Arizona Daily Star from Tucson, Arizona • Page 1

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Humidity, p. pet. interwl second-cls nutter NO. 4 TUCSON, ARIZONA, TUESDAY MORNING, JANUARY 4, 1938 PRICE FIVE CENTS umce, meson. Arias.

FOURTEEN PAGES VOL. 97 A I 1 1 1 I I I M1 JJ QBJ? o) o) i i i i i i ii ii TERUEL BATTLE IS NEARER CITY UTILITY SUBSIDY PROGRAM RULED VALID BY COURT WORKERS TAKE OVER BUILDINGS IN RESORT UNIT Harmful Practices Scored In Message Which Is Seen As Partially Conservative LOYALISTS SAY First Baby Prizes Of 1938 Awarded To Frank Brooks Three-day-old Frank Bradley Brooks was declared Tucson's first baby of 1938 last night. His parents will receive gifts from 23 Tucson businessmen, mostly clothing: and other articles to make up a layette. There will also be table lamps, permanent waves and even a bottle of Scotch for father Palace Is Captured When Agua Caliente Employes Government Troops Storm Walls Demand Their Jobs in New Action Text of Message INSURGENTS ESCAPE GATES ARE LOCKED Opponents Waiting For Second Report On Industries BUD GETWOBBLING and mother, however. Encircling Movement Is Halted in Snow-Covered Hills 400 Ask Government To Provide Them With Employment Federal Competition In Electric Field Said to Be All Right ICKES HAILS ACTION Willkie Declares Firms Cannot Compete With Gift Plants WASHINGTON," Jan.

3. (A) The supreme court threw out the challenges of two private power companies to federal financing of public power projects today in a decision Secretary Ickes said would Frank was born at 12:44 a. m. New Year's day to Mr. and Mrs.

John Brooks, 1738 East Third street. Mr. Brooks is a professor of Spanish AGUA CALIENTE, Mex, i Jan. 3. MP) Demanding "the at the University of Arizona, Judges ruled Frank winner of the right to work," 400 former em- annual baby derby when the at-1 ployes and their families took tending physician and two nurses possession of luxurious Agua at St.

Mary's hospital verified the Caliente today. hour of his birth. Tiny Misz Bertaj The workers marched into WASHINGTON, Jan. 3. (JP) The text of President Roosevelt's address to congress today follows: To the congress of the United States: In addressing the congress on the state of the Union present facts and future hazards demand that I speak clearly and earnestly of the causes which underlie events of profound concern to all.

In spite of the determination of this nation for peace, it has become clear that acts and policies of nations in other parts of the world have far-reaching effects not only upon their immediate neighbors, but also on us. Peace Precarious I am thankful that I can tell you that our nation is at peace. It has been kept at peace despite provocations which in other days, because of their seriousness, could well.have engendered war. The people of the United States and the government of the United States have shown capacity for restraint and a civilized approach to the purposes of peace, while at the same time we maintain the integrity inherent in the sovereignty of 130,000,000 people, lest we weaken or destroy our influence for peace and jeopardize the sovereignty itself. Aggression Avoided It is our traditional policy to live at peace with other nations.

More than that, we have been among the leaders in advocating the use of pacific methods of discussion and conciliation in international differences. We have striven for the reduction of military forces. But in a world of high tension and disorder, in a world where stable civilization is actually threatened, it becomes the responsibility of each nation which strives for peace at home and peace with and among others to be strong enough to assure the observance of those (Continued to Page 5, Column 1) Pay And Crop Control Still De ma By President WASHINGTON, Jan. 3. (flP) President Roosevelt asked the newly convened congress today for legislation to end "harmful" business practices, and appealed to business itself to help in the stamping out.

In a personally delivered message broadcast to almost the entire world he promised business if it would cooperate with government in this way, it could count upon government to cooper Ramona Saenz, born in the Stork's the resort in orderly fashion Nest to Mr. and Mrs. Paul Saenz and locked the gates behind them. They refused to admit affect $146,917,808 of proposed construction. Unanimously, the court ruled the Alabama and Duke power companies had no legal right to contest the validity of PWA kans of 87 South Scott street, was withdrawn from the race when a check revealed the clock by which her birth was recorded was reported and grants to local governments in Alabama and South Carolina for inaccurate.

MADRID Jan. 3. (P) The bloody battle for Teruel swung to within half a mile of the city tonight as the reinforced insurgent army tenaciously attempted to relieve the garrison still besieged within the eastern provincial capital. An official war office communique said the Civil governor's palace one of two insurgent strongholds under siege nearly two weeks had been stormed and taken by government troops. The main body of insurgents, however, escaped and fought their way to the Aragon hotel where they continued resisting.

The communique said the hotel was surrounded. Rescue Sought It was these insurgents reinforcements were driving to rescue from the southwest. The front littered with thousands of dead, still was held fast in snow. The insurgent encircling movement from Concud and from the dominant Muela hill position, dispatches from Barcelona said, was thwarted by government troops. Reports indicated 200,000 partici the construction of power plants.

The justices held the companies PHOENIX POWER had suffered no invasion of legal or equitable right as the result of the government activity concern RATES REDUCED ing these projects. Ickes Pleased WENDELL WHE, president of Comryealth and Southern corp.5 said yesterday that companies cannot compvith municipal plants gito cities by the federal gnment on which the citio not need to make a retu SINO-JAPALES CONTRCTORY Chinese and anese Differ on Wfc Holding SHANGHAI, Jj-(Tuesday) (JP) Chinese authorities reported todayng columns under Gen. Fah-Kwei, famed "Ironsideshmander, had driven the Japj from Hang-chow with heavs. Sharp fighting reported developing along Ihores of the west lake, on titskirts of the Secretary Ickes, the public works administrator, said the decision would affect immediately 61 public Ten Per Cent Cut Order ate with it "in every way. After the recent, vehement attacks upon some sections of the business community by high administration advisors, the address was generally regarded in congress as unexpectedly conciliatory.

Opponents Wary But opponents of the administration were still wary, nevertheless, and before determining their course of action preferred to await a sec power projects states. "This decision," he said, appears Made by Commisison Without Hearing PHOENIX, Jan. 3. JP) The Ari at the end of a long trail on which certain selfish corporations sought Democracies Pleased About Roosevelt Talk to Country But England Is Disappointed Becaues He Did Not Go Farther in Enunciation of Determination to Maintain Status Quo in Troubled World LONDON, Jan. 3.

(JP) Europe's great democracies and the League of Nations tonight expressed warm approval of President Roosevelt's message to congress, especially his assertion the world's peace was "most safe in the hands of democratic representative governments." In France and Great Britain nation-wide applause greeted his state- to block the will of the people. The people have won. zona corporation commission announced tonight a new electric rate for the Phoenix district, involving In three other actions affecting officials of the Agua Caliente company and the Tijuana chief of police. Spokesmen said that their object was two-fold. They were holding the property in lieu of payment of three months wages they said were due them, and in protest against governmental seizure of the resort "for school purposes." No violence or damage was reported, but the workers refused to permit anything to be moved from the palatial hotel, casino and spa.

The former employees are members of a union affiliated with the CROM, powerful Mexican labor organization. They were reported to have sent a representative in Mexican to confer with the governor of Baja California. Red Flag Flies The red flag of the CROM flew over the resort tonight. The workers announced they intended to remain in possession of the resort until such time as the government afford them other means of earning a living. Guards were stationed at the main entrance gate, closed with a heavy chain and lock.

Reporters admitted by union directors were allowed to go around the grounds in company with union officials. An official statement of the directors of the labor syndicate said: "The union of Agua Caliente workers, knowing the disposition of the president of the republic of Mexico relative to the confiscation of this property, issues the following statement: Protest Made "The workers of Caliente do not utilities, the court: Rail Order Reversed an approximate 10 per cent decrease and a $200,000 saving to con 1. Reversed by a 6 to 2 vote a California district court decree enjoining a rate-making order of the sumers annually, would be placed in effect February 1. state railroad commissoin. The in I ment of the American people's be The new residential rate will be bunal sent the case back to the lower court to determine whether 2 cents per day and 4 cents per kilowatt hour for the first 100 KWH, the rates were confiscatory.

In this case the government had asked the COMMENTS ON SPEECH MIXED historic capitaf Chekiang ond message on the subject of business reforms which Roosevelt said he would send to congress later. Otherwise, today's message: Noted a troubled and tense world situation which he said made it necessary that the nation be "adequately strong in self-defense." Reported the budget which would be submitted this week for the next fiscal year would not show a balance between income and outgo but would reveal "a further decrease in the deficit." Wage Issue Seen Called the wage and hour legislation "a problem which is definitely before this congress for action." Expressed the hope conference 3 cents for the next 90 KWH and 2 of province, 120 nfsouthwest cents for all additional KWH. Shanghai. justices to reverse previous decisions and held the utilities should be valued for rate-making purposes on the basis of "prudent investment" without consideration to re- nrnrlnpf inn rtcfc "Rlltlpr lief democracy would "be restored or established in those nations which today know it not," and his declaration "in that faith lies the future peace of mankind." Statement JPraised Sources close to the British government declared European countries generally Germany and Italy excepted welcomed what theycall-ed a bold condemnation of the policies of dictatorial countries. Japanese insisteir occupation pated in the battle.

Trenches Built Waves of benumbed infantrymen covered the hillsides while crews behind the lines completed a network of fortifications on the hills. The government communique reported many bodies were recovered from the ruins of the civil governor's palace, including those of children who had starved to death. Control of the city was expected to be a determining factor in the outcome of the war. Dispatches from both armies indicated the city was the scene of no-quarter fighting. For operations against the background of Teruel's outlying, snow-mantled hills, government forces wore white coats for camouflage.

(A communique from Salamanca, Generalissimo Francisco capital, said the government, despite reinforcements, had been driven from Villastar, about five miles from Teruel, after a fierce struggle). Old Rate Given The present 'rate is 2 cents per Party Lines Followed In Praise and Blame for Roosevelt Talk and McReynolds dissented and Su of Hangchow and unopposed. Conication with Hangchow was red but latest reports from tlf ndicated foreigners were sad the situation day and AM per kilowatt hour for the first KWH, 3 8-10 cents for the next 150 KWH, 3 cents for the next 150 KWH and 2 cents for all additional KWH. therland did not participate. Water Rate Case 2.

Returned to the southern In Commercial rates the new quiet diana federal district court for further consideration a case involving schedule are 2 cents per day and 8-10 cents per kilowatt hour for Far fronnplete Other Chinesorts said the the first 500 KWH, 3 cents for the Indianapolis water rates fixed by the state public service commission. Justice Black dissented. 3. Agreed to pass upon a chal next 1,500 KWH and IVi per KWH for all additional electricity Japanese occupf of the area from Shanghai Ivard to Nan king was far fr ample te. They The old rate is 2 cents per day claimed the Japj were extend and ,4 cents per killowatt hour for the first 50 KWH, 3 8-10 cents for the next 500 KWH, 3 cents for the ed over an areajarge for troop control.

WASHINGTON, Jan. 3. (JP) Democrats in congress generally praised President Roosevelt's message today, some Republicans said it was more conciliatory than expected, and other minority members called it an "alibi" to account for the business slump. Among the comments were these: Democratic Leader Barkley of the senate "A very comprehensive, well-prepared and comprehensive speech." Republican Leader McNary of the senate "A pleasingly conciliatory speech in comparison with some of the recent utterances by some administration officials." Rayburn Pleased Majority Leader Rayburn of the object to the action of the president in confiscating these properties, but we do object that these properties pass to the department of education to establish schools, universities, because, while we believe firmly in the program he has drawn for the workers, this change would throw 400 men, who depend upon this for employment, out of work, xxx "In taking these steps, the union is fully backed by all organizations belonging to the CROM and we are resolved, therefore, not to abandon these properties until the government, to the same extent as we have been employed here in the past, has solved our problems, Two Japaneiolumns were FORD HAS ASKED SECOND HEARING Labor Board Holds Off Action to Await the Result of Appeal driven from thrth and south to pinch off Sf, in northern Kiangsu province of the most important rail junctions in China. lenge to the constitutionality of the public utility holding company act of 1935.

The litigation was filed by the Electric Bond and Share company and 26 subsidiaries, and the government had joined in urging an early hearing. Senator Norris (Ind, veteran advocate of public power, viewed the Alabama and Duke Power company cases as a "go ahead signal" for further public power development. -Willkie Speaks Wendell L. Willkie, president of Commonwealth and Southern corporation, commented the ruling was "extremely unfortunate from the In Rome high Fascists were indifferent to the President's comments. The Fascist attitude previously has been that Italy is the true democracy.

At the British foreign office the speech was applauded as evidence of the identity of American and British foreign policies. French statesmen in Paris left no doubt President Roosevelt's message was considered "France's own." Geneva Pleased League circles at Geneva hailed the President's support of national democracy as meaning he also believed "international democracy" or league collaboration must be restored. British quarters expressed disappointment Roosevelt failed to elaborate the extent of the leadership the United States was prepared to take in curbing international lawlessness They said, however, they believed Roosevelt was hampered by the isolationist attitude of America and handicapped in a full expression of events in the Far East by the United States lack of a large naval base in that region. London newspapers displayed committees working out a crop control bill would confine the cost to what is now being paid for that purpose $500,000,000 annually. And, proferred advice on the writing of a tax bill: No decrease in the total revenues to be collected, a watchfulness against opportunities for tax evasion, and a "change" in provisions which have been "proven to work a definite hardship." Divided Reaction He had gone through three-fourths of his speech before he reached the business phase.

There had been obviously divided reaction among his hears to other points. Then, he said: "The objective of increasing the purchasing power of the farming third, the industrial thifd and the service third of our population presupposes the cooperation of what we call capital and labor. "Capital is essential; reasonable earnings on capital are essential; but misuse of the powers of capital or selfish suspension of the employment of capital (his nearest approach to Jackson's and Ickcn charge of a strike) must be end One army wjttling Chinese forces at Kashai the fringes of the Kiangsu lakgion. Race Course Free Missionaff rapped Reports from battle area 300 The Agua Caliente Turf club property, the race course which was house "The message was reassuring to everyone who wants to be reassured. I think it outlines a sound program." Republican Leader Snell of the house "It was more conciliatory opened Sunday for a winter meet miles northwestShanghai indicated four Arm missionaries were in dangej being trapped at Suchow.

thetegic junction ing, was not included in the seizure next 1000 KWH and lVst per KWH for all additional electricity. Conferences Held The rate schedule was drafted following conferences of commission members with officials of the Central Arizona Light and Power company. Approximately 25,000 consumers in Phoenix, Glendale, Peoria, Buckeye, Tempe. Gilbert, Chandler and other Salt River valley points will be affected. Gross receipts for 1937, utility officials disclosed, were $1,990,000.

The hew rate will slash that figure by approximately $200,000. No Formal Hearing A similar reduction was ordered by the commission in 1934, following a valuation of the company's property. The new schedule was drafted without a formal hearing or valuation of property. Phoenix city officials estimated tonight the new schedule would make possible a $13,000 saving in street lighting, street railway and other municipal functions. and will continue to operate as planned, Eugene Normile, president and general manager of the race viewpoint of the utilities, but the mpreme court has spoken and it has the last word." He said no utility could compete uccessfully against a plant "built in whole or in part with free gifts course, was assured by representa tives of the workers.

14 SURRENDER ON ed or the capitalistic system will destroy itself through its own abuses." DETROIT, Jan. 3. (JP) The Ford Motor company asked the National Labor Relations Board today to vacate its recent decision that the company violated the Wagner Labor Relations Act, and the board announced it would defer court action against the company while considering the petition for a new hearing. The 14-page petition, filed with the labor board in Washington, said the company had been "denied a fair hearing both within the meaning of the statute and in violation of the fifth amendment to the constitution of the United States." It said evidence would be offered at a re-hearing to disprove the antiunion activities charged in the decision, or justify them in the light of the "history of the time." No Time Indicated The labor board gave no indication as to when it would act upon the petition. CHARGE OF FRAUD news of the speech prominently on their front pages In England, thousands of persons tuned in on the broadcast of the speech from the federal government and upon which the municipality does oot have to make any return." The Alabama Power company is subsidiary of Willkie's company.

Projects in four Alabama communities and one in Greenwood county, South Carolina, were involved in the Alabama and Duke cases. of the Tientakow railway, linking Central North China, and the Lunglhe great east-west trunk raih The missionarho remained at Suchow were hd Mrs. Frank A. Bornw, of folk, Dr. Archibald McFh, Raeford, N.

and Mrs. Due West, South Carolina, Japanese bonj planes scouted Tsingtao and $anese warship dropped at Tsingtao bay. Belief thf was to be attacked by thefnese navy was heightened whhe man-of-war swung along I the luxurious waterfront hoW turned about and set out tohowever, without disclosing object of the visit. Minority Attacked He said the majority of businessmen and bankers "intend to be good citizens," that the practices-of which (Continued to Page 14, Column 6) LOS ANGELES, Jan. 3.

(JP) Fourteen of the 15 former officials of the old Pacific Mutual Life Insurance company who were indict VITAMIN MAY KILL ELEPHANT TROUBLE ed on mail fraud charges at Phoenix, recently had surrendered today when George I. Cochran, WRITERS' BODIES START FOR HOME former president, posted a $25,000 PHOENIX POSTAL RECEIPTS PHOENIX, Jan. 3. (JP) Phoenix postal receipts set a new record in 3937, the total $674,294.98 being, a 12.9 per cent increase over 1936, George H. Todd, postmaster, reported today.

surety bond upon his return from a vacation in the east. De Lancey Lewis, former vice- than I expected. Senator Wagner "A magnificent message supported by facts." Vandenberg Bitter Senator Vandenberg "I find no inkling in the message that the executive understands or is willing to admit what is happening to our economic life." Rep. Mary Norton "I don't think any member of congress who heard the President will have any doubt that he wants to help the under-privileged through legislation." Senator Norris "It was a very good adress." Shipstead Doubtful Senator Shipstead (F. "The aim is all right, if he can actually work out these objectives." Senator Glass "A very agreeable and engaging sort of message for his viewpoint." Representative Fish "A long, drawn-out agony of alibis and avoidances without any definite program of recovery." Senator Guffey "A masterful and straightforward statement with which 98 per cent of the people of the country will agree.

The President is still the great leader." Politics Seen Senator Wheeler "An excellent political speech." ZARAGOZA, Spain, Jan. 3. (JPy NEW YORK, Jan. 3. (JP) For one-half cent a pint, said Dr.

Norman Jolliffoe here today, distillers could put vitamin B-Q in their liquor and probably prevent one of the alcoholic nerve troubles, polyneuritis. Pink elephants are an occasional The bodies of three war correspond ents killed in Spain were taken to the French frontier tonight after solemn funeral services and tribute Redfern Declared Dead When Widow Asks Action in Court penalty of polyneuritis. This disease TAKE ADVANTAGE OF THE 14TH ANNUAL Holiday Bargain Subscription Offer OF THE ARIZONA DAILY STAR is not really due to alcohol, but to food starvation when heavy, chronic drinkers get to neglecting their meals. Dr. Jolliffe is chief of the medi cal service of the psychiatric divi- sion of New York's department of hospitals.

His recommendation to put the vitamin in "hard" liquor is based on a study of 1,000 cases of alcoholism. Twenty-two and six-tenths per cent, he said, suffered from polyneuritis. UNDERW7ERS TO GET DGR LINER SAN FRANO, Jan. 3. (JP) The Dollar linnounced today it had given to underwriters the $8,000,000 lPresident Hoover, which raiound on coral reefs off Formccc.

10 while sailing a new courim Kobe, Japan, to Manila. 1 The announik said the decision was reacbecause of continued monsoa the area, with salvaging prosj virtually hopeless, By the decfthe Dollar line will collect irice on the liner and abandon Mvage rights. The 453 paiers of the fast luxury liner coied their voyages on the Dollar Vessels President McKinley anfresident Pierce. Capt. master of the Hoover, reed with a skeleton crew on jHoishoto island, where the I struck during 95 The board held the company responsible for violence which occurred at the Ford Dearborn plant May 26.

It ordered the company to reinstate 29 men discharged allegedly for union activities and to post notices it was desisting from interference with the United Automobile Workers or other legitimate labor organizations. The 10-day period granted for compliance with those orders expired last night. The Ford petition charges the labor board with "failure to take into account" the "epidemic" of sit-down strikes in Michigan last year in which "industrial plants were seized by force their production suspended men wishing to work were forcibly restrained from doing so and then forcibly restrained from leaving the seized plants." To Resist Seizure The petition said the Ford company "determined that in so far as it lay within its power and so far as it could do so consistently with obedience to all laws it would resist any such attempted seizure of its plant." The petition denied the company had discriminated against union members, and asserted no proof existed the 29 men ordered reinstated were discharged for union activities I Pays or A Whole Year irora high insurgent army officers. The bodies of two Americans, Edward J. Neil of The Associated Press and Bradish Johnson, correspondent of the magazines "Spur" and "News-Week," were on the way to the United States.

The body of the British newspaperman, E. R. S. Sheepshanks of Reuters (British news agency), will be taken to England. Generalissimo Francisco Franco was represented at funeral services by General Jose Moscardo, hero of the defense of Alcazar.

The three correspondents were riding in the same car last Friday, watching progress of the major insurgent attack on Teruel where a great battle still rages when their car was struck by a 75-millimeter shall. Johnson died instantly. Neil and Sheepshanks died later of wounds. Harry Philby, correspondent of Jfte London Times, also in the car, wa injured slightly. (Today at the moment mass was e'ng said in the cathedral of Zara-Koza.

the wires of The Associated 'jess were silent for two minutes as an expression of honor and af-ftion for Neil- BRIGHT CITIZEN IS ADDED TO NATION Senator McAdoo "The President's message should reassure those who feel nervous about the future of business in the country." SAVE $2.05 move the uncertainty of her status. Redfern, one of aviation's pioneer daredevils, tried to link Brunswick, with Rio de Janeiro in a nonstop flight. He flew away August 25, 191'7. The crew of a Norwegian freighter reported sighting a plane that hiight have been his 150 miles off the coast of Venezuela the next day. Thereafter, no word of him.

Karl E. Scott, counsel for the slim, blond Mrs. Redfern, introduced at the hearing today a letter which he said was received from Prof. Morton C. Kahn of the Cornell university science department, who had made a search for the flier.

"It is extremely unlikely that he is still alive," the letter said. Mrs. Redfern said she now will seek a Vatican decree allowing her to remarry. She said she had been advised by the Vatican that civil authorities must first recognize her widowhood before she could obtain decree.1 She did not disclose her remarriage plans. DETROIT, Jan.

3. (JP) Ten years and four months from the day he adventurously flew southward, the fantastic story of the aviator Paul Redfern was climaxed today by an order of circuit court declaring him a dead man. One upon another until they totaled 13, expeditions had sought the missing pilot in South American wilds while the lore surrounding the lost man steadily was enriched with new suppositions of his fate. Some rumors, generally discredited, said he had been captured by savage tribes in the upper Amazon region. No searchers, however, ever returned with the answer to his disappearance.

Today, acting on the petition Of Redfern's wife, Gertrude, who said she had spent all her savings to aid the searchers, Circuit Judge Robert M. Toms ruled the aviator legally dead, pronouncing the wife a widow. She had sought to re GREENBAUMS FACE PRISON SENTENCE PHOENIX, Jan. 3. (JP) Sen MONTICELLO, N.

Jan. When Christ Thomaides of Youngsville, N. applied for his citizenship today, Supreme Court Judge Sydney F. Foster asked him: "Who makes the laws for this country?" "President Roosevelt," replied Thomaides. "Well," said the jurist who is a Republican, "there's some question about that anyway.

You're MAIL OR BRING YOUR CHECK TO THE STAR OFFICE OR CALL 2400 THIS OFFER EFFECTIVE DURING THE HOLIDAY SEASON ONLY. tences of three years imprisonment and fines of $1000 each were im murky weathi The Hoovwhich had Deen struck by Chf aerial bombs on an earlier the uneni during the Sinomese war, was posed today upon Gus, Charles and William Greenbaum, convicted of mail fraud in connection with stock sales in the defunct Clarence Saunders stores system. sailing the course to avoia the war zondLnd Shanghai..