The Daily Alaska empire Newspaper, July 10, 1940, Page 1

HE DAILY ALASKA EMPIRE “ALL THE NEWS S ALL THE TIME” VOL LVI.. NO 846] JUNLAU ALAbKA WE l)NLSDAY JULY IO I940 MEMBER ASSOCIATI-_D PRFSS PRICE TEN CENTS NAZIS, BRITISH CLASH IN ARR SEA BRITISH, ITALIANS IN FIGHT Running Baftle Reporfed| During Night - Both Sides Make Claims (By ASSOCIATED PRESS) Italy disputes the British rule over the seas as both sides claimed a victory battle during the night in the Tonian Sea, just Ttalian boot. The British version claims Italian battle fleet fled “almost im- mediately” behind a smoke screen after one Ttalian battleship suffered, perhaps fatally, from long range fire. The British Admiralty said “mendacious reports given out by the enemy” feat on the seas, but the true facts are the Italian ships came out, were met, and the clash developed into a chase with the Italian fleet flee- ing. No British ships suffered.” Fleet Gains Shelter The report further says that it must be admitted, however, that the Ita shelter of shore batteries. The Admiralty added that the asualties TM Italian communique admit- ted casualties of 29 fleet men killed and 69 wounded but insists the Italian Naval forces sought out the British men-of-war to head off an apparent British plan to at- tack Italian coastal positions. Claim Sinking , The communique further “We succeeded in enemy. ably a battleship was sunk while only one of our warships were hit.” ‘The Italians however, admit the sinking of the Italian destroyer Zeffiro and the loss also of one submarine. Ttaly'sclaim of seeking the initia- tive for a sea battle differs remark- says: contacting the a edly with the British account which | reports its Royal Navy made con- tact with the Italian ships and pur- | sued them in flight. Early Report British and Italian warships en- gaged in a fierce battle in the Mediterranean last night. The London Admiralty announc- ed that the naval engagement was under way east of the British Is- land of Malta. The announcement indicated that the British warships had gotten the best of the first clash and were pursuing the Ital- ian ships which were trying fto withdraw behind a heavy smoke screen, The encounter was the first ma- | Jor battle between British and Ital- ian warships since Italy entered the war. London sources said that an Ital- | ian battleship had been hit direct- ly by a capital British ship at ex- tremely close range. The scene of the battle was southeast of Sicily and north of Italian Libya. The number of ships engaged was not disclosed last night but major ships were believed involved on both sides. The British squadron was steam- inz through the Mediterranean | when it encountered the Italian warships. Immediately there were! heavy salvoes which lighted up the darkened sea. The Italian warships threw up dense smoke shortly after the battle began. Reports indicated that a British fleet of undetermined size was steaming through the Mediterrane- an announcement had been made by would indicate a de-! an fleet must-have gaihed the among the Italians were One British warship, prob- ' screens | in a westerly direction, This| A Start Toward Those 50,000 Planes FUND ASKED FOR BY FDR Addifional Sum of Nearly Five Billion Dollars Is Requested | | in a violent zigzag naval | below the instep of the the | This aarial view of Bolling Field in ‘Washington, D. C., shows some of the planes massed in front of the hangars for review by the National Aviation Forum. Members, leaders of the aviation industry, met in the eapital to study plans for annual production of 50,000 warplanes. PRO, CON OF LIQUOR EUROPE'S HUNGER LOOMS AS HITLER'S NUMBER ONE HANDICAP FOR MASTERY f Referendum on Territorial Control Presented at Club Meeting Both sides of the question of Ter- | ritorial control of intoxicating bev- crages, which will be presented to ithe voters of Alaska by referendum (ballot at the General Election Sep- | tember 10, were told at an open meeting last night of | As ociation of Women Voters, in the American Legion Dugout, Presided over by Mrs. | Metcalf, president of the Association of Women Voters, the meeting | brought out a large attendance of | members and of others interested !in the question of the evening. | Speakers were Territorial Repre- sentative J. P. Anderson, author of d. B. 51 in the 1939 Territorial Legislature, which provides for the referendum and #/ho spoke in its favor, and Robert J. Schoettler, who| | | spoke against the referendum. | Arderson’s Side A student of state liquor control, {J. P. Anderson first HITLER'S PROBLEM Can Europe eat without American aid? By MORGAN M. BEATTY AP Feature Service Writer Nature. The second is war. the third is a new and | broadened Monroe Doctrine in the making, Taking these forces in order: And vastly | ture of 1937, of which he was also now|a member. He based his the conclusion he had reached after study of the liquor problem that tate control was the best method, WASHINGTON, July 10. — The men who shape the foreign policy lof the United States are working 1.—Europe suffered the worst + i e temporarily on the assumption that| winter in a half century. Sprmu;,"r]:‘],lrj:;rI:f‘é(:;:;;'gfif;:‘m;ctgm Herr Hitler is not only the ml"“cali was late, cold and wet. Winter| oy 5 gpudy of the state control | and military kingpin of all Europe, | grain suffered, Crop prospects are|m.iioqs of the thirteen states in | save Russia, but the economic mas- | about half as good as usual. Au-|which it exists. lter as well. \Lhcnut reports to the U. §. De-| wphe fact that the liquor indus- So they assume, too, that it's|partment of Agriculture indicate|iry pays such heavy taxes and is jup to the boss to feed 350,000,000 | Rumania's crop of winter wheat “\\HHIHL to pay them, indicates that mouths. And the republics of this|40 percent below normal, and rye|the liquor business exists by suf- hemisphere are interested in know- is 26 percent under, Rumania Is |ing how Hitler proposes to do it. ‘Fmopc's most important bread bas- Even in good times, if all the |ket. food raised on the continent of| g2__gpver since Hitler came to Europe (Russia excepted) WeTe power in 1933, Europe has been |evenly divided, each person would ysing the cream of its substance| only have 80 percent of what he|for armies, munitions and ma- needed, chines of war. Even Sweden has In normal times Americalpeen making munitions and arma- makes up Europes’ deficit in raw| ments for other powers. The switch- | materials. Something like half of| gyer from wartime economy to |the American nations' exports 0| peacetime economy always has been | ®Ver- ) | there. disastrous. After the World War,| “If the Territory were to handle The American policy makers as-|pankruptcy was practically univers- sume that Germany and Italy be-|al. International debts went un- lin the light of other businesses,” Mr. Anderson said Fundamental Principal {pal behind the liquor question and |it is that as long as the traffic is in private hands, the business will do all possible to promote it, and it is my observation that as things QUESTION UP Frank A.| introduced a | referendum measure in the Leglsla-’ bill on| | ferance and should not be regarded “There is one fundamental princi- | {are now the stiuation is worse than | ! WASHINGTON, July 10.—Presi- | dent, Roosevelt today asked Congress |to authorize an additional $4,848,- 171,000 for defense. In a special message to Con- gress, the President asserted that |“we do not use our arms in a war | of aggression, we do not send our | men to take part in European wars, | but defense of our country is nec- | essary.” | The request brought to approx- !imately ten billion dollars in funds to contract authorizations asked at |this session of Congress for land, sea and air armaments, | Previously the President asked ‘Ccngress and was voted about five billion dollars for two categories. | Specifically the President today requested $1,161,000,000 in cash and | $2,686,000,000 to contract authori- | zations. The President said that Lhe “principal lesson of the war up to | the present time is partial defense. Inadequate defense is so great now that great sums are needed. This means a sacrifice for program and means hard work and ! participation by the whole country in a total defense of this country and this nation must make sacri-! | fices and work in unity to retain | freedom.” | | JAPSHOWL IN CHINA OVER U.S. Nippon Pa;);r— Flays Ma-| ! rines — Slogans Say | 'Down with America’ BULLETIN—SHANGHALIL, July 10.—The Japanese Navy today joined the Army in bitter ver- bal attacks on the United States Marine garrison reiter- ating charges that Japanese gendarmes arrested by the Ma- rines on July 7, were mal- treated and the Japanese mili- tary insulted. Moriiji Takeda, Commander of the Japanese Naval garrison, told the newspapermen: “Vio- lence and insults inflicted on Japanese gendarmes were bar- barous acts beyond description.” the Alaska held | SHANGHAI, July 10—A tirade against the United States | Marines was spread across the front page of the newspaper Tiriku Shim- po, generally regarded as the mouth- in :pleml of the Japanese Army China. The tirade came as the after- math of the international settle- ment, incident authorities demanded apology for | “mistreatment” of Japanese plain | clothes gendarmes arrested by the |Marines in the Settlement July 7 The paper declared the Marines | were “gentlemen, with human faces, but the skin of animals” and added liquor from the time it enters the|that indignant patriots have posted | ‘Territory until it reaches the con- handbills such as “Down With 50 large a| violent | in which Japanese | lieve the distress occasioned by the | loss of markets in Europe will be] so great that almost any trade pro- posal by the continent will be ac- |cepted in the Americas as a mat- ter of course. a Rome radio announcer who said | that units of the French fleet from | Alexandria, now under British con- trol, were included in the squad- | ron. The Italian fleet was believed to have ventured forth in an ef-| | fort to fall upon the British squad- | TUREE OBSTACLES 1 ron which the Ttalians believed was| But three great forces are at f the ships which bee: work to prevent such an easy so-\ el o vs Wik s | ution of Europe’s . economic prob- | (Continued from Page Seven) lems, The first of these is Dame ;have attempt to produce easy money. paid. The depression resulted. German financiers apready have foreseen the disaster ahead, and in every captured country, even in Germany, rediscounts rates been lowered—which is an Easy money is the first step to- ward inflation. 3.~The new Monroe Doctrine is | sumers, it would be easier to curb|America,” and “Remove American Of British Em Investigating Such Aclion jana of Holland By JACK STINNETT WASHINGTON, July 10.—Of all | the “possible centingencles’ that | your government and mine is con- | as a result of this more strange than may become the seat ‘the British Empire. No matter how remote you may consider it, the State Depnrtmenti has been investigating it as a pos- ‘ sibility for weeks . . . simply the| no surprise may crop up in Hu1 coming months for which we vull‘ rot be prepared What's more, in the realm of possibilities, this considered so terribly remote, question is, of course, can Ger-| many deal a blitzkrieg to the Brit- } ish Isles similar to those with whien | she has swept aside a half a dozen smaller nations and crushed France as though that supposedly great military power were no more than | & Papier mache Graustark? And 1t |the Nazis can, will England carry jon? | Winston Churchill has said that | |England will. There are other |'straws in the wind. Princess. Juli- | | sidering none is Canada um \ of | foggy | | isn't | The | pire; U.S. Is | and her family have been sent to Canada, More | than 20,000 children, refugees frn'llw the danger zone of the Bnu:h‘ | Isles, are being sent to Canada. In the State Department here | it already, is considered a cer- tainty that IF the capital of the British Empire is established mn the New World, it will be at Toron- to (Ottawa is the capital of the Dominion, in case you have forgot- | ten). Toronto is a hedge-hop from Buffalo, N. Y.—an easy sail to the northern shore of Lake Ontario, IS TOUGH G()IN(- Now, off the record, here are a| few of the things that your State Department is discovering: 1—Canada cannot support a | very large population. Its present 11,000,000 or so is strung out in a narrow band along the northern | border of the United States, curv- ing slightly upward at the ends.} Since 1900, it has had immigrants| numbering something like 6,500,000 —but so many of these and of those already there have found the (Continued on Plze Eevnn) TURKS CALLED INTO SESSION ON NEW FEARS ' Russia Expefiad to Give Out Demands. of Turkey Shortly. ISTANBUL, Turkey, July 10.—The | Government today called an emer- x:"nv session of the National As-| wmbl_v for Friday to consider de- mands of Russia. Stalin is expected to make cer- tain requests of Turkey, but Turk- ish officials denied any Russian ultimatum has been received. However, all quarters believed a S oviet note will be forthcoming \thhm the next few dnyq - HUNGARY T0LD T0 LAY OFF Hitler Saysfirgel Land in| Rumania at Least for Present MUNICH, July 10. — Hungary's {leaders were today told definitely by Hitler and his Foreign Ministers that Hungary must not upset the balance of the applecart at this time |by trying to “secure her rights” in Rumania. 2 Informed German sources said Premier Pal Talevi, and Foreign Minister Count Csaky, who came |to discuss Hungary's demands that | Rumania restore at least part of war-torn Transylvania, conferred first with Foreign Minister Von Ribbentrop and Count Clano, and then were received by Hitler. PETAIN GETS | ficers, for basic wage increases, im- |der direct examination by Albert RATE BOOST ATTRIBUTED TO UNIONS Semar Testi»f'ie_sExtra Pilots Don't Keep Water Under Ship SEATTLE, July 10—Heavy In- creases in wage costs, expenditures, equipment maintenance and insur- ance fees since 1937 prompted the Alaska Steamship Company to in- crease freight rates, J. D. Nelson, Alaska Line rate expert testified at the Maritime Commission hearings here today. The demands of seamen, and of- provement of working conditions and overtime pay were the chief factors necessitating freight rate increases, Nelson testified un- Stephan, counsel for the three pe- titioning companies for rate in- creases. Nelson added that soclal legis- lation and new war taxes placed an additional operating burden on shipping companfes. Voluminous detailed reports on rate Increases were submitted as exhibits. About Union Pilots Nelson’s Testimony, charging the Northland Transportation Company vessels, on which union pilots are stationed, “have very bad records compared with vessels of the com- pany on which there are no piiots,” evoked ripples of laughter from maritime officials and attorneys. Under cross examination by At- torney Davis Scoll, counsel for the Commission,, Willlam Semar, North- land Line manager, testified that BATTLE RAGES ON MEDITERRANEAN BIG DEFENSE Canada May Become Seaf 150 PLANES ENGAGED IN AIR BATILE Terrific Rafl Made on Coast of England by German Craft LONDON, July 10.—Ten Ger- man planes are said to have been shot down in a great air battle raging over England’s southern Coast on the English Channel. It is officially stated that nearly 150 planes are engaged in the air raid, the clashes taking place over Warden, southeast English port. Two formations of German raiders, each formation num- bering 50 planes, swept over the section and were immed- fately engaged by 50 British at- tack. planes. Attacks are being staged on coastal towns, also the convoy of small ships. It is believed, the British Ad- miralty announces, that one small ship has been sunk. R St AIR CORPS STAFF ON WAY HERE Major Gene—nfl— Arnold and Party Flying Toward Alaska Today WASHINGTON, July 10.—Major General Henry W. Arnold, Chief of the Army Air Corps, and members of his staff left here today on & ten day flying trip to inspect re- cently undertaken Alaska air bases. Taking off from Bolling Field at 4 oclock this moming (Pacific Time) in a twin engined transport. Major General Arnold and his staff are going via Spokane, Wash., Prince George, B. C., to Fairbanks and An- chorage. The inspection party will also visit other points in Alaska to in- spect possible sites for auxiliary landing fields. It is officially announced that the new Anchorage base will be known as Elmendorf PField and the cold weather base at Fairbanks will be known as Ladd Field. Congress recently appropriated $18,000,000, which is immediately available, for their construction. Major General Arnold and his staff will return to Washington about July 20. With Major General Arnold are Lt. Col. Arthur McDaniel, of San Antonio; Lt. Col. Ira C. Eaker of Eden, Texas; Major Harold L. Clark, of Minneapolis; Capt. Eugene H. Bebbe of Santa Barbara; Mechanical ' Sergeant H. B. Puzenski, Flight En- gineer of Cleveland; Sergeant Rob- ert Meade, radio operator of East Orwcil, Ohio. Major General Arnold command- ed the Army Corps flight of ten planes to Alaska on a mapping aer- {al survey in 1934 and was awarded the Distinguished Flying Cross as in 1936, the Masters, Mates and Pi- lots Association “forced” the com- pany to sign an agreement to carry two pilots, a captain and three mates for every voyage of two of the company’s largest vessels. Semar explained that on other company vessels a captain and three the abuses of liquor. Too Many Abuses “There are too many abuses un- der the present system, especially derson said. Mr. Anderson discounted the ob- jection to the referendum on !hc ground that the Territory’s | would be less under Territorial con- "7 Continued on Page Five) (Conunued on Page Two) among the native races,” Mr. An-! Hindrances to the Development of East Asia.” — ee——— 1 LUSK TO LEAVE | | Frederick C. Lusk, Treasury De- partment.expert who has been mak- ' two months, will leave for the States !this week. He plans to fly south on | Friday’s Clipper, ‘ ing a study of Alaska for the past mates sufficed, although the mates carried pilot licenses. There's a Difference Semar pointed out that although the law doesn't require lines to carry pilots, the union believed pi- lots were necessary for complete protection of passengers, crew and cargo. “In light of the record since we (Continued on Page Five) FORMAL 0.K. VICHY, France, July 10. — The French National Assembly passed a | bill today giving Marshal Petain full powers to draft a new consti- | tution, Vote on the measure was 569 to 50, with 15 not voting. the result 1,000 Japanese Demand High Noon Apologhs SIIANGIIAI Jl.ly 10—A thou- sand Japanese residents of Shanghai held a mass meeting tonight and demanded by reso- lution, that Col. Dewitt Peck, U. S. Marine Commander, “apol- ogize before an international gathering for insults offered the Japanese.”