The Daily Alaska empire Newspaper, June 7, 1932, Page 1

THE DAILY ALASKA EMPIRE “ALL THE NEWS ALL THE TIME” VOL. XL., NO. 6050. JUNEAU, ALASKA, TUESDAY, JUNE 7, 1932. i MHV[BER 'OF ASSOCIATED PRESS ' NEW NATIONAL TAX PLAN IS EFFECTIVE J CONVENTION " BOTH PARTIES FACING FIGHT CHICAGO MEETS Political Clashes Indicated —Republican, Demo- crats Alike PROHIBITION ISSUE THREATENING G.O.P. Roosevelt Faction and Antis to Stage Scrap, Convention Control WASHINGTON, June 7.—Political clashes in high commands in both parties have been thrust into the convention battles upon both the Republicans and Democrats. With the G. O. P. leaders at the National Capital agreeing in prin- ciple on the declaration for re- submission of Prohibition, they have plit wide apart on the wording of the plank and the issue is pointed for Chicago and settlement in the party assembly next week. James R. Garfield, assigned to draft the Republican platform, will have a final talk with President Hoover sometime today. Democratic Fight The Democrats face a serious fac- tional fight for control of the Na- tional Convention. Jouett Shouse asserted his name will be put before the National Convention for Permanent Chair- man regardless of the announce< ment by the aides of Gov. Frank- lin D. Roosevelt that they will seek to place United States Senator Thomas J. Walsh, of Montana, in the Chairmanship. James A. Far- ley, Chairman of the New York Democratic State Central Commit- tee, Roosevelt generalissimo, an- nounced yesterday that Senator ‘Walsh would be sought as the Permanent Chairman as against Shouse, who is considered anti- Roosevelt. Senator William E. Borah, of Idaho, has launched a broadside against the Republican Party’s pro- posed Prohibition plank. Then there is a proposal for one similar plank in both platforms. B BROOKHART LOSES FIGHT FOR SENATOR Towa Senator Apparently Defeated for Renomina- tion, G.O.P. Primary DES MOINES, Ia., June 7—Sen- ator Smith W. Brookhart, whose political battles have become epics of Iowa political history is steadily losing ground as the returns come in from yesterday’s Republican Sen- atorial primary to Henry Field, the seedsman of Shenandoah, Iowa. Field is leading Brookhart at a ra- tion of four to three. Gilbert N. Haugen, for 34 years Representative in Congress from the Fourth Congressional District, is 800 behind with 350 precincts reported. His defeat is claimed by the opposition. Haugen, Northwood banker, was first elected to Congress in 1898 and has been re-elected sixteen times. He has been Chairman of the Committee on Agriculture whenever the Republicans have been in control of the House for many years. Field who has probably been nominated for the Senate to suc- ceed Senator Brookhart is 60 years of age, President of the Henry Field Seed Company and the Shen- andoah Seed Company, editor of Field's Seed Sense and extensive agriculturists. He has eleven chil- dren. Hollywood Bank Closes; Screen Stars Depositors HOLLYWOOD, Cal, June 7.— Scores of screen stars including Greta Garbo, Will Rogers, Harold Lloyd and Jean Harlow, were heavy depositors in the First Na- tional Bank of Beverly Hills which closed Monday. | hope that a repeal plank providing' Urged by NEW YORK, June 7.—John D. Rockefeller, Jr., lifelong and staunch advocate of temperance, last night branded the Eighteenth Amendment a failure and urged it be repealed. Rockefeller expressed the earnest | for ratification, by State conven- tions, will be incorporated in both the Republican and Democratic national platforms ‘“thus taking the question out of politics.” Rockefeller said further: “When the amendment passed, I earnestly hoped with the host of advocates of temperance that it would be generally supported by public opinion, thus the day would | be hastened when the value of the society of men with minds | and bodies would be free and the undermining effects of alcohol would be generally realized. “That this has not been the re- sult, I have slowly and reluctantly come to believe.” The statement was directed in| the form of a letter to Nicholas' Murray Butler, President of Co- lumbia University, who last Sun-| day announced he would urge the | Republican National Convention to adopt a resolution to have Con- | gress submit the question of repeal | to nonpartisan conventions in var- ious States. Rockefeller endorsed this plan. The millionaire oil man also reiterated his life-long stand as an advocate of temperance adding that the hopes and benefits of Prohibition have not been realized Eighteenth Amendment Is Branded as Failure;Repeal Rockefeller, Jr. od but instead “‘drinking has increas- ed. The speakeasy has replaced the saloon, not umit for umt but probably two-fold, if not three- fold.” Rockefeller, Jr., said his father has given $350,000 to the Anti- Saloon League since 1900. UNSHAKEN—JUBILANT WASHINGTON, June 7.— Congressional Drys declared them- selves unshaken and the Wets ate jubilant -over -the. statement issued by John D. Rockefeller, Jr. BONUS PARADE | IS SLATED FOR THIS EVENING Police Expect Red Demon- stration—Precautions Are Being Taken WASHINGTON, June T7—Rein- forced by marchers, those who have hooked rides on trains and those who have motored, and oth- ers footing it, the several thou- sand veteran bonus men here are making preparations for a parade | tonight as an appeal for money. A touch of red is expected to| offer the prospects for fireworks. The police authorities announc-: ed a Communist plot “to combat the police with violence has been discovered.” and precautions are being taken accordingly. (Advices received here state pil- grimages are starting all over the| country, the goal being the Na- tional Capital where a vote on; the bonus payment is slated to be taken on June 13, if Congress is in session on that date. HAUSNER STILL | AMONE MISSING LONDON, June 17. «nkdomesl from London to Warsaw and air officials of several European na- tions who waited in vain for word | of Stanislaus Hausner on his pm-i jected New York-Warsaw flight feared he had 'been lost in the | Atlantic. | The only possibility was that he | might have landed somewhere on the Continent where he would be out of communication with the| world. 1 A garage proprietor at Cork, Treland, over which the Great Circle Route would carry a flier, reported he heard the motor of| a powerful airplane early Sunday morning. —l MAJ. L. E. ATKINS LEAVES TO INSPECT ROAD DISTRICTS Maj. L. E. Atkins, Engineer of- ficer of the Alaska Road Commis- sion, left togay on his first trip of inspection since the opening of the current season. He will go direct to Seward and from there i CONTROL OVER INSULL CHAIN 1S PASSED ON Former Immigrant Boy, kb $6-a-Week-Messenger, Is New Head CHICAGO, IlL, June 7.—Control of the huge Insull utility chain today passed from Samuel Insull, who resigned, to James Simpson, one time immigrant boy who start- ed his career as a $6-a-week mes- senger in a department store, and until yesterday, Chairman of the Board of Marshall-Field. Insull gave ill-health as his rea- son for resigning after his com- panies went into a receivership. Simpson will take full charge of the Insull utilities. — - EIGHT PERISH, THIRTY OTHERS INJURED, FIRE 'Two Hubdted Persons Es- cape Flames in Cleve- land Apartment CLEVELAND, Ohio, June 7.— Eight persons are known to have been killed and firemen said they believed two others perished, when an explosion started a fire re- sulting in the destruction of a downtown apartment building ear- ly this morning. ‘Thirty other persons were burn- ed or seriously injured and fully 200 persons were saved in dra- matic rescues or escapes. ——— — AKRON AWAITS FLYING ORDERS -|bonus and farm to McKinley Park where he will spend & day or two. From there/ he will proceed to Fairbanks. He! will return here shortly betore! July 1. ' ‘moored ticipation in the Pacific Fleet war games LEGION STARTS PLANS FOR B FOURTH OF JULY Three - Day Celebraiiq; of Nation's Birthday Will Be Staged Here At a special meeting of the Ex- ecutive Committe of Alford John Bradford Post No. 4, American Legion, plans were formulated for the most elaborate program in re- cent years for the community's annual Fourth of July Ce! Tt will e spread over three days and will embrace the most com- prehensive sports and ceremonial sections yet attempted by the Leg- jonnaires since they took charge of ‘the annual event for the Chamber of Commerce. The program events will start Saturday evening, July 2, and wind up in the wee small hours of the morning of July 5. Nine committees were appointed by the Executive Board last night to have control of arrangements. Bi-Centennial Observance As this is bi-centennial year of the birth of George Washington, and is being observel on a nation- wide scale, a Bi-Centennial Mem- orial service will be included the program. These ceremonies: be held on the morning of Fourth at one of the local The Legion plans to have a parade, also. Prizes for the floats and other features will offered. Tt is planned fo i the Chilkoot Barracks garnison here to participate in the celebration and if the invitation is accepted, a soldier contingent will be in the line of march. A sailor complement is likewise planned. The Navy Radio Supply Ship Swallow has conditionally ac- cepted an invitation to spend the Fourth here and a detachment from it, and the Coast Guard Cut- ter Tallapoosa, expected to be in port, will be in the parade. It is hoped by the Legionaires to in- duce many business houses and in- dividuals to enter floats and auto- mobiles. Lodges will be asked to have marching contingents in line, and the Firemen have promised to turn out. The City Band will fur- (Continues on Page Two) ———_——— FIVE KILLED ~ IN COLLISION Auto Crashes Into Ambul- ance Hurrying to Hos- pital with Patient COLLINGSWODD, Ohio, June 7—Three men and two unidenti- fied women were Kkilled outright, and two persons were seriously in- jured when an automobile collided with an ambulance carrying a 3- year-old girl to a hospital. The automobile was destroyed by fire. The ambulance was badly damaged. Herbert HOOVER Since 1928 The Empire starts foday a series of three feature stories by Herbert Plummer, Assoclated Press staff writer, reviewing - President Hoov- er's stormy years in the White House. World economic disorders, a war threat in the Orient and dis- a weakened na- tional credit structure, tariff, relief fights have |# been the Presi- HERBERT PLUMMER dent’s almost constant companions on Capitol Hill. “Herbert Hoover — Since 1928” sketches the complete picture of the President’s battles, disappoint- ments and triumphs. Start it today on page 7. i LOGKHEED CORP. TRANS-ATLANTIC AVIATRIX Ausaciated Press Phota Associated Press telephoto shows Amelia Earhart atop her airplane being cheered by a throng which assembled in a field outside the little Irish village shortly before she took off for London as a flying passenger. She completed the first solo flight of her sex across the Atlantic at Londonderry. i fietal—Pénetrating F ll;n Of Lubricating Oil Found NOW IN SIGHT, DAWES CLAIMS Reasons Given for Resigna- tion as President of Finance Corp. WASHINGTON, June 7.—Charles G. Dawes, who late yesterday an- nounced his resignation as Presi- dent of the Reconstruction Finance Corporation, quit the Government | organization to return to Chicago| and his bank. Dawes' resignation coincided with the enactment of the Budget bal- ancing tax bill. He said he felt the turning point toward eventual prosperity has been reached. President Hoover accepted Dawes’ resignation with regrets but praise for his ability. CHANGES HANDS Receivership Ended for| Aircraft Concern— Plans Announced LOS ANGELFS, Cal, June 7—| The Lockhead Aircraft Corpora-| tion has been sold for $40,000 to a| group headed by Walter T. Var-| ney, President of the Varney Air-| lines, ending the Federal receiver- ship of the past eight months. The corporation built planes for Col. Charles A. Lindbergh, Amelia | Barhart Putnam, Frank Hawkes and other noted fliers. The name will be retained by the new group and the company NEW YORK, June 7.—Discovery of a jelly-like film-making sub- stance in oil—a hitherto unnot- ticed oil within oil—has been an- nounced here. Two leading lubrication engin- eers said it furnishes a “startling new theory of lubrication — and practical opportunity to speed up automobiles and all machinery with ‘less wear and greater power. Te report was made to the lub- ricating engineering committee of the American Society of Mechani- cal Engineers by William F. Par- ish, former chief of the lubrication: department of the United States Air Service, and Leon Cammen. In theory hereofore oil formed in three films, two attached to the metals slipping past each other, the third in between, cushioning and lubricating. ‘Another and different film has been discovered, Parish and Cam-| men stated,. When the original films are completely wiped off this mnew one springs out of the metal itself. This metal penetration is ap-| parently due pantly to the new Jjelly-like substance, which the en- gineers stated “has never been singly assayed before.” | The practical application, said| Parish, is the possibility of alter- ing oils to increase their metal| penetration. The engineers stated that “it is' highly probable” that Snexpcns!ve: changes in the formulae for mak-| ing lubricants will improve pene- tration. —————— RUM RUNNING - BOAT SEIZED Coast Guard Gets Motor- ship Off Coast of California will soon go into the production been made. The sale included the plant at Burbank, California. —— e DAWSON AND HEINTZLEMAN LEAVE FOR SPEEL RIVER ‘Wendell Dawson, engineer 1n: charge of hydro-electric investiga- tions for the Cameron and Zeller- bach interests, who arrived herel today from Ketohikan, left this afternoon for Speel River. He was accompanied by Asst. Regional For- ester B. F. Heintzleman. They are making the trip on the Ranger VI, and expect to be absent about three days. SAN FRANCIBCO, Cal, June 7. The Coast Guard has seized the off Point Arguello ‘The Chesapeake is registered as |an American ship. She is said to be a newcomer in the rum trade. CUTTER BEAR IS RENAMED OAKLAND, Cal, June 7.—Re- named the “Bear of Oakland,” the famous outter Bear is in readi- ness for scheduled departure for Boston, Mass,, to be renovated for the Antarctic trip under Rear Ad- miral Richard E. Byrd, INTERIOR DEPT, DENIES STEESE WILL BE GOV, Seward Report He Will Succeed Parks Given Official Denial An assertion that Gen. James G. Steese, former Alaska Road Commission President now visiting Alaska, will be the next Governor of Alaska, made last week by the Seward Gateway and sent to the Associated Press, has drawn em- phatic denials from both the In- terior Department and Gen. Steese ‘himself. In its denial, the Interior De- partment said the administration of Gov. George A. Parks is en- tirely satisfactory; that published stories he would be supplanted are ‘without foundation; and that letters of introduction given Gen. Steese by Department officials had prob- ably given rise to misapprehension as to the purpose of his visit. Gateway Claims Informed The cause of all the hullabaloo was an Associated Press despatch received by The Empire, and other Alaska newspapers who are mem- bers of that organization, under a Seward dateline last Saturday saying: “The Daily Gateway said it had authentic information that Gen, James Gordon Steese will be , appointed Governor of Alaska in the near future, after an ap- parent pleasure ftrip to the Ter- ritory. The newspaper sald Gen. Steese has been making a searching investigation into all major gov- ernmental activities in Alaska, it is believed, as a prelude to con- solidation of all departments un- der Steese’s direction as Governor.” There was no information avail- | able on the matter here, No official |of any branch of the Government {had heard of any such plan in the jofing and generally it was greeted \with skepticism. | Steese Issues Denial | It was known that Gen. Steese was somewhere dn the interior |of Alaska visiting friends and re- |newing old acquaintances. Re- |cently he was awarded an honorary | degree as Doctor of Science by the Alaska College. | He first heard of the Seward re- \port at Fairbanks and promptly denied it's correctness. An Asso- clated Press despatch from Fair- banks to The Empire today said: “Returning here Monday from a |fishing trip, Gen. Steese branded |as without any foundation. Se- |ward reports that he was going to succeed Gov. Parks as Governor lof Alaska. He emphasized he is 1in Alaska only on a pleasure trip and, also, to receive an honorary degree from the Alaska College. “The News-Miner reported that (Continued on Page Twa) REVENUE BILL DESIGNED FOR RAISING CASH Greatest Range of Taxes Ever Imposed on Na- tion, Peace Times NEW LAW BECOMES SUCH THIS MONTH Postage Increased Along with Scores of Other Assessments WASHINGTON, June 7. — The new revenue bill is now a law, bolstering the credit of the Gov- ernment with the greatest range of taxes ever imposed by this coun- try, except during war times. President Hoover signed the measure immediately it was de- livered to the White House. With the majority of the new rates, excises, tariffs and stamp taxes going into effect on June 21, the Treasury Department immed- iately began to prepare for the collection of the new high income rates applicable to earnings of the current year, payable in next year’s returns. A tariff on copper, oil, coal and lumber is included in the tariffs. Expected Yield Of the new taxes, a yield from excise taxes ranging from electriz power to cosmetics, automobiles to candy, is expacted to bring in $450,~ 500,000. Miscellaneous taxes, including charges on telephone and telegraph messages, admission tickets, oil pipe lines, safe deposit boxes, bank checks and boat are counted on for $150,000,000. Income taxes, personal and cor- poration, $290,000,000. Postal rate, increases including 3- cent letter postage, the sum of $160,000,000. Stamp taxes on bond and stock issues and transfers, futures con= veyances, $45,500,000. Gift taxes, and four tariffs, coal, oil, lumber and copper, account for the balance. FIRST AMENDMENT WASHINGTON, June 7. — The first bill to amend the tax measure was introduced this afternoon by Representative Albert Johnson, of the State of Washington, proposing & change in it to transfer electrical energy tax from the consumer to the producer. ——————— HOUSE, SENATE HAVE BATTLES OF THEIR OWN Garner Relief Program Fight Wages — Salary Cuts in Economy Bill WASHINGTON, June 7.—Demo-~ cratic leaders of the House today sought to jam through the Garner relief program despite the stubborn resistance of the Republicans. In the Senate an attempt to hasten and complete the Economy Bill is shown in its progress toward the statute books. The big fight is over the 10 per cent cut in the pay of all Gov- ernment civilians. President Hoover has proposed furloughs, without pay, at stag- gered intervals through the year, keeping the basic salary rates un- changed. VOTE PROGRAM WASHINGTON, June T7—Late this afternoon the House voted to consider the Garner. relief program under drastic procedure that vir- tually assures approval in a short time. The House accepted a rule for consideration of the bill under which it will be impossible to get any where in the House with any other relief plans. EGAN SURRENDERS SAN FRANCISCO, Cal, June T. —Frank Egan, suspended Public De- fender, surrendered to the police today to face a murder charge.