Dedicated To The Progress Of f-———— WILMINGTON Served by Leased Wire of the And Southeastern North . ASSOCIATEDPRESS Carolina With Complete Coverage of ____ State and National News 11!^--—- WEDNESDAY, APRIL 24, 1940 jl jl ESTABLISHED 1867 ALLIES AN - FIGHT FOR GATE’ TO OSLO ★ A Sir ^ - a - a Ail w '' n, K K Guffey Leads In Pennsylvania Vote Klan Unmasks Itself 'iHnr ...:-'x:;'x'-:,::‘.':::-:-:':‘:*tx-:-;-"-:‘:-:-:v:-x-:-v.wy.'->^v/A-. Imperial Wizard James A. Colescott (right) shows how the Ku Klux Klan will dress, after his recent order to unmask. Old regalia, with sinister, eye-slit hood (left) was abandoned coincidentally with trials of 17 Georgia Klan members for flogging. Colescott denied any connect i.»n between trial and new Klan regalia. Wheeler Says Farm Debt Problem Must Be Solved ' M-— TALKS AT CHAPEL HILL Deplores Farm Credit Poli cy Which Creates Many New Tenants CHAPEL HILL, April 23—(iP)— C tor Wheeler (D-Mont) held up tie farm debt tonight as one of tie notion's principal problems and said that unless it were settled by 'no iol action” now, “drastic ac ton. fascist or communist” would follow, A Mressing the Carolina Political Union, he deplored a “farm credit lolicy that creates new tenants through foreclosure faster than any government agency can rehabilitate them'’ and called for “a new philo =:• hy of agricultural credit” that would keep the farmer on his farm and afford him a “measure of security." Wants Interest Cut He urged the passage of a bill introduced by himself, Senator Bankhead (D-Ala3 and Senator La 'ohette (Prog-Wis) which would reduce interest rates on government loans to farmers and provide a (Continued on Page Seven; Col. 4) BROCKWELL VIEWS UNSAFE BUILDING Board Slated To Consider front Street Structure Problem Today following an inspection yesterday Sherwood Brockwell, state fire ’narshal, the city commissioners will today give further consideration to l'le Problem of the reportedly unsafe rendition of the building at 22-24 • orth Front street. '0 details of Broekwell’s report ;'o available yesterday, but city of (toutinued on Page Seven; Col. 2) [weather" x. , TO RECAST v[r;;n,‘ .Carolina. Showers, slightly aAVi-fi."r in east and central portions e,, av: Thursday fair, cooler in an(* central portions. c;i<| , rr* c?logical data for the 24 hours ** ' ->,() P- m. yesterday). IVnrii.e-ature ii,. 7;i.a'- 7:3o a. m. 52; 1:30 p. it. I.nun,' p m- 59; ma.x?Tr.i.m 63; lrnuiu 46; mean 54; normal 64. ‘ i .oa Humidity „, ,*.!•"» 7:30 a. m. 72; 1:30 p. ,0‘ 1 :-10 p. m. 82, Toi o , „ Precipitation r,",,,.:*24-hours ending 7:30 p. m., 2.2c, inciiV.1 £lnie first of the month, Tides For Tgday .- lA'fah iIaSOnb“„ miet ....... ^ 3^ Sunrise v>n„ 9:55p 3:28p r " ;^;,AU7ab»6:S0p; moo“ Woutuiued on Page Seven; Col. 4) O’SHEA SAYS REDS DOMINATE UNIONS Claims They Are In Posi tion To Paralyze Import ant Transport Systems WASHINGTON, April 23.—(H?)— From red-beaded Thomas Humphrey O'Shea, who said he was the first president of the Transport Workers union, the Dies committee heard to day that communists were in a posi tion to paralyze the transport sys tems of New York and Alaska. In the brogue of his native Ire land, O’Shea testified that the com munist party not only dominated the Transport Workers union and the United Radio, Electrical and Mi chine Workers union (both CIO) but that it held key positions in mari time labor organizations. Furthermore, he said, gun clubs had been organized by Transport union members for regular target practice. “Do they have these guns for the same reason that these 17 Christian Front people had them?” asked Rep. Thomas (R-NJ), referring evidently to the group prosecuted in New York on charges of plotting to over throw the government. O’Shea agreed. In New York. Micnaei j. «>**“• international president of the Transport Workers union, issued a statement in which he O’Shea’s testimony was ‘ absurd. “There are no gun clubs in the Transport Workers union," he said. He added that the charge of com munism had been “denied 100 times.” Quill said O’Shea had been ex pelled from the union in 1938. O’Shea testified that the com munist party controlled transport unions in Alaska for the purpose of committing sabotage in event of war between this country and RcTlling Quill a communist, the witness said he had heard him say at a communist convention that his union would crush “the barons of Wail street" as a steam hammer would smash a mosquito. STEAMER MACHINEGUNNTD GIBRALTAR, April 23.->-The Italian steamer Italo Balbo was re ported here tonight to have been mined, and then to have been ma chinegunned by a German plane April 20 off the southeast coast or England Some crewmen were said in this report to have been slightly wounded. _ STEAMER SINKS LONDON, April 23.—(A*)—1The 1, 969 ton British steamer Lolworth struck a mine and sank oq the utheast coast of England tonight. H engineer and second mate were kihed and eight other crewmen in ed Coastal lifeboats went to aid JUr1tor unidentified vessel reported anoint in distress nearby. Takes Early Margin Over Walter Jones Count From 702 Precincts Gives Guffey 42,126 Votes; Jones, 34,512 G. 0. P. ALSO BALLOTS Democrats In 272 Districts Give F. R. 16,820 Votes, No Write-Ins PHILADELPHIA, April 23.—(^)— Pennsylvania’s junior senator, Jos eph F. Guffey, built a steadily in creasing lead tonight in his fight for the democratic nomination for a second term. In the Pennsylvania primary cam paign’s hottest contest, he started with a margin over his chief op ponent, Walter A. Jones, fellow Pittsburgher, in the first Philadel phia districts reported. His gains increased as tabulations came from other pvts of the state. The Count Unofficial count from 702 of the state’s 8,105 districts for democratic nomination for senator gave: Guffey 42,126. Jones 34,512. In a less spirited republican con test, Jay Cooke, 43-year-old Phila delphia city chairman, supported by the state organization, led rivals for senatorial nomination by a 'wider margin. Unofficial count from 6S4 districts for republication senatorial nomina tion gave: Cooke 84,364. Ladner 19,852. In a presidential preierenuai vote that is not binding on delegates to the national conventions, democrats in 272 districts gave Franklin D. Roosevelt 16,820 votes, with no wTite-ins reported. Republicans put spaces on their ballot for a presidential preference write-in, but filed no names. Scat tered write-ins were reported, but they were not tabulated in the early vote count. Only Name Mr. Roosevelt’s name was the only one on the democratic presi dential preference ballot. His con sent was not necessary, and his name was filed by the democratic state committee which endorsed him for a third term. Republicans filed no names but left spaces for -write ins. Republican leaders said the pref erence write-in on their ballots prob ably would be split among a half dozen favorites, but counted on their registration of 2,572,100 voters to the democrats’ 2,046,129 to keep their totals elsewhere on the ballots heavier than the Roosevelt vote. Democrats, however, had the only free-swinging scrap — a contest on which hinged leadership of the state organization. This was the fight for renomin,'. tion of Pennsylvania’s junior sena tor, Joseph F. Guffey, opposed by Walter A. Jones, Pittsburgh oil op erator who had the support of Democratic State Chairman David I,. Lawrence and several other party leaders. Third man in the race was for mer Mayor William N. McNair of Pittsburgh, who opposed the New Deal. Both the others cited their records of New Deal support, and Guffey said if he was defeated "the press of the nation would hail that (Continued on Page Seven; Col. 3) ___1* Lei Day Queen ~i-r■' Barbara Smythe A senior at the University of Hawaii, comely Barbara Smythe has been selected as Lei Day queen in Honolulu. TRAIN IS STORMED BY MEXICAN GANG Crowd Frightens American Tourists And Threatens Two Generals NOGALES, Ariz., April 23.—<£>)— A yelling, pistol-shooting crowd stormed a United States-b o u n d Southern Pacific train at Hermosillo, Sonora, today, frightened American tourists and threatened two Mexican air force generals. Gen. Gustavo Leon and Gen. Al fredo Lezama charged upon arrival that the demonstration was insti gated by supporters of Avila Cama cho, pro-government candidate for President. The generals are leaders in the campaign of the anti-admin istration candidate, Juan Almazan. Lezama reported the train was surrounded by 300 men at it pulled into the Hermosillo station about 4 a. m. After firing pistols in the air and screaming insults, some of the men boarded the train, seized luggage, and damaged property, he said. None of the cars occupied by Americans was entered, however. Ben R. Meyer, Los Angeles busi ness man, said he was awakened by (Continued on Page Seven^ Col. 2) GREATER SPREAD OF WAR IS SEEN Danger Of Sweden, Yugo slavia Becoming Involv ed Talked By Allies PARIS, April 23.—VP)—1The dan gers of a spread of the European war into two now neutral spots— Sweden and Yugoslavia—were re ported to have been brought into sharp relief at the two-day, eighth meeting of the Allied war council ending today. Sources close to the French for eign office sai dhte political and military leaders of Great Britain and France, joined for the first time by representatives of German-con quered Poland and German-occupied Norway, considered the present state of the war and studied pre liminary plans for the future. Earlier in the day French mili tary commentators reported there (Continued On Page Two) British Adopt Huge Budget, HeavyTaxes Gear Spending To Same To tal As Spent In Last Year Of The World War $9,334,500,000 IS TOTAL War Costs Will Amount To $230 For Every Per son In The Nation By EDWIN STOUT LONDON, April 23.—<£P>—G r e a t Britain, less than eight months at war, today geared her spending for the 1940-41 fiscal year to virtually the same staggering total which she paid in the final, exhausting year of the World war, imposed heavy new taxes to meet part of the cost and gave official impetus to a revo lutionary economic scheme under which the British consumer is ex pected to rigidly “do without.” The total of the budget which Chancellor of the Exchequer Sir John Simon drew from his little red dispatch case in the house of commons is £2,667,000,000, or $9,334, 500,000 at the New York exchange rate of approximately $3.50 and con siderably more at the British "peg ged” rate of $4.02-$4.04. $230 Per Person It amounts (at the New York rate) to $230 for every man, woman and child in Great Britain. More than half must be borrowed. Moreover, this budget figure, (which, naturally, is an estimate very likely to be exceeded by sup plementary war expenditures), com pares with expenditures in the 1917 18 fiscal year of £2, 696,221,000. That per capita bill for carrying onboth the government and the war is more than three times the per capita cost of the United States federal government in 1939—$70.. As for the cost of the war itself. Sir John told the house that Great Britain spent £905,000,000 (about $3, 167,000,000) in the first seven He declared that figure indicated an annual war expenditure at the rate of about £1,250,000,000), but that the estnmate was rising and the rate of annual expenditure would be £2,000,000,000 (about $7,000,000,000) by theend of the fiscal year next March. Large Increase The budget represents an increase in the expenditure of £850,000,000 ($2,975,000,000) over the 1939-40 year. Under it the government would spend almost the equivalent of the output of all the factories in this industrial kingdom. The factory pro duction under the 1935 census was valued at £2,806,000,000 (then about $14,030,000,000, W'hen the pound was valued at $5.00.) The amount to be raised entirely by taxation, heaviest in British his tory, is estimated at £1,234,000,000 $4,319,000,000), but the government’s still must borrow £1,433,000,000 $?, $15,500,000) to make both ends meet in the 1940-41 fiscal year. The British national debt already is £8,931,000,000 $31,258,500,000), or about $800 per capita as compared with the United,, States national debt of $308 per capita in 1939. Wholesale Sales Tax Sir John announced a proposed new wholesale sales tax the rates of which have not been determined and which would “reduce the de mand for supplies and conserve manpower.” Taxes were hiked on several other items, but the heavy income tax (Continued on Page Seven; Col. 2) ANNENBERG PLEADS GUILTY TO INCOME TAX CHARGES BUT JUDGMENT DELAYED CHICAGO, April 23. — m — >1. L. Annenberg, affluent pub lislier who once dominated a nation-wide racing news em pire, pleaded guilty today to a charge of evading $1,217,296 in income taxes but final dis position of the case was de ferred for a month. The delay in pronouncing judgment afforded time for a settlement of civil claims m negotiations through which eventually the government hopes to collect approximately $9,000,000 from the Philadel phian and some h,s many corporations. - . Annenberg, tall, gaunt and grave, entered a plea of guilty to evasion of $1,217,296 in levies on his 1396 incomes. That constituted one count of a aix-count indictment alleging failure to pay $3,258,809 alto gether on his earnings from 1932 to 1936, inclusive. The ad dition of $2,289,574 in penalties and interest brought the total sought to $5,548,383 and made it the largest criminal tax case on federal records. The maximum penalty on the count involving the guilty plea would be five years im prisonment or a $10,000 fine, or both. But Annenberg’s counsel, Weymouth Kirkland, intimated he had hopes for leniency when Judge James H. Wilker son acts upon the plea on May 23. At the same time, however, U. S. District Attorney William J. Campbell stated that “the government has not agreed to make any recommendation as to the sentence to be imposed.” Attorney Kirkland outlined his client’s position this way: “• . . My. Annenberg was influenced by the fact that any alternative would involve years of trying and expensive Iitiga tion. . . He hopes to dispose of the civil claims for taxes that have been made and will be made against him and the companies hi which he is inter ested. He further hopes that by taking responsibility upon him self so far as he can, this will be taken into consideration by the government and the court in connection with the charges pending against his associates and employes. “In the proceedings upon the imposition of the sentence, we feel confident that the absence (Continued on Page Seven; Col. 5) BITTER WARSHIP-PLANE WARFARE IS BELIEVED RAGING IN SKA GERRAK CONVOY IS ATTACKED Warplanes And Warships Engaged In Two Battles In Passageway DESTROYERS SIGHTED Powerful Allied Force Re ported Advancing In Di rection Of Hamar _ BY THOMAS F. HAWKINS STOCKHOLM, April 23. -- UP) — Fierce sea-and-air warfare, sparked by an attack on a German transport convoy, was reported raging in the Skagerrak tonight while Allied troops in Norway threatened Nazi positions on three fronts. The Stockholm newspaper Nya Dagligt Allehanda reported from Sweden’s west coast that warships and airplanes were engaged in two battles in the Skagerrak. From the roar of gunfire off the coast, it said, the fighting seems likely to prove the most severe in the two weeks since Germany in vaded Norway. Destroyers Sighted Many fighting planes were involv ed in the battles and at one coastal vantage point, 10 destroyers could be seen speeding past, all of them with their guns spouting. On land, menwhile, the newspaper Aftonbladet reported a battle in pro gress “at th edoor of Oslo,” in the sector from Elverum to Hamar and Lillehammer, about 60 miles north of Norway’s Nazi-held capital. These reports said a powerful Al lied force is advancing in the direc tion of Hamar. The Allied forces, al ready engaged in a widening series of encounters with the Germans, ap parently are heading toward a de cisive clash there. The Germans’ effort seems to be concentrated on cutting the railroad between Hamar and Andalsnes, Nor wegian west coast debarkation point for the Bi’itish forces, to isolate the Hamar sector. Important Junction Dombas, which the Germans have subjected to heavy bombardment and near which they dropped parachute troops, is an important junction on the Andalsnes-Hamar line. (Reuters, British news agency, said in London that British and Norwe gian troops are reported attacking north of Hamar for possession of the “gateway” to Oslo through the Great Gubrandsnal valley, and that British Norwegian pressure is forcing the Germans back from Elverum, furth er east.) Another major battle seems to be (Continued on Page Seven; Col. 3) MEET OF DISABLED VETS SLATED HERE Approximately 150 Dele gaes To Attend Sessions June 21, 22 And 23 The Disabled American Veterans ot North Carolina will hold their annual department convention in Wilmington on June 21, 22 and 23, State Commander George E. Pickett anounced in Charlotte last night. Between 150 and 200 deiegates are expected to attend the meeting. Norwood S. Westbroow, of Wil mington, D. A. V. official, said last night that no definite plans for the convention have been made, but will be started soon. The invitation to meet here was extended by Cecil Morgan, of the Wilmington D. A. V. post. — __ . - — ■■ - — T The European War Situation (By the Associated Press) LONDON—British battle for “gate” to Oslo; other sharp struggles north of Trondheim and in central Norway; tax in creases required for 10-billion dollar budget; war on whole German people — not Hitler alone—is urged by Duff Coo per. STOCKHOLM — Sea-air war reported raging in Skagerrak, and Allied laud forces threat ening German positions on three Norwegian fronts. BERLIN — Germany claims fresh successes at sea and in air while acknowledging that British are fighting on Norwe gian soil. PARIS—Allied war council, with Polish and Norwegian leaders attending, studies pos sible spread of war to Sweden and Yugoslavia. TOKYO—Japanese foresee Al lied concessions in return for ‘‘benevolent neutrality” to aid Pacific blockade; U, S. com plains of Japanese - enforced hardships on Americans in Tientsin. NORWEGIANS FACE NEW NAZI THREAT Swift German Troops Re ported Moving In On For ces North Of Oslo OSLO, April 23.—<-T>—A portion of the Norwegian forces fightihg' north of here were described in mili tary reports reaching German-held Oslo today as threatened both from the north and south by swift Ger man troops. The Germans, striking from Hone foss, northwest of Oslo,, were said her to be at Lillehammer, 85 miles north of the capital. Another Ger man group, swinging up the west shore of Mjosa lake from Eidsvold. yesterday reached Gjovik, about 60 miles north of the capital, and Nor wegians caught between the two forces were reported to have but one avenue of escape left—westward toward Fossei mfortress and the Valdres valley. The main Norwegian force north of Oslo appeared to be closer to the Swedish border, between Elver um and Rena, and likewise in dan ger of being trapped. Germans extending their line (Continued On Page Two) COOPER GIVES VIEWS English Leader Calls For Total War Against ‘The Whole German People’ WAR BUDGET IS GIVEN First Major Battle Of Nor wegian Campaign Begin ning Near Lillehammer By DREW MIDDLETON LONDON, April 23— —'The ifle of war on the hard northern lattleground boiled tonight into southern Norway and found Allied md German troops, alike far from borne, engaged in a battle of seem ,ng decision for the "gate’’ to Oslo end, perhaps, command of the in vaded nation’s destiny. At home, on the day of St. George, Britain’s patron saint, tha war front hardened, too. Alfred Duff Cooper, former war secretary and first lord of the admiralty, gave voice to the increasing senti ments of the “treat Germany rough” school of highly-placed Brit ish thought. Asks Total War He called the nation to a total war against the ‘‘whole German people”—not only the nazis — de clared ‘‘the German people” must be beaten in battle and warned them they need expect no sympathy if, afterwards, they come ‘‘whining and groveling” as he said they did at Versailles. But of more immediate concern to every one of Britain’s people was the £2,667,000,000 ($9,344,500, 000) war budet fogr the next fiscal year, as unfolded by Chancellor of the Exchequer Sir John Simon in the house of commons. While another uncommunicative communique from the war office pictured British and Norwegian troops as fighting together and re sisting ‘‘enemy pressure” in the south of Norway, unofficial British and neutral military observers pieced together this picture of the land war: Major BaUIe Starts 1. The first major battle of the campaign is beginning at the gate near Lillehammer where the Great Gudbrandsdal valley enters the southern plain. It is at Lilleham mer that the Allied columns must debouch from the valley if they are to strike across the plain at German-held Oslo. 2. A flying column of Norwegians and British has thrust southward from the Britons’ central-west coast landing places and, flanking (Continued on Page Seven; Col. 6) Germany Admits Direct Fighting Within Norway TWO TRANSPORTS HIT Germans Report British Are Driven Into Woods By Fire Of Their Planes BERLIN, April 23. — (.T> — The first admission of direct fighting between British and German land forces in central Norway came from authorized German sources today hut German officialdom, analyzing reports of additional air and nava.l engagements, adopted the attitude that “the more the British attempt to land in Norway the better we like it.” Nazi confidence was bolstered by news of the German bombings of Andalsnes and Namsos, Bx-itish de barkation points south and north of German-held Trondheim; Grong, railway point 30 miles west of Namsos, and Dombas, another stra tegic rail point 60 miles south of Andalsnes. The Nazis said that An dalsnes had been destroyed by an all-day air raid Sunday. Transports Hit In addition, DNB, the German official news agency, In reporting today’s activities of the German airforce said two British transports were hit by bombs of heavy calibre before reaching the Norwegian coast and “probably were unable to unload their cargo at their place of destination." In central Norway, the news agency said British troops again were targets of Nazi airmen with (Continued on Page Seven; Col. 4) } 1 10NAL WANT Ad ^WEElfe SPONSORED BY THE ASSOCIATION Of | NEWSPAPER CLASSIFIED ADVERTISING MANAGERS FLAT FOOT FLUVIUS Gnaeus Marius in ancient Pompeii scribbled the announce ment that he had a room to rent and posted it in a “prom inent place.” Read all about Gnaeus on an inside page of today's paper. National Want Ad Week calls your attention to the fact that today the most “prominent place” to make an announce ment is through the columns of the Star and News Want Ads. 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