The Daily Alaska empire Newspaper, December 11, 1935, Page 1

NAVAL DEMANDS » THE DAILY ALASKA EMPIR “ALL THE NEWS ALL THE TIME” VOL. XLVIL, NO. 7140, JUNEAU, ALASKA, \’7EDNI:SDAY. DECEMBER 11, 1935. MEMBER OF ASSOCIATED PRESS PRICE TEN CENTS - WHITE METAL MARKET AGAIN | IN BAD SHAPE London Trading Collapses —No Price Made Public Today UNITED STATES IS NOW CHIEF CENTER Treasury Department Pass- es Word Along to Con- tinue Purchases i | NEW YORK, Dec. 11.—The Lon- don silver market, which suffered a collapse yesterday, is still stale- mated today. One United States senator hinted that British financiers are trying to) halt America’s silver-buying policy No price for silver was fixed to-| day in the London market. For the | third successive day prices were un- | announced there as brokers awaited | further information from America. Government officials in Shang- hai and Chinese brokers awaited | apprehensively some indication of the future course of the United States silver policy, advices receivod here indicated. Anxiety was expressed for China's new monetary program if the silver| price continues to drop. | The United States Treasury pass;-| ed along the word to carry out the silver purchase policy laid down byi Vice President, Max Dorman; Sec-| Union. Congress. United States Senator Key Pitt- man of Nevada declared: “Eco- | nomic and financial control in Great yrer, Earl Watkins; Trustees—Har- 124 not been met, Britain is violently opposed to the| United States silver policy.” PRICE FINALLY SET NEW YORK, Dec. 11.—After aj| delayed opening in London, the New York price of imported bar| silver was set at one cent lower, at 62% cents an ounce. The earlier!| deadlock in the world silver mar-| Christmas tree program for all Ju-| Weapens, kets was broken as the London market was able to establish a, price after failure to post any quotation Tuesday. Dealers here understood that me‘gmm, the Juneau Mine Workersflf any trouble resulted it was the| United States Treasury, whose with- | drawal yesterday demoralized the Riot Squad_s 7 On Guard at China Univ. Students Make Demonstra- tion Against North China Autonomy PEIPING, Dec. 11.—Riot squads, armed with swords and pistols, have been stationed at the entrances of the universities in the Peiping area to prevent any new student out- breaks. Classes have been suspended as a result of the last student dem- onstration against autonomy in North Ghina. KIRCHOFFER CHOSEN HEAD FOLTA STARTS |WALLACE ASKS ARGUMENTS TO | FINANCES BE JURY ONRIOT REDISTRIBUTED 179 Witness—:s—(:alled in|Report of Se_cr;tary of Ag- Presentation of Case riculture Stresses Emer- Begun Month Ago gency Aspect of AAA | Arguments in the riof trial which| WASHINGTON, Dec. 11.—Secres cpened just a month ago, on Novem- | tary of Agriculture Henry A. Wal- | ber 12, were started in Federal dis-lace pictured redistribution of In- | trict court, Assistant District At-|come as a prime necessity which the | torney George W. Folta opening for nation eannot escape. |the government. The prosecutor | In his annual report issued today, was analyzing the evidence pre-|Secretary Wallace favored increase sented against each of the 24 de-|in the proposition of the national in< | fendants and it was expected to come which goes to poorer persons, take most of today. The defense s;holdmg that this would increase con- | expected to take a day in presenta- |sumption and and therefore make tion of its arguments, the case prob- | for expansion of production by fae- ably going to the jury sometime Fri- | tory and farm alike day. | Secretary Wallace laid particular The trial, one of the longest held | €tress on expansion in contrast to in a court here in years, saw the pre- |the AAA’'s crop reduction programs sentation of 142 witnesses by the gov- | Which officials have described as Ji Ml wl Asle‘cmmenL and 37 by the defense. | emergency measures. He contended Election Held Yesterday— Dance on Saturday— Christmas Tree As a result of the election held yesterday by the Juneau Mine Workers Association at the A. B. Hall, the following officers were| | elected for the six months’ period beginning December 14: President, Ed Kirchoffer; First ond Vice-President, Ronald Lister; Secretary, James Lynam; Assistaat Secretary, Ray Richardson; Treas- old Hargrave, C. E. Gordon, Olaus Larsson; Sergeant-at-Arms, Hen:y Anderson. It was announced last night that the Juneau Mine Workers Associa- Seventeen of the defendants took the | that these programs were made ne- stand in their own behalf, seven|cessary by higher tariffs, and said not testifying. that complete industrial agricultural Trouble June 24 | balance and coordination are essen- The 24, with several others not,tial to full economic recovery. apprehended, are accused of rioting “Partial coordination, undertaken lon last June 24 by blocking the from the standpoint of individual Istreet in the vicinity of the union |industries, must give place to @& I hall when a group of men marched general comprehensive coordination down Lower Front Street toward aimed at increased production and [the A. J. mine to register for em- increased payrolls he said. “If we ployment following the shutdown 3¢ toehave all employment at full i which culminatéd the calling of alProduction we shall have increased |strike by the Alaska Mine Workers Digher living standards. How to Defendants taking the &chieve coordination for a balanced |stand in the present case declared expansion is the problem which now i they were still on strike at the mine, 3Waits our solution.” | contending the demands of the unio Charge Force Used n - e 5 { 1t is the contention of the govern- | D | ment. the . strikeys used force and, | vilence in attempting to stop men P, tion will hold a dance at the A, B, | {rom going to register for work. Wit- Hall next Saturday night, December |DeSses were called who testified to 14, from 10 p.m. to 2 a.m. Proceeds | Se€ing some of the strikers with clubs, | of the dance will be expended for a | Stones, a stove leg, bricks and other and evidence of assaults neau children to be held in the A. B. Hall on Christmas Eve at 8 o'clock. Preceding the Christmas tree pro- Association will install the newly elected officers at a meeting to be ON A.J. CARGO The defense held the men on Says He Ordered Sailors |trial did not riot, used only peace- | Not to Unload Alaska as | ful methods in picketing, and that | Protective Measure fault of special ofiicers who escorted | the marchers down the street. Som2! Tast night sailors aboard the Alas- market, placed small orders in the ! held at 6:30 pm. Following the|of the defendants denied having ka refused fto unload freight from British capital to establish a price. The new London price was 60.400 cents an ounce. e FERRY RUNS RESUMED ON PUGET SOUND Month-Old Strike Ends with Appointment of Arbitra- tion Board by Gov. OLYMPIA, Wash., Dec. 11.—+Fer- ry line operators on Puget Sound and striking employees signed an agreement yesterday in the office of Gov. Clarence D. Martin which provided for complete resumption of service on all five transport lines this morning. In compliance with the agreemem: Gov. Martin in five days will name three citizens as an arbitration board to complete findings and make an award on January 20 whicn will be effective until October 1, 1936. WILL SALVAGE CALL'S PLANE ANCHORAGE, Alaska, Dec. 11.— The Star Airways is prepared ml send a plane and party to Dming—| ham next week to salvage the Air-| ways' plane which Estol Call was | flying when he and Stanley Her-| manson were injured in an accident there last week. — .- LEAVES ST, ANN'S Mrs. I Lepetich and her baby girl returned to their home today from St. Ann’s Hospital. { — e — MRS. STONE HOME | Mrs. Betty Stone was dlsmusedi from St. Ann's this morning in an * improved condition. St S G | Lisle Hebert, Schwabacher Hard- | ware representative, arrived home on | the Alaska last night. | Christmas tree entertainment, a dance and reception will be held. B i BIG SNOWFALL BLANKETS CITY Seven Inches Falls in 20 Hours Here — More Due Tomorrow Exceptionally heavy snows fell on Juneau last night, with a total of seven inches falling between 4 p.m. and noon today. A total of 11.7 inches of snow fell between 4 a.m. yesterday and today noon, making a total of 20.5 inches during the present fall. The average depth on the ground today was 20.5 inches. ‘Annex Creek reported the most un- usually heavy snow fall, however, with no less than one foot falling between 6 p.m. yesterday and 11 this morning. The snow on the ground there averages a depth of four feet. There will probably be more snow tonight or tomorrow, according to Weatherman Howard J. Thompson, and it will be cloudy and colder. | seen a blockade in the street. the vessel which was consigned to Defendants the Alaska Juneau mine, giving as The 24 men, whose fate will be de- their reason that they had instruc- | cided by a jury, are: Sven Saren,|tions from the maritime union in | Cliff Matthews, Nick Kobak, Evan ' Seattle. Dzaloff, Alex Daroff, George Kod-| Interviewed in Seattle today by the zoff, Ivan Diboff, Frank Agoff, Bill' Associated Press, James Engstrom, Taroff, 8imon Graner, Ed Rennie, ' District Secretary of the Maritime Tiny Farlin, Mentur Petersen, Abel | Federation for the Pacific Coast, said Anderson, Ernest Giovanetti, Jack | refusal of the crew to unload A. J. Romer, Warren Beavert, Bennie Lar- | freight followed 3115 orders. Eng- sen, N. R. Correll, Roman Ellers,|strom gave the following statement Marion Warner, Matthew Sumara,|in Seattle to the Associated Press Harry Datoff and Leonard Ball. and The Empire: The Jury #. .. %1 ‘The crew was notified before the nie M. Parker of Gustavus, Miss|cargo if the union longshoremen at Emma Samato of Killlsnoo, W.. N.|{Juneau still refused to handle it. Cook of Sitka, V. C. Spaulding of | The longshoremen have put a ban on Lynn Canal, Mrs. Frances Round-|handling such cargo. Our men, tree of Petersburg, Mrs. Fanny Un-|who have had to unload such cargo gerforeren of Skagway, the Rev.|on previous frips, reported they David Waggoner of Juneau, Mrs.|had trouble when they were ashore. The jury is composed of Mfs. Jeh- | ship sailed from here not to handle | contrary to the Ludwig Froelander of Skagway, E. H. Richter of Skagway, C. C. Clausen of Petersburg, Henry Kucken of Juneau and Ed Nelson of Peters- burg. VETERAN BROKER FACES CRIMINAL STOCKS CHARGE Meehan, Wall Street Brok- er, Acused by Securities Com: of Manipulation WASHINGTON, Dec. 11. — A charge of criminal manipulation of the stock prices of Bellanca Aircraft Corporation was today directed at Michael J. Meehan, veteran Wall Street trader, by John J. Burns, chief counsel for the Securities Commission. FAN DANCER 1S SLAYE Entertainer and Tavern Owner Found Shot, Killed, in Auto CHICAGO, 1Il, Dec. 11—Lillian Mann, agpd 32, fan dancer in night clubs and taverns, and William B. vUnlon miners and longshoremen |called them scabs and fights fol- lowed. We had to take this step to protect them.” At the same time Charles R. Hope, regional director for the National told the Associated PPress he was continuing investigation of the com- plaint filed by the mine, mill and smelter workers union in Juneau against the Alaska Juneau 'Gold Mining Company. He said he had received the company’s reply to the complaint and expects to make a decision within the next several days. B TWO FORESTRY MEN RETURN ON ALASKA Two Forest Service men returned to Juneau aboard the steamer Al- aska. Administrative Assistant Charles G. Burdick is back from a month’s combined business and pleasure trip | in the course of which he inspected | CCC work and equipment in the Labor Relations Board in Seattle, | Weir, aged 40, were found shot to In opening a Commission hearing death last night in an automobile in the suburbs. The police believe the woman shot | to determine whether Meehan should be expelled or suspended from exchanges, Burns charged cre- ‘Weir, tavern keeper, and then her-|ation of an artificial stock price for the purpose of “unloading.” G R e JEWELL DUE TODAY e Game Warden Homer Jewell was CCC WORKER HURT due to return to Juneau today aboard Olaf Aasen, CCC worker in the Game Commission boat Seal. He Douglas, entered St. Ann’s Hospital has been on a two-week routine following an injury to his foot. patrol. self. ‘Weir was a married man and the | father of a 10-year-old son. | B vicinity of Seattle, Portland and Missoula, Montana. Forest Examiner J. P. Williams returned from a ten-day survey of rifle range sites at Ketchikan and | Petersburg. A range will probable be constructed at Petersburg soon, but no’plans have yet been made for the Ketchikan field. S eee | LEAVES HOSPITAL R. R. Hermann was dismissed to- |day from St. Ann’'s Hospital. i | Great Britain ‘ tTo Default Again On Debt Payment LONDON, Dec. 11.—The Brit- irh Government annoznces that Great Britain will default in the semi-annual payment due De- cember 15 in the war debt to the United States, ARGUMENTS ON NEW DEAL ACT ARE POSTPONED Sudden Illness of Solicitor General Reed De- lays Action WASHINGTON, Dec. 11— The sudden illness of Solicitor General Stanley Reed today forced suspen- slon of further arguments in the Supreme Court of the United States on the Bankhead Cotton Control Act, a New Deal measure Reed was stricken yesterday af- térnoon, 15 minutes ahead of the day's schedule which also forcad adjournment of the AAA hearing. | The Supreme Court however took the case under advisement and a de- cision may be expected in January. What Aet s The Bankhead cotton control act, over which a legal storm for months | has been brewing, represents the first | effort in American history for Fed- | eral Government control of produc- tion of a major crop and upon it is based a law for the control of tobac- ©0, another great “money crop.” The Bankhead measute empow- ers the Seceretary of Agriculture to allocate to cotton growers, upon the basis of past ylelds, an allowed quota of production. He issues certificates representing this quota to each farm- {8 who “may grow and sell that 1 Specified amount without the pay- ment of any tax. Let him get above the quota, however, and a tax repre- enting half the market value of the cotton is slapped on. Criminal pen- alties are authorized for handiing uncertified cotton—a maximum fine of $1,000 and a six-months’ jail sen- tence, The first of the suits to reach the court, a challenge to the constitu- tionality of the measure made in the course of an action by Lee Moor, a Texas cotton grower, against the Texas and New Orleans railroad compaxny, embodies most of the as- serticns made in the Talmadge ac- tion, but the latter covers broader constitutional ground and is regard- ed as affording a more direct test. Suit’s Claims The Georgia suit comes directly to the court, whereas Moor's com- plaint went by way of U. 8. District {and Circuit Courts. On no less than eight constitutional grounds does Georgia attack the act. It is claimed to be: 1 An effort at production control 10th amendment, which reserves to the states the powers not delegated to Congress. (It is contended thus that if any power exists, for controlling pro- duction it is in the states and not in Washington.) In violation of provisions author- izing the levying of taxes only for revenue. (It is climaed that the Bankhead tax is punitive in purpose, merely an ‘“assessment” as a lever for controlling production and price.) Not authorized under the clause giving Congress the right to regu- late interstate commerce. ((The assertion is that production and even primary marketing of cotton is wholly intrastate, or local.) In violation of clauses providing taxes shall be uniform. (It is as- serted that the Secretary of Agri- culture is allowed under the act to make different tax exemptions in different states.) In violation to provisions vesting all legislative power in ‘Congress. In violation «of pther provisions in that it delegates to farmefs the right to decide whether taxes shall be levied in future. Centrary to the fifth amendment, in that is brings about deprivation of property without due Process of law. % The Moose case brought up the is- sue in a rather curious way. The railroad declined to ship Moose’s cot- BY ETHIOPIA Addis Ababa Says Selassie Would Lose Throne by Scheme MUSSOLINI SAID TO FAVOR NEW OFFE French and British Are Still Working on Plan to End Conflict LONDON, Dec. 11.—The program of Great Britain and France for peace encountered an early obstacle today, with Ethiopian officials as serting that Emperor Haile Selassie would lose his thrope if he dared to accept the proposals. Addis Ababa officials said that the northern Tigre province must be kept by Ethiopia lest native chieftains rise in revolt on the grounds that they could have de- fended the province successfully. Both London and Paris prepared to postpone the League of Na- tions' meeting scheduled for to- morrow, to consider the additional penalties just as a final gesture. | They intend to ask the League Committee of Five to take over ne- gotiations and carry them to com- pletion. No official hint of Premier Mus- solini’s reaction was heard in Rome, although Paris sources asserted he looked upon the peace program with favor. Meanwhile Fascists are anticipating further military ad- vances to strengthen Italy’s diplo- matic dealings. “NO” SAYS ETHIOPIA GENEVA, Dec. 11—Ethiopia has said “no” to the latest effort to end the war by negotiations. Hardly had the peace terms agreed Blumenfield |dentified by | Mrs. Liggett Wife of Slain Publisher Picks Assailant from Lineup of Seven Men { MINNEAPOLIS, Minn., Dec. 11.— John Hilborn, detective supervisor, announced this morning that Mrs. Walter Liggett positively identified Isadore Blumenfield, liquor agent, as the slayer of her husband, crusading | Minneapolis publisher of the Mid- | west American, who was shot down ) Tuesday night. | Mrs. Liggett picked the suspect !from a lineup of seven men in the city jail. Blumenfield was the object of a scathing attack in the last issue of the Midwest American, where Lig- gett named him as the head of a “vice ring” which, he charged, was protected by city, county and state officers. Liggett, who had anticipated a violent death, due to his fearless at- tacks upon men of prominence, 1s reputed to have secreted damaging evidence sagainst numerous persons somewhere in the East. It is rumored this material will be turned over to police investigators by Mrs. Liggett. Gov. Floyd B. Olson, whose admin- istration was constantly attacked by Liggett, expressed himself “‘surprised and grieved” at the violent assault. He pledged the untiring services of the state criminal irivestigation bu- reau to “find a solution to this out- rage against a man of integrity.” Had Liggett lived, he would have appeared today before the State Leg- islature to ask the impeachment of ‘Gov. Olson on evidence of “govern- ment corruption” he had declared himself ready to present. P Liggett, before entering his color- ful career in the states, was the editor of the Skagway Daily Alaskan. upon by Great Britain and France been dispatched to Addis Ababa, be- fors the Empire’s Minister in Paris announced, according to official ad- vices received here, that his Govern- ment is unalterably opposed to any terms which would “reward Italian aggression.” The Ethiopian’s Minister also add- ed that Ethiopla will adhere to the principle of territorial and political integrity. The peace formula is understood to encompass cession of considerable land to Italy in return for the lat- ter's providing Ethiopia with an out- let to the Red Sea. 1 Advices received here from Rome WwWRANGELL, Dec. 11.—Commit- says the Italian Government remains tees have been named by the Demo- silent. cratic Divisional convention being S held here and were expected to re- port late this afternoon, following an adjournment which was taken while the delegates attended the | Davis and Robert Bender of Juneau, : e . 'Don Miller of Wrangell and W. B Cabinet Makes Quick Ac-|sharpe of Ketehikan. On the nominating committee are ceplance—-]ost? Barpel William T. Mahoney and Robert Takes Executiveship Bender of Juneau, James Nolan of { Wrangell and Neil Reid of Ketch- HAVANA, Cuba, Dec. 11.—Presi- ikan. dent Carlos Mendieta has resigned,) Wrangell and the convention were the upshot of a political quarrelgs.addened today by the funeral of over election procedure. The resig- Mr. Grant, long a well known resi- nation was submitted to the Cabi-'dent of Southeast Alaska. Business net at a post-midnight session and |houses here closed and the floral accepted. | tribute probably was the largest ever DEMOS NAME COMMITTEES AT WRANGELL Juneau Well Represented —Convention Pays Tri- bute to J. C. Grant !funeral of J. G. Grant, Wrangell (hotel man, who died a few days ago in Seattle. The platform committee is com- posed of J. E. Pegues, Alice Cough- lin, Mrs, W. A. Holzheimer, J. V. Jose Barnet, Secretary of State, took the Presidency and immediate-~ ly reappointed the Cabinet members to their positions. Earlier in the evening 14 armed men are reported to have wrecked radio station CMQ and Mendieta immediately cancelled his sched- uled broadcast to the United States. —— e PERCY HUBBARD ON ALASKA FOR INTERIOR Percy Hubbard, Fairbanks aviator, is a passenger aboard the Alaska en- route to Fairbanks after a visit at Eli, Nebraska, at the home of the parents of Pilot Arthur Hines, Hub- bard’s former partner, who was lost ton from Clint, Texas, because it did | with three passengers—Mr. and Mrs, not bear the certificates. He sued John Lonz and Alton Nordale—while for an injunction to force acceptance lenroute in Hines' plane from Daw- of the cotton. The processing tax, son to Fairbanks. keystone of the AAA voluntary farm —_——— - programs, is not at issue. ARNOLD ON RADIO STAFF C. 8. Arnold, U, 8. Signal Corps |radio operator, arrived from Seattle Paul Isaacson of the Isaacson Iron on the Alaska to join the Juneau Waorks, Seattle, arrived on the Alaska/ staff. Arnold was on the staff when from Seattle and is a guest at the cable was operated and left Juneau Gastinau Hotel, 4 eight years ago. seen at a funeral in Alaska. Ser- | vices were under the direction of M. !E. Monagle, Exalted Ruler of the Juneau Elks lodge of which Mr. |Grant was a _member. e ———— $IX HUNDRED STUDENTS 60 OUT, STRIKE 11~ | MULBERRY, Kansas, Dec. Mayor G. H. Gilbert and council- ,man Jon Gaunce have resigned and seven other councilmen have threat- | ened to do so after a strike of 600 students protesting to mnon-pay- | ment of salaries to teachers. The students refuse to go to classes. ‘The council the proposal to pay the school board 182000 for'an abandoned building to furnish funds for the salaries. previously rejected E MADE BY JAPAN PEACE PLANS ARE BLOCKED | CONFERENCE IN LONDON HANDED FULL PROPOSALS Admiral Nagano Presents Just What Japanese Kingdom Wants EQUALITY WITH ALL POWERS REQUESTED Discussion, Declares Ob- servers, May Wreck Deliberations LONDON, Dec. 11. — Ad- miral Osami Nagano, head of the Japanese delegation at- tending the Naval Confer- ence, today placed Japan’s demands for a navy as large as any major world power, squarely before the delegates. The demands were the sec- ond round of the discussion of naval problems which threatens to wreck the pres- ent parley. Admiral Nagano was the only speaker at the session today which adjourned early this afternoon until tomorrow when the American and Brit- ish delegates will make reply to the Japanese demands. JURY CHOSEN FOR ERLANDS POINT TRIAL Brother of Defendant Ac- cused of “Threatening State Witnesses™ PORT ORCHARD, Wash., Dec. 11. —A jury of four women and eight men for the Erlands Point massacre trial was completed late yesterday afternoon, after special prosecutor Ray R. Greenwood accused Gus Hall, brother of defendant Leo Hall, of “threatening state”s witnesses” and demanded his removal from the room. Judge H. G. Sutton allowed Hall to remain. The collapse of D. M. Deal, Brem- erton electrician and prospective juror, caused a short recess. Deal was later excused because of his illness. Mrs. Peggy Peterson Paulos, Hall's co-defendant, hid her face in her hands when Greenwood deseribed the murder scene to the jury. WOMAN’'S DEFENS) PORT ORCHARD, Dec. 11.—De- fense for Paggy Paulos cast its lot with the prosecution in an attempt to send Leo Hall to the gallows for the Erlands Point mass murder, Ralph A. Horr, of Seattle, her attorney, in an opening statement told the jury how the case was solved through her voluntary con= fession. NORTHWESTERN 1S STORMBOUND ANCHORAGE, Alaska, Dec. 11.— | Hotels filled, several visitors rented | apartments while awaiting the ar- rival of the steamship Northwest- | ern, stormbound at Kodlak Island, | enroute to Seattle. Among the waiting passengers are Mrs. Ross L. Sheely, wife of the Federal Farm Colony Manager, and her daughter, who plan a visit to relatives in Arizona. ¥ } i H