The Daily Alaska empire Newspaper, March 1, 1937, Page 1

THE DAILY VOL. XLIX., NO. 7420. “4ALL THE NEWS ALL THE TIME” JUNEAU, ALASKA, MONDAY, MARCH 1, 1937. RESS. ALASKA EMPIRE __ MEMBER ASSOCIATED P! PRICE TEN CENTS GOLD TAX BILL AGAIN FACES BARRIER - SUPREME COURT GIVES OPINION IN GOLD CASE Government Contention Is Upheld in Case Appeal- ed from Mass. » WASHINGTON, March 1. — The Government has won the Supreme Court’s contention that the 1933 resolution prohibits the payment of ovligations in gold as applied to contracts for bullion as well as coin. A five to four decision was deliv- ered today by Justice Cardoza. The Jissenters were Justices Vandeven- ¢r, McReynolds, Sutherland and Butler. These were the four who dissentec in the celebrated opinion upholdin;;, in effect, the legis- tion. The opinion affirmed the rulings of the firct Circuit Court of Ap- peals and the Massachusetts Fed- eral District Court that the con- tract for gold bullion could be paid off on the face value of present day revalued money. The opinion constituted a defeat for the Holy- oke, Massachusetts, Water and Power Company, in seeking to col- lect $28,874 additional from the American Writing Paper Company of Massachusetts on rental contracts negotiated more than 40 years ago for water and power rights on the Connecticut River. o SPAIN FEARS NEUTRALS MAY MAKE ATTACK Does Not Want Italy and Germany to Patrol Eastern Coast VALENCIA, Spain, March 1. — The Spanish Government expresses fear that German and Italian war- ships participating n the neutrality blockade may attack the eastern sea coast of government dominated provinces. The Spanish Govern- ment has sent a request to the Non- Intervention Committee at London asking that other nations be as- Sigped to the patrol of the eastern coast. AIRLINER GOES DOWN;BURNED WRECK FOUND Two Passengers Are Found Alive After Eight Foodless Days SYDNEY, Australia, March 1— Rescued as tiey were writing fare- well messages after eight foodless days, two passengers of the ill-fated Brisbane-Sydney airliner, which disappeared February 19, were found Sunday beside the burned wreckage of the plane in the Mc- Pherson Range of Queensland. Three other passengers, includ- ing William Fountain, of New York, and the two pilots are dead. J. G. Westray, who escaped in- jury in the crash, was killed later when he fell over a cliff in the darkness while trying to get help. The survivors are a man named Proud, with a broken leg, and the other is named Brinstead, who was not injured in the crash. A farmer found the plane wreck- age and the survivors . FARM LABORERS IN CONVENTIO Plans Proposed to Organize 200,000 Workers in Single Union SAN FRANCISCO, Cal, Mar. 1. —Representatives of 200,000 Cali~ fornia agricultural workers gather~ ed here for a convention called by the California State Federation of Labor to organize all farm laborers in a single union. PLANS GLOBE-ENCIRCLING FLlGl:l'i' EUGENE vaL CONTEST VOTES PILE IN OVER LAST WEEK-END Four Young Women Clos- ing in on Each Other for Lead Honors The Daily Alaska Empire’s Good Will Contest and On To Mexico Tour took on much activity over the weekend showing several very eary nest workers determined to win cne of the two major prize trips to Old Mexico and return in this cir-| culation campaign. | Betty Whitfield is shown in the last tabulation as holding a slight | lead over Geraldine Bodding, who| is in second place, closely followed by Birdie Jensea in third and Clara Hansen in fourth place. Many oth- er girls in the race are in a posmon; to change places with the leaders! by depositing a few more votes. | Ballot Boxes Until the new store of Guy Smith' in Douglas is ready for occupancy, when a ballot box will be placed! there, the only official depository is at the office of the Daily Alaska Empire where all votes will be re- ceived and recorded. Votes Are Free The votes given with paid sub-! scriptions are absolutely free and can be handed your favorite con- testant for her use or you may| write the name of the young woman | you would like to see make the 20 day all expenses paid vacation tour from Juneau to Washington, Ore- gon, California and Old Mexico. AGRICULTURE SECURITY TO COST BIG SUM Congressional Leaders Make Estimates Regard- ing Annual Outlay WASHINGTON, March 1.—Con- gressional leaders estimate that the Administration’s program to bring! parity and security to agriculture may cost more than one billion dollars annually. The costs, as figured, include soil conservation at half a billion dol- lars, crop insurance at $150,000,000, rehabilitation for farm tenants, etc., at $100,000,000. To Soon Place Order for Building Stratosphere Plane SEATTLE, March 1.—The Pan- American Airways announce that orders may be given soon to the Boeing Aircraft Company for the world’s first stratosphere transport plane; presumably intended for| trans-Atlantic experimental flights. | Boeing officials have been work- ing on the plans for the ship, which will carry 32 passengers, five miles above the earth. DOUGLAS AIR DEFICIT OF Amelia Earhart Putnam, who announced in New York that she was planning an east to west globe-circling flight as close to the equator as possible, maps her proposed route with Captain Harry Manning, hero of ocean rescues, who will accompany her on part of the flight as navigator, (Associated Press Photo) Takes No Chance On Sitdown Strike; Plant Is Closed OAKLAND, Cal, March 1.—The National Motor Ball Bearing Com=- pany remained closed today be- cause the General Manager, L. A. Johnson, feared his 150 employees would attempt a sitdown strike. The union leaders however, denied they would strike. — e, PLANT OPENS THIS MORNING Picket Line Is Maintained, | But 3,800 of 5,600 Back on Jobs SANTA MONICA, Cal, March 1. —Employees of the Douglas Air- craft Company, which was closed ! for six days as the result of a sl'.-! down strike and in which more than 300 were arrested, went back to | ' | I work today as picketing of the Royal romance may overshadow |after 37 years service in all branch-| |the coronation of his brother which world’s larest airpiane plant start- ed. There had been no disturbance up to noon. | The pickets, estimated at more! than 500, paraded and sang around the factory entrances but the po-‘ lice cleared the way this moring for the workers returning. The plant employs 5600 workers and the plant officials said about 3,800 returned to work. ‘ The police claim that the ma-: jority of the pickets are not em- ployed at the factory. e Two Vieing in “Girfl Control” HUTCHINSON, Kas., March 1— Two Hutchinson men, alarmed at their expanding waistlines, have started a “girth control contest.” R. F. Blacketer, jeweler, and Ern- est Friesen, mortician, are the con- testants. —— . — DEMOPARTY WIPED OUT Plans Announced for Next Four Years — Victory Day on Thursday WASHINGTON, March 1. — W. Forbes Morgan, Treasurer of the Democratic National Committee, said the Party's $430,000 deficit is virtually wiped out and he is mak- ing plans for financing the 1938 and 1940 elections. Morgan said he expects to raise $350,000 at the Victory Day din-|at the birthday party in honor of |shook:his head and commented sad- ners next Thursday. He will seek $10,500,000 during the next four years. QUITS JOB AS AIR DIRECTOR s Tiad | by Political Situation,” Declares Sen. Copeland WASHINGTON, March 1—Eugene Vidal, Director of the Department 5f Commerce Air Bureau, resigned Sunday effective Sunday midnight. Vidal will re-enter private avia- tion. He entered the Bureau on June 19, 1933. United States Senator Copeland demanded, shortly after Vidal's res-| ignation, that the Bureau be reor- ganized but emphasized that he was sorry Vidal was leaving. “Vidal had his hands tied by the political situation in the Commerce Department,” said Senator Cope- land. Senator Copeland said he wanted the Bureau reorganized so that one man will be responsible for airline safety. “I fVidal had been director in fact as well as in name, he would have been able to straighten out the system of Government air legisla- tion,” Senator Copeland said. Senator Copeland said last night that no one had then been named to succeed Vidal. SUCCESSOR NAMED WASHINGTON, March 1.—Sec- retary of Commerce Daniel C. Roper announces that Fred D. Fagg, Jr., has been named Director of the Air Bureau of the Department of Com-~ 'merce, succeeding Eugene Vidal re- signed. DUKE, WALLIE MAY WED ON MAY SECOND Royal Romance May Steal Show of British Event Ten Days Later LONDON, March 1.—It is report- led that the Duke of Windsor may |the heart. Funeral services will be wed Mrs. Wallis Simpson on May 2 and this i3 causing fear that the takes place ten days later. The divorce of Mrs. Simpson be- comes absolute on April 27. It is said that a large body of the middle class express sympathy to- ward the coronation, admitting the coronation has lost its kick. The upper classes and poorer classes however, appear to indicate the coronation is the big thing. The Italian Government may not send a representative to the coro- {nation because Haile Selassie has been invited. ——— Quints’ Income to B_e_ Revealed ‘Guardian Introduces Meas- ure in Legislature at Ontario TORONTO, March 1—The Con- servative opposition in the Ontario Legislature is ready to demand a complete public airing of the source of the Dionne quintuplets income. Welfare Minister David Croll, the guardian of the quints, has intro- duced a bill which will gradually reunite the babies and parents. The quintuplets will be three years old on May 28. STOCK MARKET FOR BIG GAIN Mill Operations Reach High- est Level Since 1929 —Sales Are Large NEW YORK, March 1.—Aided by a jump in mill operations to the highest level since 1929, steels ral- lied the stock market today and selected issues and other groups pressed forward. United States Steel at one time crossed the 115 mark to a new! recovery top. Transactions today were 1,700,000 shares. | STOCK QUOTATIONS NEW YORK, March 1, — Closing quotation of Alaska Juneau mine stock foday is 14%, American Can 13%, Anaconda 63%, Bethlehem iS“eI 94%, Calumet and Hecla 18%, iCommonwealth and Southern 3%, ;Gemral Motors 65%, International Harvester 104%. Kennecott 627%, New York Central 45%, Southern |Pacific 54%, United States Steel 1147%, United Corporation 67%, Cities Service 4';, Pound $4.88 15/16, Re- ’puhllc Steel 35%, Cerro de Pasco 80%, American Zinc, Lead and Smelting 15', Lima Locomotive 80. DOW, JONES AVERAGES The following are today’s Dow, Jones averages: industrials 187.68, utilities 34.10. CAPT. HINCKLEY, RETIRED, COAST CUXRD, 1S DEAD for Interment in Ar- lington Cemetery SEATTLE, March 1.-—Capt. Har- old Dale Hinckley, 59, of the Coast ]Gunrd, retired, and a member of \the State Game Commission, is dead here as the result of an attack of 'held tomorrow. Capt. Hinckley retired in 1934 es of the Coast Guard including the| |superintendency of the New London |Academy, Spanish-American and| World Wars. Burial will be in Arlington Ceme-| tery. The body will be accompan-| |ied east by the widow and daugh- {ter, Barbara, Mrs. R. W. Dempwolf, |wife of Commander Dempwolf who | succeeded Capt. Hinckley as Com-| |mander of the Seattle Division of the Coast Guard. Night Watchman Baatfll_lu Death! SEATTLE, March 1—J. E. Pur- vis, 66, night watchman of a whole- sale grocery warehouse was found beaten to death this morning. It is |believed the crime was committed |by a robber. Pet Monkey Is Versatile |Mother | OKLAHOMA CITY, Okla.,, March 1. —C. H. Maybry's pet money has |been a mother to wild boar pigs, “lwo wolf cubs, baby chicks and {eight eats, and is now mothering la bulldog puppy. Last Arctic Ol “Crashed”; Dr. Maurer at Party in ‘ POINT BARROW, Alaska, March 1—Formal attire has crashed the last Arctic outpost. The crash was at the week-end when Dr, R. W. Maurer appeared in evening clothes, with variations, Sergeant Morgan. Dr. Maurer wore a tuxedo, knee- a swank had penetrated Uncle Sams|lieve Dr. Haverstock who intends length fur boots an da fur parka. itpost Is Evening Clothes , He arrived at the party via dog- team taxi, | Questioning revealed that these were the only togs Dr. Maurer saved from the recent hospital fire. 106%, American Light and Power | {Grand Council in session to con-| Bully, pet bulldeg of Peter R. Johns: cave-in in the Pittsvein mine at F' through a pool of water that balked laly Is Boing to Expand War Power at Once. Fascist _GJJ Council. s Called i Session by Mussolini | ROME, March 1—Premier Ben-| ito Mussolini has called the Fascist' sider expansion of Italy’s war pcvwer‘K in the face of England’s seven bil-| lion five hundred million rearma-| ment problem. The meeting is expected to result| in the announcement of a.new Ital-| ian program for in ised arma-| ment on air and sea. “It is no secret that the colossal| English program has created cer-| tain amazement in Rome” the Ital- ian press declares. KIDNAP SUSPECT BEING GRILLED IN ARGENTINA CASE Wandering Hobo Believed, Abducted, Killed Son of Wealthy Family BEUNOS AIRES, Argentine, March 1—Police are seeking the kidnaper and slayer of two-year-old Eu- genio Iraola, son of a wealthy cat- tle raising family. The body of the, boy was found last week on the large estate. Investigation centers on a wan- dering hobo by the name of Jose Gancedo. Police are questioning him regarding the crime., Chief of Police Ganduglia said it is almost | certain Gancedo kidnaped and kill- | ed the child. The little boy was| buried Sunday. i F. M. FRETWELL DIES, VICTORIA Prominent Seattle Business| Man Passes Away on Business Trip VICTORIA, B. C, March 1. — Frank M. Fretwell, special agent| in Seattle for the New York Life Insurance Company and a promi- nent business man of that city, died here after a brief illness. His con- ditlon was such that removal to his| Seattle home for medical care was not deemed wise. - e | | Bué Trader Charles D. Brower |1y that this was the first time such ,most northern outpost. Dr. W. C. Graham recently ar-| rived in Seward where he will re- Cochran, Devine, Patterson, Powers and Rivers, and Walk fiEELS HA]_LY %DiogASaves Entombed Master PROPOSAL MADE TO ELIMINATE | - |House Sen LEVY ON GROSS | ds Measure Back .| to Committee to Consider 4 - AM on (both shown above) saved the life! of his master, a coal opexator of Grafton, W, Va., who was trapped by a lemington, near Grafton. Swimming rescuers, Bully reached Johnson and made it possible for CCC workers to save his master, who Lad been trupped for a week in the mine, Johnson' will live, SENATE FINALLY| KILLS REQUEST ON JONES LAW Cochran _and . Powers Be- verse Votes, Defeating Ef- | fort to Remove Clause | Reversing its position of Satur-| day, the Territorial Senate killed | the McCutcheon memorial this morning which would have asked Congress to amend the Merchant Marine Act, or Jones Law, so that| it might be applicable to Alaska, The vote today was five to three against, Senator Cochran of the Second Di- vison and Senator Powers of the Fourth reversing their votes of Sat- urday. Today’s vote for the memorial, | which had previously passed the House, was Devine, Patterson and Rivers; against, Cochran, Roden, Walker, Powers and Brunelle. Saturday the vote had stood for, er, Roden and Brunelle against, wm{ the result| that from Saturday afternoon until| this morning the Territorial Legis- lature had been on record for ask- ing elimination of the Alaska ex- clusion clause for the first time in history. It was Senator Powers of Eagle who gave notice of reconsid- eration shortly after the vote was taken Saturday and when the mem- orial came up this morning both he and Senator Cochran voted in the negative. Senator Rivers of the Fourth pleaded for the measure on grounds that the Jones law is discrimina- |tory against Alaska and tends to eliminate competition In water transportation and builds up mono- poly. Senator Walker of the First| opposed the memorial, though he' said many in Ketchikan favored n,{ because, he said, the Canadian boats | would get the cream of the Alaska trade if the law prevailed here and | thus it would tend to handicap the service offered by the American lines. The Jones law, which has been! the subject of much controversy in' the Territory over the years since | it was brought out by the late Sen- ator Wesley L. Jones of Wa;hmx-‘ ton, prohibits foreign carriers from carrying American goods between American ports but it permits goods‘ to be shipped from the east to the | west coast via Canadian rail and| water, such as from New York to Seattle. However, with Alaska ex- cluded from the act, the Territory | can not receive goods from the| States via the same method and the point became a heated subject of controversy during the recent strike, as Canadian boats could not bring American goods into the Ter- ritory. The Senate received a large num- ber of House bills today and ad- House proposals. Both houses have agreed to extend the time for con- to take a vacation in the States. sideration of their own bills until Wednesday night, Jjourned at noon until tomorrow to, |permit committees to go over the| {caught him passing spurious coins. Net Income Features ENDMENT WOULD BOOST PRESENT TAX Claim Made Only Big Com- panies Would ée Effect- ed Under Race Plan The House Ways and Means reported in this afternoon against the Race amendment to the Brunelle gross gold tax bill and the House immediately adopted the report, the bill tak- ing its place on the calendar for third reading and final pas- sage tomorrow in ‘its original form as passed by the Senate. It calls for three per cent tax on the gross production of gold and platinum mines with an exemption of $10,000 and a gra- duated net income tax on other ‘mining. Carrying a proposed amendment which would eliminate its major feature, the controversial Brunelle gross gold tax bill was shuffled back into the Ways and Means Committee by the House this morn- ing after Leonard Smith of the Second Division had withdrawn his proposed amendment of a two per cent gross tax on all mining pro- duction, instead of the three per cent on gross production of gold and platinum mines which the original measure calls for. Harry Race of the proposed new amendment which would delete the gross tax feature and incorporate net tax pro- visions similar to those in the Race net tax mining bill, previously in- troduced but held in abeyance, Graduated Scale Plan Under the Race proposal the levy on gold and platinum would be on the net returns and the graduated scale would be from two and one half percent on $100,000 net produc- tion to six per cent on a million dollars and over. It amounts to an increase in the net mine income tax law passed at the last session which was on a graduated scale from three-fourths of one per cent on $5000 net up to four per cent on a million or over. Victor B. Ross of the Fourth raised the point that the Race amendment | would place all the tax on the three big companies of the Territory— . |the Alaska Juneau, Fairbanks Ex- ploration and Hammon Consolidat- ed—and Ed Coffey of the Third de- clared it would mean no tax to speak of from platinum operations as they are limited. Mr. Race sug- gested calling a tax expert to deter- mine how much the bill would yield under his proposal but the House voted to re-refer the measure back to the Ways and Means committee. ‘The tax on gross production is esti- mated to yleld $600,000 a year. Kill Two Bills Teeth were taken out of the pro- posed eight-hour day bill by the House today as amendments were ‘adopted which would exempt can- neries and mines. As the bill now reads it would provide for an eight- hour day in all industries in the Territory except mines and canner- ies. Two other measures were tabled which probably means their end in this session. They were bills for repealing the boxing law and the ™ measure proposing to prescribe rules for traffic on highways, providing load limits, width of conveyance and other features. Street Car Ablaze; Fuse Box Explodes SEATTLE, March 1.—Seven per- sons were cut and bruised when a street car, carrying 60 passengers, caught fire when a fuse box explod- ed. Hospital Janitor Is Caught Counterfeiting SEATTLE, March 1.—Alfred Hud- son, 40, hospital janitor, is charged with counterfeiting. He was arrest- ed when Secret Service agents More than 100 bogus coins and |counterfeiting tools were found in Jhis workroom in the hospital. the First offered” |