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Mason City Globe-Gazette (Newspaper) - May 1, 1937, Mason City, Iowa NORTH IOWAS DAILY PAPER EDITED FOR THE HOME THE NEWSPAPER THAT MAKES ALL NORTH OWANS NEIGHBORS HOME EDITION VOL XLIII FIVE CENTS A COPY ASSOCIATED PRESS AND UNITED PHESS FULL LEASED WIRES MASON CITY IOWA SATURDAY MAY 11937 Diminishing Returns Taxes Can Be Boosted So High Revenue Lessens CHARLES P STEWART ASHINGTON times I wonder if the law of diminishing re turns is under stood as well as it ought to be consider rig how simple the proposition is To taxation experts its as plain as print of course But for the benefit of oth ers who may nevevhave paid much at terition to it a little consideration of the subject might be profitable let us suppose the case of an import tax on coffee for example Some iof our tariff imposts are imposed with the deliberate pur poseVof keeping foreign stuff out of the United States that it may not compete with our domestic s Produce No Coffee Coffee however is a different produce none No pro tective principle is involved For eign grown coffee is taxed upon its arrival here purely f or the sake of the money that the tax yields to the government The government needs the money and that is one way of getting it pos sibly a poor way but it to a certain point Thegovernment always wants more ahoVmpre money the coffee fax is bringing it in quite gener ously so it is boosted All right there is an increase in collections Then there are further boosts to get more still Imports Fall Off But ultimately there comes a time when coffee by reason of the tax becomes too expensive for any except the quite wellto do to continue drinking it Consequently imports of it fall off X The tax is higher but it is paid ri so much less coffee thatthe lower one did This is the operation ofthe law diminishing returns I do not know that this is par ticularly true of coffee but it is true of imports generally Tariff Too High We have reached a stage where the tariff does not yield anything like the revenue that it would if it were lower By being excessive it has counteracted itself We get less in tax collections where we expected to get more This rule holds good as to a lot of taxation il lustratively Heaven knows I hold no brief for the malefactor of great wealth Nevertheless when he gets up to a levy of about 80 per cent his inclination is to say Oh well I wont make any more money the government will lake most of it away from me any way Sit Down Strike And lie goes on a sit down slrike living on what he has got and nottrying to make any more The law of diminishing returns in operation once more Now as to big sources of rev enue Uncle Sam has reached the limit of the law of diminishing returns The more it assesses against big mnncy the less it will get It is compelled to increase its levy on us little folk Income tax I have lived in Ja pan There is a class there of jinrickshaw coolies These men are comparable to taxicab men except that they do not operate pull little phaetons and run on foot between the shafts And they are subject to income tax Diminishing Returns AS we pare down income tax exemptions we get toward that endeavoring to get away from the law of diminishing re turns Such a siluation might be fore stalled by cutting governmenlal expenditures It is not being done on capitol hill The administration advocates it but docs not tell how We ordinary folk however are up against the law of diminishing returns It will get us if we dont look out THIS PAPEJV CONSISTS OF TWO SECTIONS SECTION ONE NO 176 AGAINST MAY DAY RIOTS Agree to Aid Evacuation Witnesses in Trial of Alleged Receiver of Stolen Butter DES MOINES Agent Paul Gruber and two other Iowa bureau investigation agents went to Omaha Saturday to testily at the trial of C J Miller charged with buying butter from a gang which robbed many Iowa cream eries last year End Des Moines Strike DES MOINES strike of shop employes at the Des Moines Steel company ended when opera tors and union representatives signed an agreement which pro vides among other things a 10 per cent wage increase for 97 workers in the shop department WARSHIPS WILL GUARD OUTSIDE OF 3 MILE LIMIT Will Ignore Rebel Refusal to Permit Vessels to Leave Bilbao HENDAYE FrancoS p a n i s h Frontier captains of nine British njerchantmen ignor ing Spanish insurgent refusals to respect any foreign ships inside their Bay of Biscay blockade Sat urday agreed to evacuate as many children as possiblefrom Bilbao The captains of the nine ships which already have reached Bil bao through the insurgent sea gauntlet said they hoped to be able to remove between 4000 and 5000 children to St Jean de Luz around the bend of the Bay of Biscay in France They announced their plan af ter a conference with the British consul at Bilbao R C Stevenson Relieved Fooa Crisis ships which reached their anchorages in theNervion river to relieve the food crisis of the war swollen population last week are the Portelct Hamsterley Thur ston Marvia Sheaf Field Bac worth Blackhill Thorehall and Consett In L o n d o n authoritative sources disclosed that British mer chantmen aided by British war ships would remove Bilbaos civ ilian population whether or not in surgentGeneral Frawisco Francq consents hale been 01 dered to protect refugee ships out side the three mile limit All French ports onthe Bay of Biscay already had been in structed to receive refugees from Bilbao and were tpld to expect the first of thousands Saturday or Defies Great Britain General Franco virtually defy ing GreatBritain and France to remove noncombatants from Bil bao despite the sinking of the bat tleship Espana backbone of his Bay of Biscay fleet curtly notified the British ambassador to Spain that insurgent menofwar would not be pledged to respect foreign ships removing Bilbaos civilians The entire crew of the insur gent battleship Espana sent to the bottom by government aerial bombs Friday meanwhile was re ported saved The Basque govern ment said the insurgent cruiser Velasco and fishing boats from Santander picked up officers and men including several injured by a belowdecks explosion An authoritative account said the disastrous bomb one of sev eral that struck the Espana ex ploded aft and the crew struggled vainly for 40 minutes to keep their vessel from settling under 32X fathoms of choppy Bay of Biscay water Insurgent communiques have not mentioned the sinking of the Espana LOYAL WARSHIPS STEAM TO AID BESIEGED CITY HENDAYE FrancoS p a n i s h Frontier UP Loyalist war ships steamed to the defense of be leaguered Bilbao Saturday and bombarded rebel held ports along the Bay of Biscay The broadsides were part of a new offensive started earlier by the Basque land forces A Bilbao communique reported the capture of Garona and Cola as the loyalist defenders followed up a drive which threw back the advancing rebel army of Gen Emilio Mola nearly two miles on the bloody devastated Guernica salient APRIL SHOWERS USHER IN MAY Cloudy Unsettled Skies Not Much Temperature Change Seen DES MOINES show ers ushered May into Iowa Satur day with a promise from the weather man that they probably would continue in scattered por tions of the state over the week end The forecast was cloudy arid un settled skies with not much change in temperature It was raining in North Iowa and at Dubuque and Davenport Satur day morning and was partly cloudy over the rest of the state the weatherman said LOOK INSIDE FOR JOHN F ONEIL N Y Municipal Judge Stabbed in Back Dies PAGE 2 2 North Iowa Residents Suffer Violent Deaths PAGE 10 State Boaid May Pay i lBroWn to End Tenure PAGE 11 t Grade School Children 80 Per Cent Immunized PAGE 13 First Lady Visits With Grandchildren in Daughters Home SEATTLE Frank lin D Roosevelt visited here Sat urday with her grandchildren Anna Eleanor Dall and Curtis Roosevelt Dall while the presi dent vacationed in Guif of Mexico waters Buzzie and Sistie both whom resided for some time at the white house during the presi dents first administration had not seen their grandmother for several months The first lady arrived Thursday night Tby airplane for a two weeks stay Accompanying Mrs Roosevelt when she arrived at the airport here were her soninlaw and daughter Mr and Mrs John Boetliger who joined her in San Francisco Boettiger is publisher of the Seattle PostIntelligencer The children are Mrs Boettigcrs by a former marriage Have Read Your Newspaper 1 The senate civil liberties ciihmittee in Washington ques tioned witnesses from what Kentucky county about violence used to prevent mine union or ganization 2 What happened to Gen Douglas MacArthur former U S army chief of staff S For what was Jackson Whitlow Tennessee mountain eer waiting before ending his long fast 4 In what country is Bilbao 5 William Gilleltc who died the pasl week was famous in whal field of activity 6 What kind of fish did Pres ident Roosevelt seek as he went vacationing on the Gulf of Mexico 7 Fire ruined a theater build ing with estimated loss of S50 000 in what North Iowa town 8 The Iowa legislature ad journed after the house spent most of its final day in argu ment over what bill that was finally dropped without pas sage D A farmer who had been missing a week returned to his home near what North Iowa town dazed and unable to ex plain his absence 10 What two teams took the early leads in the major league standings ANSWERS ON PAGE 2 Orders First Real Meal for 52 Days STOOPING OAK Whitlow 45 year old religious faster called Saturday for squir rel broth arid a pot of wild salat a mountain delicacy sim ilar to turnip greens for his first real meal in 52 days Thomas Whitlow his father shot a squirfel on Cumberland mountainand the rejoicing wife of the faster lost no time in prepar ing it He was ready to eat but none could say how his weakened body would react to the food doctors have warned may prove fatal un less carefully taken Whitlow broke his fast Friday morning by drinking a half cup of what he said was grape juice The neighbors who brought it claimed it was elderberry wine The 45 year old Cumoerland mountain fur trapper said My fast is over My trial is ended I know God is with me and I am not afraid I received a sweet mes sage from the Lord He told me to abstain from water and drink a little wine for the stomachs sake I understand that wine is the fruit of the vine and not a fer mented or alcoholic beverage I absolutely did not drink any wine and will not MOVIE STRIKE GAINS SLOWLY Actors Report for Work Gable Goes to See Fun HOLLYWOOD strike that threatened to paralyze Hie huge motion picture industry and send 10000 studio workers from their jobs gathered momentum slowly Saturday Saturday ordinarily is a slack period in the industry and the ef fect of employes already called out on strike was scarcely noticeable There was a scattering of pick ets at the major companies but otherwise the situation seemed normal Production went on as usual at the studios The pickets made no attempt to halt workers not al ready encompassed in the strike call which lias affected members of four scenic artists painters draftsmen and hair dressers Report for Work Actors and actresses most of them members of the screen actors guild reported for work Among the early arrivals at MGM was Clark Gable Are you going to be a strike breaker he was asked No he replied I just came to see the fun The situation seemed so quiet that he added Well I guess ill just have to go to work There are 38 pictures in produc tion now at leading studios as fol lows MctroGoldwynMayer 5 TwentiethCenturyFox 2 Para mount 13 Universal 2 Warner Brothers 6 Columbia 3 Hal Roach 1 SelznickInternational 1 Sam Goldwyn 3 and RKO 2 56 Out of 60 Appear Absence of makeup artists and feared devel opment of the not ma terialize Early indications were that members of this union one of those on strike were not very respon sive to the call At M G M 56 of GO appeared for work Paramnunfs big name players alnne were at work Saturday no extras or minor actors requiring the services of makeup workers being scheduled to report at the studio The stars do their own makeup Extra pplice were detailed to the studios but there were no dis orders Guild Defers Action There was no indication whether he Screen Actors guild headed by Robert Montgomery and in cluding most of the leading players of the screen would take action The guild met Friday night and discussed the strike but deferred any announcement until Monday Frederic March James Cagney Boris Karlpff Marion Davies and many others are members of the guild The strike of the four unions was called as studio executives withheld decision on union de mands for a closed shop as well as union recognition The other unions in the newlyformed Fed crated Motion Picture Crafts strike sponsor voted to defer un il later Saturday any decision on joining the strike GOV KRASCHEL DEFIES SENATE NAMES SCHOLES Council Bluffs Man on Iowa Jobless Compensation Commission DES MOINES Nels G Kraschel Saturday appointed Walter Scholes of Coun cil Bluffs to serve a four year term as a member of the unem ployment com pensation corn mi s s i o n The post draws a alary of yearly Scholes who is president of the Central La bor union of Council Bluffs will represent labor on the commission He was one of three men appointed b y the governor on JMaich 1 The senate failed SCHOLES to confirm Scholes appointment and Gov ernor Kraschel reappointed him after the fortyseventh general assembly adjourned Kies and Stanley Another member is Peter JKles of Dubuque foi 14 years county auditorthet e He also is a demo ci at represents the public The thitd membei is Claude Stan ley of Coining a republican and former state senator who repre sents business Their appoint ments were confirmed by the sen ate March 1 The commission administers the unemployment compensation law passed by the special session last December and reenacted in the closing days of the fortyseventh assembly His First Choice In announcing the appointment Governor Kraschel said Mr Scholes was the first choice of organized labor and was my first choice The senate ac cording to its conversation re fused his confirmation on grounds he was a new democrat Since he was a democratic ap pointment and that was so far as I know the only complaint with him I consider that his demo cratic pedigree was of more in terest ta ine and my party than to anyone else Therefore I dont feel obli gated to recognize the senates objections justice Roberts at His 62nd Birthday WASHINGTON Owen J Roberts youngest mem ber of the U S supreme court ob serves his sixtysecond birthday Sunday still defying classification with liberal or conservative groups on the tribunal Johnson Schools Head Dies IOWA CITY N Leeper Johnson county superin tendent of schools since 1920 died after an illness of three weeks He was 67 The Weather FORECAST IOWA Mostly clniidy and unsettled Saturday nlRht and Sunday not much change In temperature MINNESOTA Mostly cloudy anil unsettled showers Saturday iijfflit and In cast portion Sun day not much change in tem perature IN MASON CITY GlobeGazette weather figures for 24 hour period ending at 8 oclock Saturday morning Maximum Friday GO Minimum in Nifflil 44 At 8 A M Saturday 52 What a welcome visitor Old Sol was on Aprils last day And on Mays opening day Saturday morning however he had to com pete with rain clouds and Ihe re sult of the contest was no better than a draw for the sun WEEKLY FORECAST CHICAGO out ook for the period of May 3 lo 9 the upper Mississippi and lower Missouri valleys Generally fair first of week with some showers latter part temperatures mostly near normal C D A President Will Speak at Banquet Here 1 1 n t Affair Will Conclude 13th Biennial Convention of Iowa Court Miss Mary C Duffy of Newark N J supreme regent of the Cath olic Daughters of America will be the speaker at the banquet Sun day evening at the Hotel Hanford which will conclude the thirteenth biennial convention of the Iowa court of the organization The banquet will celebrate the twentyfifth anniversary of the Mason City court and the centen nial of the archdiocese of Du buque His excellency the Most Rev Francis Joseph Beckman archbishop of Dubuque will also speak at the banquet as will D H Fitzpatrick Mason City attorney The toastmaster will be the Rev Edwin Donohue Shenandoah stale chaplain Archbishop Beckman will be the celebrant at the pontifical high mass at St Josephs church Sun day morning at oclock which will be the opening event of Sunday for the C D A dele gates The consecration to the Sa cred Heart planned for tile juniors has been poslponed B O Deeney chairman of the car committee for the convention has asked the 100 drivers engaged to take convention members to the mass to line up on Third street norlheast near the Hotel Hanford by oclock Sunday morning The final business session of the convention will be at oclock Sunday afternoon at the armory The election of officers will be held and the resolutions committee wil report v MISS MARY C DUFFY 8 Boys and 7 Girls to Make Chute Jump SMITHFIELD Ohio teen young parachute club mem boys and seven girls whose ages run from 14 to 25 left Saturday for Cincinnati where they will bail out enmasse from a transport plane Sunday morning in a graduation exercise Aviation authorities believed t would be the first nonexhibition mass parachute jump by civilians Report F R in for Little Rough Seas GALVESTON Texas UP President Roosevelt on a tarpon fishing vacation in the Gulf of Mexico in the vicinity of Galves ton and Arkansas Pass Texas was in for a little rough seas the U S weather bureau warned Sat urday Man 85 Leaps Out of Window in Sleep CLEVELAND five year old Carl rioje dreamed someone was chasing him and jumped through a second story window in his sleep Rain soaked ground 15 feet below spared him more than a fractured ankle GENDENHARDT DEFENSE RESTS Final Witness Says Blood on Overcoat May Have Been His Own NEW CASTLE Ky defense rested its case Saturday in he trial of Brig Gen Henry H Dcnharctt for the murder of the dark haired widow he was to have married The last defense witness through whom Denhardls law yers hoped to guarantee the ro tund soldierpolitician acquittal ot Mrs Veina Garr Taylors mur der was Dr Alexander S Wiener of Brooklyn N Y a blood ex pert He testified that blood on the generals overcoat may as well lave been Denhardts own as that of Mrs Taylor since both victim and defendant had blood of the same classification Previously witnesses had testi fied that Denhardt had exhibited a cut finger shortly after Mrs Taylors death and just before au thorities arrived to take away his overcoat for examination of the bloodstains Denhart himself attributed the stains to a hand injury suffered when he changed an automobile tire Ihe nighl ot his fiancees death He was described as a per son who bled freely from slight njurics STRIP TEASERS Commissioner Refuses to R6new Licenses of 1 4 N Y Theaters NEW YORK License Com missioner Paul Moss brought the citys burlesquesituation to a dra matic head Saturday by flatly re fusing to renew the licenses of 14 theaters where strip teasers were practising their art Strip leasers and male comics loo more than a little alarmed in he past week by the gales of pro est raging around them had turned contrite at the last minute and tried to temper their shows But the commissioner took heed of the organized complaints from atholic Protestant and Jewish leaders and turned down he applications of the theater owners for new licenses Patrick Cardinal Hayes was one those who wrote the commis sioner several days ago that the Burlesque shows of the city were disgraceful and pernicious Coarse vulgar and lewd were lescriptive adjectives Commission er Moss used but he made no di ect reference lo the strip lease a major point in many of the com ilaints lie said he had given the utmost onsidcration to the fact that the healers employ between fiOO and 00 persons but that the welfare if the public was plainly imper iled by the type of performance he language used and the display of nudity Vlme Union Leaders Are Satisfied With Governors Promise FRANKFORT Ky Or ganization leaders for the United Vline Workers of America in Har an county said Saturday they vere satisfied with promises nf jov A B Chandler lhal Iheir vorkers would be prolectcd William Turnblnzer Hnrlan county organization leader quoted he governor as saying that at cast part of the mine owners had greed to allow union organizers n their mines Chandler ordered 1G police in he Harlan district earlier this veck after a confernce with mine iperalors He lold Turnblazer in i conference with union workers riday that companyemployed deputies would be withdrawn from he mines Turnblazer said White Bathing Suits Banned at Dirty Lake CLEVELAND wasnt entirely for morality reasons that white bathing suits were annod from Cleveland beaches Saturday Mrs Frank Sotak mcm ici1 ot Parks Director Hugo Var gas advisory committee on beach attire said white suits whether r not they arc immodest would nok terrible coming out ot our dirty lake LABORALLOVER WORLD STAGES CELEBRATIONS Russia Sees Fascist War Menace London Busmen Go on Strike BY THE ASSOCIATED PRESS Thousands marched cannons roared an5 bands blared the in ternationale over the world Satur day in traditional May day demon strations One bomb death occurred in rVarsaw where Polish socialists and communists engaged in a urbulent celebration A child vas the victim Several others vere hurt Huge throngs jammed the streets of European capitals and what was ermed the biggest May day pa in New Yorks history pro claimed proletarian solidarity There and in many other Amer can cities all police were held in reserve Parade in Moscow Cossacks paraded in Moscows red square before Communist ihief Joseph Stalin a halt million lersons gave Ihe clenched fist sa ute in Paris and German workers leard from Adolf Hitler in Berlin iiat the time for higher wages had not yet come Loyalist sympathizing paraders n many cities over the world cried help Bilbao as Spanish insur gent guns hammered at the be sieged basque capital The day also brought the film capital of Hollywood its greatest labor crisis in years with possibil ity ot a walk out ot 10000 union woikers in movie studios 1 ExtraPolice PosteS H At Chicago groups called for by 10000 marchers Extra police men were posted at strategic points downtown and guards were posted at radio stations electric service stations and telephone companies The day took on the aspects of a national holiday in France and Russia In France demonstrators mobil ized to hail gains achieved by the peoples front government to de mand social reforms and lo seek consolidation of forces against fascsim A walkout of 25000 busmen sig nalized May day in London The strike for slower bus schedules and shorter working days crippled the citys transportation system in the midst of the nations coronaltono eason In a May day manifesto the committee of the communist in ernational named the United States and France among nations n which it said organization of workers had checked capital sm The manifesto called for rev olutionary overthrow of capilal sm Z Mexico City Parades Waning labor organizations conducted separate riemonstra ions in Mexico City Officials of Mexicos federal district routed heir parades over different sec ions of the city lo avoid clashes A downtown mass meeting was railed in Detroit by a united May day committee claiming to repre ent 100 union fraternal and la ior organizations But the piime abor group in Michigans indus rial United Auto mobile Workers of planned no formal participation Leaders of American Federation of Labor unions at Cleveland isked their followers to shun par ades scheduled to converge on the public square from three sides of he city Two groups nf demonstrators he Veterans of Foreign Wars and members of leftist organizations vied for attention in Philadel phia Constabulary on Alert The joint council of the com mittee for industrial organization it St Louis called for a mass demonstration by several thou iancl union workers Rumors that radical groups planned an uprising put the con stabulary and police on the alert n the Philippines In Berlin Reichsfuehrer Hit er told 180000 wildly cheering boys and girls packed in Olympic ladium Saturday in the reichs May day celebration that those vho think they can bring dis inion into our youth are mistak en The reichsfuehrers words car by radio to an estimated 000000 other members of the Htler youth movement in mass meetings throughout Germany vere interpreted as a possible efcrence to nazi differences with he Catholic church over the edu ation of German youths JAILS FASCISM THREAT TO PEACE OF WORLD MOSCOW comrois ar Klementi VoroshJIov in a May day address Saturday declared hat world peace was threatened ;