The Daily Alaska empire Newspaper, December 7, 1934, Page 1

THE DAILY ALASKA EMPIRE “ALL THE NEWS ALL THE TIME” VOL. XLV., NO. 6825. TWELVE PAGES JUNEAU, ALASKA, FRIDAY, DECEMBER 7, 1934. MEMBER OF ASSOCIATED PRESS PRICE TEN CENTS SERBS CROSS BORDER INTO HUNGARY FLAT THREAT OF WAR MADE SALMON CREEK | POWER PLANT T0 BE REBUILT Expenditure of $100,000 Is Outlined by Gen. Manager Metzgar Work on the rebuilding of thcl second Salmon Creek power plant which will involve the expenditure of approximately $100,000 is now underway at Salmon Creek, L. H. Metzgar, General Manager of the Alaska Juneau Gold Mining Co., said today. At present a crew is working clearing out the right-of-way for | the flume which will carry the water to the hydro-electric equip- ment. “Wé¢ expect to do the major part of the construction during the spring and summer,” Mr. Metzgar said. “However we will keep as much work going on the project} during the winter as the weather | permits. According to the plans we have laid out the plant will be ready and in operation early next fall.” More Electric Power Through this additional unit, Mr. Metzgar estimates that the new unit, when completed and put into operation, will add approximately 1800 kilowatts to the present sup- ply of electric current, which is about 2,500 horsepower. The addi- ticnal power is necessary for the increased demand in the Alaska Juneau operation, particularly in reference to the new hoisting ar- rangement, and the development and increased operation resulting from the purchase of the former Alaska Gastineau properties, in- cluding the Perseverance. With the new addition the Alas- ka Juneau will have a total of six power units. These are one plant at Annex Creek, one at Nugget Creek, one at Sheep Creek, one on Douglas Island, and the old and new plants at Salmon Creek. Fire Proof Bullding A fire-proof building will house the new Salmon Creek plant, and | SEATTLE GIRL IN THE MOVIES NOW Nineteen-year old Faye Hammar arrived in Hollywood and was given a role in a motion picture as a result of winning a beauty contest in the Pacific Northwest. (Associated Press Photo) ;Widow of “Baby GUMPLETES LIST;CU?SAH:‘ pN,.is('m : THOSE ELECTED -¥aees: —Helen Gillis, widow of “Baby Face” Nelson, public enemy re- cently killed, has been commit- . e | Official Returns of Septem- ber Territorial Vote Made Public | - i ted to prison for one year and one day on a technical charge of harboring Dillinger and his gang members, because she vio- lated her probation when sen- tence was saspended. She sur- rendered in Chicage Thanks- Official returns of the Alaska| giving day as a probation vio- general election of September 11, | have been completed by the Terri- | torial Canvassing Board which is composed of Gov. John W. Troy, | Territorial Secretary E. W. Griffin | and James J. Connors, Collector of | Customs for Alaska. lator. She was sought by Fed- In addition to a Delegate for erals after the Nelson killing with the order to give her no quarter. She is believed to have Congress, for which office Anthony | J. Dimond, up for re-election, was unopposed, and a Territorial Treas- ,HUPES FAnlNG urer, one Territorial Senator and | the project also includes the erec- tion of two miles of flume. » When questioned regarding what work was being done on the recent- 1y acquired Alaska Gastineau prop- erties, Mr. Metzgar said that in- tensive work was going on in tun- nelling, linking up the present A- J workings with the old Perse- verance grounds. Two tunnels are being driven on two different lev- els, and a raise is being made %o connect with old levels of the Per- severance. All this work is rapidly linking this important part of the recently purchased properties to the workings of the present Alas- ka Juneau mine operations. Underground Work All of this important preparatory work is naturally being done under ground, and as a consequence few are aware of the progress that is (Continued on Page Two) — METAL ISSUES TAKE ADVANCE, TRADING TODAY Phrofit Taki;fiakes Place Depressing Many Other Groups NEW YORK, Dec. 7.—While sev- eral metal issues and various spe- cialties pushed higher today, prof- it taking tended to depress some other groups. Today's close was irregular. The volume of transactions dwin- dled to one million shares. CLOSING PRICES TODAY NEW YORK, Dec. 7— Closing quotation of Alaska Juneau mine stock today is 18%, American Can 107, American Power and Light 4, Anaconda 12, Armour N 5%, Beth- lehem Steel 30%, Calumet and Hec- la 3; Curtiss-Wright 3%, General Motors 30%, International Har- vester 39%, Kennecott 17%, Unit- ed States Steel 38%, Pound $4.95. First Division Senator, Henry Roden. Representatives, A. H. Ziegler,; A. P. Walker, Joe Baronovich, Joe Green. been the woman with the des- four Territorial Representatives perado at the time he was killed by the Federal agents. - e —— were chosen in each Division in the recent election. Senators and Representatives elected are as Iol-’ lows: \Elements Conspire to De- . feat Search Parties by Air and Sea Second Division Senator, John F. Devine. Representatives, Garnet W. Mar- tin, Tolbert P. Scott, A. M. Cham- | berlain, Howard Lyng. | HONOLULU, T. H, Dec. T—A Third Division | roaring wind today blew out all Senator, M. E. S. Brunelle. | but the faintest hopes that Capt. Representatives, J. S. Hofman,| Charles T. P. Ulm and his two Charles Murray, James H. Patter- missing companions still lived. son, H. H. McCutcheon. | Rain, rough weather and low Fourth Division | visibility conspired with the wind Senator, John B. Powers. to leave little possibility that a Representatives, William N. Japanese fishing craft had picked Growden, George A. Lingo, An-|up the aviators. drew Nerland, A. G. Nordale. Capt. Ulm, with George Little- 0. G. Olson was elected Terri- | john, copilot, and J. L. Skilling, torial Treasurer with a total vote |navigator, hopped off from Oak- of 4,070, defeating Walstein G.|land, Cal, last Monday afternoon Smith, incumbent since the crea- for Honolulu, enroute to Australia, tion of the office in 1913, who re- |in the plane Star of Australia, on ceived 3,449 votes, and W. H. Chase, i a preliminary flight, routing a Mayor of Cordova, who trailed with | proposed air service from the Unit- REDHOT FIRE | BRAND TOSSED OUT IN GENEVA Declaration Is Made by Representative of Little Entente ATTEMPT TO VIOLATE ALLIANCE MEANS FIGHT Says Russia Also in New Pact GENEVA, Dec. 7.—(Copyright by Associated Press, 1934)—A flat threat of war against any nation seeking to violate the alliance of Yugoslavia, Czecho- slovakia and Rumania, was made to the world today by Foreign Minister Dr. Edward Benes, of Czechoslovakia, who is regarded as the most respon- sible member in the organiza- tion of the alliance of the Lit- ¢ tle Entente. Dr. Benes told the League's Couneil, which is making every effort to settle the present Hungarian - Yugoslavia quarrel over the former’s alleged har- bering of the assassins of King Alexander, that if any onej strikes a blow at the unity of the Little Entente, war will result. Dr. Benes also said Russia has joined the Little Entente in a se- curity pact which defines aggres- sion of a nation as a country which supported armed bands or which protected armed bands, which Yu- goslavia charges against Hungary. Dr. Benes charged a general con- spiracy existed against the terri- torial integrity of nations, created by the World War, and he then said: “If in the future anybody strikes at the unity of Yugoslavia, Czecho- slovakia and Rumania, a catastro- phe will surely come.” - eee— JAPAN TURNS DEAF EAR TO U.S. WARNING Not Worried Over Treaty Abrogation and Cost- ly Naval Race TOKYO, Dec. 7.—Official Japan has turned. a deaf ear to the American warning, given yesterday by Norman H. Davis, United States Ambassador-at-Large, in London, that a costly naval race will fol- low abrogation of the Washington Naval Treaty. Naval propagandists are quoted as accusing the United States #s 1,705. |ed States to Australia. Throughout the Territory, thej Early Tuesday morning, off the total number of votes cast, accord- | Hawalian Coast, SOS calls were ing to the canvassing board sum- | picked up that the craft was forced mary, was 10030. Of these, 4,075 down upon the Pacific, gas ex- were cast in the First Division; | hausted, and off the course. Army 1,053 in the Second Division; 2,798 and Navy planes and surface boats in the Third Division and 2,104 in |took up the search but all attempts the Fourth Division. |to find the aviators have been un- In spite of the fact that he was | successful. unopposed Delegate’ Dimond re- | i ceived a complimentary vote of | 8,306, |ST. ANN’S HOSPITAL |~ HAS NEW EQUIPMENT Is Remodeling 1 ; * . | - Two modern Fowler hospital beds, House Unider |ordered for St. Ann's Hospital by FHA Policy [the Hospital Guild, as the result —— lof a decision made at the last FHA is progressing in Juneau. "meetlng of that organization, ar- J. Beuker, Fifth and Ken- |rived here this week and have been nedy, is remodeling his house |installed in the new wing of the under FHA. institution. J. J. Klien is doing the work. The beds, of the approved style - e —— |in which either the head or foot CALL FOR BIDS ISSUED |may be raised or lowered as neces- FOR BIENNIAL AUDIT OF ~ [sary, for the comfort and well TERRITORIAL BOOKS TODAY |being of the patient, were greatly ;needed by the hospital and Sister A call for bids for the biennial |Superior and the other Sisters of audit of the Territorial books was St. Ann’s here have extended their issued - today by the Governor’'s sincere appreciation to the hard office for Certified Public Accoun- |working Hospital Guild for the tants. donation. desiring to expand its naval arma-' ments “for subjugation of the world,” as the result of Davis’s statement. Davis said in London, abandon- ment of the Washington and Lon- don treaties “would lead to inse- curity, international suspicion and costly competition with no real advantage to any nation.” In London, the statement was taken as a warning to Japan. The “warning” was given in an ad- dress by Davis before the Ameri- can Correspondents’ Association at a luncheon yesterday. REPRESENTATIVE OF LIQUOR FIRM VISITING JUNEAU B. C. Potts, representing the World Importers, Inc., wholesale liquor dealers, is expected to re- turn to his Seattle headquarters in the S. 8. Yukon, which will leave here Monday. Potts has been in the Territory is the interest of his firm, which handles products of the British Columbia Distilleries Co., Ltd., the Whitehorse Distilleries Co., of San Francisco, and J. B. Sheriff and Co., Ltd., of Glasgow, Scotland. FORTUNE SOUGHT FOR . Foreign Minister Dr. Benes|} BABIES The fong eourt battle over division of the $25,000,000 estate of the late wis ith hle mother, Libby. young Reynolds, Anne Cannon ttiement of $1,000,000 6n her daught be Included in a division of the Reynolds fortui Photos) ith Reynolds, young tobacco helr, took a new turn when a plea In Wington-Salem, N. C,, on behalf of Reynolds’ posthumous Christopher, asking that the child be e w‘ bher, asking aa made sole heir. The baby Is Reynolds. The first wife of (inset), has filed a plea asking be set aside and that . (Associated COST CHARGED FHA BORROWER IS EXPLAINED Detailed Statement Is Is-Bank Now Official Loan| sued for Benefit of General Public At the request of J. J. Connors, general chairman of the Juneau | Better Homes Campaign, and the | chairmen of his various commit- | tees, the following analization of the cost of borrowing the money | .iionis National Federal Housing | for remodeling was prepared: by | Curtis Shattuck, a member of the | Publicity Committee, working in | conjunction with Harry I. Lucas, Executive Assistant of the local Federal Housing Act organiza- tion. Considerable m isun derstanding | has prevailed in regards to the dis- | count charged on loans and the following is printed to give full in- formation and attempt to clear up any misunderstanding. Cost To Borrower Probably the least understood section of the Federal Housing Act is that pertaining to the cost charged the borrower for the use of the money lent him by finan- cial institutions. The misunderstanding that has arisen is due largely, without doubt, to the fact that many persons be- lieve the words “Interest” and | “Discount” mean the same thmg} as applied to charges made on| loans that are being paid back hy the borrower on monthly install- ments. This is erroneous. Interest charg- | es.on loans being repaid monthly | are based on the balance due the lender between one payment and the next. Another way of stating this is to say that interest charges take into account the dlmln‘shln!i amount of the loan. Discount| charges usually do not. They are based on the full amount of the | original loan, and the charge 1s| made for the full period over | which the loan will run, without | regard for the diminishing amount | Presented that the War Depart-{ of the loan. | Here Is Example | On a loan of $1,000 for three years, for example, being repaid in 36 equal installments, with inter- est at 8 per cent added to each in- | stallment, the payment at the end | dence bore out the recent testimony | of the first month will be $27.77 ©f Irenee Dupont that the muni- on the principle, plus one month’s | " (Continued on Page Seven) | B. M. BEHRENDS APPROVES OF FHA PROGRAM Institution and Deals Already Underway ’ B. M. Behrends, President of the B. M. Behrends Bank has received notice from Roger Steffen, Na- tional City Bank of New York ex- ecutive, loaned to the Adminis- Administration, Washington D. C., headquarters, that the B. M. Behr- ends Bank has been made an of- ficial FHA loan bank and that final papers of authorization are enroute for Mr, Behrends' signa- ture. “The B. M. Behrends Bank will co-operate with the FHA in re- gards to loaning to local people de- siring to improve their homes and property to the utmost degree con- sistent with good business,” Mr. Behrends said today. “Numerous arrangements have{one of the passengers, was not already been made with local prop- erty owners,” he continued. “As soon as the final papers arrive from Washington, D. C. headquar- (Continued on Page Six.) — P DEPT. OF WAR BROUGHT INTO SEN. PROBING Munitions Industry Permit-| ted to Sell Secret Pro- cesses Abroad WASHINGTON, Dec. 7.—Sena- torial investigators of the muni- tions trade said evidence has been ment permitted American arms workers to sell secret processes to foreign Governments which might use them against the United States in case -of war. ‘The investigators said this evi- tions industry had little trouble in getting War Department con- sent for selling its plans. IS DENIED BY YUGOSLAVIANS | [Foreign Office Spokesmen Says Troops Remain in Own Land CLAIMS REPORTS ONLY PROPAGANDA Travelers Claim Hungary| Arming Citizens Along Border BELGRADE, Yugoslavia, Dec. 7. —The Ministry of Foreign Armu's: denies troops have crossed the bor- der. “There has been no mobilization Wwhatever of our troops on the fron- | tier,” the spokesman of the For- eign Affairs' Office said. The spokesman further asserted | that “reports circulated by Hun- | gary are done for the purpose of | diverting the world's attention from Yugoslavia's protest to the League | jof Nations at Geneva against Hun- gary’s complicity in the assassi- | nation of our King.” | The spokesman further discount- | ed possibility of diplomatic rela- | tions with Hungary being severed. | HUNGARIANS ARMING MARIBOR, Yugoslavia, Dec. 7.— Travelers from the border, said | Hungarians are arming citizens | along the frontier and portrayed | tremendous preparation to resist invasion, Officers of Hungarian troops, | stationed for some. time on the border and which have been con- | centrated there for several weeks, told the travelers that the arming of the civiliins is only ‘taken as | ‘‘additional précautions.” . | R e e THREE KILLED, 19 INJURED BY FALLING TREE Double Deck Bus in Acci-| dent in Storm—Wran- gell Girl Not Hurt SEATTLE, Dec. 7—A falling tree struck a Spokane-Seattle double- deck bus west of the Snoqualmie | Pass Summit during a wind storm today killing three passengers and injuring 19 others. Those killed follow: Samuel H. Webb, of Portland, Oregon. H. L. Bauer, of Oregon City, Oregon. S. T. Lyle, of Seattle. Miss Marian Patterson of Se- attle, was among the 19 passen- gers seriously injured. The injured were taken to North Bend for first aid. Jean Pepla, of Wrangell, Alaska, hurt. - eee— HUNDREDS DIE IN RUSSIA AS SQUADS SHOOT Over 200 Executed, In- cluding Women, Chil- dren, as Warning | LONDON, Dec. 7—~A Warsaw dispatch to the London Daily Ex-| press, said wholesale executions of suspected enemies of the Soviet Republic have taken place in Rus- sia during the past 24 hours, The lives of more than 200 per- sons, including Leonid Nicolieff, ac- cused assassin of Sergei Kiroff, and many women and children, have been snuffed out by firing squads. The dispatch said Nicolieff’s wife, sons, two daughters and his ,85-year-old 'mother, are reported among the victims. Fourteen officials of the OGPU, the dispatch said, have also been executed in a grim warning to disloyal citizens. MOBILIZATION SITUATION IS TENSE ALONG BORDER AREAS Cries of “Fight” Are Hurl- ed at Troops of In- vaded Country SOLDIERS REPORTED READY FOR ATTACKS Refugees Continue toReach Homeland, Expelled from Yugoslavia SZEGED, Hungary, Dec. 7. —(Copyright by The Associat- ed Press, 1934)—After inter- mittent forays across the fron- tier into Hungary, Serbian trocps attached to the Yugo- slav Army have retired tem- porarily, rclieving the highly dangerous situation. As the forces remain only a short distance from the fron- tier however, their presence is a source of great anxiety to Hungary. MIDNIGHT RAID A Hungarian news agency said an organization of armed men made midnight raids on evacuated Hungarian homes in Yugoslavia, carrying off valu- ables. The Serb detachment entered Hungary only three miles from here and challenged the Hun- garian border force to fight. Only streng disciplinary action by Hungarian officers prevent- ed a battle. The situation is tense, Cily Prepared Hungarian oficials said they did not believe an attack on the city was contemplated, but if it came, the city was prepared. The streets are crowded with sol- diers. Szeged is the second to Budapest in population and the capital is only 90 miles away. Indignation is at fever pitch in the border villages. Threats Shouted Serb troops, wearing an of skull and -crosshones, threats and imprecations Hungarians, Refugees from Yugoslavia con- tinue to pour across the border, landed there from trains from vari- ous Yugoslavia centers. The Yugo- slavia Government shows no les- sening of the order that Hungar- ians, numbering about 27,000 must leave Yugoslavia at once. The Hungarian officials said many of the refugees are so ill they have required hospital treatment. Among Expelled Among those expelled from Yu- goslavia were a four-year-old boy with a broken leg, a blind man carried to the train on which he was deported, a woman with twins born four days ago, while two 65~ year-old women led their blind father, who is 96 years old. ‘Women mothered children wha had become separated from their parents. Plaintive wails of children, suf- fering from the cold, are heard, mingled with the sobs of men as they spent the night on beds of straw or leaves. Among the refugees are 80 babies emblem shouted at tne CABINET MEETS BUDAPEST, Dec. 7.—An alarmed Hungarian Cabinet met today in a special session to study the crit- ical state of Yugoslav-Hungarian relations. Indignation of the populace was aggravated hourly as additional re- ports were received from Hungar- ian refugees of being mistreated by Yugoslav officials. e et St MARIUPOL, U, S. S. R—A new porcelain factory under construc- tion here at a cost of about $50,- 000,000 will employ 9,000 workers in making household china, vitrified ware for plumbing and electrical porcelain insulators.