Newspapers / The Times-News (Hendersonville, N.C.) / Dec. 16, 1938, edition 1 / Page 1
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WEATHER _ riB orni continued cold tonight; partly cloudy, slightly F*'r (Tin1 (Ttntrs - 2sreitTjS Largest Daily Circulation of Any Newspapes in North Carolina in Proportion to Population GOOD AFTERNOON Cleveland, O., councilman told the Abraham Lincoln Brigade they couldn't hold a tag day. "Tag, you're OUT." IfOL 57—No. 300 HENDERSONVILLE, N. C.'i FRIDAY, DECEMBER 16, 1938 SINGLE COPIES, FIVE CENTS * * * * * * * * # * * * * * * * * * * * * ays Britain To Offer Duce Somaliland ONDON HEARS AZI COLONY MAND NEAR enchnian 'barges British 'Ian in Hope of Forcing French Concession :E NEW~GERMAN I MOVE FOR UKRAINE }'\i:i> i'c-c. 16. (IT)—Parti i t French political writer c fore'gn affairs ex 1 st real name is Andre w ■ lt in today's L'Or > .-a: . that British Prime Minis Chamberlain is prepar r tv offer Premier Mussolini > : u 'and and that Cham u.:: believes France will be • -hereby to jrive up French r a::d. the Port of Djibouti d the French - owned Addis l a ct .way as a consequence, is the chief port on the African coast and the rail-j i: - the only one leading to1 i-; > \ aba. ■LONDON. Dec. 16. (UP>—The B;.y :U-ra!d >aid today that Capt. R:: Wliiilflinnn. personal aid to Kncelior Adolf Hitler, would R: London in January to a>k Bsc:!;, for the return of Ger Rr's war-lost colonies. HThe paper said the captain had B- chosen since he has no offi ■. position in the German gov p.ment and his previous meet ■s with British statesmen had en informal and for the purpose improving Anglo-German rela r.s—indicating that the German vernment is approaching the co r..ul question cautiously. AZIS SAY-ACTION' 0 WIN COLONIES BERLIN. Dec. 16. (IT)—Chan . r Adolf Hitler and Field Mar t. Hermann Wilhelm Goering srted last night that Germany jsesses the strongest fortifica tr.s in the world and realizes a: her demands for colonies can 1 sat -fied "only by action.*' Hitler and Goerine spoke be i'c :.000 automobile highway gathered in the huge tutsohland Halle to hear Reich nor of Roads FiitZ Todt iveai a program calling for con Cruc*i<>n of 8.075 miles of new :2r.v.;.;-< throughout the Greater eich. Todt. who directed the rapid ; the military hitrnways tGermany's new Siegfried : r : titrations in the Rhine »: not: need that 1,863 miles : the new highways already had npleted in Germany pro '<•" A.:stria and the Sudetenland. Announcement of the highway "' gram coincided with af'.rm^tion that the next few 1 -ild reveal a sharp shift i;i; armaments toward co Wir.ation of the nation's trans - '• ni as a necessity of na (Continued on page four.) IE DECREE MULCTS JEWS -*cess Wealth To Be Liqu idated; Returned in State Bonds &OJIK. Dec. 16.—(UP)—The hornet •. iav approved a decree c?, kalian Jews to register *•; thoi: p- operty. . ^wning property exceed 1-"k ;i'.its outlined in a previ wcr«-e will be obliged to turn !v;r the excess to the government Ii0: r-i iation and return to its rs in the form of special gov - nment bunds, bearing 4 per cent •fertst. t< npentvn ImI night—16 Thursday Maximum temperature—52 de *r«€s. Minirr. im—29 degrees, «*ar. 40.5 degrees. (J^y's range—23 degrees. f;: *1 mean temperature for •j*" ' —39.3 degrees. !Ja "lit *0 date—.40 inch, ^ufiuai rainfall—-5.46 inches. . <! Principals of Inquiry Into Drug Firm George Dietrich F. Donald Coster, president, and George Dietrich, assistant treas urer ol McKesson & Kobbms, Inc.. were arrested in the' for mer's Fairfield. Conn., home on Federal charges of violation of the Securities and Exchange act. The arrests followed dis covery of a possible $ 10,000, 000 to $18,000,000 shortage in assets of this third largest U. S. CHARGE NAZIS EXTEND POLICY INTO ENGLAND Jewish Program Projected There; British Resent ment Still Growing LONDON. Dec. 10.— (UP) — Prime Minister Neville .Chamber lain yesterday served direct warn ing on Germany that any Nazi at tempt to upset European peace must reckon not only with Brit ain's vast armaments but also with "our great financial resourc es, which might prove the decid ing factor." Chamberlain's new word of caution to Chancellor Adolf Hit ler was considered highly sgniifi cant in view of information that Earl Baldwin of Bewdley, Cham berlain's predecessor and Britain's outstanding conservative, is quiet ly coaching former Foreign Sec retary Anthony Eden's demand for a firmer foreign policy against the dictators. Speaking at a luncheon in the house of commons honoring the new Lord Bicester — he was Vivian Hugh Smith, prominent banker, before his elevation to the peerage—Chamberlain said: "When German statesmen re flect on the possible consequenc es of conflict they think not only of our armaments but our great financial resources, which in a war of long duration might prove the deciding factor. "This has a great influence in preserving the peace of the world. "The city of London (the fi nancial district) is one, of the great influences and great re sources of this country which car ries weight abroad." Pressure against the gaunt, 69 year-old champion of "peace within our time" to force him to take a firmer stand against the menaces of the Rome-Berlin axis was crystalizing in several quar ters last night. The extent of growing British resentment toward Germany, in tensified by the Reich's anti-Se (Continued on page three) Julian F. Thompson drug firm. Federal action was iutiKated by directors upon the report of Julian F. Thompson, Rail Passenger Rate Cut Half Cent In South WASHINGTON, Dec. 16. (UP) The Southeastern Railroads' Pres idents' conference today voted to reduce passenger fares, to one and i one-half cents per mile in coach- ( es. The new rate representing a one-half cent cut will be effective as soon as tariffs can be publish ed, probably in January. The new rate would apply to ail railroads east of Mississippi river and south of the Ohio and Potomac rivers. Judge Plyler Is Furman President GREENVILLE, S. C., Dec. 16. | Judgre John L. Plyler, of the Greenville countv court, was elect ed president of Furman university at a meeting of the board of trus tees held yesterday. An alumnus of the institution, Judge Plyler will take office on January i and succeeds Dr. B. E. | Goer, who resigned some time affo. j PLAN PRESBYTERIAN WOMAN'S AUXILIARY SESSION ON MONDAY The Woman's Auxiliary of the Presbyterian church will meet on Monday afternoon at 3:30 at the church house. A special offering will be taken at this time for Ministerial Relief and the Joy Gift envelopes will be turned in. Mrs. J. Adger Smyth, secretary of Christian Education and Minis terial Relief will give the devo tional and an original Christmas story will be read by Mrs. S. J. Fullwood. Special music will be jriven by Mrs. Harry Latt and Christmas carols will be sung. All the women of the church are especially urged to be present at this meeting. Farm Conference Ends With Call lor Halt On Federal Punitive Taxes NEW ORLEANS. Dec. 16. (UP) The American Farm Bureau Fed eration closed its 20th annual convention last night and urged ' in the name of 2,000,000 mem bers that democracy be made to work better, that the agricultural 'adjustment act of 1938 be con tinued and that "discriminatory and punitive taxes" be abolished. The federation called upon President Roosevelt to brinjr to gether representatives of indus try, labor and agriculture to dis cuss a program of action design ed to promote economic balance among these groups and to keep the conferees in session until they had agreed upon a program. "America needs an economic balance which will assure secur ity for labor, stability for indus try, and parity for American ag riculture," the federation said, J "and (this) is the only way out of our economic difficulties." The first resolution passed by 5,000 delegates in the closinsr bus iness session of the three-dav con vention chided labor for "the ex treme present-day practices of certain groups of organized labor to secure unreasonable shorten ing of hours and increasing of hourly wages . . ." Such practices, the resolution said, lead to an increase in prices and a corresponding decrease in consumption. Industry likewise was urjred to show a more cor dial inclination to "peaceful and fair" negotiation. F. Donald Coster treasurer, who said he suspect ed irregularities three years ago, made a private investiga tion and found fantastic" ele ments in the company's affairs. Last night Coster was revealed to .be Philip Musica. Finger prints, United Press dispatches said, identified him as the ex convict with a long police rec ord. CONCERT BY SCHOOLS SET 7:30 TONIGHT Band, Other Units and So loists Will Perform This Evening Hendersonville city schools will give a music concert tonight at 7:30 o'clock at the high school au ditorium. The concert will be un der the direction of Julian Helms, band director, and Miss Elva Schreyer, director of the high school glee club, rhythm band, and elementary chorus. The program will open with se lections by the high school band. These selections will include three sacred and four secular numbers. The high school glee club will give four selections of popular and Christmas numbers. The rhythm band, selected from the third grades, will give two numbers. The elementary chorus, which is composed of members of the sixth grades will give four selections ap propriate to Christmas. The elementary school instru ment class will give six selections. Solos and duets will be given by Charles Morrow and Carroll Lip pard, Forrest Gardner and Eugene Feagin, Emmy Lou Wilkins, and George Wilkins. The program will be concluded with the Poet and Peasant Over ture, three novelty selections by the high school band, and "0 Lit tle Town of Bethlehem," and "Si lent Night." BAT CAVE WINS FIRST PRIZE IN LATE CONTEST Balfour Second, Flat Rock Third in Registering on Visit to City The Bat Cave school won the $25 first prize-, offered two weeks ago for the greatest per centage of enrollment registering at the city hall. A total of 66 pupils from Bat Cave registered out of an enroll ment of 84, and in addition this school had the longest distance to travel to reach Hendersonville. Awards were made on the ba sis of percentage enrollment reg istering plus mileage to Hender sonville. The Balfour school won the second prize of SI5, and Flat Rock third prize of $10. , A total of 216 of an enroll ment of 302 registered from Bal four, and 112 of an enrollment of 292 registered from Flat Rock. A total of 872 pupils from 11 county schools registered at the city hall in the contest. Schools represented in addition to the winners were East Flat Rock, Mills River, Edneyville, Eotwah, Dana, Tuxedo, Valley Hill, and Fruitland. DRUG MAGNATE OLD EX-FELON, ENDS HIS LIFE Coster, Exposed as Musica, Indicated as Involved in Gunrunning TRAFFIC Tn~~ARMS FOR SPAIN INVOLVED FAIRFIELD, Conn., Dec. 16. —(UP)—Frank Donald Coster, president of McKesson & Rob bins, shot himself to death at hi* home here today. NEW YORK, Dec. 16. (UP) — Federal agents today hunted for evidence of gun-running and alco hol traffic in the affairs of Frank Donald Coster, president of Mc Kesson and Kobbins, Incorporat ed, a pillar in the wholesale drug business, who was exposed last night by his fingerprints as being also Philip Musica, swindler, with a prison record. The unmasking: of Costner us a man with an unsavory past was the second blow to fall upon his Wall Street associates. His firm, the third largest of its kind in the world with $87,000,000 listed assets and $174,000,000 annual business, failed two weeks ago with an $18,000,000 shortage. The shortage was not in cash but of tangible goods. Huge warehouses, stocked with drugs that had been carried on *'5ie boo'ks, did not exist." Coster is under technical ar rest in his palatial Fairfield, Conn., mansion after indictment by a federal grand jury in which he is charged with having filed false statements with the New York Stock exchange. The revelation came shortly af ter Coster and other officials of the McKesson and Robbins con cern had been indicted by a fed eral grand jury on four counts, three of which charge violation of the securities and exchange act, and the fourth conspiracy. The charges involve the $18, 000,000 in missing assets of the drug concern. Coster was closeted with attor neys at his home in Fairfield last night and with his indicted asso ciates will be arraigned at 10:30 a. m. Monday. i Police said that Coster's finger prints are the same as those of Philip Musica, a central figure in the "human hair frauds" of a ! quarter century ago. Inspector Joseph Donovan of the New York police department, said Coster, arrested after the j sensational exposure of a gigan tic drug fraud, had been "defi nitely identified" as Musica. Musica, a youthful business sensation of the pre-war years, was tried and convicted in 1913 for a $2,000,000 swindle involv ing the vast United States hair company. It was believed that Musica, son of an Italian immigrant and who rose to be a financial power on Wall Street and was associat ed with many of New York's lead ing bankers, had used a system similar to that in the McKesson and Robbins case, to "kite" fake (Continued on page three) Million Dollars In Cancelled City Securities Burn City Officials Stand By to See Paid Bonds go Up in Smoke Approximately a million dollars in cancelled securities of the city of Hendersonville and the water commission went up in smoke at the city incinerator yesterday af ternoon. City officials stood by to watch as the securities, consisting of bonds and notes, were reduced to ashes. A register of the cancelled se curities was signed by city offi cials, showing that the obligations had been paid and the security de stroyed. Attending were Mayor A. V. Edwards, City Clerk R. R. Ar ledg.e, Commissioners W. O. Allen, B. L. Foster, J. Harvev Rig?an, and T. Lee Osborne, Auditor J. A. Woodward, J. H. Lamplev, of the water commission, Z. C. Byers, member of the water commission, j and a number of disinterested wit nesses. LEGISLATORS HERE FAVOR TEACHER AIMS Dinner Conference Largely Attended and Success ful Event 12TH GRADETbETTER CONDITIONS SOUGHT Public school teachers and offi cials of Hendersonville and Hen derson county to the number of about 125 met at the Ames hotel last night for a dinner session jn which interest centered in the ad dresses of those who will be iden tified with the legislature next year. The speakers expressed them selves as being heartily in accord with many of the objectives of the teaching pi'ofession and all ap peared happy over the success of the gathering. Miss Lucile Sales, president of the city classroom teachers' asso-, ciation, acted as toastmaster. The Rev. N. A. Melton was elected president of the Hendex* son county unit of the North Car-: olina Education association, and T. A. Cathey was elected secre tary. . The principal speakers were L. R. Prince, senator-elect; M. M. Redden, chairman of the Demo cratic executive committee of this county; W. A. Hart, history teach-; er of Wcavenrllc and president; ; of the Classroom Teachers' asso ciation of Western North Carolina,! and Hubert C. Jarvis, representa-1 tive-elect of Runcombe county. L. L. Rurgin, representative elect of Henderson county, was unexpectedly detained and was not j present. Miss Sales, in paving the way for the speakers, congratulated the gathering uoon being "educa tionally-minded" and relieved any tension that might have existed by saying that the meeting had not been arranged for a debate but for closer acquaintance and the: furtherance of some of the goals of the teaching profession. Some of the main goals includ-1 ed restoration of salaries to a pre-1 depression level, social security as it embraced retirement, addition of 12th grade, federal aid, reduc tion of teacher load, a state-wide nine-months school term, compul sory attendance, sick leave with pay, vocational guidance, etc. She solicited the aid of the audience I in the accomplishment of these I goals. Mr. Prince expressed the opin ion that the state's school system had grown more rapidly with new schools and courses than had the provision for caring for the bet ter interests of the teacher. Mr. Prince said he was heartily in fa vor of the objectives with which he had become familiar but ex i pressed the fear that the teachers ; were "advancing on too many fronts," because such a program would involve enormous expendi l tures. Mr. Redden said his parents had taught public schools and that his mother now being engaged in the work he was naturally interested in the welfare of the profession. He said it was the most underpaid profession, considering the quali fications required of a teacher and the cost of preparation. He said the salaries were almost an "insult to your intelligence but the situa tion can't be improved until you j organize every county in the • state." He said 16,000 teachers were sufficient in number to | "make the legislators take notice," j but they wouldn't accomplish ; much without effective organiza (Continued on page three) Plans Migration Reichsbanker Hjalmar Schacht, who is in London to further Nazi plans for removing Jews from Germany, is pictured with his granddaughter. On6» rich Jew and four poor ones would be freed as a single economic unit. German Jewish Refugee Scheme Said Complicated Migration Loan Is Sug gested; Plan Needs Time and Study LONDON, Dec. 16. (UP)—Dr. Hjalmar Schacht, Germany's eco nomic wizard, last night outlined a Nazi program for the emigra tion of the Reich's 700,000 Jews to George Rublee, American di rector of the inter-governmental committee on refugees, in a se cret meeting at the British treas ury. Although Schacht's aides had insisted upon no publicity to the proposal, it was learned reliably that the president of the Reichs bank put forward the possibility of an international loan for the migration of Germany's unwant ed Jews and their resettlement in homes abroad. The wealth left behind in Ger many by the migrating Jews, de posited with a government trus tee, would aerve as security for the loan. Schacht also was understood to have broached a plan whereby the Jews would surrender their wealth in exchange for "trade coupons" to be sold by them abroad for the limited purpose of purchasing German goods, there by increasing German export* by millions of dollars. Schacht's proposals were un derstood to have been so compli cated that Rublee declined to voice his reaction to them until he has obtained expert financial and econonic advice. He will consult before proceed ing further, American, British, (Continued on page four) Death Of Clown Who Amused Millions Hastened By Premature Demise Story NEW YORK, Dec. 16. (UP)— Albert Novello, a wan little man with an elfin smile who probably made more children happy than Shirley Temple, was lying in a hospital bed a few weeks ago when he read in a newspaper that "Toto, the Clown," had died penniless. It shocked the little man, be cause Albert Novello was Toto the Clown. He then was seriously ill from a stomach ailment that af flicted him ^arly last month. He knew that the children of two generations, throughout the J world, would mourn his passing and tried to reach the writer of the article, Hugo Roboz, but Ro boz had died the day the story was published. The cycle of tragedy hurried Toto toward his end, and yester day the sad little man, known to millions of children as the "be loved clown" and regarded as one of the great tanbark artists of all time, died in a hospital in tho Bronx, stricken with grief at the strangely premature story of hip death. The passing of Toto the Clown ends an era in showmanship that probably will not recur. He w*s the last of a generation of circus artists—although he never per formed under canvas in America —and his magic feet had shuffled their quaint burlesque dances be fore the crowned heads of Europe and the children of New York's (Continued on pag« four) SHUT AT LIMA ML ACT ON OFFER Conferees Are Still Work ing on Peace Machinery for Americans FRANCO PROPOSES SURRENDER BY FOE LIMA, Peru, Dec. 16. (UP)— Cuba today proposed to the I'an American conference that the American republics attempt medi ation of the Spanish civil war. The Cuban proposal was oppos ed by Uruguay, among others. The steering committee will meet to morrow to decide. Coordination of all peace ma chinery in the western hemisphere by the Eighth Pan-Ainorican con ference last night was proposed in a project submitted by the United States delegation. The United States proposal, aimed at elimination of duplica, tion and the consolidation of ef forts to banish war from the Americas, would merge into a sin gle instrument the most pertinent provisions of eight existing peace treaties. The provisions of the proposed treaty have been lifted bodily from the pacts and conventions for which it is proposed as a sub stitute. ... It is divided into four chapters, the first of which is devated to the prevention of controversies; tho second the renunciation of war, pacific settlement of controversies, commissions of investigation and conciliation; the third,, good of fices of mediation; and fourth, ar bitration. The eight pacts replaced would be automatically • superseded by the new coordinated treaty as it is ratified by the signatory coun tries. FRANCO SUGGESTS TRUCE IN CIVIL WAR HENDAYE, Franco - Spanish Frontier, Dec. 16. (UP)—A radio broadcast from Generalissimo Francisco Franco's Burgos head quarters yesterday suggested—al most at the hour fixed for the start of his heralded Catalonian offensive—that the 29-months-o!d civil war might be ended by means of a truee. . Frontier reports had indicated that Franco would throw 260,000 troops into the biggest drive of the war Thursday out an insurg ent communique at 3 p. m. report ed "all quiet on all fronts" be cause of violent rains, 16-foot floods and inundated trenches. The Burgos suggestion of a peace settlement was the first in timation from the insurgent side that Franco was willing to consid er a truce, although the loyalist at Barcelona has indicated on sev eral occasions that it would talk peace "on a basis of equality." The radio station said there were indications that a new gov ernment might be established in I loyalist Spain with "moderates" in control and said that if the ex tremists were ousted "discussion of peace would become feasible." The Burgos radio, whose pro posal was based on a stipulation that the loyalist army would have to make a complete surrender and that all extremists must be driven from the Barcelona government, j suggested that Julian Bcsteiro i might be made premier as "a step i toward" ending the long and bloody conflict. The loyalists simultaneously an nounced the uncovering of "an enormous Fascist espionage ring" (Continued on page three) 7 Shopping uoys TiH Christmas. ; * - 1 \fc>uNG U»CLP m'D ScOfJ IftUt CcwfttU ©e gwjmanv*# T OOKINO BACK TO CHRI8T U MAS SEVEN TEARS AGO— A bleak Christmas, with Jepres sion stalking the land. . . . President Hoover was recom mending RFC. . . . Army of 1200 "hunger marchers" return ing home from Wasnington. . . . Young Herr Hitler was informing world he'd soon take over control of Germany. . . . U. S. disturbed over Jap con quest of Manchuria. . . . Throngs saw Navy's new dirig ible Akron float qver New York.
The Times-News (Hendersonville, N.C.)
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Dec. 16, 1938, edition 1
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