The Daily Alaska empire Newspaper, February 23, 1934, Page 1

THE DAILY ALASKA EMPIRE “ALL THE NEWS ALL THE TIME” JUNEAU, ALASKA, FRIDAY, FEBRUARY 23, 1934. VOL. XLIIL, NO. 6582. MEMBER OF ASSOCIATED PRESS S PRICE TEN CENTS '3 GANGSTERS CONVICTED, KIDNAPING ~ OPPOSITION TO BREMER POSES AFTER RELEASE Principal;; in Trial for Factor Ki(hm ping ‘RUGER fiUHY, 18 ’ ARMY CARRYING MAIL EXPECTED Death of Four Fliers, Loss! of Five Planes, Has | Started Trouble \ SR | WASHINGTON, TFeb. 23.— N'nL‘ daunted by four fliers being killed due to storms, one wred, and five planes de- during the past week in| ction with the air mail task,| Army’s intention of pushing | the mail through according to| program, has started a storm in| the House. ! Opp: 1 has been aroused to the my's air mail rrying at-| el and plans are being made | to put the air mail pouches back in private planes. Republican Opposition is opposition comes from Re- n quarters where it is hint when the Emergency Air| is called up in the robably today, an amend- be offered. If approved | the Army off the mali| quickly. The amendment ho,\’-j faces plenty of trouble. mergency Air Mail Bill ides merely for the of funds for equipment for temporary Army hauling of air mail. Det ever The e will be limited to one hour and one-half. The bill is, however, open to amendments and expectations are that many will be ANOTHER PLANE DOWN | EVELAND, Ohio, Feb. 23—| her armygplene. assigged.to the | mail service crashed in bad | eather today near Piedmont. The | Norman Burnett, took to the| rachute but his leg was frac- ured. The plane was flying emp-} y on the run to Cleveland from | Chicago. 1Y GOVERNORS | SEEK INQUIRY, A B HOLDINGS -New England Executives| Claim Competition Is Being Lessened | rEfe { Feb. 23.—Inves-| into the holdings of the ylvania Railroad and the vania Road Corporation, the holding company, in New England! railroads, has been ordered by the Interstate Commerce Commission.| e inquiry was ordered on com- | int of six New England Gover- charging holdings of the Penn- sylvania Railroad and the holding | company in the Boston and Maine | Railroad and also New York, New | Haven and Hartford Railroad, have | had the effect of substantially les- sening opposition. e ARMED FORCES IN CONTROL IN C. A REPUBLIC State of Seige Is Declared| in Nicaragua by President MANAGUA, Nicaragua, Feb. 23.| —A state of selge was declared| throughout Nicaragua yesterday by the government following the slay- ing by National Guardsmen of Lhe‘- former rebel leader Gen. Augusto| C. Sandino, his brother Socrates, | and two of his generals. An “abnormal situation” has aris- | en, said President Sacasa, and he| has empowered special authority on| the armed forces to maintain or-| der. ‘ ——eeo——— THOMAS CONFINED TO HOME WITH COLD J. C J. C. Thomas, of the Thomas Hardware Colpany, has been con- fined to his home for the last few days with a severe cold. FOUND TIED O | P T This was the first picture taken of Edward G. Bremer, St. Paul banker, after his return from 22 days in the hands of kidnapers who collected $200,000 ransom. Sent to bed for many hours after his release, he is shown resting at the home of his father, Adolph Bremer, wealihy, brewer. (Associated Press Photo) STOCKS DECLINE IN DULL MARKET AS SESSIONENDS Losses of One to Four Points Recorded Gener- ally After Dull Opening YORK. Feb. 23. After mulling around in a dull, i fashi stocks turned dow the latter part of the ses numerous issues showed lo one to four or more points. Some mild recoveries were made in the last few minutes but the close was heavy. Sales for the day were 2,- 500,000 shares. Secondary bonds were heavy with s of fractions to around a point in many. Brokerage houses were mystif! at the reaction as there was no definite news to account for it other than hearings in Washing- ton on bills for Government regu- lation of speculation. Commodities were generally steady to firm, but wheat lost its morning gains. The pound sterling eased and gold currencies were lightly higher. United Aircraft, and Liggett and Myers were up around a point each. United States Smelting and Re- fining, and Union Pacific were off about five, while Celanese Cor poration, Libby-Owens Glass, Allied Chemical and United States In- dustrial Alcohol lost three or more Armour preferred and Wilson Com- pany were off four points. Others down from one to more than two were American Telephone and Tele- graph, United States Steel, Am- erican Can, Chrysler Motors, Howe Sour¥l, General Motors, Westing house Electric, Case Threshing, Montgomery Ward; Goodyear Rub- ber and Standard Oil of Cali- fornia. NEW CLOSING PRICES TODAY NEW YORK, Feb. 23. — Closing quotation of Al a Juneau mine stock today is 21, American Can 103, American Power and Light 9%, Anaconda 157%, Armour B 2%, Bethlehem Steel 46%, Calumet and Hecla 514, Curtiss-Wright 4%, Fox Films 15, General Motors 39%, In- ternational Harvester 424, Kenne- cott 20%, Montgomery Ward 32%, Packard Molors 6%, Southern Rail- road 33, United States Steel 57%, Ulen Company 3%, United Aircraft 25%, Translux Daylight Pictures 2%. ———————— HOLZHEIMER TO KETCHIKAN W. A. Holzheimer, United States Attorney, who has been in Juneau for the past week investigating the death of Charlie Davis, Sitkoh Bay native, left this morning on the Victoria for Ketchikan, where the United States District Court is holding a session. MINE BUREAU 18 TRANSFERRED NOW WASHINGTON, Feb. 23.— President Roossvelt has or: dered that the Bureau of Mines be transferred from the Department of Com- merce to the Department of the Interior. e®ecenecv o e TRADE GAINS ARE CHECKED DURING WEEK Holiday and Weather Con- ditions Retard Gen- eral Upswing NEW YORK, Feb. 23.—The up- ward trend in trade in effect since the latter part of December was checked this week by the holiday and weather influences, says the weekly summary made by Dun- Bradstreet, Inc. These factor said the review statement, are responsible for the first pause in an uninterrupted advance which has been reassur- ingly present since the first of the year. Snowbound districts, in which transportation was brought to almost a complete halt. a short- er week, on account of the Wash- ington birthday holiday, and com- mencement of ' the demobilization of the CWA forces all contributed to stemming temporarily extension of the gains. While the retardization rate of gain was most pronounced in the country districts, even there the volume was 15 to 30 per cent high- er for the comparative week than one year ago.” e —— MR. AND MES. J. K. JAC AND J. H. SAWYER HERE FROM WINDHAM J. K. Jackson, mining in charge of the Windham Gold Mining Company, Mrs. son and J. H. Sawyer arr Juneau last evening from Windham making the trip in a small boat. They experienced extremely stormy weather on the way north and the trip required several days. - - Ski Jumper Is Fatally Injured Defending Title SALT LAKE CITY, Utah, Feb. 23— Calmer Andreasen, aged 29, Utah state amateur ski champion, was fafally in- jured as he made his last leap in defense of his title in a ski club tournament yesterday aft- erncon. A broken rib punctured a lung and he died enroute to a hospital. engineer Bay VIRGINIA TREE |Second Myster_ious Attack Made on 13-Year-Old . Caroline Musante FREDERICKSBURG, Virginia. | Feb. 23 —Fourteen-year-old Caro- line Musante, sought as a kidnap | vietim, was found tied to a tree today under -circumstances strik- ingly similar to her disappearance a year ago. The girl Her parents scream as away. The girl's father, Leo Musante, said he received a note demand- ing $1,500 or “Caroline’s head will be sent to you.” ‘The girl reporled she had been kidnaped. She was found bound to a tree a few hundred yards from the one to which she had been tied a year ago. When the disappeared yesterday. said they heard her an automobile drove girl was kidnaped a ear ago she said she had been hreatened because she knew too much about another kidnaping. JAPAN EXPECTS 'PEACEFUL PACTS |Foreign Minister Tells Rep- resentatives Ne gotia-~ tions Look Favorable TOKYO, Feb. 22— Confidence | that the diplomatic ¢ between Japan and Russia over fishing grounds in the North Pacific Ocean will be amicably settled shortly was iexpressed in the House of Repre- sentatives yesterday by Koki Hiro-| ta, Foreign Minister | Hirota also said he believed the negotiations with Russia over sale of the Chinese Eastern Railway to Manchukuo would “take a favor- able turn shortly.” EXPENDITURES FOR VETERANS STARTS FIGHT White House Winner First| Tilt—Senate Bloc Stages' | Another Next Week WASHINGTON, Feb. 23— The White House has taken the first round in the duel over veterans'| expenditures but the Senate bmu‘ is looking forward to round two| next Monday which may see a showdown on proposals for bigger benefits and to liberalize the Econ- omy Act. Among the plans advanced are pensions for world war widows and orphans, and extended payments to Spanish-American war veterans. The Senate’s uprising against the Economy Act is assured a closer vote next week than the one lost yesterday when failure resulted in an attempt to restore all ex-sol- diers' reductions made under the Economy Act which would cost $300,000,000. AXELSON FREED AFTER| DAVIS CASE VERDICT Axel Axelsen, held for the past week on an open charge in con- nection with the death two weeks ago of Charlie Davis at Sitkoh Bay, was released from custoday Wednesday night. The coroner’s jury in the Davis case left a chance for the reopen- ing of the investigation by the District Attorney’s office by de- ciding that there were peculiar circumstances surrounding the drowning of the native following| a drinking party and meee in Axelsen’s cabin. e S Michigan State college sent an eight-man track team to the West Virginia university relays at Mor- gantown, 500 miles from East Lan- sing, by bus. WITH RUSSIANS - | | | (center) in C stock fraud charge is pending. ciated Press photo.) Action, Motion, TREASURY WILL BORROW FUNDS ON'LONG TERMS New Policy Being Started by Secretary Morgen- thau DuringMarch WASHINGTON, Feb. 23—Secre- tary of the Treasury Henry Mor- genthau, Jr.,, is turning the Gov- ernment’s financial course toward long term borrowing with a bond issue likely during March. This path was marked clearly yesterday by the announcement of a $75,000,000 offering of six-month bills which will be dated February 28 and sold to the highest bidders. Treasury sales are part of the regular weekly routine, being sold to raise cash to meet maturing is- sues, but the importance of yes- terday’s announcement was that for the first time in many months the new offering was smaller than the issue maturing. The February maturity is $100,000,000. Previously the Treasury borrowed more than the amount that was falling due CROWN PRINCE BECOMES KING OVER BELBIANS pold Before Both Houses in City of Brussels BRUSSELS, Belglum, Feb. 23.— There is a new King of the Bel- gians. Prince Leopold was today enthroned as King Leopold TIL The Prince took the oath to de- fend the constitution before both Houses, Princess Astrid did not pany her husband to the tion as she is expecting e e HALLSON GOES SOUTH accom- Oddie Hallson, former game war- den in the McGrath district, was a southbound passenger on the Victorla from his home in the Kuskokwim district. He will spend a few weeks in the States. Qath Taken Today by Leo-| Momentum! i By BYRON PRICE (Chief of Bureau, The Associated ‘ Press, Washington) No one has summarized and char- | acterized the first ye of the | Roosevelt administration more suc- cinetly than the President him- self, in these words: “We are on our way.” | that Mr. Roosevelt means | are on our way toward recov- ery—and millions of his fellow citizens agree with him. The ordi- nary indices of trade activity show a pretty consistent upturn for the year. Public confidence is unques- tionably stronger than it was on that dark inauguration day last year. The agreement is not uni- versal. Some are disposed to paraphase the old popular song and say: “We are on our way, but where?” They doubt the soundness of the Roose- velt experiments, and the en- during quality of the results. But at any rate, everyone agrees things are moving. To the de- tached observer at Washington that is the outstanding development of the year, whatever it may mean. In February, 1933, dead- lock, stagnation, weariness. In w | mentum. That tells the story. A LIVELIER TEMPO It would take many columns to detail the varying aspects of the change as they affect individual fields of action. Government buildings which a year ago droned with the prosaic routine 6f long- established governmental procedure echo today to the noisy tread of hurrying delegations, mile-a-min- ute messengers, governmental ac- tion, Washington hotels are crowded. The streets, even in mid-winter, are like the streets of a metropo- A new air of gaiety presides over glittering and vivacious so- cial gatherings at the White House and at many an humbler fire- side. Congress drives ahead, under the iron hand of strict administration control. Politics is in an uproar, and the party lines of a year ago | waver and totter as new ideas, new | projects, new visions of breath- |taking scope pour from the ad- ministration fountain. It is true today's idea may be forgotten by tomorrow, but nomat- ter; Washington is in motion, and, gins to think it may be perpet- ual, THE NEW NATIONALISM Not the least strange of these new phenomena is the manner in (Continued on Page Two) (lewer right) February, 1934, action, motion, mo- | Roger Tcuhy (left) and associates convicted in the court presided over by Judge Michael Feinberg cage for the kidnaping of John Factor (right) whose extradition to England to face a Three of the co-defendants Tom” McFadden, Gus Schaefer and Albert Kator. The last two were convicted with Touhy. “Father (Asso- are left to right: FARLEY PRAISES Price’s Succinct Summary | ADMIMISTRATION of Roosevelt’s First Year vt FOR FIRM STAND ’ostmaster-General De- clares Roosevelt Will Not Be Deterred in Action SAVANNAH, Ga., Feb. 23.—Post- m; r-General James A. Farley last night said the Administration n its march toward the goal of “bringing order out of chaos" not to be deterred by criticisms of former leaders in government who were “tried and found wanting,” in an address at a dinner given him by the citizens of Savannah. Farley reviewed the work of the Roosevelt Administration briefly, the air mail contracts as a move that would result in the elimination of the “abcess which grew out of unfair stifling competition.” He also said that at a not very| distant day we would see in oper- | ation a better and more serviceable | air mail system, | “It is the purpose of the Admin- istration to see that the fruits of labor from mow on are more equal- ly divided, the rights of property of all the people jealously guarded,” he said. e e WALMSLEY OFF FOR SOUTH; KEARNEY IN CHARGE. COAL CO. G. H. Walmsley, Agent of the Pacific Coast Coal Company, left on the Victoria this morning for Seattle ed south on official business. During his absence J. E. Kearney is in charge of the com- pany’s office. FRANK P. WRIGHT RETURNS ON VIC TO KETCHIKAN HOME Frank P. Wright, who recent- ly bought the floating cannery Re- triever, which he will operate during the coming season, was a southbound passenger on the Vie- toria this morning from Yakutat to Ketchikan, after a year of it, Washington be-! Mr. Wright passed through Ju- neau on his way to Yakutat ten days ago. He has also purchased jall the holdings of the New Eng- land Fish Company in the Yakutat {distriet and will use that place as the base ol operations this | summer. - ., DeHart Hubbard, famous former |track star of the University of | Michigan, heads a touring Negro basketball team called the Cincin- nati All-Stars. his is! and referred to the cancellation of | adequately protected and the rights| LASSOCHTES, - FOUND GULTY Jury Returns Verdict i Second **Jake the Bar- ber” Kidnap Trial ARE IMMEDIATELY SENTENCED, 99 YEARS Third Time Before Jury Results in Convictionr Three Gangmen | i | | | CHICAGO, 1li, Feb. 23.— Reger Touhy and two of his gangsters were convicted early today of the $70,000 |kidnaping of John “Jake the Barber” Factor and immed- Iiately sentenced to 99 years each in the State Peniten- tiary. | Officials said the verdiet marked the smashing of one of the most formidable erim- |inal organizations in the coun- try. | Each man convicted must |serve 33 years before eligible to a parole. The others convicted are Albert Kator and Gus Schaef- er. 1‘ Two Former Cases { The conviction came after Touhy land Seheafer Jrad twice by ‘are des |feated attempts to convict them |for kidnaping, onee previously in |the Factor case, when the jury dis- |agreed, and also for the $100,000 |abduction of William Hamm, Jr., | millionaire brewer of St. Paul, Min~ |nesota, when they were acquitted. Ruled North Shore The Touhy gang has ruled the |narth shore suburbs’ beer trade |despite Al Capone’s efforts to oust them. Factor himself is wanted in England to stand trial for an al- ;lt;.’«‘(l $7,000,000 stock swindle. He is fighting extradition. Two former members of the Touhy gang, Isaac Costner and |W. A. “Buck” Hendricksen, ade mitted on the stand they had a part in the Factor kidnaping but said it was a scheme of Factor to win sympathy in his extradition fight. CALL LOANS OF BIG CONCERNS 'T0 BE PROBED Senate Investigators Are Given First Tip on Procedure WASHINGTON, Feb. 23— Evi- dence that the Cities Service Com- pany poured $285,000,000 into Wall Street’s . speculative channels dur- ing the boom of 1929 was presented to the Senate investigators today by Ernest H. Johnston, Vice-Presi- dent. The inquiry is into the extent of call loans made by big corpor=- ations, Statistics showing that a group of twenty large corporations poured more than $20,000,000,000 into the speculative boom market of 1928 was made public today by the Senate stock market investigating committee. The results of the survey given show that a selected group of cor- porations had almost $1,000,000,000 in the market at one time near the peak. The largest contributor was the Standard Oil Company of New Jersey, which had more than $17,- 500,000,000. The twenty billion figure the cumulative total of all moneys advanced with the amounts at any one time varying greatly. S e NEWMARKER-CLARK SOUTH is J. Newmarker and J. M. Clark, United States Steamboat Inspectors, left this morning on the Victoria for Ketchikan, where it is expected they will hold hearings on one or two boat accidents in that dis- trict.