The Daily Alaska empire Newspaper, April 13, 1933, Page 1

THE DAILY ALASKA EMPIRE/ \’OL XLI NO. 6313. JUNEAU, ALASKA, THURSDAY, APRIL 13, 1933. MEMBER OF ASSOCIATED PRESS PRICE TEN CE.NTS PRESIDENT PLANS T0 HELP SMALL HOME OWNERS NOW WEALTH MAY BE SEIZED TO GIVE AID T0 JOBLESS Governor Olson Makes Starting Statement to Group of Marchers STATE’S SENATORS ARE UNDER ATTACK Varied Reactions Already Result from Remarks Made, State House ST. PAUL, Minn., April 13.—State enators gave varied reactions Go Floyd B. Olson's threat to invoke martial law and seizure of wealth to provide relief for unem- residents, he described as d members of the r Party. Olson, speaking to a group of relief marchers, from the State Ho teps, said the Legislature, particularly the Senate, has been delaying measures to eliminate suf- fering. Threat Made Gov. Olson said that if the law- s do not provide suficient re- would “invoke the powers i and declare martial law, wealth and provide relief.” Most Extracrdinary One State Senator said the Sen- as cooly and firmly proceed- protect the rights of citi- zens as far as possible, but refused tampeded by premature and seize nator said the Gover- address was one of the most anding statements ever made a ‘Governor in this country. ALASKA TOWN HIT BY GALE; DAMAGE DONE Rain Also T)Tenches Pet- ersburg, on Wran- gell Narrows PETERSBURG, Alaska, April 13. —A 35-mile an hour gale struck this Wrangell Narrows metropolis this morning at 5 o'clock causing at least $1,000 worth of damage to the Arctic Hotel alone when the roofing was torn off from this three-story building. scattered over the main street. A heavy down pour of rain drenched the rooms causing the tenants to vacate. A temporary roof is being com- pleted today. § e GERMANY AND VATIGAN HAVE AN AGREEMENT Concordat Results from Conversations Being Held in Rome VATICAN CITY, Ttaly, April 13. --A concordat between the Vatican and Germany is the result of the conversations being held between Pope Pius the Eleventh, Cardinal Pacelli, Papal Secretary of State, and Vice-Chancellor Franz von Pa- pen. Prelates said the concordat would embody the existing concordats with Prussia, Bavaria and Baden. The new concordat would regu- late the affairs of the Church and State but in no way mentions the Hitlerites, Catholic Center Party, is to enter the political situation in the Reich. Von Papen and his wife were given a private audience and ac- corded formal honors, 458! —,———— Delinguent taxes have caused more than 2,000,000 acres of land to be transferred to the state from land owners in Michigan, Pieces were| Officor Tells o Ass aboard. ed Press telephoto of Lieut. Comdr. H. V. Wiley, rescued officer of the Akren, in Brocklyn, N his firet interview following the sea crash i Akron Crash Y., naval hespital as he gave the dirigible with 76 Remnant of Dmglble Dlsastor Asscciated Press telephoto of McDolugall at Staten Island, N. Y., displaying a piece of wreckage of the dirigible Akron. This battered bit of the giant airship, pick- ed up at sea, was described as duraluminum wrapped in kapoc. Ensign Edward Eve on the Cutter SENATE PASSES FOUR MEASURES IN BRIEF TIME Anchorage Radio Subsidy| Is One of Two Bills Passing This A.M. In a two-hour session today, the Senate passed two joint memorials| and two bills, all originating in} the upper house, and a joint xe::o-[ lution from the House. It devoted about an hour to reading and dis- cussing Walker’s measure to create a Board of Administration, a sort| of gubernatorial cabinet, and con-} tinued it on the file for further consideration. Two new bills weré introduced, bringing the session's total up to 72, and one joint memorial. considered five bills in second read- ing, all except one, the Walker Board of Administation bill, ordered advanced on the calendar| for final action tomorrow. Passes Shattuck Bill It passed the Shattuck measure; defining the legal status of illegiti- mate children; a memorial urging extension of the homestead laws to fox islands in Alaska; Bragaw's bill to provide for a subsidy of $5,000 for the Anchorage radio| broadcaster for the next two years; and a memorial urging commercial (ing from 100 per cent to almost was| MINE TAX BILL 'BOOSTS RATE ' ON NET INCOME Proposed Advance in Green Measure Aver- ages Over 100% | | A measure providing for an in- crease in the taxes on mines rang- 300 per cent was introduced in the| House today by Representative Green, Hyder. It was referred to the Ways and Means Committee. | The measure increases from one to two per cent the rate on net in- comes from mines amounting to from $10,000 to $500,000; from one and one-half to three per cent from $500,000 to $1,000,000; and| It| from one and three-fourths to five | per cent on incomes in excess of 1$1,000,000. Other Measures The House passed two House bills and one memorial today, and | |without a dissenting vote enacted House Resolution No. 1; by Mr. Green, embodying the free silver memorial defeated earlier this week Iin the Senate. | Taylor's measure to reguire pub- lic utility companies to pay six per cent interest on money depos- ited for meters, other appliances/ and service, was advanced on U OPPOSITION TO FARM PROGRAM IS MANIFESTED Effort Will Be Made to Cut Production Costs from Bill PRICE FIXING PLAN STARTS CONTROVERSY Currency Expansion Advo- cates Present Their Plan of Action BULLETIN—Washington, Apr. 13.—By six votes, party lines ig- nored, the Senate late this aft- erncon handed the Administra- tion its first defeat, inserting cost of production guarantee into the big farm relief bill. By a combination of Democratic and Republican Independents the Senate passed the proposal by a vote of 47 to 41 in the face of repeatedly registered Admin- istration disapproval, This was followed by approv- al by the House of the Farm Mortgage Refinancing section of the bill, after Speaker Rainey blocked an attempt to substi- tute a currency inflation plan for the entire plan. WASHINGTON, April 13.—An ef-! fort to cut from the Roosevelt’ Farm Program its provisions 6.7 guaranteeing the farmer production costs, is planned by a Senate| Democratic stalwart. While currency expansion advo-| cates presented their,initial infla-| tionary proposal, Senator Elmer Thomas, of Oklahoma, proposed an additional section to the bill which| would vest broad powers to Presi-| dent Roosevelt to expand currency/ and permit free coinage of silver and reduce the gold content in the dollar. Big Test Looms The Administration forces are facing one of the biggest tests on farm relief as the Senate approach- which Secretary of Agriculture today. Ruth Owen Is Quickly Confirmed First Woman Named to U.| S. Diplomatic Corps Approved ‘WASHINGTON, April 13.—The WASHINGTON, Aprli 13.—Direct effort to reduce the principal and; interest of the farmer's mortgage | debt is envisaged in the adminis- tration project to refinance this indebtedness. ‘The story, taking a hypothetical case, is something like this: Back in 1919 John Smith, farmer, mort- gaged his then $20,000 farm for $10,000, and promised to pay 3700 a year interest on it. Both the insurance company which made the loan and Smith | tigured they had made a fair deal Prices were high, they reasoned, certainly would not drop enough to' ‘endanger either party. Neither were taxes unduly burdensome. | But Prices Collapsed But prices did collapse. In 1921 ' they were half as high as in 1919. Smith was in some dififculty, but felt there propably would be a re- ! covery—and by 1925 prices had moved up about 20 per cent. It was only a breathing spell. (Prices started down, moved up m} the prosperous year of 1928 and | 1929, slumped in 1930, slipped m, 1931, tobogganed in 1932, dipped in | 11933, | The mortgage got heavier and | heavier as Smith’s income from the | things he sold declined. Up to 1930 | he had been able by dint of care- ful economy to keep the therest| paid and to reduce the marmge} |to $8,500. But the last price drop was too great. He was in danger losing his farm. He could not flght‘ |the down sweep of the price curve. | WHEN UNCLE SJUST ONE INCOME OF MORTGAGED give the mortgage-holder a bond amount scaled down. JUNEAU 1S TO ) {xe felt that he was not responsi- w%e for the price drop, nor!nruxea, which were taking an increasing share of his diminished income.| | With his neighbors he organized Lm prevent foreclosure sales, dcmand- |ed government relief Farm Value Away Off | In many cases his farm had vn» tually no sale value, whatever its appraised worth might be. The in- surance company did not wish to foreclose, probably could not sell | the farm for the face value of the ! mortgage if it did. The huge in-| Clean-up, Paint-up and Repair vestment of the insurance company |Week will officially start April 16 and other lenders in farm real and continue through to April 22, |estate was frozen. |acording to an anouncement made | Now an unfreezing process is pro- today by John W. Jones, President ALSO PAINT-UP (Week Is De51gnated by C. | of C. — Wickersham Praises Roosevelt 1ed a vote on the price fixing p!an:pos@d to help both sides of the of the Juneau Chamber of Com- !mortgage agreement. First, the merce, at the weekly meeling in | Wallace wants stricken out. There government proposes to rvestrict Bailey's Cafe. is a possibility the Senate may, act on this question sometime late farm production to raise prices;| Mayor I. Goldstein concurred in /this announcement and will fol- |low through with the system which (Continued on Page Seven) e, Cooperation Requested f‘ound Gullty of Violation nelp in getiing Juneau tidy and ‘The Mayor and Chamber of Com- merce ask for the cooperation of all attractive for the spring and sum- of Offchlal Secrefs: @ B ct \was inaugurated in previous terms, }BRIT {of hauling away all rubbish and de- (individuals, as well as schools, churches and organizations to make ‘Wickersham Honored Former Delegate to Congress LONDON, April 13.—Lieut. Nor- |man Baille Stewart, convicted by a bris free during the Clean-up week. | | - IS CONVICTE 'the week a successful one, and to James Wickersham was the honored court martial of violation of the guest at the luncheon today, and in response to President Jones' re- F (},rm M értgagé .Re‘financir;giplan for Pu rimse ) Of Seeking Lower Principal and Also Intere: oY O R b . ' ) h 8,000:22 - 2| — THE MORTGAGE PEOBLEM- TOTAL FARM MORTGAGE DEBT %8,500,000.000 ANNUAL INTEREST ON THIS DEBT $500.000,000 ANNUAL TAXES ON MORTGAGED FARMS % 200,000,000 Here's a hypothetical case, showing how Uncle Sam’s interven-, tion in the confused farm mortgage situation might work out under the administration-sponsored plan to refinance such obligations, CLEAN-UP AND-' AT SEATTLE ON Senate confirmed the appointment Official Secrets Act, has been dis- of Ruth Bryan Owen to be Mmls-}honmbly discharged from the ter to Denmark, a few hours after jarmy and is to also serve five years President Roosevelt sent her nomi- ln Ppenal servitude. nation to that body. ‘Stewart was charged with ten Mrs. Owen is the first woman to ‘oount.s in selling military secrets ever be named to the United States to foreign agents. He was convict- Diplomatic Corps. ed on all but three lesser counts. ‘Roosevelt Domestic Program Summed Up in Three Items; Is Being Written Into Law By BYRON PRICE (Chief of Bureau, The Associated Press, Washington) Events at 'Washington have now |gone far enough to afford a view lof the Roosevelt domestic program |as a whole, and of the interesting Eand illuminating manner in which it is being written- into law. The program itself may be epito- |mized in three items: | 1. A balanced budget, Itating drastie Mernmer\tA' ganization. i 2. Close rexuhtkm of banking, finance and business generally, with ,emergency supervision of such hard jhit ndustries as agriculture and necessi= reor- ‘he [the railroads. 3. Increased attention to the re- Stated thus, the program seems acceptable to almost everyone. Lit- tle criticism is heard in Congress of the general principles involved. It is only when details are consid- ered that dispute arises. The result has been that Con- gress, while approving loudly the purposes sought, edges away from Plenty of ‘Outs’ Its disposition to leave a few ‘apparent time and again during the to say he intended to vote to “stand committing itself on specific means. | convenlent bridges behind has been | quest made a short talk which met with enthusiastic applause. Rcosevelt Courageous “I am in favor generally with President Roosevelt's program,” said Judge Wickersham. “He is earnest, ihonest, courageous; he has come forward with a program which he thinks will better conditions and is promptly and vigorously putting it into effect. I feel that everyone should give both President Roose- velt and Congress full-hearted en- ergetic support. We might mnot agree with some of the legislation but it is the duty of every man throughout the nation, and every Alaskan to give the administration levery support they think necessary to pass laws they think necessary to better conditions. Broad Views “Do not have too local a view,” Judge Wickersham continued. “It jis well to remember that whatever helps the country as a whole will also help Alaska.” ! The Judge also urged that the Chamber and all citizens suport and cooperate fully with the mnew Delegate, Anthony J. Dimond, | pointing out that he was in a stra- \tegic position with a party major- ity in both House and Senate, and a Democratic President as well, In his initial speech in the House, ! 1 STEPS IN FARMS $2,000,000.000 in return for a mortgage with the TROY ARRIVES HIS WAY NORTH Crowd of Well-Wishers Greet Him — Speaks Tonight at Banquet | SEATTLE, April 13. — Jjohn W.| Troy, Designate Governor of Al-| aska, afrived here by plane last night from Oakland and was greet- ed at the Boeing Field by a crowd of well-wishers including Chamber of Commerce officials. Mr. Troy said he would wait un- til he returns to Alaska before he announces a program, “but I will say the National Administration is friendly to Alaska and understands its problems. Alaska is just em- barking on what may prove to be one of the greatest eras in her development.” The new Governor will speak to- night with Gov. Clarence D. Mar- tin, of the State of Washington, at a Jefferson-Roosevelt banquet here and he expects to fly norti tomorrow. ALASKA HASN'T FALLEN FOR 3. BEER SAYS POE Internal Revenue Collector Releases Figures on License Money TACOMA, Wash., April 13.—Alas- |ka has not gone in a big way to 13.2 percent beer, figures released by Burns Poe, Collector of Internal Revenue, revealed. While reporting The Washington- Alaska District has contributed more than $25000 in government licenses, Poe said the money came 1almost entirely from Washington as Alaska has no breweries and so IREFINANCING OF MORTGAGES IS PROPOSED [Roosevelt Submits Special Message to Congress with Bill SAYS LEGISLATION STRONGLY DESIRED Special Saf@irds Should Be Thrown Around Home Owners WASHINGTON, April 13.—Pres- ident Roosevelt today in a special message to Congress, added ¢to his emergency program with a proposal for refinancing mortgages on small homes. The President asked legislation to permit of readjustment -of the existing mortgage debts together with postponement of both interest and principal paymens in cases of extreme need. The President suggested action along the same lines as in refinanc- ing of agricultural mortgages, which is now before Congress, with bond issues to meet the needs. The legislation proposed would — |effect owners of homes of $10,000 and less in value. Bill Introduced A bill was immediately introduced in the Senate and House to carry out the plans for reconditioning. President Roosevelt, in his mes- sage, emphasized that he regards the legislation a declaration of the National policy requiring that “Spe- cial safeguards should be thrown around home ownership and as a guarantee of social and economic stability and creating a permanent system of Federal Savings Loan Associations as well in the emerg- ency. Form Corporation “A two billion dollar corporation to refinance home mortgages would be authorized under the bill and it would also authorize a subscrip- (tion of $100,000,000 by the Govern- ment for setting up the permanent system of Federal Associations and provide a mutual thrift institution in which people may place their savings, invest funds and provide for the financing of ‘homes.” — T0 MAKE EFFORT T0 GET NATIONS INTO AGREEMENT Premier_l\KcDonald Ex- plains Purposes of Com- ing Tnp to America LONDON, April 13. — British Prime Minister Ramsay MacDonald, during a Foreign Affairs debate, in the House of Commons today, out- lined the objective of his trip to Washington as an attempt to bring the nations of the world closer to- gether, not in alliances, but in a spirit, to secure a cooperative ef- fort for the solution of the econ- omic and political problem. To Leave U. S. Alone The Prime Minister said he would never try to persuade America to do otherwise than carry out the historic policy of staying clear of European entanglement and the “only possible exception would be in the event of a world agreement, quite clearly defined, regarding the aggressor and America having |previously been a party to that | agreement.” Threatening Influences The Prime Minister further de- clared the world court not be in- far, but few requests have been ! |made for other Federal licenses. NO TEST FOR MACON TODAY AKRON, Ohio, April 13.—Stormy weather today postponed the tests influences active in Europe today. We must not allow them to ob= struct our progress toward disarma= ment but we must consider condi= | tions and be very careful at the | same time as to how these emdl— tions are to operate.” ———e e different to “certain threatening by the President,” although he Mr. Wickersham declared Mr. Di- would prefer this and that provis- {mond was alloted ten minutes, but fishing in the Kuskokwim and calendar under suspended rules and (Continued on Page Eight) (Continued on Page Eight) {lief situation, through public works and federal appropriations (Continued on Page Six) numerous members of the House (Continued on Page Eight) 'scheduled for the big dirigible] The British railway industry is Macon, of the Navy Department.|claimed to be the largest p ——— undertaking in the country A quail hunters’ club has been|the equivalent at par of &5500. organized at Bowling Green, Ky. 000,000 invested.