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VOL. XLVIIL, NO, 7251. ALASKA EMPIRE “ALL THE NEWS ALL THE TIME” JUNEAU, ALASKA, THURSDAY, AUGUST 13, 1936. MEMBER ASSOCIATED PRESS PRICE TEN CENTS B. M. BEHRENDS PASSES IN CORDOVA NO NEW TAXES ARE IN SIGHT, LEADERS SAY Present Taxation May Be Reduced—Thorough Study to Be Made CONFERENCE HELD AT WHITE HOUSE Important Statement Issued by Secretary of Treas- ury Morgenthau WASHINGTON, Aug. 13. — A conference regarding taxes at the ‘White House today brought forth the announcement this afternoon that no new taxes will be recom- mended at the next session of Congress and by a thorough going study, beginning immediately, the fact was disclosed that there may be a reduction in present taxa- tion. Secretary of Treasury Morgen- thau, United States Senator Jos- Democratic Leader Mrs. John Galleher has been ap- pointed to head the work of the young Democratic women under the national Democratic committoe. (Associated Press Photo) ]WILLIAM PAUL " GETS POST IN 5 REBEL PLANES Lead U. S. DROP BOMBS ON SAN SEBASTIAN Roar Overhead Sending! Missles Down on Northern Seaport INSURGENT WARSHIP READY FOR ACTION Decks Cleared, Is Report— Final Desperate Attempt | to Capture City IRUN, Spain, Aug. 13. — Five| rebel planes today bombed San Se-| bastian, the Spanish Government | stronghold on the Bay of Biscay, inflicting heavy damage, in the fi- nal desperate offensive for the | city’s possession. While the planes roared over-| head dropping missles and pitting their strength, injuring eight per-‘ sons seriously, the rebel cruiser| Almorante Cervera, two miles off shore, cleared decks for action. The planes, accordng to advices received here, scored five direct | hits on San Sebastian. Budget Doughton met with Presi- eph T. Robinson and Director of lhel IND'AN BUREAU dent Franklin D. Roosevelt before the Chief Executive left on a flood area inspection trip. The conferences' purpose were stated by Secretary Morgenthau as “removing any inequalities and un- necessary administration difficul- ties inherent in the law and also for abating taxes creating unfair- ness to consumers or trade or that have other disadvantages in out- weighing the revenue yield.” It is currently reported the con- ference leaders are believed aim- ing against nuisance taxes. “Business improvement is now at such a pace that we are going to reach a balanced Budget much ear- lier than expected,” said Senator Robinson. SOVIET FLIERS OFF FOR NOME THS FORENOON Delay Is Caused by Flier's Missing Coat — Good Weather Reported FAIRBANKS, Alaska, Aug. 13.— The Soviet plane left the water at Lake Harding at 11:27 o'clock this forenoon for Nome. The departure of the plane was delayed when it was discovered that a coat of one of the fliers, contain- ing passports and other documents, had been'left at Fairbanks, 50 miles away. The documents were flown to Lake Harding from Fairbanks by Hugh S. Brewster, Territorial Aero- nautical Inspector, who is here to investigate the finding of the Hines' plane. In the coat was also a revolver belonging to the Russians and copies of the Fairbanks News Miner sent to Josef L. Stalin. Weather reports all the way to Nome are favorable. ature here is 68 degrees and from 55 to 60 degrees elsewhere. BORAH, ROSS NOMINATED BOISE, Idaho, Aug. 13.—United States Senator William E. Borah and Gov. C. Ben Ross are the Re- publican and Democratic Senator- ial nominees respectively following the State primary held yesterday. Some Potatoes ELLOREE, Aug. 13—W. B. Wil- ilams, farmer, has found a way to make big potatoes out of little ones. He says he planted 23 bushels of small-sijed potaloes to grow sprouts for transplanting. The or- iginal potatoes, he declares, not on- ly grew excellent sprouts for trans- planting but developed into large No. 1 grade potatoes which he mar- keted at a good price. The temper-| | Attorney Wfigc! as Field Agent Under New Wheel- er-Howard Law Setup ‘William Paul, Juneau attorney, { has been formally appointed field agent for Alaska under the Wheel- er-Howard Act which extends to Alaska Indian communities the right to organize for co-operative operation ©i industry and various economic projects. ‘Word of the appointment was re- ceived today by C. M. Hirst, Edu- cation Director of the Bureau of Indian Affairs. The appointment was officially made by Secretary of Interior Harold L. Ickes. Mr. Paul’s name had been up for consideration for some months, and he spent six months in Washington last winter in connection with lining up the new program which makes $300,000 available in Alaska for carrying on the work in the Indian communi- ties. He had previously been rec- ommended by the local Indian of- fice and confirmed by Commis- sioner John Collier. Oscar Lippe of the Indian Bu- reau in Washington is now en- route to Alaska to start the work under the Wheedler-Howard Act in the north, it is reported, and Paul will work with him as agent over the Territory. STOCK PRICES TAKE DECLINE, PROFIT TAKING Early Lcade?hip Is Taken by Steels, Then Sell Orders Given | NEW YORK, Aug. 13. — After striding forward under the leader- ship of steel issues for most of the day, the Stock Market teetered and fell in the final hours as profit- taking appeared and orflers came | for selling speeded up trading. Today's final tone was irregular. Transactions today were 1,450,000 shares. | ! | CLOSING PRICES TODAY .NEW YORK, Aug. 13.—Closing “quotation of Alaska Juneau mine stock‘ today is 13%, American Can 120%, American Power and Light 13%, Anaconda 43%, Bethlehem Steel 61%, Calumet and Hecla 11%, Columbia Gas and Electric 22, Com- monwealth and Southern 3%, Cur- tiss-Wright 6%, International Har- vester 82, Kennecott 47%, S. S. Kresge 28, Simmons 38%, United States Steel 68, United Corporation 8%, Cities Service 4%, Bremner bid 13, Pound $5.02%. DOW, JONES AVERAGES The following are foday's Dow, Jones averages: Industrials, 167.64; rails, 55.10; utilities, 35.16. S L Quartz lenses were used in spec- tacles a few years ago on the as- sumption they would be cooler for , the tyes, REBEL COLLAPSE SEEN | LONDON, Aug. 13.—According to late afternoon advices from Mad- rid, the collapse of the Fascist revolt against Madrid’s Socialist Government, Communist supported,: is forecast by the Sapnish Govern- | ment. | Government forces, which have fought against the rebels for nl-‘ most four weeks, have launched a three-way drive to wipe out oppusi-! tion. Repulsing Rebels | Rebels in the far north, moving toward San Sebastian to break the Government's hold on the seaboard, | are being repulsed, it is said, eight | miles from the city. More Govern- | ment troops are moving on the rebels in that sector and no mercy is to be shown. i Rebels are reported to have taken Tolusa and the insurgent soldiers danced in the streéts of that city last night. Loyalist Miners Rally Loyalist miners are reported in full control of Oviedo, a rebel city! in the northwest. | Madrid’s War Ministry announces the capture of four small southern towns which have beén held by the rebels. The towns are Deifontes, Calahorra, Lancerra and Aguacil. Major Franco Dismissed A decree issued at Madrid, dis-| misses from the Spanish Diplomatic | Corps, Major Ramon Franco, trans- Atlantic flier, whose brother, Gen. Francisco Franco is the rebel com- mander-in-chief. Former King Alfonso is said to be ready to fly back to Spain in event of any success by the mon- archists, RECRUITING BARRED PARIS, Aug. 13. — The French Government has barred recruiting in France for the Spanish armies. LESS FAILURES INBUSINESS, REPORT SHOWS Dun Bradstreet Report Shows Decline in Com- mercial Crashes NEW YORK, Aug. 13.—Decline in ‘commercial failures are at the lowest figure since the post war boom days of 1920 it is recorded in the index of improving business health figures compiled by Dun, Bradstreet and released by the As- sociated Press today. For July the record shows the lowest monthly total of failures since September, 1920 and a con- tinuation of the rate of decline is reflected for the first week of August. In July the failures numbered 639 compared with 902 in the cor- responding month last year and again 2,596 for July, 1932, around the peak depression liquidation movement. e — A prime object of the War of the|ed into the finals as the result of | Spanish Succession was that of Britain and other powers to cripple the authority of France, k) This picture, radioed direet from Berlin to New York and rushed to this newspaper, shows Alfred his two “color guards” as he carried the United States Flag at the head of the United States section of the parade of athletes in the Jochin is a member of this nation's Olympic Stadium in Berlin. Olympic gymnastics team. (Assoc | World-Consciousness Felt by American Government in Flare-up, Spanish Republic FIRST RELIEF SUPPLIES NOW AT PT. BARRO Flour, Beans and Sugar Landed for Famine Suf- ferers, Arctic Rim POINT BARROW, Alaska, Aug. 13.—Coast Guard cutter Northland has arrived here with flour, beans and sugar and is prepared, accord- | ing to Commander W. K. Swam- mell, to sail south after unloading | the supplies for the destitute Es- kimos. Frank Daugherty, Government Reindeer Supervisor, will have charge of the distribution of the relief supplies. Several small boat owners are sald to have asked $40 to $50 a ton to take supplies to the various points. The schooner C. S. Holmes is unloading here but she brought no famine supplies. SITUATION AIDED WASHINGTON, Aug. 13.—Advices have been received here by the Coast Guard headquarters from the Coast Guard cutter Northland, that four and one-half tons of food have been landed at Point Barrow, and the immediate famine situation among the Eskimos is relieved. “We have landed sufficient sup- plies of food to care for the im- mediate situation,” the radio from the Northland stated. U. S. CAGERS WIN, BERLIN Basketball Five Going Into Finals as Result of Defeating Mexico BERLIN, Aug. 13.—The United States basketball team today mov- defeating Mexico 25 to 10 The United States team led 13 to 2 at half time play. Procession A. Jochim, Union City, N. J,, and iated Press Photo) | By BYRON PRICE (Chief of Bureau, The Associated Press, Washington) WASHINGTON, as of week end- ing Aug. 8.(By Associated Press)—| Deep beneath the surface of its | manifold domestic activities, the ‘ American government is feeling | once more a surge of world-con- sclousness. | As on many past occasions, Eur-| opean dangers have awakened thoughts which race far into the| future. The Spanish civil war, ap- | pearing in clearer perspective as al mighty combat between the latter- day forces of Communism and Fas-| cism, has become something more than a passing episode. Wash- ington sees to immediate prospect of general European conflict, in spite of the anxious clustering of the powers around the Spanish cauldron; but Washington is con- cerned about what may happen to- MOrrow. Two General Problems Basically, Eur ope’s recurring pressure toward war poses two general problems for the United States. One is the immediate prob- lem of the protection of American life and property in the war zone at the time hostilities begin. The other is the question of trade com- plications later on ,the commer- cial troubles which lie at the root | of most wafs and which had so much to do with American in- volvement in the World War. Al- | ready the Spanish crisis has pre- sented questions of future policy lin both of these directions. In view of the widespread con- viction that war and more war is in store for Europe, would it be | wise national policy to station an American naval squadron in Wash- ington waters, ready at hand to safeguard American interests? Affirmative Answer This question is answered in the affirmative by those who speak | purely from the military viewpoint. They point out that the two Amer- | ican warships which rescued Amer- icans from the Spanish war zone were in that vicinity largely by chance—one on a shakedown cruise, | one on a training trip for Midship- | men. It is the all-inclusive dic- tum of military preparedness that nothing should be lefy to chance An exactly opposite answer is re- turned from the diplomatic view- point. On that side it is argued that if American naval forces are | . |Men in Allmlks of Life PASSES ON BEHRENDS DEATH SEVERE SHOCK T0 COMMUNITY Many Citizens Express Feel- » ing of Great Loss at | Banker's Passing \WAS RECOGNIZED AS OUTSTANDING CITIZEN Saddened by Unhappy Report from Cordova 2 B. M. BEHRENDS Pioneer, merchant, banker, phil- anthropist, who died in Cor- dova last night. BEHRENDS NEWS SADDENS JUNEAU C. OF C. SESSION Reflecting the high regard in which B. M. Behrends was held by residents of Alaska are the follow- ing statements from widely known citizens on hearing the sad news from Cordova: GOVERNOR TROY “Everyone in Juneau is too shocked and stunned to realize Ben Beh- rends is dead,” said Gov. John W. Troy. “Mr. Behrends has been identi- fied with nearly everything that makes Juneau what it is today, as investor, contributor and banker. SUGCUMBS T0 ™ PNEUMONIA ON INTERIOR TRIP | Juneau Financier Died Just Six Months to Day After Wife's Death ENTIRE COMMUNITY MOURNING HIS LOSS ] Pioneer Merchant Was Na- tive of Bavaria—Had Been Here Over 50 Years B. M. Behrends, 74, Alaskan mer- chant, banker, leading citizen and philanthropist, passed away in the Cordova hospital at10:40last night. Death was caused by pneumonia, developing after a pleurisy attack which caused him to leave the steamer Yukon on which he and his grandson, Ben Mullen, were re- turning to Juneau following an extensive trip through Alaska. At the time of his death, his daughter, Mrs. J. F. Mullen, his grandson, Ben Mullen, and his son- in-law, Judge J. F. Mullen, were in “Measured by any standard you may choose he was a great man. Cordova. |Gov. Troy Pays Fitting Tri- | there is left a void that cannot be|L. F. Ba, He was in addition a great, true,| and loyal friend Friendship to| bléte ktO l\cl/e“kl’:‘own anker, lVlerchant him meant a great deal | “Soon after arriving here Mr.| - Behrends was considered Juneaw’s| Visibly depressed by the sad leading citizen and has maintained|pews of the death of one of its :.:1?! recognition and grown w"hloul.flandmg B. M. MAYOR GOLDSTEIN |Behrends, the Juneau Chamber of “When a man who has-been your]cm‘““"“‘ met for its weekly lunch- friend and counselor as far back|eon in the Terminal Cafe this noon as you can remember passes on, and heard talks by Gov. John Troy, head of the North| filled,” said Mayor I. Goldstein.|Canada Air Express; Frank Du-| “Ever since my father died when 1| fresne, Executive - Officer of the was 16 and T went into business for| Alaska Game Commission; Dr. M. myself, Mr. Behrends has been a|J. Whittier, son of M. S. Whittier, members, | father to me, and he has \elped mc:ASslsLant Collector of Customs, andl many times, not only financially School Superintendent A. B. Phil- but in other ways. And I know lips. that his acts of charity, of which| Prefacing his remarks with the | the world had little knowledge, statement that “if Alaska has a| were countless. | first citizen it was B. M. Behrends “Mr. Behrends has long been|who passed away last evening in recognized as Juneau's and Alas-| Codova,” Gov. Troy paid fitting ka's foremost citizen, the real cor-|tribute to the wellknown Alaskan nerstone of our progress and pros- before commenting on incidents of | perity. We are all going to miss|his trip, which, he remarked, seem- | him for a long time to come. His ed unimportant in view of the | place simply cannot be filled.” |tragic news that had come to the| DR. COUNCIL | community. | “I have known Mr. Behrends| The Governor reported he found personally for nine years, and can|factories throughout the country say that he was probably as fine|working at capacity now, in sharp a character as we have ever had!contrast with conditions in 1933 in the Territory of Alaska,” said|when he was in Pennsylvania. He | Dr. W. W. Council, Territorial gave the Chamber members his be- Health Officer. “In matters of lief that President Roosevelt would | business he was always just znd:be re-elected, and added that he fair; and as a friend, I have known/ felt it would be a wonderful thing none better. To my personal know- | for Alaska as the present Admin- ledge, he performed a great many | istration has many important things Judge Mullen has been asked by radio if he wished the steamer Mt. McKinley to put into Juneau on its southbound trip, but no answer {had been received up to late hour this afternoon. If the Mt. Mec- Kinley does not come into Juneau it is expected that the body of Mr. Behrends, accompanied by the members of his bereaved family, will come to Juneau on the Yukon, arriving here Monday or Tuesday. News Shock Here The news of Mr. Behrends un- timely death struck heavily on all \wha. leatned. of it this morning ‘ when Guy ‘McNaughton, Cashier and Vice-President of the B. M. Behrends Bank, friend and business associate of the financier for more than 33 years received a radiogram from ‘Judge Mullen advising him of the fact. Death came just six months to the day after the death of Mrs. Behrends, also from pneu- monia, in Ketchikan. Throughout Juneau groups rep- * resenting all classes were seen somberly discussing the sad news and In subdued, hushed voices speaking with reverence of the man they all knew as a friend, and recounting a legion of personal events in which, from personal ex- perience, they knew Mr. Behrends had been the sponsor, the bene- factor, the kindly friend. Born in Bavaria, Germany, Mr. Behrends came with his parents to the United States in 1878, lo- cating at Nebraska City, Neb., where he worked on his father's farm and also gained his first experience generous and kind deeds for those!planned for the Territory which are ‘Im merchandising as clerk in the in need, without anyone,' not even|bounes to alc In its cevelopment | country store. the recipients of his kindness, aware' and progress. “Others may have | Came to Sitka of their indebtedness to him. Not|the sameé thought,” the Governor? In 1884, the beginning of that only Juneau, but the entire Terri-|said, “but I know that President foresight and ability that later tory of Alaska, sorrows for the pass-|Roosevelt has and will carry on|made him an outstanding suecess, ing of a fine citizen, and a great|with the Alaska program.” |urged him Westward with the tide friend and benefactor.” t Gov. Troy spoke highly of Drv’ur empire, and journeyed to Los H. T. TRIPP | Ernest Gruening, Director of Ter- aAngeles and into various localities “In the death of B. M. Behrends, | ritories and Island Possessions, who Juneau has lost a sound and con-|was in the north this summer, and servative citizen; and we have lost|touched on the excellent work Dr. a reliable friend and neighbor,” said | Gruening is doing in behalf of the H. T. Tripp. “I have known him | Territory. intimately since 1896. Time alone| Mr. Dufresne said he hoped for | will heal the loss we deeply feel at|a 60-day bird season this year but! his passing.” |that definite word had not yet WALSTEIN SMITH | been received. “I am grieved at the news of Mr.| Dr. Whittier spoke of his pleasure Behrend’s death,” said Walstein|at being back in Juneau, and Mr. Smith, Vice President of the First|Phillips outlined briefly his sum- National Bank and for 20 years|Mer's trip in the States Territorial Treasurer. “It is a great| Mr. Barr told of his air business loss to the community as well as/between Juneau and Atlin and personal loss to many of us who |Pointed to the commercial gains to had known him through the ye‘m“Juneau as the result of availability He was a fine man, an outstanding | ©f quick transportation between the citizen. We will all miss him great- | tWo points. ly.” | At the opening of the session, R. E. ROBERTSON the membership stood for several| “I have been a friend of Mr. B, moments in silence in respect to| M. Behrends for over thirty years|Mr. Behrends. of Orange County, including Santa Ana, and other places, where he found greater opportunity for his rapidly developing merchandising |ability, Although reaching the position of store manager, he was not sat- isfied and at the age of 25 came to Sitka, Alaska, in 1887, where he worked for the Sitka Trading Com- pany of which tormer Governor John G. Brady was principal own- er. After a few months he was sent to Juneau as manager of the Sitka Lrading Company's business Rere, and beld that position for four years. During this time, on October 25, 1889, he married Virginia M. | Pakle, who had come to Sitka in 1886, and whom he had met while working in Sitka. In 1901, the young merchant de- cided he would establish a business and intimately associated with him during those years,” said R. E. Rob~ ertson, “Always I have considered him Juneau’s leading citizen and one of the leaders of Alaska. “He was always vitally interested in Juneau, and the entire Territory and always willing to ald anything that would benefit Juneau or the Territory. Mr. Behrends had the confidence of thousands of people throughout the Territory and in the States as well. personal loss of a true friend in this untimely death.” OSCAR OLSON “The members of the Territorial (Continuea on Page Seven) (Continued on Page Two) I feel the great| | FOREST FIRE IN MINNESOT |ering flames spread through the ‘\nonhern wilderness today despite |efforts of thousands of men Adverse winds and low humidity | handicapped the fighters Hundreds of men were picked up jon the street and also enlisted on the highways to fight the flames especialy adjacent to International | Falls, Minnesota, ST. PAUL, Minn., Aug. 13. ~Tow-] of his own, and in that year, as {“banker and merchant,” opened & |business under his own name. In 11904 he incorporated the mercan- |tile business, and in 1914 incor- | porated the banking business, of | which corpordtions he has been |head ever since. | Exceptional Judge of Men Known, always as an exceptional |judge of men, B. M. Behrends early gathered around him a strong personnel for his enterprises. In- cluded in these are Guy McNaugh- ton, Vice-President and Cashier of |the B. M. Behrends Bank, who has |been associated with the bank and store for 33 years; George E. SR ez (Continuea on Page Two)