied the description thrifty to a tax payer who formed 64 trusts for the benefit of four members of his immediate family and thereby claimed to have saved over 000 in1 taxes in one year 13 DES MOINES LAUNDRIES SIGN UP WITH UNION Agree to Closed Shop Plan to Reopen for Business on Thursday DES MOINES of 13 laundries here closed by strikes Tuesday signed a contract with union representatives providing tor the opening of their plants Thursday Owners could not be reaphed for a statement on the settlement James W Soutter secretary of the Des Moines Trades and Labor assembly said the terms of the settlement were Recognition oC the laundry workers truck drivers and engi neers unions as bargaining agen cies for all plant employes Seniority rights Arbitration of wages hours and working conditions Provide Closed Shop Employes who are or become members of the unions during the effective period of the contract must remain members during its life and members expelled or suspended by the union must be discharged by the company until The Weather FORECAST IOWA Mostly cloudy Tuesday night and Wednesday probably showers arid thunderstorms in west and south Tuesday night or Wednesday slightly cooler in extreme east Tuesday night MINNESOTA Partly cloudy fo cloudy Tuesday night and Wednesday slightly warmer in northwest Tuesday night not quite so cool Wednesday in northeast and eastcentra por tions IN MASON CITY GlobeGazette weather figures for 24 hour period ending at 8 a m Tuesday Maximum Monday 72 Minimum in night 5fi At 8 a m Tuesday 59 Rainfall Trace The contract is effective Aug 1 1938 Soutter said Negotiations concerning wages hours and worlcing conditions will begin in GO days he said He de dared they would be between committees representing laundry arid employes r Soutter said willxbeori piafttsia m Wednesday tiuclcs piclc ugs Taegin Wednesday Nnooi and actual laundiy operations a 7a m Thursday Closed S Weeks The plants have been closed fo the past eight weeks some of then occupied by sit down strikers Sev eral plants have suffered damage mostly in the form of windows smashed by night vandals The union leaders called the strike seeking preliminary recog nition of their organization as a collective bargaining agency Wage and hour disputes between work ers and owners were also listed under grievances Gov Nels G Kraschel entered the strike negotiations two weeks ago calling owners and union rep resentatives into conference Proposal Turned Down The union men refused to ac cept the governors peace proposal which provided a 45 day truce dur ing which the plants would operate on a prestrike basis Negotiations were to begin after the truce ter minated The union last week was re ported to have drawn up a peace agreement embodying some of the governors proposals The governor walked out of a second peace con ference when both sides admitted stalemate Fresh negotiations began last weekend when union leaders and owners sal down to conferences HOUSE VOTES TO OVERRIDE VETO Rebels Against Roosevelt Disapproval of War Risk Term Insurance WASHINGTON coali tion of house republicans and re bellious democrats Tuesday voted to override President Roosevelts veto of a bill for further extension of 5year warrisk term insur ance The vole to override was 368 to 13 A twothirds majority was necessary The bill affecting more than 20000 veterans who went off the insurance rolls Tuesday extends the insurance five additional years The bill now goes to the senate for a vote The last time a bill was passed over the presidents veto was the soldiers bonus measure last year Thc revolt of administration congressmen was led by Chair man John Rankin D Miss of the house veterans committee author of the bill Historic Term of High Court 3omes to End WASHINGTON IP The su treme court wound up an eight month historic term Tuesday by greeing to pass upon constitution ility of federal loans and grants o aid in financing municipal power plants It then adjourned not to meet again until October Before that ime congress may act on Presi dent Roosevelts controverted court eorganizafion proposal to put new blood in the highest bench Before adjourning the court de clined to review litigation filed by the Electric Bond and Share company and 28 subsidiaries chal enging constitutionality of the 935 act regulating public utility holding companies Van Dcvantcr Through That left in effect a lower court ruling which required such com panies to register with the secu ities commission but did not in volve constitutionality of tlie leg slation A review was sought without waiting for a customary opinion by the circuit court ot ap peals This was the final session at ended by 73 year old Justice Wil is Van Devanter retiring after 2B years ot service He will spend most of his time on his Mary land farm Among actions Tuesday the court Refused to review a decision by the sixth circuit court of appeals ordering a trial before the eastern Tennessee federal district court to determine whether the Tennes see valley authority could expand its power progiam in eight states companies vtrc TVA ac tivities 1 n v Wagper Act Cases v Declined to pass on two new cases challenging the Wagner la bor relations act on the ground hat it made no provision for a ju dicial review of decisions by the national labor relations board as to who should represent employes in collective bargaining The ap peals were filed by the El Paso Electric company and a group of its employes and by the indepen dent workers of Clayton Mark and company ot Chicago Consented to review a ruling by the court of claims that Robert A Taft of Cincinnati son of the late William Howard Tatt could not collect interest on a gold liberty bond which had been called for redemption in advance of the maturity date A total of 540000 of such bonds were called y the treasury before they ma tured Home Owners Loan Agreed tu pass on conviction of crtrude Kay of New York ot vio lating sections of the home own ers loan act prohibiting false state ments She was sentenced to serve a year and a day in prison and challenged provisions of the act setting up the home owners loan corporation Litigation the tribunal agreed to will be argued next fall with a final decision a few weeks hereafter The ratings of the lower courts remain in effect on cases in which a review was denied Over 50Controversies More than 50 controversies ap pealed from lower courts were act d on Tuesday The merits of the egislation was not involved in the action of granting or denying pe itions for review In addition the court delivered inal opinions on a few cases which lad been argued None was of gen eral interest Within a few days all of the justices will leave Washington to spend the summer in various vaca tion retreats LOOK INSIDE FOR IDA B WISE SMITH Discourses on Effects of Beer on Auto Driver PAGE 2 13 Die in Accidents Drownings in WeekEnd PAGE 8 GlobeGazette Joins Y to Make Safe Swims PAGE 9 New Campaign on Weed PAGE 12 CUT UY BOTTLE OMAHA Theison Sioux City policeman was cut about the right leg by flying glass at the AkSarBcn race track when a bolfle crashed at his feet while he was walking outside the grandstand Wants Visitors to Nebraskas Capitol to Be Dignified LINCOLN Neb Stale Land Commissioner Leo N Swan son custodian of the Nebraska capitol building wants visitors to the edifice to be dig nified He said so Tuesday in a large sign posted inside the main en trance which positively forbids running and sliding on the marble floors IOWANS AID RESCUE ORR Minn H River stock and C L Howorth both of Waterloo Iowa aided in rescuing four persons from the Ash river when their boat capsized Two of the six in the party lost their lives The lowans witnessed the accident from shore and wentto the rescue ARREST SECOND MAN AT CORWITH Stephens Questioned Abou Events of Night Anfinson Was Slam W Stephens about 44 Corwith was arrestec early Tuesday 8id officers planned to question him to see if he might be able to provide any clews on a solution to the slay ing of Bert Anfinson Corwith beei parlor operator Stephens was taken to Garner and later was expected to be taken to jail in Mason City where Frank Weider a suspect in the case is beinj held Stephens arrested about oclock at Corwith by Hancock county authorities had been liv ing in rooms over a grocery store with his divorced wife and theii children He had been working in the store which she operated Served 3 Months It was understood that officers were called to the place when a daughter Dorothy asked officers to investigate a fracas that was said to have occurred at the Stephens place Stephens served three months in jail at Mason City last winter on a liquor charge It was about that time that his wife received a divorce Stephens is father of two sons andfour daughters one of whom is married Officers stated some time ago after the arrest of Weider that other arrests might be made in the case It has been indicated that still moie arrests may be made as officers continue investigations Found Near Toolhouse Anfinson was slain the night of May 20 or early May 21 His body was found near a railroad toplhouse but officers believed he might have been knocked uncon scious at his beer parlor and carried to the railroad tracks where he was struck a number of times Weider was arrested after blood stains were found on his shirt Tests showed these stains were not from a chicken as he had claimed Louise Weider 23 daughter of the suspect was employed by Anfin son Last Day to File for Homestead Benefits DES MOINES GP Tuesday was lie List day fovrans could file applications with county auditors for tax relief under the new home stead tax reduction act U S IN PEACE APPEALTOBOTH GERMANYSPAIN ritain Protests Violence of Spanish Loyalists in Peace Move WASHINGTON ull has expressed to both the jerman and Spanish ambassadors Washington this governments arnest hope that their nations ill be able to adjust amicably heir differences in the Spanish vil strife Invoking the good offices of this overnment in an attempt toward ft a serious crisis in Europeas a esult of the German bombard icnt Monday of the Spanish gov rnment port of Almeria Hull onvcyed his message in personal onversations with both envoys Spanish Envoy Protests He first summoned German imbassador Hans Dieckhoft to the rivacy of his apartment Monday nd told the envoy informally of his governments urgent hope for peaceful setlement of the Al geria incident The Spanish ambassador Fcr lando de Los Rios called at the late department Tuesday to ex press to the secretary of state his overnments emphatic protest over what he Germanys iolation of the nonintervention igreement and of international aw in firing on Almeria Virtually Same Message In reply Hull repeated to him virtually the same message he conveyed to Dicckhof f Elaborating at his press con ference on his discussions with1 the two envoyswhich were of chaiacter most unusual m4 mahc Rroeodure Hull intention to that the j S constantly and urges the maintenance oi peace by all governments ITALIAN WARSHIPS READY TO STOP RUSSIAN SHIPS ROME warships have been ordered to prevent Rus sian vessels from supplying war materials to the Spanish govern ment authoritative sources dis closed Tuesday nigh I Italian ships in Spanishwaters already have been withdrawn by Premier Mussolini from he inter lational neutrality fleet following Spanish government aerial attacks on Italian and German warships Germany has shelled Almeria in II Duce and Marshal Werdner Von Blomberg German war min ster meanwhile flew here for con erences over tlie grave Spanish iituation Authoritative fascist quarters aid that complete withdrawal of talys fighting ships from Span sh waters because of Mussolinis locision to quit the 27 nation hands off Spain committee vould make it too easy for the Spanish government Warnings also were sounded hat the next time an Italian war ihip is attacked there will be re prisals PROTEST SEEN AS WAY OF BOLSTERING PEACE LONDON Britain joined Germany nnd Italy Tues day in protesting Spanish govern ment violence against neutral as a measure to bolster Europes peace The British stand well informed sources believed was calculated to give reassurance to Berlin and Rome that their demands against the Spanish government were jus tified At the same time it was intended to obtain safety ot shipping through the creation by the Span ish government ot safety zones for neutral warships Not Taking Sides British spokesmen reiterated that the government was not tak ing sides in the controversy but was striving only to reform the framework of the international hands off Spain committee now weakened by Italian and German withdrawals following the bomb ing of a German pocket battle ship The British protest was based on an attack on the British Flotilla leader H M S Hardy off Palrna Mallorca on May 26 The foreign office said the ship was almost hit by aerial bombs The British Charge dAffaires at Valencia delivered the protest and received from the Spanish government apparent assurances of its readiness to establish de sired safety zone for neutral warships off Palma Need for Restraint Foreign Secretary Anthony Eden urged foreign envoys to re gard the need for restraint in the new SpanishEuropean crisis Informed quarters quickly stated that while the government deplored such attacks as the ;