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T — l i ' i THE DAILY ALASKA EMPIRE - “ALL THE NEW'S VOL. LVL, NO. 8486. ALL I‘HE TIME” V4 —— JUNEAU, ALASKA THURSDAY, AUG. 8, 1940. BATTLE FOUGHT 0 CONGRATULATIONS FUNDS OF FRANCE T0 BE SEIZED Indications Are Money in U.S. May Be Confiscat- . ed for War Debt WASHINGTON, Aug. 8.—Sec- retary of Treasury Henry Mor- genthau disclosed today that the United States is considering the possibility of taking the World War debt payments out of the frozen French funds in this country. This was disclosed when the subject of war debts was raised at a conference with newsmen. Secretary Morgenthau said that before the French funds are released he wants to see “what happens to American invest- ments over there.” France alone owes the United States $4,000,000,000. . ——— - WAR BLAME COURT NOW IN SESSION Hearing;Sl—art onWhy!" France Entered Conflict and Who fo Blame RIOM, France, Aug. 8. — The French Supreme Court formally op- ened hearings today to inquire into | “war blame,” and determine who | the and how many led to the nation’s disaster and to mete out punishment. Former French Interior and Col ¢nial Minister Georges Mandel is understood to have arrived secretly here, under military escort. Mandel was taken into custody at the Afri- \ can port of :Meknes and faces \'charges of plotting against the se- wurity of the state. He also is charg- ed with being partly responsible for the war guilt of the former govern- .ment. The official will be tried along with former cabinet leaders accused of being responsible for France's military defeat. The other defendants apparently have not yet arrived. They include former Premiers Edouard Daladier, Blum and Paul Reynaud and former Allied Generalissimo Maurice Game- lin, C".w S, WASHINGTON — It looks as iii certain big business groups were using the national defense pro- gram as an excuse to get out fromi under some of their legal difficul- ties with the Justice Department. At any rate; the National De- fense Advisory 'Commission has suddenly stepped in to advise the| Anti-Trust Division of the Justice Department to be more sympathetic | tcward the -big oil companies which now face their biggest anti- trust battle in years. Assistant Attorney General Thur- man Arnold has been preparing the suit in order to force the big oil companies to separate the pro- duction and refining of oil from the selling of oil. He claims to have evidence showing that through this “morfopolistic” control, the public is being overcharged $150,- 000,000 a year on high-test gaso- line alone, Arnold was all set to file the suit last week—when the National Defense Commission stepped in. While it didn't demand that the action be dropped, it argued very forcefully that such a suit would be a disruptive factor at a time (Continued on Page Seven) | | | K | | | cratic National Committee. And Better n Training FARLEY RESIGNS OFFICE President Accepts Resig- nation as Postmaster General - Letter | HYDE PARK, N. Y, Aug. 8— | President Roosevelt today accepted the resignation of James A. Farley as Postmaster General effective August 31. In a letter dictated by the Presi~ dent he said that he felt “real re- gret” and wished Farley success in private business. The President, in the letter, praised Farley’s administration of the Post Office and “all of us in the Administration will miss you |deeply. We count on seeing you often and I especially count on this after all our years in close personal association. Our friendship will al- 1ways continue.” — e Republican Proposal Is Given Swat WASHINGTON, Aug. 8. — The| Senate, late yesterday, rejected by a vote of 47 to 36 the proposal made by Senator John A, Dana- her, Republican of Connecticut, which would have given National Guardsmen and Reserve Officers 20 days after enactment of the pending mobilization bill in which| to resign. | Ghezzi Is Nominated WASHINGTON, Aug. 8-—Presi-| dent Roosevelt has transmitted to the Senate the name of Alfred | dents and not working in | Ghezzi to be Postmaster at Fair- banl's Stanaing uncer a portrait of President Roosevelt at the White House, | Postmaster General James A. Farley (left) congratulated Edward J. Flynn of New York, who will succeed Farley as chairman of the Demo- Johnny Get Your Gun,” Do If Now: Law Is Debated By JACK STINNETT WASHINGTON, Aug. 8.—Jonnny, youd better be looking for your gun. If you are an able-bodied male, hetween 21 and 381, without depen- a key position in some defense industry, you are going to need it. That is the way the thing looks now, although I have pointed out before that the compulsory mili- tary service bill is in for a battle before it clears the Senate an House and is signed by the Presi- dent. A law in some form it will become, certainly—the only time that any sort of compulsory mili- tary service has become operative in the United States during peace time. The way the bill looks at this writing, about 12,000,000 young men are going to register with their respective draft boards some time in September. Within a month, 40C,000 will be told to report for military training, and although some will have legitimate excuses which will exempt them, the rest can take it and like it . .. or go to jail. WE NEED A BIG STICK The reason for the bjll—and a majority of the folks back home seem to agree that the reason is adequale—is primarily sthat we were caught without a Navy ade- quate to defend both oceans. Not having a Navy that can take care of the Atlantic as well as the Pa- cific (best estimates are that it will be 1947 before we can reach that state of preparedness), the idea is that we must have an army which will scare the pants off any- | body. Opponents of the bill aren’t ar- guing that we don't need the army . they're just claiming that we can get enough men by enlistment. ,The army people, hav- -\ ing. been through all that before, say it can't be done, despite recent enlistments of about a thousand a day. They claim, and history backs them up, that shortly this voluntary business wili reach the saturation point and they'll have days when nobody comes in and says “I wanna be a sojer.” The bill currently provides for registration of men who are 18 and not yet 64. Only those be- tween 21 and 45 are liable for military service, but the others may have to serve in home de- | fense units. There's a probability that. men .under 21 and over 45 (Continued on Page Four) MEMBER ASSOCIATED PRESS JAPAN DIET IS WARLIKE ON BRITISH | Resolution Passed Asking Government fo Drive Influence Qut TOKYO, Aux 8A0ne hundred and twenty-six members of the Jap- anese Diet today adopted a resolu- uwon urging the Japanese Govern- ment take “all available and effect~ ive measures to drive British in- fluence from East Asia.” The resolution says the arrest of | preminent Japanese business men in England by the British Govern- ment is “purely retaliatory, unpar- donable and atrocious.” The Diet has 466 members. EMPEOR HEARS REPORT TOKYO, Aug. 8—The Emperor of Japan conferred with Foreign Min- ister Matsuoka at the Imperial Villa |at the Sesism of Sayama this af- ternoon, to hear a report on the international situation. Matsuoka is expected to advise the Emperor of developments that have taken place since the new totalitarian govern- ment of Prince Konoye took office, and announce its program for = “Great East Asia” dominated- by Japan. PRAYER DAY IS SET ASIDE o B ng FOR NATION President D_eTignales Sun- day, September 8, for Special Purpose HYDE PARK, N. Y., Aug. 8— President Roosevelt has set aside Sunday, September 8, as a Day of Prayer when Americans of every creed and denomination should ask God to “grant to this land and to the troubled world, a righteous and enduring peace.” NO MORE ALASKA AIRMAIL COMING BY BOAT, WORD Protests to the Post Office De- partment that airmail for Alaska has been dispatched from Seattle by steamer instead of plane on several occasions since Alaska Clip- per service began are being inves- tigated, J. D. Hardy, Superinten- dent of the Division of Railway Mail Service, has informed the Juneau Chamber of Commerce by letter. The Chamber had complained that airmail for Juneau was ar- riving by steamer on Tuesday in- stead of on the Monday Clipper. Hardy said the Superintendent at | Seattle had been notified to cease the practice of dispatching mail in this manner. Another letter to the Chamber from Delegate Anthony J. Dimond said the Civil Aeronautics Board had informed him there is nothing Urging the construction of an American Airways to prevent it from “taking on board at Kei- chikan all air mail in that city efther in the Post Office or on board ship, consigned to Juneau” and that “the present inhibition extends only to air mail originating in Ketchikan and consigned to Juneau.” STOCK QUOTATIONS NEW YORK, Aug. 8. — Closing quotation of Alaska Juneau mine stock today is 4%, American Can 95% , Anaconda 19%, Bethlehem Steel. 77%, Commonwealth an Southern 1%, Curtiss Wright 7. General Motors 46, International Harvester 43%, Kennecott 26, New York Central 11%, Northern Pacific 6%, United States Steel 52%, Pound $391. DOW, JONES AVERAGES The following are today's, Dow, Jones averages: - Industrials 125,13; grounds that they were not members 'is ‘enroute here today by PAA El- ectra from Pairbanks. rails, 26.70; utilities, 2247. VER ENG This scene in the U. _BAst of Uncle Sa HATCH MEASURE UP FOR CHANGE, * -ASSERTS WILLKIE Broad Amendments Are| Proposed fo Anti- Politics Law COLORADO SPRINGS, Col., Aug 8.—Wendell L. Willkie said today he will ask Herbert Hoover and Alf Landon to support his demand for | broad amendments to the Hatch anti-politics laws, such as would re- quire the President, Cabinet mem- bers and all other exempt officials, to file sworn statements of their | assets upon entering office and on leaving office. Willkie - will have a conference luncheon here with Landon nexli Tuesday and will see Hoover later in the week. At a conferencé with the news- men this afternoon, Willkie said “50 percent of all money spent in polit- | ical campaigns is wasted money” 1 and he has always held to that| belief. | —vo—— | SPAINIS ONVERGE | OF FIGHT Nation Mayl—ake Up Arms Against Great Brifain ~Hint Is Given MADRID, Aug. 8—The declara- tion that Spain is on the verge of battle with Great Britain is made by the newspaper Arriba in a front| page editorial. { ‘The newspaper attacked Great| Britain -and declared that Spain is a moral belligerent in the war. The newspaper declared that | Spain first was a neutral, then non- | belligerent, and now is bordering on the verge of a physical battle. The | newspaper renounced what it termed |the present official policy of neu-| trality, and suppression of public |and private privileges. e i JEWS OUSTED BUCHAREST, Aug. 8.—All Jewish civil servants here were ousted from jobs today in the Rumanian Min- | New Alaskan Seclor of Navy Creafed by Knox [sibly rice suffer | estimated the |Nazis Mine | searchlight positions were subjectedl‘ |Harmless Whife {Powder Dropped | warehouse for the Alaskan Glacier| |istry of Economics, in the last of a menes of anti-semitic moves by the | | Bucharest ‘government! . ' | The Jews were temoved on| of the party of the nation. while a workman (foreground) shouts directions to t 1e crane operator. accelerated armament program. WASHINGTON, Aug. 8-—Secre- tary of Navy Knox announces the creation of a new Alaskan sector of the Navy. The sector will embrace Alaska and related waters and will be un- der the jurisdiction of the present Thirteenth Naval District The Commander of the new sec- tor has not yet been appoinwd - T ro pical Hurricane Dies Down Heavy Pro;;(er—ty Loss Is Re- ported - Rice Crop Is Heavily Damaged PORT ARTHUR, Texas, Aug. 8.— The toll of the tropical hurricane so far is one dead Chinese found in the bayou at Crown Point, La., injured, wide property loss, houses unroofed and crops damaged, pos- g mostly, It is rice crop loss will reach $500,000. The storm is now reported to have vented its wrath. New Harbors BERLIN, Aug. 8—The German | High Command announced today that mines have been laid at the entrance of several English harbors. It was also declared a number of | armament works, anti-aircraft and to air attacks. —e———— By Nazi Raiders LONDON, Aug. 8—Chemical experts expressed belief today that the harmless white powder found after a German raider dropped leaflets last night might have been used to cause the packets to burst with a loud pop in the air. Chemical experts said the powder is a sulphuric compound. PG i NEW WAREHOUSE | The Citizen's Wharf Company at| Petersburg has completed a new| Sea Food Company cannery opera- | tions. PR AT PRPE N MARSHAL COMING U. 8. Marshal Ben Mozee of Nome | S. Arsenal at Rock Island, 11, shows a big tank being handled by an overhead crane, Construction of tanks like this is ARRICA WAR IS RAGING British and lalians Fight- ing Bitfer Batiles in Desert CAIRO, Aug. 8—A British com- munique said today that . Italian columns driving into British Soma- liland were halted after the capture of Madweina and Hargelsa “as an- ticipated.” It was reported by air reconnais- sance that continued movement of Italian forces is evident, particu- larly in motorized transport, in the Libyan-Egyptian border region where a large scale desert offensive is soon expected. Great Britain has conceded the Italian capture of Zeila in British Somaliland, but expressed belief the Italian forces will have a dif- ficult time taking Berbera, the country’s principal port, 150 miles away, as the road there will be un- der constant fire from air, land and sea. Itallans called the capture of Zeila a great strategic victory ac- 10 | complished by Italian and native Ethiopian troops under command of Duke Oosta, Viceroy of Ethiopia. It was declared by Italy that this| is the first step in the mcorporuion\ of French and British Somaliland | into Italian East Africa. ANCHORAGE JOB BOOM IS OVER; CAUTION URGED Fisheries Mers Fill in Vacancies - Jobless Accumulating Don't go to Anchorage or Fair- banks without a job and hoping to find one, Director Joseph T. Flakne of the Alaska Territorial Employment Service warned today. Large numbers of workers were needed recently, the really big rush " PRICE TEN CENTS LISH CHANNEL WAR MACHINE IS MADE FOR UNCLE SAM AIR FIGHTS ARE STAGED INMORNING Air Filled with Roar of | Cannons, Chatter of » Machine Guns E BULLETIN — LONDON, Aug. | 8~—Fifty-thres German planes have been destroyed in attacks on British convoys over the Eng- lish Channel in the biggest series of air encounters of the battle for Great Britain. This is the official statement issued to- night by both the British Ad- miralty and British Air Min- istry. Sixteen British fighters and pilots are missing but reported German onslaughts have been beaten off. Three coastal steam- ers have been damaged. British bombers struck at the big German naval base at Kiel early this morning, starting a series of explosions, and the French port of Cherbourg was bombed during daylight before the German air raiders appear- ed over the Channel. (By Assoclated Press) A violent air battle that cost the Nazis at least nine planes. six of which were bombers, and the Brit- ish two planes, raged over the Eng- lish Channel, southeastern coast of England, for an hour this morning, filling the air for miles around with the roar of cannon and the rattling chatter of machine guns that thrill- ed the watchers. Fifty planes took part, swooping to within 1,000 feet of the roof tops or sea. The fight opened with a German attack on shipping. One German fighter wu seen to dive swiftly in flames into the water. Nazi Claims The German High Command, in a special bulletin, declares that 34 British planes have been shot down and 12 ships, totaling 55,000 tons, were sunk today in addition to 8,000 tons of shipping captured. Speed boats sunk several ships last night, is the Nazi claim. Late this afternoon a second bul- letin was issued by the German High Command stating that 12 ships were sent down in a Nazl attack on a convoy, ether-ships were dam- aged and five fighting British planes were riddled and downed in flames in fighting sections over the Chan- nel shortly after noon today. The communique admits that four Ger- man bombers failed to return to their bases. Raid Attempted s The British Admiralty, in a late afternoon bulletin, said German (Continued on Page mm) India Aid Sought by Brifains Bombay R;p—o—rts Dedlare New Government Plan Is fo Be Refused LONDON, Aug. 8.—In the House of Commons and House of Lords today, Great Britain promised India a “free and equal partnership” in occurring all in one weekend, Flakne said. Now the men released when the| fishing season closed in Birstol Bay: and elsewhere have flocked to An- chorage and Fairbanks, resulting i unemployment at both nlaces, Flakne said. The national defense boom did absorb about 1,000 unemployed here, | Flakne said. He expressed a hope| that the report of big wages and| abundant work in the Interior| would not, however, go to the heads| of Alaska working men. Whatever you do, Flakne said, don’t give up a job here in me[ hopes of finding a better one in| Anchorage. Many who have done| so are now stranded witheut work.| ———eee CHANGE OF VENUE | The ‘divorce suit of Louise BllLs’ against William L. Bills has been' transferred to Fairbanks where Mrs. Bills is now living. the British Commonwealth, even broader than the Dominion rela- tionship of Canada, Australia and South Africa enjoy. The effort is being made to get grescer contribution of Indian | wealth and manpower in the prose- | cution of the war against Germany |and Ttaly. INDIANS SILENT BOMBAY, Aug. 8 —~Congress party president Azad and other leaders of the independence movement, de- clined to comment on Britain's offer of a new constitution, Nationalist newspapers said that |since the offer falls short of de- mands for immediate independence, | the party is not likely to consent | to participation in the British Em- pire’s war. Mahatma Gandhi said any state- ment of his would be presumptive, as he has virtually retired from public affairs.