The Daily Alaska empire Newspaper, December 12, 1934, Page 1

THE DAILY ALASKA EMPIRE “ALL THE NEWS ALL THE TIME’ VOL. XLV., NO. 6829. ALASKA FLIER, 3 OTHERS, LOST 9 DAYS MEMBER OF ASSOCIATED PRESS PLAN TAKING WAR PROFITS OUT OF GAME Preside atr Gl Special Conference to Frame Legislation GEN. WARTHUR i IS REAPPOINTED Chief of Army Staff Will Serve During Session of Next Congress BULLETIN—WASHINGTON, Dec. 12.—~Berpard M. Baruch, of New York, Chairman of the War Industries Board during the World War, has been nam- ed by President Roocsevelt to formulate the program “to take profits cut of war.” WASHINGTON, Dec. 12.—A con- ference to map out a program to “take profits out of war” has been called by the President. President Roosevelt also directed the reappointment of Gen. Doug- las MacArthur as Chief of the Army Staff to serve through the ccming session of Congress to aid in formulating war profits legisla- tion. The President said the conference has been called because the war <louds in Europe have been cleared. President Roosevelt said legisla- tion will be enacted which will take the profit out of war for this coun- | try. { COLD WEATHER IS CONTINUING WIDE SECTION ome Relief Is Promised But Not in East— Florida Freezing q i 1 o | 1 NEW YORK, Dec. 12—Slightly warmer weather is forecast for var- jous parts of the country where frigid temperatures have brought death and suffering during the past 48 hours. ‘The East is expected to get lit- tle relief however. Bitter cold extends from Maine to Florida, which reports an all- time record low of 30.4 degrees. The citrus crop has been damaged by the frost in the southern state. Many deaths from the cold are reported in the various regions where the frigid weather has hit. | In New York Cify, six persons have died. Ten thousand homeless are beingz cared for in the armories. 1 The northeast had freezing weather with below zero readings. The midwest is blanketed in Snow. STOCKS REGAIN SOME DECLINES FROM TUESDAY Entire List Reported Ir- regular—Specialties Show Spurt { NEW YORK, Dec. 12. — Stocks| regained their equilibrium today after yesterday’s skid- but failed to make much progress. The list was irregularly higher most of the day. Gains today were chiefly in specialties. Today’s close was steady. CLOSING PRICES TODAY NEW YORK, Dec. 12.— Closing quotation of Alaska Juneau mine tock today is 18%, American Can 1062, American Power and Light 3%, Anaconda 10%, Armour N 5%, Bethlehem Steel 29%, Calumet and Hecla 3, Curtiss-Wright 27%, Gen- eral Motors 31%, International Harvester 37, Pound $4.947%. — e Mr. and Mrs. Harry Foregren of Deering are in Nome where they expect to remain for several weeks before proceding south for the re- mainder of the winter. HIGH ON ‘PUBLIC ENEMY’ LIST These four men are high on the “public enemy” list of the department of justice and federal agents have been instructed to concentrate on their apprehension. They are Alvin Karpis (left, above) and Arthur “Doc” Barker (upper right), named as the abductors of Edward G. Bremer; John Hamilton (lower, left), believed to have been George “Baby Face” Nelson’s companion in his battle with federal agents; and Thomas H. Robineon, jr., accused of kidnaping Mrs. Alice Speed Stoll, Louisville, Ky., society leader. (Associated Press Fhotos) | Business Recovery to Date Is Better than Last Y ear; Stri SPEAKERSHIP FIGHT TAKES ONNEW ANGLE Two Rumors Being Cir-| culated—"Cactus Jack” to Be Reckoned With WASHINGTON, Dec. 12. — The fight for leadership of the House of Representatives has taken on a differents aspect as the resuit of two developments. ‘The first is the rumor that some undesignated agent of the Demo- cratic National Committee is quiet- 1y passing the word along to both old and new members to be wary of committing themselves in ad- vance for any one of the candi- dates for speaker. ‘The other is the announcement that Vice President Garner has ac- cepted an invitation to quit his Uvalde retreat and return to the Capital. 3 If it be true that the Democrat- ic National Committee, the politi- cal agency of the Administration, officially or unbfficially, has inter- ested itself in the question of House Leadership, it must be con- strued as highly significant. ADMINISTRATION INTERESTED Just what it portends no one here seems to know. It seems fair- ly certain, however, if it be true, that regardless of how much the administration desires to play hands-off in the fight it is finding it increasingly difficult to do so. The contention all along has been that the Administration has a vital stake in the question. For obvious reasons it is to its ad- vantage to have at the helm of tne House in the next Congress as| . strong a leadership as possible—a leadership capable not only of put- ting through its program but do- ing it quickly. There will be 76 new Democrats | in the next house—a bloc of votes which conceivably could turn the trick for any of the leading con- testants for the Speakership. A word from the Democratic National Committee—the patronage distrib- (Continued on Page Six) ~ king Gains Recorded NEW YORK, Dec. 12.—(Copy- right by the Associated Press)— Statisticians calculating the pro- gress of business recovery find that in most respects this year is the best since 1931 and in some re- spects the best since 1930. { In the final month of this year, industrial production seems to be | close to where it was at this time | last year, | The year's totals show substan- tial gains over last year. This is |due in part to the extremely low |levels to which business fell early | last year, coincident with the bank- | ing crisis. Perhaps the most striking gains for the year have been in the sales of “consumption goods” even in semi-luxury products. This is attributable to the restoration of the farmer purchasing power. INSTRUCTED VERDICT OF “NOT GUILTY” IN MATTHEWS,HOLST CASE Albert “Doc” Matthews and Roy Holst, indicted by the Grand Jury on a charge of burglary and lar- ceny, from the Miners' Recreation Hall, were released from custody yesterday afternoon immediately after the jury returned an in- structed verdict of not guilty for both defendants. The jury retired for only a few minutes after Judge George FP. Alexander allowed a motion made by the defendants’ attorneys for an instructed verdict because of in- sufficient evidence. Grover C, Winn represented Matthews and Henry Roden, Holst. The Government was represented by Assistant United | States Attorney George W, Folta. Court was adjourned . and the | jury instructed to. report at .10 | o’clock Thursday morning. Locomotive Plunges Into River; Engineer and Fireman Drown | DEBEQUE, Colorado, Dec. 12— The engineer and firemen are miss- ing following the plunging of a lo- ioomouve into the Colorado river near here. The coaches of the pas- senger train remained on the track. ————— Charles Mitchell, an employee of Waechter Brothers, Fairbanks, has left for the south for medical Jattention. ~ LABOR STARTS ANNUAL DRIVE LEGISLATION { | Proposes Unemployment: Insurance Be Financed by Payroll Tax LEVY ON WORKERS STRONGLY OPPOS! President William Gree’la Announces Plans of = | Americon Fed. WASHINGTON, Dec. 12.—Union Labor's legislative drive for next year has opened with a proposal by President William Green of the American Federation of Labor that unemployment insurance = be fi- nanced wholly by a five percent tax on payrolls. President Green opposed any di- rect levy of the workers. The head of the American Fed: eration of Labor said the worke! would pay most of the cost any- way as the employers would add | their tax to the cost prices the ems ployees pay. President Green esti- mates workers buy 85 percent of all goods sold. 3 e TWENTY-TWO | ARE REPORTED | 4 FIRE VICTIM Ruins of- Hotel.Giving ‘U Dead—River Is Also Being Dragged § BULLETIN — LANSING, Dec. 12.—Five bodies, charred beyond recognition, have ‘been takers from the hotel ruins. The un- identified and known dead re- mains at 23 up to noon today. LANSING, Michigan, Dec. 12— As the fire blackened and ice; shrouded ruins of the Kerns Hotel began giving up the dead, the po-l lice announced that 22 persons,| among which are perhaps a dozen Legislators attending the special session of the Legislature, are list-| ed as victims. Firemen pulled down all remain- ing walls of the $350,000 hotel and the river, into which many jumped from the flames, is being dragged for vietims. s The inquiry into the cause of the fire has been started. One miracle escape was that of Walter Jeffery, aged 50 years, and blind. He jumped into space from a window and landed on another building only twelve feet below. FOUR THEATRES BADLY DAMAGED BY EXPLOSIONS Bombs Set Off in Movie| Houses — “Two Unions” Blamed | BOSTON, Mass., Dec. 12.—Ex- plosions ripped out the interior of four moving picture theatres IZISL‘ night and sent the Bomb Squads into action. | No persons were injured but the damage to the theatres will total many thousands of dollars. One theatre owner said the| bombings were the result of “two unions” among the theatre work- ers. 'WEALTHY MAN Down, Lost “Somewhere in the Pacific” 92 ] N/. SO projected Oakland, Cal.-Sidney, Australia, flight in the “Stella Australi Ulm indicated he was lost somewhere near Hawail and army and nav! trio. The solid line shows mpproximately the route flown and dotted Ii intendzd to follow from Honolulu, (Associated Press Photo) Construction Boom Is in Progress In Far West SAN FRANCISCO, Cal., Dec. 12.—The construction boom in the Far ‘West is moying at a i elip hitherto, unapproached. . Contracts for more than $150,000,000 of work have been awarded so far this year which is $30,000,000 nwore than at the came time last year. . P 74 . LIBERALIZING | REGULATIONS, " HOME BUILDIN DIES SUDDENLY, construction May Now! pied Property Charles T. P, Ulm (center, below), veteran Australian flier, and his crew, Co-Pilot George Littlejohn (left) and Kadio Operator Jay Skillings (right) were forced down in the Pacific on the first leg of their ‘Adr_ninistration Spokesmen Using New Ein : to Explain Political Shifts Take Place on Unoccu- |misht be 23 J AUCKLAND, N.Z., s” (above). Radio messages from y planes joined in a search for the ne on map indicates course Ulm stein Theory By BYRON PRICE of Bureau, The Assoclated Press, Washington) i Something akin to the Einstein theory has been evolved by vari- | ous - administration spokesmen o explain what's what about current | political complexities. | There is such a thing as relativ- ity in politics, it is contended, as well as in sclence; and it is added | that a faulty understanding of rel- | ative values often leads to what called political optical (Chief ‘ illusions RESULT STROKE W. T. Wa‘ggoner, Who Made Fortune in Cattle, Oil Lands, Passes Away FORT WORTH, Tex., Dec. 12— William Thomas Waggoner, aged 82, capitalist and cattleman, died last. night as the result of a sud- den stroke of paralysis he suffered | two_days previously. Waggoner came of staunch ranch stock. ‘Despite a multiplicity of oth- er business interests, which increas- ed with his years, to the last he identified himself, in spirit and fact, with the cattle raising in-| dustry. Friends said Waggoner always re- sented the discovery of the great oil pool of North Texas which | | For instance, many public state- | | ments, have been made to the effect Important liberalizing regulations |that Mr. Roosevelt veered a good | | respecting the home modernizatior | many degrees to the left after he | program being carried forward un- | took office, and that he now is! der the National Housing Act, were |sliding back several miles to the announced today by John E. Pe- |rigle. i gues, Territorial Director for the | Mr. Roosevelt himself, denies| | Federal Housing Administration. | this. His thesis is, in effect, that Under the revised regulations it |the administration has been in ex- | will be possible to obtain funds |actly the same spot all along. That 1Irom financial institutions apm'nvcdm only seems further to the right | by the Federal Housing Adminis- |just now because the political back- tration, for construction of build- drop of public sentiment took such ings on property upon which no!a violent lurch to the left in the building or other improvement now | elections. exist. | i Previously it was necessary to WHO'S STANDING STILL make improvements to property It is easy to see the difficulty of upon which a building was already grappling with such a supposition located. By means of this modifica- | as that, of analyzing it accurately tion it will be possible, for instance, | and deciding definitely whether it PRICE TEN CENTS FOUR MAROONED IN CABIN, FAGE HUNGER, DEATH Plane Forced Down on Flight from McGrath to Anchorage LANDS IN 30 INCHES OF SNOW IN INTERIOR Is Unable to Take to Air Again—Rescue Party Reaches Scene ANCHOR A GE, Alaska, Dec. 12.—Trapped for nine days in an abandoned c¢abin and facing death and hunger, Pilot Oscar Winchell, David Stranberg, W ein o Puntallo, Takotna mine operators, and Mrs. Hazel McClung, wife of a Takotna mining man, have been rescued. Snow and sleet forced the plane down in whick the party was flying from Me- Grath to Anchorage. The plane landed in 30 in- -Iches of snow and could not take off agajn. Winchell and his passeng- ers took refuge in the aban- doned cabin. They had one robe and some emergency ra- tions. Winchell shot five grouse which were devoured. Pilots. Roy Dickson and Chuck McLean, searching party, reached the scene in a plane on skiis. Each member of ,the mar- ooned party lost from 10 to 15 pounds in weight. KIDNAPERS ARE IN NEW ROLE TURN ROBBERS Masked Men Hold Up Couple in Ellensburg— Linked to Farrell Case ELLENSBURG, Wash., Dec. 12.— Mr. and Mrs. Tony Grubesich were held up in their home last night by two masked men who obtained $65 and a revolver. The robbers arc ibelieved to be the kidfiapers of Clarence Farrell, theatre manager, who returned to his home yester- day after a wild time with his ab- ductors, escaped prisoner Martin to construct a summer cottage at a vacation resort or any other se- lected place. The restriction that is sound or not. Things are so mixed up all round and still are moving so rapidly in made him many times a million-:not more than $2,000 may be ob-|so many directions, that it s hard aire but changed the rolling green pastures over which his beloved ‘white-faced cattle roamed into rut- ted and derrick covered oil fields. “I will never give up my cat-| tle,” he would say. ‘I love a cow | tained for one building is still in effect. “Another important modifica- | tion,” Mr. Pegues declared, “is that | notes may now have a final ma- | turity date of five instead of three better than anything in the world.” l"years." In 1902, the appearance of oil| in a 2,000 foot hole which he had dug for water in the Texas Pan- | handle angered Waggoner greatly. “Damn the oil,” he cried. “I need water for my cattle.” | Cattle laid the foundation for| extent of which few persons, pos- sibly even Waggoner himself, ‘ever knew. It ‘was estimated at many Another Change Until the revision regulations | ‘were issued it was not possible to | obtain a modernization loan for property having outstanding against it delinquent taxes or assesgments, except under quite rigid conditions. |the great Waggoner fortune, the|Now taxes or assessments or in- terest on mortgages may be delin- {quent and the loan may still be obtained if the bank to which ap- millions of dollars. He was said 10 |plication is made is satisfied with have refused $50,000,000 for ‘his ofl | holdings in Northern Texas, and (Continued on Page Seven) ‘WASHINGTON, Dec. 12.—Reiter- ating the same arguments as for the other defaults in the last two years, Great Britain told the United States yesterday it would not pay the war debt installment due this month. Great Britain said the “existing Great Britain Not to Pay War Debt Installment Due the credit risk. A way is also provided for 4 per- son whose income has not now reached the required figure of five times the annual payments on the loan to improve his property. Credit Risk “The liberalization with respect to this feature,” sald Mr. Pegues, “makes it possible for % bank to make a modernization loan to an This Month; Finland Wil | Individual who has not now an in- |come five times the amount of what his annual payments would system of inter-governmental war be, but whose prospects for future debt obligations had broken down.” increase in income are sufficiently '-3;;1 the other hand, Finland f0r- | go0q to induce the bank to believe mally notified the State Depart-|tnas the credit risk would be' a ment she would pay her install-|gooq one.” m‘l‘mw °;‘n::9 ;;;W due. ; | The original regulations provided opean nations e |¢naf gn indtvidual or a com expected to take the same course | i on war debts as Great Britain. | (ConT\nued on Pagev'!'hree- h ) to tell what figures in the fore- | ground are really standing still while the landscape revolves around them. Sometimes public men have thought they were standing still when actually they were not. In the present disordered state of politics, it would be a very accom- plished engineer who could find a fixed point from which exact lati- tude and longitude could be meas- ured. Perhaps any real map-making may have to be postponed until the present gyrations cease. Some day historians may be able to determ- ine just what dislocations did take place during the earthquake: TAKE MR. GARNER Take the case of the govern- ment’s titular second-in-command, Vice-President Garner. It is well known that in the 1932 campaign there were those who urged that he be muzzled because of his suspected radicalism. dIn the 1934 campaign, it was charged he kept silent because he was more conservative than his party. Ac- tually, did he or the party change? Or the case of that other reputed second-in-command, Donald Rich- berg. Is he, or is he not, in his present role of placator of big business, precisely the same Richberg who s0 recently was fighting valiantly for the cause of the working man, " (Continued on Page Seve Hogan and his companion. NINE ENEMIES SOVIET UNION AR SHOT DOWN Executions Bring Total to Seventy-five for “Ter- roristic Action” MOSCOW, Dec. 12.~The list of dead from firing squad bullets fol- lowing the assassination of Sergei Kiroff, high Soviet official, on De- cember 1, is now officially report- ed as being 75. Nine alleged eyemies of the re- gime were executed yesterday. Forty-five others remain to be tried for “terroristic action.” It is said the nine executed yesteday entered Russia from Po- land with bombs and revolvers.