Wilkes-Barre Sunday Independent

              REPORT SOVIETS DOWN-BASQUE CAPITAL LOST
. A Paper
f     For The Home
SUNDAY INDEPENDENT
LEASED WIRE TELEGRAPH REPORT TO 3 A. M. SUNDAY
FIFTY-TWO PAGES
Th«   Only    Snndsy    Newipspet Corerlnu   the   Wroming   Vslley
WILKES-BARRE, PA., SUNDAY, JUNE 20, 1937
Kntered   at   Wllkei-Barre,   P«„ As   Serond   Clssa   Mail   Matter
Weather
Sunday: Partly cloudy, •wirinep, Monday: Showers,
PRICE TEN CENTS
STATE NATIONAL GUARD ORDERED IN READINESS
FORCED LANDING FEARED
To Show Up TaxEvasionBy jj [ J [ [ $ Use Of Foreign Insurance
Five More 'Prominent Americans' To Be Presented
By Treasury; All Have Since Offered To
Settle In Full, With Interest
U. S. Signal Corps Doubts
Canadian   Reports   Of
Safe Landing There
WERE EXPECTED AT NOON
Had Been Making Speed; Sir
Hubert Wilkins Points
To Useless Miles
Edmonton, Alberta, June 20. (Sunday) (L'Pl—The Canadian National Telegraph early today report<-d that the three Ru»- alnn flirrK attempting a «,ZM mile non-fttop fllKlit from ,'\los- cou to San FrancUco, had made a forced landinK on the Quern Charlotte Island, It wan announced that none of the crew had been injured.
(Captain P, C, Edward* ot the I. S, Signal t;orps at Seattle,, tVaahlngton, early to¬ day told thc Luaa^.EMilihiH ., he had no report of the Soviet airmen being forced down and that he believed the report by the Canadian Xatlonal Tele¬ graph was not true. Captain Edward* attributed the Can¬ adian report to an error In tranalation ol a code meisage received from thc plane,)
Sped Over Canada
San Francisco, June 19. (UP)— The single-motored raoneplane carrying three Russian (blVi on a non-stop flight from Moscow to San Francisco via the North Pole droned southward across Canada tonight.
The most dangerous part of th journey was behind, Soviet off! cials gathered here as a reception committee, were highly hopeful that the three "air heroes of the Soviet" would land here before noon  Sunday,
At 3:40 p. m. PST (T:40 p, m. EDT) the Soviet consulate an¬ nounced receipt of a message from the United States Army Signal Corps that the gray and red plane had passed into Alberta province. An hour earlier the Fort Smith, NWT, radio station of the Royal Canadian Signal Corps received a message from the plane that it was touth of Fort Simpson, That mes- ¦¦ge from the plane was received at Fort Smith at 2:34 p, m, PST and said:
"Flying 4,400 meters second to fourth Mackenzie south Fort Simp- ion."
Radio operators at Edmondton, Alta., who relayed the message, could not explain what the words "second to fourth" meant.
With Its load lightened, thc fliers apparently had speeded up the. plane, as rapid progress had been made during the interim between this message and the previous one at 1:03 p, m. PST.
A message from the fliers' single- motored, low-wing plane to the Royal Canadian Signal Corps at Fort Smith in the northwest terri¬ tory said tersely at 12:25 p, m. PST (4:25 p, m, EDT):
"Latitude 64, longitude 124, Every¬ thing okay."
Ahead  of the  fliers were frozen (Continued  on Page A-10)
, Washington, June 19, (UP) — I Treasury officials said tonight that the names of "five prominent Americans" wiil be made public Tuesday at thc congres.sional in¬ quiry into u.se of foreign insurance companies lo avoid or reduce fed¬ eral  income   tax  payments.
Treasury experts worked to com¬ plete detailed data showing opera¬ tion of the second of the eight method.s which Secretary of Treas¬ ury Henry Morgenthau jr., charged are used by American taxpayers to take advantage of legal loopholes in the revenue laws.
Administration oflicials hope Con¬ gress will enact legislation at this se.s3ion to ciose the avenues through which taxpayers have been able to avoid full payment of fed¬ eral levies and yet remain within the  letter  of  the  law,
Law'i Weakness Shown The first phase of the investiga¬ tion was completed Friday when Elmer Irey, chief of the intelligence unit of the Internal Revenue Bur¬ eau, and Under.iecretary of Treas¬ ury Roswell Mpgiil named seven persons who formed foreign per¬ sonal holding companies with the result that their income tax pay¬ ments were reduced or eliminated, in only one of these caaes did Treasury experts contend that the law had been violated. They were presented to show the need for legislation to correct weakness in the  law.
The foreign insurance company method   of   tax   avoidance,   which
will be considered when the joint House-Senate committee reconven¬ es Tuesday, was accentuated by Morgenthau in a recent letter to President  Roosevelt.
The letter, which formed thc basis for the President's request that Congress make an investiga¬ tion, asserted that Treasury experts had found, for example, that two New York insurance agents had organized insurance firms in the Bahama Islands "with a view to enabling taxpayers to secure" tax reductions,
Morgenthau said that "five prom¬ inent Americans" had used this method and thus "sou,, t to evade nearly .^550,000 in income taxes be¬ tween   1932  and  1936."
All Anxious To Pay I'p
All involved taxpayers, he said have since offered to "pny the full amount of taxes evaded, plus in¬ terest.'
The insurance rompany method, according to Magill, has been used through a shuttle system of fin- fiuvial loans, premiums and policy 'iMnsactions as a method for re¬ ducing the tax payments of vari¬ ous individuals. Its act\ial legality was not immediately questioned, but Morgenthau described it as a "newly-invented type of fraud."
Later the committee-Is fXlKCiPS to get from the Treasury data on domestic personal holding compan¬ ies and formation of yacht and country estate incorporations which the Treasury claims in some in¬ stances have been used to reduce income taxes.
REPOSE PROPOSAL: SPANIARDS FIRED dOF VALLEY
Claim   New   Plan   Offers Lower Wages And No Uni¬ formity; Will Await Action
CLEANERS ACCEPT
Unanimous   acceptanc     of   con¬ tractual   terms  between  employees 1 •:ind   owners   of   local   cleaning  and dyeing   planls   and   rejection   of   a , counter     proposal     submitted     by j laundry   operators   developed   last I night   at   a   joint   meeting   of   500 workers  of both industries in The Manfield    on    South    Washington street.
Frank Vrataric of Luzerne, one of the organizers of the CIO branch here said that approximately 300 of those present were employed by cleaning and dyeing plants. They accepted wage te-m« and working conditions of an agreement re¬ cently negotiated with plant own¬ ers,
RefiiMe Counter Proposal He said the 200 laundry workers rejected the plant operators' coun¬ ter proposal because the wages set up were less than those contained in an original proposition and did not provide for any wage uni¬ formity. He said the workers are demanding a minimum of 35 cents (Continued on Page A-6)
Non-intervention Committppi'''**' ^^ "^ '^^'^ °^ dynamite,
l»UM   llliei VCIIIIUM  UUIIIIIIIlietJ      Troops continued to pour through
Hastily Assembles To Consider Possible Steps
NO REPRISALS
Police Get *Scarface* Madeline; 'Couldn 't Help Loving That Man *
New York, June 19, (UP)-Mad¬ eline Raymond—"Scarface" to cops —waa enroute back to a Massa- chutetta prison tonight becauae she "couldn't help loving that man,"
The 21-year-old brunette girl bandit who escaped down a rope ef knotted bedsheets from Fram- Ingham Reformatory was not over¬ ly worried, however,
"No jail can hold me," she said with a Dillinger sneer to Massa¬ chusetts detectives. "You'd better keep an eye on me,"
When Miss Raymond, called "Scarface" because of a birthmark on her forehead, was sentenced with another girl on May 19 in Boston, «he pleaded for mercy. She
said she was engaged to marry a young man who would probably die  if she  couldn't.
The judge wasn't touched, and when they led her away, she screamed:
"You're not going to keep me in that damned jail."
After her escape she went to Brooklyn and got a job as waitress. No one dreamed that she was the giri charged by Boston police with vamping men, going for automo¬ bile rides with them and then holding them up with a pistol.
But she couldn't forget "that man". She wrote a letter with a return address on it. She learned her mistake today when detecUvM walked into her room.
London, June Ifl. (UP)"The non¬ intervention committee tonight faced Its second major crisis in i two weeks as representatives of foijr powers met in an emergency session and received a report on the asserted attempt of a Spanish Loyalist submarine to tsrpcdo a German warship.
The German government, in a cortimunication which reported a Spanish submarine on June 15 had fired on the German Cruiser Leip¬ zig three times and missed, asked the committee to "undertake perti¬ nent  measures."
The complaint was made within a week after England and France persuaded Germany and Italy to return to the committee, from which they withdrew after thc bombing of the German battleship Deutschland and the shelling of Almeria by five German warships in reprisal. The terms of their re¬ turn included the promise of prompt action by non-intervention powers in event of further provo¬ cation,
Met Quickly Within a lew hours after the official German communique was received, spokesmen for England, France, Germany and Italy met. These were British Foreign Secre¬ tary Anthony Eden, French Am¬ bassador Charles Corbin, German Ambassador Joachim von Ribbcn- trop and Italian Ambassador Dino Grandi,
The meeting lasted exactly 80 minutes, during which the German delegate explained that the session had been called in accordance with the  June   12  agreement.
It was understood Germany's at¬ titude was not aggressive, and that "reprisals" were not suggested. The entire question was referred to thc four governments—England, Ger¬ many, France and Italy—and the sessions will bc resumed Monday.
If no decision is reached, it was understood Germany would be  re¬ lieved    of    further    obligations    to (Continued on Page A-6)
Bilbao, which collapsed with hardly a shot fired after a 81-day siege that was one of the cruellest strug¬ gles of the Spanish civil war.
At mid-afternoon General Jose Fidel Davila's two Rebel columns, converging on the city from the southeast and northeast, struck al¬ most  simultaneously.
Resistance   Disorganized
Retreating Basques and Astur¬ ians, backed against their last out¬ let of escape—the Nervion River estuary which leads to the sea— fired a few desultory shots from the "new quarter" but there was no  organized   resistance.
At 6 p. m. the Nationalist gov¬ ernment at Salamanca announced officially that Bilbao had been occupied.
Radio reports, flashed from Rebel stations throughout Spain, said the Nationalist armies had entered the old   quarter   at   3   nclock.
(Continued on Page A-6)
Baby Girl Is
*Lost In Mails'
Cincinnati, Ohio, June 19. (UP)—A bewildered, wide-cyKd two and a half year old girl was on her way back to her father in London, Ohio, tonight after being "lost in the mail" for two days.
Thc child, Dorothy May Al- ford, arrived in Cincinnati's bustling Union Terminal last night, alone and sobbing. At¬ tached lo her dreas was a tag marked "Chief of Police, At¬ lanta,  Ga."
Between sobs, she told Travel¬ ers Aid authorities she had been placed on the train yesterday by thc Madison county ,5heriff at London, where her father is held on a vagrancy charge.
She spent the night in the children's home. This morning, railroad authorities and the Travelers Aid wired to Atlanta, where her grandmother is sup¬ posed to live.
They were unable to locate her. They finally tagged her with a card reading "insufficient address" and "mailed" her back to   her   father.
Madame Secretary Ponders Future
CAPTURE BILDAO
Hardly A Shot Fired As 80- Day Siege Is Climaxed By Invaders' Victory
DEFENSE COLLAPSES    i
Ancient Basque City Taken: For First Time In 700   i Years By An Enemy
Biarritz, France, June 19, (UP) —Bilbao, the 700-year-old capital of the Ba.sque republic, was con¬ quered tonight and Spanish Rebel invaders, storming through the al¬ most deserted streets, pushed on after Basque defenders who were in headlong retreat to the sea- coast.
Less than twelve hours after his victorious army swept down from the Bogona hills into the narrow streets of the "Old Quarter," Gen¬ eral Francisco Franco was report¬ ed to have ordered his Nationali.'it troops to mass for an attack on Santander, the new Basque capital.
With the entire Basque army in retreat, it was believed Franco in¬ tended to take advantage of the confusion and try to deal a smash¬ ing blow that would wipe out gov¬ ernment resistance along the north¬ ern   seacoast,
Santander  Next
Reports reaching the border to¬ night said Franco's army would attack Santander on June 25, The artillery was ordered forward to¬ night, preparatory to pushing to¬ ward thc temporary capital, 50 miles  down  the  coast.
As the invaders swept through the ancient capital, retreating Basques left a wake of pillage and dynamite. The Saint Anton bridge was  blown  up just before  the  re-
SECRETARY OF LABOR PERKINS
With thc nation gripped by the most serious outbreak of strikes In
history,  a woman  is  at  the  heim.   Secretary  of Labor Misi;  Frances
Perkins here shows the strain of the pressing problems which face her.
She is shown at a recent conference.
¦ FARLEl TO EXPLl REFUSAL TO DELIVER MAIL
Sen. Bridges Will Summon Postmaster  General  Be¬ fore Senate Committee
1 RIOT DEATH AT YOUNGSTOWN AS
GRIEVANCES HEARD
Washington, June 19 (UP)—Sen, H, Styles Bridges, R., N, H., 4aid tonight he would seek to summon Postmaster-General James A. Far¬ ley before the Senate Posloffice Committee for questioning concern¬ ing his discretionary powers to suspend mail deliveries in the steel strike zone.
Bridges' announcement followed a" long committee session during which nearly a score of men and women appeared to make or deny, allegations of violations of Federal law in connection with the steel strike.
Twelve committee members were present when the session began. When it ended four and a half hours  later,  only  four remained.
Bridges, sponsor of a resolution to investigate alleged interference with mail deliveries into strike¬ bound steel plants, said he desired to question Farley with reference to the Postofflce Department's power to exercise discretion as to ti e type of mail which should or should not be delivered.
The committee heard postmas¬ ters of Warren, Niles and Youngs¬ town, O., deny existence of any "agreements" between themselves or their subordinates and repre¬ sentatives of striking CIO union¬ ists as to the type of mail that could bc delivered to picket-sur¬ rounded planls of the Republic Steti Corp, They also heard the postmaster of Massillon, O. state hc had such an agreement,
A worker in the Republic plant testified that he had been beaten by CIO members, who cut off his clothes, painted the word "Scab" on his underclothes, and made him parade through the streets in that condition.
Two women told of unsuccessful efforts to mail parcel post pack¬ ages to their husbands, isolated in the picketed plants.
Fred W. Justus, the Massillon postmaster who admitted having an agreement with union leaders, told the committee there had been "8    or    10"    instances    in    which
3 More Wounded At Republic
Gates; Fear Attack By
Non-Strikers Soon
CONFERENCES MONDAY
Youngstown, C, June 19— (UP)—Three squads of city police and sheriff's deputies were called out late tonight as general rioting broke out at an entrance of the Republic mill hern and one man was killed.
First reports said the fight¬ ing began when a squad of city polire attempted to disperse s group of pickets who were demonstrating at the plant en¬ trance.
The police squad called for assistance and the sheriff's men answered. Soon another squad  ot deputies  was  called.
A crowd estimated at S,000 quickly  gathered.
First reports said many shots were fired but the only known casualty was a youth who was wounded in the arm. The officers  used   tear  gas   freely.
Police quickly blocked roads leading to the scene of the dis¬ turbance.
Three persons later were taken to the city hospital emer¬ gency ward suffering from gunshot u6unds.
They were: Thomas Osaidly, I-uis Crarella and Catherine Wright,
FORCED CLOSING THREAT IS GIVEN CAMBRIA PLANT
Bethlehem Steel Officials Give No Answer
To Decree Of Governor Earle; Lewis
Calls Off March Of 40,000 Miners
With Martial Law Declared
SHIELDS SURRENDERS POLICE
strike  Suniinu'y
Johnstown, Pa,—The sched¬ uled march of 40,000 miners on the city for a mass meeting tomorrow was cancelled by John L. Lewis, CIO chieftain, easing tension in the Bethle¬ hem Steel strike area, Lewis' action was taken on request of Gov, George H, Earle, The governor declared modified martial law in Johnstown when Eugene G. Grace, Bethlehem president, refused to close the Cambria plant. He threatened to use the National Guard to foree Its closing,
Youngstown—One man waa killed and at least three were wounded when rioting broke out at gates  of Republic mill,
Cleveland—The Fed^al Steel Mediation Board announced that sepfirata conferences would be held Monday with CIO leaders and company offi¬ cials. No action by non-strikers was expected over the week¬ end,
Washington ~ White House Secretary Stephen T. Early said unofficially that P.resident Roosevelt waa unable to act on the requeat of Daniel J. Shields Johnstown mayor for interven¬ tion because state authorities had not requested such federal action. Following a union com¬ plaint that Republic Steel and Youngstown Sheet & Tube had supplies of weapons not regis¬ tered with the governmenl, the Treasury Department began an investigation of the charge.
Senator H. Styles Bridges, R., N. H., announced he would seek to have Postmaster-Gen¬ eral James A, Farley appear as a witness in the probe of charges that steel strikers have interfered with the mails.
Company Ordered Out
Harrisburg, June 20, (Sunday) (UP)—Early today Gov, George H. Earle ordered commanders of all National Guard units to instruct 20,000 guardsmen "lo be in readi¬ ness" for strike duty al Johnstown Officials of the Bethlehem Ste'', Corporation refused to say whether they would shut down the huge' town Cambria plants at Johnstown vol-1 }'*"' untarily,
Earle said thai if the corpora¬ tion officials did not promise to shut down he would order police and patrol forces lo do so.
If  the  martial   law  forces   close the  plant,  Earle said,  small  main¬ tenance   staffs   will   be   allowed   to j stay Inside, but production will be stopped, I    Afler    his    orders    to    National i Guard   commanders   to   be   ready, i Earle said that no National Guard units in th'*itatc will mobilize.
At 10:15 last night the governor said that Bethlehem Steel had two hours in which to evacuate its Cambria plant.
of Bethlehem Steel Corp., as k Sunday march of 40,000 coal mineri was cancelled in moves to keep the peace in this strike-torn city.
Colonel Augustine Janeway, in charge of 500 State Police and Highway Patrolmen sent here by, Gov. George H. Earle, ordered offl¬ cials of Bethlehem to evacuate im¬ mediately the Cambria plant, which normally employs 14,000 men.
Acting under the orders of Gov¬ ernor Earle who issued a modified martial law proclamation after Bethlehem had earlier refused to close its plant, police moved swiftly to empty the plant, disarm vigilantes and maintain order.
The evacuation order followed a two-hour conference among Colonel Janeway, C, R, Ellicott, general manager of the plant, Attorney- General Charles J. Margiotti, Major Lynn Adams af the State Police, and Sidney B. Evans, assistant to the general man.ige-
The announcement was made by John Sullivan, personal secretary and representative of governor.
The plant presumably will be evacuated after workers take care of such jobs as banking furnaces. Despite the week-old striltc called by the Committee for Industrial Organization in an effort to gain a union contract, the plant had been operating at a reported rate of 50 to 70 percent of normal. l<ewis Halts Miners
As State Police forces took over Johnslown under a martial law proclamation, John L. Lewis, CIO chairman, acceded to the plea of Governor Earle to "prevent pos¬ sible bloodshed" by cancelling the mass demonstration of 40,600 coal miners here Sunday afternoon. The demonstration was designed to pro¬ test Bethlehem's refusal to sign a union contract and to remonstrate against the activities of Mayor Deuiiel H, Shields in supporting "back-to-work" movements.
One of the first orders ot Colonel Janeway was to instruct Mayor Shields "to immediately dis¬ band and disarm all persons acting in the cap.icily of "igilanles, spe¬ cial oflficers or emergency officers."
Governor Earle late today wired Lewis:
"Martial  law  in  force  in Johns-
To preserve peace and pre-
possihle    bloodshed    in    this
tense situation, request you call off
miners'   assemblage   tomorrow   in
' Johnstown,    Please  wire  immedi-
Johnstown, Pa„ June 19. (UP) — State Police, acting under martial law orders, tonight ordered evacu¬ ation of the struck Cambria plant
ate answer,'
Lewis Calls Off Meeting
Lewis, in Washington, immedi¬ ately telegraphed district mine union officials:
"At the request of the Governor of Pennsylvania, I have agreed that the mass meeting planned to be held in Johnstown, Pennsyl¬ vania, tomorrow at 5 oclock be can¬ celled. Please make public an¬ nouncements to this effect and ad¬ vise all interested parties that this mecling will not be held. It is our purpose to co-operate fully with Governor Earle in his efforts to preserve  public  peace."
Grace Protests Closing
Eugene   G.   Grace,   president   Cft (Continued on Page A-10)
To .Meet .Mediators
Cleveland, June 19. (UP)—The Federal Steel Mediation Board an¬ nounced tonight that Committee For Industrial Organization leaders and high officials of four struck companies had agreed to meet— separately—on Monday in an effort to end the seven-stale steel strike,
CIO Chairman John L. Lewis, SWOC Chairman Philip Murray, President Eugene Grace of Bethle¬ hem Steel, Chairman Tom Girdler of Republic Steel, President Frank Purnell of Youngstown Sheet & Tube and management representa¬ tives, Wilfred Sykes of Inland Steel will participate in the conferences.
Chairman Charles  P. Taft  II  of
Intruders On Local Church Party Force Radio Call For Policemen
the new mediation board announced strlkv* had stopped mail carriers jthe   arrangements  after   a  day   of (Continued on Page A-6> (Ointinued on Page 10-A)
Police reinforcements were need¬ ed last night to quell a disturbance on a picnic excursion train ^return¬ ing members of four prominent churches to their homes in this cily and on the West Side. Two men, declared to be outsiders, were placed under arrest bul two others were reported to have escaped.
The men taken into custody gave their names as Mike Thomas and William Barno, both of Edwards¬ ville, They said they did not know the names of the two fugitives.
The men were arrested aboard a special D., L. & W. train return¬ ing from Croop's Glen. On the train were families who had spent t the da^ at an "old fashioned baa¬
ket picnic" sponsored by the Cen¬ tral M. E, church of Wilkes-Barre, the Forly Fort M. E. church the Forly Fort Presbyterian church and the Wyoming Avenue CThris- tian church.
After the special train left Hun¬ lock's Creek for Forty Fort, the four men are declared to have cre¬ ated a disturbance. Railroad police were unable to handle the trouble themselves and telegraphed ahead for assistance from Kingston po¬ lice. A radio car met the train at 7:20 oclock at the Kingston station where Thonjas and Barno were taken into custody. Their com¬ panions are believed to have leaped from the train as it pulled Into tha Klntston atatloo.