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Mason City Globe-Gazette (Newspaper) - November 2, 1933, Mason City, Iowa 1 5 M r M ir or North Iowas DAILY PAPER Edited for the Home THE NEWSPAPER THAT MAKES ALL NORTH TOWANS OME EDITION VOL XL FIVE CENTS A COPS ASSOCIATED PHESB LEASED WIRE SERVICE MASON CITY IOWA THURSDAY NOVEMBER 2 1933 THIS PAPKK CONSISTS OF TWO SECTIONS SECTION ONE NO 21 Try fo Saie Their Homes Owners Respond to F R Invitation to Wire in By HERBERT PLUfllMER ASHINGTON Nov 2 When President Roosevelt in his third report to the country ex tended an invita tion to home owners In dis tress to wire or write Washing ton of t h e i r plight the re sponse was tre mendous Almost imme diately messages began to pile up at the Federal Home Loan Bank hoard Only a few days had passed when 500000 home owners faced with the threat of foreclosure had communicated with the hoard These half million applicants have asked for financial aid to the total of a billion and a half dollars In the same address the presi dent issued another invitation The balance of the public works money he said nearly all of it in tended for state or local projects waits only on the presentation of proper projects by the states and localities themselves Washington has the money and is waiting for the proper projects to which to al lot it This phase of the public works program evidently was singled out by the president for the reason that funds are goingout slowly Explaining the Delay Those who have watched the sit uation from the outside as well as experts in the PWA believe there are several reasons for the delay They are able to put their fingers on a few There may be others For one thing a lot of states and localiUss not yet have been brought around to believing that higher THREE NEW STATE TAXES URGED Midwest Governors Report to Roosevelt WAUKONISHOST TO LEGIONNAIRES OF 4TH DISTRICT State and Region Heads at One of Largest Meets Ever Held By STAFF CORRESPONDENT WAUKON Nov most northeasterly county yesterday be came the states American Legion and Auxiliary capital with the ad vent of one of the largest fourth district fall conventions ever held All of the dozen counties in the district were largely represented State and district officers of both organizations were here to partici pate in the afternoon and evening sessions The Auxiliary also con ducted a program jn the forenoon Tom Thomsen of Elkader dis trict commander and Mrs Katliin ka Hanson of Decorah fourth dis trict committeewoman were in charge of all meetings Duster at Session The state department of the Le gion was represented by Leo J Duster Cedar Rapids department commander R J Laird Algona department adjutant and Frank Miles Legionaire editor For the Auxiliary Mrs Winni fred Niggemeyer Fort Madison de legal as well as financial restric tions in accepting PWA offers Sec retary Ickes has said he wants all applications in by Jan 1 In view of this therefore some of the states have abandoned efforts to remove legislative barriers The survey and planning costs of proposed projects form another stumbling block to some These must be finished before actual con struction can begin And while the government has money for this pur pose as yet there has been found no way to apply it locally Minority Control1 Opposition has been expressed in some instancesbecause the fed eral government which contributes only 25 per cent some expendi tures insists on rigid control of that particular project Labor costs play their part too Many of the states have insisted that no work can be done as long as Washington insists all skilled labor must be paid at the rate of 5110 an hour It has been complained also that Washington refuses to put some money in the communities by releas ing funds for the purchase of mate rials even though materials so pur chased would go into construction when the project got under way These are a few of the reasons advanced for the delay which is throwing the recovery machinery out of gear It may be necessary to remove some of the obstacles before full advantage can be taken of the presidents invitation Lindberghs Arrive in Amsterdam Holland AMSTERDAM Holland Nov 2 and Mrs Charles A Lind bergh arrived here this afternoon after a flight from Les Mureaux France AUNT HET By Robert Quillen 1 feel sorry for Jane Proud as she is it must be hard to hide her brains just Cov the sake o a husband TURN TO PAGE 6 On the womans page in this issue will be found an account of the American Legion Auxiliarys phase of the district convention held in Waukon Wednesday partment president and Mrs Myr ton Skellcy Davenport secretary were spokesmen for the state head quarters A banquet and program held in the Catholic church and attended by some 400 climaxed the days festivities Keep to Course The Legion Commander Duster insisted must keep to the true course In the years ahead By the time of the state convention in Sioux City next August he de clared there will be a 5000 gain In membership over last year A large number of fourth districts and posts reported over the top As a preface to his address Com mander Duster turned to Monsignor Stuart seated at the speakers table as an honored guest and paid tribute to him as one who once had helped guide the steps of a poor young orphan He was referring to the monsignors service as president of Columbia college at Dubuque when Mr Duster was a student there Explains Provisions Mr Laird explained the provisions of the economy act Mrs Skelley stressed the privilege involved in eligibility to the auxiliary Mr Miles pleaded for a fighting Legion for a just fight Mr Niggemeyer to the accompaniment of a running fire of witty stories cleverly told called upon the auxiliary to be equal to the challenge upon them born of war time responsibility and peacetime obligation Mrs Grace Gilbert King West Union who has held high office in the auxiliary touched on national defense in her brief talk Her think ing on the subject she observed was affected by a query put to her re cently by a son Do you suppose he asked Turn to Pane K Column 4 IOWAN DIES WHEN AUTO OVERTURNS James Dolezal Iowa City Crushed to Death Under neath Car IOWA CITY Nov 3 Dolezal 25 Iowa City was killed early this morning when his car overturned and pinned him beneath it The accident occurred on the Iowa City and Solon road Dolezal received a crushed chest but Dr George Maresh county cor oner said that his life probably could have been saved had the car been removed at once He said that death was caused by suffocation Dolezal is survived by his par ents five sisters and four brothers GOLD LURES BOY PROSPECTOR Carl Fulton whos been hunting finding the Colo rado mountains since ISfiO shows little Toughcy Barker sonic o the trlclcs ol the trade at Brcckenridge Colo Associated Ircsa Price of Gold in R F C Purchases Boosted Ag 1 V S All Gold Shipped From Abroad WASHINGTON Nov 2 The Roosevelt administration today dangled before the world an offer to buy all the foreign gold that is shipped to this country and again advanced the figure at which the RFC makes purchases of the new output of domestic gold mines For the latter a price of an ounce was established as com pared with 3226 yesterday Meanwhile the bullion quotation at London presumably in response to the Roosevelt plans rose from yesterday to 53211 today The dollar was weak declining overnight to 5482 to the pound It also weakened against the franc Details Undisclosed Details for plans for purchasing the imported gold Including the price to be paid remain undisclosed as did the status of negotiations with Great Britain These were undertaken for the purpose of avoiding a currency de preciation race between the two countries as a result of the Ameri can operations The theory behind Mr Roosevelts program is that if gold prices can be raised and held at a high level both here andabroad there will be an automatic adustment which will carry domestic commodity prices upward Pay With Notes Making known the first step in the buying of foreign gold Chair man Jesse H Janes of the RFC last night announced that the New York Federal Reserve bank would pay for imported gold in RFC notes with which the newly mined domes tic metal also is bonght By this plan it appeared the gov ernment has avoided direct dealings in foreign gold and exchange mar kets leaving them to individuals and firms choosing to ship gold here The effect of this upon world gold prices and the exchange value of the dollar and the pound econom ists said would be virtually the same as though the government were making the purchases direct American firms importing the gold it was explained would have to buy pounds or francs to pay for it abroad thereby depreciating the dollar in relation to the British and French monetary units Converted Into Dollars Europeans who choose to send the gold here will be paid in the RFC CoCnmn 5 Civil Guard Killed 6 Injured in Riot PAMPLONA Spain Nov 2 civil guard corporal was killed and one guard and five socialist workers were injured last night when socialists attempted to dis arm guards who were patroTIing the doors of a theater in which a rightist meeting was being held NOTES BACKED BY SILVER PLANNED Treasury May Soon Put Out 11 Million Dollars in Certificates WASHINGTON Nov 2 treasury may soon issue 11 million dollars in silver certificates backed by silver received in last Junes war debt payments The Thomas amendment to the farm law which authorized accept ance of debt payments in this me dium required that the silver thus received be made the backing for an issue of certificates The process of assaying the metal received has just been completed Not Inflationary The next step would he the en graving of the certificates Treasury officials denied today that this could be considered infla tionary as the certificates will be used in the normal course of busi ness to replace other forms of cur rency as they are turned in at the treasury for redemption There was no statement as yet as to what denominations the certifi cates would be The section of the law under which the course will be taken reads Certificates Issued The secretary of the treasury shall cause silver certificates to be issued in such denominations as he deems advisable to the total num ber of dollars for which such silver was accepted in payment of debts Such silver certificates shall be user by the treasurer of the United States in payment of any obliga tions of the United States The silver so accepted and re ceived under this section shall be coined into standard silver dollars and subsidiary coins sufficient in the opinion of the secretary of the treasury to meet any demands for redemption of such silver certifi cates issued under the provisions of this flection and such coins shall he retained in the treasury for the payment of such certificates on de mand Held in Treasury The silver so accepted and re ceived under this section except so much thereof 03 is coined under the provisions of this section shall be held in the treasury for the sole purpose of aiding in maintaining the parity of such certificates as pro vided in existing law Any such cer tificates or reissued certificates when presented at the treasury shall be redeemed In standard silver dollars or in subsidiary silver coin at the option of the holder of the certificates The silver was accepted from the debtor nations at the rate of 50 cents for an ounce and the total value taken in at this level ran slightly in excess of JllOOOOOO WALLACE PEEK MORGENTHAUGO TO CONFERENCE Licensing of Farmers and Distributors Proposed WASHINGTON NOV 2 Governors of five midwestern states conferred with President Roosevelt and Secretary Wallace this after noon to present their program call ing for fixing prices of the princi pal farm products The delegation was headed by Governor Herring of Iowa and in cluded Governors Berry of South Dakota Olson of Minnesota Langer of North Dakota and Schmedeman of Wisconsin Besides price fixing the govern ors program calls for quick infla tion of the currency and the setting quotas of production for farmers to be enforced by licenses Peck and Morgenthaii Later Farm Administrator George N and Gov Henry Morgen thau Jr of the farm credit admin istration joined the conference at the white house Discussing their proposals with newspapermen the governors unan imously favored licensing of tann ers processors and distributors to effect higher prices and production control said agriculture should be handled as a public utility as vol untary action by farmers to curtail production cannot succeed as long as a substantial number of the farmers do not voluntarily join in the program Skeptical of Reduction He was skeptical of the reduction in the production of wheat sought by the farm adjustment administra tions wheat program Farmers who have not signed agreements to curtail plantings in return for government price bene fits he contended will increase their sowings so as to offset the reduc tions by those who signed with the effect that the gross acreage and production of wheat next year is likely to exceed that of average years Herring who called the recent conference of governors at DCS Moines and Olson called on Gover nor Morgcnthau of the farm credit administration to discuss speeding up farm mortgage refinancing Volume Doubled They were informed the number of loans and the volume of money being disbursed for mortgage re financing has been doubled from week to week recently More than 59000000 in loans were closed last week The staff of appraisers working through the 12 federal land banks wns increased from about 200 last March to more than 4000 who are now at work averaging eight ap praisals each a day Morgenttmu said he has estab lished a special section to deal with farmers facing immediate foreclos ure as a result of his recent invita Turn tfl ragf ff Column R Farmer Has Lost Ground in His Prices Goal of Before War Purchasing Power Farther Away WASHINGTON Nov 2 Prewar purchasing power for the American farmer the goal of the farm adjustment act today was further away from mathematical realization than on May 15 three days after the act became law A dozen major programs had been launched by the farm adjustment administration Most true were still far from the stage where their creators look for fruit but the buy ng power of the average unit of produce planted cultivated and har vested by the farmer had lost rather han gained in potency 61 Per Cent Statistics compiled by the bureau of agricultural economics made public today showed that the farm ers purchasing power on May 15 was 61 per cent of the prewar per iod 1909 to 1914 but that for the week Oct 11 to Oct IS the last sur veyed his purchasing power was 59 per cent of prewar It wasnt that farm prices had declined They moved up fast nulgcd receded but still were above the May 15 level from Oct 11 to 18 The slump in the farmers buying power was more largely accounted for by the Increase in the average prices paid for dozens of articles which he needed for his family and to carry on his business Above f Sure 100 to repre Briefs From World News By THE ASSOCIATED PRESS MUNICH Pan ter British journalist wns released from jail where he had been held accused of misrepresenting nazi act ivities and ordered to leave Ger many within 48 hours ST JOHNS N Brit ain Canada and Newfoundland said Prime Minister Alderdice have reached an agreement regarding plans for a projected transAtlantic air service He did not give details HAVANA bombs the most to explode in one night since the Machado regime disturbed sleep in the capital as political quar ters awaited a definite decision by Carlos Mendleta on accepting the provisional presidency should the Grau government be overthrown antlsemitic stand resulted in the withdrawal of the Jewish Ullstein family control from its big publishing house FRIEDRICHSHAFEN Germany Graf Zeppelin completed its homeward flight from the United States sent prewar level the prices paid to farmers on May 15 were repre sented by the figure 62 or 38 per cent under prewar At the same time the average prices paid for the things he commonly needed was shown by the bureaus index as 501 or 1 per cent above prewar For the period Oct 11 to 18 the price paid farmers was 68 or 6 points over May 15 and 32 per cent under prewar But the prices farmers pay meantime had risen to 11G5 or 165 per cent over prewar BOMlDESTlYS CHEESE FACTORY Wisconsin Violence Keeps on Pickets on Job at Council Bluffs MILWAUKEE Nov 2 A dynamite bomb today demolished tne cheese factory El Blcy near Port Washington In a region where farm strikers are in control of the countryside Fire which followed the blast completed destruction of the factory Sheriff Peter J Jung said there Is no doubt that the blast was set off by strike pickets It was the fourth bombingof a cheese factory since the beginning of the strike but it was the first plant demolished Bley owner and operator lives a block away He heard the blast and hurried to his factory but flames were beyond control when he arrived He estimated the dam age at Planned to Keopcn Bleys factory had been closed but he contemplated resuming oper ations today and had notified his pa trons to start delivering milk No one in the little community of Bel gium where the factory was sit uated saw the bombers A group of strikers today made another raid on the plant of the Sunshine Dairy at Waterford south of here where milk was spilled from two interurbnn train cars last night The assault today wasmade by about 50 pickets who overpowered four deputies and destroyed about half a carload of milk being shipped to Milwaukee Roads Blocked Again COUNCIL BLUFFS Nov 2 IP After a temporary cessation due to the conference of midwestern gov ernors picketers have reestablished their blockade on three of the four principal highways leadinginto Council Bluffs Squads of men with logs were turning back all farm produce trucks on highways 6 7 and 75 They refused to comment on their attitude toward the governors con ference or to say whether or not they have received picketing orders from the farm holiday association Approximately 10 men were en gaged in the picketing which was started last night Highway 34 Is the only primary road into this city which is open Will Rogers BEVERLY HILLS fjil Nov in Dingville loivn named for the great cartoonist Ding and sometimes called DCS Moines the farmers and governors were in convention It dont take a convention to tell that the farm ers are in a bad plight The speeches were all made by farm leaders Now what Is a farm leader I was raised on a farm we had farm hands farm hired girls farm horses farm mort gages not but I never saw a farm that raised farm leaders This leader thing is a type of growth that has sprung yip since everybody started join ing organizations not only in farming but in everything In the old days if you was smart enough to he in a business you was smart enough to tend to your own business without lin tening to a leader make a speech Yours for less leaders and less followers of leaders YOURS WILL CopjHshl 1133 McNnujht Syndicate Inheritance Laws of Great Britain Studied at Trial British Barrister Takes Up Wide Range o Topics at Sioux City SIOUX CITY Nov 2 fed eral court jury received a lesson in English law today from Charie ChalJen British barrister expeir government witness in the trial o Oscar M Hartzell for using th mails to defraud in his promotion o claims to the Sir Francis Drake es tate Challen discoursed on a widi range of subjects in nearly tw hours of direct examination British laws regarding inheritanci was one of the chief topics He said that the statutes outlawed the righl of recovery by an heir on persona property six years after the right of action occurs On real estate the period of recovery right extends 12 years Identifies Copies of Laws Challen Identified copies of Brit ish laws setting out these limita tions His testimony was designed to ro ute claims of Hartzell contained in otters already admitted in evi lence that the estate of the EHiza ethan sea rover should have gone to a son not listed In history The son Hartzbll was said to have con tended wns fraudulently deprived of his rights and he further con tended that the right of recovery Jtill exists under British law Challen traced the history of ec clesiastical courts whose jurisdic tion in civil matters he said ended with a law passed in 1857 Hartzell allegedly claimed he was seeking to establish his rights to the Drake es tate in the ecclesiastical courts Jurisdiction Reduced By the law of 1857 Challen said the jurisdiction of the ecclesiastical courts was reduced largely to mat ters affecting the discipline of the clergy and other church affairs In no cose he said did they have pow er over property John S Pratt assistant attorney general questioned Challen search ingly in regard to the ecclesiatlcnl tribunal He also read a reference in one of the Hartzell letters to the lords and kings commission the highest powers that be acting on the Drake estate matter Challen said he had never heard of the com mission What is the highest judicial tribunal in England Pratt asked The house of lords said Chal len Claim Assignment Void Questioning the witness on the flupposition that living heirs of Drake existed as claimed by Hart zell Pratt asked if his claim could bs assigned to another person Such an assignment Challcn said would be void under the common aw Challen also gave the jury a brief explanation of titles in England particularly baronetcies one of which Hartzell claimed in his cor respondence he would receive when he obtained the Drake estate The baronetcy said Challen is a hereditary title which was created by James I after the reign of Queen Elizabeth in which Drake lived The title he testified does not gov ern in any way the disposition of the real and personal property of the baronet at his death A baronet is a Turn in 5 Column l TAX COMMITTEE GIVES PLAN FOR EXTRA SESSION on Corporations 2 Forms of Income Tax Proposed DES MOINES Nov 2 T Three new sources of revenue will ie recommended to the special as embly session by the joint tax com nittee Chairman Will F Rlley an ouneed today A business tax on corporations a sersonal net income tax and a tax in the gross income of retail sales vill constitute the revenueraising uggestions to be submitted to the egislature Rlley said Members of the commlttccn the ntorlm committee on the reduction governmental expenditures and revision groups representing roth houses of the assembly will icet this weekend for final ap roval of the measures Plan No Surtaxes The proposed income tax will be graduated from 1 per cent on the irat income to a maximum f 5 per cent on net incomes of oOOO or over with no surtaxes iley said The business tax will be on a flat asis with a recommended rate of robably two per cent and the re ad sales tax to be recommended vill be for two per cent on the roas income from the sale tang blc property at retail It will be recommended that even precaution be taken to make the new revenues rtplace the present tax on property to the extent of the amount collected tem of crediting the new revenues back to the taxpayer is contem plated Urge Broad Base As broad a base as is adminis tratively sound will be recommended for the personal net income tax he said so that the largest possible number of persons may make a conscious contribution to the cost of government The rate of the present federal Business taxes and the tendency of the federal government to look to msiness for such of its revenue for he recovery expenditures caused he committee to suggest the two per cent rate for the business tax he said which will be applied to the net income the Iowa business of corporations The retail sales tax he said will not make necessary any additional tax on those articles upon which the state already Imposes some form of sales tax or license tax as with gasoline and oleomargarine This tax the committee believes will be equal in its distribution and substantial in Its yield Uopliicc Property Tax It will be recommended that ev ery precaution be taken to mako the new revenues replace the tax on property to the extent of the amount collected Riley said Otherwise the new taxes become just another tax and the tax burden is heavier by the amount of their yield To accomplish this result the committee will recommend distri bution of the new revenues back to the credit of the individual taxpay er on the basis of the assessed valuetiei of the property on which he now pay a tax Also the commitee will probab ly recommend a method by which there may be an impartial review of the levy made and the budget set up for any fiscal year It Is hoped that is the consid eration of these new measures the people will realize the necessity and Importance of relieving the burden on property and that those who IOWA WEATHER Partly cloudy colder In fast and central portions Thursday night Friday fair with rJslnjf temperatures LOCAL STATISTICS GlobeGazette weather figures for 2t hour period ending at oclock Thursday morning Maximum Wednesday 78 Minimum in Night SI At 8 A M Thursday 33 Kalnfall OS Novembers indulgence in sum mer weather carne to an abrupt ending Wednesday night with R drop in temperature that totaltti 47 degrees in a 12 hour period Tuesday morning brought a chanjjf from rain to snow ;