^eurard
MEMBER ASSOCIATED R»*£SS
VOLUME XXIX. NUMBER 66.
SEWARD, ALASKA, TUESDAY. MARCH 21, 1933.
PRICE TEN CENTS
CALIFORNIA MONEY
TO DEVELOP FILLS
CONSIDERABLE INTEREST IS
AROUSED; GREAT IMPOR
TANCE RAIL BELT
A mining transaction of unusual
importance to Seward, and an en
couraging stimulus to the industry
of the Kenai Peninsula, was con
sumated today when Virgil Kut
nar, pioneer mining man oi Alas
ka and the States representing
California capital, was given an
option to purchase outright Dis
covery claims. Numbers 1,2, 3, and
4 on Falls Creek which constitute
one of the most valuable group of
gold quartz properties in this
district.
The claims are contiguous and
comprise one block adjoining Mel
Horner’s valuable holdings on the j
south slope of Skeen mountain
near the headwaters of Falls Creek
at Mile 26 on the southern divis
ion of the Alaska Railroad.
HIGH COMMERCIAL VALUE
The acquired mine is just above
timber line at the head of the can
yon about four and one-half miles
by wagon road from the mouth
of the creek.
The mine workings are on the
north bank of the creek, the tun
nel mouth on Discovery claim
number 1 being a few feet aoove
the creek level where the outcrop
ping of the vein occurs.
The ore body now under devel
opment at the property is free
milling gold quartz of high com
mercial value. The gold impreg
nated seams in the quartz body
assays many hundreds of dollars
per ton.
METALLURGICAL ANALYSIS
The vein material ranges from
4 to 5 feet, in width. It is said to
be a “contact” lead extending irom
the surface to unknown depths be
tween slate and graywacke. The
vein occupies a vertical fissure
that strikes North 52 degrees East.
Near the face of the tunnel the
strike swings farther East and the
dip changes to 75 degrees South
east.
The ore is massive and clear
white in most parts of the main
vein, although a fine-grained,
dense, bluish quartz running par
allel to the ore body is attached
to the vein. The marked bluish
color of the quartz is due to the
presence of finely disseminated
sulphides.
Calcite also occurs as gangue
Free gold is found in the blue
quartz in close association witn
the fine sulphides, and in intimate
association with the sulphide
groups in the white quartz.
Arsenopyrite is the principal
sulphide, galena, sphalerite, and
pyrite being subordinated.
'Numerous striated crystals of ar
senopyrite are imbedded in the
wall rocks next to the main vein.
The country rock consists of
closley folded slate and graywacke
striking a little east of north and
dipping 75 degrees east to 90 de
grees. A 12-foot bed of graywacke
striking north 7 degrees and dip
ping 75 degrees east, outcrops near
the tunnel. This bed carries a con
siderable quantity of iron sulphides
and weathers rusty.
ONE OF FINEST ZONES
A detailed study of the geology
and ore deposits of this gold
bearing area indicates that the
newly acquired property is situat
ed in the very heart of one of the
finest mineralized zones in the
Kenai Peninsula.
The most important characteris
tic feature of Falls Creek ore
shoots and gold lodes of the adja
cent Grant lake area is the oc
currence of the gold in combina
tion with distinctively primary
minerals.
Exploration of the known ore
deposits of the district cleariy in
dicates that the quartz veins are
deeply seate-d below the present
workings with an adequate distri
bution of values. This is particu
larly apparent in the structural
feature of the lode property ac
quired by Mr. Kutnar for his
California associates. The vein ap
pears to be distinctly a primary
lode.
MAIN LODE SYSTEM
Evidence that this zone is the
“main lode system” is no surprise
to those familiar with Falls Creek
discoveries. This is substantiated
not only by the high quality of the
ore unrecovered in Kutnar’s mine
(Please turn to page 3.)
RAIDED EINSTEIN HOME
BERLIN, March 21, —Announc
ing they suspected large secret
stores of arms, police and Nazi
storm troops raided the country
home of Professor Einstein at Cap
uth, near Potsdam. Desks and
drawers were opened in the course
of the search. Nothing, however,
of an incriminating nature was
found.
MATTER FEW WEEKS
WASHINGTON, D. C., March 21,
—Congressional leaders close to
the White House expect President
Roosevelt to reach a decision on
the Russian recognition question
within a week or two.
The President is understood to
be leaning toward early establish
ment of diplomatic and commer
cial relations with the Soviet Un
ion.
He confered with former Gover
nor Philip LaFollette of Wisconsin,
who has just returned from a trip
to Russia. The former governor,
a brother of Senator Robert M.
LaFollette. Republican of Wiscon
sin, talked with Russian officials
in Moscow and was in a position
to give the President then’ view
of the recognition question.
IMPRESSIVE CEREM
MARKED IKE OPENING
EE REICHSTAG TODAV
POSTDAM, March 21—The new
militant Germany, animated by
the old Prussian military spirit,
was proclaimed in the impressive
Reichstag opening ceremony where
President Hindenberg and Chan
cellor Hitler were the chief figures.
Close in the background, the
chair the former Kaiser left, was
symbolically vacant in the royal
oox formerly occupied by Princes
and Princesses.
Germany's appreciation of her
Imperial past came in double sal
utes at the beginning and end of
the exercises given by President
von Hindenberg with the Field
Marshal’s baton used by the Crown
Prince and other members of the
Imperial family.
I
HONOLULU, March 20—George
Bernard Shaw, Irish author and
playwright, here from the Orient
! on his world tour, scoffed at the
; possibility of a new European war.
“We are still too close to the last
5 one to want any new ones,” Shaw
,said. Dictatorship, he said, would
I restore order to a disordered world
| He lauded Mussolini as the only
j rseponsible man in Europe, and
I scored the League of Nations as a
! debating society.
_*_
GRANTED DIVORCE
LOS ANGELES, March 21,—Tell -
I ing of harsh words and an occa
! sional blow from Edward Hiilman,
Jr-, member of a wealthy Chicago
i family, Marion Nixon, screen ac
! tress, was granted a divorce from
Hillman.
PRESIDENT EXPECTED
SIGN BEER BILL TODAY
i _
WASHINGTON, D. C„ March 21,
—The Senate voted 43-36 to legal
ize 3.2 per cent beer, wine and
fruit juice and sent the Volstead
modification bill to the House for
final Congressional action.
The House is scheduled to act
today and President Roosevelt has
assured Congressional leaders he
! will sign the bill immediately. That
i would make possible sale of the
! legalized beverages 15 days later,
'April 5.
i Fifteen days after President
; Roosevelt signs the beer bill, pro
i bably in the afternoon, it will be
I legal to buy beer and wine every
where unless State or local law
forbids final approval.
Borah and Sheppard again at
tacked the bill’s constitutionality,
Borah recalling that the brewers’
3-5 beer was as good as prohibition
beer.
NOW BUSY CARVING MILLIONS
FROM FEDERAL AND VETER
ANS PAYROLLS
WASHINGTON, D. C„ March 21 j
—Buttressed with new power to
make millions in savings. Presi- j
dent Roosevelt turned more confi- :
dently to unemployment relief and
railroad revision, with a pen carry
ing the power of a gigantic axe- !
President Roosevelt yesterday
signed, a few minutes after receiv- |
ing it, the huge economy bill auth
orizing him to reduce veterans
compensations and government
salaries.
He and his lieutenant, Lewis
Douglas, director of the budget,
were busy last night on the in
volved new regulations by which
they expect before next month’s j
payday to carve off millions from
the payroll an estimated total of
$500,000,000 annually.
DRAFTS MESSAGE
Fortified with this measure and
Congressional progress on the beer
for revenue progress, the President,
drafted a message to Congress pro- i
posing authority for direct relief
grants to states and establishment
| of a conservation corps to put
! 200.000 men to work in the forests.!
! Congressional leaders "were sum
moned to the White House last i
night to go over the proposals on
unemployment relief plans the
President has in mind and which
he is apparently ready to submit
an drecommend to Congress today.,
nkiHspimT
LEIPZIG, March 20,—An organi
zation of Nazi lawyers meeting
here, adopted a resolution which
would bar all Jewish and “Marxist” j
attorneys practicing in German
courts, as well as remove judges
; in the same category.
Hitherto judges have been ap
i pointed for life terms in Germany.
! The resoultion said the move in
i the resolution was made “accord
ing to the lawyers plans”.
SECOND PLOT
MUNICH, March 21. —P dice
, Commissioner Himmler of Munich
reported an attempted plot on the
life of Chancellor Adolf Hitler,
i shortly before the Chancellor left
j his headquarters for an airdrome
| enroute to Beidin.
TENNIS CUP GIANT
PLAYS STELLAR GAME
NEW YORK, March 20. —Frank
Shields, Davis cup giant, whose
blazing service has been the fea
ture of the National Indoor Tennis
championship, met Cliff Sutter of
New Orleans, second season play
er, in the feature and semi-final
match.
In the other bracket, Gregory
Mangin, defending champion, op-!
posed Sidney Wood, New York
star. In conquering George M. Lott
Chicago’s internationalist, by a
score of 7-5, 6-2, Shields played
better tennis than he ever has
showm on the courts.
THREE KILLED
DAYTON, Wash., March 21, —
Three were killed and one injured
when a truck rolled off the high
way and plunged 200 feet dowrn
the mountainside near here. The
dead are Mrs. Dora Holden, Mrs.
Earl Martin, and Glen Ayres. The
injured person was Mrs. Glen Ay
res, all of Kiberly, Idaho.
CONFEREES AGREE DIE
QUAKE BELIEF Lfflfl
WASHINGTON, D. C., March 21,
—Senate and House conferees
j agreed that the $5,000,000 earth
quake relief for California should
be in the form of a Reconstruction
Finance Corporation loan.
The resolution, introduced by
Senator McAdoo, California Demo
crat, originally provided that the
relief funds should be in the form
of a Treasury advance.
TE1T01L SCHOOL
SYSTEM REORGANIZATION
MEASURE PASSED SENATE
JUNEAU, March 21,—The Senate
passed a measure reorganizing the
Alaska school system by vote cf
7-1, Walker opposing. It now goes
to the House. The measure creat
es a board of education composed
of one member from each Division
and one at-large with the Gov
ernor as ex-officio chairman and
makes the Commissioner appoint
ive instead of elective. It provides
that the present encumbent shall
finish his four year term for which
he was elected last NovemDer.
A Washington special dispatch
to The Empire said Delegate
Dimond introduced a bill repeal
ing the Alaska Bone Dry Law con
taining the provision for the legis
lature to regulate the sale and
manufacture of liquor after repeal
of the 18th amendment and
amending the organic act in this
respect.
Another measure amends the
fisheries law to prohibit seizure of
boats and gear until after the con
viction of the owner for violation
of the fisheries laws.
A third bill repeals the special
placer mining act of August 1,
1912 and extends the general
mining laws of the United States
to Alaska.
A fourth bill authorizes South
east Alaska Indians to sue the
United States in the Court of
Claims for alleged loss of rights.
FARM RELIEF MEASURE
WILL PROBABLY PASS
WASHINGTON, D. C., March 21,
—President Roosevelt explained
his reconstruction program for
the extra session of Congress to
Congressional leaders last night
and received the go ahead signal.
He added to the oending emer
gency measures the subjects of ag
riculture, home refinancing, rail
road and banking reorganization
and a three-fold unemployment
project.
Afterward, Speaker Rainey said.
“We are going right ahead with
the President’s reconstruction pro
gram without adjournment and
will pass the pending farm relief
bill today. We also expect a mes
sage from the President proposing
immediate work in National for
ests”.
Rainey said he plans lowering
interest rates to debt-burdened
farmers and home owners which
probably will be brought about
thru a bond issue.
COMPLETE POWER
BERLIN, March 2L —Dictatorial
powers lasting until April 1, 1937
will be asked by Chancellor Adolf
Hitler’s government of the new
Reichstag which convened today.
DALLAS, Texas, March 20, —Rob
ert E. Massey, who helped his
brother, the late Guy Massey, com
Song,” was behind the bars of Dal
pose the mournful “Prisoner’s
las county jail tonight.
He pleaded guilty in the Federal
court to a liquor charge and was
remanded to jail until he paid $100
fine assessed by Judge Atwell. Guy
Massey died in San Antonio several
years ago.
FOOTBALL MENTOR IS
CHICAGO, March 20, —Amos
Alonzo Stagg, football star at the
University of Chicago for 42 years,
was making final preparations for
his departure to California where
he will begin another coaching
career at the College of the Pacif
ic.
The veteran football mentor was
a guest of honor at the annual
University of Chicago alumni din
ner. President Robert M. Hutch
ins expressed the University’s re
gret at losing “the grand old man
of the midway”.
READY TO FIGHT
CHICAGO, March 21—Billy Pe
trolle, Fargo puncher and Barney
Ross, Chicago lightweight conten
der, wound up heavy drills for
their scheduled 10-round bout
heading the Chicago Stadium ring
card Wednesday night. Ross will
come into the ring around 135
pounds.
MYSTERY PRISONER'IN
TOWER OF LONDON
PLEADS NOT GUILTY
LONDON, March 21,—In a close
ly guarded courtroom and amid
the mystery that has veiled his
person since he was confined in
the Tower of London, Lieut. Nor
man Bailie Stewart, 24-year-old
officer of the Seaforts Highland
ers, went on trial yesterday charg
ed with treason.
He is charged of revealing the
secret of a new British army tank
to a concern that later offered
similar tanks to a foreign power.
He was arrested when a British
military attache learned the dupli
cate war machines were available
and Scotland Yard operatives
trailed the plans to the young offi
cer. He has been held incom
municado in the Tower of London.
Lieutenant Stewart plead not
guilty to the court martial charge
of betraying official secrets to Ger
many. Scotland Yard detectives
are alleged to have produced evi
dence showing he had attempted
to dispose of construction data
on secret army tanks.
RECESS NEXT WEEK
WASHINGTON, D. C., March 2i.
—Chief Justice Hughes announced
that the Supreme Court would re
cess next Monday for three weeks.
GOOD TIMES AGAIN
OLYMPIA, Wn, March 21—Le
galized 10 to 15-round boxing, reg
ular wrestling and pari-mutual
betting on horse races are now
available to sportsmen oi Wash
ington for the first time in 24
years. Governor Martin signed the
bills permitting same and appoint
ed commissioners to regulate the
sports.
TWENTY-THREE STATES
ARE REAOY SELL 8EER
CHICAGO March 20. — Thirty
two states have taken definite
steps toward cooperation of prohi
bition repeal ratification.
State prohibition enforcement
measures have been wiped out in
19 States. Twenty-three states are
ready to sell beer and wines the
moment they are legalized by
Congress.
GLIDER CRASHED
REDONDO BEACH. Calif., March
21, —Wallace Nugent, 18, of Pasa
dena, was seriously injured when
his home-made glider crashed
from a height of 200 feet.
RUINS TUMBLED
ATHENS, Greece, March 21.—A
heavy earthquake shook the Chal
kid Peninsula in northern Greece,
tumbling to earth the remaining
; structures in villages recently de
vastated by quakes.
UPTOWW
| SAYS BOSS RUPERT
_
ST. PETERSBURG, Fla., March
20, —The conference between Babe
i Ruth and Col. Jacob Rupert, at
| which they expected to settle
Ruth’s holdout activities ended in
| disagreement.
Colonel Rupert held to his of
fer of $50,000, and the home run
slugger was just as firm in his de
mand for $55,000. Colonel Rupert
told reporters the next move w'as
i entirely up to the Babe.
A
THREE CONFIRMED
WASHINGTON, D. C., March 21.
—The Senate confirmed the nom
inations of Hugh E. Cone of Flori
da, Gatewood S. Lincoln of Cali
fornia, and David W. Todd of New
York as members of the Shipping
Board. '
What became of the flock oi
robins which wintered in Seward,
was the subject of debate today by
a number of visitors to The Gate
way office.
FLOOD WATERS CONTINUE EN
CROACH THE LOWLANDS
OF MANY STATES
SAN FRANCISCO, March 21, —
Winter officially ended yesterday
and its dying gasp sent snow,
sleet and cold rains over many
sections of the nation. It was the.
date of the vernal equinox but all
the elements of unpleasant weath
er entered a conspiracy to make
its spring debut a meteorolgical
burlesque.
Fed by torrential rains the ram
pant Ohio river and its tributaries
continued encroachment on low
lands inundating thousands of
acres in West Virginia, Ohio. Ken
tucky and Indiana.
Eight persons died in the floods;
thousands have evacuated their
homes and railroad and highway
transportation has been severely
crippled in many places. The prop
erty damage was unestimated.
BLIZZARD IN WEST
A late winter blizzard howled
across the Middle West yesterday,
adding new torment to a region
already beset by surging floods.
At least 11 lives were lost in the
blizzard area.
Wet snow piled into high drifts
in Minnesota, Wisconsin and parts
of Iowa. Drizzling.rain that turn
ed to sleet bore telephone lines to
the ground and made paved high
ways as slippery as glass in Llli
nois.
Nearly one-third of the bottom
land farms along the Ohio river
in Indiana were inundated.
AMERICAN OFFICER
EMPLOYED 8! FRANCE
PARIS. aMrch 20.—The French
Foreign office has hired an Ameri
can writer to act as a liason “offi
cer" between the Quai d’Orsav, the
French Foreign office, and Ameri
can public opinion, in a belated
effort to try to “sell” France to
America.
The writer is Leon Fleischman.
formerly of the defunct New York
World, and recently associated
with Edward L. Bernays, New York
public relations expert and an ac
tive consulant of governments on
publicity and information for the
press. Fleischman was recommend
ed to the French Foreign office by
Jules Henry, attached to the
French Embassy in Washington.
HOLT REVEALS
SELF IIS REAL LEASER
WASHINGTON, D. C., March 20,
—President Roosevelt has revealed
himself to be hard-boiled and
cynical, leader of both parties and
as an astute political general, keen,
quickwitted and capable of meet
ing them on their own grounds.
Not least among the qualities
the new President has displayed in
a hectic two weeks is the political
skill which forced Congress to en
act in seven days a program of
unprecedented magnitude which
ordinarily would have required
months.
CHICAGO, March 20.—Grayhair
i ed Patrick Nash rallied his forces
in a fight for the late Anton J
Cermak’s position as National
Democratic committeeman from.
Illinois.
Much was at stake as the veter
an politician launched his battle.
; it appeared he would be a certain
I winner.
Already he has given rival
' Democratic leaders of the post
. Cermak period a sound licking by
i placing his personally selected
| candidate in the mayor’s chair.
| Now he is out to win a place for
himself. __
CARD PARTY WEDNESDAY; EVERYBODY WELCOME!
BY EASTERN STAR, MASONIC HALL, 8 P. M. PRICE 50 c