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The Week in
A RESUME OF GOVERN MEN MENTAL
HAPPENINGS IN i
THE NATIONAL CAPITAL
Washington, D. C.?Most of the
talking done in Washington from
now on, for a while, wili be on Capltoi
Hill, rattier than at the other end
of Pennsylvania Avenue, where th?
Executive departments are hunched
There are two reasons for this. One
is that the members of the new Congress
have a lot thev want to sav
ami the other is that since Louis
Howe, the President's real right-hand
man. has recovered his health sufficiently
to take an active part In affairs.
word has gone out to Administration
officials not to talk so much,
without first finding out whether the
White House approves what they
want to say.
How far that goes for Donald Richberg
is another guess. Mr. Richberg,
who at the moment is at least the
President's left-hand man, spoke out
in meeting the other day. warning
Genera! Johnson not to say nasty
things about him and threatening to
sue for libel the publishers of the General's
new book and the magazine
which intends to publish some chapter
of it, if they print some of the
aspersions upon Richberg which are
said to be contained in the General's
manuscript. Folks who have been saying
that there was really no ill-feeling
between the General and his successor
at the head of NRA have discovered
that they were wrong. This
is only the first of the intra-Administration
personal hatreds and jealousies
to break out into the open.
There are plenty of others, and some
may be aired soon.
Carter Glass Speaks Up
Up on Capitol Hill some of the
most vigorous language is coming
from Senator Carter Glass of Virginia.
The Senator is the foremost
banking authority in Congress. Away
back in the Wilson Administration
he framed the Federal Reserve Act
a u-.i *. n ...?U xyM |n_? .?
*??m puoiivu ?v w..v .u -< p,
scrapper and is always on the watch
for anything he dislikes in the banking
policy of the Administration
Senator Gla?3 is out with a denunciation
of the order of the Federa!
i if serve and Federal Deposit Insurance
Corporation limiting interest
banks may pay to 2 >4 per cent. He
asked the Administration officials
where they found any law for that,
and they admitted there wasn't any
that would apply to State banks not
members of the Federal Reserve. The
fiery little Senator from Virginia also
took a crack at the recommendation
of the so-called Viner committee's
recommendation that the law authorizing
Federal Reserve to make direct
leans to industry should be repealed.
"Give it a chance," snys Senator
Glass, in substance.
The Viner report, named for Prolessor
Jacob Viner of the University
of Chicago, covers a lot more territory
than that, however, and is regarded
here as furnishing full confirmation
of the situation, first pointed
out in these dispatches, whereby the
, banks are hamstrung by confusing
orders from different authorities and
subjected to examinations by several
fsets of examiners, each with a different
point of view. That situation has
been to some extent corrected, but
the Viner committee went out into
the field and talked direct to business
men. and is convinced that an inter.
mediate credit system for industry is
essential, whether administered by
the RFC or the Federal Reserve.
Davis Questions laws
The statement by John W. Davis,
who was once the Democratic party's
candidate for President, that much of
the New Deal legislation is illegal
and unconstitutional, is expected to
put backbone into some of the Conservative
Democrats in Congress.
Some 200 cases in which the constitutionality
of the New Deal is at issue
are now before the courts.
The recent conference of business
leaders, in which the National Association
of Manufacturers and the
Chamber of Commerce of the United
States agreed on what they would
like to see done in Die way of amending
the New Deal, may have results.
At '.east, it answers the challenge
of the Administration spokesmen:
"Well, what do you propose?" The
business leaders agreed that direct
cash relief was preferable to "work
relief." In that they are in opposition
to the Administration. They want reform
measures subordinated to recov.
ery measures. They would like to see
the nation go very slowly In experimenting
with unemployment and old
age insurance. But on the whole their
attitude is far more "socially-minded"
than the critics of business expected
Those who think they know the
President's mind report that he if
not out to attack private power companies.
but only the financial system
of holding companies which hai
resulted, he believes, in too high prices
for electric current.
On Federal Money
The latest estimate is that aboul
25.000.000 persons are getting Fed
eral money, in one way or another
Six and a half million are on salaries
or other direct payments; 400,000 ar<
directly employed on public works am
about 2,000,000 indirectly getting pub
lie works funds. About 700,000 ar<
on regular Federal payrolls, whili
750,000 single persons and 4,500,00*
families are on Federal relief. How t<
switch this load to states and muni
(Continued on Page 8)
i 1 ppK
VOLUME XLVI. N'UMBER 27
J AMES A. HARTNESST
A BRIEF ILLNESS!
Henri Attack Proves Fuinl to Former j
Secretary of State. Democratic I
Leader for a Half-Century anil For- 1
iner Newspa|>er Publisher. Funeral
Services Conducted at SlntcHVlllc
I Thursday Afternoon.
Statesville, N. C. Mr. James A. j
Hartness passed away Christmas |
night at It:00 o'clock, et the B. F.
lying Hospital his death resulting
front heart trouble.
Mr. Hartness had been suffering
for a few days with what he thought
was indigestion, and he was at a local
drug store to get something to
relieve indigestion when he suffered
a severe stroke at aboult 11 o'clock
in the morning and was removed to I
the hospital in an ambulance. He and | '
members of the family were under j :
the impression that it was an attack I _
of acute indigestion, but his trouble
at tile hospital was at once diagnosed V
as a heart attack. Death came about ?
12 horns later. He was VI years of
From his early youth Mr Hartness
was actively interested in tile aftairs
of the Democratic party and its can- B
didates. He served his native county j
as a clerk of the Superior Court for
three decades, beginning in 1898 and
continuing until his appointment as
Secretary of State of North Carolina
in 1928. He was chairman of Uie
Democratic Executive Committee of w
Iredell County for about 30 years, be- B
ginning in 189D, and during hi3 lead- rc
ership the Democratic majority in hiE la
native county went over 3,000 votes. ci
In 1893 he edited the Statcsville w
Mascot, a Democratic newspaper, and ct
he was personally interested in that
paper and its successors for a num- pi
ber of years. til
bed Fight Against I'opuUsts rc
He led the fight in 1896 to redeem N
Iredell County from the Populists and ni
Republicans and was elected a mem- Bi
ber of the 1897 Legislature, where he
was author of the Feliow Servant fc
Act, giving right of 3ult to employees p,
for damages or. account of negligence ),<
of transportation companies. c(
In 1898 he vigorously participated Lh
in the campaign for the restoration oi
of whit? supremacy and he was ac- pi
tive in all succeeding campaigns. B
Mr. Hartness resigned his position
as clerk of Superior Court of Iredell ct
in 1928 to accept the appointment as js
Secretary of State to fill out the un- tl:
expired term of W. N. Everett. At
me staie election on isovemoer otn, .
192S, Mr. Hartness was elected Secre- I
tary of State for the full term and
served four years during the administration
of Governor O. Max Gardner.
On retiring from his State duties
he returned to Statesville to practice
law. At the time of his death he was H
a member of the law firm of Grier, i
Joynes and Hartness.
Surviving are the widow by a second
marriage, eight sons and daughters.
Funeral services were held Thursday
afternoon at 3:30 from the First w
Presbyterian Church, of which Mr. ti
Hartness was a member. Interment ai
was in Oakwood Cemetery. ir
Oo?t^Kton to looUc
Statement Ere Long pi
Representative R. t>. Doughton, \\
dean of the North Carolina delega- d:
tion in Congress, is said to be con- T
sidering issuing a statement soon con- fi
I firming or dispelling rumors that he 1 oi
I mnv run for Governor 1 f I
In North Wilkesboro on business ti
last Thursday Mr. Doughton indicated
he would have a definite state- 0
ment with regard to reports that he c<
may run for Governor "within a reascnable
"I am receiving letters from all _
over the State urging my candidacy,"
Doughton said informally to friends, j
These come from all groups of peo- '
pie?farmers, laborers and business
men. Should I make the race for Governor,
however, I would not be the
candidate for any single group but
the candidate of the people as a
' Bill Watts Dies From
Injuries in Car Crash
1 William Watts, wcli known Lenoir
young man who has many friends in
' this city, died last Wednesday from
1 injuries received in an automobile ac
cident near Valmead, the previous
A crushed chest, suffered when the
t car pinned him underneath, was said
to have been the direct cause of his
5 Funeral services were held in Le5
noir Thursday. Surviving is the wid'
ow, the iormei Miss Malta Nelson,
" his father and a number of brothers
2 and sisters.
2 Deceased was a son of Rev. J. W.
J Watts and was well known in Boone
> where he and Mrs. Watts had often
- visited at the home of Mr. and Mrs.
ependent Weekly Newsj
BOCWE, WATAUGA CO
James A Hartness, former Secretary
of State, whose death Jast
week in Statcsville was ascribed to
t heart attack.
VADE BROWN HEAD
OF PEOPLES BANK
oone Attorney Named President in
directors Meeting Thursday. Mc- |
Nell Elected Vice-President.
Brinkley Remains Cashier.
Wade E. Brown, Boone attorney,
as named president of the Peoples)
aim aim iiuaa ijUllipmiy oy L(1C Ul-I
:ctors of the institution in session
st Thursday. C. D. McNeil of Ruth wood
is the new vice-president,
hue (iurney D. Brinkley remains as
The new board of directors, chosen
eviously at a meeting in which more
inn 80 per cent of the stock wua
^presented, is as follows: C. D. Mceil.
Wade Brown, Mrs. Sarah Wagir,
Charles Zimmerman, Stuart
arnes, and R. ti. Vanncy.
Mr. John B. Allen, special examiner
>r the State Banking Department,
-eslded over tile gathering of stockjliiera
and outlined the improved
mdition of the bank, which opened
ic same day under lhmnto.n of
gantsation submitted *W*'arid ap-oved
by the State Commissioner of
Indications are that with improved
Elections on notes the Peoples Bank
facing a brightened prospect for
le year 1935.
dlldays Mai kod by Quietude in the
Hity, and News of Usual Disturbances
Is lacking. Mild Temper
ntures Prevailed in Watauga.
Christmas, the season of the year
hich, inappropriately enough, used
> be associated with drunken orgies
re fisticuffs, was an event this year
i Boone of such marked quietude as
> blend with the sacred significance
f the festive occasion.
Citizens of the town for the most
art 3tayed by their respective firedes
or mingled in friendly fashion
rith neighbors, and practically no
isorders were reported in the town,
he explosion of innumerable small
recrackers along- the streets was the
niy thing to distinguish the day from
re usual Sabbath. Mild temperaires
likewise, reports coming from all
vcr the county indicate improved
onduct among the celebrants, and
' any arrests were made in this secion,
the charge was not serious.
By i. C. B. EHRINGHAOS
Raleigh, N. C.?I am glad to
avail myself of the courtesy extended
by the press to relay a message
of greetings and good-will for
the New Year to all the people of
We have ever reason to face the
future with a high degree of hope
for we have come through perhaps
the most difficult time of a generation
to the point where we can bo
certain of an appreciable progress
and an increased confidence. Two
years ago the fiscal situation of the
State presented not only a problem
difficult of solution but a danger
to the stability of governmental operation.
Today, as a result of sound fiscal
policies, the State's financial
house is in order and we have been
able to market its obligations at the
most favorable Interest rate obtained
in the history of the commonwealth.
Not only this, but in the se/c
>aper?Established in the
UNTY, NORTH CAROl-JNA, THURSD
5 PER CENT GAIN IN
BUSINESS OF U. S.1
Noted Economist Experts Even Larger
Increases In Second Half of the
New Year. "Green Light" Forecast
for 1930. Holiday Trade Largest in
Years in Many Cities. Commodity
Trices Expected to Rise.
From his winter home at Babson j
Bark. Fla., Roper W. Babson. Inter-1
nationally famous economist, Sunday
Issued his forecast for the year of
1935 in which he predicted a 5 per
cent gain in the nation's business duTinfr
the first six months. The high
spots of the encouraging review follow:
"General business will snow a moderate
gain in the first 3ix months of
1935 over the first half of 1934. I am
more bullish on the second half of
the year, providing the capital goods
industries, represented by building,
show some life during the early
months of 1935. The latter industry
is the big 'if' in 1935. Sharply ri3ing
building totals will set the 'green
light" for prosperity by 1926:
"Business has been slowly creeping
upward since September and is today!
9 per cent above last December's level.
This rising trend should carry into
early 1935. A year ago I predicted a
10 per cent gain for 1934. The increase
was actually 8 per cent. Now
1 predict a 5 per cent improvement
for the early months of 1935 over the
first half of 1934. If building and alj
lied industries make headway, the
I second half should run 12 to 20 per
cent above the latter part of 1934. On
(Continued on Page 8)
Iran t one
W/VT VAI v^uovo m. iuoi u
In Recorders Court
Seven casea were hearU in Recorders
Court Tuesday as follows:
Dewey Eggera, Fred Musgrove, .
public drunkenness, not guilty.
Royce Collins, selling coal without
license, to buy necessary permit ana
Chester Carroll, violation prohibition
laws, guilty; assessed with costs
and six-months sentence suspender!.
, Chester Carroll, driving drunk; not
Fred Dickens, manufacturing liquor,
guilty; six-months sentence suspended
on payment of cost.
Wallace Greene, violation prohibition
laws, three months sentence suspended
on payment" of cost.
H. A. Hagaman, charged with assault
on a female, was dismissed
when the prosecutrix withdrew indictment
and paid cost.
oy and Willard Norris, manufacturing
liquor, not guilty.
i SCHOOL CHILDREN TREATED !
The children of the Boone School
had opportunity to see for themselves
Friday before Christmas whether or
not there was really a Santa Claus,
as a jolly old gentleman, attired in
scarlet pased out fruits and candies
to 437 students. The gifts were sent
by the Hodges Tire Company of this
city, and more than twenty-five bushels
cf oranges were disposed of that
day and Saturday in addition to a
!&rg[6 niignfUy nf nowjy
CHRONOLOGY OF YEAR
On page three today The Democrat
again presents its readers a concise
page showing what happened during
the year 1934 both at home and
abroad. This resume of practically
every principal human activity during
a twelve-month is a syndicated
feature, which the publishers take
pride in presenting. Many families
would believe the page worth while
as a clipping or as a scrap book
piece, so that it might be used for
reference during future years.
curity of a sound credit we can face
the present challenge for increased
social service with confidence and
the capacity to make something in
the way of reasonable response.
Our agricultural activity is increasingly
prosperous, our industrial
life is attaining something
more of soundness and stability, the
relations between various groups of
our citizens are improved and altogether
the future is brighter and
the prospect more pleasing than at
any time in the last two years.
I congratulate the citizenship on
the eve of the New Year. T commend
it for its patriotism, its sacrifice
and its constructive effort,
and finally I bid it look forward to
the tomorrow- which we face with
the calm confidence and determination
which has characterized its
progress in the past and the confident
belief that these will achieve
the success and progress which our
hearts envision for the commonwealth.
Year Eighteen Eighty-E
AT. JANUARY 3. 1935
|' uiuav a
L. A. Greene, cliriM-tor of ih*3 Wa
tauga County Bank for many yours,
was elected to the presidency of the
institution last Thursday.
Huitdred-Gailen Copper Plant Captured
on Beaver Dam Saturday. Officers
from Tennessee Assist. One
Man Taken in Raid.
The capture of a hundred-gallon
copper distillery in Beaver Dam
Township last Saturday by Sheriff
Howell and his deputies marked the
C * ? _? A.
IUI i.^-UIUU TlllVlb w - ~
the hands of the law during the twoyear
administration of Sheriff Howell
Two Tennessee officers assisted the
local constabulary. One man was taken,
Fred Dickens, charged with manufacturing,
and two hundred gallons
of beer and a small amount of low
wine was destroyed.
Sheriff Howell's record for the destruction
of stills includes the nrrpst
of twenty-five men charged with their
After Saturday's raid Sheriff Howel!
arrested and brought to jail Fate
Dickens, whovivas wanted by the Tennessee
officers. Sheriff J. B. Morjey
lock Dickens to Mountain City jail
Called to West Virginia
Sheriff Howell was called to Willlamston.
VV. Va., on Christmas Day
to get one C. D. Pendleton, wanted in
this county for fraud and check flashing.
RAPK TOP AMPIN
kri I' ll iu viturti <ju
Christmas Holidays Are Over for Appalachian
and Regular Winter Term
Begins 011 Wednesday. Nine Hundred
Sixty-eight Now Enrolled.
The holidays are over in so far as
students of Appalachian College are
concerned And tndMV iWednesdavl
the collegians settle down to their
regular classroom work, after having
been on holiday leave since December
21. Very few of the students remained
In the city during Christmas.
The last report of the registrar indicated
that there are now 968 students
in the college, which sets an alltime
record for this season of the
year. While the overwhelming portion
of the campus population comes from
North Carolina, twelve other states
are represented and one students is
enrolled from the continent of Asia.
Junior Order Will
Hold Zone Meeting
On Tuesday night, January Sth, the
recording and financial secretaries o<
all the councils in Districts 1, 2 and
3, Jr. O. U. A. M., will meet in the
hall of French Broad Couneill No. 91
at Asheville for a dinner conference.
Dinner wiil be served in the hall
promptly at 7 o'clock followed immediately
by the conference.
Representatives of the national and
State councils will be present and s
general discussion o* the work of th<
order and especially the duties of th<
secretaries wiil be entered into.
District No. 1 ip composed of Clay
Cherokee, Graham, Jackson and Ma
con counties and has 12 councils witl
a membership of 531. Dr. W. P. Mc
Guire is district deputy.
District No. 2 is composed of Bun
combe, Haywood, Henderson, Madi
son. Polk and Transvlvania countie
with 21 councils and 1800 member*
B. H. Harris of Biltmore is distric
District No. 3 is composed of Av
ery, Mitchell and Watauga counties
with 6 councils and 316 members
Clyde R. Greene of Boone is distric
The Caldwell County curb marke
at Lenoir has sold $9,003.98 worth c
produce for the farmers and fan
women of the county this year.
? ? - $1.50
!L , GREENE NEW
! B SK PRESIDENT;
! (|FFEY CASHIER
I)r. 1 . Dougherty Quits us Heart of
U S ga Bunk, while G. 1*. Hagam;
jj ;m Named Active Vice-Pr>fdileo.i
v Directorate. More Thau a
Hundred Attend Meeting. Allen
L. A. Greene, one of the county's
mcst successful and oldest active business
men, was named president of
the Watauga County Bank last
Thursday by the directors, when Dr.
B. B. Dougherty, who has headed the
institution for many years, found it
impossible to continue his active financial
connections due to his cverincrcasing
responsibilities as presi
(lent of the State Teachers College
G. P. Hagaman, cashier of the bank
practically since its formation, was
named active vice-president, while
Paul A. Coffey was elected cashier.
Mr. W. W. Mast is again chairman of
the executive committee.
A resolution calling for the payment
of an additional ten per cent to
depositors of record prior to the
banking holiday was passed by the
board, this making a total of forty
per certt which has been released to
preferred stockholders, together with
interest in full.
The executive session of the directors
followed closely the stockholders
meeting at which they were elected.
More titan one hundred stockholders
were present and the vast majority
of the voting stock was accounted
for in the meeting. The session
was opened by President Dougherty,
who in turn asked Mr. W. ri.
Gragg to preside. Attorney Baxter
M. Llnney briefly staled that the
stockholders were gathered for the
purpose of electing directors, a trustee
for the fractional shares of stock,
and for the purpose of transacting
such other business as might appear
Mr. tdnney was elected trustee for
the fractional shares of slock, and the
following were named to constitute
a board of directors: P. G. Carroll,
B. B Dougherty, S. E. Gragg, L. A.
Greene, G. P. Hagaman, Dr. R. H.
Hardin, Baxter M. ILInney, V/, W.
Masf. J. M. May, R. C. Rivers Jr.,
Mrs T .una P. Robblns, W. F. Winkler
Alien Gives Figures
Mr. John E. Allien, special examiner
for the State Banking Department.
who ha3 worked incessantly toward
the reorganization of the bank,
spoke encouragingly of the condition
of the institution and stated that deposits
were on record at this time of
$196,955.76; that the bank held cash,
government and other bonds to the
amount of $177,242.62, and tha t loans
and discuunts totalled $233,519.54. Mr.
1 Allen insisted that it was m03t important
for all notes to be kept in
current condition. He suggested that
a special man be employed for a
short time to look after renewals. Inasmuch
as the Stale Banking Department
dots not longer tolerate notes
i runr-ing indefinitely without payment
: or renewal, wnen the directors met
Mr. Allen ar.d Commissioner of Banks
Gurney P. Hood were given a vote of
thanks for their fruitful efforts in
helping to bring the bank into reor;
Railway Head Speaks
Mr. Hammond Prosser, active head
, of the East Tennessee and Western
. North Carolina Railroad Company.
. a heavy stockholder, was present and
, took occasion to felicitate the offi,
cials for the manner in which they
! had brought about the safe and sound
i reorganization of the bank.
The meeting was carried out in perfect
harmony and those in close touch
with the local banking situation predicted
for the Watauga County Bank
r a bright future.
Mrs. Jasper Moore spent last week
I with heir husband at the Care-Jean
. Inn. Mr. Moore is a member of the
' Government Acquisition Survey party
I ON ADVERTISING
; Roger Eabson, internationally
known statistician and economist,
says cf newspaper advertising:
"Many concerns curtailed their
i advertising during the depression
to an extent that was 'penny wise
and pound foolish.' In continuing
this policy they are even more
short sighted. . . . Ceitainly the
3 first step toward increased sales
I. lies In getting yonr products bet
fore the public. . . . The newspaper
is better equipped in many ways
(o aid In this campaign for it is
1, the eyes and ears of the conimunt.
ity. . . . Hence, I want to make a
t |K' nuiibl op|)6Ai loi EVEHIVG*TC
TO GET BEHIND HIS HOME
PAPER AND BOOST IT. In this
it way you contribute strongly to
it tnither recovery of business in
n your community.