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THE DAILY ALASKA EMPIRE “ALL THE NEWS ALI HE TIME” VOL. LV., NO. 8324. JUNEAU, ALASKA, WEDNESDA\} JANUARY 31, 1940. MEMBER ASSOCIATED PRESS PRICE TEN CENTS FINNS SMASHING NEW SOVIET ATTACKS Slayer, Convicted in A Grenville Seaman Rescued Moments Before Destroyer Sinks WILLAM DEMPSEY AT LARGE Killer of Defl& U.s. Mar-ii shal at Seward Makes ‘ Safe Break 3 GETS AWAY FROM PRISON DURING FOG Island Seamd by Peni-| tentiary Employees | ~Find No Trace TACOMA, Wash,, Jan. 31. — Search ' for William Dempsey, 40, life termer who escaped from McNeil Island Federal Penitentiary yesterday, broad- ened today as prison officials reported they had found no trace of the man since he fled from a road gang under cover of a dense fog. One hundred and seventy- five penitentiary employees, as- | signed to shifts, searched the 4,000-acre island but no trace | was found. | Dempsey, 20 . years age, at | VISIOL £r0ul & tadicy BRITISH 10 AVOID | FRICTION | s | Prime Minister Discusses || Present Relations with U. S. and Japan R SEIZURE OF SEAMEN | NOTFOR DISRESPECT ] :Trading with America Con-| || centrafes Dollar Re- | sources for War | LONDON, Jan. 31.—Prime Min- ister Chamberlain assured the United States and Japan that Great Britain is anxious to avoid friction or disturbance of her trade | and other relations with them or| other neutrals in the war against | Germany. | This statement was made today in addressing a luncheon of the National Defense Committee. | The Prime Minister expressed re- | | gret that concentration of dollar| | resources in America for munitions land other supplies forced curtail- | | ment of purchases of other pro-; | ducts. ! Chamberlain said that one of the foremost aims of Great Britain in | the present war with Germany is to get it over and then return to jnormnl trade among nations. | Oriental Dispute | | Of the British-Japanese dispute over the seizure of 21 German sea- men from the Japanese Asama Mlle. Eliska Roubiczek Pictured on arrival in Bostor aboard the Exochorda is Mademoi- selle Eliska Roubiczek, French fash- jon writer, on a visit to the Uniter States from Marseilles. w 18 SHIPS DESTROYED, AIR RAIDS Admiralty in announcing the lqss Maru by a British warship, Cham- berlain said: “Nothing could more | distress us than that the Japanese | Government or people should feel W, The bow of the British destroyer Grentille, camouflaged with a blending pattern (cabled from London to New York), shortly before she slipped into the water after she was struck by either a “mine or a torpedo” at an undisclosed position while on war duty. The seaman clinging to the porthole was rescued but a moment before the vessel’s final plunge. The IO SRS VS SRS PR 07 oA S SOVIETS LOSE MILITA saigfi8l lives were lost. o which failed to save her, laska, Makes Escape ASSAULTS T REDULSED NEAR LAKE Nine Russi~a—n Tanks Are Reported fo Have Been Destroyed FIVE PLANES SHOT DOWN, KARELIAN ZONE Imporfan'tfiaid foHave Been Recaptured Near Frontier HELSINKI, Jan. 31.—Smash- ing renewed Russian assaults at several points northeast of Lake Ladoga and destruction of nine Russian tanks is re- Five Russian planes were also downed and several score of Soviet soldiers were killed Taipale as Soviet thrusts the Karelian Isthmus back. reported lit- is shown in this exclusive photo portant city north of Lake La- doga, about 20 miles from the Soviet frontier. ——-——————— St PRESTIGE WITH JAPANESE; pARALYSIS BOUNDARY MEET OFFNOW FUND 1O BE home was in | TWO-YEAR FLEET BUILDING PLAN IS - GIVEN APPROVAL House Naval Committee i Tentatively Agrees fo | Navy Program WASHINGTON, Jan. 31 The House Naval Committee has ten- tatively approved of the two-year fleet building program at a cost of approximately $650,000,000. The program authorizes the con- struction of 21 additional warships THEY'RE NAVY ‘TOPS’_Admiral J. 0. Richardson (seated), new commander-in-chief of the U. S. fleet, checks over maval matters with Admiral Charles P. Snyder, new commander Pengnsyl\{anla. TOKYO, Jan. 31.—The Foreign Office spokesman today announced a complete disagreement and dis- | banding of the Mixed Commission studying the boundaries of Si- beria, Mongolia and Manchoukuo. The Japanese spokesman said the Russian and Japanese members of the Commission “found if im- Suggests Inclusion All possible to reach an agreement.” | C|'|ppled child[en The spokesman did not give out| 9 any details formed following the WASHINGTON, Jan. 31.—Presi- bloody border clashes of last year. dent Roosevelt, in a radio speech Japan and Russia have been jaq¢ night, suggested that the in- edging toward a disagreement since | gy, tije paralysis fund drive be ex- Russia’s failure in Finland which ended soon to include all crippled has lowered Russian military pres- children, whatever the disease, tige in the eyes of Japan, The President described the don= o i ors to the paralysis fund drive as he largest army ever in the field, | “and the army, which is joined in Es'a'e ol the march to save life, and not take it, is taking a part in the defense BROADENED Presideni’s—B_irthday Talk — , STOCK QUOTATIONS Seward, Alaska, shot and killed Deputy United States Marshal Isaac Evans in cold blood as the officer was questioning him concerning the slaying of a | woman at Anchorage. Dempsey escaped to the woods after the shooting of Evans but was hunted down by | g a_quiekly organized posse. He |German High Command was taken to Valdez where he & e et R T | Reports Effective Work life, X Dempsey’s in Past Two Days | we exercised our belligerent rights Cleveland, Ohioe. |in any want of courtesy or respect B | BERLIN, Jan. 31—The German | for them” High Command reports that her | flapaxl has rorm:m¥ protested the Air force, in two days of intensive | Selzure and the iqcldenh i now | raiding of shipping off Great Bri- subject to diplomatic discussion in |tain’s coast, destroyed 18 vessels, | TOkYo. |nine Monday and nine on Tuesday. | Discusses U. 8. Teada | The High Command, giving an| Of trade relations with the | account of the Nazi raiders’ achieve- | United States, Chamberlain said: | ments, said it was a demonstration ! “We in the past have been - the of what Hitler said: “The Allies' largest customer of the United THIRD TERM‘wanwd a war and they are going States, especially for the agricul- to have it.” | tural products but as soon as the | Seven armed commercial ships are War began we were compelled (o SXE | reported to have been sunk and also curtail our imports for things not | two British patrol ships. essential so we may concentrate Buck Passed on FDR OueS'j "The communiaue admits that nu- our dollar resources for the pur- . . | merous other ships escaped destruc- chase in the United States of those hon tO lmema"ona' | tion in the attack by the air raid- |enormous masses of munitions and Commi"ee iers' | equipment necessary for us to have B e {in order to carry on the struggle, }but let no one suppose we want| COLUMBUS, Ohio, Jan. 31.—The u United Mine Workers Convention N a l! Su b has sidetracked a resolution endors- ing a third term for President Roos- evelt and agreed to refer the matter to its powerful International Exe- en' own cutive Committee for action. The vote appeared close, but Pres- ident John L. Lewis, who six days azo predicted the renomination of n |' a( Roosevelt would result in his “ig- nominious defeat” said the major- ity was overwhelming. e i There was an hour and a half i flood of discussion over resolutions B”hSh vessels’ Admg as the Resolutions committee substitut- | ed for the 47 resolutions backing | COflVOY, Repon U' thie; Ehird jerpl Boat Destroyed LONDON, Jan. 31—Prime Min- ister Chamberlain announces the destruction yesterday of a Ger- man submarine in an attempt to |attack a British convoy. NEW YORK, Jan. 31, — Closing| Chamberlain also quotation of Alaska Juneau mine | Britain now has 1,250,000 men un- stock today is 6%, American Can der arms, 115, American Power and Light| The Prime Minister also an- 3 17/8, Anaconda 26', Bethlehem nounced that the British Admir- Steel 72 7/8, Commonwealth and alty will become responsible for Southern 1%, Curtiss Wright 10,/all of Great Britain’s merchant General Motors 52%, Internation-|ship building and repairs, effec- al Harvester 54, Kennecott 35, New | tive tomorrow. York Central 16, Northern Pacific ———,,e 8'i, United States Steel 56 3/4, ol iy |LICHTENBERG IS ON DOW, JONES AVERAGES ‘ HIS WAY Soum The following are today’s Dow,; John Lichtenberg, operator of a Jones averages: industrials 145.33,| hardware establishment in Nome, rails 30.56, utilities 24.70. is a passenger south aboard the —_———-———— Mount McKinley. Cashmere shawls were import-| Lichtenberg is also a former ed into England in 1666 from| member of the Territorial Legis- Tibet, | lature. | to use the measures we have taken | for any purpose other than prose- | cution of the war, nor are we in- | different of the losses neutrals | may thereby sustain.” ONE 5. E. ALASKA 'ONE S. . MAY BE OPERATED | fions on Herring in | 1940Condemned | SEATTLE, Jan. 31.—Lowell Wake- | field, Secretary of the Legislative said Great/Committee of the United Fisher-|go rapary mans’ Union, following a hearing Southeast Alaska this year. Paul Dale, Union Secretary, pre- sided at the hearing which list- ‘ened to representatives of the pack- jers, reduction plant workers, and fishermen, all of whom agreed the closing was not justified. D THATCHER IN | Traveling man I. A. Thatcher is a guest at the Baranof §otel, hav- ing arrived here yesterday from Ketchikari to spend a few days in connection with his trade, 'Hearing on Closed Opera-‘ of the battle force. They're on the U, §. "MODEL FEDERATION" i NOW i | | By PRESTON GROVER “model federation” outlined by | Prime Minister Chamberlain fol- |lows the rough outlines of “Plan |Number Two” long under discus- | sion by economists here as a basis for peace and commercial har- mony in Europe. Doubtless, it is a bit jarring to of State Hull, for it deesn’t dove-tail too well into his PR e erving operauom: Cl(:::;’,lrade agreements program in so jorder, sald there will be a CONCEr'EC | sor g5 the latter is based on the |effort to operate at least one oil |and fish meal reduction plant in| principle of “most favored nation treatment. The Chamberlain plan -as now worked out between France and England, is a tightly-knit relation- ship. It would require some ma adjustments, either on the part of the European federation or on the part of Secretary Hull's trade agreements program. jor France and England have agreed to stabilize their currencies against each other. For practical purposes they have boiled francs and pounds together into a monetary stew out of which the two units of WASHINGTON, Jan. 31, — ’I'ht" - Reouction pLant (0. K. FOR EUROPE, NOT U. §. 1 money come with the same flavor. even when they retain their char- | acteristic sizes. They agree to coordinate their | purchases, so one will not bid against the other for supplies bought elsewhere. They agree first to buy from each other, and to go sewhere only later. P mably they will regulate their tariff schedules so each can| ork most advantageously with | the other, NOT FOR THE U. &. Now it is easy to see that 1 system will work admirably n the government exercis completely controlling hand in each country, just as it does in ¢ countries now. No free trad- country such as the United ates could get into that show ‘and come out with a whole skin. It would have to exercise thesame controls over its commerce and currency that France and England exercise. Just now, of course, it is working out fairly well for the such only | (Continued on l;s‘;ge ;I'hree) and 22 auxiliary vessels. The program also boosts the Navy's minimum air strength to 4,500 planes. Borah Is $200,000 Disclosure Is Made when Senator’s Safe Deposit Box Is Opened e —— Rounded Up, Assault (ase Seattle Police Active in Attack on Fairbanks Man and Wife ‘ SEATTLE, Jan. 31.—Ten negroes( Mrs. Borah said she was surpris- have been arrested in a police|ed by the amount of the estate. | roundup in the South End and| < —— = are held without charge for ques-| tioning in the brutal attack on M} GETS s5,00° joB !J. Edmundson and ‘his wife by| ke ‘Lhrco negroes last Saturday night.l SACRAMENTO, Cal, Jan. 31— Two negroes were arrested last! ., culbert L. Olson today ap- night after they seized Police Pa-|pointeq Paul Peek, 35, to the $5,000 | trolman W. H. Miller, who was in 5 year job of Secretary of State to civilian clothes and working on gy the vacancy created by the death the Edmundson case at the time.'january 18 of Frank C. Jordan, who Two negroes seized him and de- held the office for 39 years. | manded money. Miller quickly | showed his authority and strength | LIQUOR LICENSES and felled the colored men, then A retail liquor license was issued sent them to jaill where they will yesterday by the District Court here face two charges to be made by to Jack and Jenny Barseth of Ket- him, chikan and 2 brewing license to Edmundson and his wife are the Pilsner Brewing Company of from Fairbanks, Alaska. ‘chU:hlkun. WASHINGTON, Jan. 31.—Senator William E. Borah left his widow an |estate of approximately $200,000, |almost all in Government bonds. This is disclosed by Mrs. Borah who said the bequest was discovered | when the Senator’s safe deposit box SRR WS of American childhood.” The President further said the celebration is an “expression of the greatest political asset, the enor- mous fund showing good will, good humor, simple human kindliness which underlies our public life.” The President celebrated his birth- day yesterday at two parties, both at the White House, one for the visiting moving picture stars and the other for old friends, while the First Lady visited all of the public cele= brations given in Washington, KETCHIKAN "BOILING" WITH HEAT (Winter Spfi_lacking as Mercury Hits 61 in = First City KETCHIKAN, Alaska, Jan. 31— Local residents are going coatless today as the warmest January in history draws to a close. { Yesterday a record-breaking max- imum of 61 degrees was registered here with cloudless skies. A temperature of 29 degrees was the coldest temperature during the month which has been devoid of winter sports, with no snow or ice,