The Daily Alaska empire Newspaper, August 29, 1934, Page 1

THE DAILY ALASKA EMPIR “ALL THE NEWS ALL THE TIME” VOL. XLIV., NO. 6741. jUNEAU. ALASKA, WEDNESDAY, AUGUST 29, 1934. MEMBER OF ASSOCIATED PRESS PRICE TEN CENTS BRANCH VISUALIZES ALASKA AIR MAIL GOLD PROFITS WILL REDUGE PUBLIC DEBT Important Statement Made| by Secretary of Treas- ury Morgenthau INFLATION SCHEME IS PRESENTED NOW Wall Street~\7i;ws Move as Distinct Aid to ‘Govern- ment Bond Market WASHINGTON, Aug. 29.—Even- tual inflation of two billion eight hundred million dollars was fore- c last night by Secretary of Treasury Henry Morgenthau. With the announcement was the 5!.&'.0-‘ ment that the Treasury expects| sooner or later to apply its gold| fit in a reduction of the Na- Royal Couple Falls in Love; |Are Engaged LONDON, Aug. 29.—Prince George, fourth son of King George of England, and Prin- cess Marine, of Greece, became engaged Tuesday. The two have known each other for five years and both are now visiting at the summer heme of Prince Paul, Yugosla- via. It is said to be a love match. It is understood no plans have yet been made for the marriage. — e — YES, WE HAVE NO BREAKFAST THIS MORNING Eleven Co;;i‘cls Fail to Have Ham -and—Re- fuse to Work nal debt. The Treasurer fild the cost of} the New Deal cannot be measured | by the increase in the National| debt which under the present Ad- ministration amounted to six bil-| licn dollars. From this, Treasurer nthau said must be deduct-| increase of one billion six ed hundred million dollars, the Treas- ury’s cash balance. Increase of assets of the govern- an ront by financed agencies total billion and ninety-five million | s which will later be rcahmd‘ in cash and gold profit. With | the red ons, the net cost of | the New Deal would be three bil- Ton three hundred and five mil-| li-n dollars. | The center interest of the ad ons della dress was the disclosure that it is. intended to use the gold profits to| reduce the National debt. WALL STREET VIEW NEW YORK, Aug. 29.—Secretary Morgenthau's statement the Treas- ur pects to use profits on uold‘ devaluation to be made on the pub-| lic debt is regarded in Wall Street circles as distinctly reassuring and likely to bolster the Government | bond market. The opinion is also expressed in banking investment quarters that! the plan would help the Treasury | with its billion seven hundred and twenty-five million dollars of fi- nancing which must be done n the! next few weeks. ROOSEVELT’S STATEMENT HYDE PARK, N. Y., Aug. 29.— President Roosevelt emphasized to-| day that it is only the ultimate intention of the Government to uscl the gold profit from devaluation of the dollar and laughed away in- quiries of inflation by the immed- jate use of this fund. The gold profit is a nest egg and is to be regarded as such, said the| President. e, — FARM PRICES NEARLY REACH PREWAR PARITY Donald Rlchberg Makes Report to President on Situation WASHINGTON, Aug. 29—Don- ald Richberg has reported to Presi- | dent Roosevelt that farm prices have arisen within five per cent of the famous prewar parity which the Administration is straining to reach. Richberg made it plain his fig- ures include benefit payments re- ceived by farmers through the AAA and also stressed that the drought slashed some major crops and “therefore high prices do not mean | fully a corresponding increase in| farm income.” Richberg warned that for a com- plete farm recovery “it is essential therc be come revival in industrial production and more extensive re- employment.” - WALKS OFF PORCH; STITCHES IN HEAD O:car Hegstead, of the Peerless Bakery, walked off the rear porch! at his home on Tenth Street last night and dropped 10 feet to the PHILADELPHIA, Pa., Aug. 29— More than 1,100 convicts of the parent branch of the Eastern State Pemlenuary went hungry at break- fast time this morning under an ultimatum, no work, no eats. The punishment was decided on chiefly be: the entire prison population, except the kitchen men |vefused to work yesterday and re- | mained locked in their cells. Seventeen of the alleged leaders of the uprising last night, w subdued by teargas and clubs, were taken to cells and placed in “Klondike” where they were given “gas” treatment which nauseated them. Meanwhile virtual calm returned to Graterford, branch of the pris- on where rioting convicts did $40- 000 damage last Saturday in the |rebe12ion there. - STOCK PRICES FIRM AND THEN TAKE DECLINE Early Gams Cance“cd or Replaced with Small Losses Today NEW YORK Aug. 29. —Smck: h(ld to a firm undertone today un- | |t a downward drift in the final| heur and a number of early gains were cancelled or replaced Wwith { smaller declines. Packing and alcohol issues were in greatest demand today. The close was irregular. Bonds were uncertain. CLOSING PRICES TODAY NEW YORK, Aug. 29.—Closing stock today is 19, American Can 98, American Power and Light 5% Anaconda 2%, Armour B. 62%, Bethlehem Steel 297, Calumet and Hecla 3%, Curtiss-Wright 2%, General Motors 30, International Harvester 27!, Kennecott 19%, Unit- ed Slaws SLeeI 34%, Pound $5.04%. RAIN FALLS IN PART OF IDAHO SPOKANE, Wash.,, Aug. 29.—Al- thought Idaho received rain, as if in answer to prayers, Northern Idaho is still dry. On Priest Lake, navigators are going by compass, so thick is the smoke from fires. Foresters regard the weather as friendly and made the most of their opportunity to push their lines farther around thousands of acres burning in Idaho and Mon- tara. - R BEN DELZELLE RETURNS Ben C. Delzelle, wholesale brok- er, returned to Juneau on the Aleutian after a two months’ busi- ness trip to Interior and Westward points. He reports the best busi- ness in his lines that he has ex- perienced and that the outlook for gold pro- duction was never better ‘in the sections he visited. There were al- most no idle men, he said, and those now employed will for the beach. Dr. W. W. Council took nine sti‘ches in the side of Heg- stead's head and ear, greater part take to the hills pros- pecting at the close of the min- ing season, which | quotation of Alaska Juneau mine| .| Relations Board threw all influence in the past 12 years,| SINCLAIRIS NOMINATED IN CAL. PRIMARY Socialist—Who Turned Democrat, Running Far Ahead of Opponent SAN FRANCISCO, Cal, Aug. | 29.—Returns from 3,164 pre- cincts of the state’s 10,703 gave Sinclair 295692 and Creel 169- 404 votes for the Democratic nominaticn fer Governor. SINCLAIR NOMINATED SAN FRANCISCO, Aug. 29. Upton Sinclair, novelist, former So- cialist, running cn the Democratic ticket for the nomination of Gov- ernor, has swept the primaries,| running better than 2 to 1 over his nearest opponent, George Creel. | Sinclair was running on his plat- form to eliminate poverty in Cal- ifornia. Sinclair, early this morning was| polling fer more votes than hisj nearest Republican opponent, Act- ing Governor Frank E. Merriam. The latter has been nominated by the Republicans. United States Senator Hiram W. Johnson has been renominated by both Republicans and Democrats. TO FREE MOONEY SAN FRANCISCO, Cal, Aug. 29. —Upton Sinclair said that if he h; {elected Governor of California next | November, his first act will be to| | free. Tom Mooney. | j Fear is expressed by some State| | Democratic leaders that conserva-| tive voters, opposed to Sinclair, might swing the entire vote from| the Democratic to Republican tick-| et, cutting into the state’s party| delegation of eleven in Congres. ‘The eighteen of the twenty Con- gressmen seeking re-election are all| |leading on their own tickets. LINDSE OMINATED { LOS ANGELES, Cal, Aug. 29.—| Ben Lindsey, former Denver Juve- nile Court Judge and writer, has| been nominated for a Los Angeles | County judgeship by a command-| ing majority. MAKE EFFORTS AVERT STRIKE, TEXTILE MILLS Clouds Hover Over Pro-| posed Conference—Both Sides Are Sitting Tight ‘WASHINGTON, Aug. 29—On the eve of the peace conference called 1Lo prevent a strike from crippling |the nation’s textile industry, union leaders and employers stuck to their guns as the National Labor | behind the peace move as storm clouds hovered over ail. Francis Gorman, Chairman if the United Textile Workers’ Strike Board, accused the employers of trying to depict the workers as ‘ triking against the Government. Some cotton mill managers are reported ready to close factories if the strike materializes next Tues- day as planned. MAY SLASH LIQUOR TAX WASHINGTON, Aug. 29.—Slash- | 23 in Federal liquor taxes and im- | port duties to eliminate the boot- legger will be proposed at the next Congress by a group of Represen- tatives who lead the repeal fight The fact that the Treasury De- partment has not reaped the reve- nue expected from liquor sales and continuance on a large scale of hootlegging activities, is prompting | the move > —— ATTORNEY IN | JUNEAU ON BUSNESS| | | CORDOV, Thomas M. Donohoe, Cordova at- torney, arrived in Juneau on the| Aleutian last evening on business, | and planned to leave for Cordova again by air this afternoon, ac- cording to Mr. Donohoe, the can- neries in the Cordova district had good packs this year, although the present price of canned salmon has | nearly wiped out profits. jand JUNEAU VOTERS | Dimond Reviews Record in @ Con gress;Pledges Renewed Effort for Home Rule;and A ppeals for New Deal Support ‘Right Down the Line’ APPROVE BONDS FOR CITY WORK Only 251 Vote in Special Election — Carried Nearly Four to One With only 251 voting, the prop- erty owners of Juneau passed the bond issue yesterday by a vote of nearly four to one in the special municipal election. On the first proposal, to issue $51,400 in bonds for regrading and paving streets and sidewalks, the vote was 185 yes, 51 no. On the second, to issue $2,750 in bonds in install sewer and wa- ter pipes, 90 yes, 43 no. For New Bridge On the third, to issue $5,000 in bonds to be used to construct a new bridge over Gold Creek at Calhoun Avenue, 190 yes, 44 no. On the fourth, to issue $12,500 in bonds to construct concrete bulkheads on Gastineau Avenue and Calhoun Avenue, 180 yes, 55 no. For Incinerator On the fifth, to issue $25,000 in bonds to be used to construct a re- fuse incinerator, 182 yes, 67 no. On the sixth, to issue $8,000 in bonds to be used to employ such engineering supervision and pay such overhead expenses as may be necessary in connection with the above mentioned public works, 174 yes, 54 no. Five Spoiled Ballots [hree ballots were completely spoiled when the voters marked both yes and no on all questions, and two were partiaily spoiled by the voters marking both on one or two questions. No explanation ac- companied these peculiarly mark- ed ballots, so it is not known whether the property owner wished to express his lack of bias, or was of two minds on the matter. Mayor's Statement Gratification over the decisive sult of the election was expressed Mayor 1. Goldstein today. “The hea majority by which the bonds carried indicates beyond question the citizens’ approval of | the action taken by the City Coun- cil in entering into the contract with the PWA for securing needed public improvements at a great saving to the city,” said the Mayor. The city offici appreciate this ssion of confidence and I wish to state that we will exercise the utmost care in the spending of the money which has just been amhonad % Preliminary Work Considerable preliminary work, such as engineering, preparing bids and plans, printing the bonds and submitting of further data to the PWA authcrities remain to be done before actual construction work on any of the projects can be started All possible speed will be used to get the most necessary work staried before weather conditions interfere. It is believed that a good start can be made on the street paving work this fall, ac- |cording to Mayor Goldstein. — e — BULLETS FIRED, SPOKANE STRIKE SPOKANE, Wash., Aug. —This city, this morning, stood “waiting for a sireet car” after a night of suspended service when busses and street cars were stoned and fired upon in the first day of the strike of operators. Most of the vandalism that caus- ed the companies to call in busses street cars, occurred at Hill- yard, the terminal, although a street car was nearly wrecked on the opposite side of the city. Superintendent A. J. Shulters said nine shots were fired at Hill- yard, five striking a bus and put- ting out the lights inside. Windows and lights were smashed in other busses. He said the stoning and |shooting was the work of hood- lums as he saw no strikers around. Resumption of service sometime today is planned. ———————— DIES IN SEATTLE Mrs. George Worth received tele- graphic notice today of the death of her father, Edwin Beard, in Seattle. Mrs. Worth will leave Saturday night on the Prince Ru- pert to attend the funeral. Mr. Worth is now in Seattle, and Mrs. Worth will join him there. |March, More than 800 persons last night | gave Delegate A. J. Dimond an enthusiastic greeting and applauded his appeal for support of President Roosevelt and the New Deal “right | down the line.” He pledged himself anew to Alaska’s fight for a greater measure of Home Rule, particularly in the drive already started for | fur | local- control of the fisheries, and game resources. The Coliseum Theatre was prac- | tically filled when the Delegate began his speech at 8:10 oclock He spoke without interruption for | 50 minutes. Applause greeted him | as he walked down an aisle and mounted the platform, and rose in greater volume as he concluded his address. A Friendly Audience It was apparent from the very outset that he was speaking to an audience of friends and ad- mirers. And it was in the same friendly manner that he discussed somewhat briefly his work in Con- | gress during his first term, his plans for his second term, and in greater of the New Deal which, he declar- ed, has done much for Alaska. He was introduced by Mrs. G. E Krause, President of the Juneau Women’s Democratic Club, under whose auspices he spoke, in a few well-chosen sentences. “We are ap- preciative of what has been done for the Territory, and deeply con- cerned in the things we hope can be accomplished in the coming year and future years for our bet- terment and advancement. I be- lieve you all agree with me that there is one person who is able to give the details better than any- onc else, due to his official ca- pavity, his ability and personality, she said. Seated on Gov. the platform were John W. Troy, J. A. Hellen- thal, recommended for National Committeeman to succeed J. J. Connors, resigned, W. B. Kirk, Chairman of the Divisional Com- mittee, Mrs. J. B. Godfrey and Mrs. Robert Coughlin, officers of the Club. Era of Goodwill The Delegate thanked his aud- ience and all Alaskans for the “era of good feeling” in and out of Alaska since he took office. Dif- ferences in politics, of course, still exist but there has been a notable lack of “bitter personalities” so evi- dent at times in former years and which, he said, can defeat the efforts of even the best and ablest public servants. He said he had not tried to follow his own ideas in Washington, or run counter to the ideas of Alaskans, but had used his best efforts to get done what a majority of Alaskans wanted him to do. In the special session called shortly after his term began in 1933, due to the turmoil and grave national danger from demoralized financial, economic and industrial conditions, he had not been able to attempt to get action on much distinctively Alaskan leg- islation. But during the regular session, he was successful in getting some 20 measures passed and sent to the President. Only one of these failed of Presidential ap- proval and that was a private re- lief measure which affected a few individuals in McKinley National Park. Extended Local Powers In the list were three laws which actually extend a greater measure of Home Rule to Alaska. The first of these was the Prohibition repeal bill which not only extended the repeal of the Eighteenth Amend- ment to Alaska and repealed the Alaska Bone Dry Law, but also gave the Alaska Legislature the power to control and regulate the liquor traffic. This was a power that nobody thought would be granted Alaska, but it wasn't actually so difficult to accomplish since the majority in Congress was sympathetic to giving Alaskans more power to handle local affairs. This new power, Ne declared, “puts the burden of intelligently and wisely administering the liquor traffic upon you and me,” and, he added, he was confident that this would be done. “Alaskans have the intelligence, ability and patriot- ism to govern themselves and this power will be fully exercised.” Election Control Granted In bestowing on the local Leg- islature the power to change elec- tion dates and to fix the duties of the Territorial Canvassing Board, Congress removed inhibitions on the Territory that have existed detail some of the phases | " Makes Fine Address [ | \ | | Alaska Delegate Anthony J. Dimend, who appeared before a large audience last night at the Coliscum Theatre and told of the work he has done in Con- gress and what is (o be done. DELEGATE HAS FINE PROGRAM | FOR NORTHLAND {Staff Is Workmg on Legis- lation Proposed for | Next Congress ‘ WASHINGTON, Aug. 20—An am- bitious program of legislation, to be introduced in the next Congress, is being worked out in Alaska Dele- gate Anthony J. Dimond’s office. ‘While it is generally agreed among Senators and Representa- tives that Alaska fared far better in the past session, obtaining bene- ficial legislation than ever before, the Delegate’s staff is preparing bills which have a much more and far reaching effect, not only in the Territory, but also in the Pacific Northwest. Among the major measures which Delegate Dimond will attempt to push through the next Congress are appropriations for construction of the proposed International High- way, Seattle to Fairbanks; con- struction of an army air base near Fairbanks, naval base on the South- east Alaska coast or Aleutians, and to turn the regulation of the fish- eries industry over to the Terri-} tory. since elections were first extended here. A third measure embodying more Home Rule was the repeal of the Placer Mining Act of 1912, and giving the Legislature the power to enact legislation upon that sub- ject While these are important ex- tensions, the greatest significance of their enactment the proof they furnish that Congress recog- nizes the need for greater local authority here and the ability of Alaskans to govern themselves. Will Press Program On his program for rext term three fitems come first. Construc- tion of the Pacific Yukon High- way about which he has talked wil the President on more than one occasion, and in which Mr Roosevelt has evinced more than casual interest, is one of them. | Passage of a measure to turn over control of the Alaska fisherics, anc a similar measure relating to the fur and game, are the other two.| Both of these have had hearings | before House committees and M: Dirond said he would use every influence to get action’/on them at the next session of Congress. | The construction of the Interna tivnal Highway “will remove the | barriers of Nature between Alaska | and continental United States” and lead to the Territory’s settlement and development in much the same | way that the frontiers of former eras were seftled. He expressed | confidence that this project would be undertaken in the not disiant future | President Rooscvelt's plans call| , i | ting along | importance of | country is | tacked |are not |of the ten Martin bombers of the ) be under for a visit to Alflnk.l next year, and he believed that this will be af orerunner of a start on the nighway. Mr. 0 on the| occasion of the Deleg: t talk with him had asked Di- mond, how is your highway get- Mr. D tablishment posts in early es and Navy strategic nd predicted of Army Alaska. The the country the western part fully recognized by “If we are ever om the Pacific area it by way of Alaska,” he “The Army and Navy blind. The Alaska flight of the the at- fense of authorities w! ne declared and the Navy expedilions are enough to convince anyone that | Alaska ought to be placed in a are of defense Fine Field Here He predictea th to have these posts, e are going and that an | A1A airport will be constructed in Juneau and a similar one in Ket- chikan, that the whole coast wi adio ¢ rol from Dixon to Point Barrow, and would be many other g in type, throughout north as Point Entrance that there fields, v the Territ Barrow. These would be an advantage to commercial air transportation in- s and to the Territory ture transportation lies largely in the air.. We ought to exert all cur strength to see that these facili are oped at the earliest possible time.” Oppesition Beat Him There was a chance that the the Legislature power to administer and regulate the fisheries might have passed but for opposition from a fishermen's unicn at Cordova, he said. He had thousands of letters and res luticns endorsing the measure, but the committee felt it ought not to approve of the move if local fish- ermen were against it. “I believe when the Cordova fishermen fully understand the subject they will change their mind: he added. bill _giving The measure is not political and | supported by both political par- He cited the defense of the measure made by Judge James Wickersham before the Juneau Chamber of Commerce last year. He estimated 99 per cent of Alas- kans favored the change. Some members of Congress fear waste and dissipation of this resource and it is difficult to educate them on the matter. Elimination of Traps Following the return of Secretary Roper to Washington from his Al- aska trip last Summer, he discussed the whole situation with him at the Secretary’s invitation. Mr. Rop- er told him he thought “the people of Alaska ought to have a greater measure of control over their own affairs,” but wasn't ready to com- mit himself as to the fisheries He asked the Drlegate what else e had to suggest and Mr. Dimond said “the fish traps wiped out of existen He uged this in local people a chance living. “If we can get the Sec- retary to back up our views the fight is won," he added. Must Be Resident my way, it wont every fisherman is red to be a r he asserted. “Just order to give b ¢ S 4 be long before going to be requ dent of Alaska,” have as in Washington, Oregon and every other State in the Union, I know of no reason why that shouldn't be in force here.” Reverting to the traps, he char- acterized them as a “special form of ege, monopolistic and un- fa deprives many of the opportunity to make a living. “If the people of Alaska get control the fisheries, it will be wiped in thc shortest possible time.” The Greatest Accomplishment The New Deal is the greatest accomplishment of our time,” de- lared Mr. Dimond, who recited some of iis achievements in Alaska |and gave the definition of the term in the words of Represen- |tative Edward Burke, Nebraska, who is now a candidate for the Senate. opposed by Robert Sim- mons, Republican, and former Con- gressman who was mainly instru- mental in cutbing road allotments in National Forest areas in Alaska Mr. Burke'’s definition was quot- ed by President Roosevelt in his Green Bay, Wis., speech as most (Conunue;i on Pags: Two) in de-| ald | as its | ought to be[ to make a | P, 0. EXECUTIVE TELLS LAWYERS OF HIS SURVEY {Second Assistant Post- | master General Indicates | Early Improvements HERE TO STUDY SOME OF ALASKAN PROBLEMS {Can't Make-De—finite Prom- ises but Believes Mail Routes in Offing Although he emphasized he was not in position to “promise any- thing' as regards air mail,” Harllee Branch, Second Asst. Postmaster General, told the local Bar Asso- ciation, whose guest he was at a noon lunch today, that “I can vis- ualize a substantial, well-developed, and well-sustained air mail sys- tem in Alaska,” in the near future. His statement was made fol- lowing an all-morning conference with Gov. John W. Troy, Delegate A. J. Dimond, Robert G. Thach, General Attorney and Vice-Presi- dent of the Pan American Airways, Lyman 8. Peck, Vice-President and General Manager of the Pacific Al- aska Airways, Murray Hall, Inspec- |tor of Aviation for Alaska, A. B. Hayes, General Manager of the Al- aska Southern Airways, and R. W. Bender, President and General Manager of The Empire. Delegate Also Guest Delegate Dimond, Gov. Troy, Robert G. Thach, executive of the Pan American Airways, and Thom- as M. Donohoe, Cordova attorney, were also guests of the Association and made brief talks. The Delegate complimented the Post Office Department on its read- ss to aid Alaska. “In Washinz- he said, “those who run the Post Office Department understand | Alaska very well. They have done all they could to give better air mail service to Alaska. The best testimonial of their interest is the | presence here today of Mr. Branch |in person. | “I have been informed,” said Judge H. B. LeFevre, President, in introducing Mr. Branch, that Mr. Branch is here to establsh air mail service in Alaska. I would like to question him about that, and have him answer the question in the affirmative.” See What He Can Do Smilingly, in response, Mr. Branch said he was here “to see if we can do anything toward improving com- munication.” He referred to the conference held earlier in the day, which is the beginning of a study of conditions that will be conduct- ed all the way to Nome. “This Administration feels some responsibility for the development of Alaska,” he declared. “Although President Roosevelt has many great and serious problems pressing upon him for solution, with it all, his Administration is not unmindful of the fact we have this great Ter- ritory up here and those of us who have something to do with it are trying to improve things.” Can Visualize Air Mail Although he pointed out he was position to make definite s, he said he hoped his visit ‘at no distant day you will | have considerable improvement in communcation and that it will be progressive.” He didn't see immediately forth- coming an air mail system net- work throughout the Territory, con- necting up all of its communities, he said that he could “visualize a substantial, well-developed, well- sustained air mail system in Al- Whatever is done, he add- 1d will be done for the betterment generally of all air transportation. That is oue of the fundamentals of awarding air mail contracts, to enable the commercial airplane in- dustry to develop into self-sustained and self ained units, serving not y the lic but commerce and industry efficiently. Is Virgin Territory He pointed out that Alaska is virgin territory insofar as air trans- portation of mail is concerned. There are many obstacles to be overcome, more expensive obsta- s than those which exist any- where else in the country. “But,” he added, “I hope when I get back to Washington, we can set. down around a conference ta- ble and do something to advance development.” He warned there are a uumber of things to be gone over carefully. Due to the faet that airplanes must fly over Can- (vontinued on mo Two) no