THE KUSKO TIMES
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PRICK 25 CK^IX
V*>L XIU No. ft
TAK0TNA ALASKA. SATURDAY. *4AT 27 lH3a
. J. P. Morgan
On Stand
TELLS OF NOT PAYING INCOME
TAXES FOR YEARS OF 1931
AND 1932.
'WASHINGTON.—J. P. Morgan,
■•who yesterday took the stand in the
federal investigation of his banking
house, when he told of not paying in
hale taxes for the years ofi 1931 and
1932 and that his house has deposits
to the extent of a quarter of a billion
‘dollars, took the stand again today
.and also gave out hitherto unrevealed
transactions by his house, Among
Ahem loans to other bankers and part
nership ties.
. Among the revelations was the
outstanding one that these loans and
ties bind twenty men into a powerful
world financial unit.
-Keen interest is being taken in the
..statements by Morgan, as his trans
actions .have touched financial affairs
of concern through America, Europe
And 'practically all quarters of the
.globe.
Testifying before the investigation
(Committee, Morgan stated that he
had paid no income tax for 1931 and <
1932. This statement came after the
committee had decided to ask Morgan
A Co. to furnish .a {partnership agree
ment showing the division as to the
responsibility .for profits.
.Morgan .also dislclosed .a hitherto
unknown figure whan he said the firm
%as toted deposits of $250,000,000. j
Tom Mooney
Is Acquitted
BUT rJCASE IS NOT CLOSED, AS
OLD CONVICTION STANDS; j
BACK IN SAN QUENTIN.
SAN 2FRANCISCQ.—The 17^ear
battle for the freedom of Thomas
i.iooney, accused of guilt jn COnnec
lion with thht San Francisco pre
paredness day bombing of 1W16, end
ed today abruptly after a brief trial
when the jury, carrying out the in
sructions of Judge Ward, brought in
a verdict of acquittal after Mooney
had taken part in his own defense.
Mooney’s 83 ^year-old mother arose
from her seat in the room and kissed
him when .his handcuffs .were re
moved.
SAN FRANCISCO.—Thomas koo
ney, who was acquited in his trial
here this week of guilt in the pre- 1
paredness >dqy 'bombing, is not yet
free, as his first conviction still
stands and the defense put. in no evi
dence in the last trial. He now will j
renew his pardon application and at j
the same timd appeal to the Supreme
-Court of the •.United.States, -so the
moulder’s defense committee a
nounced. The announcement was
issued after Frank P. Wahfti, chief'
defense counsel, conferred with Moo- j
ney .at San 'Quentin -penitentiary,
'where the prisoner was rushed im
mediately after the rendering of the
verdict here -this-apeak.
By E. L. Bartlett
WASHINGTON. April J4.—Public
hearings on the .five-day, six-hour-day
bill wene scheduled to open this week
.and k k - the intention -of Delegate;
Dimond to appear before -the House
labor committee to urge that the
-bill 'be^-ameiHkd'So -as to exclude Alas
ka from its terms. If that is ndt
.{possible, he will endeavor to obtain
tan amendment slightly similar to the
one contained in the Senate bill, ex
empting certain specific industries
rand makes it possible for the Secre
tary Of Libor In ‘her discretion 'to;
-exempt others. -Wires and letters
asking the Delegat eto obtain relief |
in this matter continue to come from j
Alaska in great numbers. He is
^.keenly-alive to the emergency and is
doing everything possible . to save i
Alaska industries from the crushing I
blow -which this legislation would
deal them. His egorte have been!
handicapped, however, -since the Ad-!
ministration approved in .principle
this jmove to sperad employment. The
Delegifte is in sympathy with the
principle of the proposed legislation,
but is firmly of the opinion, that it is
not properly applicable to a ..new
country such as Alaska.
An Alaskan visiting Annapolis will
.’find a sizable gropp from the home
land in the quaint little ;Maryhuld
city. There is James .Climie, son of (
.Mr .and.Mrs. James Climie of An- i
xchocpge, who is ^progressing well in ,
his studies at the United States
Naval Academy. Also there is James
MoGauley.-hew nhk -first year -at -his i
first year at the Academy. A third 1
Alaskan at the historic institution is 1
Henry Miller, son of Mr. and Mrs. 1
t. Prank Miller .of Fqii&ipks. He ,ia *
second classman and will graduate j
next year. Lieutenant -WBKamt-’Bolan, \
who left Valdez in t917 and whose j
parents continue to reside them, is*
talcing post-graduate work at Annap
olis. He is marrier akpd.has two ehil- j
dren. Also living there' are Lieut- j
tenant and Mrs. Thomas H. Tonseth
and their young son Tan*, Lieut, i
Tonseth, formerly of Fairbanks, is in |
the posl-graduate school. In June he
will be transferred to Washington,
for a year’s tour of duty hr the Ba-f
reau of Navigation.
. A hill has been introduced In the
House by Representative MoCormack j
which would authorize the Recon- I
struction Finance Corporation ;to
make loans to aid the fishing indus
try. The bill would amend Section 5
of the R. ?F. <L Act by -adding, <*t he.
following paragraph after the first
paragraph of the section: ' 1
“The corporation is aufhorize4:jand
empowered to make loans under this :
section, as amended, t any association 1
o* corporation organized spade*; the
laws of any State, the District of Co
lumbia, Alaska, t Hawaii,;at, i’y^rto
ftico, for the purpose ai&gjMggiiig in.-:
the business of fishing, of dshipg aad 1
ish packing, to hid in floating f uoh '
business, upon the same*, -terms and *
:onditonw and subject |g4,tiu^. same ‘
imitation* as are apjffjgable in. the '
:ase of * loans made undpjvthe first 1
paragraph of the ssec^ioj^ ^ amend- 1
sd”
-- i
It is reported upon gqpd. authority, 1
ilthough not ofttciallfy^fyl^ tbe Alas
:a Railroad will be transferred from <
he Department of the lafjariort? the i
Department of Commerce jn. the 9ro~ 1
■ vJCCBfM—i «a ?a*» ».) 1
Pull Text Alaska
Beer-Wine Airiti
JUNEAU.—ilfdlkwing is tht full
;ext iof tObupter 71, approved May 2
>y -the Alaska LegwJaturg, regc^drog
he sale of beer -and '.wine: J
An Act to jegiitate fcbt sale of beer
■md mine; to jprovrfle for the payment
if a license fee by those engaging in j
;he manufacture, tbottli$g.BT*ri -"sale 'of
■>eer amd ’mine; to jpraoikle .tor the is
suance land revocation of licenses, and
;o prov ide rpenraltiejp.for .the violation
>f its provisions; and for other pur
poses, and declaring an emergency..
Sb 'M .enacted by the Legislature of
;he T^nritory of..Alaska:
Sect ion 1. That it shall-tie unlaw
ful for any peraor>, .•firm wr corpora-!
don to manufacture, bottle or sell j
>eer or wine t»ithin ithe (Territory of j
Maska without hast shaving obtained
i license ;to do.wu. .Licenses shrill he
ssued mrijy.for permanent established
places in suitable Uoations.^nd to
persons of good moral character who
ire citizens of the Onih^J.JStates and !
.vho are qualified efactops'of the Ter
ritory Of Alaska.
Sec. 2. A beer rand win^., license
may he obtained.hjj,arperspg. qualified
under ihe provisions of this Act upon
the payment •tiff a 1 license f$e of AM
par aim am.
A Sheer rjawH me '.license wiil .give
the holder thereof the right and ..priv
ilege of ''Selling ‘beer and -wine on a
common, courier in iftie .Territory of
Alaska, ror in • a hotel, or lodging
houses.vjsqth .pCtJeps 'thanjl^oms or
in hoarding houses ,restaurants dr
cafeterias 'with accommodations for
tfhaij JS persons .and in^jrpad
boueea. .Such beer or wine shall be
jsnsufwed ic th,p^.^rooms yf. bona .fide
^ueflb^.mnd patrons,or w^th .n^eak fur
nished in goocl thj^gqests
and patrons.
Sec, -3. ^A h^efa*'? d^spe^sary (li
cense may ,be obtained upon.'p^vnient
of the hcenm- fee jpf
A beverage dispensary license will
feive the holder thqrec^, the frighl. to
sell ap4 %p«i;ve agjl,beer in
uncapped, buttles to patrons for im
mediate consumption while seated in
the dif}J%IP8ary.
Sec. 4. A retail. license* may be ob
tained ppon payment of .a 'license fee
of $25 per annum.
A retail,,license'wfll.give the holder
thereof the, right and privilege to sell
in hig establishment beer ;and wine
opgtaine^ ip th eorjginal packages,
but it. k not to be consumed on the
premises. where sold.
Sejp, 5. A cldb license onay be ob
tained upon a payment of a license
426 Fr *hnum.
A club, license will give clubs, fra
ternal organisations and patriotic or
ganizations, that have a Territorial
>r National charter and which have
lean so incorporated for a period of.
■Wo yeanq the ^ight Hp<f.: privilege <nf
telling beer and wine to the members
tpd their , guests in their dub rooms.
. Sec. 6. A wholesale license may be
>btained upon .payment of a license
ee -of $100 -per ;annum.
A wholesale 'license will give the
loUer thereof the right and privilege
o sell beer and wine contained in the
iriginal packages to retail stores or
>ther places licensed under this Act,
nit not dlmct)y to the consumer or
jenecal jwblic.
Sec. 2. A bottling works license
npy be obtained upon .payment of -a
icensp fee of $100 per annum.
A bottling works .license will give
fie, holder thereof the right and priv
lege of operating, ^ bottling works
fhe^ beer and wine may be bottled
. (Continued aa P|jp.A)
.... . || «■'■■■■■
Hems of Importance
I21 Itecent New® Events
WASHINGTON,—The Senate in
vestigation . into the methods of Wall. j
Street operators and international
banking processes in he quest for in-j i
come tax evaders •continues of m#jor;'
interest, developing a number of, <
Sensational, phases.
Further evidence of the bestowalj'
by Morgan^ Go. of millions of papers!
profits on favored customers is being ]
sought by thq Senate investigators to i
be spread on the records .while J. P. 1
Morgan watches the names of men ]
high in public and .private -life
brought .forth who were stated to 4
have been made beneficiaries of the 1
great 1 firm’s ..bounty through sales to '
them below the price paid by the pub- 1
lie en the Allegbapy corporation is- 1
sue of 1329. Among the names were I
those of the Secretary of the Treas- “
ury W..H. Woodih; W. G. McAdoo, ,
former Secretary of the Treasury;!
'Nawton S>. Baker; " Justice Owen J. (
Roberts, .Supreme Court Justice; CoLi.(
Charles A. Lindbergh; General J. J. ^
Pershing; John J. ffcaskob. Many' .
other prominent names were also
mentioned. ,
Woodin had no comment to make .
to ipakp on the developments but ’
Senator .Borah said that the people1 '
are entitled to a -Secretary of the (
Treasury who, like Caesar’s wife, ^
should be above suspicion.
Morgan admitted he paid no taxes .
$ere, but that he had paid taxes in ,
England ip. 1931 and 1932, where cap- J
ital loss deductions-were .allowed, j
Discussing the “favored customer” (
list, Georgea Whitney, Morgan’s part- (
ner, said, the . company -wanted no ,,
profit on the issue and the men were
the company’s friends.
WASHINGTON. — Former IWh'
Lelent Calvin Geolidge was pevealed in
the Senate investigations to lye
.among the privileged purchasers <Jf
“standard brandy stock, through the
Arm of Morgan Co. He/was -shoWh
to ihave purchased 8.0<K). shares of
such stock after he left* the presi
dency. Others. inriudeid . William 'HI
JVoodin, Norman Davis^ and John
Davis, Morgan counsel; General Per
shing and imaqy others.
Morgan iexplained that he,paid an
English income tax but paid none in
the United States bgpause qf thedif
■ference of the laws in the two coun
tries. ’ *
Senator .Robinson, of Indiana,
ferring to the revelations, asked if
Norman Davis was representing, the
house of Morgan in^u^opd.
WASHINGTON.—Legalized beer
added $9,13$,88.71 to the government’s
revenues .for April, awhile nearly
every other important form of ta^a- ,
tion showed decreases fnjfi the pre
vious .month.
The tax was collected at |5 a bar
rel plus fee of retail and wholesale
dealers and income taxes for the per
iod of -23 days only. At ,t|)f .same
rate for a year .the total ., would
amount to #13&,i<W0,Q0fy.which would
be considerably under advance esti
mates.
y
«
WASHINGTON—The Senate pass
ed the' Glass banking bill yesterday,
providing for a general revision of
the banking laws 4to safeguard . the
public, and carries provisions Tor
both emergency and permanent in
surance of deposits, and calls for the
severance of banking and investment
businesses.
*
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Jv'EIV ;.YjORK.-~Jiuitang~l>rd]*e out
it tix' ocean pier 'here today in con*
lection y*-ith the .arrival- of Hitler’*
e preventative at the forthcoming
World's cEair and Expos iiii in at i'hi
ngo.
'A thou.H*nii anti-Ilkleries, man and
romen, became enraged -.when the
jcnnan. leader’s representative and
tarty were transferred from the liner
<> a tuK- and brought tto.the Battery
andinir, at the ]o«*er-~and of Man
ia*, two
The police had to level thair ,guna
tn the crowd before they could be
Itiieted domi. Several were arrested,
rhe crowd displayed, .banners con
temning. the "Nazi jrt^ime of .murder
ind ternorwoB” in connection with the
r^ea^nent ftf-lews..
.WASHRWTajfN^-A'-gfull (Hedged
trivet by (he A’thrunistraction is under
eay to speed prohibition repeal, with
he hope <ii dlkninatjbu’ new “tane*
'or-ipufcffic fworkerp&gposfs by tderiv
hg revenues' /rnm riquor sales. With
Slaw 'fY«Hc .mid, other wbtes combined
is a -spur to -action by t^je^Jioosevelt
’orces, - Farley ds£na<|e dpe^pearhetod
'or the repeal ' cangypaigh,' and it is
innouuced he’, wilt-lank,.every uDemo
tr^ticworker rtf.'the last campaign to
■orry mf, % ropeaf
New York, by 12 toiTl, ,expressed
tself for repeal qf the Eighteenth
imendanesip'wtiiph means the "repeal
;onventi«u^mv JL«|pe 27 .will be .a Jmerc
'ormaliby, adding file -Empire State
;o live ( others which .already have
’onunitted themselves to the repeal
. ... 4. 1"
ureponal.
NE5^ YOR^-jiBusiness m*n and
rage earners. .today looked buck upon
i week whieti .saw the beginning -of
vhat is hopedwill prove the turn, ir
he tide toward prosperity.
Better times .and additional -an
lounceraents of^ wu^je increases by
nanufactunng. establishments tender
o indicate, says tne Dun & Brad
itreet report, a change of conditions
iney declare the up-awing in busi
less da continuing.
'WASHINGTON—Secretary ol Ag
•iculture Henry Wallace, Jr., anc
lenry Morgenthau. Hie ..latter tht
•ovexnor designate fox the farn
redit administration, assumed theii
oles jit pie "nation’* most anibitiou?
nrogcacn \o return the farming class
o profitable bueinese without wait
0* lor the President to sign the farm
treasure. They plunged into file task
yesterday of gearing the machinery
or at least two 'years’ operation.
The President’s •industrial control
nd public works program, designer
o ojtep up vast fields of employment
tin be presented to his cabinet foi
ppreval before-going fen *Comgre«
ext week.
SAN FRANCISCO.—At least 60,
00 speakeasies have been driven out
f business by the new beer Jaws, it
be pprmion Si Major A. V. Dalrym
le, national prohibitien director
1 any thousands/mere will he donee
then better hee^ is manufactured, hi
WASHINGTON,—The IHouse ap
roved and sent to the President the
ill to -suspend -annual assessment
ork on raining claims In Alaska
he bill relieves holders of mining