The Daily Alaska empire Newspaper, May 18, 1936, Page 1

THE DAILY ALASKA EMPIR VOL. XLVIIL, NO. 7177. “ALL THE NEWS ALL THE TIME” JUNEAU, ALASKA, MONDAY, MAY 18, 1936. " MEMBER ASSOCIATED PRESS PRICE TEN CENTS GUFFEY COAL ACT IS KNOCKED OUT 1935 RELIEF ACT IS DECLARED VOID COLONISTS HEAR NOTED VISITORS AT CELEBRATION Matanuska's First Birthday Commemorated by Gov. Troy, Director Gruening PALMER, Alaska, May 18—Mat- anuska Colonists dropped their work Saturday and poured into town for a gala anniversary celebration mark- ing the close of their first year as pioneers upon the Federal govern- ment’s land settlement. Dr. Ernest Henry Gruening, view- ing the valley for the first time, com- pared the hardships of the early American and Alaskan pioneers with The provisions made for the comfort of the Matanuskans and told them briefly: “You are lucky.” Gov. John W. Troy prophesied that affairs of the colony will soon be left to the colonists and said: “You will be running this show in a short time.” A big sports program, which in- volved rolling pin contests, bicycle riding, pie-eating, greased-pig chas- ing, and other novelty competitions, was held as part of the celebration, which was, attended by Claire La- Flame, of Shellac, Wisconsin, who left last summer but has returned and will find a new home in the colony. MAKE NO APOLOGIES ANCHORAGE, Alaska, Muy 18. — Gov. John W. Troy, speaking at a banquet in honor of Director of Territories Ernest Henry Gruening, said he had no apologies to make for “dunning the Federal govern- ment for money.” Alaska’s chief executive declared Tax Boost On Incomes Soon Before Senate Treasury Now Considering Compromise in Revenue Bill—Fate Uncertain WASHINGTON, May 18.—Awali ing the Treasurj|: estimate on its compromise revenue plan, the Se ate Finance Committee discussed technical questions of the involved ‘windfall” tax provision in the House tax bill Chairman Harrison said the Treas- ury will offer its estimate today and predicted that they would “get this bill out about the middle of this week.” The compromise involves a boost in levy for all persons who pay in- some taxes from the present 4 to 5 percent and levies a flat tax ot 18 per cent on all income of cor- porations and a surtax of 7 per- cent on undistributed corporate profits. The income tax boost, which will affect more than two million per- sons, is uncertain of its fate in Con- gre: ~ ., REAR ADMIRAL CRAVENPLEASED BY TERRITORY Head of 13th Naval District Describes Alaska Coast- that in doing so “we are only ask- li “Vital” ing the United States to pay taxes | e as 1ta on its extensive holdings. If we were given the United States prop- erty we could develop it to pay our own taxes and be self-supporting.” Thomas C. Price, Anchorage at- torney, deplored the “extensive red tape and other obstacles confront- ing any development of Alaska's re- sources.” Director Gruening said he be- lieved in the spirit of the speak- ers. ALASKA UNIVERSITY COMMENCEMENT TODAY FAIRBANKS, Alaska, May 18.— The Fourteenth Alaska Commence- ment exercises of the University of Alaska are being held here today in the new concrete gymnasium. There are seventeen graduates, among them being Richard Dale, Albert Dorsh, Donald Fowler, Glenn Franklin, George Henton, Reino Hutalla, Win- nifred MacDonald, Helen Linck, Aben Shatlitt, Louis Smith, Edwin Stevens, Leonard Thompson, Jos- eph Walsh, Paul Wickstrom. Addresses Dr. Ernest H. Gruening gave the Commencement address and is also to' speak at the banquet tonight. Guests include Gov. John W. Troy, Otto F. Ohlson, Ike Taylor, Har- | ry G. Watson and regents from the various cities including Mrs. James Wickersham of Juneau. Three of the graduates are from ‘Washington, one each from Oregon, Montana, Indiana and the remain- der from Alaska. Fourteen gained all credits. Dr. Gruening will try and visit McKinley Park tomorrow, fly to Nome Wednesday and return here and leave by plane for Juneau with Gov. Troy on Thursday. Mr. and Mrs. George A. Lingo came to Fairbanks with the party. $17,000 Grant Is Made to Alaska Univ. FAIRBANKS, Alaska, May 18. — President Charles E. Bun- nell announced at the Com- mencement ceremony at the University of Alaska today that he has received word that the Rockefeller Foundation has awarded the University $17,000 Much impressed with his first | visit to Alaska, Rear Admiral T. T. | Craven, United States Navy, Com- | manding Officer of the 13th Naval | District and Commandant of the ! Puget Sound Navy Yard at Brem- | erton, ‘Washington, accompanied by his aide, Lieut. F. P. Old. passed | through Juneau this morning on the | | Alaska, enroute from Cordova to | Seattle. | Rear Admiral Craven stated that | he believes the Matanuska coioniza: }non project to be a “step in the | right direction.” Increased popu- !lation, particularly an influx of | youth, is necessary, he said, to the development of the Territory. | The present trip of Rear-Admiral Craven, the first visit to the Terri- tory by any commanding officer of the 13th Naval District, took him to Seward, Anchorage, Matanuska, Dutch Harbor, Kodiak and St. Paul Island. | The Admiral arrived in Juneau on April 28, aboard the Alaska, and | made the trip to the westward as a | passenger on - the mine sweeper | swallow, rejoining the Alaska southbound at Cordova, where a |at present is engaged in work at | the radio station. “I think commandants should TWENTY-TWO SENIORS HAVE REAL THRILLS Are on North Sea When Craft Runs Aground— Visit A. J. Mine | The twenty-two seniors from the |Montana School of Mines at Butte, composing the entire graduating class of 1936, who arrived on the| | Victoria yesterday afternoon, were very much interested in acquiring some sea experience, and were thor- oughly entertained when they got it, according to Dr. Francis A. Thomson, President of the Schoo! | of Mines, who is accompanying the |group on their trip to Juneau to| linspect the Alaska Juneau Gold | Mining Company mine. The group | |sailed from Seattle aboard the |North Sea, which struck a rock| | near the south end of Long Island, and left the ship in lifeboats, en-| | joying the experience hugely, Dr. | Thomson said. They later returned | to the North Sea and remained | aboard the vessel until they were | transferred to the Victoria for the| |balance of the trip to Juneau. | Only one of the senlors had everj ‘be[ore been aboard a ship, Dr. Thomson said, and one of the rea- |sons why the group choose to visit | |the A. J. Mine was because of the | |ocean voyage necessary to reach | Juneau. | Aground in Fog | The accident to the North Sea | occurred at about 3:30 a.m. last| Thursday, Dr. Thomson said, in darkness and dense fog. He was| |awakened, he said, by feeling the| ship’s bottom scrape over an ob-| struction, and upon arising rrom‘ his bunk, was thrown from his feet | when the vessel struck solidly. He limmdeaietly dressed and went on |deck, being one of the first pas- sengers to appear, and then dis- covered that dawn was just break- ing. The bow of the North Sea ran up on a low rock but soon slipped back into the water, and the ship was warped off the adjacent reef by the use of kedge anchors in a thoroughly sailor - like manner, he said. A short time later, with the increase in daylight, the timbered shore of Long Island, not at first |visible, could be seen a few hun- dred feet away. i Gets Underway | The North Sea got slowly under |way again. and when Capt. A. W. Nickerson, commander of the ves- sel, found that water in the holds was gaining on the pumps, eight life boats were lowered into the water, which was “as smooth as a /mill pond,” .and the passengers |were transferred from the ship to |the small boats. The group of sen- jors, who Dr. Thomson explained |are the survivors of a freshman |class of about 100 students, joked |and sang throughout the exper- radio party from the mine sweeper jjence. There was no panic, he said, | |and go rush for the boats. “I can't |imagine a more expeditious or ord- |erly transfer of passengers,” he | make more frequent visits to thelgaq | Territory,” declared the Admiral, | explaining, “It is a very vital point |in our coastline and the study of | peacetime transportation, and such )problems as might arise in time of trouble, are worthy the attention of | I am glad to see the in- | the navy. | creasing | part of the Navy Department which | has become evident during the past | three or four years.” | Admiral Craven reported that, ac- | cording to lat the time of his departure from Seattle, several naval vessels will | visit- Alaskan ports during the latter part of July. The Admiral evidenced consider- |able interest in the fact that the |early Russian settlers sought the | flat places while American pioneers | reached for the high mountains | “This is probably because the Rus- |sians were interested primarily in fish and skins whereas the Ameri- interest in Alaska on the |can’s chief interest was minerals,” | he said. Both officers commented on the excellent weather to which they at- tributed much of the pleasure of their voyage. .- South Carolina farmers received $21,823,284 in rental and benefit for Alaska history research to be diversed by Dr. Bunnell This sum will be largely de- voted to cataloguing and trans- lation of Judge James Wicker- sham’s library. Three persons will be employed for two years, including the translation and a considerable portion of this time will be spent in Juneau with Judge Wickersham. payments during the life of the AA | A Among the North Sea’s passeng- ;ers were from 25 to 30 women and about a dozen small chillren, sev- eral of them babies, including a pair of six weeks' old twins, who, were the first passengers hafded from the ship to the waiting life- boats, Dr. Thomson said. The pas- sengers were comfortable in the lifeboats. They were picked up by the Coast Guard cutter Alert from information available Ketchikan. About three hours later, after two extra pumps had been delivered to the North Sea at Hunter Bay by a cannery tender, water in the holds was lowered beyond the point of any danger, and still later, the passengers who had been cruising |aboard the Alert were put back aboard the North Sea. Alert Stands By The Alert stood by and assisted in the transfer of passengers to the Victoria upon the arrival of the latter vessel at Hunter Bay.| Dr. Thomson expressed eimphatic | \approval of Capt. Hanson and the | personnel of the Alert, and of the | |services rendered and available | through the Coast Guard Service.| |The Alert, he said, is a sister ship to the President’s yacht. t (Continued on Pl_ge Seven) OFFICIALS Hauptmann Case Figures in N. J. Vutfl omorrow Gov. Hoffman's Interven- tion for Kidnaper Issue in State’s Primary TRENTON, N. J., May 18—In- jection of Gov. Harold G. Hoffman'’s intervention in the Hauptmann case has heightened the interest in the Presidential preference primary test here tomorrow between the forces of Governor Landon of Kan- sas and Senator Borah of Idaho Making the Hauptmann case the only issue, Franklin Fort has fought Governor Hoffman for one of the four places as delegate-at-large to the Naticnal Republican Conven- tion. Both are supporting Governor Landon. Supporters 6f Borah and Landon both posted the names of delegates on their slates in almost all of the state’s 14 Congressional districts, although neither formally entered the Presidential preference race. OF STEAMSHIP CO, IN PORT TODAY Alaska Company’s Vice- President Here Aboard Yacht Granby on Tour TOWNSENDITES BADLY BEATEN INOREGON VOTE McNary Is Re-nominated— Borah Leading Roosevelt on Comparative Basis PORTLAND, Oregon, May 18— The primary election is a closed book in Oregon, leaving behind a smashing defeat for the proponents | of the Townsend Old Age Pension| plan. Senator Charles McNary, Re- publican, and National Committee- man Ralph Williams carried off the major victories against the Townsend opposition. McNary in 1,389 precincts steam- rollered his way to the Republican | nomination to the Senate again| with 84,190 votes, almost double the number given Sam Brown who had | 24,671 and Theodore Nelson with 12,841. Brown and Nelson both were Townsendites. Williams rolied up 58,116 in the same number of precincts and shul‘ out his nearest opponent, Charles| L. Paine of Eugene, Townsendite, who got 38,763. | President Roosevelt and Senator William E. Borah running with- out opposition ran a close race. So far the total vote shows Borah shightly in front on a comparative basis. The Idaho Senator, seeking the Republican Presidential nom- %mauon, had 75904 and Roosevelt 72,314 as head of the Democratic |ticket in' a strictly party vote. Delegates -to the national conven- tion: of each party are bound to | exercise their best efforts to nom- | inate them Willis. Mahoney, Portland, ap- Exceptionally fine passenger ac-|Peared to have an edge over John commodations will be afforded Alas- |J. Jeffreys, lawyer, for the Demo- |kan travelers by the two new | steamers, Mount McKinley and | Baranof recently purchased by the |A laska Steamship Company, ac- | cording to T. B. Wilson, Vice-Presi- |dent and General Manager of the | company. who visited Juneau for a |few hours this morning aboard the yacht Granby. Staterooms on both vessels, or- iginally constructed for service in the tropics, are larger than the cab- |ins on other ships belonging to the | company, and are equipped with twin beds in place of upper and lower berths. Mr. Wilson, who is making a tour | of Southeast Alaska ports not in the main channel of traffic to inspect docking conditions and freight- handling facilities and to become | more familiar with the needs of | shippers with regard to increasing the efficiency of his company’s ser- vice, is accompanied by six guests, including Lawrence Bogle, general counsel for the Alaska Steamship | Company; W. E. Brown, company |agent at Ketchikan; Hugh R. Adams, { Vice-President and Executive Man- |ager of Fruit Industries, Ltd.; Ralph H. Simpson, president of the |Ralph H. Simpson Company, Chi- | cago; Dr. T. W. Conley, dentist, of |san Francisco; and E. H. Fabrice, icmcngo manufacturer, president of | the Guardian Safety Seal Corpora- | tion. | Large Wing Producers | Mr. Adams’' company is the larg- lest California wine-producing or- |ganization and contributes one- third to the total amount of wine produced in the United States. Ac- cording to Mr. Adams, 95,000 tons of grapes were cngshed by his con- cern during the past season. Adams, | yhose headquarters are in Chicago, traveled by plane to Seattle to join the party. Ralph H. Simpson, also of Chi- cago, traveled west aboard the streamlined train “Portland” with the proposed Republican Presiden- <0mtinued on Paée }ighw — .- —— | Aviator Flies Homemade Ship 1,000 Miles EDMONTON, Canada, May 18.—Flying a home-made air- plane over the Rockies was a feat accomplished by Leonard Waagen, Canadian aviator, who piloted and landed his two- seater plane here after a 1,000- mile flight from Vernon, B. C. Accompanying him in the open cockpit, highwinged monoplane, was James Duddle Vernon. -| The colony is one of the Xargesti | cratic Senatorial nomination, poll- llng 40,422 to 34,127 for Jeffreys. SMUGGLING AR VESSEL SOUGHT NOW Pilot Shakes Officer from Wing, Then Taxies Down Field—Off NEW YORKMay 18—An air- plane suspected of post-prohibition liquor smuggling from the United States into Canada, is sought on both sides of the border today after the pilot shook Policeman Otto Kaf- | ka from the wing and dazed him as the plane taxied for the take- ‘olt at a Long Island airport yes-| | terday and sped toward Connec- ticut. The plane outdistanced privately owned planes. | Mounted police officials at Mon- | treal said the plane may have been | ome sought for some time and Col- ‘lector of Customs S. C. Driscoll, at St. Albans, Vermont, said a smug- gling plane is also sought. - Lepers Escape; Kill Fishermen MANILA, May 18.—The bodies 0(“ seven men attested to the ruthless- | ness of six desperate Moro lepers | after their escape from the Culion| Colony, 200- miles several | | Island Leper southeast of here. in the world, having more than 5,- 000 lepers. The escaped lepers killed tuur! tishermen, seized the boat, then| killed three more who were found | aboard. It is believed the lepers are sail- ing the small boat for Tigabu,| A Proclamation Saturday, May 23, is designated as Poppy Day in a proclma- tion issued today by Mayor I. Goldstein. The proclamation urged all citizens to observe the day by wearing Memorial Poppies in honor of the World War dead. It states: “When the United States was plunged into the World War in 1917, the City of Juneau responded to the nation's call in a spirit of exaulted patriotism. The citizens of the city offered their efforts and their means in the Nation's defense, serving and sacrificing in the national cause. The City of Juneau holds in proud memory its part in the great national effort which brought victorious peace in 1918. “Many of the city's young men were called into the armed services and some of them were called upon to sacrifice their lives in that service, dying with Americans upon the battlefields of France. thousands of other brave young There, over their graves, a little flower sprang up and bloomed, nature's tribute to the heroic dead. It was the poppy, and their comrades ask Americans to wear a poppy in their memory, one day of each year. On Saturday, May 23, The American Legion and the American Legion Auxiliary will distribute these memorial poppies in our city. “Therefore, I, Mayor of the City of Juneau, do hereby pro- claim Saturday, May 23, to be Poppy Day in the City of Juneau, and I urge all citizens observe the day by wearing the Memorial Poppy in order that the inspiring memory of those who made the highest patriotic sacrifice during the war may be recalled to every mind. (Signed) DICTATOR IS CHARGED WITH VICIOUS CRIME Head of Soviet Possession, Wrangell Island, on Trial for Murder MOSCOW, May 18.—The so-called little dictator of Wrangell Island, territory in the Soviet Arctic, went on trial today for his life before the Supreme Court here charged with starving the Eskimos, and mur- dering a member of a Polar expe- dition. Prosecutor A. J. Vyshinsky told the story of ruthless tactics on the part of the petty ruled named K. B. Semenchuk, administrator of the ‘Wrangell Polar station, who during the winter of last year, made hu- mans drag a dog sled. The with- holding of food while natives died from hunger is the biggest crime against him, and his co-defendant, S. P. Startsev, charged with the murder of Dr. W. F. Wulfson who died on a trip to Barren Point Blason. Marks of violence were found on the body. Prosecutor Vyshinsky said Semen- chuk forbade the Eskimos to hunt sea animals and put offenders in jail. Once, when one Eskimo ask- ed for food, he was made to drag a @ogsled 7 miles because of his request. M. S. Babusenkin, noted Soviet Arctic flier, is acting as special assistant to the judge during the trial. The wife of Dr. W. Wulfson will also testify that an attempt was made to starve her by refusing her rations and that the Dictator sought to drive her to the Arctic wastes, where she would have per- ished if she had obeyed. PRty e o LG se 00000 000000 . STOCK QUOTATIONS e e e 0000000000 NEW YORK, May 18.—Closing quotation of Alaska Juneau mine stock today is 14'%, American Can 129%, American Light and Pewer 10%, General Motors 62%, Interna- tional Harvester 84, Kennecott 37, United States Steel 57%, Common- wealth and Southern, no sale; Cit- ies Service 4%, Bremner 18 at 25, Pound $4.97, Bethlehem Steel 50, Curtiss Wright 6%. DOW, JONES AVERAGES The follewing are today's Dow, Jones averages: industrials 150.35, rails 44.94, utilities 30.41 | Bomeo. 'Sam Hill Is Named Italy’s Senate Gives ; to Tax_Appeal Board ! 0. K. to Empire Bill| waszvoron, May 18—presi- |dent Roosevelt has nominated Rep- | ROME, May 18. — Italy’s blue- | resentative Sam Hill, of the State | blooded Senate quickly approved of |of Washington, tax bill expert of | Premier Benito Mussolini’s historic | the House Ways and Means Com- bill for the Roman Empire, which |mittee, to the twelve year tem on includes annexation of Ethiopia. the Board of Tax Appeals. “I. GOLDSTEIN, Mayor.” JAPAN'S BIG PUSH ALARMS ALL NATIONS 05 Waiches Clowely % Troops Flow Into Ching —Tension Is Great WASHINGTON, May 18. — As Japanese troops, pouring into China, for the first time outnumbered the American troops stationed in that territory, Undersecretary of State " willia mPhillips cailed attention to Secretary of State Cordell Hull’s previous indirect warnings against Japanese expansionist activities in China. At a press conference on Decem- ber 5, Mr. Hull said: “Unusual de- velopments in any part of China will rightfully and necessarily con- cern not only the government and people of China but all of the many powers which have interests in that | country.” Primarily, Secretary Hull referred to the nine-power pact guarantee- | ing the political integrity of China. Secretary Hull today reported that the United States is “watching closely what is happening.” OTHER POWERS ALARMED PEIPING, May 18—The United States and other foreign diplomats | began serious study of the situa- tion arising from Japan's strength- ening of her North China garri- sons, a move which caused Nan- king to make vigorous protest to| Tokyo. Seventy-six hundred additional troops arrived yesterday, making ten thousand in all, a number suf- ficient to occupy the strategic air fields, railroad stations and Great ‘Wall passe Conviction of WASHINGTON, May 13. — The conviction of Representative John Hoepwel, of California, for con- spiracy to sell an appointment to West Point, has been affirmed un- animously by the United St Court of Appeals of the District of Columbia. Plan Farming, Tanana Valley FAIRBANKS, Alaska, May 18.— Among the recent arrivals here to farm in the Tanana Valley are R. G. Fitz, of Faribault, Minn, and his brother-in-laws, Mal Witten and C. M. Solts, of Oklahoma City; Leon | Jack Hibson and two brothers, of Eagle River, Wisconsin. HIGHEST COURT BIVES DECISION ON VITAL ISSUE Regulations Declared Un- constitutional, Same Rea- sons as for N. R. A. APPEALS COURT ALSO ACTS ON RELIEF BILL Improper Delegation of Powers, Declare Three of Five Judges WASHINGTON, May 18. — | Dividing six to three, the Su- preme Court today struck down the Guffey Coal Act on the same grounds it invalidat- ed NRA, declaring it is un- constitutional and an invasion of state powers. The majority, through Jus- tice Sutherland, held the Gov- ernment is without power to regulate hours and wages in the mining industry as in the manufacturing industry. Dissenters were Justices Brandeis, Stone and Cardozo. PRICE FIXING The highest court did not rule on the constitutionality of the price fixing provisions of the law which was designed to regulate the bituminous in- dustry but said these were so related to the labor provisions that the fall of the latter car- iried them down. | Tax a Penalty The majority opinion held |the excise tax of 15 per cent |for soft coal production with provisions of refunding 90 per cent for adherence to the law was “clearly not a tax but a i penalty.” | Senator Joseph F. Guffey, |Democrat of Pennsylvania, jand author of the act was |among the audience which crowded the Supreme Court ! chambers. ! ANOTHER DECISION | WASHINGTON, May 18. — The District of Columbia Court of Ap- | peals held today that the 1935 Re- |lief Act is unconstitutional. | The sweeping opinion of three of [the five Judges said the fcur bil- lion eight hundred and eighty mil- lion dollar law is void because of improper delegation of powers to the President, is an invasion of states rights and lacks definite au- thorizations. The court said the law “attempts to reach and control matters over which the constitution has given Congress no powers.” The opinion was written by Asso- ciate Justice Orsbel. Rexford Guy Tugwell, Adminis- trator of the Resettlement Adminis- tration, deferred comment. Solicitor General Stanley said an appeal will be taken to the Su- preme Court immediately. | ICKES URGES PWA SUM WASHINGTON, May 18.—Secre- tary of Interior Ickes, whose PWA is scheduled for curtailment under the Relief Deficiency, today told the Senate Appropriations Sub - com- mittee that the “way out” will be expansion of the $250,000,000 PWA | revolving fund and relaxation of the statutes governing operations. As he spoke, the District of Col- umbia Court of Appeals held last year’s Relief Act, on which the pend- ing bill with one billion four hun- dred and twenty-five million relief fund is modeled, is unconstitutional. e S Joan Blondell hopes her son, Nor- man Scott Barnes, 3, will become an artist when he grows up.