The Week in
Washington
A RESTMK OF GOVEKNMENMENIAL
HAPPENINGS IN
THE NATION AX, CAPITAL
V.'ahington, Nov. IT?Congress beg::i3
its extra session in an atmosj
here of political confusion and discussion
which subjects any attempts
forecast results to heavy discounts.
The best opinion here is that
the acts of the special session will be
governed more by tile members' own
judgment of national needs than by
;he desire of the administration for
he further promotion of socia! and
economic reforms.
Business Troubles First
fno first need, as many leaders in
both senate and house see it. is to
vu?uci?, xncre arc indications
that the administration. too,
is keenly aware of this need. When
he called congress in special session
president Roosevelt did not list tax
lav/ amendments in the immediate
program of legislation. Farm legislation
was No. 1. But that was several
weeks ago, and in the interval
a threatened business depression has
appeared, with breaks in the stock
markets and other signs of business
unrest
While the administration docs not
accept full responsibility for the
market slump aggravated by the
foreign war situation and other economic
factors beyond American control,
it takes it seriously enough to
not laugh it off but make a careful
study of the facts.
Taxes Are- Blamed
The first remedy upon which there
seems to be wide agreement among
the members of congress is for repeal
or amendment of tax laws
which nave been found, in practice,
to slow down the operations of business
and industry
The two tax laws most severely
criticised by business men are the
capital gains tax and tax on undistributed
corporation earnings. The
capital gains tax is of pre-Roosevelt
origin. It taxes as income certain
increases in an individual's capital.
If a man buys property, tangible or
ir. securities, his profit, if any and
as income for that tax year In
beyond certain exceptions, is taxed
higher brackets this lax is so steep
as to amount to practical confiscation.
Why the Speculator
This is naturally discouraging to
men who usually risk funds to
launch new enterprises. Such risks
are necessary. Without proof that
a new business will be profitable,
the public cannot honestly be invited
to invest. If the speculating investor
loses, the public has been
safeguarded. If he wins, he expects
adequate rewards in the form of
profits.
But with the government taking
as high as 75 per cent, of earnings,
men who have capital to invest usually
decide to play "safe" and put
surplus funds into government bonds.
This strangles new business, curtails
expansion of business already under
way.
The other tax which is blamed for
a large share in the business recession,
the undistributed profits tax,
was written into the 193 revenue uct
at the urgent insistence of the President.
It provides that corporations
earning profits in any year must distribute
them to their stockholders as
dividends in that year, instead of
holding them as reserves or using
them to expand or to pay off bonded
debts. Corporations failing to
make such distributions are taxed up
to as high as 26 per cent of the
amount.
Soaking the "Bad Boys"
The purpose of the undistributed
surplus tax was two-fold. In part it
was designed to punish a few large
corporations which had built up
large reserves for future expansion,
but whose controlling management
had incurred the displeasure of the
administration. The economic justification
was the assumption that, by
paying out surpluses in dividends,
in dividends, the incomes of stockhf>l/1pr<3
TtTSllllsl Ko inpr?aaorul and aomW
be taxed at higher rates, thus bringing
additional revenue into the treasury.
It was estimated that this tax
would produce $800,000,000 a year of
new revenues.
It not only has failed to produce
anything like the anticipated revenue,
but according to the hundreds
of business men, industrialists, investors,
bankers and economists who
have appeared before the sub-committee
of the house which is studying
tax matters, the undistributed profits
tax has proved a serious obstacle
to business improvement and expansion.
The way in which all business enterprises
have developed in the past
Is by "plowing back-' profits into the
business and the present tax penalizes
that.
Tux Changes Are "No. 1"
Somewhat reluctantly, the administration
has accepted the truth of
the arguments against the capital
gains tax and the undistributed
profits, and Roswell Magill, assistant
secretary of the treasury, has
been working with the house committee,
helping to shape revisions
and amendments in those and some
other taxes widely complained of.
WAT
An In
i VOL. XLTX. NO. 19
Conference Speaker
MISS LAYINIA KEYS
MISS KEYS SPEARS!
AT WELFARE MEET
i District Welfare Conference |
Held Wednesday at First
Baptist Church
j Miss Lavinia Keys, regional rcpre- ,
tentative of the social security j
board, Washington, D. C.. was the j
outstanding feature of the North-j
western district welfare conference !
held at the Baptist church here yes- 1
i. iday. Miss Keys' subject was "A |
j Forward Look in Public Welfare in I
j North Carolina." Approximately 200
! welfare workers representing sixteen
j northwestern counties were in at!
tendance UVlOll the e?~?nff?r.^nrwhioli .
got under way at 10 o'clock yester- j
day morning.
The annual message in the morning
session was delivered by Miss
Mary O. I,ir.ton. president of the |
Association of County Welfare Super- I
inter.dents of Public Welfare. Following
Miss Linton was 'The County
Welfare Superintendent at Work,-'
presented by the Guilford county
welfare department. The "Open
Forum was led by George I. Stanhury,
chairman of the Guilford
county board of commissioners.
Other features of the morning program
was an address by Mrs. W.
T. Boat, state commissioner of public
welfare, on "The Development of
an Adequate Program of Public Welfare.''
The closing address of the
morning was by Nathan H. Yelton,
director of the division of public assistance,
on the subject, "Public Assistance."
Dr. B. B. Dougherty, president of
Appalachian College, presided over
I the luncheon meeting at one o'clock.
Counties in the Northwestern district
are Ashe, Surry, Rockingham,
Wilkes, Forsyth, Alamance, Stokes,
Davidson, Alleghany, Watauga, Yadkin,
Guilford, Davie and Randolph.
Play At Elkland High
School Friday Night
On Saturday night, November 20,
at 7:45, the students of the Elkland
high school will present as their annual
fall play, "A Ready Made Family,"
a gay comedy in three act3.
The usual admission charges will
prevail. And there will be string
music by the local young folks.
Professor James J. Miller cordially
invites all patrons and friends of the
school to attend. The proceeds of
the play will go toward buying
much-neded books and equipment for
the school.
C. L. SHUPING
IS PONDERING
SENATE RACE
Greensboro, Nov. 16?C. L. Shaping,
Greensboro attorney, said in a
statement tonight that he was devoting
serious consideration to suggestions
that he become a candidate
for United States senator in 1938.
Representative Frank Hancock recently
announced hi3 candidacy for
the office in opposition to the incumbent.
Senator Robert R. Reynolds.
WOMANLESS WEDDING
There will be a womanless wedding
at the Valle Crucis public
school November 23 at 8 o'clock.
The program is under the auspices
of the Parent-Teacher Association,
and an admission charge of 8 and
19 ceDts will be charged. The public
is invited.
Almost unanimously senators and
representatives predict a change in
at least the undistributed profits
tax, and Chairman Vinson of the
sub-committee of the ways and
means committee lists it as "No. 1"
'on the legislative program.
- ''TO1
AUG.
[dependent Weekly News
_ BOONK, WATAUGA COUN
CHAPPELLGETS
DATA ON TENANT
FARM PROGRAM
Land Purchase Loans Not to Be
iu Every County at Present.
But ReliaViHtation Loans Are
Available in Every County-""
Paul J Campbell, county rehabilitation
supervisor in charge of the rehabilitation
program of the Farm
Security Administration in Avery
and Watauga counties, has received
from regional headquarters an announcement
listing the names of the
newly appointed state FSA advisory
committee and explaining the new
ruuerai program to aid rami tenants.
The state committee, nominated
by FSA Regional Director George S.
Mitchell of Raleigh and appointed by
Secretary Wallace, to assist in carrying
out the tenant land purchase
loan program in North Carolina Is as
follows: Dr. Clarence Poe, editor
Progressive Farmer, chairman: I. O.
Schaub, director of agricultural extension
and dean of the School of
Agriculture, State College; T. E.
Brown, state director vocational education.
Raleigh; C. W. Alien, Guilford
county tenant farmer; U. ?.
Leudeke,, New Hanover county; Josephus
Daniels, editor of the News
and Observer: W. M. Bacon, Durham
county l oaeco farmer; J. Paul
Davenport Pitt county commissioner,
and J. G. K. McClure, civic lef'ter
and active in mountain counties'
Farmers Federation. Vshevilte. t
Tenant purchase loans will 'be
made to aid tenant families to purchase
and improve family siged
farms and to make a better living
by the adoption of improved farm
practices. Each borrower agrees Un
accepting the loan to follow approved
crop rotation and farm management
plans 3Uitcd to the community
in which the farm is located.
The tenant purchase program
will be administered in the field in
conjunction Willi FSA's rural rehahilitof
inn m i unri'i CIV,) Iaq ri C emtllk
loans and farm debt adjustment activities.
In the counties, the program
will be carried out by county
rehabilitation supervisors of 'f hi
rami security administration who
also will serve 03 executive secretaries
of three-man,voluntary allfarmer,
county advisory committees.
County committees, with the
advice of county farm agents, will
examine applications for loans, appraise
the farms applicants propose
to purchase, and recommend applicants
who have the character, ability
and experience necessary for successful
farm ownership. County
agents will also be expected to cooperate
in farm management advice
to the new purchasers.
Applications will be filed with the
county supervisors, but county offices
will not be ready to acdept
formal applications for tenant purchase
loans until county committees
have been named and the state advisory
committee has recommended
the counties where tenant purchase
- ..rill V.^ mo.-ln *V?ic vonr Rf>.
luaiia win uc jhouc
cause only 410,000,000 was appropriated
for the first year for the entire
United States, funds will not b
sufficient to make loans for the first
year in more than a limited numbei
of counties.
The counties in which tenant purchase
loans will be made in this state
will be determined by the secretarj
of agriculture upon recommendatior
of the state farm security advlsorj
committee. Hie state advisory com
mittee will also recommend member!
of county committees.
Although land purchase loans arc
limited, regular rehabilitation loan!
for crop production, livestock anc
I equipment needs are available ii
every county to worthy farmers anc
tenants who cannot obtain suitabli
credit elsewhere, the announcement
concluded.
*l?HE D06 FOLLOWS
THEE FOR THE CRUMBS
m THY rgV2?ET[^P
iTji
Gone Reese, 10-year-old 4-II C
pound Hereford steer which won fii
the recent Asheville fat stock shoi
ey on this baby beefCONGRESS
MEETS
IN EXTRA SESSION
President Places Farm and
Wage Bills Before Taking
Care of Industries
Washington, Nov. in.?President
Roosevelt suggested to the newly
convened congress today that some
of the tax burdens 011 business should
Ije lightened, but he presented his
Capitol Mill leaders with a vexatious
problem by omitting to ask for
Immediate action' on the recommendation.
Endeavoring to carry out his
wishes for "early" legislation on such
subjects aB crap control and wagehour
regulation, they encountered
' an insistent demand in both houser
a.. . , . .. - - .
- uiac quicit sr.eps ot caner. co /KM]
' business out of its present difficulties.
Whether the demands would reach
such proportions as actually to de:
lay the President's immediate program
remained to be seen.
The chief executive's recommendations
went to congress in a special
message shortly after it met in response
to his call for the special session.
a call which went out before
the current industrial recession began.
Aware that many members were
disposed to measure the value of
prospective legislation in terms ol
assistance to business, the President
. presented his proposals?crop control,
the wage-hour bill, govemmenl
i reorganization and regional planning
?a measure which would give such
1 assistance.
( He acknowledged the industria
decline, spoke especially of "lighten
ir.g inequitable burdens on the enter
prise of small businessmen and re
! ferred to the crop control and wage
: hour bills as measures which woulc
maintain and stabilize purchasing
power. Government reorganizatio:
and regional planning he called "es
i sential tools for the whole task.''
' "For the sake of the nation I hopt
i for your early action," he said, ir
' conclusion.
1 Receipts of N. C.
Baptists Increase
' Wilmington, Nov. 15.?M.A. Hug
J gins, executive secretary of thi
State Baptist convention, said toda;
' receipts of the church in Nortl
Carolina had gone up $70,000 the las
year, representing the largest in
crease since 1920.
Secretary Huggins' financial re
port indicated a saving the las
year of $11,500 brought about by :
refinancing program enacted by th
convention last year. Under thi
plan debts of the convention were re
iinancea at lower interest rates upo;
recommendation of the genera
board.
Football Tickets
Are Now Availabl*
Coach Flucie Stuart tells Th
Democrat that those students wh
desire to attend the Appalachian
Catawba game in Hickory Frida;
should purchase their tickets befor
leaving Boone. The tickets are avail
able at both drug stores and at th
college book room, and if they ar
bought at Hickory the price will b
considerably higher. Mr. Stuai
expects some several hundreds froi
the county to be present for thi
grid encounter.
MOO
Year Eighteen Eighty-Eigh
pAY. NOVEMBER IS, 1937
vIZE WINNER jj
lub member, of Vilas, and his 650- c
est place in the light-weight class at j ^
iV. Gene won $29.50 in prize mon- j _
! t
AN APOLOGY
Due to the fact that The Demo- ' '
crat was moved this week, and the i
snl>se<|ueiit confusion and dinar- I i j
I rungeincrit, it. has been impossible j .
j to fabricate a newspaper of an j: 1
acceptable type. Many items of (;.
! interest have been unavoidably j j j
left out, and the publisher regrets J : ^
! exceooui^ly thai there should
have been an interruption in
i service. By next week we hope
j wo shall have the. plant arranged
j to such an extent that the nor,
j ma I newspaper service shall be
| rendered.
BOONE III SCHOOL:
: BAND PROGRESSING
Great Interest Manifested by 1
Young Musicians in New j
Organization
Tile young musicians of Boone
high school arc progressing nicely,
both individually and as a group.
The students are manifesting a
strong interest in the new band, and !
possibilities for splendid organization
arc unlimited. The enthusiasm
is said to be amazing; it is also spon
laiauuji.
The band is wei! balanced as to
instrumentation as can be found in
' any new- organization.
Although the formal registration
'r period has ended, those who still
| wish to join the band may do so.
Following are the members of the
( Boone high school band:
Trumpets?J. B. Hagaman, Jr.,
Blanton Miller, Robert Ix>vill.
Clarinets?Laura Ruth Hagaman,
Heien Winkler, William Wilson. Ted
J Hagaman.
Fldte?Josephine Miller.
' Xylaphone?Caroline Miller.
1 Mellophones?A. Y. Howell, Jr., A.
E. Hodges, Jr.. Vera Norris.
Trombones?Greer Hodges, Gene
" Bingham, Baxter Howell.
1 Baritone?Lester Miller.
Bass?Charles Rogers, Jr.
Drums?Blaine MiUcr, Tom Beach,
Palmer Blair.
MANUEL CHURCH
Manuel Church, for the past several
years caretaker of the Snyder
6 estate at Blowing Rock, died Novemf
her 13th at the age of 65 years.
1 Funeral services and interment
1 was at the Laurel Fork Baptist
church in the Aho section Sunday
afternoon by Rev. G. Sexton Buchanan
and Rev. Bob Shores.
t bk. ?i... ,? i *....
oui vivuig aic uit nuiun, iu-io.
I I Lizzie Church, and the following
c sons and daughters: Granville, Ben,
3 Hub and Kent, and Mrs. Ella Kent,
" all of Blowing Rock. There are three
II brothers. Wincey and Pleas of Lell
noir Miles, of Buffalo Cove: three
sisters, Mrs. Sallie Adams and Mrs.
Arthur Hodges of Newton, and Mrs.
Vertie Storie of Catawba
i MISS STAHNES IN HOSPITAL
Sttesville, No. 13.?Miss Mabel
c Starnes, associate secretary of the
o training union department of the
l- Baptist State convention, was transy
ferred by ambulance from Davis hose
pital here to Norbum hospital in
I- Asheville. She sustained a fracture
cd back and bruises in an automoe
bile accident near Mocksville Octoic
ber 18. Her condition is improved,
t but she will remain in the Novburn
n hospital for about seven weeks. The
is transfer was made to A3heville because
her home is there."
I AT
Vjlil JL
it
$1.50 PER YEAS
1TREETS TO BE
LIGHTED FOB THE
HOLIDAY SEASON
ferchanis Flan io Inaugurate
Christmas Shopping Season
Early in December; Stores to
Carry Outstanding Array of
Gift Items
The Christmas shopping season
rill be officially opened on Decerner
At, when iuc 2?oone merchants
wssociation and the New River I/igrht
; Power Company wilt work coperatively
to make the shopping
is trie t a maze of bright lights and
winkling stars. Christmas trees are
d be scattered here and there and
he town will take on a holiday air
/hich is expected to draw shoppers
rom all the surrounding counties.
The merchant# gathered at the
ur.ior Order hali Tuesday evening
met representatives of the power
orr.pany pledged complete co-operaion
in the lighting of the shopping
listrict. At the same time it was
ixplained, the shops of the city would
>e filled with the most outstanding"
irray of gift items ever shown in
his territory/ and that a coniprehenive
publicity program would be
aunehed to better acquaint the peo>)e
of this and the -surrounding tcritory
of the advantages being ofercd
holiday buyers. The local
lewspaper will carry full details of
he Christinas opening the first week
n December.
REVIVAL MEETING
WELL ATTENDED
Throngs Hear Rev. Mr. Ilozzcllc
in Impressive Sermons at
Methodist Church
The revival meeting which began
it the Methodist church Sunday and
ivhich will continue throughout the
week, is drawing an Increasing attendance,
and the sermons being delivered
by Rev. C. E. Rozelle, of Gastonia,
have brought about much
favorable comment. The services
will come to a. close with a vesper
service Sunday afternoon at 4
o'clock. Subjects of sermons for the
remainder of the week art- as follows
:
m^iiicauu/ 1 lie .am ill me acDllar."
Thursday.?"Everybody Can Be
Somebody.''
Friday---Special service for young
people, "A Question Paul Asks Three
Times."
Saturday?"Tire Strangest Thing
Jesus Ever Did."
Sunday morning?''Why I Go To
Church."
Vespper, 4 p. rn.?'The Old Book
in a New Eight."
4-H County Council
Met Here Saturday
The 4-H County Council met in
the courthouse here Saturday afternoon,
November 13. The council is
composed of all officers of the 4-H
clubs of the county. The meeting
was called to order by the president.
Miss Margaret Perry, of the Bethel
4-H Club.
IIIC ill at pal L VI l J It' mi-t'ung was
devoted to a business discussion. "Hie
group discussed the importance of
making some money to send the
4-H Club delegates to the annual
state short course at State College
in July.
A short program followed the
business meeting. Joe Brown of the
Deep Gap club, gave an interesting
talk on his experience with feeding
and showing his grand champion
baby beef.
Miss Elizabeth Bridge, home demonstration
agent, explained in an
interesting way what the 4-H Ciub
girls were planning to do in 1938.
R. H. Hamilton, assistant county
agent, outlined the boys' 4-H Club
work for the coming year.
The following clubs were represented
at the meeting: Bethel, Valle
Crucis, Deep Gap, Green Valley and
Todd.
BETTY AND BOB
Betty and Bob, internationally
known radio artists, whose programs
over WGN, Chicago, have
been particularly popular with local
radio listeners, came to
Boone last week, stopping at the
Caro-Jean Inn and had many
words of praise for the mountain
region they traversed. Betty and
Bob promise that they wfll return
for a more extended visit during
the coming summer.
.