Wilkes-Barre Sunday Independent

              100,000-TON COAL SHIPMENT MADE OVERNIGHT
A Paper for The Home
SUNDAY INDEPENDENT
Weather
Sunday:   Fair, cool. Monday:  Warmer.
FORTY-FOUR PAGES
WILKES-BARRE, PA., SUNDAY, MARCH 27, 1938
PRICE TEN CENTS
FRANCO ONLY 25 MILES FROM SEA / ENGLAND BELIEVES WAR NEAR END
....^¦¦¦-i^.%w   -^^ End Financial Strain
RUSHED BY ANTHRACITE
Many Extra Trains as Last
Coal Is Shipped Before
Freigiit Rate Boosts
ALL LINES ARE BUSY
Expected Fuel Price Cut Adds to Demands; Hudson Recalls    8,000    Miners
Rushing to move out-of-the-.state shipments hefore the freight In- rrease goes into effect, added to ex¬ pectation of a decrease this week in anthracite price.s, moved more than 100.000 tons of hard coal out of Wyoming Valley last night and early this morning.
It was the biggest 24-hour coal movement out of this section of the coal flelds in years.
Not only were many extra rail- ro:^l crews called out as hundreds of .M-ars were shipped and many exij^i trains added to the runs, but thousands of work orders went out lo miners as the coal was put In demand. Over 8,000 men were re¬ called by the Hudson company In the Scranton area alone and the Glen Alden also will be busy.
An U-cent Increase per ton on all coal shipped out of the state ^ goes into effect tomorrow morning. Huge caravans of anthracite early yesterday afternoon started moving to points in New Jersey, also tn Rochester, Oswego, Buffalo and other points in New York. Crews worked feverishly during the night. Trains will have many extra cars as they move from here before  midnight  tonight.
Hundreds of Cars .Moving Chief Dispatcher of Lackawanna Railroad stated last night that 900 cars, with extra crews, were being shipped over that railroad. Steady work Is expected for collieries along that railroad, he explained, and the traffic is regarded as extra-heavy.
Central Railroad of New Jersey had 640 cars of 40-ton capacity to b« moved from the Ashley siding last night. Five regular trains and four or five extras would be needed, it was repnrted, to tran.sport the fuel to points east and west by today. Many part-time workera re¬ turned to their posts.
20,000 Ton* on I^rhigh \ alley A total of 20,878 tons were shipped yesterday by Lehigh Valley Railroad Company. Four or five extra trains were pressed into ser¬ vice to ship 422 cars. The chief dispatcher of this line said that business is expected to spurt again when coal prices are sliced thia ivecU. '^ Delaware & Hudson reported nearly l.W cars out of local yards. while Krie, at Avoca, announced that traffic was heavy, bul figures would not be available until this morning. Likewise. Pennsylvania Railroad officials staled that extra trains were being used to handle rii.xh  business.
Big increases are anticipated in market demands with price-slash¬ ing; of fiO to 60 cents on some coal si7.es tfiis week. In most com¬ panies these will go into effect April 1. Kgg, stove and chestnut sizes will be reduced 150 cents per ton. pea coal will be slashed fiO cents per ton, while buckwheat anrl rice will remain the same. Price of barley coal will be raised 10 cents per ton.
8,000   Miners   R«-called
In    the    Scranton    area,    nearly
«,0on miners, idle the past two and
three  weeks  because  of  a  market
slump,   will   resume   work.   These
(Continued  on  Page A-10)
Suggests Use of Poor District Money to Pay Off
Loans, Prevent Bond Issue, Save $8,000 Yearly
as Borrowing Halts, Make Tax Cut Possible
Confident that Luzerne county this year will turn over to munici¬ palities which made up the Cen¬ tral Poor District the .$3,000,000 purchase price the county must pay for the facilities of the former dis¬ trict, Wilkes-Barre City Council¬ man Thomas A. Evans has pro¬ posed a plan far use of the city's large share which will save the city over $8,000 yearly by preventing temporary loans, pay off the present heavy load of these loans, make another bend issue un¬ necessary, make a slight tax re¬ duction possible and at the same time tend to keep city expenditures well within  the city's income.
Given already the substantial backing of City Treasurer Fred Goeringer jr., the plan will be pre¬ sented to council in the very near future and seems certain of ap¬ proval. Financial leaders of the city who have been consulted al¬ ready have indicated their liking for the business-like method by which Councilman Evans has con¬ sidered all phases of the problem and favored a system which will spread heavy benefits over a long period rather than making a bril¬ liant and temporary flash which would allow the city to continue with all present burdens and a share of new onea.
Cxpecta Money Thla Year Mr. Evans' statement follows; "Under a recent  act  of Legisla¬ ture, the Central Poor District was
TAX LOAD OF NATION ATTACKED
Rises 30% in Two Years to
ISJ  Billion; More than
Country's Food Bill
STUDIED BY SENATE
Building Boom in Spain—Houses Made Lottery Prizes
COINCILMAN   EVANS
. . . biisinessliUe auggestions
abolished, and a new county in.sti- tution was created. The new in¬ stitution is to be administered by the Luzerne county commissioners, and the commissioners have tenta¬ tively agreed to float a bond is.sue in the sum of $.3,000,000.00 for the purpose of purchasing the real and personal assets of the abolished (Continued   on   Page   A-4)
LUZERNECOUNCIL IPOLICE
ENDS DEADLOCK;! NAGLE IS SULL
MAKES changes!   HIDING NEAR BY
Move Also Started to Reduce
the Size of Borough's
Governing   Body
SHIFT COMMITTEES
I Harrisburg Police Pick up
Auto of Desperado Who
Escaped   from  Jail
CHASED IN KINGSTON
The four-four deadlock existing in the Luzerne borough council since the first of the year was terminated yesterday at noon. A special meeting was held by five members who proceeded to use the axe on a number of borough em¬ ployees.
The new administration consists of C. H. Ahrendts. Eugene Bren¬ nan. Bernard Dukinas, Thomas F. Barry and Con Boyle. The minority is niade up of Stanley Evans, Harold Hewitt and Frank Sobeck. Dukinas was the pivot man.
Leo D. Matkins was discharged as street commissioner and John J. Monahan was named aa his suc¬ cessor. Albert Sobeck. sergeant of police, was removed and Alvin Grumblis named in his place. Grumblis is the former chief.
Two members of the board of health also were removed. Louis Bileggi. court house clerk, and John V. Crossin were dismissed by a unanimous vote.
.'\Iore ('hangea Expected
It Is reported that more changes will take place at a later date. All dismissals, with the exception of the board of health are effective April 1. Dismissals in that depart¬ ment are effective as of today.
After breaking the deadlock, council proceeded to adopt measures to prevent similar tie- ups. Councilman C. H. Ahrendts. who becomes the new council leader, offered a motion authoriz- (Contlnued  pn  Page  A-10)
End Profits Levy But Will
Penalize 'Unreasonable'
Corporate Surpluses
Washington March 2B (UP) — The Senate finance committee, drafting a new tax bill from which the undistributed profits levy ha.<; been deleted, today sought to plug loopholes and insure maximum revenue.
Chairman Pat Harrison, D., Miss., while revising the bill to extend relief to busine.ss, said the com¬ mittee intended to strengthen clauses penalizing "unreasonable" accumulation of corporate sur- plu.ses.
Nation's Tax Bil! Staggering While the commiltee made fur¬ ther revision.s in the measure which already has been approved by the House, the U. S. Chamber of Commerce charged that the mounting tax burden is dLslurbing business and Is partially respons¬ ible for recession. Claiming "it has gone up ."iO per cent in the past two years and Is still rising.
"In the current fiscal year It Is estimated that the country's tax collectors—federal, state and local —will dip into the national purse to the extent of $13..'i00,000,000. Two years ago. the total tax take was $10,400,000000. It la more than the entire nation'.s food bill . . ."
The Chamber advocated a flat tax of 12'a per cent on corpora¬ tions, adding that a 10 per cent rate would be preferable. In elimi¬ nating the undisturbed profits tax, Harrison's committee substituted a flat 18 per cent levy.
Harrison explained that the new tax on "unreasonable" surpluses Is necessitated by  elimination  of the (Continued  on  Page A-10)
LOYALISTS' DEFENSES CRUMBLING
Nationalists Fight Way into
Coastal Provinces; Now
Cutting off Madrid
WAR BELIEVED ENDING
Navy Unable to Answer Plea for Aid From Boat Fearful of Insane Captain
Ami
Us Angeles, March 26 (UP) — African shipping authorities to- "iRnt helplessly awaited further word from the radio operator of 'h« fishing boat Sea Tern, cruising Off the Mexican coast 1,000 miles ¦outh of here reportedly under con- 'fol of an Insane captain.
International red-tape made It ¦mpossible for American coast guard vessels or warships to go to !"• lid of the Sen Tern, an 85-foot P'lrie seiner, without first obtain- , "8 permission from the Mexican •nvernment.
Meanwhile    the    jerky    message «M cracked over the Pacific laat
night from the radio operator re¬ ported that the captain was "ap¬ parently Insane" and warned that there might be killings If help did not arrive.
The vessel, with a crew of 11, was then cruising off Tortuga Island near the mouth of the Gulf of California. An International treaty forbids the United States sending aid to any American ships in trouble more than 250 mllea be¬ low the Mexican border.
Naval authorities said that they could not send ships tn the scene because all available fiaval craft are engaged In war games In the vicinity of Hawaii.
Wilkes-Barre anri Kingston Police expressed the opinion last night that Carl Nagle, local desperado who escaped from the Tunkhan¬ nock jail several months ago in a daring manner, is slill at large In this community.
Yesterday all local agencies were notified by the Harrisburg police that they have recovered the old Oldsmoblle car which was stolen by Nagle following his sensational escape from the Tunkhannock jail. He was held by State Polire and Wyoming county authorities on the charge of burglarizing the liquor store   at  Wyalusing.
Police Find HU Auto
Nagle is also held responsible by police officials for a number nf olher robberies, particularly at liquor stores.
Harrisburg police made positive identification of the crfr after the discovery that license plates were those reported stolen by Kingston police  from  a  Kingston citizen.
The car was taken by Nagle to a Harrisburg garage to be repaint¬ ed. After the work was completed and the bandit did not call ffir his car police were notified. After a complete check they established the fact it was used by Nagle in his escape from the Wyoming county jail. Attendants at the gar¬ age, after being shown pictures of Nagle, identified him aa the man who instructed them to repaint the vehicle.
Stolen   Liquor   Traced
Following the robbery at Wya¬ lusing. the stolen liquor made its way to some of the cafes on the West Ride through accomplices. Those who purchased the liquor were subsequently placed under ar¬ rest by officers of the Liquor Con¬ trol Board In co-operation with state police. The first Indication that Nagle (Continued on  Page A-IO)
CITYSALOON IS HELD UP
At 1:15 thia morning two un¬ masked but well armed young gunmen held up the saloon of Peter Gaughan at fiSZ South .Main street, took $100 from the proprietor and another good haul frojn the cuatomers of the place.
There were about a dozen In the place when the bandits en- fere<l. Pointing their guns, they ordered all handa up and lined the patrons up againat the wall and faces to it. Then one of them went through pocket*. Then the proprietor was told to empty his eaah register.
Tliat done the holdup men barked   nut  and  disappeared.
Wilkes - Barre pnlice were notified immediately nnd three cruiser cara were on the spot In a few mlniitea, with alx patrolmen and ttvo detectivea searching   the   locality.
While artillerymen in Spain's con¬ flict are busy knocking down struc¬ tures,   here   Is   a   scene   in   Seville
where buildings are being erected. These low-priced flats are being built at orders of General Franco
to win support of poor and wound¬ ed. Flats are awarded to needy in   a   lottery.
E
SMALIJSINESS
Acts as Difference of Opin¬ ion   Threatened   Delay to Federal Program
GOERING TELLS VIENNA JEWS 'MUST GET OUT'
WOULD USE RFC
Washington, March 26. (UP) — The administration tonight placed Its support behind the Glass bill to broaden lending powers of the Reconstruction Corporation and ex¬ pedite financial aid for amall business.
Sen. Carter Glass, D.,Va., made public a letter from RFC Chair¬ man Jesse Jones saying that both President Roosevelt and he favored expansion of the corporation's credit facilities.
Glass made the announcement as sharp divergences of opinion among administration fiscal oflRcials threatened delay.
According to Informed sources, the Treasury and the RFC are aligned with those holding the view that existing lending agencies should be expanded to extend whatever assistance Is necessary, and that creation of a separate system for industrial credit would only place the government In greater compe¬ tlon with private banks.
Twn Agencies Opposed Opposed to that view. It waa aald, are the Securities and Exchange Commission and the Federal Re¬ serve Board. The latter were said to believe that extension of aid could be facilitated through estab¬ lishment of Intermediate credit banks and moderate liberalization of existing flotations.
The Glass bill would authorize the RFC to make loans to, or buy the securities of, "any business en¬ terprise" which RFC directors re¬ gard as snund. The bill would re¬ move existing restrictions on ma¬ turities and no loan limit would be specified. It also would restore to the RFC the right to make self- liquidating loans to states, munici¬ palities and other political aubdl- vlslons.
'Must Become German City'
.... 'This Has Nothing
to Do with Hatred'
CATHOLICS WARNED
The Thrill of Truth
Kingston Police Oust Punchboards
Burgess Lewis S. Reese of Kingston kept members of thn Kingston police force busy la.st night notifying business places that punch boards or slot ma¬ chines would not be allowed in that community.
A'fter the warning the bur¬ gess Indicated arrests would follow.
read a great series of eatest of all detective United   States   Secret
Start today to tales of the g bureaus — the Service.
Each week a complete stor>' \vill be given —the tnithful record of a closed case.
Today it is the "Lustig Case"—that of a bogus count who "made" countei-feit money hut never passed a dollar of it himself. . . . Read:
"Secrets of the Secret Service"
On Page B-12
Vienna,   March    26    (UP)—Jews "must get  out"  of Austria,  not as | a measure of hatred "but of neces- j sity,"   Field   Marshall   Herman   N. Wilhelm  Goering  declared   tonight in a speech which opened the cam- i paign   fnr   the   April   plebiscite   to i ratify   the  union   of   Austria  and , Germany. i
Speaking at a mass meeting. , Goering snid that he had Instructed authorities to "undertake the necessary steps legally and quietly to bring Jewish firms into Aryan hands."
Not "Hatred" "Vienna is a city in which 300,- 000 Jews live and cannot be called German." he said. "But Vienna must become a German city. It has to fulfill tasks In cultural and economic fields. In neither can Jews be employed.
"Jews must know that they must get out • • • this has nothing to do with hatred hut It is a necessity." He charged former C^hancellor Kurt Schuschnigg had double- crossed and lied to the Austrian people and added "if Schuschnigg said he was subjected to pressure, this Is untrue • • • when we aaw what a plebiscite fake he was planning, we took things Into our own  hands."
Goering did not amplify his ref¬ erence to Schuschnigg and the courts, but his words were gen¬ erally interpreted to mean thai the former chancellor will be prose¬ cuted. However the reference was too Indirect and too Indefinite to be certain.
To   End   rneTnplo>-ment Goering announced an  extension of the German four-year economic plan to Austria, foreseeing:
l._Total elimination of unem¬ ployment.
2,_An economic program where¬ by Austria's economic burden will be eased.
8.—Abolition of customs and tar¬ iffs as of today, enabling Austrian producers to sell freely in the Ger¬ man market.
4.—Construction of new airplane and munitions factories providing work for many thousands.
8.—Economic "rearmament" also necessitating the building of new factories.
6.—Exploitation and organization of  Austrian  water   power.
"Our air force is not only equal to that of others but we feel even superior," Goering said. "We want peace, but if we are called then the body of revenge will arise and (Continued on  Page A-10)
Psychiatric Clinic Rushed in Vienna
Vienna, March 26. (UP)—The Nazi advent of power In Aus¬ tria has been followed by an In¬ crease In customera at Vienna's psychiatric clinic, It was dis¬ closed   today.
Would-be auftides and similar cases are treated at the clinic before being sent to asylums or sufficiently cured to be return¬ ed  to their homes.
The normal daily average of 15 cases reached 20 to 30 dur¬ ing the first week of the Nazi regime and the total under treatment recently was over 300, compared to a normal number of slightly over 200. Most of the cases are Jews. A number are  Catholics.
SITDOWNS THREATEN FRENCH GOVERNMENT
r
Salute to F. D.
Is Cut $34.02
Wa.shlngton, March 26. (UP) —The War Department, alwaya ready to save a penny, disclosed tonight that the cost of a 21- gun salute to the President has been shaved from $62.37 to $28.35.
The economy was affected by cutting down the black powder content of the presidential aalute.
Paris, March 26. (UP)—Thirty thousand sitdown strikers held seven of the most Important plants In the Paris Industrial region to¬ night and prepared to "hole in" for the week-end. Preliminary negotl- atlone failed to settle the conflict, which threatens the Ufa of Laon Blum's government.
The strike Involved a total of 85,- 000 workers In the metal, automo¬ tive, aviation and motor Industries.
It was the more serious because it slowed down the government's rearmament program.
Efforts tn end the strikes were halted until Monday night, when union officials will hold a council of war.
Last Chance Fading Out as
France Follows Britain
In Non-intervention
HUGE AIR DEFENSE
PROGRAM FOR PARIS
Pal-Is, March 26 (UP)—With air assaults on Spanish cities fresh in mind, municipal authorities decided today on a $17,500,000 air defense program to protect the population of Paris from bombardment and gas attacks.
].—Purchase gaa maaks for the civil population.
2.—Speed up the work of perfect¬ ing air raid aheltera in the subway system.
3. —Improve underground shel¬ ters in public buildings and public placea throughout the city.
In addition, a sum which has not yet been fixed will be used to im¬ prove the highway system around Paris in order to facilitate the evacuation of the civil population in  war time.
Hendaye, Franco-Spanish, Fron¬ tier, March 26. (UPi—Nationalist forces cut through the crumbling Loyalist defenses along a 125-mile front tonight and reached a point less than 2S miles from the Medi¬ terranean in the maritime provinca of Castellon.
Troops under General Miguel Aranda crossed the Castellon fron¬ tier south of Alcaniz. They wert the first Nationalists to fight their way into a coastal province in tha present drive, which may prove tha last great offensive of the 20 months old Spanish civil war. Severing Line to Madrid Unless Aranda'a troops can ba thrown back, the vital communica¬ tions and last highway connecting Barcelona with Madrid will ba severed. And it was Indicated to¬ night that they could not be halted, for the Loyalists were retreating rapidly Into the San Marcos Moun¬ tains.
Nationalists claimed that tha Loyalists, including international brigades, were falling baek in great haste.
Another point of the vast front broke southeast of Caspe, where the Nationalists crossed the Guada- lope river in a drive toward Gandesa. Nationalists claimed that the Loyalists lines were wavering and breaking at many points along the long Aragon front.
From Huesca in the north, the Nationalist lines extended south¬ west in a spearhead pointing toward the Mediterranean coast.
Pounding with artillery and air¬ planes, motorized units and mora than 2.50,000 infantry. General Francisco Franco's forces wera engaged in a final effort to crush Loyalist resistance and end tha war.
The most Important of these may prove to be the drive south of Alcaniz toward Tortosa, In tha delta of the Ebro River. Tha Nationalists were less than tO milea from the Mediterranean in thla sector.
"Startling Developments" Expected A carefully worded dispatch from John Dcgandt, United Press cor¬ respondent at Nationalist head¬ quarters, said that "important operations have just started further south which may have startling developments  before long."
A second important operation was along the Saragossa-Lerida highway, which leads to Barcelona. Nationalist troops who crossed to the left bank of the Ebro hava now occupied about 400 squara miles of territory.
A third important wedge wai being driven down south from Huesca against Loyalist forces who retreated rapidly in a race against time, which was only partly suc¬ cessful when the Nationalists In * swift   da«h   reached   Sarinena.
Barcelona Admit*
Barcelona, March 26. Loyalist  government night that  severe
Losaea
(UP)—Tha
admitted   to-
losses  had been
suffered  along  the   enlire   Aragon front.
Government bombers and chaaara bombed and machine-gunned enemy troops on the road near Bukaraloa, In an air battle which followed. 18 Junker bimotors. two squadrona of Chasers and 30 Fiats engaged. (Continued on  Page A-10)
Deadliest Warplanes Ever Devised Built in U, S, for Russian Armies
Farmlngdale, N. T., March 28. (UP)—The Soviet government ac¬ cepted for delivery today two air¬ planes, one of which waa described as the deadliest aerial weapon ever devised.
The planes, built by the Seversky Aircraft Corporation for $780,000, will be crated and shipped to Russia where Soviet technicians will   reproduce   them.    They   were
A
J approval   by   •  repreaentai
¦tei*(b^«oi^-i^-i:is%jSTi>. <',,¦¦ .•'"!*¦¦
v|d
1
the  Soviet  government  after cessful  test  flights.
The plane, said to ba the world'a most formidable, is a "convoy fighter" designed to carry seven machine guns and 61^ pounds of aerial   demolition   bombs.
The other, an amphibian fighter, has a cruising range of 3,000 mile* with full military load and th« range can be increased to 8,000 miles by using tha winga for fuel
ofi tank!.