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Mason City Globe-Gazette (Newspaper) - June 26, 1939, Mason City, Iowa NORTH IOWAS DAILY PAPER EDITED FOR THE HOME HOME EDITION THE NEWSPAPER THAT MAKES ALL NORTH IOWANS NEIGHBORS MASON CITY THE BRIGHT SPOT m VOL XLV FIVE CENTS A COPY JASED WIRES MASON CITY IOWA MONDAY JUNE 2619B9 TtaS PAPER CONSISTS OP TWO SECTIONS SECTION ONE NO 221 Sty NEWS BEHINI WIPE OUT F R DOLLAR CONTROL of public roads plainly the toll superhighway Congress Dividing on Spending Program test of whether Mr Roosevelts invisible spending idea will be invisible is whether the projects are selfli quidating whether they will pay for t h e m se 1 v es The good old taxpayers treasury will have to foot any losses and very very visibly Congress seems quietly to be dividing up on that Paul Mallon basis is likely to aplit the program upon that proving anvil For instance it is already apparent inside that the for South American loans will not be granted The rural electrification expansion is likely to be ap proved No one knows whether the sewers waterworks and dis posal plants would really be self liquidating as the list of projects appears to be hidden in Mr Ickes pocket and as for the 000000 recommendation for toll roads listen Toll Superhighways Two months ago Mr Roosevelt sent to congress a report of his bureau stating construction idea was not feasible would not bo self liquidating Not a one of the suggested six superhighways around the coun try would pay for themselves with tolIsOnly two sections of proposed toll roads would get enough traf fic by 1960 to be on a selfsup porting basis the report said These two lay on routes between Philadelphia and New Haven If congress has the toll high way itch and had to do some thing about it Mr Roosevelt in told congress upon this re cent April 27 that it should only an experimental high way between Washington and would lose less than the others said Richmond to Washington would only produce enough tolls to pay 76 per cent of its cost Minneapolis to Chicago 57 per cent San Antonio to Dal las 53 per cent etc Delay Paying Loans There is also reason to believe the loans made already by the farm security administration an increase of in these is recommended in the new pro gram are not being paid back as well as expected Exact figures have been so carefully concealed that senators cannot find out what the percentage of losses is It is a well known inside practice of such agencies to screen the ex tent of their bad loans by renew ing most of them and provoking default on only a few Nor has all this F S A money been put into purchases of farm equipment as is generally sup posed FSA is actually lending some of its money to farmers to buy stock in cooperatives Since the program started in 1935 ex actly 763000 farmers had received loans and about 200000 had used some or all of the money to join coops which are nonprofit making of course but whose of ficials draw salaries and some times appear here as farm poli ticians About 8634 coops received new members through these loans About 5156 farmers have used these loans to join the Farmers Union Grain Terminal association of St Paul only 353 to join the West Central CoOperative Grain company in Nebraska The selfliquidating nature of the loans therefore appears to depend upon whether the coops are well run and do not some have Prize Current Example How these selfliquidating agencies sometimes liquidate the treasury instead of themselves is proved by a prize current ex ample which the treasury blushes to mention The commodity credit corporation was set up some years ago with a capital of to make loans on farm products Nothing could be more self liquidating than this It loaned money on surplus farm products at current market prices and held the products as security as safely and sanely as a bank But not quite Last year it came in and asked congress for another to replace its im paired capital It explained it had loaned mostly on cotton at high prices and the price dropped but that would not happen again Not until this year Now it is getting more from congress in the deficiency appro priation bill to repair this years impairment of capital How it could possibly impair of capital to the extent of 000000is not quite clear but it was done if 303 INCHES OF RAIN RECORDED IN MASON CITY Many Sections of State Receive Soaking in Weekend Showers North Iowa received a heavy drenching Sunday afternoon and night the rainfall measuring 303 inches in Mason City Showers soaked many parts of the state over the weekend the weather bureau at Des Moines reported but their distribution in other sec tions was quite irregular Reports of rainfall in North losva included Charles City 246 inches Forest City 121 Iowa Falls 198 and Britt 97 Downpour Is Steady The rain started at 3 oclock Sunday afternoon in Mason City and continued almost steadily un til oclock Monday morning sometimes coming down in heavy sheets Burlington reported a down pour of nearly three and a half inches the bureau said but Keo kuk only 40 miles south reported no precipitation The Des Moines city weather station said gauge showed 28 of an inch precipitation whereas the airport weather station re ported only 09 of an Inch Warmer Weather Forecast Other rainfall amounts included Clarinda 131 inches Van Me ter 108 Sac City 131 Tinley Louisiana Governor Visited by Successor BRITISH BOATS Chamberlain CANT STOP IN SWATOW PORT 127 Temperatures ranged from a high of 88 degrees Sunday at Es ther ville to a low of 60 degrees Sunday night at Iowa Falls The forecast called for local thunder showers Monday after noon or Mondaynight in western Iowa and showers Tuesday in the eastern part of the state with warmer weather1 Tuesday Louisianas retiring governor Richard Leche is shown in sick bed in the executive mansion at Baton Rouse La He is visited by his successor Lieut Gov EarlLons brother of the late Senator Huey Lonsr and Mayor Robert Maestri of New Orleans Lcclies retirement came on eve of a threat ened Investigation of the Indignities to English Denied In Principle by Japanese Leader TOKIO Japanese news agency reported in a dis patch from Swatow that Japanese navy officials forcibly prevented two British steamers from unload ing passengers and freight at the south China port Monday The news agency said the ves sels upon entering the port re ceived this notification from the supreme commander of Japans south China fleet Swatow having become a cen ter of fresh military operations Japanese forces are not in a po sition to permit vessels to embark and disembark passengers or load or unload freight with the excep DEMANDS GUT IN US COSTS Martin in Favor of 10 Per Cent Reduction in Appropriations WASHINGTON repub lican demand for a cut in federal expenses was re ceived in congress Monday while administration leaders were trying to rush through new relief and farm funds before the fiscal year ends Friday night Representative Martin R Mass the house minority leader completed a bill providing for a 10 per cent reduction in all properly susceptible appropri ations He excluded such items as relief and distress social se curity war veterans benefits and interest on the public debt Estimating that congress would authorize expenditure of 000000 this year Martin said in a statement Despite much talk of economy there has been no action to that end because the administration and its spokesmen in congress have refused to cooperate with the earnest efforts of republicans and a small group of patriotic democrats in the house Democratic chieftains gave little immediate attention to this pro posal devoting all their energies to the tangled legislative situation which they fear may prevent en actment of pressing appropriation measures before the June 30 dead WEARY POSSE HUNTS OLSON Authorities Believe Fugitive Still Is in Hiding in Bottoms HAYWARD Wis Weary possemen assured by two week end incidents that August Buelo 30 alias Ray Olson still was hid ing in the Chippewa river bot toms settled down Monday to the Job of waiting out the fugitive slayer of two deputies Guards at all bridges and roads were doubled after possemen fired at the quicktriggered des perado Saturday The suspect es caped by leaping from a bridge into the Chippewa river Discovery of a deer carcass Sun day hanging from a tree two miles from the fugitives woodland cabin strengthened belief lie still was hiding in the tangled timberlands Sheriff George Seehuetter said the deer had been killed about 24 hours earlier Buelo has been sought since he ouisiana U President Is Hunted by State Police killed Carl Johnson and Fred Scott deputized Hayward tavern keepers who sought to arrest him for thievery June 17 TRAIN KILtS YOUTH KANSAS CITY Mo 17 year old Fort Madison Iowa youth Howard Cunningham was killed by a train in the railroac yards here Sunday A senate appropriations sub committee hoped to complete re vision of the houseapproved Sl 735000000 relief bill by nightfall after changing several features opposed by the administration Dixie Clipper Will Inaugurate Regular Service Wednesday NEW YORK Dixie Clipper will inaugurate regular commercial transAtlantic passen ger service Wednesday flying the southern route via the Azores With survey flights of the Pan American Clippers a success offi cials Pan American Airways said Monday everything was in readiness for Wednesdays take off The 41 ton flying boat Atlantic Clipper returned Sunday from Marseilles completing one of five rnundtrip mail flights by the Clip per fleet required by the civil authority aeronautics authority before passenger service could be gin She will go into regular trans Atlantic service The Weather FORECAST IOWA Partly cloudy local thundcrshowers Monday after noon or Monday night in west portion and Mondaynight and Tuesday in cast portion cooler in west and northcentral nor tions Monday night warmer Tuesday afternoon MINNESOTA Partly cloudy local thundershowers in west and central portions Monday afternoon or Monday night and in extreme east portion Monday night and Tuesday somewhat cooler in west and central por tions Monday night wanner Tuesday afternoon IN MASON CITY GlobeGazette weather statis tics Maximum Sunday 84 Minimum Sunday night 63 At S a m Monday Z Rain 303 inches The heavy downpour whic started Sunday afternoon contin ued almost steadily during th night reaching the large total o 303 inches YEAR AGO Maximum Minimum 5 The figures for Sunday Maximum Saturday 8 Minimum in night 60 At 8 a m Sunday YEAR AGO Maximum 84 Minimum 81 Rain 161 Resignation of Leche Postponed Dr Smith Disappearance Mystery BATON ROUGE La ce searched in vain Monday for 3r James Smith president of ouisiana State university whose ensational disappearance follow nJEalleged irregulari ties halted temporarily atleast levation of Lieut Gov Earl K Jong to the governors chair Gov Richard W Leche post oning his scheduled resignation londay ordered Dr Smith rought immediately before a spe ial grand jury for investigation f irregularities Leche said might otal several hundred thousand dollars Leche announced Smiths resig lation Sunday night Lonff Conferences Held The states leading politicians vere unavailable for comment Monday on the university situa ion following conferences that asted nearly all night at the gov Tnors from which much of Lechs belongings and furniture already had been moved in an icipation of his retirement Smith who for nine years leaded the university has not been reported seen since making a speech in New Orleans late last week The time of his resigna ion was not fixed by Leche who ailed to clear up whether the ir regularities were discovered be fore or after he quit Officers on Lookout Leche and Long later an nounced the governors resigna tion was being withheld presum ably pending clarification of the university situation although Leche declined to say how long he would stay in office State police with orders to ar rest Dr Smith on sight were sta tioned at railroad stations high ways and airports Other state police took over the university of fices of Dr Smith Edgar N Jack son business manager and C Gordon Johnson auditor of L S U Troopers were placed around Dr Smiths residence on the uni versity campus Governor Leches statements said a special grand jury investi gation of the alleged irregularities would begin immediately and that he had called a meeting of the board of administrators of the university to consider the matter owan Is Declared Outstanding Pilot in Chicago Air Show CHICAGO Fort Dodge Iowa flyer Ellis Eno was named outstanding pilot Chi cagos secondannual amateurair ShOW Eno took first prizes in the two main race planes ot 50 to 75 won the spot landing contest A crowd of 20000 witnessed the show which was limited to air flivvers of 75 horsepower or less piloted by men and women who make flying a hobby and not a business LOOK INSIDE FOR Man Victim of 2 Car Crashes Dies READING Mass Riley 35 of Lynn is victim of two automobile acci dents Riley was struck and crit ically injured by an automobile as he crossed a highway on Norlh Reading Another motorist startec to take him to a hospital bu Biley was killed when the cai skidded and collided with a third automobile tion of mail and provisions for foreign residents After several hours Domei said he two steamers departed DENY INDIGNITIES TO BRITISH IN PRINCIPLE TIENTSIN IP A Japanese spokesman declared Monday Japan would not investigate re ports that a British couple had been forced by Japanese to disrobe in Tientsin because in principle such a case couid not happen British Consul Major G A Her bert had charged that a British subject and his wife Mr and Mrs D A Finlay were undressed and searched before being allowed to cross the Japanese barrier sur rounding the blockaded British concession here Kept Only Girdle Mrs Finjay was said to have to r keepon only one a Chinese policewoman examined her in full view a Japanese sentry Asked if he could deny the re port that Mr and Mrs Finlay had been compelled to strip the spokesman answered In prin ciple yes With the British community shocked by the reported inci dent the Japanese apparently were beginning to be concerned by accounts of their activities published abroad The army spokesman disclosed that Japanese ConsulGeneral Shigenori Tashiro had protested to the British consulgeneral E G Jamieson against the handling of news by British newspapers and Hopeful for Settlement LONDON Minister Chamberlain told the house of commons Monday lie had some reason to hope that discussions now going on in Tokio would lead to a settlement of the Fav Eastern crisis For that reason lie said he did not want to make any statement which might prejudice the pros pects of a satisfactory issue of the conversations with the Japanese government Indignation Runs High Chamberlain did say however that Britain was insisting that in dignities to British nationals in China must cease and that the British ambassador to Japan Sir Robert Leslie Craigie had made this clear to the Japanese govern ment Chamberlain spoke in commons as the British publics indignation ran high over the case of a British subject and his wife who accord ing to British charges were forced by Japanese sentries to undress for search at the entrance to the blockaded foreign area ot Tient sin north China port In Tientsin a Japanese spokes man said Japan would not inves tigate this incident because in principle such a case could riot happen In Tokio the British ambassador lodged a new protest with the Japanese foreign Quizzed by Eden Former Foreign Secretary An thony Eden asked whether Cham SENATORS SET SILVERPRICEAT 774 AN OUNCE Treasury Now Paying Administration Fights Amendment WASHINGTON sen ale approved Monday a price of 774 cents an ounce for domestic allymined silver after voting to berlains expression of hope of a settlement arose from contacts with Tokio alone and whether there was any improvement in the local situation at Tientsin Chamberlain replied that his hopes came from Sir Roberts conversations with Japanese for eign Minister Haciro Arita He the Jap ajiesSTgoVT ernment would be able to restrain its representatives in China IS CONSIDERED Reorganization to Get Railroad From Receivership Offered MINNEAPOLIS reor ganization plan to get the Minne news DV eriusn newsnanprs inn and st Louis railroad out tfcl h extod aggerating the importance of small incidents distorting facts and in some cases fabricating socalled acts of indignity against British subjects The situation remained un changed as the blockade entered its thirteenth day Begun over a local issue the refusal of British authorities to yield four Chinese accused by Japan of killing a lo cal official it has grown into a test of Britains policy in China since 1923 longer than any other class 1 railroad carrier was heard Monday by the Interstate Com merce Commission through an ex aminer C E Boles The hearing brought two fac tions face to bondholders reorganization committee which with the support Jesse Jones RFC chairman backs the plan and mother group which opposes it the Railway Brotherhoods civic interests here and certain govern KOBERT TOWNSEND Designated Crown Prince of Movement PAGE 2 Tactics of English EDITORIAL PAGE Giants Hottest Club in Major League Race IOWA HIGHWAY TOLL IS 217 Week With Heavy Losses Concluded in Records of State DES MOINES Violent deaths dirge sounded more often on Iowas highways during the week ended Monday than in any other sevenday period of 1939 Seventeen victims shot the 1939 lighway fatality roll up to 217 35 above the total for the corre sponding 1938 period K C Wyatt 59 of near Derby Iowa was the 217lh victim He was killed Sunday when the car lie was driving rolled over an em bankment at the south edge of Chariton Friday and Saturday was a black crepe period for the state Seventeen persons died violent deaths during the 48 hour period PAGE 9 Baptist Assembly at Iowa Falls July 1728 PAGE 8 Arrest Blind Man for Driving Car PEORIA 111 police had one for the books the apprehension of a blind man for driving an automobile Policemen Vern Roberson and Leo Mauschbaugh vouched for this story Harold Swords 26 a blind man receiving a state blind pension who lives in east Pcoria startled neighbors when they saw him driving a car near hi home Roberson and Mauschbaugh re ported they found Swords driving an ancient jallopy down a quar termile stretch of little used grave road I feel my way along he said I like to run down to the brick yards lo chin with the boys The astonished policemen hustled him down to the station They said he had no car license and of course no drivers license He was released after he prom ised to drive no more Twelve were killed bile accidents in automo communities and state ment bodies The plan would split the road into tuo companies The major j concern would own trackage be tween Minneapolis and Winthrop Minn Hopkins and Pcoria III and Albert Lea Minn and Des Moines Iowa The second com pany to be owned by the first would get the trackage west of Winthrop to Conde S Dak thence westward to Alaska S Dak and northward lo Aberdeen and Leola S Dak Capitalization would be scaled down from 60 to 10 million dol lars and only first mortgage bonds would be interestbearing These would go to the RFC which pro poses to loan one section of the system io pay off pre ferred creditors and rehabilitate the property The unions oppose the plan on the theory that many miles ot track would be abandoned with a consequent loss of employment Minneapolis civic interests dont want it because shops here would be moved to Marshalltown Iowa Some western communities fear it will mean the end of railroad service for them wipe out President Roosevelts authority to devalue the dollar further The treasury now is paying 6464 cents an ounce for domesfic allymined silver under provisions of n proclamation which expires June 30 Action to cut off Mr Roose velts authority to devalue the dol lar came on an amendment to eliminate the devaluation power from pending monetary legisla tion Administration Backers Fight The silver price was voted 48 lo 30 The vote to eliminate the devaluation power was 47 to 31 The senate was considering a monetary bill already passed by the house which had approved an extension of the presidents au thority over the dollar Administration supporters waged vigorous fight against the amendment which was offered Herring Votes to End F R Devaluation WASHINGTON Herring DIowa was among the 47 senators voting to adopt an amendment to the monetary bill to end President Roosevelts au thority to devalue the dollar fur Oillette Was outof the city by Senator Adams D Colo The administration group argued that the devaluation power was neces sary to prevent damage to United Slates Irade if other countries de preciated their currency The senate rejected Monday a proposal to fix the treasurys price for domestically mined sil ver at 5116 an ounce The vote was 52 to 26 Offered by Pittman The proposal to fix the rate at SI16 an ounce was offered by Senator Pittman D Nev as an amendment to legislation continu ing the administrations emergency monetary powers for two years These powers scheduled to ex pire June 30 permit the treasury to operate the stab ilization fund and to pay a bounty price for domesticallymined sil ver Tiiey also authorize the presi dent to devalue the dollar further Western senators seeking an increase in the present silver price have been holding up the bill by lengthy speechmaking and created anxiety among administration fol lowers that the monetary powers might lapse Committee on capifol hill went ahead with other work On Railroad Legislation Two members of the interstate commerce commission testified in support of legislation lo prevent railroads to spend their money for any but railroad purposes except with ICC approval They said some financial practices in the past hid hurt the carriers Nathan Straus asking that the United States housing authority be permitted to double its 000 loan limit told the house banking committee that otherwise a substantial interruption in em ployment and construction was sure John W OLeary of the United States chamber of commerce con tended before a senate labor sub committee that the national labor board had been active in sup porting strike He said amend ments to the labor act were im perative lowan Suffocates in Soy Bean Meal Pit OMAHA Schomer 54 Council Bluffs Iowa Allied Mills grain elevator foreman suf focated Monday in a pit full of soy bean meal NAMED DRAKE DEAN DES MOINES a r r y Leigh Baker associate professor of psychology and administrative associate at Oklahoma Agricultur al and Mechanical college Still water has been named dean of the Drake university college of education Kills Wife in Quarrel Over Plans on House OMAHA Chadek Omaha packing house worker Monday was held under blanket charges of investigation after po lice said he fatally shot his wife Emma 47 in a quarrel Sunday over plans for a house they had purchased Detective Capt Harry Green said Chadek told officers his wife chased him with a butcher knife once tearing his shirt and he grabbed a 12gauge shotgun and fired at close range the charge striking her m right breast the 150 Jews Attempt Suicide Left Behind by Refugee Vessel BUCHAREST Rumania One hundred and fifty Jews at tempted mass suicide by leaping into the sea at Constanza when a refugee ship left them behind a dispatch said Monday The Jews tried to force their way through n police cordon Twentysix of them succeeded in doing so and jumped into the sea but all were rescued The small Panama steanship Rim was sailing with 436 Jev The other 150 were unauic to get aboard U was believed the Rim vas sailing for Palestine though only part of its complement of passen gers had passport visas ;