The Carolina Watchman L“,
__A NEWSPAPER DEVOTED TO THE UPBUILDING OF ROWAN COUNTY
FOUNDED 1832—104TH YEAR SALISBURY, N. C., FRIDAY MORNING, MARCH 13, 1936. " VOL. 104 NO. 33. PRICE 2 CENTS.
WASHINGTON
Washington—The boys on Capi
tol Hill are unhappy because they
have got to figure out some new
taxes—and no fooling. The svord
came from the White House that
they must provide additional reve
nues of $786,000,000 a year for the
next 3 years and $620,000,000 a
year of the next six years thereafter.
They knew it had to come some
time, but they were hoping it might
be postponed until after election.
The President has not told them
where to get the money. They
passed the legislation so they must
figure out for themselves where the
money is coming from. The big
gest job that confronts them is
working out new tax measures that
will really raise the revenue required
without letting too many voters
realize that they have got to pay.
NEW TAX OUTLOOK
It is regarded as practically set
tled that processing taxes similar
to those under the defunct three
A’s will be utilized to provide a ma
jor part of the additional revenues.
The likelihood is that these taxes
will be spread farther, over a wider
range of commodities, taking in
practically every agricultural pro
duct that has to go through any
manufacturing process between the
farm and the consumer. The hope
of the boys is that the consumers
won’t notice.
A strong movement is under way
to revise the income tax laws so
as to draw directly upon incomes
down to $800 a year. Politically
this is not well liked, especially in
view of the fact that an income
tax on all wages and salaries is al
ready on the statute books under
the Social Security Act, to take ef
fect at the beginning of 1937.
Some heavier inheritance taxes will
doubtless be included in the new
set up.
The inflationists are taking ad
vantage of the situation by trying]
to enlist more support for their plan
of doing away with additional taxes
by simply printing more money.
That probably will not get vefy far
but they may make a lot of noise.
A push is on also for legislation
to restore the NRA standards of
waves and hours of labor on Gov
ernment contracts, but the chance
is rather slim of any such action at
this session.
(Continued on page Four)
Pays Burial Costs
To Escape Trial
L. R. Cheshire, local negro un
dertaker this week complied with
Requirements which released him
from a pending criminal action re
lative to the holding of the body
of a negro woman which the State
contended was obtained under
false pretenses.
Leanna Sibley, died near Rich
field several weeks ago. Immedi
ately after death, Cheshire called
for the body, stating the deceased
was a member of a burial associa
tion. When he failed to bring the
body for burial at the time speci
fied, an investigation was started,
Cheshire claimed that the dead
woman’s dues were not paid up,
and that he was holding the body
for burial expenses.
Claim and delivery papers were
served upon Cheshire, alleging
that the body had been obtained
by false representation. |He turned
the body over to the claimants,
and then was faced with the crim
inal action. He was released from
the probability of this action by
paying the burial expenses of the
woman and court costs which had
accumulated.
Convention To
Open Six Days
After Primary
Motion To Hold State
Gathering Before Pri
mary Withdrawn
Raleigh—The State Democratic
executive committee has voted un
animously at its meeting here to
hold the party’s 1936 State conven
tion in Raleigh at noon June 12,
just six days after the first primary.
The county Democratic conven
tions will be held May 16 and pre
cinct conventions May 9.
One motion to hold the State
convention May 11, before the first
primary, was introduced, but was
withdrawn.
The meeting was harmonious,
with 96 members present in per
son or by proxy.
Rivers D. Johnson of Duplin
county presented the resolution
setting convention dates. It was
seconded by J. H. Yelton of Hen
! derson county.
H. P. Whitehurst of Craven
! county proposed the meeting be
held before the primaries, saying
all candidates should know what
the party platform was and should
let the people know how they stood
on it before nomination. Hie was
aided by John H. Fogler of Surry,
who urged the early convention
resolution,*" Whitehurst withdrew
his.
Johnson said the party wanted
"to make more Democrats” and
"we want to make the platform
after the primary, so that every
body can get in on it and stand
on it.” He said, "You may be able
to read between the lines of what
I say, but we want to make Demo
crats.”
Chairman Wallace Winborne
commented Johnson had done "an
eloquent piece of work.”
A resolution was adopted ex
(Continued on page four)
Protest Against Huge
Defense Measure
Washington—Mrs. W. A. New
ell, of Salisbury, head of the wom
en’s missionary council of the Meth
odist Episcopal church, South was
among the members of the com
mittee to call upon President
Roosevelt Thursday morning to
protest against the "billion dollar”
[appropriations for the army and
navy now before Congress, the
largest peace time expenditure ever
proposed for armaments in this
country.
The committee of which Mrs.
Newell is a member is correctly
known as "the peoples mandate to
end war.” Many outstanding
women are members of the com
mittee, some of whom are: Mrs.
Chari O. Williams, of Washington,
D. C.; Mrs. Gerard Swope, of New
York City, and Mrs. Mary E.
Woolley of Mt. Holyoke college,
South Hadley, Mass.
See More Than Billion For Relief
_ I
WPA And PWA
Are Defended
By Democrats
President Undetermined
On Exact Amount to
Be Asked
MAY DELAY REQUEST
Washington—'Intimations that
President Roosevelt soon would ask
Congress for between $1,000,000,
000 and $1,500,000,000 for con
tinuing his work relief program
were dropped in Senate circles as
Democrats entered a twin defense
of the WPA and PWA.
Senator Robinson of Arkansas
Democratic leader, in a 7,000-word
prepared address, defended "boon
doggling” under Harry L. Hop
kins’ Works Progress administra
tion, and asserted the Republican
national committee and "miscalled
Liberty league” were attempting to
make a "political football out of
the unfortunate unemployed.”
Soon afterward, Senator Hayden,
Democrat of Arizona, read another
prepared speech paying tribute to
the Public Workadministration
under Secretary -Svises and urging
another $700,OOQ4()fto 'appropria
tion for new non-Felfc. »J projects
already proposed but for which
funds are lacking.
On the present 45-55 grant-loan
basis, Hayden said this would en
able construction of $1,500,000,
000 of State and municipal projects.
Sandwiched in between the two
Democratic speeches was a fresh
demand from Senator Vandenberg,
Republican of Michigan, for a full
investigation of charges that WPA
is being used for "political exploi
tation for a partisan purpose.”
The double Democratic defense
reached its height just as Presi
dent Roosevelt at his press confer
ence said he had not determined
(Continued on page eight)
* THE WEEKLY *
* NEWSPAPERS *
* __ »
* (Arthur Brisbane) *
* "The readers of the smaller *
* newspapers, scattered all over *
* the United States, forms the *
* most important body of think- *
* ing Americans in the country. *
* Editors of the smaller news- *
* papers constitute a national *
* intellectual police force that *
* keeps a great majority of the *
* 130.000,000 Americans in- *
* formed as to public happen- *
* ings. If the great advertisers *
* of the United States could be *
* made to realize the extraor- *
* dinary buying powers and ad- *
* vertising value of the local *
I * newspapers, the publishers of *
* such newspapers would be re- *
* warded financially as they de- *
* serve to be.” *
I**********
F. D. R. Leads
Georgia Vote
Second County To Give
Big Majority Over
Talmac’ge
Chipley, Ga.—President Frank
lin D. Roosevelt rolled up a heavy
majority over his Georgia critic,
Governor Eugene Talmadge, in a
presidnetial preference primary in
Harris county Wednesday—the sec
ond county so to vote—incomplete
returns showed:
Returns from 18 precincts gave:
Roosevelt 991; Talmadge 34.
Roosevelt’s name was on the
ticket in the election, but Tal
madge’s was not.
The ballot instructed "if not
for Roosevelt write preference.”
Harris county adjoins Meriweth
er, where President Roosevelt has a
vacation cottage.
It was the second county in the
State in which the presidential
issue was submitted to voters in an
unofficial primary. The results are
not binding.
Seminole county, like Harris a
rural area, recently gave Roosevelt
a five-to-one vote over Talmadge.
iNation Sunday
Toll Immense
Automobile crashes took SO lives
across the nation Sunday.
Four CCC members suffering
from mumps were killed in a truck
accident near Gillette, Wyo., while
en route to a hospital for treat
ment.
A fifth victim of an auto eras!
in New York, died Sunday. The
sixth occupant of the car was ope
rated upon and not expected to re
cover.
Pennsylvania with eight death:
led the states. Texas had seven
The list:
Pennsylvania 8, Texas 7, Ala
bama 5, Wyoming and Nortf
Carolina 4, Kentucky 3, California
Iowa, Illinois, Connecticut anc
New Jersey 2, Ohio, Oklahoma
Missouri, Kansas, Colorado, Nets
Mexico. Oregon, Nevada), South
Carolina and New York one each.
Appeal Ruling
On Income Tax
Washington—Contending the)
had been denied legitimate deduc
tions by government tax officials
two railroads asked the Supremi
Court to free them from income
taxes of more than $236,000 foi
1928, 1929, 1930.
Attorneys for the Atlantic Coasi
Line railroad company, with office;
at Wilmington, N. C., and the
Carolina, Clinchfield and Ohic
railway appealed from a ruling b)
the Fourth Federal circuit couri
January 9 which approved the
findings of the board of tax ap
peals.
The Coast Line protested addi
tional taxes of $94,047, for 1928
$66,575 for 1929, and $75,115 foi
1930. The Carolina Railway ap
pealed from a deficiency of $427
for 1930 and a refund of $33 foi
1929. It claimed the latter shoulc
be larger.
WILL SEEK THIRD PARTY
St. Paul—Howard Y. Williams
national organizer for the Farmer
Labor federation, announced tb
Minnesota Farmer-Labor associa
tion will be asked to take the leai
at its coming convention in
movement for a national third par
ty in 1936.
N. C. Bank Resources
Are Highest Since ’29
Raleigh—Resources of all banks;
in North Carolina as of January 1
totaled $418,990,44 or the highest
mark since 1929, Gurney P. Hood,
State commissioner of banks, has
anounced.
Hood ravealed a statement from
the comptroller of the currency
showing total resources of national
banks in Nroth Carolina were
$100,672,000 last December 31.
Resources of State banks the same
date were $318,318,440.
Available amounts in commer
cial banks were $305,051,060, and
that of industrial banks $13,267,
784, accounting for the State ins
titution total.
The national bank resources were
greater in 193 5 than in any yeai
since 1930, when the total was
$116,593,000, but were far below
the $215,719,000 of 1927, the
highest in the last nine years.
The industrial institutions’ ag
gregate was the highest since 1932
the $13,267,784 last year compar
ing with $14,726,937 in 1932. Lasi
year’s total was well below the
$20,764,852 in 1930, highest of the
nine-year perioei
t Not For Publicity Purposes I
winritf i i ■ ... ~ h- ... . ■ *
~ a, - 5^ P,AA I
NEW YORK . . . Above are Mr. and Mrs. George Burns with
daughter Sandra, 2, and brother Ronald, 6-months old. Mr, and 'Mrs.
'Burns adopted both children from a Chicago fondling home, Sandra
jnore than a year ago and Ronald just recently. Photo' shows Sandra
Welcoming her new brother. ••.. Mr. and Mrs. Burns are widely known
... to screen and radio fans. They are none other than George Burns
and Grade Allen.
I
Doughton Defends
F.R.’s Tax Program
\ -v- . - .-a
Washington—Representative R.
L. Doughton as chairman of the
ways and means committee moved
to mold public sentiment in favor
of the President’s tax program
which would hit surplus profits of
industry and business establish
ments hardest.
The veteran solon struck back
forcibly at critics of the adminis-j
tration who are charging the Presi-j
dent has broken his pledge for a
"breathing spell” for business, and
justified the proposed program by
saying that the greater part of the
present emergency was caused by
I the soldiers bonus law and the
| Supreme Court invalidation of the
AAA.
"There is a great deal of con
fusion about just what the plan is,”
declared Doughton. "And yet, es
sentially it is very simple. It is to
place all taxpayers on the same
footing: It is to make the same rule
| apply to the corporation as to the
business partnership and to the
private, unincorporated individual;
it is to treat all stockholders alike,
whether they are big stockholders
or little stockholders, whether they
own stock in a great corporation
or a small and insignificant one.
"The existing system is unfair
and expensive to the majority of
stockholders and the majority of
corporations. It enriches or bene
fits some corporations and a rela
tively few large taxpayers. It pre
vents the small stockholder from re
ceiving a fair annual return on his
investment.
"All corporations are now taxed
ion a scale of 12 1-2 to 15 per cent
'of their net profits and they also
pay other taxes on capital and on
excess profits. When dividends are
paid, the stockholder must pay in
,i addition, personal income surtaxes
on them. This makes the small
stockholder pay too high a tax—
a double tax—on his share of the
profits. Where the corporation
distributes to stockholders all its
net profits, or nearly all, the whole
group of stockholders of the cor
■ poration has paid much greater
| taxes than they would have paid, if
they had made the same earnings in
business as individuals.
But there is a great protit in
, the situation for some. The cor
■ poration may withhold a large pro
: portion of its profits and reinvest
• them instead of distributing them
1 to stockholders. In that case no
i personal income taxes are paid on
■ them. This enables big stockhold
ers with large personal incomes to
-. .. .
place or retain their earnings in
good investments without paying
the heavy surtaxes they would
have had to pay, if they had been
in business as individuals or had
been members of a partnership.
The corporate form is thus merely
a refuge from just taxation for big
incomes.
"If corporate income, now with
held, was subjected to the same
surtax rates that apply to income
of individuals and partnerships, the
treasury deparment has estimated
that in the calendar year 1636, the
government would collect $620,
000,000 net additional revenue,
even though the corporation paid no
tax on its distributed profits, and
no capital stock or excess profits
taxes.
"The excessive accumulation of
current earnings by corporations is
the biggest leak in our tax system.
It operates also to cause great ar
tificial consolidations of capital and
disregard of the interest of the
small stockholders.
"The President’s proposal is to
put a stop to this evil by substitu
ting a very simple and clear cut
system. It is this:
"First, repeal all of the existing
general corporation taxes, the
graduated tax on corporation in
come, the capital stock tax and the
excess profits tax.
(Continued on page four)
College Honors
Judge Warlick
Honorary degrees will be con
ferred upon Judge Wilson Warlick,
of Newton, and Professor Charles
Edward Meyers, of Lancaster, Pa.,
by Catawba college at the com
mencement exercises, May 26, it is
announced by Dr. Howard Om
wake, president.
Judge Warlick, is an alumnus of
the college, and is now on the Su
perior court bench. He, will re
ceive the degree of Doctor of Laws,
while Professor Meyers will receive
the degree of Doctor of Letters.
Judge Warlick will make the
address to the graduating class of
approximately seventy-tfive mem
bers on Tuesday, May 26, at 10 a.
m. Professor Meyers, who is pro
fessor of English at Franklin and
Marshall college, Lancaster, will
preach the Baccalaureate sermon
Sunday morning, May 24, at 11
o’clock.
J. F. Hurley, Sr.
DiesEnrouteTo
His Home Here
Funeral Services Held At
First Presbyterian
Church Saturday
Attended by an exceptionally
large gathering of Salisbury and
Concord people and persons from
other sections of the state, funeral
services for James F. Hurley, Sr.,
editor and publisher of the Salis
bury Evening Post, were conduct
ed at the First Presbyterian church
here Saturday afternoon.
Burial followed in the Phifer
Memorial cemetery in Concord,
where the deceased was born and
reared and spent the majority of
his 65 years. Prior to 1910 he was
publisher of the Concord Tribune.
The services were conducted by
Rev. Marshall Woodson, pastor of
the First Presbyterian church of
this city, assisted by Rev. W. E.
Davis, pastor of the First Presby
terian church of Concord.
In accordance with Mr. Hurley’s
request, members of the Evening
Post organization served as pall
bearers. He had been editor ol
The Post since 191
Rev. Woodson, m the funera
services here, paid brief but glow
ing tribute to the life and charactei
of the deceased, pointing out that
the outstanding passion of his life
was his love for children and young
people and citing his work for the
schools and other enterprises for
the welfare of youth, including
Barium Springs orphanage.
Mr. Hurley died suddenly March
5 on a train bringing him home
from Florida, where he had spent
The North Carolina Press asso
ciation was represented at the fun
eral by Miss Beatrice Cobb, of
Morgan ton, secretary; W.C. Dowd
and J. A. Adkins of Charlotte, J.
W. Adkins of Gastonia; Lee B.
Weathers of Shelby, H. P. Deaton
of Mooresville and J. D. Bivens of
Albemarle.
GRADUAL PROGRESS
Victim: “Hey, that wasn’t the
tooth I wanted pulled.”
Dentist: "Calm yourself, I’m
coming to it!”
5J- Sb Sb Sb * 5b Sb sb
* INDIAN GETS $25, *
* REJECTS RELIEF AID *
* _ *
* Charlotte — John Wallace, *
* one hundred and four-year-old *
* Indian, had only $25, but it *
* was more money than he knew *
* what to "do with.” So he *
* wrote the welfare office where *
* he had been receiving periodic *
* stripends, to strike his name *
* from the rolls.
* The aged man had received *
* a check for $25 from a man *
* whom he had befriended.
******* * * *
First Lady Pleads For
Eliminating War Profits
Grand Rapids, Mich.—Mrs.
Franklin D. Roosevelt opened a
lecture tour here with a plea that
profit be taken out of war, and the
prediction that "the war psycholo
gy under which we have lived al
ways” will be gradually worn away
by each effort toward world
peace.
The first Lady came here from
Washington to speak at the Foun
tain Street Baptist church. A
capacity audience of 1,700 heard
her lecture.
"I believe,” she said, "that if all
nations could take all profits tc
individuals out of the munitions
industry, we would be making a
worth-while advance, even though
we were still obliged to keep or.
building up our defenses.
"At least there would be no
profit in it, and people would be
paying directly in taxes for what
the various nations had to spend
on defenses.
"It is impossible for any nation
to bring about peace by itself,” she
said. "'It is self-evident that, as
long as the rest of the world is
armed, every nation must be
armed.”