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Mason City Globe-Gazette (Newspaper) - June 23, 1937, Mason City, Iowa NORTH IOWAS DAILY PAPER EDITED FOR THE HOME THE NEWSPAPER THAT MAKES ALL NORTH IOWANS NEIGHBORS HOME EDITION VOL XLIII FIVE CENTS A COPY ASSOCIATED PRESS AND UNITED PRESS FULL LEASED WIRES CITY IOWA WEDNESDAY JUNE 23 1937 THB PAPER CONSISTS OF TWO SECTIONS SECTION ONE NO221 RAL SYMPATHY STRI Iowa Use Tax on Mail Order Purchases Mandatory FIRMS HAVE TO COLLECT LEVY AND PAY STATE Registration Applications to Be Mailed to Corporations By GEORGE S BOLLS DES MOINES Chairman Louis E Wednesday said the use tax law makes it mandatory for the state to collect the 2 per cent levy on the unknown millions of dollars which lowans pour into mail or der purchases each year Enforcement of the law will place Iowa merchants on an equal tax footing with out of state mail order companies he said Since 1934 all retail sales with in Iowa have been subjected to the state 2 per cent sales tax Out of state dealings with Iowa con sumers have gone sales tax free because such transactions wnre classed as interstate commeice and therefore exempt Permit Holders The last legislature however passed the use tax law which fixes a 2 per cent levy on all in terstate purchases of goods for use in Roddewig said the state board in the next few days will mailing applications for tax registration to more than foreign corporations li censed to do business in Iowa Ap plication blanks also will go o many of the sales tax per mit holders he added The saLs tax division will comb its fifes to determine the extent to which salestax permit holders are af fected by the use tax law he added The board has taken no action towards collecting the use tax or mail order purchases to date be cause the first quarters payments are not yet due he said The state chairman interprets the act to mean that the board shall col lect the tax from the out of state Tine mountain la miles east of Looking Down on Massed Bands at North Iowa Festival Finale Massed Band Concert Is Final Event of Program HARLAN DEPUTY SHOT TO DEATH Testified Before Senators on Labor Conditions in Kentucky HARLAN Ir vn 33 Harlan county deputy sheriff who testified before the senate civil liberties committee in Washington last April on labor conditions in Harlan was shot to Jeath in his automobile on lonely mail order companies Act Has He referred to sections 8 and 21 of the act as evidence that the measure has real teeth in Section G in part says Every retailer maintaining a place of business in this state shall at the time of making sales whether within or without the state collect the tax imposed by this act from the Roddewig said a large share of the mail order business goin out of the state is handled by com panies with retail outlets or sales staffs in Iowa Such companies are within the meaning of the act he added The state chairman referred to section 21 as possessing enforce ment potentialities That section in part says May Revoke Permit Whenever any retailer main taining a place of business in this state or authorized to collect the tax herein fails to comply with any of the provisions of thi1 act the board may revoke the per mit or if such retailer is a corporation authorized to do busi ness in this state the board nay certify t the secretary of state a copy of an order that such retailer has failed to comply with certain specified provisions orders rules and regulations the secre tary of state upon receipt of such certified copy shall revoke ths permit authorizing said corpora tion to do business in this Roddewig said this section means corporations failing to en force the act are in danger of los ing licenses to do business in Iowa The secretary of state is sues the permits First quarter of the use tax ends July 1 Retailers in and out of Iowa must file use tax reports on or before July 20 Roddewig said The law was passed primarily to protect the merchants of border cities against lowans making sub stantial purchases in other and thus escaping the 2 per aent sales tax On New Cars County treasurers collect tha use tax on new automobiles be fore they issue license plates Besides mail order houses the act also applies to such direct sales agencies as hosiery per fume corset brush companies others of the same type Rodde wig said The individual purchaser is liable for payment of the tax il it is not handled by the retailer tne chairman added Consumers use tax returns also have been prepared and will ce made available to the public in here early Wednesday Irvin was shot in the back Irvin and two other deputies George Lee and Allen Bowling had resigned Tuesday afternoon after County Judge Morris Saylor dismissed Deputy Lee Fleenor Judge said the time had arrived to pudge the ranks of officers who get into The three others resigned be cause they didnt think Fleenor was given a square Fleenor was dismissed by Judge Saylor after the filing of a war rant by Eidon Hunley seeking to place him under a Hunley Fleenor who was and fined peace bond arrested by for a breach oi peace charged Fleenor had threatened him Judge Saylor said Fleenors dis missal was long The deputies who resigned after I fired Fleenor just acted before the ax fell on the judge said OUT OF HOSPITAL DES MOINES Myers the 20 year old girl who dropped 150 feet from a balloon when her parachutp failed to open has been dismissed from the hospital The Weather FORECAST IOWA Partly cloudy Wed nesday night and Thursday continued warm with slightly warmer in central and east to night and along the Mississippi river Thursday MINNESOTA Partly cloudy Wednesday night and Thursday possibly scattered thunder storms slightly warmer in east Wednesday nifrht not so warm Thursday in extreme northwest IN MASON CITY GlobeGazette weather figures for 24 hour period ending at 8 a m Wednesday Maximum Tuesday 89 Minimum in Night 58 At 8 A Wednesday 76 The mercury climbed to 97 de grees shortly before 3 oclock Wed nesday afternoon setting the high mark for 1937 chambers oi commerce banks and county offices the sales tax di vision which is administering the use tax reported Wednesday The division is a unit under the state tax board Retailers return forms not to be confused with applica tions for use tax permits will be to merchants upon request sales tax officials said Second Annual North Iowa Band Festival Comes to Close Bringing the second annual North Iowa band festival to a dramatic close players Tuesday night staged a colorful exhibition at Roosevelt stadium A massed band concert of un usual success with such a volume of music that it fairly lifted the audience of some out of its seats was the concluding feature of the evenings entertainment From a visual standpoint alone the program was of a spectacular nature that brought forth many enthusiastic comments from the audience After the grand entry of bands and floats the bands were arranged in a semicircle on the field Under the strong sta dium lights and with the bright green turf as a background the uniforms of many brilliant colors provided a scene rich in beauty Eldora Band Featured A feature which received much applause was the marching and playing exhibition put on by the Iowa Training school band of Eldora under the direction of I A Lowell Always with perfect step and straight lines the play ers put on intricate maneuvers and variations of formations At times moving in small circles the band would suddenly right itself and march in regular formation The evenings program opened with a concert by the Hampton high school band under the di rectiofl of F O Griffen Each of the units in the grand entry of visiting bands drum corps and floats received much applause The bands and drum corps played spirited marches as they paraded before the crowd Massed Bands Heard A concert by the municipal band under the direction of C M Weaver included Royal Decree march by English of Des tiny overture by Verdi Fire fly selection by Friml Spanish Dance No 3 by Moskowski Jolly Fellows waltz of Volstedt and Cyrus the Great march by King Then the Iowa Training school band gave its exhibition and the massed bands presented their grand finale Carleton L Stew art of Mason City directed the huge aggregation of players and was successful in keeping the mu sicians well together Military Escort by Fillmore Officer of the Day by Hall and El Capitan by Sousa were the massed num bers played Is Appreciative Mr Stewart stood on a table on a high platform and had all of the drum players near the front Using of his ba ton he was able to lead the large group which had never rehearsed together with a uniformity of in terpretation Appreciation of the audience of the fine program staged by the musicians was indicated by the fact that practically all of those present observed the request of the master of ceremonies W Earl Hall to remain seated until the visiting musicians had left the field Many of the features were Broadcast by remote control over SGLO Round by round fight re turns were given to the crowd The spectacular quality of the North Iowa band festival is indi cated in this photograph showing players at the massed band concert Tuesday night The players were seated in a crescent around the platform on which the municipal band is shown and provided a colorful massed group Lock photo Kayenay engraving PARKERSFATE GIVEN TO JURY Judge Asks That Neither of Them Be Recommenced for Execution NEWARK N iate of the Ellis H Parkers senior and junior charged with conspiracy in the kidnaping of Paul H Wendel was placed in the hands of a juryin federal court Wednesday nine weeks after their trial began The jury of eight men and four women left the courtroom to con sider a verdict at a m CST The jury was given the case after Federal Judge William Clark took two hours and 10 minutes to charge the jury He asked that neither Parker the 65 year old chief of Bur lington county detectives nor his 26 year old son be recommended for execution in the event they found them guilty of the charge of conspiracy to violate the Lind bergh kidnaping law LOOK INSIDE FOR DELIGHT JEWETT Bar Religious Element From Morality Trial PAGE 2 Kensett Iowa Falls to Hold Celebrations PAGE 10 Louis Second Negro to Win Heavyweight Title PAGE 11 Better Prices on Eggs and Poultry Expected PAGE 14 DEMILLE NAMED IN TAX INQUIRY Corporation Set Up by Film Director to Reduce Income Tax WASHINGTON sioner Guy T Helvering of the in ternal revenue bureau told a con gressional tax inquiry committee Wednesday that the government believed Cecil DeMille movie producer had made a purpose ful attempt to evade surtaxes on his income through creation of a personal holding company Helvering testified that De Mille some time ago formed a corporation which he complete ly dominated consisting of him self members of his family and his Earning he added was an in corporation of what may be called the earning personality of Mr DeMille In other words DeMilles earning power was almost the sole corporate asset DeMille the individual then went to work for De Mille the corporation at a salary far less than he knew he could command as a director Sells His Services The corporation then sold De Milles services to producing com panies The difference between Cecil Sevilles salry from his own corporation snd his actual earnings as a picture di rector was put into the corpora To the governments claim that the accumulation of this surplus was unreasonable and for pur poses of evading surtaxes Helver ing said DeMille replied that his corporation was saving up money to go into the production of mo tion pictures at a later date Italy and Germany Quit Nonintervention Patrol SURRENDERS IN SLAYING Reply to Refusal of British and French to Threaten Spains Loyalists STORY ON PAGE Z and Italy Wednesday quit the inter national control scheme designed to stop the movement of foreign arms and fighters to the Spanish civil war They quit in angry reply to the refusal of Great Britain and France to join them in parading men of war before Valencia to warn the Spanish government Hands off our warships Their concerted action left the nonintervention control scheme at a complete standstill with no neutral patrol ships on the east ern coast of Spain Italy and Germany participat ing withBritain and France in the neutrality naval cordon off Spain under the direction of the non intervention committee hereto fore have patrolled the eastern coast with their warships Rumors of Blockade In Berlin there were uncon firmed rumors of a possible Italo German blockade of this Spanish government coast line German has 12 including four submarines in Spanish east ward into the Mediterranean bound for an undisclosed place Foreign Secretary Anthony Eden of Great Britain who once before succeeded in wooing Ger many and Italy back into the nonintervention block of 27 states was informed of Germanys Mrs Freed Sought Nearly mole Year in Death of Audrey Vallette CHICAGO Carmella Ruth Freed sought for nearly a year in connection with the slay ing of Audrey Vallette north side blond par ty girl surren dered Wednes day in the office of Capt Daniel I C ACTS TO HALT INDUSTRY IWARREIUHIO Order of Court Restricting Steel Plant Picketing Is Protested WARREN Ohio L O leaders Wednesday announced lo cal unions were calling strikes in a movement which will result in a general strike in Trumbull county John McKeowan a C I O or ganizer said the county which has population would be par alyzed by The move is in protest against a court injunction restraining picketing at the plant of the Re public Steel company in Warren strikebound since May 26 The C I O announcement said action of the locals was spontane ous Unionists in City here are unionists in Warren The C I O claims of this number others are affiliated with the American Federation of Labor It was pointed out that members of each union are bound by the action of the local The move also is a sympathy protest against the evacuation Wednesday of Republic workers who have been housed in the plant since the steel strike began They were hurried out in automo biles while fully armed police end Ohio national guardsmen held back murmuring crowds Workers Out By midafternoon the union claimed workers were out including approximately He public workers already on strike Gus Hall head of the Republic Steel strikers committee made the statement that he expected workers would be idle Thursday McKeowan declared there was a possibility of union men marching to He said the men would come from other Such a march he asserted had beea projected and called off when Governor Davey ordered out the guardsmen said McKeowan such a move will depend upon MRS FREED Gilbert of the states attor neys police Atty Harold Levy brought Mrs freed to the prosecutors office Her appeal Eight Convicts Take Clothing and Auto TRINITY convicts who escaped from East ham state prison farm with 11 others surprised three men at a dipping vat near here Wednesday stripped them of their clothing Deutschland week withdrawal from the control scheme by Reichs Ambassador I her apartment Joachim von Ribbentrop A few minutes earlier Premier Benito Mussolini had ordered It aly out of the control scheme be cause there was no possibility of The withdrawal it was made plain was a direct result of the breakdown of four power nego tiations on Germanys demand for 3 naval demonstration off Valen cia that would impress the Spanish government Blamed for Attacks Germany and Italy blame this Valencia government for attacks on the Italian naval vessel Bar letta the German battleship ance came nearly a year from the day July 2 1936 when the body of pretty Miss Vallette was found fatally shot in her near North Side hotel Witnesses identified Mrs Freed as a woman they saw hurriedly leaving the hotel just before the blond author of sensational diar ies was found dead Mrs Freeds husband Edward manager of a cabaret was one of many men mentioned in Audreys Diaries which recounted days and nights of drinking and dancing parties at bright light spots and stole an automobile toward Groveton and drove Attempt to Identify Man Found Stabbed STOCKTON attempted to establish identity Wednesday of a man whose knife slashed body was found in an idle rock crushing plant a knife buried to the hilt in his chest and the word wolf crudely carved on his forehead Five U S Citizens Held in Barcelona BARCELONA Spain United States citizens were re ported held by police for ques tioning Wednesday after they al legedly entered Spain from One of them was said to be Villar J Findley The names of the others were not disclosed German cruisar Leipzig Here in London foreign office spokesmen said the Germans and Italians had withdrawn only from the land and sea nonintervention control scheme not from the di recting committee of noninter ventionitself Informed sources however felt this was a technical distinction since the lnc and sea patrol of neutral observers and warships which the committee has thrown about Spain is the foundation of its work They did however say that ItaloGerman retention of com mittee membership would permit reconsideration of their action later on A few days after the slaying police began a search for Mrs Freed Ever since she had been variouslyreported staying in vania while an inquest into the death of Miss Vallette was peri odically continued Norris Is Confined to Naval Hospital WASHINGTON George W Norris veteran Ne braska independent Wednesday was confined to naval hospital after suffering an attack of indi gestion Tuesday Hospital physi cians said the senator was get ting along fine but that a period of rest and recuperation had been advised FUGITIVE IS CAPTURED SIOUX CITY Pro chelo of Sioux City who escaped twice from the state training school at Eldora has been cap tured in Des Moines by state agents according to word re ceived here FIRST Fight Pictures The sports section of your edition of the Globe Gazette presents 1 FIRST pictures of the actual eighth round knock out that brought Joe Louis the world heavyweight boxing title 2 The COMPLETE story of Tuesday nights world heavyweight title fight in Chicago told in stories by four special writers MEDIATIONBOARD IN CONCILIATION EFFORTS CLEVELAND ff President Roosevelts federal mediation board renewed efforts Wednesday to arrange a settlement of the Great Lakes steel strike While strike paralyzed mill cit ies in Ohios Mahoning valley watched hopefully under surveil lance of national guard troopers Charles P Taft II fed eral jhairman arranged confer ences with executives of the four strike involved independent steel companies Republic Bethlehem Inland Steel and Youngstown Sheet and Tube President Roosevelt himself was keeping in close telephonic com munication with principals in the controversy he disclosed at a white house press conference Labor Board Probers Four representatives of the na tional labor relations board ent ered the picture and a fifth inves tigator was on his way from Washington Mark Lauter member of the Chicago Michigan and relations boards legal staff said the group would proceed with all haste to guard data on the charges filed June 18 by John L Lewis C L O against the steel companies The charges included alleged discrimination in the discharge of union employes coercion through the shutdown Canton Ohio plant of Republic Steel the use of armed thugs and and alleged collusion with Sher iff Ralph E Elser of Youngstown to interfere with Quiet reigned along the valley mill front where steel executives Tuesday called off a projected back to work march at the per sonal behest of President Roose velt Thin Wisps of Smoke The tall mill stacks emitted only thin wisps of smoke and the skies over the grimy mill towns were clear as the strike entered its twentyeighth day Renewed activity of the indus trial battlefront was the move ment of freight at the Republic Steel corporations plant at War ren Ohio Haltedfor the past ten days by strikers the freight cars moved in and out again Wednesday under the protection of national guard rifles and guns Workmen who have been be sieged in the plant since the strike started four weeks ago sleeping and mating in the mill also moved freely as the national guard troopers enforced acourt injunc tion restraining the activities of strike pickets The company said ;