The Daily Alaska empire Newspaper, February 19, 1935, Page 1

THE DAILY ALASKA EMPIRE VOL. XLV., NO. 6888. JUNEAU, ALASKA ‘ALL THE NEWS ALL THE TIME” DAY FEBRUARY 19, 1935. MEMBER OF ASSOCIATED PRESS PRICE fl-.N CLNTS HUGE MILITARY PROGRAM APPROVED GOLD DECISION DEVELOPMENTS ARHSE MANY EXPERTS NOW LOOK FOR LEGAL BATTLES Courts Ma;—é—e Asked to Determine Losses to Bondholders INFLATIONISTS ARE PLANNING CAMPAIGN| Legislative Sltuallon Is| Said to Be Further Complicated WASHINGTON, Feb. ID—Amid’ the New Deal jubilation and world excitement over the gold deeision under which all debtors could con- tinue to pay their gold clause ob- ligations with the present paper | money on the dollar for dollar, basis, some developments arose. | Some experts see the potentiali- ties for future legal battles - by holders of Government gold bonds' who might go to court seeking to show they suffered actual losses in the purchasing power by the Government's abrogation of = the gold clauses. Lo Inflationists Busy Senate inflationists have started a new move to drive the dollar value still further down;, while some others thought the decision might be viewed as a brake on inflationary tendencies. In the cpinion of some exp:-rz,‘ the Government might be called upon ‘to pay huge damages to holders of its gold bonds if the value of the dollar is sliced dras- tically. Hard to Prove Damages Other experts held to the opin- ion that bondholders will find i impossible to prove damages un- less Congress later orders the bonds to be redeemed in gold.‘ and believed there will be difficulty | in proving how much damage has occurred in the abrogation of the | gold clause and how much to oth- er clauses. { Government’s Authority | Inflationist forces gathered be- hind the amendment to the pend- | ing work relief bill in efforts to ]drive down the value of the dol-' ar. Senator Thomas, of Oklahoma, introduced an amendment in which was held the Government’s au- thority to fix the value of money | was completely sustained and he ! seeks to decrease the value of the dollar through issuance of silver | money. This further complicated the leg- islative situation surrounding the Administration’s appropriation bill. An amendment to the cash bonus also must be faced by the Demo- cratic leaders in addition to many | issues in the bill itself. i — Uncertainty of Mineral Fu- ture Removed by Court’s Decision DENVER, Colo,, Feb. 19. — The| West’s metal and mining industry | credited the New Deal with the gold victory in the Supreme Court in removing the chief obstacle of “fear” and will bring rich rewards for the men who seek fortunes in silver and gold. ! Leaders of the mining industry here say the decision is expected to restore confidence in mining and the removal of uncertainty over its future. Flowers Match g;enb LONDON Harmony between flowers in the Mayfair home and the flower scents chosen by the hostess is an idea that is gaining favor. Honeysuckle, jasmine and carnation scents will make the March ballrooms like old English flower gardens. Jail Term for Weddmg Gift? Mr. and Mrs. George Scarlette Charges of stealing his mother. -law’s automobile and some of the family jewels were brought against George Scarlette, above, when he returned to Chevy Chase, Md., after eloping with the former Jane Cooke. Mrs. Scarlette is'a daughter of Mr. and Mrs. Howard De Walden Cooke, social registerites, and_Scarlette. was formerly their c}u\uflelu'. Prlu’ Says Storm Browm g (}n Farley Political Activity FRANCE THINKS U. S. GOLD RULE WILL AID WORLD Pans Financiers Happy Over “Stability” for All Currencies PARIS, Feb. 19.—Financial circles expressed belief today that the de- cision in the gold cases in the United States will contribute to stakility of world currencies and price levels. The court's decision, it is also said, will have its effect on French | economy and various quarters claim ' the cheap money policy of Premier |Flandin will be greatly facilitated. ., 0'CONNOR HAS NEW SLANT ON DOING THINGS| House Chairman of Rules Committee Is Getting Onto Ropes By HERBERT PLUMMER WASHINGTON, Feb. 19. — Time was when a Chairman of the Rules Committee of the House was num- bered among the three potentates of that body—the other two being | the Speaker and the majority floor leader. His claim to the tyiumvirate lay in the fact that his committee controls the destiny of more pro- posed legislation than any other in the House. The Rules committee can report a rule for consideration of a bill any day. It can bring in a rule for consideration of any bill that has been reported out of committee at any time. But, it must be careful to select the bill the majority of the House seems to want most, the rule it brings in must be adopted by the House, The Chairman of the Rules Com- mittee in the present Congress— John J. O'Connor of New York City—a veteran of 16 years’ service, | ularly | ronage. By BYRON PRICE (Chief of Bureau, the Associated | Pres, Washington.) | Develcpments at various of the political compas: ling out Posimaster with increasing fr storm center in the immediate fu- ture of the Roosevelt Administra- tion. The slip over the Sinclair letter during last year's campaign, and| the more recent incident of the rare stamps Farley handed out as souvenirs, representionly minor details of a complicated situation. Within the circle of the Presi- dent's Democratic advisers there have been many murmers about PFarley’s political activities, partic- in relation to Federal pat- G Among the insurgent Republi- ycans who have supported Mr. Roosevelt there is increasingly vo- cal protest because Farley con- tinues to hold both the Postmaster Generalship and the chairmanship of the Democratic National Com- mittee, months after the Presi- dent publicly condemned the prac- tice of party officials being also public officers. Now that Norris of Nebraska, one of the most intrepid of the Roosevelt Republicans, has begun to complain against what he calls “Farleyizing” the government, all Washington is on the lookout for some real excitement. MOFFETT DISAPPOINTED A. Moffett, ator, have that he to private Friends of James the Housing Admini heard without surprise plans soon to return life. When he took charge of the housing campaign last summer, Moffett was one of the most op- timistic of the “new deal” enthus- iasts. He predicted a great outpouring of capital and credit for home construction, and talked of putting 5,000,000 to work. That would have meant the end of the un- employment crisis, possibly the end of Federal relief. Employment has increased some- what in the building trades, and some new money has been put into construction. No exact fi- gures are available, but no one contends the results have come up to Moffett's predictions. Big business still hesitates, and the Government is turning to new methods of stimulating recovery. {Valdez Man Describes Ni Transportation Here to Miners |CLARENCE POY iS ‘ SPEAKER IN N. Heavy Fl’fl;l‘l_t" Hauling ln Air Used in Place of Sleds NEW YORK, Feb pioneering of Alaska, with airplanes | instead of dog teams, was described |to the American Institute of Min< ing and Metallurgical Engineers bV | Clarence Poy, of Valdez Poy told a rew story of I!yh'\g which promises the industrial eon= quea’ of one of nature's last moun= iu:m strongholds of rich minerals \whuh is guarded by glaciers. Mill Is Flown 19.—A new Poy said a complete 16-ton mill | was flown to one mine, together with supplies for a bunkhouse and food, ighing an additional two This feat was accomplished \uhm one week last season and |the same job would have taken an, entire season by other tmnspo:*a- { tion. Cest Is Cheap In one district near said, 6 tons of mining machinery and supplies were flown last year without damage or loss at a cost. {of about four cents a pound against | |20 to 35 cents by other means. An engine was carried in two hours from the coast to a mine| and was in operation within 24 Ihours. ‘ Dynamite’ was also dropped st cessfully :nto snowbanks during vlu‘ |summer by plane. ., NEW BILLS AIMED TOPROMOTE MINE INDUSTRY HERE Creati on—of_Departmenl with Staff of Experts Urged in Senate —r ‘Two bills aimed to promote min- ing in the Territory were intro- duced in the Senate yesterday afternoon when that body con- vened after the week-end trip to Sitka. Brought in by the Commit- tee on Mining and Manufacturing, one would create a Department of Mines with management and di- rection vested in a Commissioner of Mines and the other authorizes the department to conduct a con- tinuing survey of mineral resources and mining operations with a view to perpetuate and assist prospectors and miners. Similar bills were in- troduced in the House today. Appointed by Governor The Commissioner of Mines would be appointed by the Governor with the consent of the Legislature and be given a salary of $5200 an- nually. He would be required to be an expert and his assistants would have to be men qualified as mining experts. Under the proposed act $57,000 would be appropriated for setting up the department and conducting it until February 28, 1937. The measure carries an emer- gency clause. The companion bill would place with the Department of Mines all the duties now handled by the Territorial Mine Inspector, Federal Mine Inspector or the Supervising Mining Engineer of the United States Bureau of Mines and Geo- logical Survey of Alaska. Its pro- gram would be to promote the mining industry, safeguard the lives and health of miners; protect in- vestors in mining industry, and give assistance to minert and prospectors. The Housing Adminisiration came in with a great burst of publicity; (couumm en_Page Two) “(Continued on Page Three) To Assist Prospectors To assist miners and prospeclors («onrnuec nn Page Two) i ) | — - Whispers growing m London assert that David - | Lioyd George, the “Welsh Wizard” Valdez, Poy Great Britain war-time prime min his ministerial robes and return cabinet in some rolc.,,_’l"h« rumors Wales, empire, to be * who served as er, may don to the British followed Lloyd five members, CITIES, TOWNS TO SHARE UNDER RELIEF MEASURE New Senate Bill Would Re- quire Incorporated Places to Pay Half Withdrawing his original relief bill with the consent of the other Sendte members, Senator N. R. Walker introduced a substitute re- |lief measure yesterday which would require that all incorporated cities and towns contribute 50 per cent toward relief of their own muni- cipalities. ‘The bill, an emergency measure, |asks that $30,000 be appropriated |for the relief of destitution in the Territory, the proposal being in line with the request of Harry Hopkins, Federal Relief Administrator, that States and Territories share half the burden of relief. Suggests General Donation Senator John B, Powers of Eagle suggested that places outside of incorporated towns also be asked to contribute but Senate members took no action to include the suggestion in the bill on grounds that due to the ‘lack of an official central body in most isolated communities it would be impossible to work out such a plan. All monies expended under the act would be under the direction of the Governor as provided for in the original bill. Two other measures were sub- mitted, one by President Hess amending the present law regard- ing formation and activities of cor- porations and the other, also a law revision bill, brought in by Senator Roden which would make the per- son in charge of construction, re- pair or improvement of a building the agent of the owner. Conference Committee President Hess named Campbell, Powers and Frawley a committee on free conference to confer with the House committee on amend- ments to the Murray fish trap abolition memorial in which the House refused to concur. The Sen-! ate amended the memorial to take! out the word “immediate” and add- ed provisions which would bar non- resident, fishermen. e — A total of 1289 vessels were fu- migated at United States ports to free them of disease or rats in the last. fiscal year. Protector of Man i ‘Champion of the male, Mrs, Blanche Hower, state 0., in- representative from Akron, troduced a bill in the Ohio leg lature outlawing all civil suits for breach of promise or alienation affections. NRA MESSAGE 18 DUE NEX 19.—Pr WASHINGTON, Feb. NRA will probably go to Cons tomorrow. It was stated at White House this afternoon the message has not yet completed. e t tk PALERMO, Sicily—Berth: $2,000,000 project entailing n ing machinery and better facilit for passengers. ———— Louisiana’s 1934 rice crop | estimated ~officially at | bushels, esi- dent Roosevelt’s message on a new Tess been Demotorizing Poland for big ships are to be provided here by was 15,926,000 L] With his pet dog at home. George’s celebrated bivthday speech at ‘Bangot, in which he proposed a “New Deal” for the financed by a “prosperity loan" and administered by a super-cabinet of not more than 'ROADS, RELIEF CONTROVERSY BEFORE HOUSE . [EXPENDITURES FOR WAR DEPT. ARE ENDORSED House:Appropriations Com- mittee Takes Im- portant Action ESTIMATES LARGER THAN FOR 15 YEARS 'Both Army siid Navy Bud- gets Started on Way Through Congress | | | WASHINGTON, Feb, 19.— | The largest military spending program in 15 years s been |started through Congress | with the House Appropria- ticns Committee writing “Okeh” upon the expenditure of $318,031,482 by the United ’Sllllf:‘ Army during the fiscal vear ending June 30, 1936. | The committee also told {the War Department it might i pledge an additional $71,500,- 1600 for planes. The total recommended was $48,815,000 more than the 1935 appropriation. Taking the Navy into ac- ;crunt the committee report «aid the 1936 budget for na- { tional defense is approximate- ly $100,000,000 in excess of the largest regular annual ap- | propriation made for national ;defense since the enactment of the budget in 1921. ——————— | | Omnibus Bnll with Aim oLEXEGUTIUN UF Getting Federal Aid Being Considered Putting the nerring reduction lant memorial and the eight-hour | ay bill over until the end of the calendar late this afternoon, the Territorial House this morning cen- tered its attention on proposed road measures and the plan to draft an omnibus bill including them all % with the hope of obtaining Federal funds for the projects as relief undertakings. The opinion of some of the mem- . % bers, especially those of the road committee who have been in con- i1 ference with the Highway Engineer, | is that if all the road bills are 1 grouped in one measure with a | Territorial appropriation attached { the Federal Government will match the sum, thus supplying twice as much money for projects and giv- poor defenseless g work to a larger number. Plans Memorial Chairman Howard Lyng of the js. Roads and Highways Committee read a memorial which he proposes to introduce tomorrow which would of st up such an arrangement, Controversy over the matter started when the Lingo bill asking $6,000 from the Fourth Division road funds be sét aside for road improvements in the Nenana dis- trict came up. Speaker Hofman suggested the bill be returned to the roads committee to put in the omnibus measure but George Lingo, author of the proposal, objected on grounds that he had no assurance the Federal Government would ee 10 the relief project plan. Valdez Road The Patterson bill, which pro- posed a road in the Valdez sec- tion, Third Division, was next in order, and it asks a direct appro- priation of $7,500 in addition to $7,500 from the Third Division, the balance of $30,000 to be raised in the community affected, James A patterson, sponsor of the measure, e W like Lingo, wanted his bill to go T he hat docks and slips, motor-driven 1oad- on in the regular routine to third ie5 reading and final action. After considerable discussion in committee of the whole, it was de- cided to refer the Patterson bill to (Uummnd ou Pul Twr‘ ‘ B. HAUPTMANN GIVEN DELAY Appeal from Conviction Is Filed in Court of Er- rors and Appeals | TRENTOwN, N. J., Feb. 19. Bruno R. Hauptmann, convicted last week of the slaying of the Lindbergh baby, has won a respite from death for at least seven months. Hauptmann's appeal from the conviction was thrown before the ‘Court of Errors and Appeals today when attorneys applied for a writ of grace. The appeal ordinarily will be heard in May but what with a further appeal to the Court of Pardons possible, the death sen- tence, even if upheld, would not be executed until September or October. The defense might require such additional time to prepare an ap- peal and it might ask for a post- ponement of argument from May until the October term of the Ap- pellate Court, thus the execution of the sentence, originally set for the week of March 22, might still be further deferred. Lieut.-Gov. of W ashington Springs Good One OLYMPIA, Wash,, Feb. 19.— Lieut.-Gov. Vic Meyers, orches- tra leader, yesterday escorted his 84-year-cld mother to the restrum in the State over which he presides, seated her beside him. Meyers then turned to the members of the Senate and said: “As the next to the youngest of 168 children, I weculd not be here tcday if my parents had knewn anything about what we were discussing last week, the birth ecatrol bill.”