The Daily Alaska empire Newspaper, January 29, 1941, Page 1

THE DAILY VOL. LVIL, NO. 8633. — GOY. GRUENIN NAZISPLAN INVASIONIN APRIL, MAY Germans Can Put 18,000 Bombers in Assaulton | Great Brifain ‘ ASSOCIATED PRESS) (By S | Metaxas, 70, Dictator of Greece for| Great Britain has stepped up de- | nearly five years, died today after| " fense measures to meet the threat of the grand slam German invasion bid | Informed sources in Washington) predicted the invasion will come in April or May and 36,000 Nazi war- plenes will lead the assault. King George today issued a Royal proclamation ordering men from 37} to 40. to register for military serv-| icc | At the same time the British Government moved toward. drafting | women into vital war industries to| hasten the production of arms and | munitions. i The registration proclamation for | men is the second call in less than | two weeks. Men of 36 years of age| were summoned January 18. | ington sources rngardim:! asion, credit. the Germans a 4 to 1 advantage over the, 1 Air Force and the heralded | sion’ attempt will be during the g spring. Washington sources declare o could put 18,000 bomb- | ors and fighting planes in the air| with Ro DICTATOR OF GREECE DIESTODAY Premier John Metaxas Passes Away, Blood Poisoning ATHENS, Jan. 29.—Premier John a brief illness, King George organized a new Government which he said will carry on the war against Italy un- til victory is achieved. Thé Royal Proclamation an- nounced that Alexander Coryozis, Governor of the National Bank of Greece, will head the new Govern- ment and the Cabinet will be ‘com- posed of all the present Ministers.| Physicians attending Metaxas an- nounced that the Premier died as the result of “various complica- tions” including blood poisoning after throat inflammation. The Premier underwent a tonsilectomy on January 18 and as his condi- tion became worse he was given a blood transfusion on Sunday and two more on Monday > Survivors of Wreck Landed with another 18,000 bombers and fighting planes held in reserve. | So far, it is claimed the greatest| number of Nazi planes’ used al one time in an aerial siege of Great Britain has been less than 2,000! Lombers. . - et | Cthe \ Al Kelchikan Gunboat Charléslon IsRes- cue Ship-Transport Hits on Terflble Night KETCHIKAN, Alaska, Jan, | First survivors of the United States | Army transport Kvichak, which on Sisters’ Rock in Finlayson Chan- [ Drev Pearsos od Robert S.Alles {northbound to the Annette Island | ;Air Base, reached here this morning jaboard the U.S.S. gunboat Charles- %60 i ! Mr. and Mrs. David Wisley, of | Rock Island, Illinois, bound for the - ,air base, said they had a terrible night after the transport struck. | One Woman Passenger WASHINGTON—No other man in history ever has been sworn in for a third term as President of the! Mr. Wisley said: “We went to the United States, but Franklin Roose- beach in a lifeboat and could hear velt did not seem seriously perturbed ianor.her lifeboat behind us. We were by the ceremony. running with the tide but could The first thing he did after de- 1Ot see a thing as the night was scending from the Capitol and en- . Pitch dark and no lights were on tering his car, was to ask for a cig- | the ship. We reached the beach {nel at 10:33 o'clock Monday night, & GOVERNOR'S COMPLETE Following tradition, it is my privilege and pleasure to address the legislature at this, its fifteenth biennial session, to report on the state of the territory, to discuss our com- mon problems and responsibilities, and to make the recom- mendations from the executive to the legislative branch as |is both customary here in Alaska and established practice | everywhere under our American system of government. It is with a sense of profound satisfaction that I can | present to the members of the legislature a favorable picture of conditions in the territory and of territorial prospects in general. Perhaps the best way to appreciate how good these conditions are is to go back eight years and recall the cir- | cumstances that then existed as portrayed to the legislature in his last message by my distinguished predecessor, The Honorable George A. Parks. Reporting that the commerce f*Alaska in the preceding year, 1932, had reached “the decades,” he forecast a still |lowest point in nearly two ;further decline, saying: | “It is apparent that we must expect a decling in the | operations in our major industries during the next year and | possibly the year following. It is almost certain that federal | appropriations for public works will be curtailed, and our | own resources will not permit normal allotments for these purposes. . . . Industrial expansion appears to be wholly improbable for some time to come and we cannot hope for new activities that would be sources of revenue. . l The revenue for the past biennium deelined approxi- mately 25 percent . . . and present conditions do not war- rant the expectation that there will be a material improve- | ment in the near future. In fact, we should anticipate con- | tinued decline. . . .” Accurate as this gloomy picture was of conditions then xisting in the territory, we know, now, that, fortunately, the pessimistic forecast proved to be unfounded. Within vs after this message was delivered, a new national tration took over the conduet of affairs, and the rd march of the territory of Alaska, eco- nomically and socially, began. | Among the many beneficent reforms inaugurated by that new administration was an increase of 69 1/3 percent in the price of gold. Today—eight years later—the U. S. Geological Survey reports that the value of the gold pro- duction of the territory reached a new all-time high of $25,375,000 during 1940, exceeding even the highs of the gold rush days, and an increase of $2,100,000 more than the year 1939. Platinum metals likewise increased both .in auantity and value, the past year, 1940, showing an extrac- tion of 28,860 ounces valued at $1,092,000 as compared with 27,230 ounces to a value of $997,000 in 1939. The biennium recorded the highest production in’ the platinum metals, both in quantity, and value, in the history of Alaska. Total mineral production likewise rose, reaching approximately $27,668,000, a 9149 increase over 1939. Among the new | records should be mentioned that more coal was mined in the territory than in any preceding year—a total of 170,000 tons. One of the other factors which has contributed to the | prosperity of the gold mining industry is the growing: par- ticipation of the Reconstruction Finance Corporation by ting mining through loans which afford operators Fed- eral ‘funds at a lower rate of interest than is attainable otherwise. Nor is there any reason, as the U. S. Geological Survey points out, to assume for a moment that this new peak represents a temporary or accidental circumstance. On the contrary, a water shortage in considerable areas of the interior during a part of the 1940 mining season diminished the production. . In the fisheries industry the picture is less rosy, in that the salmon pack for the past biennium has been substantially | below the five-year average. In 1939 the total pack of canned salmon was 5,263,153 cases, valued at $34,441,082. This was a decrease of about 237 in quantity, and about 6% in value from the production e e JUNEAU, ALASKA, WEDNESDAY, JAN. 29, 1941. G CALLS FOR NEW TAXES arette. Then turning to Mrs. Roose- | velt, he said: “Well, how was it?” “Everything went off fine,” she assured him. | “I mean the speech. Do you think | it went over? Tell me your honest opinion.” Mrs. Roosevelt patted his arm af- | fectionately. “It was excellent, | Franklin,” she said, “really excel- lent.” The President leanéd back, in- haled deeply. “It certainly is grand weather, isn’t it?” he remarked. “Quite a change from four years ago.” (The 1937 inaugural was mar- red by a terrific downpour.) At this moment the chauffeur | called to Jimmy Roosevelt, eldest son, to look out for the tail of his swanky Marine overcoat which was caught in the door of the limousine. “Be careful, Jimmy," exclaimed his mother. “That coat. cost a lot | of money and you can't afford to | tear it.” TO THE LAST The inauguration wrote finis to the 43-year public career of Jack Garner, but the Texan got one con- solation. He was Vice-President seven minutes longer than had been | scheduled. As he prepared to ascend to the inaugural platform with his suc- cessor, Henry Wallace, the elevator that was to take him up was de- tained. “Let’s walk up, Jack,” suggested Wallace. “Nothing doing,” grinned Garner, glancing at his watch, “You voung fellows can walk if you want to, but while I'm Vice-President I'm going | to make the most of it. T've already (Continued-on Page rour) | side about 500 yards away and made our way up a cove about a mile from the scene of the wreck and stayed there until noon yesterday. Then we were picked -up and later taken aboard the Charleston. Mrs, Wisely was the only woman aboard the Kvichak. She said the experience was exciting but she was not frightened. The Charleston brought 23 pas- i sengers, 16 of whom are civilians, seven soldiers and 24 crewmen who survived the wreck. Capt. W. W. Williamson, Chief Engineer Einar Eckstrom and 11 crewmen remained aboard the Kvi- chak, Terrible Night “It was a terrible night, heavy seas and stormy,” said pilot Hau- gen but he declined further com- ment on the cause of the wreck. Hans Bushman, the other pilot, said “it was a bad night all right.” Ralph Reese, quartermaster, said four lifeboats were put over the of the Kvichak, the first about an hour after the ship struck because of the seas which were too _high to attempt earlier launching. Reese said he did not know until daylight that one of the lifeboats had capsized. Work was hampered | because only flashlights were used { as lights on the transport were out. Reese said the second lifeboat {reached a small island. Twenty- three were aboard this lifeboat. They walked around until picked up by first on the scene. The survivors were then taken to the Charleston when it arrived. Three Men Drown . Three men were drowned in the , .+ (Continued on Page Eight) American Can Company | agents in a small craft which was; in 1938 when the pack was 6,806,998 cases $36,636,897. But in 1940 the total pack and its value dropped still further. In the year just ended the pack was 5,028,378 cases, 234,775 cases fewer than the 1939 pack and with a value of $31,828,451—a diminution in value of $2,612,631. The decline in production in 1940 was in part due to the small red salmon catch in Bristol Bay which is anticipated every fifth year. There is, of course, no-indication of what next year’s pack will be, but the successive declines in value would indicate an important tendency in the Alaskan econo- my, namely, that gold and salmon are getting closer and closer together in economic importance. Other salmon products showed a corresponding decline. Also, the catch of herring for conversion into oil and meal was off about 59% owing to regulations limiting the taking of herring for, reduction purposes—a conservation measure; but herring taken for pickling showed an almost corres- ponding increase—b51.6% . The halibut catch limited by international agreement and valued at around $900,000 was about normal. Shell fish, clams, crabs and shrimp, however, all registered sub- stantial increases in both quantity and value. In furs—Alaska’s third largest industry—565,563 pelts shipped in 1940 totaled $1,958,533. This was $48,422 more than 1939 and represents the largest number of pelts shipped from the territory in nine years and the highest value shipped out, with one exception, in ten years. However, there are other factors of far reaching im- portance which indicate that the territory is entering a new era of progress and growth. The 1940 census in its final figures gives Alaska a total population of 72,624, an increase of 22.3%. This percentage of increase was exceeded in the last decade by only two states in the union—Florida and New Mexico. Alaska, in other words, showed a greater per- centage of growth than 46 states. But this is not the whole story. The Alaska census, alone among all the political units under the flag, was taken, not as were all the others on April 1, 1940, but six months earlier, on October 1, 1939. Let it be noted that our census date preceded the initiation of the intensive work on our several major Army and Navy bases, and that it was after October 1, 1939 that the new contingents of our military and naval forces, now amounting to over 5,000, including the advance guard of their depen- dents, came to Alaska, and that a further increase in popu- lation incidental to these developments took place. Were valued at: ALASKA EMPIRE “ALL THE NEWS ALL THE TIME” MEMBER ASSOCIATED PRESS PRICE TEN CENTS MESSAGE T0 LEGISLATURE | the census to be taken now, less than a year after the n'gu»' lar, ¢ensus-taking, it would record a larger percentage o_f increase than any state in the union—an increase of approxi- mately 30% in contrast to the 7.2% increase of the United | States as a whole. . However, confining ourselves to the actual figures of | the census, we may note that this is the highest figure in Alaska’s history. Moreover this -all-time high represents for the first time in Alaska’s history a natural, an evolu- tignary, growth. That faet becomes apparent when we study not merely the 1940 federal census figures and the figures of preceding censuses but the territory’s own vital statistics. The 1940 census figures show a territory-wide | growth. Every judicial division shows a substantial in- crease—the First Division 30.87, the Second 17.3%, the Third 1847, the Fourth 18.9%. Excepting only several communities unfavorably affected by the suspension of mining operations, the entire Territory has registered im- pressive increases. This has never happened before. The great jumv in population at the turn of the century registered in the 1900 census (with an increase from 52,052 in 1890 to 63,692 in 11900) which was maintained with a very slight increase in 1910, was due, as we all know, to unprecedented gold strikes. The influx of gold seekers was obviously destined to be temporary, and was so proved by a 14.5 decrease in population in 1920, only half of which was recovered by 1930. Moreover, during these changes of population, what gains there were, were spotty and irregular. Now for the| first time we can see the steady, long-pull continuing growth of Alaska in full swing. Interesting confirmatory data| secured from our Registrar of Vital Statistics show that Alakka's birth rate, both actual, and net-—the net being the " difference between births and deaths—is steadily increasing. For three successive years our birth rate both actual and net has achieved new highs. The births for 1938, 1939, and 1940 are, respectively, 1,930, 1,963, 2,118, It is important to emphasize again that all this in- crease took place before the advent of national defense. Now | there are many important aspects to the inclusion of Alaska in our national defense program, but I wish for the moment to stress some of the economic implications. The establish- | ment of large bases at Sitka, Kodiak, Anchorage, Fairbanks, at Dutch Harbor, and of supplementary establishments near Ketchikan, Yakutat, Nome and at other places as yet undesignated. the development of numerous air fields in i betviéen-—and all the many ‘other. by-products and-develop-| ments growing out of the defense activities—these signify | t i a new and tremendously important factor in securing the permanence and the future of the territory of Alaska. : It has been evident, to those who have given thonght i to that future, that the economy of Alaska, as hitherto con- ! stituted, has rested none too securely on just two industries, | |its two major industries-—gold mining and salmon fisheries. Invaluable and important—and indeed indispensable—to the { economic welfare of the territory as these are, it must bel is wholly secure whosé ecoromic | egps are, so to speak, in just two baskets. Should any pos- sible unforeseen train of events seriously impair either of these major industries, the consequences to the economy | of the territory, to the well-being of its citizens who direct- ! ly or indirectly secure their livelihood through these indus-| tries, would be serious. It has, consequently, been desirable to develop additional economic props, to diversify our in- dustries, to add as many different kinds of ‘industrial and mercantile pursuits and activities as possible. It would be the task of statesmanship, of territorial planning, to search | for these new fields of effort. My immediate predecessor, the esteemed and beloved John Troy, in both his 1935 and 1937 messages, urged that the Territory ought in every possible way to encourage tourist travel, pointing’ out that it was a constantly growing and profitable industry whichl could bring much more money into the territory, and citing! what other states were doing to develop this great new po- | tential asset. I will ndt digress at this moment to discuss the potential tourist industry in detail, although I strongly believe in its possibilities and might point out the interest-| ing analogy in our other Pacific territory, Hawaii, where| tourism developed in the last twenty years, is now a third | major industry, coming after sugar and pineapples. The point is, that a third economic prop (or an additional eco-| nomic prop) as it were, has come to the territory through | the defense program, furnishing new opportunities of the most varied kind. It affects Alaska differently, and in many respects mpre favorably than most of the States, since it creates activities that did not exist here before, means more population, more construction, more transportation, more commerce, more employment, and the increased use of | many products and services here. 1 need not belabor this | point except to state that the full implications of this pro-| gram have not yet been sensed and only the very begin-| nings thereof felt. | For it must be clear that concomitantly with the de-| fense program many other important improvements, for which we have been striving for some years, have come or are coming. They are coming partly in connection with the defense, partly because their time had naturally arrived, partly because the continued effort toward securing these desirable things for Alaska has finally begun to bear fruit.| They include the linking of Alaska by regular commercial | transportation with the rest of the United States and the| world. Along with it are coming tremendously improved communications within the territory. Three million dol- lars out of the $40,000,000 nation-wide CAA airport {program is about to be expended in Alaska. Great new {land airports have been begun or are about to be begun at Ketchikan, Juneau, Cordova, Anchorage, Kodiak, Fairbanks, Nome, Kotzebue. Emergency fields in hetween and modern aids to navigation—which our pioneering Alaska aviators| who blazed the sky trails did without—will annihilate time and space in this vast territory. New highways will be built, highways which, apart from their military value, will be indispensable to the economic development, prosperity and further growth of our territory. There will be further harbor improvements, additional aids to marine navigation, beneficial to our fishermen and our sea-borne commerce, and to all those directly and indirectly dependent upon it. It is of course true that our growth in population brings (Continued on Page Two) | {evident that no communit WARNING IS GIVEN U.§. BY ITALIANS Mussolini’s Mouth piece Says Help fo Britain Will Bring on War ROME, Jan. 20.—Premier Musso- linis so-called mouthpiece today bluntly declared the policy of the United States in aiding Great Britain is in violation of neutral- ity and likely to involve the Unit- ed States in war, The mouthpiece, Fascist Editor Gayda, warned that “legitimate re- action by the Rome-Berlin Axls might plunge the United States into conflict.” Gayda also said he could not believe the United States could continue to help Great Britain” without finding some unforeseen and quite unpleasant reaction at the end of the path.” UNION LEADERS IN'RUN AROUND, FISHERIES BUREAU Unable fo Get Conference on 1941 Regulations— Wallgren Gives Aid WASHINGTON, - Jan. 20. — A group of Washington State mm‘-# ermén’s “Dnlon of whio' con= tend they have been given the “run around” by the Bureau of Fish- eries have obtained the aid of Senator Mon C. Wallgren fo ar- range for a conference on the 1941 Alaska Fisheries regulations. Joe Jurich, President of the In- ternational Fishermen and Allled Workers Union, and Willlam Heck- er, Business Agent of the Alaska Fishermen's Union, Wallgren they were promised an opportunity to inspect the labor| sections of the proposed regula- tiong before they were made pub- lic. The two union officials told Sen- ator Wallgren they came here two weeks ago to study the regula- tions but have been unable to ob- tain a conference with the Bureau of Fisheries officlals. d Senator Wallgren has written to Secretary of Interior Harold L. Ickes urging the Union leaders and their = associates be permitted to see the regulations in advance of publication. The Union leaders alsn told Senator Wallgren they have been told their recommendations will be followed, promulgating the 1940 regulations, which drastically re- duced fishing in some sections of Alaska, but their recommendations have not heen accepted. Bill Offered ToHold Down Naval Strikes told Senator Outlaws Strikes. on Naval Projects Until 30 Days After Investigation ’ 20.—Legis- | WASHINGTON, Jan | lation was set up today with ma- chinery patterned after the Na- tional Mediation Act to curb strikes on naval projects of all kinds. | A House measure was introduced to create a Naval Defense Board to outlaw strikes on naval projects| until 30 days after the Board has| filed a report as to the merits of | the disputes involved, together with its recommendations and solution. The bill was offered by Chairman Vinson of the Naval Committee and was referred to his committee for consideration. It also prohibits naval defense contractors from making any change in rates of pay or working condi- tions of their employees until 30 days after the Board’s report been filed. . LEVY SOUGHT ON PROPERTY, NET INCOME Record Length Message Is Delivered Today Be- fore Legislature ABOLISH GOLD TAX EXEMPTION, IS PLEA Need for New Revenues Is Outlined - Armories, 'Buildifls_ _Asked : Three basic Territorial taxes—a personal net income tax, corporation net income tax and general prop- erty tax—were called for today by Gov. Ernest Gruening in a 15,000 word message delivered to the 15th Territorial Legislature in joint ses- slon in the House Chamber. The Governor spoke before an attentive Legislature and a gallery which was packed to capacity, with many standees. The message Was also broadcast. 4 Such taxes are required, the Gov- ernor declared, to ralse needed reve- nues and to keep an increasing pro- portion of Alaska's wealth in Alas- ka for development, progress and improvement. Alaska ' has enriched the nation, he said, but has done relatively little for itself. ' ‘Two Percent Income Tax The personal net income tax sug- gested 1s one of two t. with single persons, $2,000 for married and $400 for each child of dependent. The present $5 school tax should be credited against this new tax, the Governor recommended, 5o that all would pay $5, but those with small earnings would not have to pay A flat four percent levy is yecom- mended for the corporation net in- come tax. Present mercantile and professional license taxes would be abolished in consequence. v The general property tax, for which the Governor mentioned a suggested rate of 10 mills—or one cent on the dollar—would not be in addition to that already payed within incorporated cities, but would collect from those with property not now taxed. The Governor suggests that this property tax, in its appli- cation to operating properties, should be a credit against the gold tax and & the pack tax. Abolish Gold Exemption The Governor recommended abol- ishing exemptions on the gold tax, which he said should be considered and called a severance tax, for the mineral taxed is gone forever from Alaska. No change in the present’ three percent rate is recommended. This really amounts to about $1 on every $35 ounce of gold, the Governor said, ‘and it should be paid on every ounce extracted.” He estimated that in 1940 more than five million dollars worth of gold was taken from Alaska on which not one cent of tax was paid. Strengthening of the inheritance tax is also recommended for consid- eration. Regular departments of the Terri- torial government show Increased re« quirements of about, $600,000, he.said, while other appropriations should be made for National Guard armories, ' !acquisition by the Musemn of the Wickersham Libraty and at least six Sydney Laurence paintings, (for “man does not live by bread alone"), a University of Alaska building pro- gram, vocational education and an enlargement of the factlities of the Pioneers’ Home. Armories Asked Of his request that the Legislature | appropriate $600,000 for armories, the Governor says the Pederal Govern- ment, which is spending $25,000,000 in Alaska for national defense this vear, will not bufld them and it is “unthinkable that Alsska would not do its part—and do at least a part of what the other territories, H: wail and Puerto Rico, had d much earlier and on a larger scale.” The Governor also pointed to the need for additional space for Terri- torial offices here, saying that “be- fore long another building of almast the capacity of the phesent Federal and Territorial Buildings will be re- Quired” and that glready half again as much space is urgently needed. Of the University, he said this “un. (Continued on Page Eight)