North Carolina Newspapers

TOWS M IF You Want All tha WEATHER twltln Today "v. - r :'r VHT YYIV VO 1 Oft vL. AAl . i4u 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