gpr
§ 1
if
Expect Loosened Credit
Trying to Satisfy Busi
ness
inflation Outlook
Liquidating Highways
The financial education of the
Administration appears to be pro
gressing nicely. Chairman Jesse
Jones of the Reconstruction Fi
nance Corporation, after "bawling
out” bankers on numerous oc
casions for not lending more freely,
has admitted publicly that the main
reason for restricted credits is "the
lack of demand for good loans,”
and that this is due to "uncertainty
on the part of both bankers and in
dustrialists that markets could be
found for the manufactured pro
t ducts to finance which the loans
If W'ere intended tr> he made.”
Mr. Jones spoke feelingly, after
trying to lend $300,000,000 to in
dustry under the authority granted
at the last sesfion of Congress to
the RFC, and finding himself un
able to put more than $10,000,000
out in good credits. And while
Mr. Jones did not say so to the
public, he expressed himself vigor
ously to the Secretary of the
| Treasury about the policj of the
banks to "bear down” on business
; men tvhc are trying to cary on
i and who have always been regarded
; as entitled to reasonable bank
; credits.
- .
The upshot of this situation was
the calling to Washington of the
» chief bank examiners from all over
' the country, for a conference in
which the Federal Reserve Board,
the Reconsctruction Finance Cor
poration and the Federal Deposit
Insurance Corporation took part
with the Treasury. The outcome
is expected to be a gener.J loosen
ing up of the restrictions which
have been placed on bank credits
by the Comptroller’s office. That
office has jurisdiction over only
National banks, but state banks
usually have to follow the prac
tices of the national banks in their
'' WfllflPC
Secretary Moregenthau is taking
;Aji active hand in trying to bring
about more effective cooperation
and bureaus of the Government.
There is reason, therefore, to ex
pect that bank credit will be easier
for sound business men.
Friends of the Administration are
beginning to be troubled about
what appears to be a growing hos
tility on the part of business men
and industrialists. The first inclina
tion when reports of dissatisfaction
began to pour in was to pooh-pooh
them as emanating from political
sources. Now Washington is be
coming convinced that the business
leaders are serious and is trying to
figure out what it can do to satisfy
them. The stumbling-block seems
to be the President himself, who is
reported by those extremely close to
him as being unable to understand
why business needs any more reas
surance.
Conservative members of the
Administration are now saying
rather openly that if business men
had been assured some* months ago
that there would be no further
changes in the rules under which
they are supposed to do business,
they would have ftegun to expand
their activities and by now real re
covery would have been under way.
(Continued on page four)
i; - . • * v • ■ • , ' ' J‘. , j. • M . v
The Carolina Watchman )
' _-■
FOUNDED 1832—103RD YEAR SALISBURY, FRIDAY MORNING, SEPTEMBER 21, 1934 VOL. 103 NO. 8 PRICE 5 CENTS
r
l I
____________V
Abandon Vote On New N. C. Constitution
Federal Law
In Dry States
Be Enforced
Beer Exceeding 3.2 Held
Illegal In North
Carolina
ASK RULING
Charles H. Robertson, collectoi
of internal revenue, has announcec
his intention of imposing the spe
cial excise tax of $1,000 on indivi
duals and firms selling beer witf
greater alcoholic corttent than th(
3.2 percentage specified by Nortl
Carolina law.
The federal revenue act of 192C
provides for levy of the excise ta>
in the case of each person carrying
on business of a brewer, distiller
wholesale liquor dealer, retail liquoi
dealer, wholesale dealer in malt
liquor and manufacturer of stills ir
states where such business is prohi
bited either by state or local law.
Although Collector Robertsor
not received an official ruling frorr
Dennis G. Brummitt state attorne>
general on the nuestion he srater
that he was relying upon a state
ment attributed by news dispatche:
to Mr. Brummitt to the effect thal
legal beer in this state has 3.2 pel
cen alcohol. This means that thi
collector’s office will impose the ex
cise tax on persons selling beer oi
greater alcoholic content.
Payment of the excise tax to thi
federal government does not exemp
the person paying the same fron
penalty or punishment at the hand
of the state government, it is spec!
fied by the revenue act, which alsc
stipulates that a person required t<
pay the excise tax is subject to $ 1,
000 fine for failure to pay the 6pe
cial tax before the violation is dis
covered.
The spirit of the federal law call:
for co-operation with state author!
ties in the enforcement of indivi
dual alcoholic control statutes
However, the collector of interna
revenue is concerned only with col
lection of the excise tax from thi
person violating a state law and ha:
nothing to do with enforcement oi
that law.
In North Carolina the situatior
with reference to state alcoholic
control laws seems to be similar tc
the situation in Georgia and Ala
bama where the collector had al
ready announced that they woulc
impose and collect the excise ta7
{Continued on page five)
Release Of Home Funds
Expected November First
1,000,000 Or More
Need In Tl
According to the plans and ex
pectations of the federal housing
administrator, James A. Moffett,
the releasing of funds for the con
struction of at least one million
new homes will begin by Novem
ber 1.
Organization work for the "1,
000,000 or more homes this coun
try actually needs,” Moffett said,
"is progressing with all the speed
consistent with safety and effi
ciency.
“In this plan for construction of
entirely new homes we are ven
turing into an unexplored financial
field,” he said. "Therefore, out
rules and regulations must be
drawn with great care and caution,
We expect to, be under way bj
November I.;
“In -Connection with our work 1
hare contacted the country’s in
Homes Is The Actua
lis Country
dustrial and business leaders—
utility and railroad executive*
manufacturers of all kinds of ma
terials and supplies, representative
of labor, the press and advertising
agencies—and I have yet to mee
one of them who does not feel th
most intense enthusiasm over th
enormous volume of potentia
business and employment that wil
be opened up when the administra
tion of all the provisions of the na
tional housing act is in full swing.
Concerning the home moderni
zation a«3 repair phase of the pro
gram, tRe administrator said mot
than 1,000 communities have se
up or are setting up committees t
direct the program locally. H
predicted thajt by Thinks givin
more than 5,000 municipalities wil
have established such committee!
_Battle Front Scenes in Great Textile Strike
WASHINGTON . . . Above is a photo of President Boosevelt’s Textile
Mediation Board at headquarters here in the effort to end the Cotton
Textile Strike. . . . Left to right, Marion Smith of Atlanta Ga., Chair
man John S. Winant of Vermont, and Raymond V. Ingersoll of New
York. Below; National Guardsmen employing tear gas to scatter strikers
at a textile mill at Greenville, S. O.
LINDBERGH
SUSPECT IS
ARRESTED
- !
Richard Hauptmann, Germar
alien, was arrested yesterday ir
’ New York, charged with participa
tion in the kidnaping and murdej
several years ago of the inf am
■ child of Col. and Mrs. Charles A
Lindbergh.
Police stated that Hauptmanr
was the man who received thi
$50,000 paid by Col. Lindbergh ir
a futile effort to recover his chijd
A total of $13,750 of market
I money was in the possession of
. Hauptmann when arrested. Tht
jmoney was in $10 and $20 bills.
Catawba Meets
Erskine Today
The debut of Gordan A. Kirk
land, new mentor at Catawba an<
[ Salisbury’s grand old man of foot
ball for the past five seasons, i
being watched with interes
through the entire state. Hi
. teams at Salisbury high rated witl
the best in the south, and is it am
’ wonder that people are wishing hin
5 a great year in college football?
, The Indians finished their thi'ri
’ week of pre-season training b;
3 polishing up their running attacl
' and perfecting a pass defense,
j The Catawba squad left her
j yesterday morning for Due West
S. C., where they open the se^so;
this afternoon with Coach Tocfd’
» Erskine Flying Fleet. According t
information received from th
Fleet’s training camp, Coach Tod
has the best material in the histor
6 of the school and a triple threa
t back from west New York, N. J
j named William Anthony PanZarin
whoc an do rnpst anything bu
swallow a football. Todd is ex
»' tremefy anxious.,tp. avenge that 2
1 to 2 lacing the Redskins hande
his outfit last year.
City Quiet As .
Strikers Rest
I
"All is quiet on the westeri
' front.” ..
That ostensibly was the situa
tion as far as the textile strike ir
Salisbury is concerned at this time
All local mills of the city are at :
standstill and pickets continui
peaceful and everything is beinj
conducted in an orderly manner
No violence of any consequence has
1 been reported in the county.
SHOOTS WIFE AND SUS
[ PECTED LOVER
Quince Souther, 30, nighi
watchman at a veneer plant a:
Statesville, fired at his wife whei
l he returned home ahead of his usua
r time and found Clarence Poole it
t his home. He fired at the suspect
ed lover. Mrs. Souther is in a hos
1 pital suffering from serious abdotn
r inal wounds. Souther is in jail, an<
i Poole is held without bond pendinj
developments in the condition o
; the wounded woman.
i GUARD DUTY COSTS STATE
s ——
> No official estimate has bee
: made as yet of the cost to Nort
1 Carolina, but an unofficial state
r ment has been made by one i
t position to know that, for presen
, number now on duty in strik
> ateas, the cost per day for foo
t and compensation, , alone will i
- mount to $4,100 or more. Th
i applies to approximately 2;30
i troops under 3$ national guar
units that have been called out;
Vote Planned
In November
Held Illegal
Proposal Should Have
Been Submitted In
Repeal Election
HALT CALLED
The state supreme court, in ar
I advisory opinion handed to Gov
iernor Ehringhaus, held unanimous
ly that the election last Novem
ber was "the next general election’
after the 193 3 legislature, anc
plans for the submission of th<
proposed new constitution thi;
fall were immediately abandoned.
Dennis G. Brummitt, attorney
general, heading a group againsl
I the proposed new constitution, anc
j Kemp Battle, chairman of the com
mittee for the document, immedia
tely announced th^t offices that
had been opened had been closec
and that plans for the campaigr
had been called off.
Governor Ehringhaus asked th<
supreme court for the advisory
opinion last Saturday on the re
quest of Major L. P. McLendon of
Greensboro, chairman of the state
board of election.
I
Fight To Finish,
Thomas Exhorts
Textile Strikers
Norman Thomas, socialist lead
er, stopping in Salisbury on his fly
ing trip through Ifhe cotton mil
belt, found an overflowing crowc
at the community building and ex
horted them to see the textile strike
through to a successful finish.
Declaring that the strike is :
• struggle against the crime of pov
erty in a land of plenty and that
increased purchasing power of the
workers is essential to prosperity
, he stated that success of the strike
' depended on the strength of the
workers to hold their lines anc
maintain their organization botl
now and following the strike.
October Court
Jurors Chosen
Following is a list tff the juror;
chosen to serve at the October terrr
of superior court, beginning Oct
ber 8. Judge A. M. Stack will pre
side over this term which is foi
trial of civil cases:
Robert Bray, Spencer; D. M
Brown, Rt. 3, Salisbury; G. H
Cauble, Granite Quarry; A. N
Honeycutt, Rt. 7, Salisbury; Elmei
: Barber, Rt. 1, Cleveland; Quine;
: Troutman, Granite Quarry; Davie
i Fesperman, Faith; F. M. Loflin
[ East Spencer; A. E. Holshouser
l Rockwell; Coy Miller, Rt. 2, Rich
• field; W. C. Lomax, Rt. 4, Salis
■ bury; Louis Kesler, Rt. 4, Salis
- bury; Charley Jones, Faith.
1 I. T. Bailey, Woodleaf; R. F. A
! Stirewalt. Rt. 1, China Grove; D
t J. Smith, China Grove; J. E
Thomas, Granite Quarry; Leste
O. Karriker, Kannapolis; W. W
Wilhelm, Cleveland; Robert Rit
chie, RFD, China Grove; Monro
i Faust, Cleveland; T. D. Browr
i Salisbury; W. D. Morgan, 625 ^
- Liberty St., Salisbury.
t START DEATH PROBE 24TH.
t A coroner’s inquest will be he!
i at the county courthouse at Andei
- son, S.C., beginning next Monda]
s investigitihjj cause of death c
9 seven men at Honea Path due t
j strike activities at Chiquola mill o
September 6.
Queen Of Forests
HUNTINGTON W. VA_Miss]
Garnette Northcott (above), of this
city has been elected Queen of the
annual Mountain State Forest Fes
tival which is featured at Elkins W,
Va., the first week in October.
I _!_
Murderers Of Will
Reeves Sentenced
To Die November 2
Roland Earl Allen and Lowell
Massie, convicted of the murder of
Will Reeves, prominent Rowan
county farmer, were sentenced to
die in the electric chair in the state
prison on November 2 between the
hours of 10 a. m. and 2 (p. m., by
Judge A. M. Stack in the Rowan
Superior court Saturday morning.
Elmer Waggoner, pled guilty Sat
urday to being an accessory before
the fact of robbery in the same
case, and was sentenced to serve
not less titan two and not more than
five years in the state prison at
hard labor and wear stripes. The
jury Friday afternoon, composed
largely of middle aged farmers, was
out only an hour and 45 minutes.
Two ballots were taken, it is un
, derstood, and on the first ballot
four members of the jury voted, se
cond degree murder against Massie.
FATALLY HURT IN CRASH
Lyda Phillips, 46, of Canton was
fatally injured and Roy Mann of
Luthers seriously hurt when an
automobile driven by William A.
Julian of Newbridge struck them
on highway No. 10 near Asheville.
Judge Stack
Hands Down
New Ruling
Reverses The Opinion Of
Frank H. Kennedy,
Referee, Charlotte
PLAN APPEAL
The City of Salisbury is entitled
to recover the sum of $17,748 from
George M. Lyerly and the Hartford
Accident and Indemnity Company,
according to a decision rendered
Thursday by Judge A. M. Stack
who is presiding over a two weeks
term of superior court here.
Judge Stack’s decision reversed
an opinion rendered in this matter
some time ago by Frank H. Ken
nedy, referee, of Charlotte.
Judge Stack’s judgment follows:
"State of North Carolina, Coun
ty of Rowan—In the Superior
Court, September term, 1934.
"City of Salisbury, Plaintiff, vs.
"George M. Lyerly and Hartford
Accident and Indemnity company,
"The above-entitled action com
ing on for hearing at this term of
court, upon exceptions filed to the
Referee’s report, and after hearing
same, the argument of counsel for
| both sides, and after considering
the able briefs filed on both sides,
the court is of the opinion that
there was error in the Referee’s
conclusions of law and the excep
tions thereto are sustained and
judgment rendered against both de
fendants in favor of the City of
Salisbury, the plaintiff.
"The court is of opinion, and so
holds, that it is immaterial in what
capacity the defendant Lyerly col
lected the city’s taxes, assessments,
etc., whether as a de jure defacto
collector or otherwise. When Lyer
ly collected the city’s property, in
any capacity, when he became in
possession of the city’s money,
derived from city taxes assess
ments, etc., his duties as city tax
collector ceased and he then held
the city’s money as city treasurer,
and a failure to account for, pay
over or deposit in the bank to the
city’s credit was a breach of his
duty and bond as treasurer for
which both he and his surety were
liable. He was elected treasurer of
the city, qualified as such, was
bonded as such, acted as treasurer,
and the defendant, Accident and
(Continued on page five)'
Congressman Doughton Opens
His Campaign For Reelection
Rowan County Is Presented With “Doughton
Banner” For Majority In 1932
i -
A large delegation of Rowan
county Democrats, numbering
around 75, headed by Ross M. Sig
mon, chairman, of the county exe
cutive committe, motored to* Boone
Saturday to attend the ninth Con
. gressional district meeting, which
. was the occasion of the launching
. of the campaign for re-election by
r Congressman R. L. Doughton.
. Mr. Doughton spoke at length
- in support of the new deal, point
i ing out that the coming congres
, sional campaign will be based al
. most ’entirely on the record made
by the new deal in corpparison with
that, piade by the old deal in the
Uhitefl States.
1 The •speaker described i the condi
- tion which the country feaced dur
', irig the latter part of the Hoover
f administration. "Actual , starvation
o stared many in the face and terror
n had seized the public mind,” he
said. "Conditions were so serious
that many ot the states had already
closed all state banks by official
mandate and those that were not
closed had lost, or were rapidly
losing, the confidence of the pub
lic. Old remedies had been fully
tried and tested, and found ineffec
tive and futile, and, while much of
the new deal is still in an experi
mental stage, judged by what it
has already accomplished and! is
capable of accomplishing, enough
is known of its effect to show that
the nation has been saved from ut
ter collapse and is beginning to
breathe and function in a normal
< ■ i • .
way.
"And in this connection, may l
say with reference to pay own rec
ord under the RooseVfclt adminis
tration, I consider Jthat mandate of
leadership so oyerwhelmingly giv
en to President Roosevelt by the
election of 1952 carried with it
(Continued on page eight)