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THE DAILY ALASKA EMPIRE
“ALL THE NEWS ALL THE TIME VOL. XXIX., NO. 4346. JUNEAU, ALASKA, WEDNESDAY, DECEMBER 8, 1926. MEMBER OF ASSOCIATED PRESS PRICE TEN CENTS PRESIDENT ASKS FOR FOUR BILLIONS _1;_ General Improvement Noted in Alaska in Parks* Report Governor George A. Parks, in his second annual report to the Sec retary of the Interior just made public, says reports received from nearly all sections of the Territory indicate an improvement in all con ditions that affected the welfare of Alaska during the fiscal year end ing June 30, 192(5. There were no serious epidemics, and health con ditions generally throughout the Territory are better than they were last year. He was pleased to note that commerce, both domestic and foreign had increased about 2,3 per cent over 1925 and that the exports increased in greater proportion, than the imports. The year closed with a balance of trade in favor of the Territory amounting to $29, 024,221. The Governor said that while making official visits to Southeast ern Alaska, the districts adjoining the Alaska Railroad and Richard son Highway, the Yukon River Val ley below Tatiana and the Seward Peninsula, lie found there was un mistakable indications of an im provement in economic conditions in nearly every district mentioned with one notable exception, tile lower Yukon River Valley. He said ■'the depression In that district and ill a lesser degree in the lower Kus kokwim region, may lie attributed to the closing of the fisheries. For many years the residents in those districts derived a substantial reve- j nue from the salmon fisheries and, as In some other regions, unre stricted fishing depleted tile supply to the point of extinction, lienee it was necessary to close the areas to commercial fishing in an effort to perpetuate the species. Tile closed season lias been enforced for several years, thus depriving the residents of one of their chief sources of revenue. The results are inevitable, tlie population is decreasing, regu lar steamboat transportation below Holy Cross has been replaced by Biuull gasoline launches operating on a bimonthly schedule, many of tlie traders are reducing their stocks of goods or closing out their busi ness, in fact the entire lower Yu kon district is less prosperous than it has been for years.” King Salmon Fishing The Governor suggested that a possible relief for the situation might be the opening, to a limited extent, of the fishing for king sal mon. He said that the fishing in dustry continued to maintain its place as the leading revenue pro ducer in the Territory al'hough the value of the products was somewhat less than in 1925. The total in vestment in the fisheries Is about $4,500,000 greater than last year, and the exceptional feature was the iucrease In the growth of the her ring industry in which the capital investment and value of lho pro ducts increased more than 50 per cent over the previous high record or 1924. Fisheries Investments The total active investment in the fisheries of the Territory in 1925 is estimated to he $67,077,495 and of this sum about 80 per cent is credited to the salmon fisheries. More than 50 per tent of the total investment or $33,695,736 is in Southeastern Alaska, while South western Alasku with $16,728,700 and Central Alaska with $16,653, 059 follow in the order named. The to'al value of the fisheries products, exclusive of aquatic furs, is esti mated to be $40,038,745 or ap proximately $250,000 less than in the preceding year. There were 27,685 persons employed in the fish eries, an increase of 2,491 over 1921. Of tluse 15,996 wore whites, 4,607 natives, 1,278 Chinese, 1,548 Japanese. 2,246 Filipinos, 1,510 Mexicans, 250 negroes. 150 Porto Ilicans, and 95 of other races. Fisheries Protection The policy of continuing the pro tection and perpetuation of the fisheries by the Secretary of Com merce, lias resulted in some changes in the regulations in closing addi tional areas, shortening the periods of fishing in other areas, and plac ing limitations on fishing gear. The efforts of Federal and Territorial officials were directed to solving the . problems involved in the utilization of the waRte porilucts from the sal mon canneries and the prevention of the extravagant consumption of Uening In the fertilizer plants. Seal Herd Increases Thu census of the seal herd, taken 1. Investigation of salmon fisheries on the Yukon and Kuskokwiin Itivers to determine whether or not commercial fish ing may lie permitted without jeopardizing the future supply. 2. Enactment of a law authorizing the Secretary of the Interior to lease the public domain for grazing puropose. IS. Repeal of tax provisions of the Alaska (lame haw Insofar as they affect the residents of the Territory. ■I. Provision should be made fur a Uovernment Hospital for tlie Insane of Alaska. 5. Detention home for incorrigible natives in the Ter ritory. (!. Industrial school, hospital and isolation ward for tuber cular natives, at Tatiana. 7. Wireless station at Kotlik for the season of navigation and transfer of station to Cnalakleet during the winter months. S. Repeal of law restricting the number of placer claims that may be located by individuals. it. Feed rul constabulary combining all law enforcement agencies. It). Continuation of aerial mapping until tlie forested coastal regions of (lie Territory have been photographed. in August 1925, places the number of seals of all ages at 723.050, an increase of 25.892 over 1924. It is of interest to compare this with the census of 1914 when it was esti mated that here were 29 1.687 seals on the islands. This shows that the herd lias multiplied 2 *,« times in 10 years, excluding the seals that have been killed for their hides, and is conclusive evidence that the policy adopted by the Bureau of Fisheries is justified and the seal herd will be a source of large reve nue in the future. The gross value of the skins sold during the fiscal year was $787,384.50. This Is a substantial gain over 1924. Alaska should have at least 50 per cent of the net revenue from the sale of seal and fox skins taken from the Pribilof Islands for the support of common schools. Mineral Production The value of tue minerals pro duced in Alaska in 1925 is esti mated to be $18,220,692, exceed ing that of the previous year by a little more than three quarters of a million dollars, and bringing the total production of the Territory since 1880 up to $553,304,968. The value of the copper produced in 1925 was consideraly greater than in 1924. There was a moderate increase in the value of gold, silver tin and lead and a decrease in coal and platinum from placers. Cold Water Thawing' In the vicinity of Nome experi ments in the use of cold water for thawing frozen gravels were suc cessful' and as a result large areas of low grade gravels may be dredged. Extensive mining opera tions in the Fairbanks district have stimulated prospecting for both lode and placer deposits. Development work has been undertaken on a number of small quartz mines ad jacent to Fairbanks and plans are under way for the installation of several new dredges in the Tanana Valley region. .This development in the Interior of Alaska Is the re sult of the completion of the Al aska Railroad because without ade quate transportation at reasonable rates it would not be possible to mine. Most of the gold mined from lodes in Alaska is produced in the Southeastern part of the Territory. The Juneau district leads, followed by Chichagof Island and Hyder. The total tonnage of coal mined was considerably less than In 1924 and correspondingly the tonnage of imported coal increased. The Al aska coal mines are capable of pro ducing sufficient coal for domestic demands but the operators have not | solved the transportation problem and are not able to compete with ! imported coal outside of the railroad i zone. Petroleum Production ; Petroleum production was confln ! ed to the Katalla field as in former |years. The exploration in the Cold Bay district were abandoned and the tools and machinery were re moved. In the Yakataga field drill ing began early in June but the work has not proceeded far enough to enable the operators to determine whether or not the field contains 011 in commercial quantities. Pulp Possibilities For many years it has been known that the extensive coastal forests offer excellent opportunities for the development of pulp and paper industries hut until last year the Government had not made any serious effort to bring these re sources to the attention of the paper manufacturers. The forests are cap able of supplying 1,300,00b tons of paper pulp annually in perpetuity and the undeveloped water power for its manufacture is available but the money necessary for develop ment was not forthcoming. An in vestigation developed two reasons why these resources were not util ized. In the first place the contract offered by the Government was un satisfactory and secondly the largo manufacturers were not aware of the extent of the resources. The Secretary of Agriculture revised the contruct so that it is acceptable and ] the Government engineers prepared j exhaustive reports on the lumber | supply and water power sites, these' were presented to the leading paper manufacturers throughout the conn-1 try and their representatives have been in the Territory all summer conducting investigations. The pros pects for early development are ex cellent. Ill 1926 57,500,000 rt. H. M. of timber were cut from the National Forests. This is less than 6 per cent of the possible annual output. Much of the standing timber is! over mature and is deteriorating. Alaska Railroad The report of the General Man ager of Tile Alaska Railroad shows the results of efficient management. The gross revenues increased ap proximately 25 per cent over 1925 and the cost of operation of all departments was materially reduced 'The total cost of operation of the rail lino and river boats was 11.2 j tier cent less than it was in 1925, jand the total deficit for all expendi tures Including the charges to capl j tal account was decreased 18.3 per cent less than last year. Sixty-five thousand, thirty-six tons of com mercial freight were transported, an increase of 20.8 per cent; 57,567 revenue passengers, an increase of 19.2 per cent over last year were | carried in 1926. The increase in jtrafTic is significant not only be ; cause It is an increase over the j traffic of 1925, hut more partlcu I larly because it indicates a general I development of the territory tribu j tary to the railroad. Train service I was improved by adding motor cars to the equipment and operating them Instead of heavy trains when the traffic is light. The boat serv ice between Tanana and Holy Cross was maintained on the same sched ule as last year and the revenue increased 14.7 per cent despite the (get that the mail contract was re duced 60 per cent. The cost of the river service can be materially re duced by the purchase of a boat equipped with deisel engines to re > place the antiquated river boats now | in service. The cost for operation jand maintenance of way on the rail (lines cannot be reduced to the mini mum until the railroad is completed according (o the plans outlined some two years ago and this cannot be done unless the annual appropria tions are increased. The construction of roads and (Continued on Pace Five.) ■-V-«' T i i Charges Horses | Are Killed hy j Sivarm of Bees I i | WINNIPEG. Manitoha. Dm-. | 8. — A swarm of bees killed two burses valued at $200. Two | | farmers of this section make | j tliis charge against Fred i'biv- j ers, Winnipeg owner of bees. | t > m-—Sty—-■ TERRIFIC WIND STORM SWEEPS; WESTERN ALASKA Personnel of Ijquaw Harbor i Cannery Missing—Vil lages Hit by Gale. CORDOVA, Alaska, Dec. 8.— A tempest has swept the Ber ing Sea and Aleutian Islands according to radio reports re ceived here. None of the personnel of the Pacific American Fisheries can nery at Squaw Harbor has been seen since the storm started yesterday. St. Paul island reported the wind the highest in years. Judge Druffield has informed the naval tadio here that the wind wrecked the cannery and wharf at Unga. Spray flew over all villages and the wind has blown direct ly into all harbors. The wharf of the Alaska Commercial Company at Dutch Harbor is flsoded. PRINCE CAROL NOW STARTING THRONE APPEAL King of Rumania Is Operated Upon—Revolt Starts in Case of Death. BULLETIN — BUCHAREST, Dec. 8. — King Ferdinand underwent a second operation today, PARIS, Dec. 8. It wn? reported here last night that King Ferdi nand, of Rumania, was lo undergo an intestinal operation today and that if he should die, the follow ers of former Crown Prince Carol plan a move to place him on the throne which will be followed by the establishment of a Fascist Gov ernment. Another plan is to hand over the Grown to an unnamed Uritlsh Prince ijfter a period of Regency rule as at present. It is reported the Army is ready to declare in favor of Carol. Queen Marie, of Julo-Slavla pleads with her mother for reconciliation with Carol but opposed his ascend-] ing the throne. It Is possible the Jugo-Slavla troops will aid Marie against Carol. ONLY 14 More Shopping Days Before Christmas ■---■ SEN. M'KINLEY PASSES AWAY; LONG ILLNESS Senator from Illinois Dies in Sanitarium-—20 Years in Congress. I ! 1 US:SENATOR VB.MjWNUeV) MARTINSVILLE, Iud., Dec. 8.— United States Senator William U. McKinley, of Illinois, long ill. died late yesterday afternoon al the Home Lawn Sanitarium, lie was brought here last August suffering from pros tatic cancer. Sen. McKinley was TO years of age. William R. McKinley, whose span i of more than twenty years in Con gress. the latter portion as United Slates Senator from Illinois, covered the insurgency among national legis lators. the Roosevelt bolt, of 1912. and the primary scandal of 192(1, was! a business man and phllantroplst. By | his own avowal, he "blundered Into politics" because his business was I running so smoothly that ho had no thing else to do. “I really blundered Into politics,” the Senator once said ‘‘1 was getting unnecessary in my business. Tilings went on without me. So when it was suggested to me that I run for) congress, I accepted just for some-j tiling to do. I never regretted it.” j McKinley’s ’’blunder" lasted from the time tile Republicans of Cham paign, (11., and the nineteenth dis-j Iriet sent him to the lower house of Congress in 1905 until he was de-j feateil for the party nominal ion by | Frank L. Smith, of Dwight, III., in] the 1920 primary as McKinley was j finishing his six year term in the Senate. Campaign Investigated It was I lie huge expenditures in Hint Iasi campaign that brought a Senate investigating committee to| Chicago after the Pennsylvania prim- i ary expense scandal had aroused ; national attention. The Chicago | hearing developed that while Senator I McKinley hail spent about $1150,000,! it was virtually all his own money. Managers of his sueenssful oppou enl. Colonel Smith, who was chair man of the Illinois bommeree com mission, accounted for approximately $300,000, much of it contributed !>y' executives of public utilities. t»n in dustrial field In which Senator Mc Kinley had made a fortune and been interested for years. His defeat was immediately fol lowed by Smith's decline in health and serious illness of sciatic rheuma tism. Aside from his political career. Senator McKinley was best known for his contributions to educational and religious institutions. His phil anthropies, were unattended by pub licity, but. his friends estimated In 1925 that hiH gifts to education had passed the million dollar mark. Cardinal Principle Party regularity was u cardinal | principle with McKinley. He was a I friend and neighbor of “Uncle Joe” 'cannon, of Danville, who represented the eighteenth congressional district, adjoining McKinley's old district, the nineteenth, in the days when Cannon was known as the “czar” of the house of representatives and insur gency arose among legislators be cause of party discipline. McKinley and an uncle were in the hanking business in Champaign and branched into the public utilities In dustry. acquiring traction, electric light, gas and other interests which eventually were known as the Mc Kinley Syndicate. Their chief prop erties were the Illinois Traction Sys tem which built the McKinley bridge (Continued on rage Twn.l Open Auto Door; Oust of II inti; II oman Is DentI TACOMA. Wash., Dec. S. Mrs. (iahart Wolfringer, aged 12 years, wife of an Ashford garage owner, reached out to close I lie door of her sedan, which the wind had swung open. Auother gust of wind forced the door further open and threw her out to the pavement. She died from her injuries. DENBY APPEARS AS WITNESS IN OIL LEASE CASE Former Secretary Testifies at Trial—Doheny May Also Testify. WASHINGTON, Dec. S. Former j Secretary of Navy Denhy was called j today as a defense witness in the I trial of K. I.. Doheny, oil magnate, and former Secretary of Interior A 13. Fall. It was also disclosed that Doheny will probably take the stand during the trial. John McCormack, noted tenor, is listed as a character witness. Former Secretary Denhy testified that shortly after he entered Presi dent Harding's cabinet, he heard re-| ports of private tat crests draining the Navy oil lands from the wells near the edge. He said he did not know who gave the advice and sought cooperation of Fall and urged President Harding to transfer the reserves to the Interior Department. Denhy said Fall assisted in the or der. Dr. George Davidson, rector of St. John’s Episcopal Church, of Los An gules, testified that Doheny was a “man tf ideals, integrity and with a! high character.” Former Secretary Denhy said that Admiral Robison represented him In all Pearl Harbor negotiations. Under cross examination, Denhy said, concerning tin* leasing negotia tions: "I do not remember exactly, lull the matter was In the hands < f i agents whom I trusted." Denhy explained this when pressed, to tell, why he approved something he did not understand. A. W. Ambrose, formerly of the ullreau of Mines, testified, that with the approval of his superior, he took a trip on Doheny’s yacht. The gov ernment gave him a dully allowance but lie paid no fare. OLDTIMERS AT GAME HEARING NEW YORK, Dec. 8. Oldtime rs of America’s frontier days yester day sat in the plush chairs in the lobby of the Hotel Pennsylvania as! delegates to the thirteenth annual! conference of the American (lame I Protective Association and listened | to experts tell how to save ducks I Among the oldtimers were Ezra! Meeker, survivor of the Oregon trail j days; Sandy Smith, of Point Mar row, Alaska, and Dr. K. W. Nelson, of the lliologieal Survey. Dr. Nelson said western irrlga-j lion was drying up the lakes and' depleting the game supply. He declared Federal investigation of control was imperative. AIR MAILMAN BEING SOUGHT Contractor Rushing East on New Propostion—May Lose One He Has. SEATTLE. Dec. 8. — Vern C. Horst, of Portland, President of the Pacific Air Transport Com pany operating a mail line between Los Angeles and Seattle, is speed ing to Washington, D. C . to sub mit to Hie Post Office Department a bid for the purchase of the New York-Chlfpgo-San Franclscto mail lines. Meanwhile. W. Crving (Hover, Second Assifsant Postmaster Gen eral. is in Seattle hunting (iorst to Inform him the Government is considering cancellation of his coast contract because he opposes the Government’s proposal to establish a Hat rate of in cents an ounce on long lllglit mail. \ COOLIDGE PUTS ANNUAL BUDGET UP TO CONGRESS Increase of Sixteen Million Dollars Over Present Year Is Wanted. PRESIDENT TALKS ON DEFENSE OF NATION States Reasons for Properly Defending Ourselves— Many Cuts Are Made. WASHINGTON, Dec. 8.— President Calvin Coolidge in his Budget address today before the United States Congress asked fer $4,014,571,124 in appro priations, which is an increase over the present fiscal year of $16,543,728. The largest increase is for the Department of the Interior, $3,275,528 for higher pension payments, making a total of $28,571,75!). The largest decrease is $30, 000.000, interest on the public debt. The next cut is in the Navy Department of $9,246,475. The appropriation, however, in cludes the five-year aviation programs of the Army and Navy Departments. President Coolidge asked Con gress to postpone construction of the remaining three of eight light cruisers which construc tion was to have been started before July as the United States is now engaging in negotiations “to broaden our existing trea ties with the great Powers which deal with the elimina tion of competition in naval araments.” Speaking on the War De partment appropriations, the President said "this is a very considerable amount to spend for protection in time of peace. Our intent and attitude is one of peace and friendly regard toward all nations and peoples. This is not sufficient to war rant neglect of defense and de fault on necessary precautions.” Thirtv million dollars are provided in the Budget esti mates for Prohibition Enforce ment, RUM PLOT IS NOW EXPOSED Special Agent U. S. Intelli gence Bureau Asked to Be Bootlegger. VANCOUVER, I) C., Dec. 8.— Michael E. Malone, special agent of the Intelligence Bureau of the United States Treasury, told the Dominion Commission investigating rum running, that he was invited to become a partner in the purchase of 21,000 cases of liquor on the steamer Chris Moeller, now held at Victoria. He swore the cargo was to he landed at Monterey, Califor nia, although clearance was to he made to Mexico. Malone testified he attended a meeting of bootleggers In f.os An geles and discussed disposition r.f the cargo. It. Swanson, Acting Manager of the Con oiidated Exporters, told the Commission his concern w:n en gaged in selling liqour for consump tion in the United States. He sa'd his organization consisted of 19 liquor exporter houses capitallz d at *1,200.000. Tax Reduction Bill of Democrats Introduced WASHINGTON, Dec. 8. — Repre sentative John N. Garner, of Texas, today introduced the Democratic tax reduction hill. | Chairman Butler of the House Naval Committee, at the first meet ing of the committee, expressed ap prehension lest the Navy is falling to far behind other nations in the I construction of light cruisers. The tax reduction bill includea^^e la reduction in corporation taxes wr I half percent to 11 per cent.