Indianapolis Times, Indianapolis, Marion County, 30 March 1938 — Page 1
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HOME
FINAL
ANS FOR LITTL
USINESSES ASKE GROSS TAX ARGUE
}
NATIONAL AFFAIRS
RFC G JARANTEE of small Business: loans proposed. HOOSI ZR LABOR leaders threaten WPA strike. BILLIC N-DOLLAR. holding company registers. LONG:- RANGE RELIEF planning proposed.
REOR(ANIZATION BILL
reported to House.
TVA PR0BE resolution expected to pass House today. HUGE NAVAL supply bill passed by Senate.
SEC Suggests Plan To Aid Small Business By ROBERT W. HORTON i Tires Special Writer 'WASHIN STON March 30. — A
Pion pl-n to provide adequate _ working coital for small business
" has been presented to President Roosevelt y Securities and Exchange Cormission officials, it was learned tod:y. iThe plan, which’ involves the guaranteein: of bank loans to small business bv the Reconstruction Finance Cor». was said to have the enthusiastic support of representative bankers in New York and other cities as wel! as the indorsement of the type of businessman most likely to benefit-di: ectly. It has bcon discussed privately with bankin: and:business interests
. by SEC Commissioner John Ww.
Hanes, who s more intimately familiar with {1e immediate problems of business ¢ 1d banking than other members of “he Commission,
No N:w Law Needed
‘The SEC »>roposal would involve |"
no new legis ation, as it would utilize. existing rowers of the RFC. All that would b- necessary, it was said, would be libe ralization of current RFC loan policy. ‘That is considered the principal obstacle to thz plan, which its sponsors believe would cost poe Gavern-.
ment almost nothing. | Chairman: Jesse Jones was
RFC 2aid-So.be.60 ta the lig a an collateral ea a the moray i
needs. the plan, on. the other hand, argue that the RFC
| policy is in some cases even more | stringent than conventional bank-
ing end that it thereby defeats the purrose of aiding business. Product: ‘to’ Be Security The new proposal, in which the President is aid to be interested, would enable ‘he RFC to guarantee bank loans to small business up to 90 per cent of the value of finished
¥ products and ¢0 per cent on a basis
of the produciion-cost value of the merchandise. The individual loan would be lim-
| ited to 25 per cent of the borrowers’
average sales over a 12-month period. This, it was explained, would provide the small manufacturer
| with funds for at least 30 to 60 days
to build-up in entories. As ‘matters stand now, according to Commission °:r Hanes, banks cannot risk lendirz when manufactur-
| ers’ sales are “off. Consequently,
shutdowns threaten even though the
. plant is prepa:=d to go ahead with inventory pro luction. ment results; the expenses of shut-
Unemploy-
ting down are incurred; the downward spiral is .ccelerated. - Mr. Hanes insists that guaranteed such circumstances would provide substantial incentive for sales camvyaigns by manufacturers, as well as minimizing the tendency of bu vers to stand by and wait for dis ress. prices to be
* reached.
~The bill offer=d this week by Sen- |
- ator Glass (D. Va.) at the request
of Mr. Jones, to provide “somewhat broader powers in financing business and industry,” was said to hold slight hope of :id to small business, since presumably the same regulations as to collateral would continue.
Long-Range . Relief
Planning ‘Is Urged :
WASHINGTON March 30 (U. P.). —Secretary of ‘he Treasury Henry Morgenthau J:.
employment’ problems,
An authoritat ve source said that
Secretary Morgeathau believes there | . is need of a Government body—he || suggested National Human . Re- || Sources Board £5 a name—to plan {|
soon will offer || * President Roose elt a plan for longrange treatmen' of relief and un- | it was
TU. S. Watching
Indiana Tax Case WASHINGTON, March 30 (U. PJ). —The Supreme Court will hear the argument of tax officials today to extend a state Government's: taxing power, already broadened by four Siipreme Court decisions this year. The new litigation involves the constitutionality of Indiana’s 1933 gross income tax law. The State seeks to collect levies on all incomes including. that derived by. Indiana firms from sales made outside the state and income derived from interest on tax-exempt municipal obligations. The J. D. Adams Manufacturing Co., Indianapolis, charges that partof the law is Aunconstitutional—that it constitutes a direct burden on interstate commerce and violates the State’s contractual obligation not to tax municipal securities. May Reduce Exemptions State officials contend that a statute enacted before income taxes were considered exempts only the principal ‘of municipal obligations from taxation, and does not have any effect on levies against interest on bonds. The: case will be watched with great interest by Federal and State tax experts who long have sought to find a method of taxing so-called “tax-exempt” obligations, Last Octobér the Court upheld the ‘application of Iowa’s “personal net income tax” of 1934 to municipal obligations . which stated on their face that Shey were exempt from taxation.
Matson Rrepresents Appellant Ra ick E. Matson of Matson, *& "Clifford, “Indianrn 2 is Arguing the case for the Adams firm. First Assistant Attorney General A. J. Stevenson represents the State. There has been no attempt by the Federal Government to tax in-
small | terest from tax-exempt obligations
of states or their subdivisions, and vice-versa, ‘nor - has- the’. Federal Government ‘sought to-tax interest from its own tax-exempt ohligations. However, it was regarded as entirely possible that steps might be taken in any or all of these three directions if the court should uphold the Indiana tax.
Hoosier Labor Leaders Protest WPA Projects
By DANIEL M. KIDNEY Times Staff Writer
WASHINGTON, March ‘30—Having served notice on Indiana Con-
.gressmen that they will resort to
strikes ang political reprisals to halt WPA projects in the public building field, 15 Indiana labor union leaders today conferred with David K. Niles, acting WPA Administrator, regarding the matter. The megting at WPA headquarters was arrahged by Senator Minton (D. Ind.), who joined with the Congressmen yesterday in listening to their complaints. All urged that regular PWA contracts, providing for the prevailing wage ‘scale, be-used on all public buildings and that WPA be confined to “nonessential works.” “We intend to fight before: weé permit our skilled craftsmen to gc, on relief rolls at a top wage of $90 (Turn to Page Three)
MANY HURT IN TORNADO COLUMBUS, Kas., March 30 (U. P)—A tornado struck Columbus today, injuring many persons. First reports said all hospitals were filled with injured.
3 MSG | MEXICOREPAY | OWNERS OF OIL
Hull Recognizes Legal Right| Of Neighbor Nation’s - Expropriation.
AWAITING NEXT. MOVE
To Convoke Special | Congress Session.
WASHINGTON. March 30 (U.P.). —Secretary of State Cordell Hull today formally recognized Mexico's legal right to expropriate foreign held property,” but declared such action must be accompanied by fair and equitable compensation. In a statement at his press conference, Secretary Hull said this Government's representations to Mexico had been on the question of proper payment. He indicated that no pressure was being placed upon the Mexican Government to return the expropriated properties. Estimates of America’s stake in the 450-million-dollar properties expropriated by the Mexican Government vary. However, the Brookings Institution in a survey published last month estimated that American oil investments in Mexico are valued at 206 million dollars. Secretary Hull expressed the “very earnest hope” that, for the benefit of the friendly relations between the two Governments, “a fair and equitable solution of the problem may soon be found by the Mexican Government.” His statement was interpreted to mean that the next move definitely is up to the Mexican Government.
Daniels’ Protest Under Consideration MEXICO CITY, March 30 (U. PJ).
—President Lazaro Cardenas conferred with Government leaders. to-
made by the United States against Mexic0’s seizure of $400,000,000 in
properties. { ‘The Pérmanent Committee of Congress was called to meet today to convoke an urgent special session of Congress. to consider the oil sit-
uation.” The flotation of an internal loan to indemnify foreign interests for oil properties, and to consider lower tariff schedules. i int U. S. Makes Protest The American protest, made to Foreign : Minister Eduardo Hay by Ambassador Josephus Daniels was described. as a diplomatic *“demarche” or “step.” Ambassador Daniels made a statement in writing. : “I have just finished talking with Mr. Hull” he said. “I went today and talked with General Hay about the situation that prevails and the seriousness of it; and about Mr. Hull's deep feeling of wishing the matter adjusted in a way that is consistent with the friendship of the two couritries and the rights that attach to both nations. “I expect to see General Hay again. I expect to talk with him and I expect to talk with Mr. Hull again. There is nothing final. There -is. a. sincere desire to find a solution that is perfectly just and in accord h the . policies - of the United States. That is all I can say at this time.” It was\indicated that the United States would seek a friendly solution of the controversy.
British. Protest To Mexico Likely
LONDON, March 30 (U. P.).~The British Government, which is in
closest contact with the United States regarding the expropriation of foreign oil property in Mexico, is likely to dispatch a note of protest shortly to the Mexican Government,
it was learned authoritatively today.
Cardenas Calls Committee
day on the strong representations|
American and © other foreign oll
Six Die in
Flori in of Lockjaw Soon After Treatment for Cancer
RLANDO, Fla, March 30 w. P.)~Dr. “HUA Day, Orange County Medical Association president,’ today ‘ordered 'an ‘investigation of deaths of six persons. who died of lockjaw 24 hours after undergoing bacterio-filtrate treatments for cancer, . Thirteen qther persons, who also underwent the treatments, were ordered under strict’ medical observation. A 14th was ‘removed to a hospital today with symptoms of lockjaw. *
“I have reported.the cases to. the, Dr. Day said. “The victims hadall't have ordered a chemical and bacteriological .analysis. of the filtrate used.” ]
merican. Medical Association,” ".syinptoms ‘of lockjaw. “We
One physician was treating’ all the: cancer patients | ‘involved. His name was withheld. Dr. Ray said that the: treatment had been. given to some of the patients over a two-year period. Justice of the Peace BE. E. Duckworth, who also is coroner, said it was feared the filtrate might have betome mixed with ‘ngrelienis of
an anti-tetanus preparation.
U. S. Orders Immediate Inquiry And Seizure of Fatal Filtrate
ASHINGTON, March. 30 (U. P).—The Federal Food and Drug WW acmmistration today ordered an investigator to go immediately to Orlando, Fla. to investigate deaths of six persons after treatments for cancer. Montee O. Rentz, an Administration inspector, was orde to leave Jacksonville, Fla., immediately for Orlando. id Administration also dispatched an agent to the Canadian point of manufacture of the filtrate reportedly used. : “We will follow the same procedure in this case as we did several months ago when a large. number of people died from the use of elixir of sulfanilamide,” Dr. P. B. Dunbar, assistant administrator, said. “We will drop everything else if necessary to confiscate the filtrate
being used at Orlando.”
He said that avaliable supplies will be Seizeg as soon as they can
be located.
CHICAGO, March 30 (U. P)—Dr. Morris Fishbein, Aptioricart Medical Association Journal editor, said today that deaths at Orlando,” Fla., followed use of a so-called “cancer cure” against which the asso= ciation warned ey more than a year ago.
City Drenched, Further Rains Are Predicted
TEMPERATURES
eee 59 10 a. m.... 62 ees 62 11 a. m.... 61° .... 63 12 (Noon). 61 9am... 62 1p m.,. 6
More showers and thunderstorms were predicted for this afternoon and tonight by the Weather Bureau as the city was drenched during a storm which began shortly before 9 a. ni. The Bureau’ said it would be slightly colder tonight and colder tomorrow with pardly : | cloudy weather.
More than 60° “North Side yest] ‘dents
plained to the Street Commissioner’s office t sewers overflowed “and basements were ed during today’s downpour. : Commissioner Eisenhut reported that the heavy rainfall overtaxed capacity of the sewers. He’ said City employees were at work clearing sewer entrances. A resolution is before the City Council which would authorize a $225,000 bond issue to finance a system of storm sewers on the North Side.
RECOMMENDS STUTZ INSOLVENCY HEARING
Special Master in Chancery Opposes New Deadline.
« Albert Ward, special master in chancery, today recommended a hearing on insolvency of the Stutz Motor Car Co. before Federal Judge Robert C. Baltzell. He made his recommendation in a 224-page report ‘filed ‘in Federal Court. He also asked rejection of an amended. reorganization plan filed Nov. 3, 1937, and opposed extension of the March 25, 1938, deadline for filing other amended plans.
The report ended a series of pro-
ceedings begun in; April, 1937, in which a three-member creditors’ committee attempted reorganization
of the company under Section 77-B
of the Federal Bankruptcy Act. ; Committee members are Otto J. Feucht, Indianapolis, and Homer H. Davidson and W. B. Chase, Detroit. While repeated attempts have been made toward reorganization to avert liquidation, the committee has directed manufacture of Pac-Age
FIRE SUSPECT'S HEARING IS SET
Scheduled for April 15
Although Police Hint | His Release.
Cm ——
Police and fire officials today indicated they would release the only
suspect questioned in the alleged
incendiary blaze which early yesterday ‘swept three buildings at 1021, 1023 and 1025 Virginia Ave. and caused the death of one child and
injury to another. . Detectives Paul Taylor and ‘Donald Bushong said the “Suspect,
who had ‘been held ‘undér $10,000 bond on a vagrancy charge, denied setting the fire. They expressed belief he was not responsible. In Municipal Court. hearing for the suspect:was set fQr April, 15. Fire Chief Fred C. Kennedy earlier had expressed the opinion
that the fire was “touched off” in
the weatherboarding of a cleaning establishment at 1025. Fire officials said also. that some unburned * oil-soaked rags were found outside, State Fire Marshal Clem Smith said the cleaning establishment had been ted several months ago and that fluids kept there were not inflammable, -garments being sent to other places for cleaning. ‘The flames, Chief Kennedy said, roared upward between the walls and ate into the two-room, half story high apartment in which Mrs. Louise Bowden and. her seven children lived. Mildred -Bowden; 7, was burned fatally while her sister, Mary Belle, 8, was burned critically and’ was at City Hospital today. Blood donors are ready to offer aid if a second transfusion Reeessary to save her life. Mrs. Bowden, divorced, said she had been ‘employed at the cleaning establishment at various times during the last four years. Her dsughter Mildred was the second child she has lost in little
more than a year. A son was Ja-
tally hurt when knocked from bicycle by an automobile at Br pect and Hunter Sts. With the expected release of ‘the suspect, police, Prosecutor Herbert M. Spencer's deputies, fire department officials and - Coroner E. R. Wilson sought new clues in their
efforts to fix sespousiotlity for the
fire. |
Second-Class Matter
at pens ringiagapolts, - In
Bn WATCHMAN OUTSIDE CAFE
N. Pennsylvania St. Tavern Guardian ‘Fires Shot at Shadow on- Window.
2 HELD. IN: CORK: HOLDUP
Bandit Gets $354 at Grocery; Filling Station Man Thwarts Gunmen.
A suspected burglar was shot and killed by a North Side tavern watchman early today as police searched for bandits who obtained a total loot of $437 from grocery, filling station and drug store. Detectives, meanwhile, questioned two men held in connection with the $250 holdup of Ray Cork, proprietor of Sky Harbor, night club near Municipal Airport, Monday. The ‘slain man was identified
through. police photographs several hours later as John Crumes, 19. He was shot early today by Harry Guilford, 21, of 315 W. St. Clair St., watchman at a tavern at 1517 N. Pennsylvania St., operated by Otto and Emanuel Zendel. - Police said they held a warrant for Crumes’ arrest in connection with thefts of clothing from laundry trucks. He was convicted of petit larceny in January, 1937. “Twn off the lights and the radio and you might catch a burglar,” Otto Zendel told Mr. Guilford when he left the tavern about 2 a. m. Mr. Guilford was employed following a $500 burglary last December. Fires at Shadow
As he sat in the darkness at 5:20 a. m., Mr. Guilford heard a scraping noise and a shadow cast upon a real window, he told police. He fired one shot at the shadow and, when it disappeared,‘ran outside. He told police he found the body of a man, who apparently had run about €0 feet from the window before falling dead, shot through the chest. Police called by Mr. Guilford said they found -a knife on the window: ledge and indications that an at‘tempt had been made to remove the glass. The Penn Market, 1515 N. Pennsylvania St, adjoining the
tavern, was entered Sunday night
by & burglar who removed a win=
| dow glass and took $8.50.
A bandit this morning held up Louis Elkovits, 38, shortly after he ‘opened ‘his grocery at 1305 N. Capitol Ave. ‘The ‘bandit ordered a: cake of soap and then pulled a gun and commanded, “Hand me’ the money. Get it out of your’ pocket,” Mr. Elkovits- told police. In his excitement, Mr. Elkovits reached into a pocket containing $304, instead of another which contained $31, he said. ‘The gunman then rifled the cash register of $50 more and fled. Mr. Elkovits said ‘he chased the bandit one block west, where he met two radio Imen and told them of the holdup, but the bandit had
disappeared. State Policemen Ralph Metcalfe, Francis Riley and Clifford Hart ‘picked up the two suspects in the Cork case as they rode through the 500 block N. Illinois St., in an auto last night. One gave his address as 1 downtown hotel and the other said he was from Cleveland. Filling Station Robbed
Two men entered the filling statior. at 435 Kentucky Ave. last night, took the keys from the attendant, Joe Smock, 37; of 2117 S. Delaware St., robbed the cash draw=
er of $12 and, revealing an intimate
knowledge of the station, reached under a desk and seized $35 more. Jerome Schultz, 41, of 103 E. St. Clair St., owner of a drug store at St. Clair and Pennsylvania Sts., reported: that two armed men robbed him of $36. Reaching for his own pistol as two armed men entered his filling station at 4226 E. 10th St. Ernest Sharp, - 38, of 1801 Comar Ave., foiled an attempted holdup, the intruders fleeing, he told police.
and ‘prepare ‘economic and social Ee
field for a shoc:-absorbing cushion || in future depres;ions.
“The board would not he adminis-
trative but a pe: manent investigating and planning ‘body, operating || -in the human ficid in somewhat the |
the sphere of aw materials and | Ci
gther physical ¢ssets of the coun- ||
is year or $250,000,000 ad--
f »{ inds. -He is not ddir + the needy, they 28 that the. TreasHiad.3 mote 764
over City
EAGLE SCOUTS RUN CITY. AND STATE OFFICES FOR HOUR >,
‘Others who filled offices were:
cars. under special Court orders.
\ Thirteen Eagle Scouts today held City and State olfiées for an : owes: Boy Scout Court of Honor Committee, - Thomas Bair, (left) 124 ‘E.-33d St.; business with Mayor Boetoher,
master; Pilive Huston: ruc 16, Police Chief; Frank Leary. Troop, 6h, ¥ £ Mer : Liprarian; William E “Troop 80, Municipal - Judge;
reap. 50, € ity. George
. “ACTING GOVERNOR” DICTATES LETTER . . .
PRICE THREE CENTS
“
LAW FEDER
‘Reasonable Exercise
{
law’s enforcement.
-
TATE ‘GADGET JPHELD BY
L COURT
of Indiana’s Polite.
Powers,’ Rule 3 Judges in Dismissing: Windshield Tag Injunction Plea.
MAHOLM MAY PUSH FIGHT AT POLLS
17 of 58 Motorists Fined Total of $137 for Traffic Vioaltions; Local Girl, 5, Is Struck Down by Auto. A three-judge “Federal Court today upheld Indiana’s
Windshield Title Holder Law by denying Attorney T. Ernest Maholm’s petition for a temporary injunction against the
In Municipal Court, Judge Charles J. Karabell fined 17 erring motorists $137 after police arrested 58 drivers on
NEW ELECTION RULING DEFINED
Second-Grade Cities Lose Council Minority Represen“tation, Jackson Says.
The guarantee of minority representation on city councils of second, third, fourth and fifth class cities has been removed, Attorney General Omer Stokes Jackson held in an
opinion issued today. | This ruling, made at the request of the Indiana Board of Election Commissioners, defined the 1935 amendment to the act governing procedure in electing councilmen. Heretofore, cities in these classes have been divided into districts. One
large. 3 Under terms of the 1933 act, each political party could nominate only |as many men as there were council ‘districts.
second class might have a oly council of nine members. Three of these would be members-at-large and the other six would be members chosen from districts. Since each political party, under the 1933 act,
men, in this example, the minority party was guaranteed three seats. The Attornéy General's opinion said the 1935 amendment authorized each ‘party to nominate as many men as there were: council offices to fill. Previously, in all of these /classes of cities, elections have been on a district and at-large basis, Candidates in third, fourth a and fifth class cities still will file f cific districts, but all of the il be elected at large, the opinion said. The old basis of designating some councilmen from districts and some at-large will be continued in cities of the second class, according to the opinion. The ruling covers all Indiana
cities except Indianapolis, which is
designated as a first class city.
Childbirth Kills Soldier's Wife
CHICAGO, March 30 (U. P)—A U. S. Army sergeant who left Manila with his wife four mouths ago so/ their child could be porn in the United States arrived ‘here today aboard an airliner en route to Indianapolis with his motherless
| daughter.
Sergt. C. M. Kinsheloe said that
| less than 24 hours out of Manila his wife died after giving birth to the
bay, Hazel Karen. Mrs. Kinsheloe was ‘buried at sea,
‘lhe said, and he returned with the ‘| baby to Manila where he remained
until refently. Sergt. Kinsheloe sajd he was to
- {meet his sister, Mrs. W. D. Hogue,
lat Indianapolis and they were to
motor to her Marshall, Ill, home
| where Hazel Karen will ‘remain. : ‘while her father returns to Manila.
IT REQUEST TO EXTEND
BUS LINE DROPPED
A. People’s Motor Motor Coach Co.
petition to the Works Beard for ex- | tension of jhe Millersville bus line | as a substitute for the proposed . ‘abaridonment .of ‘the Keystone Ave.
Withdrawal of the {etition was
| requested by the residents in the | communities affected by the pro-
] change. _ C. Titus Everett, attorney for the: ‘Bel-Rose Civic League, said the bus
| company had suggested a feeder bus| {to replace the Millersville bus. (A
the proposed
DO a eing 3 er line has been signed by more |
councilman was elected from each | district and one or more, depending. upon size of the city, Was. elected at |,
Thus, for example, a city of the’
could nominate only a total of six
InRacetoU. S.1,
® traffic violation charges.
Anna Belle Matlock, 5, of 1132 S. Senate Ave., was = taken to City Hospital today / | after being struck by an auto- / | mobile driven by Aaron Hurty/ 25, of Greenwood, at Sena
Ave. and W. Morris St. | The Title Holder Law dec on, read by District Judge’ Rol t C. Baltzell in the absence of U.'8. Cir~ cuit Court of Appeals Judge Will H. Sparks and District Judge Phillip Sullivan, said, in part: “We believe it is a reasonable ex= ercise of the police powers of the State and therefore deny a temporary injunction. “As to the wisdom of the Legisla« ture, it is not for the Court to dee cide. It is presumed’ that the Legis lature canvassed the needs for highway regulations. . ;, It is not for the Court to decide on a State act unless it destroys Jeoperty or is manie festly unjust.”
Transterred to U. 8. Court.”
The suit had charged that the law ted --the - “due process” clause. of the United ‘States Constitution's 14th. Amendment, that it made duplication of auto keys easy, obstructed vision of motorists and is an undue exercise of police powers. It originally was filed in Marion County Superior Court and was transferred to Federal Court by Special Judge Harry IL. Gause on motion of the State. / Following the Court's decision, Mr, Maholm said he would “carry ‘the fight to the people” by filing « his candidacy for State Representative. He is a Republican. Patrick Smith deputy attorney general, who argued the case for the State, did not comment on the decision. Four alleged drunken drivers were among the motorists arrested last night. They were to appear in Municipal Court this afternoon. . John Weaver, 1106 Gale St., was fined $15 on a speeding charge after police said he was arrested while driving a traetor truck 46 miles an hour on E. Michigan St. Another fine of $15 and costs on a reckless driving charge was suspended and judgment was withheld -on his failure to carry a driver's license. The alleged drunken drivers were: Charles Daniels, 53, of 1828 Ro velt Ave.; Iva Fuller, 27, of 939 Wade St.; Jack Loveless, 31, of 1319 N. Illinois St., and Walter Lineberry, 29, of 825 Eugene St.
LOST DRIVERS SAFE; SEARCHER IS LOST,
P.) —Twenty-five motorists rested here .today after being stranded for 40- hours at Wolf Creek Pass in the Southern Colorado mountains. Searching parties were organized to hint for George Willis of Buckeye, Ariz, who started over the pass on foot in an attempt to reach the stranded motorists.
TONSILITIS ATTACKS 500 ON ONE WARSHIP
HONOLULU, T. H., March 30 (U. P.).—An outbreak of tonsilitis af-
fecting 500° men aboard the U. S.
aircraft carrier Lexington today forced the vessel to%withdraw temporarily from the war games in the Pacific Ocean. . 7
5 LOST IN PLANE CRASH’ HONOLULU, T. H., March 30. (0, P.) —A Navy ‘bomber engagedl in maneuvers and manned by a crew of seven fell ‘into the ocean 100 yards - offshore near Kaena Point today. Five men were missing. Two men
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