The Daily Alaska empire Newspaper, May 3, 1938, Page 1

THE DAILY ALASKA EMPIRE § “ALL THE NEWS ALL THE TIME” VOL. LII, NO. 7783. JUNEAU, ALASKA, TUESDAY, MAY 3, 1938. MEMBER ASSOCIATED PRESS PRICE TEN CENTS 'FAIRBANKS AND JUNEAU JOINED BY AIR o CHINESE MAKE Alaska Bond Measure Passed G[]AST SHIPPING | Flood Creates: Rm-k Gurdens. in lduhq | HRST A_Iii MAIL . DEEP ADVANGE By House:Now Goeslo Senates STRIKE FEARED e B R 1WS THRONGS AGAINST Japs e ... INPORTTIEUP TOPAR AIRPORT WASHINGTON, May 3. — The|bill and which includes the Gover- Sound of Cameras Nearly o " 2 House has passed, and sent to the nor, Aftorney -General, Treasurer. * Gain of Seven Miles Report- | Senate. the bill authorizing Alaska | Secretary of Alaska, Auditor, High- Tacoma AFL Longshore . Is . . to issue, up to two million dollars,| way Engineer, Commissioner of Edu- . | ed in One Sector n Public Works bonds. | cation and President of the Uni- Spokcsman Predlcts.Gen- L Dibawns Voices GROL South Shantung | Alaska Delegate Anthony J. Di-| versity of Alaska. eral Cargo Haltlng 4 iy | mond said the money slated is to| Another bill, passed by the House ficial Spcakers match the Federal grants under|and sent to the Senate, grants pacomA, Wash., May 3—A Pac-| " * INVADERS REPORTED | tic new pwa program. 37 acres of land to the University |, "o (Tl bt Ll T lting FLEE[NG TO NORTH The measure provides for it to!of Alaska for a fur farm experi- ; become operative on approval by|mental station in the Tongass For- | {rom the closing of the Tacoma port 400 POUNDS OF MAIL TAKEN FIRST FLIGHT {Epochal Fli;mgaid to Mark | Beginning of Alaska- wide Air Service A few minutes before one o'clock this afternoon the twin engines of a Pacific Alaska Airways Lockheed | Electra roared to life, drowning the 5 e the Board of Finance created by the | est, near Petersburg. was predicted before the City Coun- Eight Hundred Thousand cil here by Thomas Thornsen, rep- resenting the American Federation Defenders Prepared Sul"'(f"le Court Challeuge(l of Labor longshoremen of Tacoma. for Offensive He said that all cargoes transship- iy . 2 > B' l ped from Tacoma or addressed to cnsanns, iy 1o A gain by President’s Bid T Sene wos » be declared “unfair” by members or New Taxation Proposal @ i min wesion as- v ing at 1p, m. today. “Seoretary Perkins had better patches today report”a sensational seven mile advance on the southern Shantung Province front and it is declared that the Japanese lines gl 1yl work fast if she wants to a music of the Juneau. High School have buckied wriass the onstanght. | Levy.on Federal, State, Municipal:Seciarities, | Yok 5ot ¢ she wenis o syot s {band and the whir and click of cam- The adsabos 1 ‘ealol RIC -2t Also Salaries of State, Local Job Holders at a council meeting in guarantee- | e e e e ot b s F e Raises Several Points, But Government| 58 facome emplovers against, loss |over the crown of Mendenhall Glac- .;m' v’mh 800,000 men ready to par- M H oints, bu to other ports by reason of a tieup ‘:c;wsl:h‘:oo foumisto‘ therflrst Jllm. icipate. effective here since Saturday. } e ates airmail to go from Jun- Today's reported advance and gain USt ave New Source Of Revenue mf rl(e ai_fl {eau to Fairbanks. is between Taierschwang, scene of Aboard the plane piloted by S. E. the major Japanese offensive of thel — > =i By PRESTON GROVER Robins and Walt Hall, were the past month, and Pihsien. It is in | WASHINGTON, May 3. — When j 4 3 ling | S€ven following passengers: Charles this sector where the Japanese are | the President proposgd_ taxing Fed- Residents of Wallace, Idaho, learned there are worse jobs than mowing the lawn and dandelion pulling | W. Carter, President of the Juneau making intense efforts to retaliate \fl'ah State and Municipal securities as flood torrents carried huge rocks from the steep-canyoned hills to deposit them in front yards. | Chamber of Commerce; John E. for previous defeats. [andcitie salaries’ of stateigry ducal - ¢ — |Lamiell, Director of International The Japanese forces in the sec- UP u N A |Job nolders, he challenged the Su- ’ i P {Bbatar: Sorvice; Mlide: : Bheidon; tor, according to the Ch{nese dis- ’ i?;frmi)u(t:l):‘;z :2::& lflr)wrle'::::g: hl;; Nm Alrlv(ly’ 0 f flClal IS AIR sEvac !Postmnster at Fairbanks; and Fred patoling, SCASEIOG DR FREtNE Torcihs ‘.beex.l reversing itself piec’emeal 'u.! ARRIVAL ROME B S A, (L TOTE RERENRL R ward. | en ‘rever selt A I f S l at Fairbanks, all participants in the R S | STUGK MARKET}““S dissomclL sod glvegSons bro- pl)()l'lt()‘ , Tor ()(ltt e on GELEBHATED AT program, and Mr. and Mrs. Sand- PSSR s y- 2 . 3 . > sEorv. Ak i : FUUR STATES F el PuchU |land could not tax national banks, Remarkable RCCEPUOH for ACCOl”lt Alas’fi»(l ACtlLLtleb ‘pr’(l-;%e:‘;m:nTfi:‘g:r‘;lelmg}:: sv;:; ‘ avore ssues rus Pla ruling which set the precedent German Dictator All ikl P B BAN | program, s:;onsored by tfiep.!\fneau | from One to Four e fheu Supreme Court for apuy Through Ital | WASHINGTON, May 3—Howard | Chamber of Commerce, during POil’ltS l.n Bu in | years—that one branch of govern- g y Rough, Bureau of Air Commerce s | which prominent officials taking pne JIER) DARKL 0L taX ifie BROICles 01 OMB. May . Aelf Bk ¥ Assistant Director, has appointed C. Hone for Plane Service Be-|part in' the ceremonies, exchanged | another branch. ,» May 3.—Adol diler has C. Lange, of Salt Lake City, Senior P! | greetings and spoke over a nation- | NEW YORK, May 3—Stocks to-| For years state-rights lawyers arrived here for a State visit in+ Airways Engineer of the Northwest tween neau and Se- PRIMARY T_UDAYi day reversed the recent down trend | have argued that if the Federal tended to dramatize the soldiery of GREFTINGS FuH Divisign to flbe stationed at :Se;ttLl;,‘ o }Jul’ V 2 ed iwide s l;?;z‘::pSkxea with favored issues pushing up one Government could tax income from Germany and Italy. i | "Rough said he wanted Lange to attle Is oIc Sunny skies brought out an esti- ¥ | to four points. state securities and tax the pay The German Dictator’s special work In Seattle because of the “an £y # s " " & ;| trai g i s - cheerd e s e by i > "’ .., mated crowd of 700 persons to wit- , ; FlOl’lda, Soulh Dakota, Ala There was profit taking at fre-| of local officials it could destroy train was acclaimed by cheering FleI AIR MAIL ticipated activity and expansion of Forty-six Juneau business men, naes thia: pEoGERGL: ohe potibdl bl am ¢ . | quent interludes however and top state and local government simply thousands in the all-day journey Alakkn alrways Work.” postal officials, Pacific Alaska Air- bama and Indl.ana Se | prices were reduced near the close.| by imposing crushing taxes. across Italy. Rough aLsg aid that “while no WAys air and ground staff members, ‘:;‘&5 IOU'; .m'(fltf;flormi m‘ldt cnx:licr: eur:- lecting Nominees | Transfers today totaled approxi-| Nevertheless liberal members of Rome prepared a reception sur- — Federal funds have been voted now, @nd the mayors of Fairbanks and| ®18S & "“:""‘“n:“ i —_— | mately 450,000 shares. | the Court have indicated for some | Passing the days of the Caesers. Pragi ] D1 d. Harll oy iy e Bav ] t far off | Juneau respectively, gathered at a OB = DF - BIPRRERIS: W whirring | : . i ; resident, Dimond, Harllee undoubtedly the day is not far of - M B bvis, caieras’ and soabping: sl (By Associated Press) | Those analyzing today's move- time that they favored trimming o e e e o | when we will witness a great ex-|banquet in Percy's Cafe last night S Florida Democrats today choose a‘mént found scant encouragement|the broad shelter of exemption, both quKEHS VOTE Branch Send Congralu— | pansion in and to the Territory of to celebrate the joining-by-air mau‘CE_In‘::;uc.omdy Pl N nominee for the Senate in a five- | in business or Washington news and | from Federal and State taxes. They Alaska.” of Fairbanks and Juneau. The affair| | t, - | attributed the upturn purely to spec- | never have gone quite so far as 3 cornered contest, the national as. P purely pec- | 8 q ber (of Oaatnalse Torkelsen, carried symbolic ribbons gl Sl pects of which made it outstand- | ulative buying. | the President proposes. However, ] ing among the primary elections| | with a few exceptions, the Court has Heralding the inauguration m‘ gir 4 In expressing the Postoffice De- toa mldvx:.ay point between tw?l poles held in four states. | TODAY’S QUOTATIONS followed the trend far enough to mail service from Juncau to Fair- partment’s pleasure over the new Marked “Interior Alaska” and | ) Senator Claude Pepper has asked! NEW YORK, May 3. — Closing permit taxing of branches of the banks and Whitehorse today, Presi- air mail route, John E. Lamiell, Dir- . ppe: ector of the International Posta: renomination as a consistent sup-\quotation of Alaska Juneau mine government which are not strictly dem‘ Roosevelt, Delegate Anthony: | » porter of Roosevelt policies and stock today is 9%, American Can 85, | governmental. J. Dimond and Harllee Br angn Sm-]— Service said: “Harllee Branch (Sec- | eneral, | latxonson Gala Event Jean McNaughton and Katherine was sponsored by the Juneau Cham- “Southeastern Alaska.” Postmaster of Fairbanks Robert Sheldon, in tying the knot in the ribbons with Postmaster of Juneau, bears the endorsement of James American Light and Power 4%, Ana- | ond Assistant Postmaster |ond Asisstant Postmaster General) Roosevelt, Secretary to the Presi- conda 27'%, Bethlehem Steel, 47.:EXEMPTIONS ATTACKED De- Albert Wile, struck the keynote of \ —_— | yesterday dispatched the following 'is sold on Alaska. It gives our { dent. One of his opponents, Repre- Commonwealth and Southern 1%,| In several recent cases the Fed- 1 messages to Gov. John W. Troy: tment great pleasure to gl u| the occasion when he said, “Ten : % y : Three Filipinos Under Ar- ™5ty “Congratuiations to you partment great pleasure o give you| oo %00 6 night of mail from several of the Roosevelt recommen-|30%, International Harvester 47%,|attacked some of the exemptions rest—Violence to Be and the people of Alaska upon in- States.” | Fairbanks to Juneau over the tort- of | Uous trails of yesteryear, was but a dream. Today it is a realization.” of Jun- Importance Stressed cau instead of five days. The new| 1IN speaking for Gov. John W. Die in Action system is undoubtedly of more bene- | L¥0V; confined at home with a cold, fit to us than to Juneau—but when|his Secretary, Harry G. Watson, | to the Supreme Court. been arrested charged with carrying | ment of direct air mail between the| DANVILLE, TIl, May 3. — Wil- Juneau wants our help in obtaining Stressed the importance of today's , , sentative Mark Wilcox, has opposed | Curtiss Wright 47%, General Motors eral Internal Revenue Bureau has dations and fofmer Gov. Dave Kennecott 83, New York Centra];claimed by state officials, The Reve- | Averl d auguration of air mail hrl:m‘r‘n Ju- WS 5 Seiop Said Mayor Leslie Nerland, Sholtz, another candidate, has 12%, Southern Pacific 11%, United|nue Bureau has prosecuted an in-| e neau, Whitehorse' and ~ Fairbanks. William Ransy Is Twelfth pairbanks: “This brings us of the aligned himself with the adminis- States Steel 44, Cities-Service (new) |come tax claim against salaries of | PR This service is an added testimonial Interior within five ho tration. | 8%, Bremner no bids asked 2, Penn- | officials of the Port of New York| SFATTLE, May 3.—Deputy Pros- of the closeness of the national in- Federal Agenl to In South Dakota former Gov.Tom | sylvania Railroad 15%, Pounad|Authority with such vigor that 25| €Cuting Attorney Clay Agnew an-|terest in Alaska and I hope m Berry and Representative Fred $4.98 11/16. | states have intervened in an appeal Dounces that three Filipinos have an important step toward establish- Hildebrandt, attempting to upset Senator Herbert Hitchcock’s cam-| DOW, JONES AVERAGES Just who would be hurt most by cOncealed weapons on the eve of continental United States and Al liam R. Ransy, 34, G-Man, is dead Juneau-Seattle airmail—we're right °°casion. paign, are competing for the Demo-| The following are today’s Dow, a decision permitting the Federal|tomorrow's Alaska Cannery Work-| aska thus removing another bar- as the result of bullet wounds suf- with you.” “The establisment of airmail over industrials 112.70, -| " Juneaws Mayor Harry I. Lucas|Alaska has been one of the most fav- shook hands across the table with|Ored objectives of the present Ad- ernment is anybody’s guess. In the|here seeking cannery employment ment which brings Alaska closer 10 lywine was later killed Mayor, Nerland in congratulations Ministration,” Watson sald. Today cratic nomination. In the Republi-Jones average: Government to tax the states and|ers’ election rier of distance between us. We in | fered in a battle with Joe E: » can primary three candidates are up 261; utilities 2143, up .48; utili-| the states lo tax the Federal Gov-| Asnew said many are flocking| washington welcome every develop-|wine, former Indiana convict. Ee opposed by Gov. Leasie Jensen for ties 18.21, up .41. e 3 the Senate. | ——— - Port of New York case the Federal|and officials are trying to avoid| us, Ransy has been a Federal Agent symbolizing the greater proximity of OPens what Is the most important Alabama’s Democratic primary | Government contends that the port|the possibility of violence in the FRANKLIN D. ROOSEVELT | since 1933. He is the twelfth G-Man the two cities. step in the hoped-for final achieve- found Senator Lester Hill and| authority is building tunnels and |election which is to determine which —_— to die in action b3 Years Ago |ment of scheduled air service for Speaker Bankhead unopposed. For-| bridges so fast that the ferry busi- |15 the bargaining agency, CIO or s aif rejoice in setting up of aiv. Ransy formerly worked out of Robert Sheldon, President of the Alaska. » mer Senator Thomas Heflin is at-| ness is being destroyed. That is|AFL, for Alaska cannery workers. | maij hetween Juneau, Whitehorse Seattle, especially engaged on the Fairbanks Chamber of Commerce South Service tempting a comeback and ‘swmsedl | wiping out a source of revenue for| BT and Fairbanks which will begin on| Weyerhaeuser and Mattson kiinap- and Postmaster there, recalled how ‘I the plan which we hope to * by Representative Joe Starnes. | |the Federal Government and it is| WALZ ARRIVES HERE May 3. Our continued efforts for ex- INg cases. forty years ago he had taken part COnsummate, our next step is air- Indiana is selecting nominees for | claiming a right to tax the port tension of air mail se s in Al- in carrying mail by boat to island Mail from Juicau to Ketchikan to three representative seats and will| |authority in lieu of it. Peter Walz, who replaces Mrs. aq; and between Alaska and the points near Juneau. Seattle. Realization of this import- name senatorial nominees at a June | ALI- DEFENSES\ Yet out west the Federal Govern- Emma White as clerk in the Office | giates are at'last beginning to bear senate Passas “Mail was not certain in those ant airmail route is realization of * convention. ! ment owns forest land and public of Indian Affairs, aprived in Juneau ¢ it and I confidentially look for- days,” Sheldon said, “In 1908 T went the Worst of the battle, for with . to Fairbanks and carried mail by #irmail, we then get scheduled ser- ——————— domain occupying half the area of aboard the Alaska, coming north _ N o Y o ———————————— d . | some states. If the states attempted from Washington, D. C. (Continued on Page Two) . y vice.” M . . | dogs, horses and foot. In 1923 the GL Ass ME ASUHE ore Soldiers, Sailors and to tax thote boldings the sgumwk of —————— = e g railrond came. We thought that was| _John Lamiell, Director of the In- A e | Federal Administrators would echo | W : we ernational Postal Service, brought viators { T 2 D 'l' . | . the last thing—but now we have " Edi Demand?d by |among the mountain peaks for J FEUASUF y 8 De-dterilization | that greatest of all communications STé€tings from Postmaster Gener- IS KILLED FUH ict of Prem]er | generations. In early days the | 5 —the airplane.” |al James A. Farley and Harllee | states urged that argument — and Of ld. Wh D I M S. E. Robbins, PAA pilot, iseq Branch, and praised the pioneering F ‘ 1 . E. ; pilot, promised | | PARIS, May 3—Increases in the the Federal howlers won out. (U 9 at oes t ean?‘ e “the most efficient and dependable e{}(‘orts of Pacific Alaska Airways, | man power for all of Prance’s armed | service possible,” in speaking on be-| Who are contractors for the new THIS GDNGRESS‘R’MS have been ordered by Pre-|TO TAX OR NOT TO TAX By MORGAN BEATTY | standard, Ametica still seemed tF Moot (aoss Back 0 half of the flight personnel. L gt | mier Deladier, head of the National| Of course it all grows aut of the | BY MORGAN BEATIY ~ standard, America still scemed the House for Conference, Highlight speaker was Fred Milli- “Without the pioneering of PAA, Defense Government, who is now | desperate hunt of the Federal Gov- | safest place in the wor or | gan, ex-dog musher, now manager Which must have been disheartening WASHINGTON, May 3. — De-|money. A steady flow of money o/ Vlajor Amendments S : 9 _ of the PAA airport at Fairbanks, @ 8reat number of times, it would gol as become a|America forced additional gold de —_— gt Tt Thumbs Nose have been impossible for this pro- “I get a kick out of thumbing my Ject to reach’a realization,” Lamlell [ . | ruling by a decree. | ernment for tax revenue. The states, Legislation on Bank Hold- ~The edict which became a 1aw| meantime, are no less aio ey 1 1 -4 | today, demands more soldiers, - | the variety of decisions is amazing. ng Compames Unanl- |ors ind aviators along with ms:x‘llyf ‘The Supreme Court has held ¢ mously Deferred | new modern machines. that: | The increase will add to France’s| The salary of a New York City ’ WASHINGTION, May 3.—Mem- annual tax bill many millions of | Water commissioner is exempt from bers of the Senate Banking Com- dollars. | taxation because supplying water is fact. It has enabled the Federal re- | posits into American vaults. And| WASHINGTON, May serve banks to plank down a $1,400,- | every bit of gold currency that| Senate has approved of the Admin- b 000,000 roll at the cashiers' windows, | arrived from abroad went into the | istration’s billion one hundred and nose at the boys breaking trail un- St d all ready and waiting for reliable|U. S. treasury because the law sflysi fifty million dollar naval expansion dernealh me when I'm flying!" Mill- Pe po% only does the swifter borrowers—if they want it. |no private individual may own|bill by a vote of 56 to 28. igan sald, summing up his pleasure M0de of communication unite Al- Maybe you have wondered, as I|gold in America. Result: the treas-| The measure is to be returned ?“EDTOETCSS If(mm dogs to plane: ";‘;:';; :w:,‘:lczs e:;' n';j:mzfidssa‘:; did, whether that was a sort of |ury today has $12,000,000,000 worth| now to the House for action on sev- ach speaker paid verbal homage = 8 K. mittee have agreed unanimously to| — o —— ::lhi:;:m;l g:rli'z‘:fs x;ve{::l:::cl;_t sleight ‘of hand ik to producef—-ialf m’; wm:_s P sy i“”“ major amendments including 10 the coming of the new-and-swift- strengthen as well, the Liaison exist- defer action at this session of Con- nearly a billion and a half dollars| St | the proviso to limit to 35,000 tons er air mail communication between 108 bewteen the —Territory and | pally owned Bosto! ted rail- | - " 4/ jgress on the Giass. bill fo prevent Lll II.E SINGER oS Poston s where none was apparent before. | NOW IT'S STERILIZED | the tonnage of three new battle- the Interior and the Coast, but one Washington, D. C. | e . Pouch Recetved As gold arrived, the treasury paid | Ships unless the President finds| speaker summed up what all touch- # g 4 A | other nations are building larger ed lightly on. Collector of Customs J. J. Con- f::;n:zri;:u:;gs C;;;zmr)orE:d:i;far“ ool “Fairbanks—Juneau mail now—is NOrs. then received the ornate leath- { The Senate authorizes a total & good beginning,” the speaker said. ©F pouch filled with gold-sealed let- me&“f‘“’; i et e d 8] “That is just the beginning. Next, '€rS of greeting in exchange being - nator Ss sal ere | | i ot » sent from Juneau officials to Fair- } | Westfield, Mass, Police Depart-|NeW money problems created by gqded credit. B nd cus- | Pared to 105,000 in the House meas- mail by air from Juneau to Seattle. J is not time DOW to glive the subject| LOS ANGELES, Cal, May 3—De-| peny P the 1929 depression. | banks teay Jend. five, 10 or even | Ure, and also authorizes 46 warships, _Guests present were John Lamiell, Panks officials and return. Sealing e Foil Romew‘s |anna Durbin, young singer; has|"yolon. conce pove estimated| ThAt depression forced . all ma-| 5 times their original deposits. | 990 planes and 26 auxiliary vessels. Director of the International Postal it. Connors handed the pouch to: vel recammen: - | earned $165,000 from movies and| . pederal Government would tons of the world — including|” 1, other words, a million dol-| Congress must first vote on the Service, Mayor Leslie Nerland of Acting Operations Manager S. E. lation ;"’ eliminate - bank holding. radio in the past 27 months. This " | America—off the gold standard. o . | actual appropriations before con- — - — (Continued on Page Two) , companies. Im revealed here today. (Continued on Page Seven) l But gold standard or no gold (Continued on Page Six) | struction. Gminlied.an Page, Three) formation of new bank holding companies and restrict existing | The Federal Government was 3 B3 ! able o collect its. tax on cigarets|Sterilization of gold is a trick. It's ones. ‘ i a gadget invented by the U. S. This action virtually kills the I I E | bought by the Massachusetts State s 1 MUNEY GE Hospital but lost out in a suit for| treasury and federal reserve sys- Fact is, Sterilization and de-| bill. The bill, deposited in a federal b taxes on motorcycles sold to the tem to meet some of the strange| yocerve bank, became the base ,m.}bame.shlp tonnage of 135,000 com-