The Daily Alaska empire Newspaper, March 10, 1938, Page 1

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R ] THE DAILY ALASKA EMPIRE “ALL THE NEWS ALL THE TIME” VOL. LI, NO. 7737. JUNEAU, ALASKA, THURSDAY, MARCH 10, 1938. MEMBER ASSOCIATED PRESS PRICE TEN CENTS JAPANESE CUT CHINESE RAILWAY SYSTEM (FIGHT STARTED . IN WASHINGTON ONTVAPROJECT Congressional Investigation Now Being Demand- ed by Opponents RESIGNATION OF CHAIRMAN SOUGHT Senator Norris, Senator Bridges, President Roose- velt Get in Row | WASHINGTON, March 10.—The , fight on the Tennessee Valley| Authority has broken loose. . Senator George W. Norris, of Ne- braska, today agreed to support | the inquiry into the TVA provided | none of its opponents are appointed to the investigating committee. | “This investigation ought to be| made by persons who want to see| the great power project succeed | but also we want to be sure there are no irregularities in it,” said the Nebraskan. | Senator Harry S. Bridges, Re- publican, of New Hampshire, who demanded the investigation, said: “An investigation by friends of TVA will be worse than useless.” Meanwhile all awaited President Roosevelt's conference tomorrow in a1 attempt to adjust the disagree- Jaent among the three TVA di- | rectors. Secretary of Interior Harold L. Ickes entered the dispute when he made public a letter in which he charged Wendell L. Willkie, Presi-| dent of Commonwealth and South- ern, with asking the Public Works Administration to “conspire” with | him and hold up the $150,000,000 power project in the Tennessee Valley. Trouble Starts The trouble first started last week in the present showdown case when two members of the TVA called for the resignation of Chair- man Arthur E. Morgan and which was made more emphatic by the fact that President Roosevelt him- self released “the call for resigna- tion.” The statement, signed by Har- court A. Morgan, Vice-Chairman, and David E. Lilienthal, director, carried the row within the agency —which has been accompanied by charges of obstructive tactics and demands for a Congressional inves- tigation—to a new climax. Meanwhile, the central figure in a chain of events that brought the conflict into the open, Senator Ber- ry, Democrat, of Tennessee, found himself faced with increasing op- position in his announced campaign for reelection to the Senate this| year. Representative J. Ridley Mit- chell and Maj. Phil Whitaker of Chattanooga will enter the race. Claim Denounced Berry, with a group of colleagues, filed suit for damages for what they contended were valuable marble properties flooded by the waters behind Norris Dam, a prin- cipal TVA project. Chairman Mor- gan denounced the claim as noth- ing less than an effort to exploit the government. A Federal com- mission held that the properties were valueless. { Chairman Morgan promptly is- j* sued a statement demanding thor- ough Congressional investigation of the TVA, which in its wording and tone strongly implied that he felt himself completely vindicated in the Berry case. (Continued on Page Three) —————————— > ARE PARALYZED BY OPERATORS No Messages Sent for Over One Hour as Men Stage Strike SAN FRANCISCO, Cal, March 10—All Postal Telegraph circuits, in and out of San Francisco wery, paralyzed for 1 hour and 10 miy- utes last night by a strike of /0 members of the American Rafio Telegraphers Association. An agreement was finally re‘eh- ed in the long controversy jiver salaries and contract violationf; Two Army Men Step Up Brig Gen. James A. Woodruff (left), of Fort De Russy, Hawaii, con- mander of the Hawaiian coast artillery, and Brig. Gen. Frank W. Rowclii (right), Fort De Lesseps, Canal Zone, commander of the Atlantic Center, Panama Canal, have been promoted in rank to Major Generals of the line. Promotions were made by President Roosevelt on reenmmendation of Secretary of War Woodring. Daladier’s Wor;l Is Lau; In French War Program PREMIER OF FRANCE HAS STEPPED Chautemps Announces to Silent Chamber of De- puties His Resignation BULLETIN — PARIS, March 10.—Leon Blum, Sccialist and former Premier, has accepted President Lebrun’s mandate in an attempt to form a new Cab- inet replacing the resigned Chautemps Government. PARIS, March 10. Premier Chautemps has resigned with his Cabinet because he could not win from Parliament the power to re- organize French finances and cu government finances by a decree. The Premier told a crowded but silent Chamber of Deputies that he wanted a decree for power be- cauyse of persistent rumors that Cabinet changes had taken all of the liberty and power from the government. PLEBISCITE IN AUSTRIA STARTS CAMPAICN RIOTS Nazis and Fatherland Front Forces Parade Streets in City of Vienna VIENNA, March 10.—Eleven per- sons have been injured and 23 ar- rested in street fights today as the Nazis and PFatherland Front forces campaigned for the Sunday plebis- cite on Chancellor Schuschnigg's policy of independence for Austria. Hundreds paraded the streets to- day shouting “Heil Schuschnigg” or “Heil Hitler.” The cries arose above the roar of ‘the traffic and the entire police force has been called out on an emergency basis. Army garrisons are held in readi- ness for action if necessary. The issue at the plebiscite is whether the influence of Schu- schnigg or Hitler will prevail in Austria. \ The Nazi forces are angry be- cause they had no advance notice of the plebiscite which Schuschnigg called suddenly yesterday and also because the Chancellor has limited PARIS, March 10.—Under the old black slouch hat of Edouard Dala- dier is the brain that may determ- ine victory or defeat for France in “the next war.” As Minister of National Defense, Daladier supervises the work of "France’s army, navy and air corps in much the same manner as Chan- cellor Adolf Hitler now does in Germany. Save only for the ready approval of the Premier, whoever he may be, and his fellow cabinet members, Daladier's word and whim are law in the shaping of French defenses. As Minister of War for the past two years, and in three cabinets before that, the aggressive square- jawed Daladier is credited with bringing France's army to its pres- ent high efficiency. Now he will coordinate sea and air defenses with the army so that united French forces may strike together in war. Foe of Dictatorship Political leaders have remarked that Daladier was the one man in France whom the democratic mass- es would trust with such power. This 53-year-old politician’s career has shown him to be the sworn enemy of dictatorship and a firm champion of democracy. And yet four years ago Daladier was hooted and hissed as “assas- sin” and driven from political life. |It was freely predicted he could ;never again hold public office. | On February 6, 1934, police fired into a -crowd of citizens on the Place de la Concorde demonstrat- ing against the government and the Stavisky scandals. Several per- sons were killed and Daladier, Pre- mier at that time, and his cabinet were forced to resign. Everywhere he went, Daladier was called “kill- er” because his government was responsible for police shooting into the crowd. Confounds the Prophets Daladier retired to his 'native Vaucluse in the south of France, rolled his cigarettes, rode his bicy- cle and kept his mouth shut. | A year later; he resumed his ac- tivity in the Radical-Socialist party, |then was elected President to suc- |ceed Edouard Herriot. When the People’s Front government of Leon Blum came into office in June, 1936, Daladier became War Min- ister, the post he has held ever since. p A former school teacher, blunt and quiet except for heated speech- es on national defense questions in Parliament, Daladier entered the Chamber of Deputies in 1919. In 1933, he became Premier for the first time, after participating in six cabinets. It was his second ministry that fell after the Paris riots. S e R MISS BENDER SAILS Miss Dorothy Bender sailed aboard the Mount McKinley for Wrangell where she will work for the coming week with Miss Armene Stinger, Public Health Nurse, be- GIVING WHITNEY GERTAIN MONIES Senior Partner of Stock Firm Also Admits ‘ Wrongful Actions BULLETIN — NEW | March 10. — Richard Whitney | was indicted this afternoon by | the New York County Grand | Jury on a charge of grand larceny in the first degree. The indictment is based upon the | alleged misappropriation of be- | tween $105,000 and $110,000 from a trust fund left by his | wife. He was immediately ar- | raigned at the General Ses- | sions, bail fiXed at $10,000 but pleading postponed until to- morrow. YORK, NEW YORK, March 10.—Robert J. Rosenthal, cashier of the bank- rupt firm of Richard Whitney and Company, testified today that he took large blocks of securities from accounts held by the firm and handed them over in January tc Richard Whitney, former President of the New York Stock nge. Rosenthal was a sworn witness at a public hearing, following the sus- pension of the company Tuesday from the Stock Exchange. Assistant New York Attorney General Ambrose McCall. said the | stock that was given to Whitney was from the accounts held by the firm for safekeeping and invest- ment McCall said the stock includec $118,000 in the Homestack- Mining Company stock, and $125,000 in Treasury and other bonds. Rosenthal said he did not whether or not he had gotten receipt from Whitney McCall said to Rosenthal: “You've been around long enough not tc give stocks and bonds away without a receipt.” “I would give them to a sgnior partner without a receipt,” Rosen- thal answered. recall a Richard Whitney, a senior part- | Nikolai Bukharin - Thres of the most prominent of ‘tured. They are Alexis Rykoff, BIG GAP IN TAX BILL BY HOUSE MOVE Special Levy on Closely Held Corporations Goes Down to Defeat BULLETIN—WASHINGTON, March 10.—The House has ten- tatively, by a voie of 160 to 34, decided to increase the liquor tax from $2 to $2.50 a gallon as a_means of obtaining most of the Fevenue lost by discard- ing the proposed tax on closely held corporations. WASHINGTON, March 10-—Sec- retary of Treasury Morgenthau an- nounced today that the Treasury is opreparing alternate raising propo- s to fill the $41,000,000 gap in the ner of the bankrupt brokerage firm | bearing his name, shouldered ful’ responsibility for conditions lead- ing to his company's failure, accord- ing to statements made at the hear- | ings in the State’s investigation. | Whitrey also absolved his busi- | ness partners from any blame, and | said “Certain of my actions were | wrong.” Whitney said he was putting himself at the disposal of the State | Attorney General | NAVY BOMBERS NOW AT SITKA SEATTLE, March 10.—The Naval | Air Station here has been notified | that the six Navy bombers of Squadron 17, under Lieutenant Commander John Perry, landed at | Sitka after a flight of six and| one-half hours from Sand Point| Naval Station here. | e GEN. PERSHING 1S IMPROVING TUCSON, Arizona, March 10— Gen. John J. Pershing read the newspapers and enjoyed a brief stay on the sun porch of his sani- torium cottage yesterday. Dr»Roland Davison said the aged soldier is “doing remarkably well.” - e,ee - claife Dodd Sues Wealthy Hushand LOS ANGELES, Marcn 10.—Ac- tress Claire Dodd has sued J. Mil- ton Strauss, investment broker and member of a wealthy Chicago fami- ly, for divorce. They were married in 1931. SARBER LEAVES | - Warden Hosea Sarber, stationed |at Petersburg, returned fo his home the vote to those above 24 which |fore replacing Miss Stinger who is in that city last night on the excludes much Nazi strength. ‘The Nazi forces have sent envoys P to Berlin for instructions. |to leave for the University of Washington to continue nursing study. 1 | steamer Mt. McKinley after several ‘ldays in Juneau in connection with Alaska Game Commission work. new tax bill left by the defeat in the House of the special tax on closely held corporations. Administration leaders decided to call another vote on the proposal but admitted they held little hope in persuading the House to restore the deleted levy. Senate leaders said the removal of the levy will prevent much con- troversy over the tax bill when it reaches that Chamber. - e NAZI DIPLOMAT RAL‘zmor that Private GIVEN RAZZING BY LONDONERS Demonstration Staged on Visit of German For- eign Minister LONDON, March 10—Unfriendly demonstrations greeted Joachim von Ribbentop, German Foreign Min- ister, before and after a conference with Great Britain's Foreign Sec- retary Viscount Halifax, European appeasement. A crowd of 500 demonstrators sought to break the police lines and cries of “Get Out, Ribbentop,” | were shouted at the German diplo- mat. Meanwhile, Austria's political troubles have put a damper on Great Britain's plans for a quick European peace agreement. MOSCOW TRIAL 1S NOW ENDED Prosecutor Is Preparing Speech Which Will Take Day to Deliver MOSCOW, March 10.—Court has taken a recess while Prosecutor An- driev Vishinsky writes his speech summing up the conspiracy and murder charges against 21 defen- dants. He will demand death sen- tences. The prosecutor’s speech will pro- bably last an entire day, starting tomorrow, Nikolal Bukharin, chronicler of the Red revolution seeking | through ‘hristian Rakowsky — 21 former Soviet leaders facing death in the latest mass trial for alleged treason against the Stalin regime are pic- former premier in 1905 Sky', S Giant Near Completio CASHIER ADMITS Face Death in Mass Soviet Treason Trials Alexis Rykoft and former editor of the government newspaper | Izvestia, and Christian Rakowsky, internationally- noted Soviet diplomat and perhaps the oldest sur- vivor of the group that founded the Bolshevik party | View of the nation’s largest and finest commercial air transport, the Douglas DC-4 super-airliner, as it nears completion in the factory at Santa Monica, Cal., is shown above. ‘The plane, built to carry a crew of five in addition to 42 passengers, has four motors and its cruising radius will be 2.200 .miles. Test flights are scheduled for early spring. minute. Speed will reach four miles a ip Yards Organizing to Put | By PRESTON GROVER WASHINGTON, March 10.—Al- most all around the town we went |today to keep an eye on the gov- ernment which, if anyone should | ask, is spread out enough. | One of our correspondents tele- phoned to say there was a rumor on Capitol Hill that the private shipyards were organizing to put the heat on the government to |give them a huskier share of the new naval building program. | NYE SAYS NAY Who should know more about that sort of thing than Senator Nye of North Dakota, a Senator from an inland State with no sea- shore to be proud of. No siily words, those. Nye headed the Sen- | ate Munitions Committee investiga- tion which brought the private yards to Washington singly and in mess a pair of years back to protest that they had not picked the gold out of the government’s teeth when the first of the pres naval building boom began some $300,000,000 or more of e ergency recovery money in 1933 and 1934, But Senator Nye said he had no inside story about a special ship- yard fobby and wondered why three reporters should have asked him the same question almost within the hour — such is the. speed of rumors. It is a half-mile across the Capi- tol plaza to the office of Rep. Vinson of Georgia, Chairman of the House Naval Affairs Commit- {tee. By riding the Senate trolley, a third of the distance can be cov- lered in a hurry and the rest taken the tunnels under the Heat on Govt., Run Down unnecessary to into the fresh Capitol stick a air. so it head is out, HOUSE DETOUR But about two-ihirds of the way there we came to an elevator so shot up to the House press gallery. There Representative Celler of New York shouted at the noisy House that it is a blistering shame to compel good aliens to leave their families in the U. S. and go back home because of some minor crime, perhaps to wait years uwefore they return here under the quota limita- tions and rejoin their wives and three children or perhaps four. At the conclusion of five min- utes the presiding officer slapped down the gavel right between Mr. Celler's subject and predicate and the venerable but slightly stocky New Yorker turned about with a Websterian scowl on his face, which he wore until he took his seat. A burst of applause from a scattered dozen Congressmen soon brought, a smile to his face such as you see only on the back cover of maga- zines where the mellow gentleman gets mellower beside a bottle of old “Light Horse Harry.” On we went to find Representa- tive Vinson writing a speech to de- fend the increasing bigness of the navy and in all honesty he prac- ticed on us for five minutes until we could believe there was a bomb in every pot and two gun-squad- rons in every garage. Why such a peaceful farmer- lawyer from up-state Georgia should be wading shoulder deep in battle lore puzzles us even though he set (Continued on Page Three) LUNGHATLINE " SERVICE NOW INTERRUPTED Invader’s Spearhead Make | Way Across Yellow Riv- er to Vital Point PINCER MOVEMENT IS CARRIED OUT Bitter Fighting Progresses, | However—Defenders ‘ Make Attacks [ [ SHANGHAI, March 10.—The | Japanese spearhead that fought its way across the Yellow River | at Szeshui, 25 miles west of Chengchow, has succeeded in interrupting transportation on the Lunghai Railway. Chinese sources admit the Japanese have succeeded in cutting the railroad, the life line to Central China, the Jap- anese objective. | This pincer movement began last December following the fall | of Nanking, the then capital city of China. Chinese authorities declare, however, that bitter fighting is | still going on with Chiang’s | troops attempting to wipe out the Japanese advancing unit. 513 PLANES " OF JAPANESE LOST IN WAR |Chinese Spokesman Gives Estimate of Aircraft Casualties HANKOW, March 10.—Chinese military authorities estimate that the Japanese have lost 513 air- planes since the outbreak of the “undeclared war” in China. The spokesman said 216 Japanese planes have been shot down by Chi- nese planes or anti-aircraft guns and 130 planes have been destroyed on the ground by bombs. One hundred planes have crash- ed behind the lines without being damaged in battle and the re- mainder have been destroyed by land forces. SAYS ANOTHER WORLD STRIFE BE DISASTROUS War Secretary of United States Gives Views at Meeting CHICAGO, Ill, March 10—Sec- retary of War Harry H. Woodring said here last night that another World War would prove universally disastrous to the victor, vanquished and neutral. The War Secretary told the mem- bers of the Chicago Commercial Club that the United States, like other nations, is building it§ de- fenses but at the same time this nation is moving to preserve peace by rebuilding world trade. > Mrs. Roosevel To Break Ground For Fg@gral Bldg, SAN FRANCISCO, Cal, March 10—Mrs, Franklin D. Roosevelt is to break ground here next Monday for the new $500,000 Federal Build- ing on Treasure Island, the site for the Golden Gate International Exposition on San Francisco Bay. - e ee—— Ben Jonson’s dramatic works rank second only to those of Shake- speare,

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