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LINNEY NOMINATION
FAILS AS RESULT OF
A NEGRO PROTEST
COMMITTEE, HOWEVER,
He Insisted That It Would Not
Be Fair To Mr. LInney.
SUBCOMMITTEE IS NAMED
Charges Signed By Five Negro
Politicians Transmitted By
Senator Johnson.
PROSPECTS GLOOMY NOW
Every Hepoblleaa Member Of the Ken
C ate Committee Vole To Reject
Nomination While Three Or
Four Democrats. Favor It.
Pillr Newi Bureau and Tflifripn Office.
The Htro Butldlnf (Br Utted wire)
Br THEODORE TILLER.
Washington. May 16. Because of
rharpes filer by negro politicians and
voters of North Carolina the senate
committee on Judiciary this morning
rejected the nomination of Frank A.
I.lnney to be. district attorney for the
western district of the state. After
taking this action the committee lis
tened to a plea by Senator Overman,
and mrreed to give Mr. I.lnney a hear
ing before reporting the nomination
adversely to the senate.
At this hour the prospects are gloomy
for T.lnney's confirmation. The Dally
News correspondent Is In possession of
Information that the Republican mem
bers of the committee were solidly op
posed to confirmation, that Senators
Reed, of Missouri, and Walsh, of Mon
tana. Democrats, Joined with the ma
jority and only three or four Demo
cratic members, including Senator
Overman, voted for a favorable report.
It Is also known that one Republi
can member of the committee asserted
he was willing to go to any length In
the senate to stop confirmation even
If Mr. Llnncv should oonvert the com
mittee -which appears Improbable.
This announcement would Indicate a
senate filibuster in executive session if
, it becomes necessary.
Charges laid before the senate com
mlt'ec this morning were transmitted
by Senator Hiram Johnson, of Cali
fornia, the man who is also on the
trail of David H. Blair, of Winston
Salem. Senator Johnson did not bring
up his own grudge against Linney
his actions at the Chicago convention
but merely presented the protes's
of the negro leaders of North Caro
lina. First Repudiation Of Harding.
Giving; the ehargei more than a
state-wida significance it develops that
the senate $oni'mttte na"for It on...
i k- tr th oris" ofJvthe- ' lcur-which;
addressed to President Harding' b.
fore he made the LInney appointment.
The President disregaroea me
and made the appointment anyway
and today the administration met wiwi
Its first repudiation by a senate com
mittee of a Harding nomination.
Objections of the North Carolina ne
aroea to the Linney appointment were
published locally in th Dally News
acme weeks ago. Nevertheless, and
although the charges were the same
the senate committee did not J'
text public today as It was considered
in executive el"- The protest
against Mr. I.lnney. however, concerns
Sn open letter which he addressed to
the women voters of North Carolina
. : ytn "hat there was no danger of
egro domination and undue negro In
fluence In the'state through the sue-
nf the Republican party.
C " this open letter Mr. Unney also
suggested that the white women v. -""."consult
with T. D. Warren Demo
cratic state chairman. and tell his
SiVnNocrnnrr!
o last fa as well a. all future cam-
-Srentir VnT had been
tanr.ertau.ly some of talk among
S't'.pSnT-tbrRep'u-o:
nean party in the south, and the recog
'nTtioVor the -better element and .o
on.
But. IT, today.
before
"iflnney and the Morehead organl-
Mr.
...r effectually noimcu
"hey cannot throw brick, at the negro
voter.
I'll fair. Says Oierans.
The anomalous situation of a Demo-
cratic member of the committee, Mr.
0 man. Pleading for at least . hear
Ina tor the North Carolina appointee,
was next presented. Senator Overman
r..gg"ted It was unfair to reject Mr.
I.inney forthwith without giving him a
ch.n to explain. The Repub lean,
nnally promised to hear Mr. Unney.
but they didn't appear enthusiastic
over the situation nor Indicate that It
would make any difference in their
,PTh'encomniiUee then named a ub
committe to hold the hearings. It
comprises Senator F.rnst of Kentucky,
Senator Cummins of Iowa, and Senator
(Herman. Since he halls from Ren
tacky which also has Its race question.
Senator Ernst may be perauaded to
etand for Mr. Unney, but In the full
Judiciary committee sentiment was
trongly against him.
Senator Uorah. of Idaho. Is under
stood to be one of the determined op
ponents of the Linney nomination. He
n l like the tenor of the letter of the
Republican state chairman at all. al
though Senator Borah Is aware of
racial conditions In the south. He,
thinks a man who is going to be dis
trict attorney should not hare winked
at violations of the constitution when
It comes to recording a negro's vote.
The names of five leadera of the race
in" North Carolina were signed to the
protest against Mr. Lenny aa submit
t..H to- the senate committee this
morning
by Senator jonnaon. ine
.u 1 . . . lll.hnn n W
signers
dnton
of Charlotte, who died recent-
W. Brace. Vr. A. M. fttvere.
Trof. D. C. Suggs or unuiliun i
1. gp. and W. H. Hannttm.
The committee read throughout the
ropy of ths letter aent to President
Harding aad Attorney General Daugh
eaty and agreed that Chairman Linney
had addressed the wrong sort of a let
ter to th women voter, of North Caro
line. On Influential RepuhMcaji sen
ator la said u have aald substantially:
I am In sympathy with the sooth m
. nrleavnring to work out Ha peculiar
r v-r robam.. llutr a man nominated
for district attorney who bas virtually,
(ConUnned M fag Sight.! I
cmrnKn as second class matte
maromcK. cbcencbobo. h. c
Got;. Morrow Calls
For Federal Troops
Frankfort. Ky.. May 16 Gover
nor Edwin P. Morrow late tonight
aent telegram to the war de
partment In Washington request
Ing that federal troops be sent to
the Tug river district which has
I eon In slate of virtual guerrilla
warfare for four days.
Governor Morrow's reqnest for
troops followed receipt of a mes
sage from Governor Morgan of
West Virginia containing! a de
mand by the sheriff of Mingo
county for dispatch of a federal
contingent. In his message Gov
ernor Morgan recommended that
Governor Morrow Join him In a
reqneat for troops.
STATE BANKS WIN OUT
IN TEST CASE BEFORE
U. S. SJJPfflE COURT
Reserve Bank Cannot Force Col
lection At Par.
BANKS TO GET EXCHANGE
Case Decided By Highest Tri
bunal Was Brought Up
From Cordele, Ga.
IT AFFECTS 16,000 BANKS
Included In Thenr Are More Than 100
North Carolina Rank Cm In Re
manded To Lower Court For
Further ProeeeJlnp;a
Dully Nwi Biirpau and Weppb 0fflf.
The Bt Building (By Uued wire)
Washington, May 18. A decision af
fecting favorably mor than a hundred
state banks in North Carolina, and
16,000 similar institutions throughout
the United States, was rendered today
by the United States Supreme court
which holds that country banks cannot
be forced to collect checks at par for
the federal reserve bank.
The decision sets aside the "collec
tion at par" mandate of the fedsral re
serve board and th several reserve
banks. North Carolina banks in par
ticular have been engaged for weeks
in a controversy with the reserve bank
at Richmond, the Tar Heel state banks
refusing to clear checks at par.
'-Tile test case came to the Supreme
omirt trvm AUjata federal reserve'
a ie i r i c t- on' appeci ay--mm American.
Rank and Trust company, of Cordele,
Ga., brought against the federal re-
serve bank at Atlanta. Several hun
.dred country banks in Georgia. Ala
bama and Mississippi were fellow
plaintiffs with the Cordele Institution.
When the issue came before the high
est tribunal the federal reserve board
entered the case as a "friend of the
court," and supported the order of
that board and the action of the At
lanta bank in requiring non-member
banks to remit collections at par. In
Its decision the highest court says
there Is nothing In the reserve act
which empowers the reserve system to
force non-member banks to collect
Items and remit at par and thus the
non-member banks will be allowed to
remit after deducting exchange.
Affeeta Eatlre Reaerve fir Mem.
A controversy similar to that which
has continued for some months In
Georgia has affected the entire reserve
system.
Showing the ramifications of the
collection at par wrangle, it is recalled
that only recently the sergeant-at-arma
and discharging officer of the
house of representatives declined to
accept as cash the checks of members
of Congress drawn on their home town
banks that were not members of the
reserve system.
This house official explained that
the banks of Washington and the re
serve bank at Richmond refused to ac
cept such Items as cash because in cer
tain localities in the sixth federal re
serve district country banks were In
stating on their collection charges.
The row was particularly acute In
North Carolina, whera the state and
other banks availed themselves of a
state law permitting exchange deduc
tions and refused to acknowledge the
authority of the reserve board to en
force par collections. Tar Heel mem
bers of Congreaa were "out of luck"
for a time In getting their personal
checks cashed In Washingtoa while
the Issue was being fought in the state
and federal courts of the Richmond
district.
Decision in the Georgia case will
cover all cases pending in various sec
tions of the country where the con
troversy between the reserve system
and the non-member banks has reached
the stage of legal proceedings.
Governor Harding, of the federal re
serve board, said tonight that the Su
preme court'decision wlM not, Interfere
with the present check clearing func
tions of the federal reserve banks, and
those banks will continue to collect
checks drawn upon those basks which
are listed upon the par lists.
"The opinion of the Supreme court
does not deny the legal Authority of
the federal reserve bank to collect
checks on non-memher banks by mak
ing presentations thereof at the coun
ter," a statement issued by Governor
Harding said, "but holds merely that
non-member banks may be eatltled to
relief if they can prove that the fed
eral reserve bank malevolently Intends
to accumulate checks and present them
In an oppressive-manner for the sole
purpose of inurlng the banks upon
which the checks are drawn.
In opposing the unit, counsel for the
Continued on Page Eight )
TIIK RAM.ROtl) LABOR BOARD
BBftl IT m.MBKBATIOWA
Chicago. 111.. ly ! B. M. Jewell,
president of the railway employes de
partment of the American Federal tan
of Labor today filed his final reply
lo the last argument preeeate to
the United Stales railroad labor board
by the railways In support of their
plea for a general reduction of the
wages of common labor.
The railroads closed their ease- May
7 and the represent Uvea of the em
ployes Jhad until today for final re.
buttaJ. Today the board began con
sideration of the ratre la executive
ewroa but r.s km not ayecteo' for
aoveraJ weekav ,
GREENSBORO," N.
NAVY DEPARTMENT IS
MUCH DISTURBED OVER
APPROPRIATIONS FIGHT
Aroused Especially Over Opposi
tion To Pacific Coast Bases.
IT MIGHT UPSET PROGRAM
Department Proposes To Con
centrate Entire Fleet In
Pacific Ocean.
THE DANGER LIES THERE
But In Order To Carry Out Theae plana
It la Necessary To Provide Greater
FaclIMlea To Care For Increased
Number Of ft hi a a.
Daily Nfwt Bureau and TalmiB Offlet,
Tfta llo sulldlu S LeaMd slrt)
By C. W. Gilbert.
(Copyrtibt. 1921. br rUladctoUa ruhlie Udaar.
Washington, May Ifi. The navy de
partmeftt is much disturbed over the
fight In Congress conducted under the
color of disaramant against approprla
tions asked by the navy, especially
those for improvement of short sta
tions and bases on the west coast of
this country. A particular fight Is be
ing made upon the development of a
supply base at Alameda, Calif. In gen
eral the senate bill increase appropria
tions for practically all the Facific sta
tions.
The object of the navy department
In urging these Increases is to equip
the Pacific coast so that the entire
American fleet can be maintained in
the Pacific. As it is now the fleet
which is at present in the Pacific Im
two and one-half times as large as that
which President Roosevelt sent there
on the trip round the world. And
facilities on 1 west coast are barely
adequate for i -
In all the p;ans that are being made
and in all the discussions of navy ques
tions here it Is taken for granted that
the whole American navy will be con
centrated In the Pacific within 90 days.
A conference of the admirals of the
Pacific fleet and the Atlantic fleet.
the Asiatic squadron and the Adriatic
squadron will be held here in Washing
ton in a few days. And it Is under
stood that this conference has to do
with naval concentration.
To Avoid Sensational Activity.
When the fleet now In the Atlantic is
sent to the Pacifc it will probably be
announced that it goes for purposes of
maneuvers, the efficiency of the force
requiring joint maneuvers. The ad
ministration wishes to avoid all ap
pearance of doing anything sensational
and especially to clear its action of
any International significance. But
once the Atlantic ships pass through
Panama canal they will hardly return
eastward unless some emergency calls
them back. The policy will be to make
the Pacific the sphere of their opera
tions In the future just as the Atlantic
has been' In the past.
Plans have been worked out for
bringing vessel! in need of repairs
ba-ck from, the west coast to tb JUt,
ccaeV since existing .western stations
are not equal to the demands that
will be made upon them and will not be
for several years after the appropria
tions now being asked and granted In
the senate bill are authorised. It is
believed that a united fleet can be
baaed In the west during times of peace
under plans for eastern repairs. And
for political reaaona it will probably be
necessary for a long time to use east
ern stations for repairs and building
since much politics revolves around
keeping eastern yards busy. Indeed
some of the danger to the western pro
gram of the navy springs from the
friends In Congress of the eastern bill.
, The need of obtaining appropria
tions for Pacific naval station de
velopment may hurry the transfer of
the ships in the Atlantic to the Pa
cific on the ground that an object les
son as to their necessity will be neces
sary to get the senate bill accepted by
Congress,
Not Directed at Japaa,
In official circles while It is gen
erally admitted that the concentration
of the navy in the Pacific will be the
policy of the future It is emphatically
said that this policy Is not directed at
Japan. The fleet would go into the
western ocean even if Japan did not
exist and even if there was no strong
naval power in the orient. The future
of trade and world development lies
rather In the Pacific, than In the east
ern ocean. The threat which Ger
many's naval ambitions held to the
peace of the world is past. No occa
sion exists now for maintaining a navy
in the Atlantic
Moreover, one remote possession
which Is threatened in time of diffi
culties, the Philippines, lies In the Pa
cific. The same considerations which
have led Kngland to guard with her
fleet the routes which connect the Brit
ish islands with her outlying colonies
and possessions lesds us to seek the
same control of the waters lying be
tween the United Slates and the Phll
ipplnes. FOUR NEGROES ARRESTED
FOR MURDER OF KELLER
Tlrw Arc la Jail At kartott. mm4 a
t'oarta la BrlasT "H At
Spartaafcary.
(BpMtl U ltv hwvt
Charlotte, May U Thrc. nrfroas
are-In th citjr jail and fourth b Ins
held In Spartans-urr. 8. c7 aa the re
sult of Inveslia-atlona of tha pollca
to Hie murd.r Saturday nta-ht of Gaorge
L. Keller, rrorer. he was passing a
dark spot on West Eleventh street on
his wsjr home.
De'ectlve D. B. Rradlejr. of Charlotte
police, today went to Spartanburg to
brine; back the nea-ro. a hobo who toM
the Blacksburc. 8. .. officers that the
nriro declared to him that he "played
hell with a white man In Charlolte
A reward of 1400 for the cap'ure of
tha slayers of Keller has heen oHered
by the city and county. Two hundred
dollars Is offered fer the capture of
each negro.
With the offer of city and county, a
personal reward offer of i0 made by
Chief Orr will be withdrawn.
IRDURR OW WAT
H A V F. Jl Hl-r:l TO DEATH
Florence. Ala.. May 1 Bloodhounds
trailing th. slayer of Mrs F. Y. 8eay.
a bride of a few months, who waa
brutally killed here last night, follow
ed the tracks of some person lo the
top of a 7S foot biuff on Cypresa creek,
which oeerhangs 'iilue Hole," a deep
suctioa hoie in the creek.
It la said that body of any per
son drowned in the nolo ever aaa keen
recovered. Officials eapress the belief
that the murderer of Mrs. Seay Jump,
d to his death from the bluff to the
whirlpool below.
Mrs. aay Isst seen alive laat
night when she left the home of her
father accompanied by her husband
who h not been found.
Mm. Hear ni the daughter ef A A.
Willlaiss, promUient r"lorace citisaa.
C TUESDAY MORNING,
N
SITUATION IN FRANCE
Briand's Critics Charge Terms
Of Treaty Violated.
SHARP DEBATE IS LIKELY
Col. E. M. House Cables From
Paris the Anti-Briand
Views.
BAVARIA WILL KNUCKLE
Quirk Refusal By Bavaria To Disarm
Home Guards Has Not Developed.
Bavaria Willing To
"t'o-operate.
SsmIiI Cable t, Ball, Una.
Bt rOI,. K. M. HOl E.
' (foprrlibt. 1921, 111 rblladeblll. Fublie Lnttif.)
Paris, May 18. Acceptance by the
Germans of the reparations ultimatum
Is developing an interesting situation
in France. Critics of the Brland gov
ernment are contending that the Ver
sailles treaty is not being enforced and
that the agreement of Paris of January
29 has been substituted and that it Is
such a modification of the Versailles
treaty as is not acceptable to France
It will not be necessary for the gov
ernment to go before the chamber of
deputies for ratification of the agree
merit, because tha reparations romtnis
sion has registered the will of the su
preme war council In the matter of
reparations and under the Versailles
treaty that is all that is necessary in
order to make It binding. The meeting
of the chamber next Thursday, after a
vacation of four weeks, will be open
ed by a discussion which will lead up
to a vote of confidence In the govern
ment. Tills vole probably will not be
taken until sometime the following
week and after that seems likely to
be an acrimonious debate covering sev
eral days in whleh Andre Tardleu will
take the leading part. In this diB
cussion the views of the various politi
cal leaders will have full expression.
While French opinion is divided, as
yet In the allied and neutral countries
there Is a feeling of great satisfaction
that Premier Brland has been able to
bring Oerniarjy to terms. However
there is still an Influential group In
France who believe that the promise
of the tlermans to accept the rep
arations demand Is of no more value
than the German acceptance of the
Versailles treaty and the promise to
carry out its provisions. They see
nothing but further delay, a delay
which will be to German advantage and
detrimental to French interests.
It Is believed by this group that It
would have been better not to have
stopped at the Kuhr but to have gone
directly to Berlin and have dictated
to Germany from there. On the other
hand there is an influential group
who believe that almost any settle
ment Is better than a continuation
of the uncertainty of the laat two and
a half years. In any svent, It seems
clear that the, amount Germany will
pay to Krancs will not bs much more
than half the eost needed to restore
tha devastated regions. . At the mo-
ment France is much more Interested
In getting the billions from Germany
which she feels are properly due her
than in any other question, and what
ever help we may be able to 'give to
ward pressing Germany to fulfill her
treaty ohllgallona will be more appre
ciated than any other thing we can
do.
The ehances are that tne cnamDer
of deputies will give the Brland gov
ernment a substantial vote of confi
dence, but if It should not that will
not alter the situation as far as the
sum that has been fixed for Germany
to pay and which she had agreed to
pay. It will merely give France a
government which sympathises with
the group who believe further occupa
tion of German territory must be made
In order to enforce the terms of the
treaty. In the event President Mlller
and should be called upon to select
some one to form a new cabinet, It may
be either K. Vlvlanl or M. Barthou.
Clemenceau Ik taking no part in tne
controversy. This ruggea oin maie.
man Is still In good physical condition.
He comes buck from his tiger nuniing
expedition In India refreshed rather
than wearied.
it l. the British prime minister
Welcomed the disappearance from pub
lic life of his colleagues l lemenceau
..H Wilson. I'ntil now It has left him
alone In power a power which had
come to embrace a large pari oi mi
ih. There has been scarcely a ques
tion of international Importance which
could be settled wltnoul me anru-n
f the British prime minister, oui ne
n now no longer hold this power
alone, for he has to reckon In thr
future with Aritlde Brland.
BAY MIMA II A NOT BEPI'BK.D
TO l)lABH Hliwe, .
If .III CaMi I, Dally
(CajijtlfM. IMI. tr nussfUois rublle Unr.l
Berlin. May If .Bavaria's anticipated
Pnr.,.Bi m rtinarm her self-defense or
ganisations es provided In the allied
ultimatum which Germany unreserved
tv .iin.il has not as yet heen made.
Meeting the Initial flnancial obligations
and the punishment of war criminals
are not expected to cause immeaiair
difficulties at least not insurmounta
ble onn But on Instantaneous reiusai
to disarm and disband the home guards
which have heen the subject or many
note, axehana-ed bstween Germany and
the allies, had ben predicted from Ba
varia.
All Dartlss In the Bavarian met. ex
cept the aoclallsts and communists op
pose accepting tne auiea ummsium.
nilmarUl because of the disarmament
ncovl.lon N But today a dispatches from
Munich confirm yesterday's reports that
(he Bavarian government was willing
o eo-operate wiln te leoerai ao.e.n
rnent in carrying oot the agreement,
atid has offered the s.l!led officials free
access to fhe rocords of th. defense
leagues. Premier ron Jvahr, who con
sistently Insisted that Bav.rla would
net give up her rifles, aad Herr Scher
Ich. leader of th. self-defend, sltendcd
a meeting of the executive committee
of the Bavarian people s party, and did
not object to a resolution to support
the federal government In It disarma
ment program It la pointed sut. how
ever and this may be the explanation
for the sudden change from open de
fiance) to meek submission that it
might be f-.und that the leaders have
not sufficient -ontrol over the l"i M,
men enrolled In Iheie orpantratlnni to
compel them to give up their arms
The suggestion has beer, made that tn
th event this proves true, the home
guard be placed under a French leader,
which antomatlcally would make the
members resign. The Bavarian Wit
tenberg diet eeewiinly has accepted
ftermany's pledge to disarm in good
faith, for it t.. em. ken out the spntw
priatlon of l.i'lt marks f..r t ie up
keep nf the home guard, front t 1
year's sudget.
MAY 17. 1921
Mail Compartment Cars a Success
n
ok:'' Sift &T .-jS
Rii a-
Here Is the latest in mall carrier, a compartment car for ?'
heavy mail, such as newspapers, catalogues, etc. The compartment ears are
reeufar flat cars with six separate compartments. I'.ach compartment may
beKremoved ea.lfv by a crane'al Its destination This will save much tlmo
in eliminating side tracking of cars to be unloaded. Tills photo, niado In IUi
Chicago railroad yards, shows the poslofflce departments first compart
ment car being unloaded.
Crystal Block Coal Company
Head House At Rawl Is
Fired Upon.
ONE WOMAN DOES 'HER BIT'
Williamson, V. Va , May 16. Firing
on the Crystal Block Coal company
head house, at Rawl. W. Va.. broke out
early tonight according to reports re
ceived here by Captain J. R. Backus,
at state police headquarters. It was
the first disorder reported during the
day In the Kentucky-W. Virginia bord
er trouble zone. The shots were fired.
Captain Backus said, from the Ken
tucky mountains He added that the
shooting lasted only a few minutes.
Shortly before the report of the
shooting at Rawl was received. Cap.
tain Backus had sent a message to
Oovernor Morgan at Charleston, say
ing that git wns fluUst but that the sit
uation was "distinctly threatening all
along the line."
An Assootated Press correspondent
had traversed the trouble gone from
Rawl to Sprlgg with Captain Backus
and a detachment of atate police an
hour earner without hearing a shot.
Evidences of the battles of the last few
days, however, were plentiful at Rawl,
Merrimac, and Hprlgg. Houses and
stores In these towns were riddled with
bullets, windows, mirrors and show
cases were shattered.
A coat hanglnft In one house in
Sprlgg In which six men and two wo
men took refuge from the fire, was
found to contain seventeen bullet holes.
The eight persons escaped Injury, al
though the house had been shattered
A pretty young woman in a silk
dress and a Muck picture hat was
around "doing her lilt" with the min
ers at Merrimac, who have been bat
tling with men concealed In the Ken
tucky mountains opposite here. She
Is Mrs. Rosa ('line, wife of G. C. Cllne,
mine foreman Tor the White Star foul
company, and if :i member of the Ken
tucky McCoy family of Hatfield -Me
Coy feud fame.
While Captain Backus and his men
were present Olfne ordered a train of
coal run from the mine to the tipple
This, he said, hod drawn fire from the
Kentucky hills every day since Thurs
day. As the little motor train rum
bled from the mine with the motorman
lying prone, Mrs. Cllne. rifle ready and
bandoliers of ammunition slung over
her shoulder, ealmtv took up her posi
tion with forty riflemen, prepared lo
answer an attack from the mountains
No attack was forthcoming, but Cllne
declared pfou'Ny that his wife had
taken part In answering every attack
made on the town. "I'm not afraid,
and every rifle counts" Mrs. Cllne said
MIIt;o At THnHfTI: AtJAlN
AK FOB FUnKHAI, TROOP
Charleston. W. V.. May H. Declar
ing that the situaUIOn in Mingo county
Is "a smouldering volcano with gn
eruption . all the more imminent" be
cause of expected demonstrations next
Thursday, the 8rst anniversary of the
battle of Matewaoj Mingo county au
thorities tonight agwln asked Governor
Morgan for federal troop..
Th appeal, tn the form of a tele,
gram, snd signed liy Judge R. l.
Bsllev of the Ming circuit court;
Sheriff A. C. Plnson and fi D. Stokes
prosecuting sttorney, ks given out from
th office of the governor, follows
"Absolutely no oharta for the bet
ter In situation here' fines arrival of
the Kentucky militia Suspension of
firing regarded by best 'jiOftpd and im
partial officers and cltli.nl as but tem
porary and further o.re mo
mentarily expe-ted. Will evend to
points not here!,, fore aft.eied and l.e
attended by :r.ater le of life- Imw
le.s force unrestrained h presence .f
present .mull fore 'of K-mu.-kv mili
tia and West Virgin. a m"
stabulary and present quiet ointrv
and not enforced. leadly warfare
will Instantly follow any r. .J or f in, led
violation of allered nrmistlne arranged
Haturday n'gkt hot wen. OelhsVrents
at Blaekserry City snd Allburn and
even If tht hold, onlv small section
of a ld-mlle battle front is affect, d.
Firing on Merrima. W Va. from Ken
turky side renew I ' night and
continued for two hour. Itep'irts f. r
slot that michers of r n 'run. oil.. r
cal fl.Vi' ia.e b-en K'l "it"
sect on end that utd. r -r m. n
.re in I.. 121 ig Mi " l"''l' .
tire bijr-1- f l'irujl ?1 i" l
smoulder rc v ..!.. ' ' .t. Vruj.tH.r.
ail the inort imir.m. nl be - i' ' '
pee'ed d conn rai ions Tnur-.isv v. :.:. h
I. tb- first snn:vrery "f tr.e batti. at I
Matewan. Keportr. from whatever
aniir tt at .I'liaticn i" roi h.ghlj
critical .re erroneous Hid n.u.t iiv.
mr,,, ul' r o.r n.o! n .-. "Ut !"-;
a ev..p pre-.,,.- "' f'-l -al !r.-..
wn., .1 1 Mil.t .UlW.l U Hi"
slant sf KU. '
Dar !T-T, ir.os ru ".,.
IMPORTANT DECISIONS
Increased Value Of Capital Asset
Cannot Be Added To "In
vested Capital."
INHERITANCE TAX ISSUE
i By Auoriited FriM.
Washington,- May 16. Through de
cisions of the Supreme court today, the
government won two Important vic
tories in controversies Involving Inter
pretation of Income provisions of th
revenue acts of 1918 and 1917.
Increased value of a capital asset
could not be added to "Invested capi
tal." the court ruled In the appeal of
the La Belle Iron works, an Ohio con
cern, from a ruling by troasury offi
cials, but on th contrary must b con
sidered In computing the profit
corporation on which ths ware
to be assessed. In the other decision,
the court ruled that inheritance or suc
cession taxes paid to a state could not
be deducted from tha "net estate'
taxed under the. revenue act.
The La Bells Iron works suit was
characterized by a high Rovernment
official as "the most important leal
suit affecting: federal finances to arise
In several decades." The specific point
at issue was whether ore lands In the
Menabi rsns;e of Minnesota, purchased
for $190,000 prior to 1904. could be re
turned hy the Iron company at a new
valuation nf $10,000,000 in 1917, the
Increase being: covered hy a stock Issue
and carried under invested capital.
"We think the meaning of the act
as to 'Invested capita I' is perfectly
clear," said JuhUcp Pitney. In deliver
ing the court's decision. ' It
defined thin term to mean '(1) Actual
cash paid In; (2) the actual cash value
at the time of payment of anscts other
than cash paid in. and 3) paid In or
rarned surplus and undivided profits
used or employed in th buslnesn.' but
not to include nionry or other property
borrowed
"When spcakinB1 of the capital of a
busiiiPB-i corporation or partnership,
mirh as the act deals with "to invest'
ImportH a laying out of money or
money's worth with a vlmv to obtaining-
income or profit from the conduct
of a bublnetis,
"In order to adhere to this restricted
meaning and avoid PXHRKeatpfi valua
tion, the draftsman of ihe art resorted
to the teat of including nothing but
money, or money's worth, actually con
tributed or converted tn rsi-hange for
nhartNr of capital Mork. or actually ac
quir"throiifih thp husinf activities
of th& myrfnrn ion or pari nerahip. and
coming i ah extra hy way of increase
over ths original capital nlock. How
consistently this was carried out be
comes evident as the section (Sec. 207)
Is examined in detail.
"The same controlling thought is car
ried Into the proviso. Kvery line Mjows
evidence of a lesMsiat ive purpose to
confine the account to such itt'rns as
were paid for In Block or sruires spe
clnVally lushed for It. and to their val
ik w "at Hrni of nurh payment ' '
llutidrrdfl of millions of dollars In
tax- hung 'iipnn the decision, there
being hut few partnership or corpora
tions whJcH did not have on their books
an item showing material sums result
ing for appreciated value of capital
assM
The Inheritance tax case was brought
to the .Supreme court by executors of
the eMate of th late .1 Hsrur-n Purdy
of New Tork. No lens tIHn rive states
had collfeied tax-i on the turnover of
parts cf the eKtalr in thrir Jurisdic
tion, "ani the t ,eciit.,rn claimed thui
all Itn-i niims ."hoiiM he deluded he-
lore rdral tax-s on th- "net ntate"
e.p.ild b legally rt.mpiilrd Itrfunal of
tat co)i,ct.,rs to agree to this nt.-n-tion
wa upheld in turn by the treHK
ury df-purtnifnt ami f. deral court
sri-l today, hy ih Su.,.nie r.mri
I tie lift pfctate" eoiitfMnphtT.-d in I h
act. the opinion said, w t h ntire
residue rf-maiinng tn (,,. diftl rihuiod
aftr t ti immed ia te . r , r e fu. h it.
IiJTi t a I expeni. n ai,, i)(-t.tH hH,j h. . n
tn t Iinpi.utt ion of It, ' f l i-r .i I t;. ,
did not imeiff Hhii tht- rmhi of th.
lt- tr, , .,) r.. ,.,,,,,.,, , u ii .....
itn l..rd. rt- of a d.-.-. ...nt. th- , .,r!
ru.. d
IHKI.K s UnWW
mm: kin i i- i nii uMi
Huh ' v.. -. sj
Those ki' i'd m-.-r 1 n- f Inp. , 'f
Rlake ari Mr ! I'ap'atn t 'r
Cornwall'. it-1 . h.. i. -
b'le fJi- par uir' r,i t-g arv! I ft
to n S i.rifin'h t,riic.T" M ' 1
PRICE FIVE CENTS
COUNTIES WHICH HAVE
CUT VALUATIONS GIVEN
A CHANCE TO REPENT
Equalization Board Postpones
Action For 30 Days.
A LETTER TO REGISTERS
Commissioner Watts Gives All
the Counties Opportunity
To Reconsider.
BANK TO REMAIN CLOSED
Morris Made Permanent Reoelrvr Of
Taomnarlllo loatlmfloa gt. Dixon,
Of Montana, nlarussra North
Carolina Flanlnsr.
n, OnniMi ruilr nam lisiaa.
SOS Marcaaals Natlaaal Bask (Mj.
Br W. T. BOsT.
Ralelch, May II. Ravaluatlsn r-
celred a Jolt today at th m.tin of
th stat equalisation board, and It
day will pass befor nation I taken
on horisontal reduotlon and rYlun
tions already reported to th atate
board.
The next-toers who had tipped ff
the pasans from the most ssnotlfled
spot In the holy plaoes, are not dis
mayed by the bad ruessss. Ordinary
rplk do not pretend to know what I
coins; to be don with th conspicuous
ly decr.t and oouragreon plao of tax
legislation which th revaluation sot
n-as deslrned to be. Th ohronloler
who Is not a nezt-toer has had ts as
his noodle. And It ha been as diffi
cult to comprehend how any stats or
ganisation can r.pudlst revaluation
which waa so handaomly rstlfUd by
tha 1920 vote, a It Is to undsrstsnd
why prohibition Isn't prohibiting th
prohibitionist.
nut the board did not not today snd
those who have been ruesslng snd
telling others to guess that revalua
tion will be Junked, have a right ts
guess 90 day more. Nevertheless, th
mighty kirker who uaed their copper
toed tootsies on th general ssambly
have gone to work snd work, vn as
love, cures all things. Only 44 coun
ties In the atste ssked for sny relief
at all. Home of the desired only 10
per cent and one went to 60 per oent
reduction In farm land. And undoubt-
edly some of these oountles ar asham
cd of what they hav dpn. Carteret
has asked to reconsider snd In ths let
ter which Commissioner A. D, Watt
today send to the registers of dsed
In the 100 counties, there Is a sugges
tion that "othera may wish to" re
consider their course. The colonel is
giving all a chance to repent.
Aa Vnanecesafnl Fight.
With the awlnr away from th radi
cal and Indefensible outs In county
value attempted by enemies of re
valuation, there Is no gue.alng how
near to stsncllng pat th equalisation
board may bs. Ther ar county of
ficials In the state right now who say
that the values aa of Msy, Kit, ar
not high enough. Th vary faot that
over half th counties asked for no re
lief at all shews that they w.re oon
sokms of exemption from taxation
long In years and In favoritism. Home
of them ar paying this year theee
excesses a a sort of revaluation ' be
cause the principle of the law was right
and la half the stat. th vmlu were
Just. Forty per cent of th Voting
population has been exempted by a
large household allowance and It I re
called now that the rankeat antl-re-valuatlonlata
w.re those who asked the
amendment of the law whereby the
state retifrn to the 125 exemption In
lieu of 1,100.
The thing that has balked the repu
diation of revaluation so long Is the
schools. Nobody has risen to explain
how aounty which cuts It real estate
down half ran meet its school er Its
institutional needs, Horisontal -reductions
might reduce taxes on realty, but
they would not raise revenue necessary
to rum And the attorney general long
has held that the state must maintain
the six months school term. Whenever
the individual counties undertake to
get six months of school without pay
ing for It, the state will buck. And If
anybody get frightened and start
any trouble, h will hav to push It ta
its logical conclusion and amend ths
state constitution by repealing th sit
months school amendment. And about
that time the cloven hoof of the kicker
win be exposed and he will be no more.
That Is exactly (he trouble with this
repudiation of revaluation. 6ne must
declare honeat valuations wrong and
mendacity the wear. That's whst It
had been until the year 11.
Will Meet Klr.t Taeaday.
Hereafter ths hoard of equalisation
will meet the first Tupaday In each
month and discuss Its work. Moan
while the hoard awaits county action
and leaves open all question another
month, it would appear that Grand
old Man Jlufe Dotighton was guessing
about right when he surmised that
littift. would be done to hurt revalua
tion. The state is repenting snd the
lune Jon of Watte, Lee and Manning
will ho easier than It would have been
tori")'.
This letter soes to the several reg
isters of deeds:
"Hear Hir: At a meeting of th
state board of equalisation held today
it appeared that a few counties had
not reported their action aa required
by law.
"Home of the counties bad reported
a honsontai reduction In land values,
others had reported a revaluation of all
(Continued on Faga Eleven)
RPKt'iAi. arasioi or OOPBT
TO BE Hr.M) AT AHKVILLB
Anhevllle, May H Hue to the fact
Diet aiiout ZOO cases, most of which
sr.: uiidi-r th. prohibition laws. re
main on the do. ket of the United
Slates district co;irt. western dtstri. t,
which were not reached during the May
term cloeinc today. Judse K. rales
Wcltli has announced that a special
eoeinn villi convene here July 1. A
few . tl cases invoKlnsT lrs:e amounts
will t- h.nrrl at the special term,
tr'oreeast By Mate.
Virnitiia Kair Tuesday; Wednesday
elou.tv 'Aith rising temperature.
Noi;(i frfroiir.a I'artly cloudy in in
tern r, nhM'ltle.l on 1 ho coast Tue-wl.yj
w , .in. nl.iy ui.oelllnd with rising Ism-
1 ... ii I'sroimi. (ieoraia: Unsettled
T -. :i in. I w . -in. iay. probably
. .,..!-. n.! I lie c,.st , ire.li northeast
, . . ,.-T v. 1. K
, , T . -! . f.lir. w.rmrr Ih
u ilr.. s.l.i v u-iseuied
. .,- Ti..!-iar lir. warmer;
,r..har y un.tt.ed.
... .,' ; Tuesday partly cloudy!
. ..i.rrt in extreme north portion;
v.lt.edjy parity rloudy '
K.,' Texas Tuesday Increasing
r n.:.l;n..x warmer in the interior;
V e Inclav unaettl.d.
.n Tes- rarl'v . Icoi-iy T'leMa.
.,.,I.mIi.v I.,, a .h'Hrr. in trie panhaa
.... iiro,., in li'.tlr pvrlloa.. Vlf C.1A.
tiat gti rally laia.
i t
I