The Week in \V asliiiigton 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Viner committee's recommendation that the law authorizing Federal Reserve to make direct leans to industry should be repealed.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 WA1 An Ind VOLUME XLVI. N'UMBER 27 J AMES A. HARTNESST PASSES FOLLOWING! 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 age. 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 t< Oo?t^Kton to looUc Statement Ere Long pi si 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 time." ti "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 whole. I . ' 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 Sunday. A crushed chest, suffered when the t car pinned him underneath, was said to have been the direct cause of his demise. 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. William Winkler. "AUG ependent Weekly Newsj BOCWE, WATAUGA CO Hartness Passes MgBf JL 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 ishler. 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 anks. Indications are that with improved Elections on notes the Peoples Bank facing a brightened prospect for le year 1935. MRISTMAS WAS ORDERLY EVENT; 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 prevailed. 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. Greetings Ex Governor t 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 North Carolina. 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 BABSON PREDICTS 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. i 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) i : 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 pay cost. Chester Carroll, violation prohibition laws, guilty; assessed with costs and six-months sentence suspender!. , Chester Carroll, driving drunk; not guilty. 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. tended By o Carolinians 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 R=?r?l^ R |' 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. SHERIFF CAPTURES 43RD DISTILLERY 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 operation. 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 Monday. 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. STUDENTSFILE 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 deputy. 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 deputy. 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 PER YiuAR !L , GREENE NEW ! B SK PRESIDENT; ! (|FFEY CASHIER JS 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 Presents Figures. 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 here. 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. Stockholders Meeting 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 i DroDor. 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; ganization. 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 located here. L j ROGER BABSON 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.

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