The Daily Alaska empire Newspaper, March 8, 1933, Page 1

THE DAILY ALASKA EMPIRE . “ALL THE NEWS ALL THE TIME” VOL. XLL, NO. 6282. JUNEAU, ALASKA, WEDNESDAY, MARCH 8, 1933. MEMBER OF ASSOCIATED PRESS PRICE TEN CENTS THREE MEN MEET TRAGIC DEATH COFFERS OF FEDERAL RESERVE BANKS THROWN OPE ROOSEVELT TO CONTINUE GRIP, BANK §I_TUAT|0N§ Chief Executive Will Re-| tain Command in Mone- tary Crisis NEW PROCLAMATION | EXPECTED TOMORROW1 Special Legislative Action| Will Be Outlined to New Congress WASHINGTON, March 8.—Pres- | ident Roosevelt intends to continue to command the National mone-| tary situaffon until permanent leg- | islation is possible, he told news- papermen today. A new proclamation is due to- morrow night when the present bank holiday ends. It is under- stood he will state he will con- tinue his broad powers, as Presi- dent, over the banks. In a special message he willsub- mit to the new Congress tOmorrow, it is understood he will ask for these broad powers to meet the situation. Sound Methods The President believes also that a more sound and feasible way will be worked out than scrip and is apparently relying on a plan to be put forward tonignt by the| ew York Federal Reserve Bank for additional use of Federal Re- notes based on impounded | serve gold. The President is willing that Congress take a twoor three weeks'| recess, after taking emergency ac- tion, to permit Grafting of a more definite and permanent program. | Door Closed on Gold The President intends, however,| to keep the door closed on gold! in American banking vaults. This embargo was embodied in his proc- lamation of last Sunday night. ———a— CONFIDENCE IS GIVENBANKERS, LOCAL C. OF C. B.'M. Behrends and S. E. Pope Guests of Honor at | Meeting Tomorrow | «Bankers' Day” at the Chamber of Commerce megting tomorrow noon in Bailey's Cafp, will be a demonstration of confidence in the Jocal bankers, their institutions and the handling of the present banking situation, on the part of the Juneau business men. B. M. Behrends, President of the B. M. Behrends Bank and S. E. Pope, Executive vn:e-Prest-' dent of the First National Bank,| and other officers of both insti- tutions will be guests of honor at the Chamber of Commerce lunch- The meeting tomorrow will give Juneau members of the Chamber of Commerce an opportunity to assure Mr. Behrends and Mr. Pope of their confidence in the finan- cial security of local banks, which are closed now and until PFriday in accordance with the national banking holiday declared by Pres- dent Roosevelt. Husbands Too Cautious To Fly Any War Planes CANBERRA, N. Z., March 8— The Federal Ministry has issued an order barring married men from being recruited in the Royal Aus- tralian Air Force. Tt is felt that family men have less nerve than bachelors and are apt to be too cautious for the de- velopment of a young air force. Another consideration is that the relatives of married men who are killed or injured in airplanes have claims for compensation and pen- M TN ISSING FROM BORDER )RDER TOWN ECONOMY NEED 1S GREAT, SAYS PARKS'MESSACE Governor Warns Lawmak- ers that Conditions Call for Serious Study | 1 1 \ 'BALANCED BUDGET IS | GREATEST OF NEEDS| {Resources Unimpaired but This No Time for Waste, He Tells Solons (For full text of Gov. Parks’ Message see pages 5, 6 and 7) | Maintenance of taxation at ex- isting levels and curtailment of ap- propriations and expenditures dras- ! tically in crder to achieve a bal- BANK SITUATION IS RELIEVED BY FEDERAL AGENCY Reserve Funds Are Being Supplied to Finan- cial Institutions ATMOSPHERE BEING CLEARED IN NATION General Lig;;t—er—ling of Bur- dens Indicated in Emergency Move WASHINGTON, March 8. — The i banking situation was further re- lieved today as the Federal Reserve banks opened their coffers to facili- tate financing of necessities. Secretary of Treasury Woodin told the Reserve Bank officials | House, Friends of Mr. and Mrs. Charles Thompson have been carrying on a search for them since they were reported missing from Tia Juana last December. Mexican police say they have returned to the United States. He was part owner of a distillery at the border town. Previously he operated an air line from Fairbanks, Alaska. (Associated Press Photo) ) RESOLUTIONS SENATE PASSES ARE PASSED ONBANK MEASURE; ALASKAN POSTS GOES TO HOUSE B A B it Ap ke e Eanpacts. Halinie pointment of Governor— | Board to Cope with Senate Wants Alaskan | Financial Situation The Senate today rushed through |the Hess bank stabilization meas- ure, empowering the Territorial | Banking Board to declare banking holidays and to issue such regu- rules, passed a joint resolution urg- (lations as might be needed to pro- ing the immediate appointment of [tect the banking institutions of a Governor, and the Senate pass-'the Territory and their depositors. ed another joint resolution urging|It Wwas carried by a unanimous the appointment of none except|Vote- bona fide Alaskans. , | The measure now goes to the The latter measure was intro-|House. It will be rushed there duced Tuesday by Senator James|this afternoon and House leaders R. Campbell. The Houss resolu-(are confident it will be enacted tion was introduced this morning |into law by not later than tomor- by Representative Warren A. Tay-|row afternoon, in time for it.to lor, Cordova. become effective if it should be- Text of Senate’s come necessary for the Board to The text of the Senale resolu-|act at the expiration of the na- tion, which will be sent to Dele- tional holiday on banks tomorrow gate Dimond for presentation to|Might. | Shattuck Introduces Measure the President, follows: e @ “Be it Resolved, by the Senate} Re-organization of the Territor- of the Territory of Alaska, the|ial Department of Education is the Two resolutions relating to Fed- eral patronage in Alaska advanced toward final passage in the Alaska Legislature this morning. The under suspension of the anced budget were urged upon Al- they could give currency to mem- aska’s lawmakers by Gov. George ber banks for necessary purposes in A. Parks in his biennial message|exchange for gold or gold currency. to the Eleventh Alaska Legislature Situation Clearing assembled in joint session this af-| The opening of the Federal Re- | ternoon. in the Hall of the House sorve Banks coffers clarified the | of Representatives. situation in many He declared that while “our na-'panks are prepared for a more gen- tural resources are unimpaired,i erg) lightening of the burdens and our opportunities are greater|caused by the emergency move. than ever before,” “we are now This is the third day of the entering what may prove % belextraordinary financial paralysis one of the most critical periods of 'pup already bank officials and busi- our history.” ness men are inspired with new Views Situation As Grave ingpes that the clouds of uncer- The Governor made no effort 10! ¢ainty have been lifted. s conceal his concern over current | Partial Reopening conditions. Near the end of his| partjal reopening of banks in !message he pointed out that the yarious parts of the nation yester- |preparation of the document, and gay greatly relieved the situation the preparation of reports of the'gng ajded to opening purse strings several Departments had required yy gupplying ready cash for neces- considerable time and naturally|gities, had to be started sometime before the Legislature convened. He then| i added: iRelwf Plans “I wish to call this to your at- B s, tention because of the unusual‘Rus"’ed’ No scr”’ and unforséen developments of the Or C. H. Certificates past few days. In all probability, | the rapidly-changing economic sit-| e uation will have 1ar-reaching ef-le fects upon our industries and our e revenues. No one can anticipate e what may develop within the next | e 60 days.” . Stood Biennium Well ! ————————— ) ‘WASHINGTON, March 8. —Plans sped forward in the banking relief aids late today, with Secretary of the Treasury Woodin announc- ing actual currency will be e circulated in place of scrip Pointing out that the past two or clearing house certifi- years had been marked by the e cates. Territory’s history the Governor e ¢ e » ¢ ¢ ¢ o ¢ ¢ ¢ o asserted a record had been made —_——————— should justly be proud.” There IEGU-BETWEEN however, in his considered opimon.‘ ] conditions and the outlook calls| for cautious and wise legislation! The Territory is entering, he de-| clared, on one of the most critical most adverse conditions in the e by its Government of which “w no early sign of amelioration in| KIDNAP cAsE : | ) rather than fads and experiments periods of its history and its future ! localities and| House of Representatives concur- ring, that in the appointment to offices to which vacancies occur in the Federal administrative and judicial branches of government in the Territory of Alaska, the Pres-| ident of the United States is re- spectfully requested to make such appointments only from bona fide | residents of the Territory of Al- aska, otherwise qualified, and that the term “bone fide” as used in this resolution, means those actual residents of Alaska whose residence does not depend upon political of- fice and does not include those former residents of Alaska who have departed from the Territory and taken up residence elsewhere, and we request and welcome that a thorough investigation of the qualifications and fitness of each applicant be made for the respect- ive positions.” Asks Prompt Action ‘The House urged prompt action in The appointment of a Democrat- ic Covernor of the Territory to represent the Roosevelt Adminis- tration. It declared: “Whereas, by virtue of the man- date of the people of the United States at the election of November 8th, 1932, the National Adminis- tration for the next four years will be confrolled by the Demo- cratic party, and “Whereas, it is highly important that the administration of affairs in Alaska should not only be in competent hands but should be controlled by persons who are in (Continued on Page Eight) aim of a measure introduced this |morning in the upper branch by {Senator Allen Shattuck of this city. !Tt is almost identical with a bill lon the same subject that was in- troduced by him in 1931, passed ithe Senate and defeated by ja narrow margin in the House. It would create a Board of Edu- {cation composed of members from each of the four Judicial Divis- |ions, appointed by the Governor iand confirmed by the Legislature in joint session. The Board thus formed would have the authority to hire and fire the Commissioner |of Education. | Under the existing system, the {Board of Education is composed of the four senior Senators and |the Governor. The Commissioner !is elected by popular vote. The measure is designed to take the educational system out of parti- {san politics. | Brief Sessions Held Both branches held brief ses- isions this morning and adjourned before noon to await the joint ses- cion at 2 p. m. when the Gover- jnor was scheduled to deliver his biennnial message, Each passed a joint resolution relating to Federal patronage in the Territory. Reports ‘from sev- eral departments were received by {each branch from the Governor’s office and referred to variouscom- mittees for study and recommen- dations. g A motion was adopted by the House extending the courtesy of the floor to all former miembers who might attend the sessions. prosperity will depend to a large :xtent “on the outcome of your deliberations and the wisdom of the policies we chose to follow. We may choose, and I am confident we will, to be guided by experience and sound principles of business and curtail our expenditures, or we may pursue the easier course and in so doing place added burdens upon the people and the industries of the Territory. We can not lose sight of the fact that in the last analysis the individual must as- sume the costs of government.” Must Face Facts Observing that the duty of de- manding drastic reductions in all appropriations was not a pleasant one, Gov. Parks said “unless we recognize and squarely face the true conditions we can not expect to cope with the serious problems that must be solved.” 1In sub- mitting estimates for appropria- tions, “that in every case are far below the estimates that were pre- pared by the various departments, we have endeavored to provide suf- ficient funds to carry on the essen- tial functions, administrative, elee- mosynary and edicational, of the Territorial Government for the next two years. It has been neces- sary to eliminate many items that have appeared for several years. not that we do not favor the pro- jects, many of them are merito ous, but for the s3% reason that the probable revénues which we may reasonably anticipate will not " (Continued on Page Eight) 1S TALKING One of Four Men Under | Arrest at Denver Report- | ed to Have Confessed | DENVER, Col, March 8—Carl Pearce, aged 31 years, one of four persons held in the Charles Boet- tcher, 2nd, kidnaping case, is said by the police to have confessed writing all notes but denied par- ticipating in the actual kidnaping or that he received any of the |$60,000 ransom paid the abduct~ ors. Pearce, according to the police, wrote the notes in an office build- ing, using a typewriter as a go- between for Vern Sankey and Boettcher's father. New Officer-in- Charge of Alaska Radio Service WASHINGTON, March 6.—Col. George Kumpe, of White Sulphur Springs, Montana, now here as Chief Signal Corps Officer, has been ordered to Seattle, Wash,, as Officer-in-Charge of the Alaska radio service. He sails from New York June 20 and will succeed Col. Dawson Olmstead who has been wransferred to the War College here, —————— Three presidents of the Univer- ity of Toledo died within a space ~ of six years, Thomas suddenly of heart attack aboard a t previously. This is a recent photo MONTANA SENAT OR DIES ON TRAIN HUDSON BOYSS, NORMAN FLEEK “AREBELIEVED T0 BE DROWNED Trio Started to Row to Douglas Late Last Even- ing — Overturned Skiff Found PARTIES SEARCHING BEACHES ON BOTH SIDES OF CHANNEL Cries Are Reported to Have Been Heard from Channel About 9 Last ‘Night “Walshy veteran democratic solon from Montana, died to Washington, D. C. The man who was to be attorney general of the Roosevelt administration was on his honeymoon, having married the former Senora Mina Perez Chaumont de Truffin in Havana five days Miami, Fla., after their wedding in Cuba. (Associated Press Phcio) ! Three young men are be- lieved to have lost their lives in Gastineau Channel last night when they started out in a small skiff to row from Juneau to Douglas. The overturned skiff and one oar was found this fore- noon, by searchers, floating near the Union Oil Dock. The young men missing, and believed to -have drowned are: NORMAN FLEEK, aged 17, son of Mr. and Mrs. W. A. Fleek, of Douglas. GRANT HUDSON, aged rain near Wilson, N. C., on his way of the late senator and his bride in PROPOSALS ON REORGANIZING ARE EXPECTED Roosevelt May Advance Plans for New U. S. Government WASHINGTON, March 8—It is hinted at the White House that President Roosevelf, in his special banking and financial message to the new Congress tomorrow, will also include sweeping Government reorganization proposals as the first step in his drive to balance the Budget which he also urged in his proclamation last Sunday night. SCRIP PLAN IS DELAYED Final Action Awaits Mes- sage of Roosevelt to New Congress NEW YORK, March 8-—A de- cision as to whether the national scrip idea will be abandoned is expected soon after President Roos- evelt gives his message to the New Congress tomorrow, according to all information given out here today. Indicatlons are that the Admin- istration would move toward con- trolled cyrency expansion under the Glass-Steagall act. Alfred E. Smith is head of the New York State Scrip Board. He announced that clearing House serip plans are being held in abey- ance pending final word from ‘Washington, JANET GAYNOR ASKS DIVORCE LOS ANGELES, March 8.—Ja- net Gaynor, film star, has filed suit for divorce against Lydell Peck, bond broker. She charges undue jealousy and a bad temper, 19, of Juneau. WAYNE HUDSON, aged 21, of Juneau, employee of the Alaska Juneau mine. The parents of the Hud- sons are believed to reside in Everett, Wash. JAPAN FORCES " TAKE HOLIDAY Momentarily Resting After;las, was recently announced Capturing Great Wall and the wedding was set for Stron gh old inext Saturday night. Yesterday afternoon, Norman LONDON, March 8—Japan's de- Fleek borrowed a skiff from Glenn Rice, of Douglas, and termination to withdraw from the! jneay . Towe 2 League of Nations became more intending to return to Douglas last evening with Wayne apparent as the Japanese lorces-mdgGmm Hudson.g About, t,y:m rested momentarily after taking! gciock, young Fleek telephoned his over the last important pass i through the Great China Wall father the three were ready to set out for the trip acr south of Jehol City, capital of the 5 7 o rich Province of Jehol. Channel. i eard According to advices s Ars 8 {here from Tokyo, \ | | received About 9 o'clock the Tepatwat] bou o'clock last night Mr. | Cabinet has approved of a draft of! 7 ! 7 {sald he believed a communication which is expectedfwld he hellsved ha HSsti KEN jto be submitted to the League of| Nations on March 20. Marshal Resigns !‘ Meanwhile Marshal Chang Hsiao| Liang, who has been directing the| lcampaign against the invaders, has| {resigned as Military Over-Lord of| | North China. He has assumed, it is learnéd here, the blame for the |loss of the Province of Jehol to | the Japanese. The Japanese are reported to be ‘65 miles northwest of Peiping. | The next move of the Japanese | military is awaited. HOMESTEADS " ARE SOUGHT ¢ try of Land on Irni- ! gation Project ELLENSBURG, Wash., March 8.| —Hundreds of applications for| homesteads on the new irngauon! project have been received at Lhe} reclamation office. The new canal| will be completed in September and | will open 72,000 acres of land, 5,000 of which may be hemesteadsd. [ | Fleek, father of the young man, the Channel and went out of doors from his home to listen further but the cries had ceased. Tom Cox, who resides on the Douglas beach, said he heard cries coming ‘apparently from off the Rock Dump, also about 9 o'clock. He said the cries did not appear to be’ coming from anyone in dis- tress, however. Search Is Started When young Fleek did not return home this morning and Wayne Hudson did not report at the Al- (Continued on Page Two) ——eee FIVE KILLED - INSTRIFE IN BY HUNDREDS, ~ GERMAN LAND iApplicalions Filed for En-| Republic an Flag Gives Place to Old Imperial, Nazi Banners BERLIN, March 8.—Five persons were killed and several were in- jured in political disturbances in four German cities last night. The Republican flag is taboo throughout the Reich with the old Imperial flag and Nazi flag hoisted over public buildings,