The Daily Alaska empire Newspaper, November 9, 1933, Page 1

- THE DAILY ALASKA EMPIRE “ALL THE NEWS ALL THE TIME” VOL. XLIIL, NO. 6491 JUNEAU, ALASKA, THURSDAY, NOVEMBER 9, 1933. MEMBER OF ASSOCIATED PRESS SIXTEEN PAGES — BATTLE INHAVANA; THREATS ARE MADE TAMMANY IS PREPARING TO FIGHT HARDER Wigwam Chief Issues Statement Concerning Future of Party LAGUARDIA IS GOING TO TAKE VACATION Maynr -elect of Metropolis Plans Many Funda- mental Changes NEW YORK, Nov 9.—The Tam- many Tiger today surveyed the wreckage left by Mayor-Elect Fio- relle LaGuardia’'s smashing Fusion victory and marshalled its shat-| tered forces to see if the damage could be repalred. | There is prospect of a bitter | fight in the city’s Democratic ranks. This is seen in a statement issued by John Curry, Tammany Chief, accusing James A. Farley,| Postmaster General, of disrupting| the party in the city and assert-| ing that if Farley remained in the party’s office, the Democrats could | not look for victory in mext year's| election. | Plans of Fusionists Meanwhile the Fusionists are preparing to strengthen their po- sition by forming a permanent or- ganization. Mayor-Elect LaGuardia plans to take a vacation to recuperate af- ter his hard campaign. He said| graft must go and expenditures cut to the bone. He also aims to| revive the city charter by abolish-| ing the Board of Aldermen and; making other fundamental chang-| es. | City To Be Orderly { Concerning dissrders at the polls on Tuesday, the Mayor-Elect said that during the next four years! the city will be so quiet and or-| derly that little children will be| able to skip rope outside of the polling place: —_—a——— 0PPOSITION IS NOT VOICED T0 CHANNEL BRIDGE Lift-Span Type, However, Is Suggested as More Suited Local Needs [ Before an audience that almost| filled the floor and galleries of; the House of Representatives and included Acting Gov. E. W. Grif- fin, and other Territorial and Federal officials, Mayor I Gold- stein, representatives of the Cham- ber of Commerce of Juneau and Douglas and the hearing on the application of the Territory for a permit to construct a fixed-span; bridge over Gastineau Channel be- tween this city and Douglas was held yesterday afternoon by Lieut.! John R. Noyes. It was a two-hour session and was marked by the almost total absence of formal objection to the proposed structure so far as pres-| ent and prospective future naviga-| | tion is concerned. However, it was suggested that it might be more advisable to erect a lift- span bridge to take care of possi- ble future development. Sound Out Sentiment The closest thing to opposition | came from the Juneau Lumber| Mills, represented by C. T. Gard- ner, who said that his firm had two vessels engaged in moving log rafts to and from a log storage| in the basin above the proposed bridge site which would be handi- capped to a degree by the erection of a fixed span structure unless it had a 50-foot perpendicular clearance at mean high water. The| proposed bridge has a 43-foot clearance. He submitted two alternative plans for a street level structure| with o lift-span. These, however,| Lieut. Noyes pointed out, could| not be considered under the pres-| ent application. B. F. Heintzleman Asst. Regional Forester, and R. J. Sommers, local engineer and former | Highway Engineer of the Terri- tory, both favored the lift-span (Continued on Page Seven) Trial of Touhy Gangstérs Today for Hamm K idnaping Is New ‘Lindbergh Law’ Test s o The “] Willie Sharkey, Eddie M(‘Fad:len, (left te right), who face trial teday in St. Paul for the kidnaping of William Hamm, Jr. (extreme right), wealthy brewer. 1 PRESIDENT HAS NEW PROGRAM: AIDS MILLIONS Civil Works Administra- tion Created with $400,000,000 WASHINGTON, Nov. 9.—Presi- dent Roosevelt announces the ex- pansion of the Federal Relief pro- gram aimed at taking 4,000,000 men off public relief rolls. The plans involve creation of a Civil Works Administration and the use of $400,000,000 of the Pub- lic Works funds and through these | funds the Administration intends nalia in their car. to increase part time work for men now on the relief rolls so they may be put on a selfsustaining basis. a 30-hour week by December 15. One million and one half fam ies taken from the relief rolls since last April and other recov- ’ery signs are noted at the White| both charges coming under the‘\ House. ALASKA IS INCLUDED IN PLANS FOR NEW SET-UP The inclusion of Alaska in the President’s plans for the new set- up was indicated in official ad- vices received today by C. H. Flory, | | Regional Forester, United States Forest Service, which has chargze of the ECW program in the Ter- ritory. a schedule of expansion to Wash- ington not later than next Mon- day. It is planned, said Mr. Flory, to| submit a program of work cover- ing National Forests, other pub- lic lands and general projects fhat have public benefits. He was ask- ed to report on the number of men that could be put to work between November 15 and December 15, employment to continue at least, to February 15, and thereafter if Congress appropriates the neces- sary funds. Under the Forest Service alone, throughout the country, it is planned to put 500,000 additional men to work. Projects will include trail work such as is now being done under the ECW program in the Territory, clearing stream channels, reinforcing banks of mi- nor streams, clearing on Forest Highway localities, construction o roads other than highways, tim- ber stand improvement,: snag-fell- ing, and other classes of public work adapted to manual labor. .- Perfect ‘Gas Mask COPENHAGEN—Danish War Of- fice experts have perfected a gas mask that is so good that several foreign countries, including France and a South American republic, have ordered large quantities. Also a campaign has been started with the slogan: “Every Dane own a gas mask,” dbergh” law to “curb kidnapers has reached out after Four million men will be put on| He was asked to submit| August Schaefer and Roger Touhy ST. PAUL, Minn, Nov. 9—A routine arrest by a small-town Wisconsin constable was responsi- | ble indirectly for bringing four members of the Touhy gang into| Federal Court here today for a second major test of the “Lind- bergh” kidnaping law. This quartet — Roger Touhy, Gus Schaefer, Eddie McFadden and | "Wlllie Sharkey—will be tried for the $100,000 abduction last June of William Hamm, Jr, wealthy St. Paul brewer. | | Long Hunted For Crimes | Sought for months by metro-| politan police in connection with a variety of racket crimes, the| Touhy foresome can trade its pre-| | dicament to a minor auto acci- dent near Elkhorn, Wis, last July | 22 and the prompt action of Police Chief Harry Ward in locking the four men up when he found rope, tape, gauze and other parapher- | Their possession of $1200 in| $10 bills caused police to link the| men with the Hamm abduction. Hamm was held nearly four days. The indictments under which | the men are held charge transpor- | tation in interstate commerce of a kidnaped person held for ran- }som, and conspiracy to that end, “Lindbergh” law, which was in-| voked also in the conviction of| Harvey Bailey, Albert Bafes, and| | George “Machine Gun” Kelly, in| the Urschel kidnaping. Father Was Policeman Six brothers whose father, | James, was a policeman 25 years/ ago, formed the nucleus for the! | sang. | John and Joseph Touhy were ] slain in warfare with the Capone| gang, according to underworld le: | gend, with Robert assuming lead ership. In the summer of 1932 occurred the first of several machine-gun killings for which Touhy gang members were sought. | Some authorities also asserted| the Touhy outfit engineered the kidaping of John Factor’s son, Jerome, and a few weeks later of kidnaping “Jake the Barbar,” him- | self. A more recent entanglement of the Touhys' affairs came when| they were sought during investi- { gation of the slaying of Gus Win- ;kler. ARE DRINKING " HIGHBALLS IN - BIG FA CITY Liquor Reported Flowing Freely Over Bars— No Opposition | CHICAGO, TMi, Nov. 9.—The | Chicago Daily News reports to- day that highballs, whiskey and other pre-prohibition drinks are flowing freely and openly over Prohibition Is Still Here, Warns Government WASHINGTON, Nov. 9— The rattle of cocktail shakers and glasses sounded an abli- gato from coast to coast and speakeasies’s bars blossomed out to bask in the warmth of repeal election results but the Government warned “the law is still there and the policy of the Department of Justice is to enforce it until legally rati- fied.” Advices received here, how- ever, are that nowhere have authorities taken any actions to move against those who jumped the repeal gun. —e— BRADLEY RAPS TWO ROOSEVELT POLICIES HERE Alaska Juneau President Criticises Managed Cur- rency and N. R. A Two of the major policies of: the Roosevelt Administration were dis- cussed at some length before the Chamber of Commerce by P. R. Bradley, President of the Alaska Juneau Gold Mining Company, Who was inclined to be skeptical of the workability and practicability of both. He dealt first with managed currency and last with the NRA system. The former he branded as “silly and futile,” and the second as probably due to fail. Rebellion, he said, has broken out against NRA and the agitation against it is in- creasing. The Gold Experiment Currency management through manipulation of the price of gold, he believed, would not be success- ful. He described the several steps taken by the President in the evo- lution of this program. The first was taking the country off the gold standard April 20, last, at which time an embargo against the shipment of gold abroad was declared. This had the immediate effect of cheapening the price of the American dollar and raising commodity prices. This naturally raised the price of gold but not its value which remained at $20.67 per ounce at home. . The American producer of gold demanded the right to sell his pro- duct at the world price and on a world market. In answer to that sentiment, on July 27, the Attor- ney General of the United States ruled that gold ores and concen- trates were not covered by the em- bargo. This, however, was insuifi- cient to cover the situation and on August 12, Mr. Cummings in a detailed opinion added precipitates and amalgam to the exempt list Gold Exodus Begins The producers then stopped pro- ducing bullion and began to ship their gold in exempt form out of the country. To stop this, on Aug- ust 29, by authority of Presidential roclamation, the Treasury Depart- ment began to purchase domestic gold for consignment to foreign countries. That practice was maintained until October 22, when another Executive Order was issued author- izing the Reconstruction Finance Corporation to fix the price for and purchase all of the domestic production, thus further debasing the dollar value and raising the price of commodities. This, how- ever, did not work fully as 3 countries still maintained their own ideas about dollar values. So, on October 27, the Recon- struction Finance Corporation was authorized by the President to buy and sell both domestic and foreign gold at its own prices the purpose being to drive down the dollar value and lift commodity prices. Is Not Practical In Mr. Bradley's opinion this I8 not practical. In fact, he declared: “It’s just as silly and futile as the other steps in the program.” As he sees the results, foreign countries will act in a similar man- ner as regards their own currencies and neutralize any effect the Am- erican policy might have. There is nothing to keep Europe from doing the same thing and nobody will gain anything. It is all “more or less a lot of hooey,” he asserted. The general idea, he pointed out, is to bring up commodity prices bars without interference from the police. " (Continued on Page Eight) ROOSEVELT I NOW PLANNING LIQUOR TAXES Problem Being Discussed at White House—Meet- ing Set for Friday KENTUCKY BELIEVED TO BE IN WET RANKS Territories Will Be Per- mitted to Engage in | Traffic as Outlined WASHINGTON, Nov. 9.—Presi- dent Roosevelt is turning his at- tention to the liquor traffic prob- lem now that thirty-seven states, one more than necessary of three- fourths, have voted to take the Eighteenth Amendment from the Constitution. Kentucky In Line Kentucky is the last state to join the wet parade, it is believed. | The votes were being counted yes- terday and today repeal leads by 21,000 with only one-fifth of the precincts yet to be counted. The race is however nip and tuck in the rural districts but the wets are confident and if they continue to lead, repeal will be accomplish- ed by December 5; otherwise on December 6. Tax Program The program for tax legislation to be submitted to Congress along with the repeal of the Volstead Act, will permit of the sale of dis- tillates in the District of Colum- bia and the Territories. The pro- | gram will be considered at a meet- ing of the department representa- tives at the White House tomor- row. This program includes plans to keep arid those states not vot- ing to ratify repeal and may re- vive sending the much-feared pre- Prohibition revenue agents into moonshine areas. e e,———— MORE ALCOHOL IN BEER, WINES NOW FORECAST Upward Revision Indicated, Present 3.2 Percentage Dies with Repeal WASHINGTON, Nov. 9.—An up- ward revision of the alcoholic con-| tents of beer, wines and ales, co- incident with the demise of Pro-| hibition on December 5 or Decem- | ber 6, is forecast in official c:r-[ cles. | The law, setting 3.2 percentage limitation of alcohol in these bev- erages, dies with repeal, officials said. Some producers are already in- creasing the alcoholic content of their beverages to pre-Prohibition standards and storing the product. Pre-Prohibition alcoholic con- tent of some wines, ales, stouts and porters ranged upward to 14 percent. —— NEW ORLEANS SPEAKEASIES IN OPERATION Doors Open Wide in Busi- ness Section—Old Fav- orites Are Served NEW ORLEANS, Nov. 9.—Speak- easies here have quit pretending they are something else, have| moved their bars out of alleyways| onto the principal downtown streets, opened their doors wide without a blush or whisper and are serving again those who wish to toast Prohibition repeal with drinks made famous by New Or-| leans. Scores of such establishments operated openly yesterday in the business district and old favorite drinks were ready for customers who lined in front of the bars and drank their fill, Four Puzzlin g Pfobltr‘m; Are CUBAN REBELS to Appear in Talks Between | PLAN TO SACK Litvinoff and U. S. President| i 2} President Roosevelt and Maxim Litvinoff, Commissar of Foreign Affairs for the Union of Socialist Sc iet Republics, are shown as they probably are confronting each other, ¢itting down at a desk in the White House discussing the issues which have kept their governments apart. By CARL C. CRANMER WASHINGTON, Nov. 9.—Four questions are expected to predom- inate as Maxim Litvinoff, Russian Commissar of Foreign Affairs, and President Roosevelt get down to brass tacks in their conversations at the White House. Three relate to barriers which in the past have prevented recog- nition. They are alleged Russian subversive propaganda, repudiated debts and confiscated property of American investors, Claims in High Figures The other question has to do with future trade relations, prin- cipally long-term credits to allow Russia to purchase the products of American farms and factories which she needs. American ciaims, governmental| and private, against the Russian government, total about $625,000,~ 000. ‘The governmental claim is a loan of $187,000,000, plus interest. It was made to, the Kerensky re- gime just before the Bolshevist| revolution when America and the| Allies were striving to keep Rus- sia in the war and prevent the freeing of German troops from the | Eastern front. This debt, along with all debts; of the Czarist regime, was repud-j ited by the Soviets early in 1918.! Hull Has Secret File i Private claims are in two parts,| $86,000,000 in bond issues floated| among private investors in New York In 1916 by the Czarist re- gime, and approximately $350,000,-} 000 of American investments in Russia that were confiscated. These latter are kept in a con- fidential file at the State Depart- ment, but they are known fo in- clude many large items by Amer-| icans doing business in Russia at| the time of the revolution. A favorite American method in; the past of handling such claims' has been to set up a commission to work out solutions with for- eign representatives. But is it not known whether Litvinoff is prepared to offer any such solu-! tion. 1 In dealing with other mations| Russia in some cases has agreed to pay bonuses or high interest on new business, specifying that the extra money be applied against debts and confiscations. | German Debts Figure | When it comes to the govern- ment debt, two points are likely to be stressed by the Russian| Commissar. The Soviets always/ have justified repudiation of the Crarist debts by a notice issued by lealiers of the abortive revo-| lution of 1905 in which the capi- talistic nations were warned that future obligations of the Czar would not be recognized. A second point is that in the treaty of Brest-Litovsk negotiated between Russia and Germany in March, 1918, no settlement of debts to Germany was reached and it. was agreed that any settiement with other nations would entitle Germany to equal terms, The So-' | i | {as Russia bought viet Union never recognized any such debts. On the other hand, a cardinal principle of American foreign pol- icy since the war has be:n to ex- act some sort of settlement of obligations even though consider- ably scaled down. Should Roosevelt demand a guar- antece that Soviet diplomatic rep- resentatives in this country es- chew propaganda activities, it prob- ably would be granted on a mutual basis. The Moscow government has given similar promises to oth- er governments and, in fact, has held that it is no more responsi- ble for the foreign campaigns of the Third Internationale than are other governments for the actions of political publicity organiza- tions domiciled within their bor- ders. Credit Buys—Cash Sales Concerning credits for trade, which Department of Commerce officials estimate might reach $100,000,000 a year, it is consid- ered likely that the Reconstruc- tion Finance Corporation would be asked to advance the necessary money. It would be deposited in this country and drawn against goods here American purchases in Russia, if that country follows her usual practice, would be for cash. CONFERENCES YESTERDAY WASHINGTON, Nov. 9.—Com- missar Litvinoff held a conference yesterday forenoon with Secretary of State Hull, had luncheon the White House with President Roosevelt, then a second confer- | ence in the afternoon with Secre- tary Hull The Pr moved from amid mor understoc ognition ident and Commissar ceremony to Dusiness dictions which are indicate quick rec- DOLLAR DROPS: LOW LEVEL IS REACHED TODAY Price of Gold Is Set by Washington Adminis- tration at $32.76 WASHINGTON, Nov. 9.— The Administration today watched its gold operations club the dollar to a record low level then added one dime to its price for gold. London dispatches told of an overnight drop of 4% cents in the exchange value of the dollar as against the pound opening at 498'.. As trading progressed the dollar fell to .501': in London. The gold price today is $32.76 an ounce,\ 52 cents above the Lon- don figure at U, S, PROPERTY. |Broadcast Warning Sent Out from Stronghold This Morning REVOLUTION FORCE ‘ IS STRENGTHENED Government Troops Re- | ported Making Artil- | lery Attack on Castle | BULLETIN — HAVANA, [Nov. 9.—The rebel defenders 'in Atares Castle, fighting off 'the Government artillery and rifle fire, hoisted the white {flag over the battlements this afternoon but it was quickly ' hauled down again and firing ! continued for a few minutes more then suddenly ceased and quiet reigned until 3:30 !o’clock when firing was re=- |sumed heavily for six min« utes then up went the white flag again. 1 Shortly after it was an= nounced the rebels surrends ered. During the fighting Cuban gunboats shelled the old fort« ress and the harbor was raks ed with machine gun fire from Atres. Many are reported killed in the fighting. BULLETIN -— HAVANA, Cuba, Nov. 9. — Early this afternoon the leaders of the ABC, Radical and Secret Revolutionary Society, broad- cast a warning they intend to ack American property and provoke United States inter- vention if their two-day bat- tle for control of the Govern- ment is not decided by 3 o'clock this afternoon. The public was warned to stay off the streets as the ABC intended to fly airplanes over the city and bomb the Presidential Palace. The rebels specified 3 o'clock as the moment for the dynamiting of all vehicles found on the streets. Following the broad cast warning, artillery went into (Continued on Page ————— SMITH DENIES BORROWING TO GAMBLE, STOCKS Money Secured on Loan Was for Specific Purpose, Former Governor Says NEW YORK, Nov. 9. — Former Governor Alfred E .Smith declared in a statement last night that a syndicate composed only of di~ rectors of the Country Trust Com= pany, of which he was Chairman of the Board, borrowed money in 1929 simply to “buy stock of our own trust company.” Smith emphatically denied any implication in the money borrowed was for the purpose of gambling on the stock market and further said the loan had been repaid in full. Until yesterday, Smith said, neither he nor any member of the syndicate knew the Chase National Bank participated in the loans. The information that Smith's company borrowed from the Chase National Bank came up in the Senate com= I mittee’s investigation of the stock ‘exchange in Washington yesterday, =