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THE DAILY ALA ‘ALL THE NEWS ALL THE TIME” SK A EMPIRI JUNEAU, Budget Message Given Congress By F.D.R. SEA DEFENSE BE INCREASED IMMEDIATELY “Go Ahead Slgnal Is Ex- pected to Be Given Soon for New Program 18 NEW VESSELS ARE CONTEMPLATED Important Conference Held | at White House—Mes- sage Is Indicated I - | WASHINGTO! Jan. 5—White | House officials indicated that Pres-| ident Roosevelt is about ready to give the “go ahead” on the expand- | ed Navy construction program. | These officials said the Presi- dent has called to the White House, for discussion of the program, those interested in a supplement that pro- vides for 18 new ships and this! amount will be added to the regular| budget next year. Charles Edison,| Assistant Secretary of the Navy, and Admiral Leahy, Chief of Naval| Operations, as well as several Con-| gressional leaders, were those called, to the White House for the Lfll.u‘l—‘ ence on the naval program. | The White House callers reported| that the President will snortly send| a special message to Congress sug-| gesting a new naval building pro-| gram that will probably call for| new legislation. | BUNGLING KIDNAPERS ARRESTED Two Men ngl:red,Confes-‘ sions Secured in Ab- duction of Four BULLETIN — RICHMOND, Jan. 5—Walters died late this afterncon from a multiple head injury. INDIANAPOLIS, Ind., Jan. 5. State Pclice Superintendent Don-| ald F. Stivers announces the capture, ! in or near Muncie, of two men and securing of a signed confession, in the Christmas Eve Kkidnaping of four persons in Centerville, Indiana. The prisoners are William Ches-| ter Marcum, 30, of Newcastle, Ind., and Henry C. Walters, 30 ,of Mun- cie, Indiana. The two nten bungled the kidnap attempt and released their hostages| unharmed. Those abuducted were John Bry- an, Jr., the three-year-old son of a| Centerville banker; his mother, Mrs. John Bryan, Sr.; Julian Dunbar, grocery operator, and Miss Mamie Schroy, nurse. SUICIDE ATTEMPTED RICHMOND, Indiana, Jan. 5—| employed carpenters arrested for the gungled Christmas Eve kidnaping of gled Christmas Eve Kidnaping of John Bryan, Jr., aged 3, and also three other persons, dashed from| a balcony railing of a cell tier as! he was being taken to the Prose- cuting Attorneys' office and shout- ed: ‘To Hell with the Sheriff.” Walters threw himself over the |tractive event on the social front |staff and Mr. Wililam Green, |Labor. Portions of by retreating Chinese as the city fell to the invading Nipponese. above. - Slaughter Follow Utter destruction of China’: Pictured are some of war's victims with Japanese s Secretary of Labor Says I t With Turkey;50 Members of Her Staff Greets Bill Green the American Federation of Labor is at outs with Secretary Perkins. The organization opposed her ap- pointment as Secretary and at the last convention of the organization in Denver it went so far as to drop her off the invitation list, an un- precedented action. At the same convention, Roy Horn, President of the Blacksmiths' Un- jon (a mighty man is he), said he would rather submit to Hitler or By PRESTON GROVER WASHINGTON, Jan. 5—An at- this week was the luncheon given by Miss Frances Perkins, Secretary of Labor, for 50 members of her Pres- ident of the American Federation of The tifne was spent in quiet conversation. Turkey was served, but no par- ticularly great purpose was served ing were reduced to shambles by Japanese artillery fire and deva: capital followed its capture by Japanese forces. idiers in the background. 1 stitute bill had bec Bombed Gunboat Panay Sinks o NATL. DEFENSE " ESTIMATES 0 | BE INCREASED Relief Ex—;;a:ditures Are Trimmed — Public Works Curtailed IS DISAPPOINTED AT TAX RECEIPTS President Plamly Indicates that Needy Families Not to Suffer WASHINGTON, an. 5.—Presi- dent Roosevelt today sent to Con- i |gress. his budget message in which he projected a new billion dollar @ | Treasury deficit and a new puhhc ldebt peak despite estimates of le: spending in his forecast for the 1938 fiscal year and contemplated $539,- 006 000 cut«in Government outlays, land conditioned reductions upon the {upturn in business. f&'&‘ fense spending up to a record peace time level of $991,300,000 in 1939. The President made no effort to conceal his disappointment over tax |receipts and told the members of lover the regular appropriations for ¥MEtze River. Top photo shows the vessel partially abandoned as | the current fiscal year ending June 1t started to list on its starboard side. Center shows the bow under 130 | water submerging the forecastle and lower photo shows the ill-fated river boat as it appeared just a few seconds before it made its final | plunge into the river. These photos were reproduced from News of | Business Improvement | The President, in his budget mes- ther *fore in tax receipts. The Treas- lury is leaning on the conservative |side and predicts some improve- ment over the present level but does {not assume in its figures that bus- mess in 1938 will reach as high a |level as in 1937, due to world con- ditions over which this nation has no control. | “I may find it necessary to request |additional appropriations for Na- tional Defense. If the economic sit- ;uatiun does not improve I may ask Congress for approval of an appro- | priation to save thousands of Amer- icans from dire needs this year. | Public Works Curtailed | “I recommend that public works (items be curtailed. These have am- ply demonstrated they do not pro- vide as much work as do other methods of taking care of the un- employed.” In brief, the President calls for a budget expenditure of $6,869,000,- 000 with receipts estimated at $5,- Conguered Parts Alaska Expense Of China Now in ~ Budget Given Full Control Japs By President Internallonal Section Tak-|$3,389,8( 0 Asked of Con- en Over—News Will | gress for Interior De- Be Censored [ partment in Territory 1 SHANGHAI, Jan. 5. — Japanese| WASHINGTON, Jan, 5—Congress authorities announced today they has feceived a request from Presi- have taken over all Chinese govern- dent Roosevelt for $3,389,800 to ad- ment functions in the International|minister affairs of the Interior De-| section of Shanghai and also all partment in Alaska during the fiscal| other territory occupied by the Jap-|year of 1939, compared with $3,- anese armies. 224,010 for the current fiscal year. This is the final step in Japan's| In addition the President asked drive for dominance and projected$408,000 be set aside for medical re- censorship of news dispatches. ’u(‘ in the Territory and proposed Dead litiered the ground. n scuttled by the| House only a short time before the luncheon The department explained to our| social reporter that the llmcheon;gw‘m.m: net deficit of $949,600,- - eee another $60,000 be spent for mineral was designed to give the staff un‘000 and the public debt at the end 4 3 2 4 | surveys. spportunity for an informal chat|of the year at $38,528,000,000. STOCK QUOTATIONS ‘ The President also made provis- AFL executive about de- — - R, wavor peoviel MISS HELVI PAULSON |- with the partmental problems, ion for continued payment of bene-{ fits under the extension service, re-| NEW YORK, Jan. 5. — Closing | Friday night GARGU LOADING * HALTED ON ALL DEEP SEA SHIPS Activity Stops in Seattle at Noon Over Small Dlspute NO DISORDER AS MEN QUIT SLINGS Future Action to Be De- termined at Meelmgs Held Late Today SEATTLE, Jan. 5—A dispute be- n the Waterfront Employers As- soclation of Seattle and the Inter- national Longshoremens' and Ware- housemens’ Union called a halt to all cargo activity on deep sea coastal and Alaska ships in the harbor at noon today. M. G. Ringenberg, manager of the employers’ group, sald the union had not replied to the ultimatum T N RE R S e made last night and declared that for I,L.IM 'xr{d Hhcowiey Bf. ond. NI no more longshoremen would be ing flames started [lon, three hundred and four thou- S for- Work .\\,“"“‘\ g, A estiboToE the sqatreliss shown |sand dollars, down to $841,356,600. opdihbgile e Seeiipre section of the scarred city R |of future compliance with our joint izes 3 contract.” The President asked an increase of $34,300,000 to bring National De- _No Alaska ship is in port, but the | Yukon is due from the north late or Saturday morning and will be tied up unless the dis- pute is settled by then Cause for Strike Congress that the outlook had been 3“\‘:’"‘&‘ nl‘:m,'{“:!n::.N‘fi(,,l,;"”a,,mfg changed by the “recent recession in |ship in '”n,,"\‘_n”h i (”m‘; \?'wn busin s S 1 Estimates for National Defense ; ‘\‘»’n":“;‘f}l“d is “necessary and con- ‘;"‘L’I""‘:g"r‘; 1""‘1“°‘c;‘dv‘v"‘=“‘;““ fOr “United States gunboat Panay, blasted by Japanese aerial bombs The lonsilumisiee. iaaas et hoth e Navy an ar epart- 2 2 1 B! o 2 High while evacuating refugees from Nanking, is shown as it sank in the . ship's first transfer of car ments. This increase is $54,847,000 g 3 8, |the ship's first transter of cargo must be to the wharf before before it is put in another ship later. This method requires two slingload hand- lings and employment of more men. Accusations Each side accuses the other with sage, said “We hope the calendar the Day and Movietone News newsreels and were taken by Eric Mayell, | b S < year of 1938 will bring an im-' _________ 0 i ;""."l“,“i b Aprossnat. Mait MOSE | provement in business conditions, 180, Ooags pedes of .the 1P called the tieup a * the it down strike of employers.” He said the future |action of the longshoremen may be determined at meetings later today The longshoremen worked all ships as usual this morning but walked off at noon when notified of the order to do so. There was no disturbance. Closing of the port affected im- mediately seven deep sea ships, us- ing about 500 men to handle the cargo. Ringenberg said other ships will be affected as soon as they reach port. VALUABLE CODES REPORTED LOST, PANAY DISASTER Claim Mz;z They Have Been Recovered or Are Being Searched for here, however, believed there were | ing | questing more than thirteen million| — other likely answers, ranged in jquotation of Alaska Juneau mine for distribution for States and Ter-| WASHINGTON, Jan. 5—Coples about this order of probability: SAM ABOARD YUKON ‘\lrxk today is 10%, American Can |ritories administrative expenses and|of important diplomatic and naval 1—Miss Perkins was trying to American Light and Power 5%, |recommended salaries of $15,600./codes were lost when the Japanese da 31%, Bethlehem Steel contingent expenses were at| win back the aced FOR VACATION TRIP Axmfo" support of AFL bombed and sank the United States for her department. mmonwealth and Southern igzs 600; legislative expe: $16,000; {gunboat Panay, but informed offic= »s trying to soften the| Miss Helvi Paulson, well known 1%, Curiss Wright 4%, General|ajagka public school fund, $75000;|ers expressed the belief they are of the AFL substitute|P€auty operator of Sigrids Beauty|Motors 31%, International Harvest-|care and custody of insane, $202,000; safe from prying eyes aboard the es kol il Salon, sailed south aboard the Yu-jer 63':, Kennecott 38, New York|rogds, bridges and t $535,000; {Oahu, another vessel in the Amer= 3. She was trying to restore peace|KOD €Droute to Seattle for a six|Central 16%, Southern Pacific 177, | Alaska Railroad permanent appro-|ican Yangtze river patrol between Gréen and John L. |%eek vacation. United States Steel 56%, Cities|prigtion, $2,300,000 It is understood that divers at the Lewis. Miss Paulson, who has made her | Service 2, Pound $5.00%, e > scene have or are now trying to re= Bremner ] home in Juneau for the past three bid 2, asked & GRAHAM RETURNS rail and was injured seriously. | William Marcum, Walters' com-| panion, witnessed the attempt at suicide, and said: “I suppose h done it for his family.” Marcum, in the signed confession, said a ransome of $3,800 had been eon indeed. demanded. It was immediately recalled that otherwise, so we learn through our ocial reporter. In fact the lunch- ‘eon did not make the society pages, {nor any other pages for that mat- ter, as it was a very quiet lunch-| Mussolini than to a dictator “who wears a skirt.” POSSIBILITIES Moreover, the APL has hotly op- posed the administrations’ wage- hour bill and Green's proposed sub-| Much credence was placed by 1 bor figures in No. 1, far less in N and very little in No. 3. With ard to the last, our society r porter learned that Lewis had been| |vears, will visit with relatives and former school friends while in the south. She also plans to attend the Northwest Hairdressers’ convention in Seattle during ®e first part of February, (Continued on Page Four) Gordon Graham of the Alaska Air DOW, JONES AVERAG |Transport shops, returned to Ju- Fbe': Jollowing. & neau aboard the Baranof. Graham Jones averages lhllhmlll.ll*:' 124.06, {has been in the vicinity of Or- up .0 ils 2017, down .63; util-ly, 40 plorida, for several weeks Jities 2033, down 58. attending to property interests cover the codes and other valua- bles. The navy codes and other confi- dential data are contained in books with leaded covers so they would sink to the bottom if dropped over side in case of emergency.