Oldest Newspaper in Alaska. Member of The Assoeiated Press
DEVOTED TO THE BUILDING OF A BETTER NOME AND THE SECOND DIVISION.
NOME IS THE STRATEGIC WORLD FLIGHT AIR BASE—ESPECIALLY ADAPTED FOR COMMERCIAL AND MILITARY AVIATION
THE NOME DAILY NUGGET
VOL. 36. Number 119 NOME, ALASKA, MONDAY, MAY 20, 1935 Per Copy Ten Cents
Steamer Denali Wrecked Is Total Loss
BONUS QUESTION STILL HOT IN WASHINGTON
Congress Passes $100,000 Bonding Issue City of Nome
Defeat Of Bonus
Is Mathematical
Certainty Is Said
Speaking Of Giving President
Choice of Three Ways to
Pay The Bonus Now
(By The Associated Press')
WASHINGTON, May 20—Certain
administration leaders in congress
predicted that the bonus issue will
be resurrected in a swift, surprising
fashion, after the defeat of the Pat
man bill.
Defeat of this measure is called
a mathematical certainty. Foes of
it claimed forty or forty-one votes
in the senate to sustain the presi
dential veto expected early this
week.
One administration chief who was
represented as thinking it would be
good politics for the bonus to be
paid this year, made another poll
of his own and reported that seven
ty two senators would support a
plan to push through a bonus bill
in the form of a rider on another
measure giving the president the
choice of three ways of paying the
bonus—by issuing currency, borrow
ing, or taking money out of the pub
lic works relief fund.
President to Read
Veto To Congress
Breaks Precedent
President Upsets Precedent
And Will Read Veto To
Congress This Week
(By The Associated Press)
WASHINGTON, May 20 — Some
administration leaders have express
ed the belief that the president will
set forth his views on currency infla
tion at the same time that he reads
his veto of the bonus bill this week.
President Roosevelt shattered an
other precedent when he let it be
known that he intends to read his
veto of the bonus bill to congress.
One objection raised against the
new currency proposed in the bon
us bill, in administration quarters
has been that the value of the cur
rency inflation is questionable.
Just what language the president
will choose to deal with the new
money aspect of the bonus issue, is
a question of much interest in the
capital.
It was said that the president stat
ed he hoped with all his heart that
the veto would be sustained. This
statement seemed to create an ap
pearance of gloom among the back- '
ers of the Patman measure. Some
of them acknowledged privately that
they had insufficient votes to over
ride the veto.
Body Of Missing
Girl Discovered
Under 3 Feet Dirt
Eight-Year-Old Girl Missing
Since Friday Found Dead
Buried Under Earth
(By The Associated Press)
NEW YORK, May 20—Eight-year
old Shirley Evans, who has been
missing from her home since Friday
night, was found dead a short dis
tance from her home this morning.
The body was in a building buried
under three or four feet of earth.
| It had not been decided yet whether
she was slain or killed in an earth
slide.
Storms, Tornados
Do Two Million
Dollars Damages
Death and Destruction Follow
In Path of Floods and Tor
nados In Southwest
(By The Associated Press)
OKLAHOMA, May 20—Three hun
dred families were ordered from
theiir homes as a sixteen foot wall
of water was reported to be sweep
ing toward the city.
(By The Associated Press)
DALLAS, May 20—A path of death
and destruction was left by floods
and tornadoes which swept across
parts of Texas and Oklahoma over
the weekend.
Thirteen are dead, several miss
i ing, and scores .are reported to be
injured, as floods and storms caused
damage estimated to be more than
two million dollars.
Tells Four Houses
Being Built Fur
Cumpany Families
J. D. Harlan, General Manager
of the Hammon Consolidated Gold
Fields who arrived several days ago,
in an interview, described the four
buildings which are now under con
struction just North of the main
company office building located on
Fourth Avenue.
They are to be of two.story con
struction and will be resided in by
employees of the company—one fam
ily to each house.
The buildings will be heated by
General Electric system similar to
that in use by the Nevada Hall, and
for which Larry Galvin is acting as
Nome agent.
It is understood that some of those
employees and their families who
( Continued On Page Four )
STEAMER DENALI SINKS
NO LIVES LOST-AND
NO CARGO SALVAGED
Steamer Hits Reef Breaks In Two And The
Main Half Sinks Deep Water-All Safe
(By The Associated Press)
KETCHIKAN, May 20th—The steamer Denali of the
Alaska Steamship Company struck a reef off Zayas Island
early Sunday morning and ripped a hole from the bow to
amidships, in her bottom.
The crew and passengers were taken off by the Coast
Guard Cutter Cyane. The Denali later broke in two, the
main portion sinking in deep water, leaving her forepeak on
the reef. The passengers were cannery workers. The ves
sel was off the regular lanes on a more direct route for Met
lakatla, to be her first port of call. She carried a valuable
cargo of canning and mining machinery. Nothing was sal
vaged.
SEATTLE' May 20, A half-million dollar loss including
her cargo resulted when the steamship Denali went to the
bottom of the Pacific. Except for a shattered forepeak,
which hung on the reef off Zayas Island, British Columbia,
she is a total loss.
Her seven passengers, eight officers, twenty-three mem
bers of the crew and four stowaways were taken off by the
cutter Cyane which rushed to the scene from Ketchikan yes
terday. With fire eating in her holds after the crash, the
vessel broke in two.
Company officials here said that the vessel was valued
at between two and three hundred thousand dollars, and
that the cargo including a hundred tons of dynamite and
much cannery and mining machinery, was worth as much
more.
The first news of the vessel’s plight was flashed to the
Army Signal Corps radio station at Ketchikan in an SOS,
at 3:13 A. M., Sunday^ and in less than an hour the Cyane
was speeding through heavy weather and thick fog to her
rescue. By 5:05 reports to the coast guard here said the
vessel was listing and the seas were pounding her savagely.
Two life boats were lowered taking the passengers and stow
aways, and some of the crew ashore.
Captain T. E. Healy, Frank Hoseth, radio operator, and
other officers stayed with the vessel.
At 6:15 A.M. the radio was dead. Two hours later the
Cyane appeared, and just then the Denali began to buckle.
Three officers were taken off, and Captain Healy, Chief Mate
W. E. Cleasby and Third Mate J. Lawton were left aboard.
Having picked up the lifeboats and survivors ashore,
the cutter returned to the Denali and stood by until noon.
At about that time all hope was given up for her, and the
three officers went aboard the Cyane.
At 2:44 the Denali began listing heavily as the wand
and sea increased. Fire broke out in the engine room and
two hours later she broke in two, the main part of the hull
slipping into deep water.
The four stowaways were jailed at Ketchikan on vag
rancy charges, as soon as the Cutter Cayne docked at Ket
chikan. They were W. Rester, L. Beaton, B. Cory, F. Hedges
the last two being from Seattle.
The names of the passengers aboard the Denali were
William Laigo and M. Crisotoms bound for Tyee; F. C. Yuel
and Carl Haasl for Ketchikan; Harry L. West, A1 Brown and
Carl D. West for Juneau. The Cayne returned to the wreck
and radioed that nothing was worth salvaging. Part of the
ship is still fast on the rocks. Two battered trucks were seen
on the foredeck. The amount of dynamite aboard the ves
sel was thirty tons, instead of a hundred.
Some Encouraging
News Of Strike
Lumber Industry
Strikes, Rumors of Strikes
Have Pacific Northwest
Worried During May
(Rv The Associated Press)
SEATTLE, May 20—Strikes, ru
mors of strikes, and strike breaking
worried the Pacific Northwest over
the week-end as all of the Union
Oil tankers' crews went on strike.in
cluding some seamen.
A coal strike was called in British
Columbia. Federal conciliators in
the United States declared that the
government was helpless for the time
being. Strikes spread from Alaska
to California.
However, encouraging news came
from Gray's Harbor, as agreements
with unions were reached by a nutn
ber of small mills and plywood
plants, for seventy-five cents an
hour wages and a thirty hour week,
which forecast the return to work
of about three hundred men in that
region.
Treasury Is On
Another Borrow
ing Program Now
(Bv The Associated Press')
WASHINGTON, May 20 — The
diminishing cash in the box prompt
ed a sharp boost in the Treasury’s
borrowing program for an indefin
ite period.
The treasury each week will ask
money market for one hundred mil
lion dollars; twenty-five million in
new money and seventy-five mil
lion in refunding maturities, which
will double the weekly borrowings.
Signal Corps Chief
To Boost Better
Sen ice in Alaska
(By The Associated Press)
SEATTLE May 20 — Major Gen
eral James B. Allison, Chief of the
Army Signal Corps returned to Seat
tie from Juneau, today, where he
had gone on an inspection trip.
He left almost immediately for
Washington, D. C. to boost for the
betterment of the Alaska Telegraph
System. He was accompanied on his
northern trip by Col. George E.
Kumpe of Seattle.
Changes of regular advertisements
will be accepted up to 4 PM of the
day preceding insertion. New ad
vertisements will be accepted for
insertion in the paper up to 1:30
PM of the day of insertion—The
Nome Daily Nugget.
$100,000 BOND BILL
(By The Associated Press)
WASHINGTON. May 20.
—The House Bill to authorize
the City of Nome to issue
bonds in the amount of one
hundred thousand dollars to
finance public works- was
passed by the senate today
and sent to the White House.
One Killed Two
Hurt Plane Crash
City Of Cordova
Three Young People in Air
plane Crash—One Dead
Other Two Are Injured
(By The Associated Press)
CORDOVA, May 20—Miss Mavis
Fields, aged 19, is dead: William
Bunson, 32, an airplane mechanic
and student pilot is in the hospital;
and Stanley Seltrenich is suffering
from bruises as a result of an early
morning airplane accident.
The small cabin plane in which
Bunson was taking the others for a
ride, plunged into Lake Eyak at
4:50 A. M. Sunday, soon after it had
taken off. Fishermen rescued Bun
son and Seltrenich, but the girl was
drowned when she attempted to
swim ashore, about a hundred yards
away. The plane was the property
of T. M. Donohue a local attorney.
Carlson In Jail
For Assault With
W
Godhard Carlson of Nome is held
in the federal jail here today await
ing arraignment tomorrow at 2 p.m.
after he is alleged to have shot at
and attacked S. Sahlin butcher at
Lehmann's store Sunday morning in
a fracas which took place at the
home of Carlson across from the
Hospital on second avenue West.
The affair is supposed to have oc
curred when Saihlin went to Carlson
's home to try and get possession
of a revolver said to have been
flourished at Carlson's wife who
told her sister who is married to
Sahlin about it.
In attempting to persuade Carl
son to give him the gun, an alter
cation took place and Carlson is al_
leged to have hit Sahlin with a blunt
edged axe several times, the blows
falling on his arms as he raised
them to protect himself from being
hit over the head.
(Continued on Face Four)