Newspapers / The Herald-Sun (Durham, N.C.) / April 8, 1921, edition 1 / Page 1
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J n-t-iLD . tcdorlj teai I.J 1 !-':.'.:'- Ut ior Worth Carollnal tied weather Kridajrrand little change in tein- r EIGHTH YEAR. V DURHAM, N. C... FRIDAY, APRIL 8, 1921. " whers"1 Vllf I u anTmn A wl f ffirffiffNTS. DAILYrrgEVEN; CSItyS, SUNDAY WOMAN JUSTICE OK PEACE IN TERRIBLE PREDICAMENT, BUT ; GROOM SOLVES iiY OFFICIALS EXPECT ALLIES TO ACCEPT I5ELEM-w BOY MAY BECOME RULER OF HUNGARY WEfiTIOIVS WILUAMS GOES ON - j - ''y TODfOHlli) IHSTOFBOS He Declared the State Credit To Be In Fine Shap-Val-, liable Rail Stock, OFFER SOLUTION . Legislators Say A Special Ses sion an Increase .the In terest RateV R SOLDIER 1 Of Veteran' Service WITNESS STAND IN OWN DEFENSE NOTE'S PRINCIPLE That This Nation Cant Be Bound By Decisions On German Possessions. inistration Was Main Recommendation. OUND REPORT He Declared He Was Innocent Of Murder Case Goes To Jury Today. ONE OF THE TWO Both Sides Argued That There Could Be No Half -Way Verdicts. ..! Tolrf "Hie. President He fhought Solution Of Ex V'isting Trouble Wat Found. CARE OF THE . DISABLED Efforts To Impress Upon Sick and Wounded the Nation's Concern In Their Welfare $ To Be Made. (By Associated Press.) Washington. Anrll 7. Seven specific recommendations, chief among them the creation' of the Veteran's service administration to take entire charge of government relief work among ex-soldiers and to be headed by a director general, responsible directly to the Pres ident were contained in the report flub- mitted today to President Harding by his special commission investigating the case or veterans. Charles G. Dawes, of Cljicago, chair man of the commission, told the Pres ident as he handed him the report that he Jelieved the recommendations were sound and that they would prove a. sat lsfactory solution of the troubles ex isting in the present administration of soldier relief work. Early action by President Harding on the report is ex pected. Recommendation number one pro vides for the new agency, and gives it jurisdiction over the bureau of- war risk insurance, the rehabilitation divi sion of tne federal board for vocational education and such part of the public health service as may be necessary Jo core properly for disabled veterans, "it also asks that a director general assume charge of the new agency with full au thorlty to obtain necessary facilities when those already available prove In adequate This provision would permit the lease or purchase of hospital build lngs whenever the demand exceded the supply, Care is suggested In the -framing of new legislation creating the adralnistra tlon to avoid present inconsistencies of law affecting the three existing bureaus. Particuar requests made that no statu tory limitations be placed on the di rector general as to -the number and salaries of his, employees. Number three says that ponding the enactment of new laws. Secretary Mel lon, of the treasury, 'shall issue orders to the heads of the public health and war risk bureau, authorizing the latter bureau to take charge of the public health activities and personnel engaged in providing medical care for the vet erans. The effect wpu Id be to consnll ' date these-burcaws' under one head by executive order, without veiling -for congress to act or risk delay from .that cause. The next recommendation provides for. an immediate extension and utiliza tion of all government hospital facili ties with such mobilization of civilian medical services as may prove prac- tlcable, Anjmmedlate and continuous hospital building program is asked in the fifth ""'recommendation, which suggests that Secretary Mellon's committee, recently appointed to report on the sites for new hospitals,' be direced to report concern ing the type and locations of the re quired buildings It adds that approprl a' Ions should- be made available by the ccngress which convenes next Monday. The sixth calls for exertion of human izing, influences, to impress.rthe sick and wounded with the fact that the nation is entirely concerned in their welfare and rehabilitation. The last asks Immediate use of the $18,600,000 appropriated by the last congress for new hospitals. COM M ITTEESREPORT UNANIMOUSLY ACCEPTED (By Associated Press.) Chicago, April 7. Representatives of the farmers of the country In conven tion tonight voted unanimously to ac cept the report of the committee of 17 which provided for formation of a co operative agency to market tho na tlon's grain. The report was adopted after a two day fight in which various delegates sought to have it amended so thru pooling of grain by the farmers would he compulsory instead of optional as provided in the report. An amendment to that effect was defeated late tonight by a vote of 61 to 88. Another amendment, offered by Carl Williams, of Oklahoma, that the pool ing be made compulsory in states where wheat la the predominant grain, also wag defeated. WESTERN UNION SHIP CLOWY PUTS INTO PORT Miami, Fla., April -'7. The Western Union's cable ship Robert C. Clowry, which was halted several weeks ago in its second attempt to connect tne Mlaml-Barbadoes cable here after the sub-chaser 154 had fired a shot across Its bow, put Into port again toxlay. The Clowry came up from Key West. Asked tonight if another attempt would be made to link the cable, Man-4 ager W. A. Moore, of the local West ern Un.ion ffice, declared he was not informed. "The crew complained that they could pot get what they wanted to eat at Key West," he said, "so the skipper headed in here." Valuable Liquors Derroyed. Miami, Fla., April 7. Two hundred and twenty-five cases of champagne and other liquors shipped from Per rlne, this (Dade) county, and billed as tomatoes, sefzed Monday by federal authorities at Jacksonville, is said to have been brought by boat from the Bahama Islands and transferred at Per rine at night. The shipment is said to have been billed by a man from Chicago to himself in that city. The llquprs. which are said to have been worth $45. 000, were' destroyed by the federal au thorities at Jacksonville, dispatches from Jacksonville state. Mur 1 1 V 1)1 1 Miss Alice O'Neill, who has the dis. tintion of being the first woman Jus tice of the Peace in Greenwich. Conn. The principal work of a Justice of the Peace in Greenwich is marrying folks, as the old New England town is a famous Gretna Green for New York and New England couples. Miss O'Neill, who is still in her twenties, wondered what would happen at the lirst marriage rfhe performed. It has been tho custom of Greenwich Jus tices to kiss the brides. Should she uphold a precedent and kiss the groom? The first groom, however, de cided the question for her by gallantly kissing her hand. t Sixteen-Year-Old Girl Appears In Court Jo Have Her Troubles Adjusted. Atlanta, AprJl 7. 'Miss Johnny Pear! Pri'itt. a pretty 16 year old blonde, who has been married to two men in the past three days, today appeared before Judge George Bell in the Htipeiiir court to have her martial affairs straighten ed dm. and "earn if possible which man really Ui-her husband. Her .matrimonial venture started Tuesday when she was married to Paul tr. Mains, 26, of Miami, Fla., before County Ordinary fJeorge of . Decatur. When her parents learned of the wed-, ding they started annulment process ing in the superior court at Dsxtttur., the girl's father charging that Maiup had a wife and child in Miami. The sceoncl wedding was staged in the Pruitt home Wednesday afternoon when Johnny Pearl became the bride of Gooi-ko B. Davidson. t Atlanta, a lifelong sweetheart. ' Hardly had the ceremony been con cluded when deputies arrived at the Pruitt home and served on Mr. Truitt a habeas corpus writ demanding the sur render -of his daughter to Mr. -Mains. While the bride was being taken to the Fulton county jail. Mains also swore out a warrant against Davidson, charging he had married the wife of another. ' Judge Bell directed that the girt be released xo her parents, declaring, she should never have been taken to jail, and postjioncd the case unt'l tomor row to permit both sides - to present evidence in the charges against Mains. Mains . deelared he had been given an absolute divorce from his former wife in Miami and told the court he would produce a certified copy. David son did not appear in court.. ROUSING OF VOTERS IS BIGGEST PROBLEM Cleveland, April 7.-Rousing voters from indifference is the biggest prob lem facing the national league of wo men voters, Mrs. Maud Wood Park, of Boston, chairman of the organization, declared today. Mra. Park and the Oth er members of the board of directors and most of the -heads of various de partments of the league are here to at tend a series of conferences on unifi cation of ' laws pertaining to women, election laws and methods, women in industry, American citizenship, social hygiene and foodsupply and demand. These conferences began today ami will continue through part of Sunday pre liminary to the second annual conven tion of the league, which opens Mon day. Amendments to the national league by laws for final convention considera tion were prepared at today's meeting o: the executive board. CRANE UNDERGOES RIGID EXAMINATION (By The Associated Press) Nashville, Tenn., April 7. Worn al most to exhaustion by the rigid exami nation to .which he had been subjected by the United States district attorney, H. B. Crone limped to his seat upon the adjournment of federal court this af ternoon siending the greater part of the day trying to substantiate his claim o finnocence of the charge of em bezzling about $26,000 worth of platinum from the Old Hickory Pow der plant. Examination of witnesses In the case was completed this after noon and argument by the government and counsel for the defense will begin tomorrow mornfpg. Crone denied connection .with tho al leged platinum theft and the state ments of certain government witnesses that he originated and executed tho scheme of appropriating tho valuable metal. Reed On Way North Miami, Fla., April 7. Commanded Albert C. Reed, in charge of the sea planes which accompanied the Atlar tic fleet to Ouantanamo Bay for win ter maneuvifs. will arrive here at 4 P.M. tomorrow on his way back north. The seaplanes will follow and are scheduled to arrive here at 11 A. M. Saturday. MARRIES 10 INI lil THREE DAYS MANNING TO BE TRIED Solicitor General , Declared That the Negro' Farm Boss Should Not Escape. (By Associated Press.) Covington, Ga April 7. The fate of John S. Williams, accused of the mur der of 11 negroes, ifarm hands, will rest with a jury tomorrow. In even, dis passionate tones, the Jasper county planter, testifying in his own behalf, todav declared his "absolute . Inno cence" of the charge of murder and when court adjourned late today the trial had been concluded except for the .two closing arguments and the judge's charge. Williams will be either convicted of the murder of one of the men, 'for whose death he is specifically on trial, or he will bv acquitted, for attorneys on both sides argued this afternoon that there could be no half-way verdicts, and the defendant himself told the jury in so many words that the killings were "murder." A verdict of murder might be accompanied by a recommendation for mercy carrying life imprisonment. Clyde Manning, negro farm boss for 14 years on the Williams place, whose confession implicated the planter, was pointed to by Williams as the man hav ing a "probable motive" for tho kill ings. Charles C. Kinff, 'pleading for Williams' acquittal, told the jury that Manning, ignorant of the penalty fir peonage, had become alarmed at the federal investigation, and that tho evi dence indicated he was the only person who had. a motive for the killings. Mr. King assorted tho defense expect ed to rely largely on Williams' "alibi," which 'he said Williams had established "as far as -passible" by describing how he was at home the night the three ne croes were killed, and asserted the state had offerjd no legal corroboration of the testimony of a confessed accom plice as required by law. Graham Wright, assistant attorney general, pointed to certain testimony as corroboration and said the law leti it to the jury to make final .decision on that question. He' termed Manning incap able of planning and carrying out the crimes "under the eyes of Williams and his faniMy," and named Williams as the guilty man. Manning also will be put on trial for the murders, it was announced today the exact time to be decided later, and his attorney, E. Marvin Underwood, said he would not enter a plea of guilty. "Clyde Manning shall not escape," declared Solicitor General Brand In urging conviction of Williams. "I could not under the law permit him to escape. Manning had testified for - the state trat by Williams' orders the negroes were weighted down with rocks and thrown alive into rivers or knocked in the head and buried where they fell, and vv illiams, taking ihe stand -today briefly recited all he said he knew of the deaths of Lindsey Peterson, Willie Preston and Harry Price, three drowns ed the same night In Newton county. Ho is on 'trial for murder of Peterson and he did not go into the other cases. The defendant, accused by the state of "Georgia's most atrocious murders," has watched the proceedings calmly throughout the trial, even smiling once or twice, and today he was as cool as any of the spectators who packed the court room almost to suffocation to hear his story. These were the first criminal charges of any kind ever filed against him, he declared, in his 54 years of life, and told, proudly, it seemed, that his four grown sons were among the first to answer , the country's cajl to war. He admitted he might have been techni cally guilty of peonage as he had worked negroes who owed him money. He had so informed federal investiga tors when they first came to the farm, he addedi and also had declared ho al ways paid and fed the negroes. These agents replied that the negroes on his place were among the "best fed and clothed" they had seen, he declared. If he were technically guilty of peonage, "most Georgia farmers also were," he added. "I am absolutely innocent." he told the jury in conclusion,! as he reverted to the murder charge. The stale had rested earlier in the day with introduction of Rena Man ning, wife of Clyde Manning, and Sheriff B. L. Johnson, of Newton coun ty. In an effort to corroborate parts of Manning's etory. The woman testified tho negroes left with Williams, Man ning and Charlie Chisholm, the night they were last seen alive, as Manning had declared. Sheriff Johnson said Manning identified the three bodies found in Newton county and later con fessed and told where the others could be found. ' The negro's words were borne tout by Investigation, the sheriff eaid. - Williams was the only witness for the defense, appearing on the stand un sworn, which, under Georgia law, pre vented cross examination. The fact that no other defense testimony was added, 'permitted Williams' counsel . io open and close. No limit was placed an the time of arguments, and four attor neys spoke today. Mr. King opened for the defense, fol lowed In order by Mr. Wright for thj state, W. H. Key, of Monticello, Ga., for the defense, and Solicitor General Brand, for the state. W. M. Howard, former congressman from Georgia, will close for the prosecution tomorrow, making the first address of the day, and the final plea will be made by Green P. Johnson, of Monticello, chief counsel for the defendant. About three hours are expected to be consumed to morrow in argument. Charges were flung back and forth as the lawyers pleaded with the Jury (Continued On Page Two) DISAGREEMENT Officials Refused To Comment On Probable Action In Case Of Disagreement. ' SHANTUNG SETTLEMENT The Chinese Province Is Not A German Possession and So Is Not An Issue In Controversy. (By Associated Press.) Washington, April 7. Administration officials, it may be stated with authori ty, confidently expect the allied gov ernments to accept the principle re stated by Secretary Hughes in his notes of last Monday to those govern ments that the United States has sur rendered none of Its rights in the over seas possessions of Germany and that it cannot be bound by decisions affect ing those 'possessions made by the league of nations without its assent. There is reason, to believe "that the correspondence on this subject, which was initiated last November, wttl not be closed with the receipt of the re plies from the Japanese, British, French and Italian foreign offices. If the expectations of American officials are realized, the details regarding American rights will have to be worked out in negotiation. In the event, how ever, that the four powers do not find their way to an agreement wuh the American viewpoint there would arise a situation action on which officials re fused today to forecast. The Shantung settlement in tho peace treaty, which has been sharply criticized in this country, is not at is sue in the present controversy. It is ''.earned that the phrase ."overs?as pos sessions" in the American c mimunica tiens was used advisedly and it is point ed out that Shantung was not a Gor inan'JpTi.ssession. Kiao-Chau, a part of thai Chines-j province! was held by Germany through a concession from Uio Chinese government. The view c:f the Harding administra tion with respect to the Shatuung set tlement has noi. been stated, but this fiettjemcnt was vigorously opposed by the new administration leaders In the nenate while the treaty of Versailles was under cansiderati m by that body and was made the subject of one of the Republican reservations to the treaty which were adrpted. They Are Of Opinion Wednes day's Affair' Was An In side Job. (By Associated Press.) Chicago, Ills., April 7. Special Inves tigators sent from Washington In con nectlon with the theft yesterday at the Dearborn station of mall pouches con taining cash and securities believed to total more than $50fl,uou tomgnt were proceeding on the theory that the rob bery had Deen carried out by a national gang of mall thieves who obtained ad vanced Information of money shipments from postal employees. The investigators were convinced that yesterday's theft was an "inside job because the robbers sorted a oumUer of sacks of a mail truck in the station and selected only those which contained valuables. The same procedure was carried out today In another robbery at Sullivan Indiana, once the home of Postmaster General Will H. Hays, the robbers se lecting the- sacks containing money, although there was nothing on -x the pouches to Indicate that they contained other than ordinary mail. A score of persons were arrested to day In ' connection with the robbery here, but most of them were released. FOUR BANDITS ROB U. S. MAIL TRUCK (By The Associated Press) Cincinnati, O., April 7. Three un marked men held up a United States postoffice mail truck here tonlqht and forced tho driyer and a railway mail clerk to drive several blocks into an alley, where they were handcuffed to ehe steering wheel and the truck rob bed of three pouches of registered mail. The bandits evidently were familiar with the load. It was said, as they picked over more than 60 bags of mail and took only those containing valu ables. The value of the loot could not be ascertained. The pouches ' takerf by the bandits contained Incoming niail from 'Mem phis and points south. No trace has been found, of the thieves, who Walter D. Hubley, mal! clerk, and Joseph Arblno, driver, a serted, escaped In an automobile. Only meagre descriptions of the men were obtainable. MANY THRILLS WERE FURNISHED IN RACE (By The Associated- Press) Chicago. April 7. Several serious fist f'ghts and the theft of a lap fur nished the thrills tonight in the six day bicycle race at Dexter Park pavil ion. In which the Corry-McBeath team was leading the field by a big-margin at 11 n. m.. the 96th hour. The leaders had covered 1,511 miles, 8 laps, with the rest of the field one lap behind. ' Baton, of the Eaton-Kaiser team, and Corry each were fined for engaging In a fist fight on the track. Ministry RmlgiM. - Budapest. April 7. The ministry of count Paul Telcky hns resigned. AGEISWOBOI MAIL ROBBERY CASE IRtnrsCC -: '..V- Ofriro. . - " . . . . According io cable dispatches from Liondon, infornfo.ti.on rcp-irted.to com-- from a trustworthy source has been received that former Kmper :r Charln of Hun gary is willing to relinquish bis claim to the throne in favor of his son OLto, with Admiral H n thy continuing an Regent. The report further slap's -hat the En tente might sanction su.-h an arrangement. CLABO REARRESTED FOR TAKING BRIBE He War Rearrested After Be ing Indicted By Grand Jury Was In Senate. (By Associated Press.) Nashville, Tenn., April. 7. After his indictment today by the Davidson county-grand jury, Stato. Senator E. N. Clabo, of Sevierville, Tenn.. was re arrested by county authorities on a charge of accepting a bribe of $300 with a promise to change his vote on legislative matters. Senator Clabo wag seated in the sen ate . chamber attending the afternoon session of the upper house of the state assembly when officers called to make the arrest. Friends were Informed of the mission of the deputies and notified the accused legislator that he was about to be placed under arrest a second time. He left the senate chamber quietly and surrendered. Before leaving the capitoI; Senator Candler of McMinn county, Republican, held a conference with the accused leg islator and asked, the deputies that the prisoner be allowed to visit his counsel before going to the county jail. They refused to grant the request but as sured the senator the prisoner would be allowed to make bond and would be shown every courtesy. The indictment against Senator Clabo was brought about by Jeff McCarn, local attorney, named in the warrant as prosecutor in the case, who laid be fore the grand jury this morning the evidence he gathered against the sen ator before his arrest Wednesday. Judge J. D. G. Debow, of the county criminal court, ordered the prosecution of the charge to be conducted by the attorney general of Davidson county. Immediately after the arrest of Sen ator Clabo this afternoon, a resolution was introduced in the senate request ing that a committee of five be appoint ed by the speaker to consider and rec ommend what action, if any. be taken by the senate regarding .the charge brought against the legislator. At the morning session of the senate, Senator Clabo rose to a point of per sonal privilege, denying he was guilty of the charges brought against him nnd asking that the senate withhold judg ment until he had been given a hearing In the Nashville courts. JURY ACQUITS MEN OF MURDER OF JAPS (By Associated Press.) Norflok, Va., April 7. Four men charged with murder in connection with the killing of two Japanses sea men on board the steamship Kaisho Maru last Christmas eve were acquit ted by a jury tonight. The jury had been out 24 hours before it reached t: verdict. -v The men tried under an indictment whioh charged them with the death of a Japanese seaman who was killed on the ship "and buried at sea. A sec ond indictment, charging them with the death of a Japanese who died in a hospital here., is still pending, and will be tried. Commonwealth's Attor ney announced. Hate for oening of the second, trial has not been set. The men are charged with killing the Japanese in a fight that resulted after they boarded the steamship pos ing as officers with the Intention of seizing liquor which the members of the crew arc alleged to have hair. SPANISH STEAMER TOWED INTO PORT (By The Associated Press) Jacksonville. Fla., April 7. The Span ish schooner Santa Eulalia arrived here today In tow of the British steamer Sar olite, after losing her rudder and sus taining other damage when she encoun tered bad weather 22 days out from Manzanillo. Cuba, bound for Spain. The British steamer, en route from Tampico to Halifax, proceeded on Its voyage. A IS STICKS TO F Me Deccribed Perfectly the Ar rangement Of Rooms- In ' Elwell's Home. . Buffalo, N. Y., April 1 Two hours of .questioning tonight by New York newspaper men who had worked on the Elwell murder story and knew every de tail of the case failed to shake the story of Uoy Harris, who last night confessed to the local police that he and a coin panion murdered Joseph E. Elwell in New York last June. Except for some minor details, Harris. In response to questioning, described perfectly' the arrangement of the rooms in Elwell's ' home. He told again the story of how he and W illiam Duncan hired- bv a mysterious Mrs. Fairchild, went to the home of Elwell and waited four hours until he arrived. Then, Har ris said, Duncan fired the shot which killed Elwell. Under questioning tonight Harris said he had seen published in connection with Elwell's death a picture of a, wom an who, he thought, was the Mrs. Fair child mentioned in his story. All efforts tp get from him the name of this woman failed, however. He said he would not divulge It unless he was absolutely cer tain the woman of the picture was the woman who, as he said, had hired him and Duncan to murder Elwell. District Attorney .Moore said that Harris told a remarkably well-connected story of the murder. Before question ing the man, the district attorney had him examined by an alienist, who pr-- nounced Harris mentally normal. When shown dispatches from Bridge port, Conn., saying that "William Dun kin" had been In a reformatory since 1919, Harris said: "I don't know any thing about that. I haven't been In Bridgeport since I was a boy. The man who was with me was named William Duncan." As given by Harris. Duncan's descrip tion was: "Appeared to be an Italian, about 27 or 2S years old, five feet, 11. or six feet tall, weight about 170, medi um build, smooth face, brown eyes, straight black hair, has gold tooth in upper right jaw; flashy dresser: ire quentfl. pool rooms, nnd race tracks: is well known on Broadway between Her ald Square and Times Square." The chauffeur named as Jerry, who, according to the confession, drove the two men and the. woman to El well's houBe, was described by Harris as fob lows: "About 25 years old, 5 feet, 7 Inches tall; weight 140 to 150; light com plexion; smooth face; spoke with an English accent; drove a large six-cylinder limousine with winter top." New York, April 7. Officials Investi gating the confession of Hoy Harris to Buffalo police that he and a companion named William Duncan murdered Jo seph IS. Elwell, wealthy clubman and bridge whist expert, last June, tonight admitted that they were baffled. While they said Harris 'had shown Intimate knowledge of many details of the crime, so many of his statements conflicted with the actual facts In the case that It wa almost impossible to believe his story. Former Governor Charles S. Whit man, who recently began an Investiga tion Into the mystery that has pusiled police for nearly 10 months, said he was not ready to form an opinion as to whether the story was fue. He said he was interested, but if true it would up set every theory he had formed in the case. Mr. Whitman said he would let Harris talk for a day or two more, and then decide whether to interview him. Mrs. Elwell. widow of the murdered sportsman, declared tonight she had never heard of Mrs. Fairchild, who was said by Harris to have hired his companion and hiriiself to commit the crime. Mrs Elwell asserted she. "had little Interest In seeing the affair re vived" Mrs. Marie Iarsen. who was Elwell's housekeeper at the time of his death, also declared she never heard of a "Mrs. Fairchild." Mrs. Larsen found Kiiroll the morning of the murder, sit- tlna; hi an arm-chair clad only In his pajamas, and with a bullet through his head. TO MURDER WADE ISSUES WARNING Chief Of Police Of About 40 Cities Warned Against Wild Cat Stock Salesmen.' HERALD NEWS BUREAU. 402 Merchants Nat'l Bank Bid. By JULE a WARREN. Raleigh, Auril 7. In normal time there would be absolutely, no trouble in disposing of the state bonds, de clared Governor Cameron Morrison to day on the eve of his departure for New York city and other financial centers where he and Treasurer Lacy will seek placement of a part :of the bonds authorlaed by the legislature. North Carolina's credit -la In firm fhape, the governor declared. In fact It is one of the few ! states In the union which has liquid assets of suffi cient amount to practically wipe ou: the state debt. The state has a bond ed debt of about 1 1,000,000, ovr nirainst this liability the state. owns railroad property which it is es timated will bring at least im amount, In that It owns tne conuui- ing stock in the road irom i.nain. to Cioldsboro ana irora uoi Morebead City. Conservative oust ness men believe that the state's stoctt in these two roads would eaaly. brine; a sufficient amount to wipe out th state debt. Consequently any talk abcut the credit of the s;ate being In a precarious condition is foolish and absurd, in the opinion of the govern rr No other southern stale ha uch assets to off-set its bonded debt, and few others states In the 'union can make suoh a showing. Consequently there would be no. trouble In disposing of the bonds li normal times at a five per ' cent in terest rate. Even In the-je tlmej of distressed money and bond markets, when great . sums of the world wealth Is destroyed, the venior -hM hopes of being able to negotiate lou iit ndvantagoous Interest rates or rt Belling the bonds at a gooe price. Legislature Cant Help In the opinion of the governor a special session - of the .J? weuld be useless in face ot the pres ent difficulty. The trouble la J0 tutional rattier than legislative, and the constitutional trouble is In the limitation of the taxing power of the state. The vera nort""1 places no limit on, the ability ,". legislature to levy taxeffcThr ioutl. ern Btates, rewritlns thelr conjttl tions during the carpet placed a constitutional limit on lega tion in rrder to hold the wlld-cnt construction legislature o those day, and In practically all of .the aoutMr-i states these limitation ' clauses havrs been retained in the constitution. The governernors believea the levy of an advalorum tax of five cents, which Is the limit the legislature could levj. since two-thirds of the 15 cent limit must be left for counties, would hint the chances for the bonds rather than help them. The sale of bonds at a favorable figure Is predicted on tn-j ability of the state to raise the -money with which to pay the interest ami re tire the bonds, and the chancea for a sale are even better wne: the stale has not exhausted Its taxing reao-jrees than when It has levlea PH . it. Consequently tne gown be lieves the fact that the stfcte has thn right to levy a flveeent advalorum tax which, has not been4 ehaueted , will aid In -the sale of the. bond rather , than hurt It. Consequent- thero f no special good the special session f t the legislature could -v . Might Increase Interest Rate On the other' hand, member of the legislature who are In the city thf week, declire that If th governor anq treasurer find It iinposslb: to sell the bonds at a five per cent intertt iat-f the special session might meet and au thorise ati increase in this rate. That however, it is believed would not meet the general approval of the people, for while there Is a wide spread de mand for money with which to carrjr, out the progressive legislation of thf 1921 assembly, few people would be willing to pledge the credit "f the state for the next 30 or 48 year for bonds that will bear more' than By per cent interest, especially; In view of the fact that every financier Be lieves the rate will come down and the bond flmarket show marked improve ment in the near future. '; ,) Can Emilly Raise Meaey The governor believe and win , argue to the bond people of New York that the legislature ha levied more than is amply sufllclent to take care of the" Whole S50.OO0.0Ofl fn bonds, and no one contemplate selling the. full authorisation during tho rt ;. r The tax on automobile will bring In sufficient money to-pay, five per cent Interest on ISe.Ooo.OOe. and tha Inter est could be met f rora t ttl ourc-. without touching the other acjirce T revenue in North Carotin. In addi tion to these automobile taxes tho -state collect Inheritance- taxe. a . large amount of which I already due. and gets additional money f rom II- -reuse and f ranchlae taxea. I ""J ' will begin the collactieo of taxe from unearned Income, so that there is no trouble with getting a sufficient amount of money to; pay Interest n the bonds. Th-ese being tha real facta In the rase, according to the governor. North Carolina- fat no financial or credit crista that - la not common t" overy other state government , in tne . Unite Btatea. - . Whm Again Wid ler Insurance Commls"Kne"' Staeey w . Wade haa oet th following telegrtm to the, chief ot police of about 4 cltiej In ttiw state warning- then asainst wild cat, stock' salesmen: . - For .protection of : the people of your city I request that yoo be on r fOontUnued on Page twelve) . T .. i - - 1 : -1
The Herald-Sun (Durham, N.C.)
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April 8, 1921, edition 1
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