WEATHER
Showers tonight, probably end
in; Saturday morning; littl.
change in temperature.
VOL. 52—No. 107
Stents
GOOD AFTERNOON
Gent named Popoulosaovitch
came to America to make a
name for himself. He did.
Changed it to Jones.
HENDERSONVILLE, N. C., FRIDAY, MAY 5, 1933
SINGLE COPIES, FIVE CENTS
THOUSANDS
WORK
B. F. Freeman
, Is Exonorated
In Reid Death
SENATE LIMITS
SCHOOL TERMS
TO 8 MONTHS
Tightens Griffin Bill and
Sends It to House for
Concurrence
EXTRA TAX UP TO
PEOPLE AT ELECTION
By J. C. BASKERVILL
The Times-Nrws Bureau
Sir Walter Hotel
RALEIGH. May 5.—Deciding
that the Griffin school machinery
I.ill was still not tight enough and
did not contain enough limitation,
the senate adopted ar. amendment
bv Senator Clement of Rowan
limiting the school term over the
entire state to eight months and j
no more, then passed the bill on ;
second reading by a vote of 4<> to I
7 late yesterday afternoon. The
bill is expected to pass third
reading tod&v with little or no
opposition. Five of the seven
votes cast against it on second
leadiner were by senators who,
thought the bill still was not
strict enough.
If the house now passes the
bill in its present form, as many,
think likely, none of the larger j
cities in the state will be able to j
operate th«-ir schools nine months, i
as they have in the past, but will |
be limited to eight months, as set I
up in the state-wide eight-months j
school term law. They will he per
mitted to levy supplemental taxes,
for the eight-months term, how-1
ever, but only after submitting!
the question to a vote of the peo
pie.
The school forces of the state;
through their lobbyists ami th '!
officials of the North Carolina
Education association, opposed thci
hill anil made every effort to de-'
feat it. They have openly been I
favoring the school machinery hill1
in the house which would permit
the levying of supplemental taxes
without a vote of the people. I
either for supplementinsr the 8-;
months term or fi>r an extended !
term of nine months.
An amendment hv Senator j
Hinsdale of Wake county that!
would have limited supplement.
for teachers' salaries to not more]
than 10 per cent of the amount:
received bv the state, was defeat
ed. The objection to this amend-1
ment was that if a definite limit
was fixed in the law. this would j
tend to become the minimum ra- (
ther than the maximum, with the
result that many counties or dis-;
tricts would want to levy a tax
for a 10 per cent suppleent, when
a 5 per cent supplement would he
sufficient. The bill leaves the j
amount of tht» supplement to be I
determined by the state school,
commission. i
The amendment by Senator
Moore, to fix a limit on supple-,
ments f»»r teachers' salaries, ex-1
tended term ami maintenance to
not more than 20 per cent of the
amount received from the state.;
and then onlv by a vote of the j
|»eool,». was als> defeated.
Whether the house wiil pass the ,
hill as it passes the senate, refus-!
ing to permit the larger cities to
have a nine months school term,
is regarded as doubtful, although
it is agreed there is little chance j
that the house will adopt the Av- ,
rock school machinery bill in the i
house, which is supported by the
school forces. It is agreed, how-1
ever, that the larger cities that '
have been having a nine months
term will put up a bitter fight to |
retain this righf. The delegations
from the counties havine these
larger cities—Guilford. Mecklen
burg. Buncombe. Forsvth, Wake, i
Durham and a few others—wield
a great deal of influence in the
house and it would not be sur-1
Prising if they secure the adop- j
tion of an amendment to permit
the larger city charter districts in |
these counties to levy supplemen
tal taxes for a ninth months pro
vided the peonle affected vote for
it in a special election. j
Thp house is in no mood to
compromise with the school poli-1
tieians, however, as indicated yes-!
terday when i\ passed the Womble |
resolution calling upon the North j
Carolina Education association to |
report to the general assembly all
its receipts and disbursements.
The resolution was introduced
many weeks ago by Representative
Womble of Wake countv with the
avowed purpose of showing un the
lobbying activities of the North
C ;»rolina Education association.
The Hill was soot to th« house ed
ucation committee, where the
(Continued or. page 4.)
Coroner's Jury Says Death
line to Blow at the
[lands of Freeman But
That Act Was Justifi
able anil Orders His Re
lease
,\ coroner's jury late yesterday
cxonuratcii I!. I"'. Freeman. I'>at
Cave merchant. of a'l Maine in
connection with the Tata! injury
of Will Keiil, also of Hat Cave,
at Freeman's home last Saturday
night.
At the dose of a lengthy heav
ing in the city court room, con
ducted by Coroner J. F. Hrooks.
the jury returned a verdict de
claring that "Will Keid came to
his death due to a blow at the
hands of 15. F. Freeman." and
that ••from all the evidence we
find that the act of Freeman was
justifiable and that he be dis
charged.
Reid died Sundav niornin*i* in
F'atton Memorial hospital as the
lesult of a skull fracture which
he suffered when he fell to the
highway pavement in front of
Freeman's home. Testimony at
the in(|uest showed that he had
gone to see Freeman because of
a derogatory remark which lie
?aid had been reported to him, |
that he threatened "to get'' Free
man and started up the steps
with a hand in one of his pockets,
that Freeman repulsed him with
a chair, and that he foil back
ward to the pavement. Dr. .J. S.
llrown, attending physician, told
the jury that death was caused
by the fall and not by any blow
struck by a chair or any other
object. While none of several
witnesses testified directly that
Reid was drunk, he was describ
ed as having been in "bad condi
tion" supposedly from litpior.
Witnesses at the inquest, all
living in the Mat Cave, Chimney
Rock or Hear Wallow sections, in
cluded Paul Dalton, Miss Blanche
Harris, Louis Frant, Frank Free
man. Jack Barnwell, Charlie
Klanton and Mr. Freeman, and
T. J. Gilliam, deputy sheriff, and
Dr. I.rown of llendersonville.
Jurors were V. C. V. Shepherd,
L>. M. Wells, R. L. Felder, Kdney
Henderson. F. 1'. Brothers and II.
W. Harris.
A crowd that filled the court
room attended the inquest. Slate's
witnesses told substantially the
same story as did Freeman him
self. even coroborating in detail
such incidents as the finding of
Reid's knife, with one blade open,
beside his body on the highway.
While interest was intense there
was no demonstration either while
testimony was being taken or
when the verdict was returned
about 20 minutes after the jury
received the case.
The account of the tragedy as
related by Freeman on the sUind
and substantiated in the main by
most of the witnesses, was that
Reid went to the Freeman home
about o'clock Saturday night.
(Continued on page 4.)
WILL RELEASE j
GANDHI SOON
I
Government Shuns Respon
sibility of Long Hunger
Strike in Prison
MADRAS, India. May 5. (UP)
—Mahatma Gandhi, will be releas
ed unconditionally ficin his long,
imprisonment Saturday the Uni- j
ted Press learned on highest auth
ority today.
His release will be ordered by I
the Indian government because itj
does not wish to take the respon- j
sibility of the outcome of a three
weeks fast which Gandhi intends j
to begin Monday.
Mrs. Pinchot in
Strike Picket Line
AI.LENTOWN, Fa., May 5 (UP)
—Mrs. (Jifford Pinchot, wife of
Pennsylvania's governor joined
"baby strike" picket lines today
protesting against "outrageous
conditions" in shirt factory sweat
shops of Lehigh Valley.
ENGLISH POUND SOARS
LONDON. May 5. (UP)—The
English pouni!,. unsupported by
the governments high equaliza
tion fund, Soared in value today
at two p. in., it was Quoted at
$4.50 to which it had risen .from
the opening of $3.92.
FIGURE IN CAPE COD KIDNAPING MYSTERY
ROOSEVELT CALLS ON U. S.
BUSINESS MEN TO INCREASE
WAGES TO MEET PRICE RISE
^ t
DRY BARRIERS
THROWN UP IN
SCHOOL AREAS
N. C. Localities Rush Leg
islation to Protect
Students
The Tim^r.-Nrws Bureau
Sir Walter Hotel
RALEIGH. May 5.—Since the
passage of the Francis bill legal
izing the sale.of 3.2 per cent beer
in North Carolina, quite a few lo
calities in the state have outlawed
the sal*' of the beverage through
legislative act, a check-up here
revealed today. Thus far no town
or municipality has sought to
throw up a barrier around itself,
but several schools and country
communities are putting up a dry
fence around themselves.
First a bill was got through the
general assembly prohibiting the
sale of beer in and around David
son College. Then Duke Univers
ity got fixed np. and then Wake
Forest. Pineland Junior College
also gets protection from the sale
of beer, through a bill passed by
the general assembly, as does most
of the other colleges in the state,
with the exception of N. C. State
at lialeigh and the University at
Chanel Hill. Bills were put thru
the legislature this week, prevent
ing the sale of beer at Mars llill
and Ridgecrest.
The sale of beer is also prohib
ited on the religious assembly
grounds at Montreat, in Western
North Carolina, and a bill has also
been passed surrounding a school
and a church in Alamance countv
with a dry area of one and one
half miles. All of these bills have
been put through the general as
sembly under suspension ov the
rules, anil there has been no op
position.
Under the provisions of the
beer machinery act. the selling of
beer within 300 feet of rural
schools and churches is prevent
ed, when they are located in un
incorporated communities where
there is no police pfotec'ion, while
beer cannot be sold within fifty
feet of churches in incorporated
towns during Sunday church
hours.
MANCHU WAR
LORD DESERTS
CHANGCHUN, Manchuria, May
5. (UP)—With an army swollen
to 30,000 men, Gen. Liu Lueitang,
Manchu military leader has desert
ed and captured Chahar, provincial
city of Dolonor and started a
march southward toward the great
wall, according to advices receiv
ed here today. His first conquest
was reported at Kapiian imnort
ant town midway between Dolo
nor and Changschiakou tin great
wall gateway.
In General Economic Dis-n
cussion He Warns of
Need of Fair Play
Bv FREDERICK A. STORM
I United Press Staff Correspondent
| WASHINGTON. May 5. (UP),
i President Roosevelt last night
called upon the business leaders
of the nation to increase wanes
at once to meet rising commodity
prices.
Speaking a' the annual dinner
of tin* Chamber of Commerce of
tlu» United States, Mr. Roosevelt
presented a three-point program
for consideration of the merchant
and industrialists, in dealing with
their vast army of workers and in
restoring economic security to all
He asked for the following:
t. A more adequate wag©
scale.
2. Outlawing of unfair compe
tition in the industrial system.
Abandonment of provincial
ism in considering the country
wide economic situation.
The address of the president
was the first important public ut
terance of a chief executive since
i the Harding administration that
j was not broadcast.
President Roosevelt struck out
squarely in bis pleas that labor
be given immediate consideration.
Pointing out. that when price lev
els begin to rise after a long pe
riod of declining commodity
prices, wages previously curtailed,
I lag in the general process of eco«
i nomic readjustment.
"That result," he explained,
j "has in the past imposed upon
| those who labor, an unfair bur
jden; has prevented their just and
! equitable share in the profits of
| industry and has limited the pur-|
I (Continued on page 3.)
Foreign Trade Interests Being
Forced Out of Manchu State in
I s Spite of Pledge for Open Door
By HERBERT R. EKINS
| United Press Staff Correspondent!
PEIPING, May r,.—(UP).—
British ami other foreign business!
interests are rapidly being forced
to leave Manchoukuo despite Ja- j
1 pan's pledge to maintain the |
| "open door" policy, a prominent |
British business man asserted
here yesterday.
The man, a director of one of |
the firms involved, told the United .
Press that thp Hong Kong and j
Shanghai Banking Corporation..
the Jardine Matheson Co., an:lj
] other important British firms had.
i already instructed their staffs to
prepare to dose their branches in
| Manchoukuo.
He declared this step was
i forced noon them on account of
; the rapid closing: of the "open
I door" in Manchoukuo—formerly ;
Mur.ehuria—to foreign trade. He j
said the Manchoukuo government
was placing intolerable obstacles
to the free movement of the per-1
sonnel of British business firms in
the new puppet state, controlled
by Japan. i
Instructions •'hat, these British
firms, some of them, including
the two named, among the oldest
Search for 10-year-old Margaret C. McMath (left), granddaughter of Francis C. McMath, millionaire
Detroit industrialist, and tin* nejfro and two white confederates who kidnaped her from her school in
Harwichport, Mass., spread throughout New England and out to sea as the girl's father, Neil McMath,
made fruitless offers of ransom. In the center is Miss Ruth Holmes, school secretary, who received the
abductors' phone call on which the km ! was released from school (shown at right) to be met at thi* i
door hv the kidnapers' cur.
.£>
I
Those Willing to Co-oper
ate Asked to Telephone
Chamber of Commerce
The garden department of the
Woman's club and the beautifica
tion committee of the Chamber
of Commerce have launched the
second annual community-wide
beautification movement with the
expectation of exceeding the very
excellent work accomplished by
these organizations last year
when there were f> I entries in the
contest.
Joint committees of these or
ganizations i" ^f.viion yesterday
decided to push the beautifica
tion campaign vigorously in the
hope of making the city more at
tractive.
The committee will not find it
necessary to give any attention
this year to the general clean-up
since the relief workers under the
direction of Chief Otis V. Tow
ers have done a very commend
able work within the city. The
committee's activities will center
around the beautification of city
parks and ornamentation of va
cant lots by planting flowers.
The prizes this year will !>e
awards of ribbons and printed
awards of merit. There will b?
first, second and third recogni
zations and separate contests for
white and colored people.
Relief labor has been promised
for the preparation of vacant,
lots but help cannot be granted
to those who desire labor for use
on their own residential premises.
The people are requested to
communicate with the Chamber
of Commerce and indicate their
willingness to plant the front of
some vacant lot near their resi
dence in order that relief labor
may be furnished for preparing
the soil.
Those needing seeds and plants
(Continued on page li.)
and most influential in the Far
East, evacuate Manehoukuo. and
give up the struggle to do busi
ness in tiie face of impossible hin
drances, were said to have been
issued with the full knowledge
and assent of the British govern
ment.
Assurances of equal opportun
ity for business voiced recently in
Tokio and Manehoukuo by men in
responsible positions met with de
rision among foreigners in Peip
ing, who declared "penpricking"
tactics made it. intolerable to con
tinue to do business under the
new regime.
It was admitted that the Man
ehoukuo authorities in all proba
bility will do nothing formally,
such as denying the "open door"
treaty, but the obstacles and little
irritating moves which can, in all
seeming innocence, be resorted to
would make the result the same.
Meanwhile, the Japanese gave
fresh warning of their intention
to proceed with tho "moppine up"
maneuvers in North China, below
the Great wall. A spokesman at
the Japanese legation here said:
"The recent statements issued
(Continued on page four)
KIDNAPING SEARCH IS STILL
ON: FRIEND OF M'MATH'S
OFFERS SELF AS A HOSTAGE
DIXIE WINDS
KILL A SCORE
Alabama Towns Report
Hundred or More
Injured
BIRMINGHAM, Ala., May 5.
(UP).—Tornadic winds killed at
least 21 persons and injured ap
proximately 100 at scattered Ala
bama points just before dawn to
day.
Hit hardest was Helena, 20
miles south of here, and Demopo
lis, 100 miles southwest.
The storm dipped at Adams
ville, l.'l miles from here, injur
ing one. Reports of injuries and
possible deaths at Centreville
were made by railroad officials.
Confirmation was lacking as
I communication lines were down in
all stricken areas.
LAZARUS THIRD
PARTY IN SUIT
Judgment of $5000 Not
Against Him; Other
Court Decisions
A judgment against George
1 Lazarus as reported yesterday in |
[The Times-News was not actually
against Mr. Lazarus, it was learn- >
ed today. It was declared that
judgment for $5,000 and the dis
solving of a restraining order had
been recorded in superior court
against Mr. Lazarus.
Mr. Lazarus today called atten- J
tion to the fact that he was
brought into the case as a third
uarty in the following manner: A
loan on property in the amount of
$5,500 was made to Mr. Lazarus
by the Guaranty Title Co. A pay
ment of $500 was made on this
and $8,000 was borrowed from
the Equitable Assurance Co., and i
the balance of $5,000 paid. The
Guaranty Title Co., was placed in
bankruptcy and bondholders of
the mortgage were not paid off.
The judgment gave the bond
holders of the Guaranty Title Co.
the right to proceed with the sale
of the property, and an appeal
was taken by the Equitable As
surance Co.
In the court yesterday after
noon, Jack Bryson was awarded
an easement on a road and $25
damages in a suit against D. S.
R. Willis and others.
The Federal Reserve bank of
Richmond, Va., was awarded a
judgment in the amount, of $4,
103.12 with interest at six per
cent from May 18. 1931. subject
to the payment of $2,050 from
the Toxaway Tanning company
' and others. •
In the suit of the Federal Re
! serve Bank against Sam Kalin,
I the jury returned a verdict in fa
vor of the defendant. The plain
j tiff was seeking to recover $1,000
i on a note rediscounted at the Re
l serve bank by the _ Citizens Na
tional bank and paid on the day
the bank closed.
The General Motors Acceptance'
(Continued on page three)
Many Clues Vainly Follow
ed in Effort to Recover j
10-Year-01d Girl
By SIDNEY B. WHIPPLE
United Press Staff Correspondent
HARWICH, Mass., May 5.—
(III*).—Detectives feared early
today that little Peggy McMath
might be in the clutches of th»»
kidnapers of Baby Lindbergh,
whose mutilated body was found
on a Jersey hillside a year ago
next. week.
Nearly three days after the
pretty 10-year-old heiress to De
troit fortunes was lured from her
desk at the village school, heart
broken hut still hopeful parents
remained without a word as to
her fate.
Last night. William Lee. spokes
man for the McMath family, vol
unteered to become a hostage in
the hands of the kidnapers for 24
hours to give them time to com
plete ransom negotiations and es
cape.
As clue upon clue fizzled dur
ing a day crammed with furious
activity by forces of the law on
scattered fronts, federal, state,
county and local authorities seem
ed to have reached a "dead end."
And as key investigators prod
ded their minds for new leads,
they were impressed by circum
stances which tended to link the
current cas© with the Lindbergh
abduction.
So forceful were these features
of the mystery that Brigadier
General Daniel Needham, state
public safety commissioner and in
personal charge of the search, was
impelled to declare:
"There is nothing inconsistent
in this crime with the possibility
of its being done by a very clever
professional crowd, and it may be
the same crowd that operated in,
the Lindbergh case.'"
Bearing: up oraveiy tiurinjr me i
dread interlude of unbroken si
lence between the kidnaping and j
the anxiously-awaited first eon
tact, Peggy's mother broadcast |
iier first open appeal to the ab
ductors, pencilled in her own
hand on a scrap of brown pacer:
''If it is necessary to take Peg
gy in an automobile, please give
her some gum, because she is sub
ject to car sickness.
"Regarding her food, she likes
all kinds of meat and is very;
fond of milk. Don't give her any
turnips or spinach. She does not
like them and please do not force
them on her.
"Tell Peggy I wish her to be a
good girl and do just what she is
told. She loves nothing more than
a puppy or a kitten to play with.
Please try to put her to bed at 8
o'clock." t
Previouslv Neil Cook McMath,
well-to-do Harwich boat bpilder j
with Detroit social connections. |
had reiterated his pledge to deal
honestly with the kidnapers "with
out thoughts of prosecution or
punishment," and to give his all,
if necessary, as ransom for his
daughter's safe return.
Activities of Detroit's "Purple
Gang," mentioned in connection
with the Lindbergh kidnaping,
came under closer scrutiny today
as local leads, one by one, failed
to materialize. Peggy's two rich
Grandfathers. Francis Cook Mc
Math and William Robert Kales,
live in Detroit.
William Lee, spokesman for the
McMath family who yesterday at
noon had predicted a "very im
portant" development wHioh might
be anticipated momentarily, said
(Continued on page 3.)
IMPROVEMENT
IN BUSINESS
IS WIDESPREAD
Country Now Experiencing
Spurt of Unexpected
Proportions
NATIONAL LEADERS
SHOWING OPTIMISM
Copyright, 1933, by U. P.
WASHINGTON, May 6. (UP).
Tin- .steady improvement in busi
ness conditions in recent weeks
has resulted in the re-employment
of thousands of workers daily in
the country's shops, mills and
stores, a survey by the United
Press revealed today.
Scattered business reports from
industrial centers indicate thai
the country is experiencing a
spurt of unexpected proportions,
which if continued, may shortly
raise activity to above the levels
of a year ago. This would b«'
the first time since the start of
the depression 3 1-2 years ago
that industrial activity exceeded
the corresponding period of tho
^receding year.
Leaders of American industry
here for the United States Cham
bers of Comerce meeting and also
government officials who scan
closely trends of American busi
ness are unusually optimistic over
business conditions and believe
that-the current expansion is of
more tha nthe usual seasonal
spring proportions.
Pent up buying demand ac
cumulated during the long de
pression years was said to have
been loosened by such administra
tion steps as proposed inflation
of money or credl determination
to balance the federal budget by
clipping a billion dollars off ex
penses and "the forth-coming
world economic conference where
world business is expected to bo
set on a firm foundation.
Preliminary reports from vari
ous "key" industries like auto
mobile, steel and retail trade in
dicate a real improvement in
many directions. Steel operations
in the country's mills this week
approached 3<> per cent of capac
ity, compared with the 10 per
cent low over the year end and a
•40 per cent rate at which it is
estimated the industry can op
erate it t a profit.. Operations are
the highest in more than a year
for the second successive week.
Heavy retail sales of automo
biles, which has necessitated a
step up in production, had its im
mediate influence on the steel in
dustry. Automobile output in
April was estimated at 160,000
units, against 150,000 in April, a
year ago, bringing output for the
first four month:, of this year to
above corresponding period of
last year.
Two other important baromet
ers of business—car loadings and
output of electrical' energy—are
so close 4o last year's level that
only a lew more weeks may
elapse b?'.ore they are exceeded.
Output of electrical energy in
the past week was only 1.8 per
cent unde ra year ago and show
ed gains over a year ago in the
northeastern sections of the Uni
ted States. Preliminary car load
ing statistics for last week indi
cate that the loss from a year
ago might be onlv a few per
cent compared with the recent
average loss.
Rising stock and commodity
prices, which have reached the
highest levels in many months,
are said to have had a powerful
influence in bolstering business
sentiment throughout the country.
In addition to "discounting" in
flationary money threats, the
rise in prices of various goods is
believed to signify the confidence
on the part of many buyers that
values will not go lower.
Many economists point out that
a steady rise in prices might in
dicate the end of the depression
and the current upturn is being
closely watched for a clue as to
the immediate prospects of busi
ness.
THPgqiSB
What is
Copdell Hulls
HOME STATE
Wuch cmr is fakthec .
HOm^OR MAflSTfCKAMF.OF
I NEWtOPK? THIS" CUPVtO ftAN£ ?
For eorroct' a»w*ri to tlie»o
quMtiox, plwi« turn to pago 5,