. The Weather Sunday Want Ads v r'oudy today; Sunday local ' '-(.'vers; no change in tem- You will find It marvelously easy . to buy or sell, or secure board or boarders, rooms or roomers, or transact any sort of 'business, through the classifld columns of The Morning: Star tomor f river at Fayertevllle ye- ttrd:iy nt S a. m 3.0 fee. row. Try It: VOL. C VII No. 123. WILMINGTON, N.: C, SATURDAY MORNING, JULY 9, X921. OLDEST DAILY IN THE STATE. CE ENGLAND ARE TRU 1 - 1 4C PROSPECT APPEARS BRIGHT AS ARRAIyuEMENTS ARE MADE FOR LLOYD GEORGE'S LONDON MEETING i- ; : : c GEORGE AND JAN) HRfSTIAN SMUTS THE 'MS IN MOVEMENT .-.I rnnlrarv in EYnertfl. e aicii. v,uii n tions. Agrees to Attend London Meeting blCE ON INIONDAY is Arranged by Both Irish Re publicans and Crown to End Hostilities Tnno July 8. A truce L been declared between Eng ine! and Ireland. It will take effect at noon on May next. Preparations are Iready under way to end the unities between the crown rces and those actively engag I in the Irish cause. Developments leading to the jce were divided between Lon- rn ana uuuim. in uuvun, amonn de v alera, Irish re- b iblican leader, and his nation ist associates, renewed their nference with the southern tiionists. Larl JMiddleton, a fcionist who recently conferred ;th the British pnme minister, ad a letter trom Mr. Lloyd korge to the effect that hostili- mu5t cease if neeotiations pking to peace were to succeed. 'ieTieral S:r Xevile MacReady, Brit 'i Tni'.itary commamler in Ireland, ap- tarea ar tre d alera conference. :- wa nnr many hours later that anr.nuncpir.ent was made at the minister's official residence in that :n accordance with thf r?T.ier's offr ani Mr. de Valera's Te- arrangement? were goine for- ar: f r tiv cassation of hostilities f'rr. Vonday noon. he kine of Eneland has been S. aiine f.enrp in the develooments ub '.y-.'r present while General Smuts. - - ..... .... ti ...in 1, lino the rsivot nr. which the peace move- -as tarr.-d. There is hope in TuMin. too. that peace the forces which are n P"kinp- a apt 1 1 f.mon t n s a s & - Event Move A Inns: Swiftly Evr.t. m-.ved swiftly today both In r.aor ani p :s;;r. Not only has Mr. Vara. ont-ary tn the general ex- "Nation, consented to come to Lon to .ISCtlSS ? t h e s rr.er.- of tr with Lloyd George the 'etnent on which set Irish question might fache'I hy the prime minister's p-'i Iyonrion conference, but a e r.as hf-n arranged to begin at has giv-n reasonable assurance a: :. "Ein! conferences, to whicn m-A n-',tar invited tV. a Trfi 5'Jh.icar r and Sir James Caler. ipr. will be held. ' r ', a y s t a - r a rc-fir,-.r,. 1 hopefully with the c the Ulster premier ; Buckingham palace. ii upon the king's confer ri.,y with Gen Jan Chris ' j South African pre-tni-oation of the intense K n? is taking in the and. although under the British constitution. rr.c vps' "trec;T t". "ad;t ,w a r t . . Kins has r. ral voice in the di riment affairs, that his exercising great oMry of the country. rr in mnt. the Tilg Influence 0: - pjiiig to Lnequers week-end, together :0 ?pnrj " e r, x .- r 'i' nv n ' ; - " .- ' : r. r r rmiers of the over "c with Mr. Lloyd Smuts evidently is " ' egotiations, perhaps r .'nan mere influence, - " ve aid it is hardly .-t-nts could have 'e did today, and the ; r"n minister has not 'i'rnity of his office. 11 Hilliner to dianiisn -if - rrEr 'cod '. d- the basis for a , r.nf eren ? considered full of 5".- H . fcVfts of this impor - r. fcured not in " 'ihlin. and the most sensational appear- s:r Nevile MacReary, TiHndf.r in Ireland, at f-Or-lnr, r'!!!.r,.r unionists, after his "een sent in ad ' a'ertain' wheth- lv s appearance and fonference clearly Uoyr, George's 'i'lieton. one of the 1 the prime minister ROf; ,n;:fn,.f"Hy realizes that to conduct tip. ?atisfa-to hope of achieve results if thr. and is It virience in Tr.u.j 'nt: Uf-'l on pag9 Xwo) UnrF, Be Made By "WASHINGTON. July 8. Debate on the soldier bonus bill dragged along in the senate today while the list of senators favoring indefinite postpone ment of action on the legislation through recomm4ttal of the measure to the finance committee steadily grew in proportions. Leaders said they were assured of enough votes to put through such a program President Harding will send a special message to congress next week regarding the bonus bill and the press ing of tariff and tax legislation, but te exact date of its submission has not been determined. Definite action is expected to follog, reading of the message. , Less than a score of senators fol lowed the day's debate on the fiodr, marked by a criticism by Senator Me Cumber, Republican, North Dakota, the chief proponent of the bonus, of Sec retary . Mellon" s letter declaring such legislation to be Inadvisable at the present time in view of the condition of the treasury. The Republican . party should make good," declared Senator Mc Cumber, "even if our party platform had not contained a pledge to the soldiers of America. "Despite the pleading of the secre tary of the treasury, deBpite the earn est plea of the president not to enter BASEBALL LEAGUE OFITARIFF DEBATE OPENS ' - 5 . . ... . -i , I FOUR CLUBS FORMED Wilmington, Mt. Olive, Wallace and Warsaw Begin Play ,. July 14 Witlx Wilmington, Mount Olive, Wal lace and Warsaw as members, : the W-W Baseball league was formally organized last ui'gKl' when representa tives of the four cities held a fiiu in the office of Dr. J. H. New terry - at Warsaw. A tentative sche dule was agreed upon, calling for the league's opening next Thursday, July 14, and closing -early in September after 48 games have been played, 24 games at home and 24 abroad for each team. - C. G. Vanlandingham was the Wil mington representative at the meeting last night, and he imparted the glad news to The Star late in the night that the four-club league had actually been formed, with all towns to have a berth highly enthusiastic, over the prospects for a successful season and good' base ball, in spite of the late start. He said that it had been agreed at the conference that there should be an other meeting at Warsaw next Thurs day night, when league officers and directorsone from each town would be elected. The schedule as agreed upon last night calls for series of three games each, with Wilmington starting with six games on the road, the first three, beginning next Thursday, at Warsaw, and the next trio, starting the first of the following week, at Mount Olive. The local team will play its first three games here July 21, 22 and 23, with Wallace as the invader. Mount Olive, Wallace and Warsaw all have' fast near-prof essional . teams battling for honors In eastern Caro lina now, and Wilmington can quickly, from the abundance of fine material in the city, put a formidable aggregation in the fieldr Albert Kite of the Tide. water Power company; who has played in fast company and who knows the game from Alpha to Omega, will manage the locals, and he has already given considerable thought to the probable Wilmington line-up. He will redouble his efforts now, and Monday will probably see him have his -material showing: its stuff i at Robert Strange playground. There, it is ex pected, the local games will be played. It has practically been - decided . by those who have taken the lead in get ting the fast little league organized to offer Wilmington fans season tickets at a moderate price, to get In the club treasury enough money - to Insure traveling expenses for the team. It Js probable., that the' tag system wUK be used at the .playground gates foreper sons not carrying season tickets, per mitting them to contribute as liberal ly as they feel like doing; when they go to witness the Individual "contests. Flans for organizing the four-club association have been engaging the at-; tention of Mr. Vanlandingham - and other ardent local followers of the na: tional pastime for severar days. These fans requested all along, h,6wever, that no publicity be given: until a. definite decision ' on organization was iarrlved There la. keen rivalry between, all the towns represented in the- W?W league;, plenty of good material avail r able for -each to pick a strong team from, and unless all signsTfail, - the circuit - will be one of the :-fastestln Its . class In this part of the country.7 The idea for the1 leaguer name: comes tmm ti wilmln firtan-Weldsn rail road, traversing the heart -of the- ter-. teZ f C ritory . empracea jn me iwgue.. SEW. IIOTEL FOR KINSTON ' KINSTON, July 8. Forrest ; Smitl? and nthrs nromotlnar a;new hotel en terprise., Ijere,- report that: more than W been uatanteef TTj J150.000 vnrur: It wil bj capitalized Jit I30U.T 000 and -wilibe -located - rieajthecervr ter of ,-the city '-'j; rVj'y.-.c-AV;.'. Will the Democrats into new fields of expenditures, tlis congress has appropriated millions, to go into new enterprises. It appears this congress seems bent on spending all of the money that can be raised by taxation. Why then should we expect a tidal wave of consternation to sweep the country if we pass a bill that will take two hundred million two years fYom now and varying amounts thereafter and after 30 years no appropriation whatever?" Senator RIcCumber read accounts of the proposed $500,000,000 advance to the railroads and declared "no one has been scared by that." Republican leaders in the movement to send the bill back to committee said the party j strength, with the pos sible exceptio i of six or eight senators, would vote to recommit .the measure. They added that several Democratic senators opposed to bonus legislation would also suport the plan. Several Democratic senators, how ever, is w-.s said, might seek to pre vent recommittal in order to put the Republican majority on record definite ly on the straight Issue of conpensat ing the veterans of the World war. These senators, together with the by partisan group advocating present enactment of bonus legislation, are ex pected to precipitate a hot fight when the move to recommit is made. WITH FORDNEY SPEECH Chairman Ways and Means Committee Outlines the At ;Mtude of the Republicans m : - WASHINGTON, July 8. The house got underway today in Its considera tion Of the Fordney tariff bill, Chair man "Fordney, of the ways and means onmmlttees. after reading: of the bill cori-.jhad. been completed. In , a speech of n,riv turn hnurn develobine the first phase of the Republican argument. In his speech, Mr.VFordney, discussed his party's attitude, what it proposed to do to remedy conditions and to help business. He dwelt only briefly on de tails of the rates and provisions, touch ing them only incidentally or in reply to questions, but announced that other speakers would explain specific sched ules in the measure. Criticising the position of the Demo crats,. Mr. -Fordney, said they had ac cused the Republicans of drafting a measure which would , cut off . rather than encourage trade when the cardi nal, policy of his committee had been to build a set of schedules which would restore commerce and Industry to health. The committee's work always was actuated, he declared, by the knowledge that business now was in a slump and should be given protection which would save it from the Inroads of foreign competition. Compromises necessarily have been put in the bill, the speaker said, ad ding, that all such contested points would be put before the house for its approval or rejection. At any rate, he informed the house, the committee did the best job of whach it was capable and he was willing to stand behind it to the finish. The last election Influenced the Re publicans in the house to launch into tariff legislation, - according . to Mr. Fordney. He said he..bejieved the people, knew when they had what they wanted or did not want and that the overwhelming majority last fall was a voice of protest against the Under wood law along with other objections t othe Democratic, administration. "The Republican -party" he added, '.'had taken . it for granted that the people spoke out loudly for protec tion."' ' ' ' TWO GALLONS WHISKEY FOUND IN COAL SGOWy Corn "Likker" Cached in Boat Has no Claimer Two gallons of corn whiskey , were discovered, by Plainclothesman Leon George Thursday, afternoon cached in a small coal scow tied to the Seaboard Air Line railway terminal. The of ficer v confiscated , ther Illicit beverage, but was unable to carry out the. letter of the law,' calling for the confiscation of the boat,, inasmuch as he was un- able .to move it. - The negro , owner 'of the . scow was questioned by Pollcemac George and h.aM all knowledge of the owner of the "white lightning.' , No one has claimed ownership or tne .jug, ana no arrests .have been made. r gHERiFF CLARK ARRESTS TWO - , AND CAPTURES A DISTILLERY :-:hv - ' - - -" BLADENBORO, July S Sheriff Clark yesterday V arrested Cade Deaver and Grad" Storms r-on " a charge of Celling whiskey. ; Deaver Is 5 buna ana is a nnr hv trade. His " father. R. Deaver. It Is' stated, put- the .sheriff and Othe' Storms mam: , ,While "here the.: sheriff captured a still about a mile-, from town,- which s alleged to have peen owneur ny-w Wewwju, was i caught-: last -il L-iJ, nrhifiVev. but got -away. Of- 'ficeriiMytf !beeA;on::-lceett: lookoutfor htm.: v - . - ; OPEN DOOR POLICY; TO BE UPHELD S ilfED STATES, CHINA IS TOLD Note is Sent in Respect to Con tract Between Telegraph Company and China FOR A FREE FIELD Great Britain, Japan and Den mark Have Protested Con cession to Americans WASHINGTON, July 8. Formal dec laration of the intention of the United States to continue its support of the principal of the open door is contained in a note from the state department to the Chinese, minister here in re spect to a contract entered into with the Chinese government by the Fed eral Telegraph company, an Amerlcatt concern, for the erection of wireless stations at Shanghai and orher points in China. The note, which was dated July 1, was in reply to one of June 9 from the Chinese minister inquiring wheth er the United States intended to with draw its support from the Federal .Tie graph company in its rights acciuing under the contract with the C-iinese government, in view of protests that have been made the British and-Jap-anese and Danish governments.. The text of the American reply was made public today by the state department, but the inquiry of the Cninese min ister was not made public. The reply of the state department not only .makes it. clear that - Uio United States .does not n'ronpso to withdraw from. therPosition hitherto taken, in support of the1 ri;hts-,of the American company b-s a result of the protests of the three governments, but carries the assurance that . "It is the purpose of thte government neith er to participate , nor-- to 'acquiesce In any - arrangement writch". might pur port ; to estab1fsrrfnrt lav Interests any superiority 4f rights with respect to commercia$ or eco- nomic J0!!" "I bous Ul, wnicn migm sees .10 create any monopoly or preferences as would ex- elude other nations from undertaking any -legitimate . trade or industry or from participating with the Chinese, government in any category ofpub- lie enterprise." The protest of the British govern ment lodged against the entry of- the Chinese field by the American com pany was in behalf of the Marconi company and asserted the concessions granted to the latter were of a mon opolistic character and that the con tract between the Chinese govern ment and the Federal Telegraph comT pany was an infringement of the Marconi rights. The Japanese and the Danish governments also protested in behalf of companies organized in j Japan and Denmark. The controversy which followed in cluded the dispatch of a note by the Wilson administration in which the Chinese government was given to un derstand that cancellation of the con tract with the American company would be highly displeasing to the United States government. Unofficial ly it was understood the Chinese gov ernment welcomed a frank exchange of notes since a full expression of the opinions of the various governments would facilitate its decision. The note made public today also revealed that the United States had Inquired- - of Great Britain Japan and Denmark the reasons for their protests. "In its view." the note reads, "the communications which it has received from the. other interested govern ments, in reply to its inquiries as to the reason for their;, protests to the Chinese authorities against this, con tract, tend only to confirm this-government in its belief that the adverse claims which have been Urged as ex cluding the Federal Telegraph com pany from partlcjpatic-n with the Chi nese government! in establiahing wire less communications are founded upon assertions of monopolistic, or prefer ential rights, in the field of Chinese governmental enterprises which can not be reconciled either with the treaty riffhts of American citizens in China or with the principle of the open door." - YOUNG SPOONER CALLS ON PRESIDENT HARDING Wilmington Young Man . Would Read Him Poetry , (Special to Tke Star) WASHINGTON,' July 8. -President Harding . yesterday afternoon missed an opportunity to listen -to a norm - j , Ae - t"h readiner : admitted W HICU -f 1.V, - w T,J i authorship of - them, one, was dedicat ed to the - author's "Best Girl" while others were dedicated to- "Mors Friends." - -' :- . ' ' ' - ' ' Bernard - Spooner . was , the . name given by the young man, who said he was 21 years old, a reporter from Wilmington, ' N C., and - had accam-; panied , hs father - to ? Baltimore, , where he was to . receive treatment, for nervousness. H became -separated from his father. he id, and came-bejej yesterday j in an tautomobile."He.wA"-;ta'ken5 into custody at the- white : house and - was conveyed toY Washlisgton . asylum ;fox observation- as1 to his mental condi tlon. . . - Only Corn Promises Bump Crop er All Other Crops of the Country, While Fair,; Will Not Prove Record-Breakers, the Yield Being Somewhat Curtailed Wheat During June Lost 21 Million Bushels IV bacco Crop Will be Smallest Since that of 191 1 WASHfNGTON,; July SForepaf ts-. f the country's principal farm ' crops n.ade today by the department of ag riculture from their July condition in dicate that there will be no record breaking production in any crop, with the possible exception of corn. Con ditions during, June caused a reduction in the production forecasts of every crop as compared with last month's estimates. There will be a bumper corn crop but other crops are well below 'ast year's production and in some instances 4 below the average production., of the five years prior to-1920. Tobacco pro duction will be one-third less than last year and one-quarter less than the five-year average. The potato cropwill be smaller by 6?.-000.000 bushels than' a. vpa r no-- ice production will be onlv a little more than half as large as last year and apple production will be loss than half of last year's crop. The wheat crop showed a decline of 21,000,0.00 bushels during June, winter wheat showing a reduction of 5,000,000 bushels and ' spring wheat 16,000,000 bushels. Corn this year was in the best con dition it has ben . on July 1 in more than a scored of years, it being ft.5 points higher than a year ago and 7.4 points higher than the 10-year average. With favorable" weather, officials be lieve, the crop may surpass last year's record-breaking crop. The acreage of corn this year is 4.1 " per. cent larger than last year. . : 1 Rice shows the heaviest reduction 1a acreage compared with a year ago, it being 35.4 per cent, while the to bacco acreage reduction' is 29.4 r;er cent, cotton. 28.4 per cent and flax 3C.4 per cent. TOBACCO TO BE SMALLEST CROP SINCE THAT OF 1911 WASHINGTON, July 8. The tobacco crop this year promises to be the smallest- since that of '1911,' todav's forecast of the department of agricult uro placing this year's aroductionr at ..f-.Tless than "last year's record crop. The cenfc of normal wag lowfer tha " has been on that date in more than i 21 years. It is 10.2 points below the lt -vear av.ratre. condition on .Tlv 1 TESTIMONY TO SHOW MRS. KABER IS, GUILTY State Introduces Several Wit nesses Who Describe Mrs. Kaber's Alleged Plans CLEVELAND "tfuly 8L Through a number of witnesses today, the state introduced testimony tending to show that Mrs. Eva Catherine Kaber wii-1 fully planed the murder of her husband, Daniel F. Kaber, on, which she is being tried, on a first degree murder charge. Urbane Di Carpo, the last witness to take the stand today, testified that Mrs. Kaber had offered him $3,000 if he would get an automobile and run Mr. Kaber down with it. When he re fused to do this, he said, Mrs. Kaber then asserted she would give Mm 53,000 to 5,000 if he would "get a gang and kill him anyway." Di Carpo said he introduced Mrs. Kaber to Ermine Colavito, whom the State alleges obtained the persons who did the actual killing. Mrs. Colavito awaiting trial on a first degree murder charge. - Previous to Di Carpo's testimony, the state had, through Dr.JohnG. Spenser, .chemist, showed that Mr, Kaber's in ternal organs bore heavy traces of arsenic. He gave the results of his analysis of the 'liver, stomach " and kidney. He said the liver contained about 40 grains of arsenic. A fatal dose of -the poieon when the system is not inuced to its use, is generally rated at two grains, he sa.id, adding that a less amount' is sometimes fatal. Early in the day, Mr. S- .T. Parson, the first pjhysician to reach4 Mr. .Kaber after he .had been stabed, testified that Mr. 'Kaber said to him: "Mrs Kaber had this done." This testimony; cor roborated that given by. Police. Lieu ten ant L. B. Miller .and W. J. Quigley, yes terday., , - . -"" Mrs. MarieJ Schwartz told lof going to iMrs. Kaber's home with "Emma" Colavltoi claimed by, the state to -have been the ; procurer of Mr. Kaber's as sassins for Mrs. 'Kaber, when Mrs. Col avito asked Mrs. Kaber- for .money. Mrs. Kaber. was alleged to have replied that she had no money. Mrs. Colavito then asked ; If she had .any diamonds, the witnesstestlfled; adding fnat -Mrs. Kaber then went "upstairs "and brought ft,i- -murder : of 'Mr. Kaber." - On . cposs examination by Atforney rorrlran. Mrs. - Scnwartz saja Airs Kaber- came to her home . frequently J and that she. acted crazy. . VShe would run up and down the parlor, pull her hair andv keep saying: "I didn't do it. I didn't.do it.!". - . . - ' -j BRAGG-DEFEATS chadbourn , : t CHADBOURN. July-8 In a- fast game of baseball Thursday afternoon: Camp Bragg defeated ,Chadbourn by a- score of 2 to i't . The' features of he; game ver e the pitch i ngi of ? Coy Ington Or Chadbourn and the pitching cf. Toole nd the hitting of Cameron :,forCamp Bragg. 4.. : ; y . : . to This Season and 12.4 points below last year's July 1 average. .An average acre yield of 697.3 pounds is" forecast, almost 100 pounds less per acre than was har vested last yiear. The tobacco acreage this year has been reduced 29.4 per cent below last year, with . a" total of 1,337,000 acres, compared with l,894,0pp acres a year ago. Georgia with. 37 per cent showed the largest percentage, of reduction. Tennessee's reduction, was 35 per cent, North Carolina ;34 per, cent, Ohio 23, Virginia 32, Kentucky 30, South Caro lina 15, and Pennsylvania4. Connecti cut's, acreage was the. same as last year. V . The condition of' the crop on July 1 and the forecast of production by principal states, follows: Kentucky condition 72, production forecast 288,000,000' pounds; North Carolina, 65 and 199,732,000; Virginia, 6S and 95,486,000;. South Carolina, 70 and 54,575,0001 , Pennsylvania, 84 and 4S;, 029, 000; Tennessee, 66 and 48,655, C00; Connecticut, 91and 37,747,000; Ohio, 76' and T4, 638,000; Georgia, 65 and 9,282,000. EVERY SOUTHERN STATE HAS INCREASED ITS CORN ACHEAGE WASHINGTON,. July 88.Every southern state increased its corn acre age this yeari the department of agri culture's July crop report, issued to day, showing .increases ranging from 1 to 20 per cent. Virginia, Tennessee, North Carolina, Texas and Oklahoma are the only southern states for which smaller crops are forecast than were harvested last year. The increased acreages are : . Virginia 1 per cent; North Carolina,' .'5 per. cent; Georgia, 15 per cent; Tennessee, 5 per cent; rAlabama, 11 per cent; Mississippi, 20 per cent; Louisiana, 18 per cent; Ar kansas 17 per cent, Texas, 14 per cent and Oklahoma 6 per cent. Other states were not listed. The condition, of - corn4-' July 1 and the forecast of production for, southern states follows: . v Virginia" condition, 82, production: forecast 42.884.000 -bushels: North rOarelina 2. at5 r E5,128jO004 - Georgia, 77 and 79,031,000? Tennessee, 82, and 884,447,000; Alabama, 75 and 69,424,000; Mississippi, 79 and 83,007,000; Louisi ana, 88 and 47,499,000; Texas, 86 and 164,217,000;. Oklahoma, 91 and 59,996, 000; Arkansas,-90 and 60,880,000. UNPAID TEACHERS ARE ANXIOUS FOR SALARIES State Assures Embarassed Counties it Will Meet the De ficit in School Fund By JULE B. WARREN RALEIGH, July. 8. The deficit in the state school- fund has caused con- siderable embarrassment to some of tne counties in tne state, wniqn inem- selves were not in financial position to advance the money they expected to get from the state, according to county and city superintendent who have been visiting "Raleigh during the past few days. They came here for the purpose, of conferring with the department of education and other state officials about the prospects for getting the money due the county teachers by the state. One superintendent of. an eastern county declares that his. county, hard hit as it was by the depression in prices of cotton and tobacco, was un able to advance the money, and his own salary as well as the salary of his teachers was not paid during the latter part of the session. He under stood that some -of the other eastern counties ' were also in the same con dition. Despite rthis,- however, the teachers stuck - to. their-jobs and are now rather impatiently waiting un til the state can make arrangements to secure the- money with which to pay them. The statement sent out by the super intendent of public instruction, which carried the indorsement of the gov ernor and council of state, assuring the county- superintendents that the state considered this deficit a. state obliga tion, which would be assumed and taken care of by the-state, brought relief to many.' . counties, for they feared the statewould not assume the obligation and would leave the whole burden for th& counties-to shoulder. The North Carolina -Traffic associa tion -in annual, meeting here today' elected of fleers,;, instructed the ' secre tary to continue.-his fight to . get rate adjustments In - connection with tne recent freight rate -decision and ap propriated $20,000 to . enjploye rate ex perts - and clerks for; the purpose of auditing rate bills of the members a;td otherwise looking after -the shipping D.J H. Dixon of. Goldsboro, vice-presi- oentj; Howard White of Raleigh, treas urer, and Mi-" R. . Beaman, secretary - traffic manager, for the , doming, year. XEe.- IOliOWing. -uireciors wex c eietisu. If. W. Armstrong, New Bern; W. J. Ivilllams, Wilson; C. G. Morris, Wash ihgton; J- D.- Sergeant, - Mt. Airy;,.B. Sanderlin,; Fayetteville F. H. Har ner, Henderson; W. A. 5Erwln, Durham; 3: B. Kittrell, Greensboro; J. W, Peeler, Salisbury r , Mr. Wallace of Statesvilie, and " Georgie Newman, "- Greensboro. There are four; vacancies on the boa I'd which will be filled- later on from membership of the .western part of the state. At the present . time he asso - (Continued on -Pye Two) SAYS PARENT COMPANY, GETS TOO LARGE PART OF THE BELL EARNING Corporation Commission Files Answer to Complaint of ' Telephone Interests RATES NOT UNJUST ; Companys Statement - of Its Operations is Challenged as to Accuracy By" JULE B. WARREN RALEIGH, July 8. The corporation commission in the answer to the com plaint of the Southern Bell Teleph me company In the slut it has filed in the j district federal court, denies that the- rates 11 aiiowea are unjust and via not yield a fair return on the invest ment; declares . that the company's statement of its investment in No-th Carolina is larger than ,the evidence in the cage showed, and asserts that the suggestion of the company in its complaint that the requirement of bur nishing service by the Installation t new equipment will . be. unfair, is not founded on the - facts in the case as they were presented in the hearings be fore the commission. The answer of the commission covers . 10 typewritten pages and is an in teresting document in that it gpes Jnto some detail about the financial condi tion of the Southern Bell as this vas revelled in the hearings. The "allega tions that the earnings in North Caro lina on its business .done therein, have at no time yielded a fair an reason able return," is denied. In summar izing its answer the commission cilia particular attention of the court to the following statements'. "1. That the real comflJainant in this cause is the American lephone and Telegraph compaiy, which is the owner . of all the shares of stock of the South ern ,Bell company, even to the fjw shares necessary to . give , legal form and effect to the qualifications of those who serve as officers of the subsidiary company, the said shares, being Issued in the name of said officers and'trana- ' ferredf by them-aclc; to-,th'u -r -and T. ' . j - ' v "2. That the said Southern Bell fa a 'mere Instrumentality, conduit or ad junct', of the parent company, . The purpose and effect of the said form of organization is to -set up afictithws entity, moving by either long distance wire or wireless control and direction of the parent company, performing in all respects, its bidding, being fed or 1 bled as - the exigencies of . conditions (may require, but always with the in tent and purpose that its statements of earnings may show something Jess than a fair return on its property, so that at will it may show to regulating commissions the need for higher ratos, and, when the full amount of its rate demands are' denied, to support its al legations of confiscations before the honorable court. - . "3. That the , contractual relations between this real party in interest and its creature, the Southern Bell, are such as to carry out and effectuate the foregoing purposes, and to drain the subsidiary company of its rightful .'av enue and earnings in this state. We refer specifically to: "(a) The petitioners contract vlth the Western Electric company, another subsidiary of the A. T. . and T. undr vMch all-equipment and supplies used in the construction and - operation' tt the petitioners "husiness are purchased from said Western Electric company. "(b) The petitioners contract with the A. T. and T. company under whicK that company is paid 4 per cent of all gross receipts of the Southern Dell for furnishing induction coils and re ceivers used by the Southern Bell, and ether services of. an Indefinite nature, which constitutes an . unreasonaole payment for such services. The com- , plainant paid to the parent company, out of earnings, in. this, state for the year 1920, more than $70,000 underbills contract for the use of property valued at $194,381 and other, indefinite services. ' "(c) The. contract by which the,r-e-titioner furnishes- the use of all its exchange facilities and all operating expenses for handling long distance business over the lines of the Amrl,- -' can company and for which the South ern Bell retains only 12 per cent , of the revenue collected, and the American -company 87 per cent of the revenue for the mere ownership of the long distance wires, or the year 1920, the complainant collected $150,855 for mcs- s?ges handled over Wires of :he Amer ican company and for all the servile furnished by the Southern Bell, .t.nd fcr the use of its property in handling these messages, it received mly $18,992. - Y ; "4 That in the statement of the operations of the Southern Bell ihe company, for the year J920,by which itF net earnings are shown to be only 3.82 per cent, Its earnings for that year were depleted by. the expenditare of more than a . fair . average amount for the maintenance of its property Jn this state, and" , more than it will ; be reasonably necessary for It: to expend fcr this purpose 'in the future." Like wise the commission claims that an excessive .amount Ischarged Cor- uo preciatlon! more, In fact, than the aver age amount of . such expenditures t for , other, companies. -: " The commission further says that the claims of the . complainant ' that th service part, of the order wlfl' work an urdue burden On the company is .not , true. - H: is true that it -will require a large outlay of .cash to make the ex tensions necessary ? now. but.' these . should have not been ' allowed to r.c- . cumulate. Besides, the.-statement . of the prospective .amount of money, nec essary to 'ba , spent In makings extsn-., sions- for the next five years is aggerated and" hardly -fair j basis for; the 'statement that carrying- ouf the ' service part-of the' order will amouat tr. confiscations. 1 ; - . j -"f r - I f - AX .;.V i ' ' ' T'tt 1 ' ..2 ,