THE ALAMANCE GLEANER
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VoL LXV GRAHAM, N. C., THURSDAY, APRIL 20, 1939 No. 11
Weekly News Analysis ;?
Axis Adopts 6Confusion9 Plan
To Force More Concessions
By Joseph W. La Bine?
EDITOR'S NOTE?Wbtn opinions art
txprtssed ia thtat columns, tbty art tboaa
of tbt newt analyst, and not ntctaaarily
of tha ntwspaptr.
Europe
-t- Almost forgotten by war-mad
Europe this month has been little
Albania, whose conquest by Italy
really started the cauldron boiling.
While Benito Mussolini quietly made
the tiny Balkan state part of King
Victor Emmanuel's monarchy, Eu
rope became a frantic checkerboard
of moves and countermoves in which
harried France and Britain seemed
badly outmaneuvered. Biggest news
came from the Balkans, where
democracies concentrated on Gre
cian friendship while Premier John
Metaxas quavered under threats of
Axis invasion if he continued hob
nobbing with Britain. Finally, al
GREECE'S METAXA8 ^
Britain ummic* Italy oven mi ear.
though British Prime Minister
Chamberlain offered a weak "guar
antee" of protection to Greece and
Italy, Premier Metaxns took pains
to proclaim joyfully that Italy prom
ised to respect the Greek frontier.
This, he said, symbolized a "new
period of Itsjian-Grefk relations,"
but it was merely. Symbolic of how
lesser European states, one by one,
are bowing to the Axis rather than
accept British "protection."
By mid-April the post-Albanian
crisis had subsided but another was
plainly in the offing. Newly
strengthened, Italy and Germany
are expected to jab soon at any of
20 possible points, confusing the
democracies so badly that all dic
tator demands will be granted.
Among possible attack points:
Spain. The civil war is over but
Italian troops are still arriving in
defiance of the Italo-British Mediter
ranean pact. The excuse is a "vic
tory parade" on May 2, but shrewd
old Field Marshal Heqri Petain,
whom France named.fts first envoy
to Burgos, has returned in disgust
to explain that he itas sndbbed and
treated insolently, and that General
Franco is a tool fof the Axis. If
this is true, Italy or Germany could
attack France's southern border,
British Gibraltar or French Algeria
from bases in Spain
Mediterranean. Gaining nothing
by howling for French Tunisia in
northern Africa, Italy has changed
I 1
her tactics, reverting to silence. But
several German troop trains have
passed through Italy bound for
Italian Libya, potential operations
base for a Tunisian campaign.
Balkans. Italo-German thrusts
converge here, focused on Rumania,
Greece and Turkey. Docile tools of
the Reich, Hungary and Bulgaria
have massed troops on Rumania's
border, threatening to strike if King
Carol gets too friendly with Britain.
Yugoslavia is neutralized, surround
ed by Hungary, Bulgaria and Al
bania. From the latter point, and
from Rhodes other of
the Dodecanese group, Italy could
strike at either Greece or Turkey.
Northeast Europe. Poland, fearful
of invasion yet jealous of her inde
pendence, risks German invasion
from north and west as the price
for a military pact with Britain.
Also to the north are Lithuania, Lat
via and Estonia, tools of the Reich
and potential points of invasion into
Poland. Likely sources of trouble
here are Danzig, which seeks an
nexation by Germany, and the Po
lish corridor.
Western Europe. Mysterious Ger
man troop movements have brought
reinforcements on both sides of Bel
gian, Swiss, Dutch and Danish fron
tiers, any of which might be crossed
in a brisk German coup.
Result. Though forced by public
opinion to stiffen, Mr. Chamberlain's
government still hopes to woo Italy
from the Axis and make peace by
appeasement. Mr. Chamberlain will
not declare war, which is the only
alternative to a stronger foreign pol
icy if the government would remain
in power. This failing, parliament
has become so hostile that Anthony
Eden, ex-foreign minister, is an ex
cellent bet to succeed Mr. Cham
berlain when the next crisis arrives.
Domestic
In New York marine underwriters
boosted war risk insurance. The
treasury announced $385,434,000 in
gold fled to the U. S. in March,
while $49,000,000 more arrived in
two mid-April days alone. At Rome,
Mussolini Mouthpiece Virginio Gay
da wrote in a caustic editorial for
his Giorpale d'ltalia: "The United
States should heed timely advice
before those European nations (Italy
and Germany) which have been
chosen as targets by America, are
forced to occupy themselves in the
same spirit with American internal
affairs." Back in Washington from
Warm Springs, where he had prom
ised to return next fall "if we don't
have a war," President Roosevelt
heard two cabinet officers (Hull and
Morgenthau) warn that a European
war is likely unless effective curbs
are placed on Nazi-Fascist threats
to the world economic structure.
What his seemingly casual remark
' . . r * ?" ''
intended, the President later ex
plained was that "we" meant not
the U. S., but western civilization.
While a Gallup poll was reporting
that 65 per cent of the U. S. popula
tion favored boycotting German
made goods, congress was busy cre
ating a foreign trade program that
would fight the Reich with Its own
weapon, namely, barter. Its gist:
The U. S. would trade wheat and
cotton surpluses for such strategic
materials as tin and rubber. Since
neither Italy nor Germany can fur
nish tin and rubber, the U. S. would
be joining the Stop Hitler bloc eco
nomically by dealing primarily with
Britain and the Netherlands. More
over the move would jibe with
"cash and carry" neutrality?being
debated simultaneously in the sen
ate?because the barter plan would
give "nations which have control of
the seas" access to American sup
plies as provided by the controver
sial Pittman resolution. Britain and
Prance are those nations.
Taxation
Time waa when the ambitious U.
S. mother wanted her eon to be a
banker. But nowadays the hand that
counts money keeps far less of it.
Today's ambitious mother should tu
tor her son (or daughter) to enter
the motion picture industry. At
Washington, the house ways and
means committee received its an
nual list of top flight U. S. wage
earners and their salaries for 1937,
disclosing that Movie Magnate Louis
B. Mayer led the pack with $1,396,
503 ($1,161,753 as production execu
tive for Loew's, Inc., $134,750 as vice
president or Metro
Goldwyn - Mayer).
Second place went to
Loew President 3.
Robert Rubin, $651,
123; third. Publisher
William Randolph
Hearst, $500,000;
fourth, Loew's N. M.
Schenck, $489,602.
Of 63 salaries top
ping $200,000, an
even 40 were report
ed by movie work
ore H l shoot
Louis B.
Mayer
cinema star: Greta Garbo, $472,499.
Highest paid radio star: Uaj. Ed
ward Bowes. $427,817. Highest paid
industrialist: International Business
Machines' Pres. Thomas J. Watson,
$419,398.
One consolation for bread-and-but
ter workers is that the more a man
makes, the more he pays the gov
ernment. Sample: More than $800,
000 of Louis Mayer's $1,296,803 prob
ably went out in federal taxes. On
net incomes of $80,000, the govern
ment gets 17.7 per cent, or $8,869;
on $1,000,000 it gets 67.9 per cent, or
$679,044. Often heaped atop this
levy is a. state income tax, like
New York's, which ranges from 2
per cent of the first $1,000 taxable
income to 7 per cent of all taxable
income over $9,000.
Pan America
In late March Argentine oflfcials
reputedly discovered that Nazi
agents were undermining their coun
try. Papers unexpectedly printed a
facsimile of the letter Germany's
Buenos Aires embassy had written
to the Berlin foreign office, saying:
"We are able to annex Patagonia."
Hardly willing to surrender a rich,
unworked section comprising one
third of Argentina's territory, police
dug for dirt, soon discovering a well
organized chain of Nazi centers di
recting the work of German agents ,
throughout the nation. Alfred
Muller, chief agent, was arrested
and charged with plotting agaifist
the state's security. More raidi in
land disclosed more Nazi commu
nities, and after three weeks' prob
ing it became evident Germany had
probably committed a blundering
tactical mistake.
Reasoning: Alone among the
larger South American nations, Ar
gentina has favored German barter
commerce. The rest of Other
America has eschewed it, knowing
that Nazi political and military
agents work hand in hand with Nazi
tradesmen. Having discovered a
Nazi threat to its security, Argen
tina is already clamping down on
German imports, ready to Join her
neighbors in a solidarity declaration.
Thus the Patagonian incident fits
perfectly with President Roosevelt's
often-experienced dreams of Pan
American unity.
Meanwhile, several th oils and
miles away, Ecuador is worrying
over the chance that Germany may
seize the strategic Galapagos is
lands, which lie 1,000 miles south
west of Panama, and which Cali
fornia's Rep. Edward V. Izak re
cently wqpted the U. S. to purchase
as a naval base.
Aviation
Soma 4,100 miles southwest of San
Francisco and 3,390 miles northeast
at Australia, Just south of the equa
tor, are Canton and Enderbury is
lands, the former named for a Mas
sachusetts whaler wrecked there in
1894. Both islands went officially
unclaimed until March, 1038, when
President Roosevelt saw them as a
vital link in U. S. defense and a log
ical base for trans-Pacific aviation.
When Great Britain disputed the
claim it was announced last August
that both countries would use the is
lands for commercial aviation, but
not until recently was a formal
treaty signed. Its 90-year provisions:
U. S. and British administrators will
reside there, exercising powers to
be determined by consultation;
American interests will build an air
port, to be used by British aircraft
in return for a fee.
Pacific aviation is boomed by the
pact, for Canton and Enderbury lie
only 1,890 miles from Hawaii, direct
ly on the route a ship would take
to Sydney. Australia. Canton boasts
a quiet lagoon nine miles long and
three miles wide, ideal for planes.
But aviation to the contrary, many
a congressman was dubious when
asked to ratify the Reason:
If Britain were involved in war, an
attack on British piupeily in the Pa
might tofct the U. S. to
the islands, thereby getting its own
feet In the International puddle.
Bruckart't Washington Digest
Time Has Come to Pay the Fiddler
New Tax Sources Must Be Found
Supreme Court Decision Opens Way to Tap Salaries of
Federal, State and Local Government Employees;
Never Has Nation Had Such Gigantic Debt.
By WILLIAM BRUCKART
WNC Service, National Press Bldg., Washington, D. C.
WASHINGTON.?Court decision*
as a rule are difficult things lor lay
merj to understand. True, moat ev
eryone who hears or reads an opin
ion by a learned justice will know
what the result is?whether one side
or the other wins. But, generally
speaking, the public as a whole fails
to understand the full importance
of a decision. It is not their fault.
Comparatively few persons are
trained in law, and a good many of
those only believe themselves to be
lawyers.
For that reason, as well as the
fact that many persons do not have
the time or the opportunity to exam
ine court decisions, I have been won
dering whether it is clear exactly
what happened when Mr. Justice
Stone recently tead the decision in
the case involving taxation of fed
eral and state employees. No doubt,
most persona realized that Justice
Stone had ruled there can be taxa
tion of the salaries of federal employ
ees by state governments and that
the federal government may tax the
salaries of state officials and employ
ees and employees of lesser govern
ments like cities and counties. But
there is more to the ruling than the
simple statement just made, very
much more, 1_?i?
As a matter of fact, I believe that
those who were privileged to listen
to Justice Stone that day heard an
opinion that is going to go a long
way in changing the course of gov
ernment from the federal govern
ment down to the lowliest township.
I think frankly that it will be sev
eral years before the full force and
effect of thkt decision will be ex
erted, both nationally and locally,
but I am definitely convinced that it
will be felt and that it will have Im
portant effects upon governmental
policies.
And beyond that, the decision told
another story. It told the story that
our national, state and local govern
ments are hard up for tax sources.
It actually shouted to all who would
listen: boys and girls, your spending
dance is over; now, it's time to pay
the fiddler.
Never Before Hat the Nation
Had Such a Gigantic Debt
It can not be construed otherwise.
Never before in our history has the
nation had such a gigantic debt, a
debt of more than 40 billion dollars.
Never before have the states or the
cities or the counties had such debts,
where their state constitutions per
mit creation of debt, as they have
| today. I do not know of anyone who
can give accurate figures on the
debts of governments of states, cit
ies, and counties. It is a tremendous
sum. They have danced, and they,
too, must pay their fiddler.
In the lush days when most folks
were working and there was good
business, the taxes rolled in and
there was little or no thought about
spending money for new roads, new
post offices, new county courthouses;
new city halls, new bridges and so
en. Money was spent rather lib
erally in those days. There were
bonds sold, and the proponents cam
paigned for bond issues m a big
way. They said, in effect, "Aw
come on and vote these bonds. We
can pay them off over 20 years and
the little teeny added tax won't
hurt." It probably did not hurt, in
those days. But there came the
depression and there came 10 mil
lion men out of work, and there
came the worst business in a half
century. Then, that teeny little bit
of tax did hurt The taxpayers
weren't paying taxes, because they
had no money to pay them.
There was, however, a debt. The
destitute had to be fed and clothed.
First, the local authorities did K;
then the states and then the days at
the real dance began. Billions upon
billions were poured out of the fed
eral treasury to be used for feed
ing and clothing and housing those
whom the states and cities had
cared for, but could care for no
longer. And up zoomed the national
debt. It was about 16 billions to
start with because only 9 billions of
the World war debt had been paid
off. Since the taxes were not bring
ing in enough money, the federal
treasury borrowed and borrowed
some more.
Note, They re Seeking Money
To Pay Their Fiddler*
Now, the time has come to begin
paying off the debts. The states
end the cities and the counties have
been looking for money to pay their
fiddler*. The national government
has been looking for money to pay its
fiddlers. Each unit of government
has had to look around for new
spots, new things, to tax. Taxes
are as high as can be regarded as
productive in many of the usual
ways of taxation. So, where shall
we turn? was the question.
President Roosevelt has believed
for a long time that it was rather
gilly that officers and employees of
the federal government should'not
be taxed by their home states. He
has believed, too, that the federal
government should have the right to
tax the income of those who were
held to be exempt from income tax
ation because they worked for a
State government, or city govern
ment or a county government, or
some agency of those governments.
Likewise, Mr. Roosevelt has con
tended that- income from federal
bonds and income from bonds issued
by state and local governments and
school districts and drainage dis
tricts and irrigation districts should
be taxable. He has thus far been
unable to accomplish anything in
this direction, and the matter was
not before the court. It, therefore,
. did net figure in Justice Stone's opin
ion. Sometime, such taxation may
be brought about. I hope so, any
way, because it is a proper subject
of taxation, it seems to me.
But to get down to another direct
result of the Stone ruling which, by
the way, was supported by seven of
the nine justices of the highest court,
Pay at Federal Employee*
Tax Exempt faf 69 Years
For the last M years, the pay of
any federal official or employee
could not be taxed tn any form by
any state or local government. Of
course, there/ was no income tax
during most at that time, either na
tional or state, and during most of
that time, as well, there was not the
press for government revenue that
now obtains. But, to repeat, for 00
years state or local governments
could not touch the pay of a fed
eral worker, nor could the federal
government touch thy pay of a state
or city or county worker, even after
the federal government turned to in
come taxes as a revenue source.
Some Judge, somewhere, sometime,
had said the Constitution prevented
it. It eras just taken for granted.
All of that now has been changed,
hosrever, and if the pay of a county
judge is sufficient to fall within the
federal tax brackets, he will pay.
It will be the seme with everyone
from the governor on down and from
the mayor on down. It will be the
same with federal officials and other
federal employees stationed or liv
ing within a state that imposes in
come taxes en US residents.
No one has yet calculated how
much additional tax will be obtained
by the federal government as a re
sult of the decision.
What tttact Will Additional
Tax; Havm an JabhaUan?
Very important alao, in my opin
ion, is the effect this additional tax
will have upon the mind at the Job
holder. You know, a Jobholder very
frequently is most willing, even anx
ious, to spend the taxpayers' money.
It is one way by which be can curry
favor, make votes for himself. I
have a feeling that many of those
Jobholders are going to stop and
think a wee bit more. Re may pos
sibly stop to think how much it will
take out of his pocketbook. That
ought to be helpful, because it ought
to reduce the number of flannel
mouths going about the county or
district, shouting for another bond
issue before the ink on the last one
gets dry. One of the results, there
fore, possibly may be to cause that
type of public official and advocate
of "improvement" to favor living
within the income of tax receipts.
To make it complete, now, we
ought to have the same kind of re
ciprocal taxation of income from
federal bonds and bonds issued by
state and local governments and
their agencies. Mr. Roosevelt has
said he believes these can be taxed
?that is, those to be issued in the
future?under present laws. Same
very flne legal minds in congress
believe, on the other hand, that cre
ation of such a taxing right win re
quire amendment of <he Constitu
tion. In any event, Jt ought to be
done for the good of the country.
Speaking of Sports
Baseball Color
Most Powerful
Drawing Card
By ROBERT McSHANE
THOUGH baseball officials are
* prone to boast that the game is
efficiently organized, professional
and businesslike, still it is beyond
their earthly powers to subdue those
unconquerable souls who, by their
odd antics, add vivid color to Amer
ica's own game.
Baseball color isn't confined to the
players. One of the best known
figures of the diamond world today
is Bill Klein, the "Old Arbitrator."
Klem Is the dean of an major league
umpires, with mere than M years
continuous service tn big league cir
cuits. He has called 'em for no
less than 17 World series. He is a
once declared that he had never
made an incorrect decision.
"Nary a one, Ml?" demanded
"Nary a one!" he replied stoutly.
The famed "Klem line" is the
real Maginot line of the Old Arbi
trator's defenses against outraged
baU players. When an argument
WIJ. rim
with a player reachea the white-hot
stage and threatens actual hostili
ties, Bill Klem makes his line. With
his right toot he draws a real os
imaginary line on the ground be
tween himself and the player. Then
he backs away. There is not one
player in the major leagues who has
ever dared to cross that line.
"Baseball color" is clearly data
able in the ease of Klem, whose maa
nerisms are mostly sneaaseioos.
the aceam slated personality af M
odd years la the game, la the ease
at Joe Eagel the color Is a boot as
alarm are. Joe Eagel is the whoop
'em-op manager of the Chattanooga
I ash cuts at the 8oothern associa
tion. Bagel's idea is that baseball
' Is just not baseball unless the grand
staads aad bleachers are Ml at
thundering, shrieking (aas.
Baseball Circus
Engel fills the stands by using
everything except warrant officers
and summonses. Among other
things he has staged elephant
parades across the diamond, hired
brass bands and handed out free
lunches to get spectators tor the
Lookouts.
TKa paffg.tA.riehd? aneld a/Ma aaL
or to almost any ball player. Joe
DiMaggio of the New York Yankees
is high in the gallery of young men
who walked in the footstepe of Ruth
and Tria Speaker. The slugging
Yank star is not yet a rich man,
but he's well on his way. His pres
ent salary is $39,000 a year. Joe
DiMaggio is the son of a San Fran
fisherman.
They Keep Fighting
Mere eften than est the coterfal
player Is the aggressive, pugma
eleas Mhridnal whs pets Me heart
M Ms werfc and makes evaryhedy
on Ms side tt the held keep np with
Mm. Gabby Hartaett is the* Med
ef a^pUyer. 8e is Llppy Lee Ds
Gabby is a geed hitter aad a great
eateher. b addition to that he la
a noisy, Jovial Ire-eater, always ea
Ms tees aad wiMag te pad every
thing he has late eaeh game.
Durocher has bean in the big
leagues steadily since 1838. His
batting average approximates only
.MO. Yet he's been on top for more
than 10 years because of his ability
to make himself important He
talked, scrapped and played with un
limited pep. He made himself valu
able because he made himself col
orful.
A colorful player isn't necessarily
a crackpot The players who really
tickle the fans' risibilities are those
who refuse to bo regimented. *??*
that doesn't imply even mild in
sanity.
Who's the Best?
TODAY'S ring addicts can be
A segregated into three groups:
Those who believe Heavyweight
Champion Joe Louis to be e good
fighter, those who think him a great
fighter, and those who believe him
to be the greatest fighter at all time.
Several af the nation's netstsad
tag boxing authorities are untbasI
as tie enough about the Brows
Bomber to regard him not only as
today's best fighter, but as the king
af them all, past and present.
Those same sports authorities will
find many to disagree with them.
And the dissenters are bold enough
to say that Louis isn't even the
greatest fighter in the ring today.
They bade that statement up with
cold, convincing logic.
Henry Armstrong is their chstee.
Henry's recent knsrknni victory
over Davey Day at Madisen Square
Garden was his sixth successful de
fense of his welterweight title ia the
1* months that have pataed since
hn teak the toga fast* Barney Jtoes.
It was ^^Jo^^tftt^nmartdive
Armstrong won all three Uttaa in
the course of a year, feUodtdahiiig
one voluntarily. Day wes his thirty
ninth knockout in the string of fights.
That record stacks up very favor
ably with the one hung up by Louie.
In one way it is even more impres
sive than the heavyweight's wring
of victories. Armstrong has gooe
out of his own weight class to no
count for many of his wins. When
he conquered all contenders in the
featherweight field he abdicated,
moving into the lightweight circles,
where he removed the lkfijysmd
crown from the brow of Lou Am
bers. Hammering Henry captured
his third crown in the heavier wel
terweight division.
His natural fighting alight In be
tween in and Its poundx. Whan he
defend.^ hi. welterweight title Us
pounds, which means that EUary
gives away from lg to 14 slMaspar
The busiest fighter in the ring to
day, Henry is one big barrage af
flats from the minute he steps Into
the ring onto be has knocked out his
opponent or baa heard the final bell.
Usually his opposition isn't bothered
a great deal tor the first few rounds.
But his constant clouting wants
them down until victory to within
sight. And ooca ha has it sighted,
ha doesn't tat it gat away.
King of Golfers
'I'WO years ago, whan ha was
A playing at Detroit'* OtHairt
Hills, Ralph Guldahl demonstrated
the same relentless, drivif tores
that carried him to victory Is the
recent Masters' golf tournament on
the Augusta (Ga.) National tufas.
While pbytog *? Datoalt If SI
Guldahl was at the top at Ms if
whaa ha astieed a aiaepapsi' pho
tographer la direct Una with the
ban. The eaasermasaa waa haihg
far ever fee rapes. Barsty ytastoc.
Ralph Mated hi erea tawes: ;
"If yea wast te gat jam faaa
me."
Sped la tha aiak af Hasa. , *"
Guldahl is a mechanically pre
cise, cautious playhr. He sums
nerveless la actios, merely got*
RALPH GVLDAHL
through the motion* But every
time be steps up to the toe be lsams
little doubt that he to foe super
golfer of today. Especially when
the class at the fleU he domiaatoe
is considered. Ha has won the
Western Open for the past three
years ad foe National Open foe
past two years. OdMhM
waHtZlS. Ms eamwlm reaadei
ware 1MHM, for a total ef HI,
foe lowest saereby three strefces to
op to foe tost tee the thought never
occur* to him that he fctot foe
world's best goiter. Which he very,
well m^rhs. ,
Trend
How the wind it blowing ...
AVIATION ? Round-the-world
airplane ticket*, placed on sale
for the first time, are priced at
$1,789 for a trip requiring 14 days,
including 11 overnight (tops.
SHIPPING?A total of 165 ves
sels, aggregating 678,000 gross
tons, are under construction in
U. S. shipyards, compared with
106 ship* weighing 380,000 toils
last year at this time.
EXECUTIOK-Maj. Edward J.
Dyer, retired U. S. army officer,
suggested before the Washington
Society of Philosophical Research
that euthanasia (mercy killing)
be adopted for aged indigents,
hopelessly Insane and diseased
persons, children born as mon
sters and first degree murderers.
Justification: "One of the Ten
Commandments might be modi
fled."
CATTLE?Because eggs bring
only 11 cents a dozen, A. W.
Ellsworth, dairy farmer at Hurd,
N. D., is feeding his cattle egg
nog, raising the "milk-fed"
standard.