The Daily Alaska empire Newspaper, December 17, 1938, Page 1

THE DAILY ALASKA EMPIRE “ALL THE NEWS ALL THE TIME” VOL. LIIL, NO. 7977. JUNEAU, ALASKA, SATURDAY, DECEMBER 17, 1938. MEMBER ASSOCIATED PRESS PRICE TEN CENTS B S— RESCUE PLANS ARE HALTED BY WEATHER Sensational Developments in Drug Blow-up 3 BROTHERS OF SUICIDE UNDER BAIL Quick Mov;s_FoIIow in Coster Case-Investi- gators Now Busy VARIOUS RACKETS OF UNDERWORLD REVEALED Assumed Names Shown Up —(lose Corporation of Family Is Shown BULLETIN — BRII)(-I‘P()RT Conn., Dec. 17.—The pyramid of profits which Philip Musica built up behind the assumed name of F. Donald Coster disclosed. It originated in an illicit alcohol racket during the early prohibi- tion days. Strong indications are that his underworld connections may have reached into the racket- eering empire of the late Dutch Schultz and other mobsters. Investigators report that boot- legging activities gave Coster a start to venture into legitimate business. 3 BROTHERS ARRESTED NEW YORK, Dec. 17. — Three Musica brothers, Arthur, George and Robert are held under $100,000 bail each on charges of violating the Federal Securities Act. A fourth brother, Phillip, who as F. Donald Coster, President of the McKesson- Robbins, third largest drug firm in the world, lay dead, a suicide in Fairfield, Conn. Assistant Attorney General Am- brose McCall said information has uncovered wholesale sale of arms and ammunition which involves many living persons in the fantastic fabric of the Musica family’s finan- cial exploits which grow hourly. Sensational Deveolpments Sensational revelations are prom- ised. Others have already rocked the | nation. Ten investigations are underway. Phillip Musica, later known in the business world as F. Donald Coster, has been identified as a World War spy investigator and was later mixed up in murder, forgery and larceny. Italian born immigrant, he chang- ed his life completely and fooled everyone. He rose to command the drug empire. Financed Revolt Reports are circulated that he helped finance the South American War and has also smuggled arms to Spain in violation of the Neutrality Act. Arms have been sent out lab- eled as milk of magnesia. The brothers played various roles as Phillip’s aides. George Dietrick, Vice-President of | the drug concern, has been identified | as George Musica and George Varn- ard, Canadian agent for the McKes- son-Robbins Corporation, has been identified as Arthur Musica and Robert Dietrick, purchasing agent, is Robert Musica. They are involved in the million dollar collapse of the United States Hair Company in 1913 and for which Coster assumed the blame. McKesson-Robbins common stock, which was $36.50, is now $7.50. The company has 72 wholesale branches WAR IN EUROPE WITHIN FEW MONTHS, IS OPINION OF AMBASSADOR KENNEDY * dent and during sador gave for several time the personal conferred that his SHINGTON, Dec. 17. P. Kennedy, United States to Great Britain, told thinks | toward in Europe are very seph Ambassador President Roosevelt that he of few furthering the cause in Europe. summer I a war months possibilities within a grea’/ mbassador the Chief Ex view the predicted no war in Europe,” Kennedy. “Well, the prophet 31 “Last would be Ambassador going out of on December Ambassador ports that he and stated he don in February. Kennedy brought to rcutive a pessimistic political developments in Europe, swift moving develop- ments ce ring around Germany, being uppermost in his mind The Ambassador and the of is going Presi- to Fight for Ideals Urging the United States to battle for its ideals, Sir Anthony Eden, ‘crmer British foreign secretary, recently ‘addressed ihe American Manufacturers’ Association in New York C Painting a vivid picture of a world torn by unrest, he urged democra to “hold fast to our faith, cradle it in stone, set steel to defend it.” He said his visit to the U. S. is neither official nor semi-official, “simply unofficial.” Warm applause greeted Eden when he said: “We are not calling out for help from others nor seeking to lure others to pull our chestnuts cut of the fire.” Photo shows Charles Hook, Manufacturers’ Associa- tion head, left, pointing New York’s night skyline to Eden from a special cutter. GARNER MAKES EARLY RETURN 10 WASHINGTON SPENDING FOR RELIEF IS TO BE Statement Regarding Funds for WPA Capital City at Request of Roosevelt WASHINGTON, Dec. 17.—Vi President John Nance Garner today for an intimate talk with reduce relief spending about $30,- hours Ambas- opinion that the Munich pact did nothing of there said I'm business Kennedy denied re- to resign will return to Lon- CUT IN SPRING Vice-President Refurns fo Senalor Ba rkley Makes doliar loan to Ghina. WASHINGTON DGC 17.—Senator | re- | Alben W. Barkley, of Kentucky, said turned to the National Capital City |the Administration is expected to TERRITORY IS (0-OPERATING IN WAGE-HOUR LAW D. Stewart Serving in Infomational Capacity Without Salary B. D. Stewart, Territorial Com-| missioner of Mines, is serving as| representative of the wage and hour | law administration purely in a tem- | | porary capacity, carrying out a coop- | erative attitude on the part of the| Territory, he explained today after | returning to his headquarters here | yesterday afternoon on the Princess Norah after a trip to Washington to confer, in behalf of the Govern- or's office, with wage and hour law officials. The wage-hour admuuslm(ion\ has no machinery to carry out the provisions of the act, Mr. Stewart| explained, and will not have suffi-| cient funds to do so until the forth- coming Congress acts, The Territory, | through the Governor’s office, of-| fered to do what it could to t | until such time as the Federal gov- | ernment was in position to take| over with the result that Mr. Stew- art, after he left Washington, was notified by Elmer F. Andrews, wage- | hour law Administrator, that he had been designated to handle the work in Alaska until such time as the Fed- eral setup could be effected. Mr. Stewart was appointed because of his position as ex-officio Commis- sioner of Labor in the Territory, a system which is being carried out generally throughout the States. + The temporary position is non- salaried and the duties, the Com- missioner said, will mostly be con- fined to furnishing information. He will make no decisions but will for- ward all matters that come up to Washington for interpretation and | answer. The Commissioner said he had a large volume of material on the new act and he would be glad to supply or obtain such information as may be desired. In Seattle, while en route home, Mr. Stewart had several conferences | with mining men. He also stopped in Victoria where he conferred with officials on the mining laws there | with particular emphasis on mining taxes, information which he expects to pass on to the Legislature next | month for such use as they may‘ want to make of it. Mrs. Stewart joined the Commis- sioner in Seattle and returned home | with him. | e~ tle, Wash., as the driver swerved G.O.P. Must Go Liberal, Says Aiken Vermont Governor Makes| Statement If Party Ex- UNITED STATES pecisfo Gef Going WASHINGTON, Dec 17. — Gov. lo MAKE '.OAN, | George D. Aiken, of Vermont, today |said that if the Republicans want (HINESE GOVT | to win the Presidency in 1940, they must develop a liberal program and | attract the of labor and| | farm. | Gov. Aiken said: “The Republican ‘_Party has got to realize it must be liberal if it is gbmg to g«-t dnywh('l'(‘ o YEllOW RIVER FLOODS CAUSE support — | Twenty- five Million Dol- | lars, for Credits, for Commercial Use WASHINGTON, Dec. 17.—Diplo- |matic circles say that the United | States Reconstruction Finance Cor- | poration will announce a 25-million | United States officials said that |the loan will be strictly non-mili- tary. The loan will be provided to furnish motor trucks and other | manufactured goods. | All of this is regarded as veryY | significant. This should be an in- dication that the Chinese Govern- ment is expected to survive. ‘ The Chairman of the Recon- Six Dislrids-flporied In- undafed in One Prov- ince in China SHANGHAI, Dec. 17—New floods HALT, FIGHTING to avoid hitting an automobile. but at the tim: of the accident. SUPREME COURT SCOOPS INVESTIGATORS, TOSSES JOB TO NEXT CONGRESS By PRESTON GROVER WASHINGTON. Dec. 17. — The Supreme Court scooped the mono- poly investigators and tossed a job into the hands of Congress before the inquiry into big business could get started. | Just as the joint congressional- departmental inquiry into patent monopolies and other monopolies was to begin, the court upheld the right of a patent owner to limit the use of his patented articles even after selling them. Specifically the decision applied to patented vacuum tube ampli- fiers used in radio receiving sets and talking picture machines. The {court held that Western Electric Company. owner of the patents, could license a company to sell tubes only for use in home set |radio stations. It would be illegal |to sell the tubes to somebody who |wanted to make a talking picture machine. LIABLE TO TRIPLE DAMAGES General Talking Pictures Corpor- ation bought some of the tubes and in defiance of the license used |them in talking picture machines. Now, under the decision, the com- pany is liable to triple damages. Not only did the company protest of Justice argued that such a rul- ing would “put the administration of the anti-trust actsin serious jeo- pardy.” It was a split decision, Justices Black and Reed holding that when | the company sold radio tubes, the buyer could use them in any man- ner he chose. To give the patent lowner the right to restrict use of at the decision but the Department | | Sixteen children were injured, none seriously, when this bus crashed into a pole between Tacoma and Seat- There were 38 persons riding in the New Atfack Bomber for U.S.IsPla Will Have Speed of 6 Miles| a Minute-Double Fir- ing Equipment WASHINGTON, Dec. 17.—Author- itative sources revealed today that the Army Air Corps is developing a revolutionary new type of warplane in the race to keep ahead of other countries in aviation advances. The new weapon is described as an attack-bomber, combining fea- tures of the existing attack and bombing planes but with speed ex- pected to approach six miles a min- ute and more gunfire capacity. Over a dozen manufacturers have been working on the plans since early in the year. The craft will be a two-motor affair and able to pour heavy ma- chine gunfire on ground troops and at the same time carry on bombing operations. ,—e TRAIN SPEEDS ON AS TRAGEDY STALKS ABOARD Express Me@lger, Car in Flames, Hangs On, Then Drops fo Death CONNELLSVILLE, Pa., Dec. 17. —An express messenger, clinging desperately with a companion to the side of a blazing car, plunged Children Escape Death in School Bus Crash ‘STORMS KEEP PILOTS HOME FROM FLIGHT 'Plans for Saving Stranded | Patterson Crew Aband- ! oned Unfil Sunday 'CUTTER CYANE NOW JOINS GULF DRAMA Cope and Simmons to Take Off Tomorrow on Wheels, Floats Plans for a mass flight today of | four airplanes, two pontoon-equip= ped and two wheel equipped, to the shipwrecked crew of the ilifated | Patterson, were abandoned today | when unfaorable weather reports | from Cape Spencer made the flight impractical. | High wind and heavy seas ar® still battering the desolate shore |north of Cape Fairweather where the seamen surviving the Patter= {son’s wreck are <trunded, but with promise of morc iuvorable flying call for a flight of one wheel plane |and one pontoon plane tomorrow morning in an attempt to take the now six days stranded men out of | their predicament. Another Coast Guard vessel has | been projected into the picture with \news from Lt. Comr. Ricketts of the Haida that the patrol boat Cyane has beer: sen: north from Ketchis kun to cooperat: with the Haida nnd the Morric and aviators. | Preseni Plans I'he p: esent plan calls for Sheldon Simmons flying the Alaska Alr | Transport Lockheed out tomorrow jsidc by side with Lon Cope in the | Marine Airway: Fairclild on wheels. Tioth pilots beite™~ a wheel land=- ing will be possible at the scene of the wreck «nd at Dry Bay, twenty miles north. In that event, Cope will ferry the survivors from the wreck {to Dry Bay, where Simmons can |land in the Alsek River and take the passengers there for flight to the cutter Morris at Yakutat. At noon today, the Haida was | proceeding out of Yakutat back to | her anchorage off the wreck, the Morris was remaining at Yakutat, land the patrol boat Cyane was off | cape Decision, progeeding from Ket- chikan to Icy Cape, just west of Cape Spencer, expecting to arrive sometime tomorrow morning. Setup With that setup, pilots Simmons and Cope will get weather reports from Yakutat, Sea Otter Creek, Icy Cape and Cape Spencer, the reports from the first three points coming from the cutters stationed there for that purpose, and the Spencer re- ports coming in hourly by special arrangement with the light keepers there. The flight today was abandoned when icing conditions, extremely low ceiling and poor visibility was reported from Spencer, with no in- formation available as to the nature of always questionable weather off Icy Cape where great ice masses reach the sea and have profound effect on weather conditions. With no landing fields for a wheel plane certain at all between Juneau and Yukutat, and a landing for a seaplane impossible over the open sea and wave battered shore from President Roosevelt which ponuu{ms\uooooo monthly in the spring m‘ speculated might go far to determine | early summer. whether harmony or conflict will| Senator Barkley said Congress wil prevail among the Democratic leg- be asked to appropriate not mor| islators during the coming session | than $600,000,000 for the WPA Tor to his death as a Baltimore and |Ohio train sped on, the crew un- aware of the tragedy. Edward D. Owens held on almost in 38 States and 55,000 retail stores. Eden Leaves for struction Finance Corporation is on the Yellow River have inundated % S ||said to have a very good record at six districts in northern Kiangsu lils. - patents, 508 SERA Kipkioen, At~ picking loans that have proved |district Province, according to dis- faed, - would e (a4 iissden o patent privilege out of all reason. 0od. g | pafches received heer. Patent monopolies have been a Cape Spencer west, the hazard of “soupy” weather combined with strong winds of thirty and more Home Affer Visit 0f WeekinU.S. NEW YORK, Dec. 17.—Anthony Eden is homeward bound after a| visit of one week in the United Stat- es during which time he has visited President Roosevelt and also ap- peared before many leading organi- zations and clubs in this section of the country. A crowd of several thousand cheered Eden, former British Cab- inet member, and his wife as they| bearded the Queen Mary for their| return trip to London. of Congress. [the period beginning March 1 to| The fact that China is to be | Garner returned here earlier than | July 1, the closing four months of | |given this aid should be of great endangered. {usual at the special request of Presi- H.hv present fiscal year. dent Roosevelt. Y > 'MURRAY CASE T0 Babv Uipper "BE HEARD MONDAY Finds Hole in IN DISTRICF COURT Fog, Lands Trial of Wesley Murray charged‘ with stealing $1495 from Larry Bryan is scheduled to come up at the head of the calendar Monday | in Federal District Court and the complete jury panel has been in- i 'structed to report at 10 a.mn. SEATTLE, Dec. 17. The Baby clipper, from Juneau via Ketchikan, found a hole in the dense fog in this section and landed at the Sand Point Navy Base at 2:40 o’clock this after- noon, |encouragement to them. The loan {will be handled through the Im- port and Export Bank. A great difficulty of the plan! | however, is that Japan has stated that any such assistance given to China and not allowing them simi- | lar privileges will be considered un- jApAN FOR(ES o | SHANGHAI, Dec. 17—According Senator Shipstead, of Minnesota, |t advices received here from Chi- | is said to have stated that the nese Vice-Minister of Air Gen. Chen | proposed ban on arms shipments Cheng, it is estimated that the Jap- to Japan might involve the United anese have lost 270,000 men during rstatei in war. Shipstead said that|the Yangtze Valley fighting from |it would be dangerous to sell to|June through September. China while refusing shipments to| Casualties on other fronts are not the Japanese. estimated as yet. HEAVY LOSSES - ARE REPORTED ‘War movements in that sector are favorite subject for congressional inquiries or threats of inquiries for years and now comes along a case rlght down the alley of the anti- nopolists, with the Department nf .msuce backing up a demand for a restriction rights. ANTI-MONOPOLY |‘BIG SHOW' All in all, this pillared city of public drama ig simply outdoing itself with a three-ring anti-mono- poly circus. Pirst and foremost is |the monopoly investigation con* ‘ducted jointly by <Congress and (Conu‘;ued on Page Eight) | of patent monopoly | ,1o4eq in the wooden car that was five minutes, with the flames lick- ing out of the door of his car with the train going 50 miles an hour, before his grip slipped. His face and hands were burned as were those of Martin Egan, his com- panion, who said an oil lamp ex- put into service because of the | Christmas rush. The car and con- tents were destroyed. R U G s S WADE ENROUTE NORTH Hugh J. Wade, representative of the Federal Social Security Admin- istration here, sailed from Seattle aboard the Baranof for Juneau after a trip Outside in connection with duties of his office. miles per hour velocity from several points of the compass effectively prevented any flying in the area to- | day. | Guides On Haida The cutter Haida radioed that Dr. Smith, Captains Tom Sandvik (Continued on Page Six) DAYS T:LL CHRISTMAS