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Mason City Globe-Gazette (Newspaper) - June 17, 1937, Mason City, Iowa NORTH IOWAS DAILY PAPER EDITED FOR THE HOME THE NEWSPAPER THAT MAKES ALL NORTH IOWANS NEIGHBORS HOME EDITION 1 VOL XLIII FIVE CENTS A COPY ASSOCIATED PRESS AND UNITED PRESS FULi LEASED W1HES MASON CITY IOWA THURSDAY JUNE 171987 THIS PAPER CONSISTS OP TWO SECTIONS SECTION ONE NO 216 More Labor Difficulties Stewart Says Wagner Act Has Been One Factor U S NAMES MEDIATION BOARD By CHARLES P STEWART A S H I N GTON CP Su preme court validation of the Wagner labor relations law may not have aggravat ed labor trou bles through out the United States but it is a fact that such troubles have been get ting worse since the law was judicially upheld At least the law hasnt ore vented this aggravation There was no reason to expect that it would All it seeks to do is to entitle labor to negotiate col lectively with employerdom It doesnt specify that they must come to terms If after negotia tion no agreement is arrived at a fight remains as much as ever the only means by which a deci sion can be arrived at Kicking Up Dust If anything the law has helped to precipitate a struggle It definitely has aligned the opposing interests Employerdom to be sure was in a standpat position already Labors consolidation however was not so clearly legalized It is now Heretofore on labors side the clash has more or less hung lire Today under the Wagner law there is governmentally recog nized cohesion in labors ranks as well as in capitals The two rival elements go to Treasury Heads to Give Names of Tax Dodgers the mat accordingly In short the Wagner law pitches the ring for the contest In the long run it may be a good thing to have had the battle over but it kicks up a deal of dust at present C I O Biff Faclor It isnt the Wagner laws vali dation alone that has hastened a showdown The activities of John I Lewis C I Oisah important factor in the situation iJ The C O less than a year old made an excellent getaway with its labor program It cant afford to delay in its effort Quick work must be its motto by all rules of sound strategy The Wagner acts validation helps it The two influences are interdependent Moreover the C I O must hump itself to be beforehand with the A F of L which be latedly begins to recognize that the C I O is getting the jump on it Psychological Moment This too is the psychological moment for labor to assert Itself With times picking up labor is in demand once more There still is a lot of unemployment but a scarcity of the best selection of workers The A F of L is getting some of the benefit of it but the C I O under John L Lewis more ag gressive leadership is profiting by it still more handsomely This recently was demonstrated by the Newspaper Guilds affilia tion of itself with the CK O The didnt disassociate itself from the A F of L with which it previously had been allied but Ihe presumption is that the A F of L will unload the guild as it generally has done with its affih nics which have turned C I O ward Worries Administration Well the capitalandlabor sit uation in this country verges on the revolutionary It worries the no mistake about it It worries capital too Were so accustomed to accept ing everything as is as a per manency that we cant believe that if really signifies anything Still theres a certain amount of fretting about it Not that were not getting out of this depression Butthe next one JAPAN REJECTS LIMITATION ON NAVY GUNS SIZE To Reply to Roosevelts Last Appeal for Curb on Arms Race TOKIO An authoritative source asserted Thursday Japan had decided to refuse a secret pro posal made by President Roosevelt for the limitation of naval arma ment to guns of 14 inch caliber The substance of the Japanese reply to what was described as the United States presidents last ap peal for a curb on the world naval arms race was expected to be that Japan adheres to the point of view that reduction of gun calibers from 16 to 14 inches will not achieve real disarmament Japan would insist this source said that genuine arms reduction could be obtained only through a definite quantitative curtailment More Likely to Agree President Roosevelt was said to have initiated the proposed reduc tion through United States Ambas sador Joseph W Grew recently at the request of Great Britain Great Britain was reported to have felt Japan was more likely to agree to a limitation to 14 inch guns if a last appeal was made by the United States On Maroh 27 Japan formally refused a similar direct proposal made by Great Britain Japan told Britain she would be unable to accept the limitation unless the United States as well as Britain agreed at the sametimeto reduce the size of larger ships Allowed UntiUApril After Japan withdrew from last years London naval confer ence the ensuing AngloAmeri LOOK INSIDE FOR JEANETTE MacDONALD Screen Star Takes Day Off Following Wedding PAGE 2 canFrench treaty allowed Japan until April 1 to say whether she would keep the caliber of guns on her capital ships down to 14 inches The Japanese refusal to accept a tripower limitation of gun sizes without a quantitative reduction in naval tonnages on the part of the two other great sea powers left the London pact signatories free to place 16 inch guns on the battleT Algona Desperado Is Sought After Chase PAGE 4 Chicago Beginning to Fill Up for Big Fight PAGE 15 Iowa State Brands to HoldAnnual Meeting PAGE 17 ASK PRACTICAL spin Pushes Mass Cleanup ships Size Still Limited The pact however still limited the size of American British and French capital ships to 35000 tons a restriction which did not apply to the Japanese Had Japan adhered to the Lon don naval treaty the size of guns would have been limited to 14 inches for all four powers The London treaty of March 25 193fiwas designed to succeed the Washington treaty of 1922 and the London treaty of 1930 which establisheda ratio of quantitative strength of 553 for Britain the United States and Japan The ex piration of the 553 treaties Dec il 1936 was the signal for the im mediate inauguration of a world inval building race SHOOTING CASE GIVEN TO JURY Willefovd Former lowan Admits He Killed His Wifes Lover CHICAGO case Samuel Willeford 32 who teslifie he shot his wifes 21 year old love Charles Truchan when they re fused to give up their affair wen to the jury Thursday Final arguments were brie Irwin Clorfene assistant states a torney did not ask for the deat penalty in his plea that the jurj find the defendant guilty On cross examination Willefoi added that Truchan had threa ened him and had told him I could stay home and take care the children while Truchan too The Weather FORECAST IOWA Partly cloudy Thurs day night followed by showers and thunderstorms Friday or Friday slightly warmer Thursday night except in ex treme northeast warmer Friday In cast cooler Friday night and in extreme northwest Friday afternoon MINNESOTA Probably showers and thunderstorms in west Thursday night and Friday in east beginning Thursday night or Friday slightly warm er in extreme south Thursday night coolerFriday except in extreme southeast IN MASON CITY GlobeGazette weather figures for 24 hour period ending at 8 a m Thursday So THEY W C Fields movie comedian planning to appeal from judgment I struck out this time but next time Ill hit a home run National Commander Harry W Colmery announcing that Legionnaires doing strike duty under police command are act ing as citizens and not Legion naires The American Legion is not a strike breaking organi zation c Dr Paul Weaver of Stephens college Columbia Mo addressing of Iowa Be careful the 4H state convention girls at Ames what you wish for because yours almost sure to get it o Gov Martin L Davey ot Ohio appealing to President Roosevelt for intervention in the steel strike The matter has gone way beyond the powers and opportunities of one state to deal with it out WIHefords wife Floris 27 The murder trial of the form Council Bluffs Iowa high school student opened Wednesday He testified lie shot Truchan an acquaintance of Jong stand ing In the Willeford home last April 25 at a meeting arranged by his wife Floris 27 mother of three children Asked Her to Return At this meeting the defendant said he learned his wife was an expectant mother and Truchan admitted responsibility for her condition He said he would take care ot her Willeford testified but I told my wife I would take care of her and the unborn child if she would return home I askea him if there was any thing which would make him leave my wife alone He told me that whatever happened he was going lo have her and I became enraged Willeford said he drew a pistol hidden in a divan and while his wife grabbed his arms he began firing at Truchan who was struck several times Then he said he asked neighbors to call the po lice Children In Court Mrs Willeford and her children Samuel Jr 11 Jack 9 and Floris 8 were in court while the husband LEGISLATION TO STOP EVASIONS Express Hope That Publi city Will Create Im proved Atmosphere WASHINGTON fficials Thursday asked congress o enact at this session legislation o close income tax law loop oles They promised to make pub is names of persons who allegedly lave employed methods to avoid edcral taxes Secretary ot Treasury Henry VIorgenthau Jr explained to oint housesenate investigating ommitlee the problem created by vhat he termed unethical and un varranted avoidance taxes and asked for practical legisla ion to remedy the situation Undersecretary of Treasury Hos vell Magill outlined to the com mittee specific examples of alleged ax and said he would submit the names of the persons vhom the treasury charges em iloyed the methods To Submit Names Magill said the treasury will jresent to the committee Friday he first of the names to be made public in connection with the in vestigation He indicated the ex amples submitted Friday would concern the alleged use of foreign personal holding companies to re duce tax liability Legislation Need Cited The treasury officials empha sized thejieed remedial legis lation at this session of congress but expressed hope that publiciz ing the names of the alleged tax avoiders will create an atmos phere in which men will hesitate to use these artificial devices to avoid payment of taxesjust as they hesitate to use such devices to escape payment of private debts Miigill mentioned specifically the example of the man who in corporated his yacht which also was described by President Roose velt in his special message to con gress requesting the tax investiga tion When spread upon the public records this device achieves such a ludicrous aspect tliat it is ex tremely doubtful whether it will be used again Magill said I should doubt very much whether any more yachts will be incor porated Protect Honest Taxpayer Rep Robert L Doughton D N C chairman of the joint committee read a prepared statement outlining the goal of the inquiry He said the com mittee would protect zealously the reputation of honest tax payers Only those who have used ilagrant methods of tax evasion iced to be uneasy Doughton said He added that every opportu nity would bo given to those named in the investigation to ap pear and give their side of the slory to the committee Morgenthau said the imme diate objective in the present of Opposition MOSCOW Stalins regime pushed its mass cleanup of opposition elements Thursday after announcing that the presi dent of one of the countrys eleven socialist republics had killed him self With at least 151 persons exe cuted within a year for alleged anti government activity offi cials disclosed hundreds of ar rests had been made throughout the soviet union and hundreds of thousands had been ousted from the communist party Alexander G Cherviakotf leader of the White Russian soviet soci alist republic which adjoins Po land was said by the government to have committed suicide The official explanation was family reasons But he had been denounced at a communist party meeting at Minsk capital of White Russia 45 of his colleagues had been seized on treason charges and the former commander of the White Russian army garrison Gen I P Uborevitch was exe cuted June 12 with seven other high army officers for plotting to U S S R A conspiracy to wreck Russian agriculture was alleged in the White Russian phase of the far lung effort lo stamp out antl overnment elements REPORT ITALIAN SHIPBOMBEDBY SPANISHPLANES Insurgents Capture Three Shiploads of Refugees Fleeing Bilbao LONDON Lloyds agent at Gibraltar cabled Thursday that the Italian steamer Madda had been bombarded by Spanish gov ernment aircraft off Oran Al geria but that she was not hit The Madda a 5181 ton steamer out of Genoa was damaged how ever from the concussion of the y Reported Resigned bomb explosions Her forepeak was reported FILM COMEDIAN PLANS APPEAL I StruckOut HeSelySAfteiv Losing Suit HOLLYWOOD JP W C Fields the man with the big red nose observed Thursday that he struck out Ihis time but pre pared an appeal from the judg ment awarded Dr Jesse Citron who sued him for on an unpaid medical bill But next time Ill hit a home run the movie comedian said You get the going to appeal Superior Judge O K Morion ruled In favor of Dr Jesse Citron at Riverside Cal Wednesday The physician testified he treated Fields for 25 days during June and July 193G and considered his fee only fair Fields had crosscomplained charging the doctors methods re tarded his convalescence He asked damages AWARDED SCHOLARSHIP CARROLL A Baumhover of Carroll has been awarded a scholarship by Harvard university He was the only lowan to be so honored Maximum Wednesday Minimum in nigbl At 8 a m Thursday V 64 Report Heavy Rains for Southern Iowa DES MOINES Heavy rains drenched southeast and south cen tral Iowa Wednesday night and early Thursday Burlington re ported the most rainfall 178 inches and father testified Public Defender Benjamin Bachrach disclosed Mrs Willeford was anxious for a reconciliation with her husband but Willeford did not indicate whether he would consent to a reconciliation if ac quitted The meeting at the home was arranged Willeford told the jury so that the three parties to the triangle could discuss the affair The children were present at the time of the shooting He snid his wife left him las March 29 afler writing a note tasking him not to try to find her emergency is practical tax legis lation but said he hoped that continued publicity which hear ings of this sort give the respect to the game of tax avoidance may help to create an atmosphere in which men will hesitate to use artificial devices to avoid pay ment of taxes Socially Legitimate Most of the individuals us ing avoidance methods believe thn methods are socially legitimate Morgenlhau said They profess complete person al irresponsibility contending that if their methods are wrong it is Ihe duty of the tax administration to ferret them out and to conduct long and expensive litigation in order to determine their validity he said The individual believes that he is morally entitled to take the sporting chance and that he has nothing to lose and everything to gain by taking it Morgenthau said the tax avoid ance methods affected the govern ments revenue in the following ways Do Not Have to Pay 1 They create belief that rich men with expensive attorneys do not have to pay taxes He declared that no one can possibly calculate how many of the petty evasions are due to the belief that clever ness rather than fairness is a pro per criterion of the taxpayer Tax ethics he said generally to day are where business ethics and trade practices were in the 90s 2 In the highly competitive situation existing among experl tax attorneys methods spread and tax evasion and avoid inee increase without realization of the extent of revenue impair ment until the end of thetaxable year 3 tax Vcsted interests grow up in avoidance devices in the course of time so that x x x they receive a semirespectable stand ing and become difficult to change This factor makes quick action advisable to decapitate new schemes before they achieve the force and respectability of law Persecution of Rich 4 When tax avoidance methods become an accepted part of the tax law any attempt to change them is Vheralded as a persecu tion of the rich Morgenthau contended that it would be for the benefit of the rich to plug loop holes in the revenue act since more revenue is raised without the necessity for increasing rates 5 The tax devices cost the gov ernment huge sums which con gress never actually meant to give away and they create continual and expensive litigation He pointed out that 2800 field tax investigators for the govern ment are pitted against a bar of 45000 registered attorneys and tax accountants Former U S Lawyers Among the most resourceful brains the legal world Mor genthau said were men who re ceived their early training from the government and who use the skill they acquired In that service against the younger men who take their places Thus he added the government becomes a training school for many of its legal opponents He stressed that the tax lawyers fees exceed by thousands o per cent the pay ot government tax law yers flooded and her number one hold leaking Pumps were holding back the water as the steamer put into Gibraltar There were no casualties aboard The Madda was bound for Clyde Scotland from Port Su dan The news came just afler Italy and Germany had returned to the European nonintervention patrol of Spain under a safety guarantee plan for their warships in the patrol They withdrew from the hands off Spain fleet because Spanish government planes bombed their men o1 war Ger many also sent her warships to bombard governmentheld Al meria in reprisal CHILDREN CRYING FOR SOMETHING TO EAT HENDAYB FrancoSpanish reported Bilbao had captured three govern ment shiploads of 3000 refugees fleeing the besieged Basque capi tal many of them children cry ing for something to eat The insurgent besiegers with their armies reported to have ef fected the crossing of the river Nervion at two places in their drive to bottle up Bilbao said the three ships were taken when they attempted lo slip out of the mouth of the Nervion into Ihe Bay of Biscay In Pitiful Condition The refugees mostly women and children were described as being in a pitiful condition Five ships the insurgents said attempted to run the blockade but were unable lo leave the estuary because of the close cordon Gen eralissimo Francisco Franco has drawn about the long beleaguered city Two of the vessels gave up the attempt to reach a havon at San tander to the west and turned back but the insurgent warships were said to have captured the other three and taken them to Pasajes Many of Them Sick They wore gaunt and many of them sick the insurgents said of the refugees The women were in rags and their children cried for something to eat Their great agony was shown by the lines in their faces Many of those captured the in surgents said were former in habitants of San Sebastian who had lied that resort city in Sep tember just before it fell to THREAT OF SIT DOWN iN STEEL HENDAYE French Spanish Frontier nationalist newspaper La Voz de Espagna published at San Sebastian re ported Thursday lhal Jose An tonio de Aguirre hart resigned and would be replaced by Juan Larranaga a communist as pres ident of the Basque semiauton omous state with Us capital at Bilbao ROUTINE SEARCH MADE BY GMEN Flurry of Excitement Due to Hot Lead Report in Kidnaping STONY BROOK N Y Gmen settled down Thursday into ar routine search r for Alice McDpneir Parr sons after a flurry of excitement caused by reports that a hot lead had been uncovered The 38 society matron who disappeared eight days ago from her Long Meadow farm es tate apparently was being held by a kidnaper who had demanded S25OOU ransom but some federal agents believed she had been murdered There was an air of expectancy at the farm where William H Parsons nervous and irritable awaited anxiously some word from his wife or from her kid naper To newspapermen who asked about latest developments Ihe distraught husband replied Something to Happen Get going run along Get off my property Im playing the game why cant you People rid ing by my house and gaping Its driving me crazy The way you rush out here and gang up it looks as though something was going to happen Then as an afterthought he said Why didnt it happen two days Secretary Perkins Chooses Trio to Seek to End Long Deadlock CLEVELAND Ohio threat of a sit down strike in the great steel mills of the Mahoning Valley in Ohio developed Thurs day as Secretary of Labor Frances Perkins announced the appoint ment of a three man board to mediate the long fought strike deadlock The federal board will conduct its fact finding investigation in Cleveland The white house moved to end the bitter battle of clash between John L Lewis C I O and four independent steel companies who have flatly re fused to sign labor following an urgent telegraphic appeal to President Roosevelt by Gov Martin L Davey of Ohio and a similar appeal by Mayor Daniel J Shields of Johnstown Pa Back o Work Coupled with the move of di rect federal intervention came the announcement by John Owens Ohio strike chief of the C I O that a projected backtowork movement in Mahoning Valley steel plants would inevitably re sult in sil down strikes if the plants reopen before the union ob tains signed contracts The sit down strategy as out lined by Owens would be for the strikers to return to their along with those genuinely anxi ous to resume once in side to hold the fort in idleness Bloodshed entered the far flung battle of steel again ago He walked plaining away without ex Ohio where a picket Stephen Mann 19 i during the steel shot irf arm first shipment ot the Canton Republic since the strike was Francos northern same northern army that Thursday drove them out of Bilbao FIGHT FOR LAST TWO HILLS WEST OF BILBAO WITH INSURGENTS AT THE EDGE OF BILBAO ands of insurgent fighting men began Thursday to ascend the last two hills at the western edge of Bilbao aiming at both final en circlement of Basque capital and a new offensive on Santan der to the west They were closing the last gaps in their plan of encirclement so they can walk into trembling Bil bao without even fighting for an actual entrance The International airfield at the edge of Bilbao was occupied Three Men Held for Attack on Girl 12 YORK UR Police headquarters said Thursday that three men attacked a 12 year old girl and then attempted to push her into a furnace at the Frank lin theater on Prospect avenue the Bronx The girl whose name was with held was rescued and taken to the Lincoln hospital for treatment The three men were taken from the theater to the Morrisania po lice station for questioning Details of Ihe alleged attack and rescue were not immediately dis I closed A report that local police were digging in what looked like a new grave in the woods behind ilie Parsons estate brought a string of cars bearing federal agents and state police to the home Wednes day night But there was no dig ging and Lindsay Henry assistant district attorney of Suffolk coun ty announced that there would be none Odor of Body Some of the searchers directed their attention to a spot about 2000 yards from the house where an odor indicating the presence of a body was detected The odor was discovered Wed nesday night after dark but investigation was deferred until Thursday Lieut Stacey Wilson of the Brookhaven police said Ihe odor was unmistakably that of a body but added that the body might be that of ar animal Published reports of contacts having been made with kidnapers remained unverified Federal men traced the 25000 ransom note paper to a five and ten cent store in nearby Patchogue but ques tioning of ti clerk produced noth ing Shown photographs of Mrs Parsons Mrs Anna Kvipryanova and her 11 year old son Roy who live with the Parsons family salesgirl Mildred Mailer snid she did not recall ever having seen any of them Lose Lives Trying to Rescue Playmate OGALLALA Nebr brothers Tom and Bob Smith 10 and 11 respectively lost their lives while trying to save a playmate from drowning in a sandpit here late Wednesday afternoon Merle Sisson 6 submerged it deep waler and Ihe brothers I plunged in to rescue him from steel plant called Shot Iiy Officer The wounded man said a rail road policeman shot him without provocation as he was watching the movement of 14 carloads into the plant and 47 carloads outward bound Two men were beaten in a clash at the Franklin plant of Bethle hems Cambria works in Johns town Neither was injured seri ously Miss Perkins named Charles P Taft Lloyd K Garrison and As sistant Sccrclary of Labor Ed ward F McGrady as a federal steel mediation board authorized to investigate conduct hearings make findings of fact and act as voluntary arbitrator if both sides in the controversy so request Miss Perkins said the board would set up headquarters at Cleveland immediately McGrady lo Return She said McGrady who is re turning from Europe would sr rive in the United States Satur day night The secretary said she had been in communication wilii Tafl and Garrison and thai they would start work at nncr She said Presient Roosevelt had given his approval lo her execu ive order creating the board 1 discussed the matter with President Roosevelt Monday nnd at that time he agreed if no set tlement was reached before ws came to this tt should be done the secretary said Emergency Has Arisen The secretarys administrative order declared an emergency has arisen as a result of the labor dis pute in the steel industry which tends lo obstruct and interrupt the free flow of materials semi finished and finished steed prod ucts in interstate commerce It is desirable the order said lo provide an additional means ot accomplishing a reasonable so lution to this controversy The secretary said in my judg ment Ihe interests ot industrial pence require that the board be created She said this action had been delayed because the administra tion had hoped that conferences called by Governor Davey might produce an agreement which would lead to settlement of the strike Confers With President Secretary Perkins was called immediately to confer with the president John L Lewis chair man of the Committee for Indus trial Organization cancelled a speaking engagement at Chicago to remain in Ihe city The Steel Workers Organizing Committee which called strikes in four com panies is affiliated with C I O As executive action appeared near Philip Murray Steel Workers leader charged before a senate committee that the four steel companies had entered an unholy alliance lo floul all laws in their ;