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

THE DAILY “ALL THE NEWS ALL THE TIME” ALASKA EMPIRE VOL. LIL, NO. 7862. JUNEAU, ALASKA, WEDNESDAY, AUGUST 3, 1938. T e A ————— MliMBER ASSOCIATED PRESS PRICE TEN CENTS e ASST.WAR SECRETARY COMES TO ALANKA ' Fourth Day Battle Raging Siberian Border 8(]V|ETS_‘MEET ghes Gets Cross ‘of Honor BOUNDARY LINE World Ha:Feeling, Also Fears That New War Approaching NIPPONS CHARGED WITH AGGRESSION Moscow Government Indi- cates Prepared for Ter- rible Conflict — WASHING- TON, Aug. 3.—Reports received here frem Tokyo say six Soviet Divisions have been thrown into the battle at Changkufeng Hill, and indicates that possibly 150,- 000 or more men are engaged in the battle. The War Department’s infor- mation is that a Russian d 14,000 officers and men, so ions would mean more than 84,000 or more, and presum- ably a comparable number of Japanese are facing the Soviets. (By Associated Press) Continued border fighting between large forces of Japanese and Rus- sian troops have caused world feel- | ings and fears of a new war. | The Moscow Government threw | on the shoulders of Japan the re-| sponsibility of further conflict on the Siberian Border even as she BULLETI warned of possible “serious conse- " quences” if Japanese provocations continued there and indications of Japanese wishes to reach a peace- ful settlement. et Intentions The Soviet Communique, by TAS, official Russian Agency, declared that “since the very beginning of the conflict the Soviet Government has declared | that it intends only to defend ter- ritory indisputably belonging to the Soviet Union. The official communique also re- calls that the Soviet Government indicated a willingness to re-define ,the boundary in separation of Si- beria from Japanese-Korea and Japanese protected Manchoukuo. Japanese Hopes The Japanese Foreign Office spokesman in Tokyo said Japan hoped to localize trouble and set- tle it by diplomatic steps but the presence of large forces on the frontier area however indicated that the battle which began last Sunday | might be merely a prelude to major operations and a real war. | issued News 1 i | Howard Hughes (left) is shown in New York, receiving the Cross of | Honor of the United States Flag Association from Col._Jnmcs A _Mnss, president-general of that body. The award was madé in recognition of Hughes’s record-breaking flight around the wqr}d_. K Treasury Regulations Are Being Ducked by American Importers of German Goods JUNEAU GIRLS RECOVERING i i SLAYER OF TWO By PRESTON GROVER WASHINGTON, Aug. 3.—Ameri- can importers of German goods have discovered a way to duck Treasury regulations intended to counteract German subsidies. More- over, the Treasury hasn't yet found a way to block it Two years ago Germany was sub- sidizing its exports to the United States with such carefree abandon that a mile high tariff wall was put up against it. Here is how that husiness worked Germany paid interest on its tensive debts to U. 8. investols, s © | half in free currency and half ia i | script to be redeemed at some in- representatives who supported the | definite future date. In turn, the © | German Conversion bank offered Great Array on Front | & Advices from the latest “front” indicate large forces are lined up along the border, including infan-| try, tank and airplane corps. | ——e—t—— | LOYALISTS ARE AIR RAIDED BY INVADING FORCE | Insurgents Report Halting| Offensive Along Span- | | ish Ebro River HENDAYE, Spanish-French Bor- | der, Aug. 3.—The Spanish Insur-| gents assert they have halted the Barcelona-Catalan drive of the Loyalists. The unofficial reports claim the offensive along the Ebro River has | been halted by incessant bombard- | ments by hundreds of Insurgent war planes. | It is claimed that so effective have been the air raids that the Spanish Government militiamen have been disorganized completely and unable to reform their lines.| e MRS. SYVERUD TO SITKA Mrs. Florence Syverud, who is as- sociated with extension work for the University of Alaska, is a pas- senger for Sitka on the M. S.‘ Northland. ki Winnie Ruth Judd, “trunk mur- deress” of her two closest friends, who was recently re- perted recovering in Arizona State Hospflal from the effects of a sedative. Hospital officials insisted the tablets were not taken in a suicide attempt. Mrs. Judd, who dismembered the bodies of Agnes A. Leroi and Hedvig Samuelson of Juneau, Alaska, and shipped the parts in two trunks to Los Angeles, was condemned to hang, but was ally adjudged insane. Foreign Jews o Be Barred from Italign_ Schools ROME, Aug. 3.—The Fascist Gov- ernment announced today that all foreign Jews will be barred from Italian schools beginning this com- ing fall and it is also announced that a new program to increase ef- ficiency of the nation’s armed force will be to ban Jewish students. Presumably the orders do not ap-} ply to 47,000 Jews who are Ttalian citizens, | to buy up this script at half value. | That, together with the 50 percent | \paid in cash, gave Americans 75 | percent of the cash value of their | interest coupons. They were glad | to get even percent, such was ;LIIP uncertainty. | Next step was for the German | government to use this 25 percent { “profit” on the deal to help export- | ers finance foreign sales. It was all done under strict regulation and | the export bounty was allowed only ¢ | to exporters of German goods which were having tough competition on world markets. — HOW IT WORKED It was a neat way of making Am- erican holders of German bonds pay for a subsidy on German exports| to the U. 8. For example: An American cotton exporter 1wonld ship cotton to Germany. He |would be paid in blocked marks. A German exporter would give {him dollars for the marks and send him on his way rejoicing. The |German exporter then would go {to the German Conversion bank jand explain that he could buy | German cameras or tableware to jsell in America if given a subsidy jto help him match American | prices. | If he had a nice, clean Aryan face and the deal promised to {bring much needed foreign ex-| !change to Germany, he would be | given the subsidy and so could buy | German goods to ship to the U. 8 | It worked so well that in no time | American manufacturers began ‘prowsung at such competition and the Treasury took steps. The At-| torney General upheld a Treasury plan to impose a tariff to offset | these subsidies. It ranged from 221 percent on tableware to 45 percent on cameras and 56 percent lon surgical instruments. [ VARIATION ON THEME That put a damper on the trade, 4 (Continued on Page Five) SENATOR LEWIS T0 RESIGN SEAT; GIVES REASONS Staunch Democrat from Il-{ linois to Quit After Next Congress WASHINGTON, Aug. 3.—United States Senator James Hamilton Lewis, Democrat of Illinois, famed for his fancy vests and courtly man- F riend Plead LOUIS JOHNSON 0 TOUR NORTH FOR2PURPOSES |Will Make Aeri;l Inspection of Proposed Interna- tional Highway 'ALSO TO STUDY AIR " "BASE AT FAIRBANKS with 17th Floor Ledge Percher ners, announced he will resign from the Senate after the next session of Congress. His present term will{ not expire until 1943. Senator Lewis said he believed others should be given an oppor- tunity to receive the honor of elec- tion to the Senate Senator Lewis was first elected to public office in the state of ‘Washington 40 years ago. Political | Jeaders always depended upon him | as a loyal Party man. CLARK, W'BILL BOTH WIN IN DEMO PRIMARY Party Groups Divide Hon- ors in Missouri and Kansas Elections Mrs. 17th flos the man’s actions. WASHINGTON, Aug. 3.—Roose velt backers and anti-administra- tion backers divided Democratic honors yesterday in four primary | elections. | Senator Bennett Champ Clark of Missouri, foe of the court bill and | other White House measures, won | a landslide renomination and so| did Senator George McGill of Kan- | sas, loyal follower of the President. | Their victories were not unex-| pected, however, for both had xhv,l)““ Ice Stops Eastern Trip, active backing of the state party| —Is Returning Now | organizations. President Roosevelt | had taken no part in either race. | to King Island The same division extended to| TR 53 nominations for House seats in two other States. Three West Virginia ENDED, FATHER HUBBARD PARTY POINT BARROW, Alaska, Aug. 3. | —The Rev. B. R. Hubbard returned | | here today after a short voyage to | the East where he was halted in | his oomuak cruise by drift ice, and started south immediately. Father Hubbard said the objec- tives of his trip had been complete- ly attained and that he had wanted to prove the feasibility of a migra- tion from Asia during prehistoric %umrs in native oomiaks. | The glacier priest also said he | wanted to check the similarity of the Eskimo language between wesi- ern and eastern tribes. He said his King Island Eskimo companions understood eastern Eskimos per- | fectly, and proves thus, that Eski- | mos from Greenland to Siberia are one people. The Rev. Hubbard, Ken Chisholm | and Ed Levin, and six native hun- | | ters, made the oomiak trip of more| | than 1,000 miles in a large native | walrus hide craft propelled by an In the Republican primaries, lheloulbord motor, paddles and sails. | President defeated their opponents but in Virginia two avowed New Dealers lost out. Rep. Howard Smith of Virginia, who district includes the home| towns of Washington and Jefferson, | won a three to one victory over William Dodd, Jr., son of the form- er Ambassador to Germany. The vote was Smith, 19,000; Dodd, 6,500. Smith was on the blacklist of labor’s non-partisan league and CIO, but led two to one in Alex- andria, home of John L. Lewis, head of CIO. The only other Virginia House race was much closer. Rep. Norman Hamilton, calling himself pro-Roose- velt despite his vote against the government reorganization bill, lost by about 1,500 votes to former Rep. Colgate Darden, who was backed by Senator Richard Byrd's organ- ization. “John, we love you,” Mrs. Bull, a friend pleaded. OOMIAK VOYAGE | greatest interest was shown in the The glacier priest said sea action | Kansas Senatorial race because of | i5 exposing Stone Age village sites| campaign charges that one of the [at Point Barrow. He collected nu-| four candidates, the Rev. Gerald |mMerous articles here and is n‘Lurn-‘ Winrod, was pro-Nazi. Winrod, who | in§ now to King Island. | denied the accusation, ran third. o e e RN The nomination went to former| MTrS. Mary Lou Sunderland, sur-| Go. Clyde Reed. The count for half | 8ical patient at St. Ann’s Hospital, | ———— —.|was dismissed today to leave for her home ‘in Skagway. | (ConLiniAéd on Pfige chem_‘ Million Dollar Rain Hits Interior; Mining Camps Are Booming;Men Back at Work| FAIRBANKS, Alaska, Aug. 3.—| The rainfall is expected to boost ::hMIlllzgl{ 90;1:; ““:_ has fallen In| the output of gold during the bal- e Interior mining camps are E i { again booming. The drought, which | *"¢® of the 00-day season. Y The Chena and Tanana rivers hampered placer gold operatiol has been relieved. | rose sharply, but no damage is ex- The total rainfall since last Sat-| pected. urday has been one and Lhree-quar-} Army Engineers, studying the ters inches. | proposed Tanana flood control| Many men laid off earlier in the| problem, have been aided in their season because of lack of wafer are| survey because of the rise in the again back working, Lriver waters, Katherine Bull, rope tied around her, pleaded with John Ward, 36, to abandon his perch on ihe Hotel Gotham ledge as thousonds of New Yorkers jammed the streets below, spellbound by “Go back in or I'll jump,” Ward " answered. Others, including police and firemen, failed in efforts to coax him back to safely. Takes that Fatal Plunge While thousands of New Yorkers crowded the streets below, John Ward (in circle) perched on the ledge on the 17th floor of the hotel Gotham, smoked cigarettes and defied police, firemen and friends, who tried to persuade him to return to his room. After 10 hours, Ward leaped. The dotted line indicates the 200-foot path Ward's body took and the spot (x) shows where the body struck. The spot had been cleared of the curious by the police, Official Reveals New Inter- est Is Being Taken in Projected Road WASHINGTON, Aug. 3. Louis Johnson, Assistant Secre- tary of War, says he is leaving about the middle of this month on an aerial inspection trip to Alaska to study the projected Seattle to Fairbanks highway, generally known as the Inter- national Highway, and also study the projected establish- ment of an Army Air Base in Alaska. “Fairbanks 1s wne logical loca- tion for the Army Air Base since less fogbound than other areas,” said Johnson. ‘The flight survey and the proposed highway have assumed added importance since Premier Pattullo of British Columbia, has recently been in Washing- aid to construct the highway to Alaska through British Colum- bia and the Yukon Territory. Secretary of Interior Harold L. Ickes, now enroute to Alaska, recently expressed hope the highway will be built. Interested officials have dis- cussed the possibility of using the American Public Works funds and possibly American labor for construction of the proposed highway. FOR ALASKA DEFENSES | SEATTLE, Aug. 3.—Representa- | tive J. Mark Wilcox, of West Palm | Beach, Fla., sponsor of the “Fron- | tier Defense” air base bill in Con- gress, is enroute to inspect the new Tacoma air base. The Florida representative said: ;“I advocate early development of | the Pacific Coast air bases. Alaska | has great stores of minerals and is | attractive to nations not having | them and is in need of bases to de- !fend this wealth.” Regarding the PAA experimental | flights to Alaska, Representative ‘wucox sald he regarded this move | as a “laboratory for defense experi- | ment as well as commercial.” CLAIM “00 OR DIE” CHINESE ARE DEFEATED Japanese Report Advances ‘ Made in Yangtze | River Sector ' SHANGHAI, Aug. 3. — Japanese troops are reported to have over- i |come the “Do or Die” Chinese re- |sistance within 50 miles of Nan- |chang, important air base. The Japanese headquarters report ¥ | “gains” on the Yangtze River front but make no positive statement re- ‘garding advances. MAJOR AIR BATTLE SHANGHAI, Aug. 3.— Japanese and Chinese war planes have fought |a major battle near Hankow and it is reported a number of planes have been brought down, the Japanese spokesman asserted late this after- noon. It is disclosed that a number of Japanese bombers and pursuit ships encountered 54 Chinese planes dur- ing the raid. Of course the Japa- nese claim all but two of their | planes returned and they didn't do | a thing to the Chinese planes,