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VOLUME XX
8 PAGES THIS WEEK THE BEAUFORT NEWS THURSDAY, AUGUST 27, 1931 PRICE 5c SINGLE COPY
NUMBER 34
whringhaiis
Arouses Much Interest
Two Candidates For
Have Announced
pected. Strenuous Fight In Sght. Senatorial
Contest Will Be Hot Also
By M. R. DUNNAGAN
RALEIGH, Aug. 25. Political
invpral rlavs has cen-
leoinmem. w. - -tered
largely around the announce
ment of J. C. B. Ehringhaus, Eliza
beth City, for the Governorship, and
his "confession of faith" which fol
lowed last week, close upon the heels
of the announcement of Lieutenant
Governor R. T. fountain.
With two candidates definitely in
he field, the question arises as to
what others and when others will do.
It begins to look now as if there will
be four candidates certainly, and
possibly six before filing time expires,
even though much can happen in the
nearly 10 months until the June pri
mary. .
Attorney General Dennis u.
Brummit, his friends say, is expected
to announce his candidacy soon, al
though he has made no definite state
ment. Commisisoner of Revenue A.
J. Maxwell, it may be definitely said,
intends now to enter the race, but his
announcement may be some weeks
in coming. It is known that Willis
Smith, speaker of the House, is still
giving serious consideration to enter
ing the race. Josephus Daniels, Ra
leigh publisher, is still considered a
prospect, although at present in the
background.
The Ehringhaus statement has
been provocative of such comment,
much of it favorable, some critical.
He stands on the Democratic record,
legislative and executive, admitting
it falls short of and overreaches in
some respects his own desires. He calls
for a balanced budget, strict but sane
economy, no new departments, but
eliminations and consolidations
where practicable, careful conserva
tion of the State's credit, the short
ballot if the people want it, imme
diate revaluation of property, equity
in taxation, opposes sales and lux
ury taxes, classification and relief
from part of the tax of small farm
and home owners, live at home pro
gram, now markets for products, co
operation in growing and marketing
crops, develop latent resources.
These, and the additional state
ment that he will make a vigorous
canvass of the entire State, indicate
the strenuous fight that will be wag
ed in the. State for two-thirds of a
year, months longer than usual.
There is comment on the likeness of
the Ehringhaus platform to the Max
well stand, their views coinciding on
most important issues. Willis Smith
apparently sees conditions through
similar eyes. There is a divergence
in the Brummit views, so far an
nounced, in that he is favorable to
ward a luxury tax,: if needed, as a
supplemental, not a substitute tax,
opposing a general sales tax.
Like Fountain, Brummitt oppose
the short ballot. Brummitt, seem
ingly, approves the taxation mea
sures enacted by the General Assem
bly. Fountain is crit'cal of that body,
not, he explains, for' what it did, but
for what was propose- to it to do,
and it declined, in part, adoption of
the short ballot. Josephus Daniels
has been critical of legislative acts,
particularly as they deal with taxa
tion. Even with the likeness in views,
sufficient differences exist
among
candidates and prospects to make itjsideration $372.15.
a hot campaign. I C. S. Nelson and wife to A. M.
The Senatorial Race , Nelson, 1 acre Morrimon Township.
In the background for the moment j Consideration $10.00.
is the senatorial race, but it is not j Dan Morris et al to Mamie Mason,
expected to remain there long. Sen- II lot Atlantic. Consideration $25.00.
ator Cameron Morrison, back from !
the Dare celebration last week, was
particularly pleased with his findings.
"Why, they told me I'd better
watch out for the east. I talked with
many of the boys down there from
all sections and well, I'm feeling
mighty good about it,' he said, and
showed it. Asked if Hoey would op
pose him, he said:
"If it hadn't been for Clyde Hoey,
I would r.rt be senator now. He is
one of th best friends I have." And
he declir. J to discuss it further.
A. L. I" rooks. Greensboro, in Ra-'
leigh last week, conferred at length !ers. The party, consisting of Mr.
with frier.ds, and about entering the ! and Mrs. Thomas O'Berry, Cjolds
enatorial ra'ce. Mr. Brooks said forjboro, Mr. and Mrs. Arthur C. Gatch
PubliraHnn tfeof kn iiod nnf vat Hp-'of Raspberry, Ky.. Mr. and Mrs.
tided. Hotel lobbv crouns auoted
him a? saying he expects to announce
his candidacy. Thomas C. Bowie,
Frank D. Grist and Robert R. Rey
nolds are the announced opponents
of Senator Morrison, and evidence is
that all. of them are active, though
Quietly, a stillness which may become
(Continued on page eight)
Statement
Democratic Nomination
Now and Others Are Ex
Big German Seaplane
Passed Here Yesterday
Flying 1000 'Feet In the Air at Ap
proximately 100 Milei An
Hour Headed for N. Y.
Beaufort people were given an op
portunity yesterday to see the giant
German seaplane DO-X at close range
and most of them took advantage of
the opportunity. The big flying boat
followed Carteret county's ninety-
mile long coast line and so probably
a majority of the people in the coun
ty saw her yesterday.
The DO-X came here from Char
leston bound for Norfolk where she
arrived safely yesterday morning.
She passed Beaufort at about 8:45.
The big airship was said to be mak
ing 100 miles an hour and it took
her only a few seconds to disappear
from view. She appeared to be fly
ing quite low and some thought not
more than two or three hundred feet.
Others said that owing to the tre
mendous size of plane that she ap
peared to be much lower than she
really was, and that she must have
been fully 1000 feet in the air.
The DO-X is a German vessel and
she started from Germany on her
long trip more than a year ago. Ow
ing to various mishaps she has not
made a quick trip. She flew across
southern Europe, along the African
coast, then across the Atlantic to
Brazil and from there came up via
the West Indies to Miami, Fla. She
is due in New York today at about
11:30, and will be there for some
time before starting her journey back
to Germany via -Newfoundland and
the Azores.
CITY POLICE COURT
A few cases were disposed Friday
afternoon in Mayor Taylor's court.
They were the following:
Guy Parker, colored, dnnk and
disorderly, guilty. Fined $1 and
costs or five days on the streets.
Lem Mason, drunk and disorderly,
guilty, $1 and costs or five days.
Charles Williams, colored, assault
ing his wife, case continued.
William Fulford, drunk and dis
orderly, guilty. Fined $5 and cost.
Same defendant charged with an as
sault on his wife was bound over to
the Recorder's court, also bound over
on the charge of resisting an officer.
S. A. Rice, drunk charge, case con
tinued. Recorder's Court Held
Very Short Session
Only one case was tried in Recor
ders court Tuesday, that of Charlie
Piner of Morehead City, charged
with an assault. Piner is a police of
ficer at Atlantic Beach. The case was
dismissed. As Superior court was
in session in the county building
Judge Davis held court in the audi'
torium of the city halL
REAL ESTATE TRANSFERS
W. C. Gorham, Com., to M. L.
'Mansfield, 1 lot, Morehead City. Con-
Clifford VV Ulis and wife to lona ts.
Willis et al, 8 acres H. Q. Township.
Consideration $5.00.
Melvin Styron et al to J. M. Dan
iels, 1-2 acre Cedar Island. Consid
eration $50.00.
ENJOY FINE FISHING
Captain John M. Dickinson of the
cruiser, Idle-On, has just returned
from a fishing trip to Ocracoke'and
reports splendid fishing in that vici
nity. There was a good variety of
fish, trout, blue-fish, king fish or sea
mullets, large yellow finned croak-
Howard Bregeh, and Mr. and Mrs.
Spencer B. Curry of Baltimore. Fish
were biting eo fast that it became
more like work than pleasure to pull
.hem in.
MARRIAGE LICENSES
Stanley Harold Everett and Irma
Fulford, Morehead City.
FEDERAL RESERVE
WINS SUIT WITH
NEW BERN BANKS
Judge Meekins Decides
To
Dismiss Million Dol
lar Suit
PLAINTIFF MAY APPEAL
NEW BERN, August 25th.
The $1,000,000 suit brought by
various stockholders and creditors
of the National Bank of New Berne
and the First National Bank of New
Bern against the Federal Reserve
Bank of Richmond has been dismiss
ed by Judge I. M. Meekins, of Eliza
beth City. It is probable however.
that the plaintiffs may either appeal
or me individual suits along the line.
News of the judge's decision to
dismiss this suit came in a letter
to Wilson H. Lee, one of the attor
neys for the reserve bank and for
Receiver R. E. Schumacher, a party
defendant to the suit. Copy of the
letter was sent by Judge Meekins
to M. G. Wallace, counsel for the Fed
eral Reserve Bank of Richmond, who
had associated with him in the case
Mr. Lee and Newton D. Baker, for
mer secretary of war during the
Woodrow Wilson administration.
Copies of the ruling were also
sent to 'R. A. Nunn and . E. White
hurst, who, with W. B. R. Guion, re
presented the plaintiffs in the suit.
The official decree has not yet been
filed in federal court here, Judge
Meekins asking the defendant lawyers
to present to him a decree to sign in
consistence with his holdings that the
demurrer in the case should be sus
tained and the motions to dismiss
the amended bill and intervening pe
titions should be allowed.
It is thought that dismissal of
this suit may help expedite the cases
of the federal reserve bank against
various local debtors of the First
National bank, whose notes had been
hypothecated, irt Richmond.. A num
ber of these suits are pending here
in superior court.
The case is entitled W. J. Lucas,
Jr., and J. W. Lucas, administrators
of the estate of W. J. Lucas, deceas
ed, and Kate S. Lucas, on behalf of
themselves and all other stockholders
of the National Bank of New Berne
who care to make themselves parties
hereto and on behalf of themselves
and all other creditors of the Nation
al Bank of New Berne or the First
National Bank of New Bern who care
to make themselves parties hereto,
plaintiffs, vs. the Federal Reserve
Bank of Richmond, Va., a corpora
tion existing under the act of con
gress known as the Federal Reserve
Act, the National Bank of New
rBerne, and R. E. Schumacher, re
ceiver of the First National Bank
of New Berne, defendants.
The complaint alleged that the fail
ure of the local national bank was
due to the fact that the Federal Re
serve Bank of Richmond charged too
high rates of interest and held too
much collateral for local loans. It
set out that the purpose of the fed
eral reserve system was to help rath
er than destroy dependent banks.
Several months ago the motions
to dismiss the amended bill were be
fore Judge Meekins, Mr. Baker join
ing with the defense solicitors against
the local attorneys for the plaintiffs.
MJriefs were then filed in the cation,
and it is on these that the judge has
made his decision, "after long and.
(Continued on page eigni
BIG INCREASE IN NORTH CAROLINA
SHOWN IN HIGH SCHOOL ENROLLMENT
Br M. R. DUNNAGAN
RALEIGH, Aug. 24. Enrollment
of white children in the high schools
of North Carolina increased 61.3 per, compared with 14.4 per cent in high
cent in the rural and 36.7 per cent 'schools in rural sections. Only 2.5
in the charter schools, or a State-1 per cent of rural negro enrollment
wide increase of 51.3 per cent, in the was in high schools, and 14.7 per cent
five-year period from 1924-25 to of enrollment in charter schools was
1929-30. it is shown in a table in
"State School Facts," monthly pub
lication of State Superintendent A.
T. Allen
White enrollment increased from
67.086 to 101,486 in all high schools,
the rural enrollment increasing from
39,832 to 64,232 and the charter
37,254 and the other man that went
school enrollment from 27,254 to
37,254 in the five-year period, the
table shows.
Negro enrollment in all State high
schools increased 129.3 per cent in
thet period, or from 6,507 to 14,924, increased 51.3 psr cent in white high
the rural schools shewing an increase : school enrollment in the five-year
from 1 237 ,to 4,813, or 2S9.1 per:peiiod, or from 238 to 3C0. On the
cent, while the charter schools sho-v-;
ed an increase from 5,270 to 14,924,
or 191.9 per cent.
In the white schools 16.7 per cent
of those enrolled were in high school
in 1930, while 5.7 per cent of the
BUNCOMBE COURT
CONVICTS THREE
ONFRAUDCHARGE
Ex-Senator Lea and Son Luke,
Jr., and Wallace Davis
Convicted
2 SENTENCED TO PRISON
ASHEVILLE, Aug. 25. Luke
Lea, Tennessee newspaper publisher
and former United States senator,
today was sentenced to serve from
six to 10 years in North Carolina
state prison for defrauding the Cen
tral Bank and Trust company here of
$1,136,000,
Luke Lea, Jr., convicted along with
his father in the conspiracy trial
which has been under way here for
more than four weeks, was fined
$25,000 after Solicitor Zeb V. Net
tles had made a plea for him on the
grounds of his age 23 and the
fact that he was merely doing as in
structed by his father.
Wallace B. Davis, president of the
bank, who already faces a five to
seven-year sentence in connection
with its failure, was given four to six
years in prison.
E. P. Charlet, business associate of
the Leas, was acquitted by the jury
and discharged by the court.
Tried On Six Count
They were tried on six counts of
conspiracy to defraud the bank and
one count of misapplication of its
funds pursuant to the conspiracy,
The Leas were convicted on four
counts, and Davis on three, but Judge
M. V, Barnhill, who presided over
the special term o Superior court
called by Governor Gardner to try
them, set aside the verdict on the
count in which the Leas alone were
convicted, as it charged conspiracy,
of which they could not have been
guilty except in conjunction with an
officer o the bank.
They were sentenced as follows:
First -count, charging conspiracy to
misapply " $300,000 worth --f - the
bank's certificates of deposit Davis,
two to three years; Luke Lea three
to five years; Luke Lea, Jr., fined
$10,000.
Fourth count, charging conspiracy
to misapply $100,000 more o cer
tificates of deposit Davis two to
three years, to be served at the ex
piration of the first term; Luke Lea,
j three to five years, to be served like
wise; i-uice Juea, Jr., to pay Bun
combe county $5,000 toward the costs
of the case.
Seventh count, charging actual
misapplication Davis four to -six
years, to be served concurrently with
first two sentences: Luke Lea, 6 to 10
years to be served likewise; Luke
Lea, Jr., fined $5,000 and ordered to
pay $5,000 toward court costs.
Fifth Count Set Aside
It was the fifth count, charging
misapplication of $100,000 worth of
cashier's checks, on which the Leas
were convicted alone, on which the
verdict was set aside. Returns of "not
guilty" were made upon the other
counts. i
BIRTH OF DAUGHTER
Born to Mr. and Mrs. K. W. Wright
at Potter Emergency Hospital, Mon
day, Aug. 24, a daughter.
J. E. Holcombe of Columbus Coun
ty inquired of his county agent, how
to grow 50 bushels of corn an acre.
He says he will reach the mark from
present indications.
negroes enrolled were in high school.
The percentage of high school pupils
in white charter schools was 23, as
in high schools. '
High schools in the State numbered
913, of which 778 were for white
and 135 for negro pupils. Accredit-
ed white high schools number 608,
while 170 are unaccredited, and of
the negro schools 68 are accredited
and 6 are not. The State has 4,904
high school teachers, 4,295 in the
white and 609 in negro schools. In
1930 white graduates from high
schools 13457, while negro grad
uates numbered 1,687.
Carteret county, the report shows,
total enrollment, 16 per cent of the
pupils were in the high school, the
jcounty taking 37th place among the
. 100 counties. In 1930 this county
graauated 47 white pupils from high
school.
Last Of County Cases
Are Now Being Tried
Examination of Wtnesses Started for the County
Started This Morning. Defendants Counsel
Object To Much of the Testimony and Re
sist Vigorously. Question of Politics Inject
ed Into the Trial By Attorneys Moore and
Hamlton.
'
Make Banks Safe Says
Commissioner Hood
By M. R, DUNNAGAN
RALEIGH, Aug. 25. "It is our
desire to so administer the supervi
sion of banks in this State that if a
bank is open and doing business, the
public may believe that we think it
is a safe place in which to deposit
money, and we expect to use every
bit of our energy, influence and pow
er to bring this result to a conclu
sion," ?aid Gurney P. Heed, Com
missioner of Banks, in a radio talk
in Raleigh last Saturday night.
Officers and directors of banks
should consider their positions as
places of trust, and funds in banks
should not be used for promoting
their own affairs, but they should
guarantee to every depositor or
creditor the safety of funds put in
their hands, Mr. Hood said. He dis
couraged large and excessive lines
of credit to officers and directors,
saying every man or firm should pay
lines of credit at least once each
year.
Every person connected with the
Banking Department must be of high
character, courteous, considerate and
willing to render the best possible
service, and this should extend to
every person connected with a bank,
Mr. Hood said.
: "The- bankers of North Carolina
have a great opportunity to lead the
people in sound thinking, in safe
business methods, in clean political
thinking. Through much leadership
we can partially overcome the pres
ent depression and restore prosper
ity in our State," he said, saying that
the "live at home" farmers are gtn-
erally more prosperous and that
bankers can help farmers by insist-1
ing upon such a program, especially
of those seeking credit.
Mr. Hood told of the 1931 act
placing licensing and supervision of
trust business of State and National
banks in the hand "of the Commis
sioner of Banks. The advisory bank
ing commission is planning to adopt
regulations requiring all trust funds
to be invested as provided by law or
secured by collateral which can be
converted into case immediately,
"The trust business of banks should
be more extensively developed, there
by guaranteeing to estates, widows,
orphans, insane or feeble-minded
parsons and others not qualified or
trained, a proper administration of
their affairs, so as to give them the
largest possible yield or income with
safety from the funds so invested,"
Mr. Hood said.
TIDE TABLE
Information a to the tides
at Beaufort is given in this col
umn. The figures are approx
imately correct and based on
tables furnished by the U. S.
Geodetic Survey. Some allow
ances must be made for varia
tions in the wind and also with
respect to the locality, that is
whether near the inlet or at
the heads of the estuaries.
High
Low
Friday, Aug. 28.
8:08 a. m. 1:54 a. m.
8:25 p. m.
2:03 a. m.
Saturday, Aug. 29.
8:44 a. m. 2:26 p. m.
8:58 p. m. 2:40 p. m.
Sunday, Aug. 30.
9:18 a. m. 2:57 a. m.
9:30 p. m.
3:15 p. m.
Monday, Aug. 31.
9:15 a.
10:02 p.
m.
m.
3:29 a. m.
3:53 p. m.
Tuesday, Sept. 1.
10:25 a.
10:34 p,
m.
ni.
4:00 a. m.ir
4:31 p. m.
Wednesday, Sept. 2.
10:59 a. m. 4:35 a. m.
11:59 p. m. 5:13 p. m.
Thursday, Sept. 3.
11:11 a. m. 5:15 a. m.
11:40 p. m.
6:00 p. m.
The largest of the so called
county cases, much discussed
for two or three years, got un
derway Tuesday afternoon. Im
mediately after the conclusion
of the Stancil case, which was
decided in favor of the defen
dant, the work of drawing a
jury was begun. Twenty four
Pitt county men answered to
their names and from these a
jury was chosen. A venire of
fifty had been summoned but
they did not all appear. Two
or three were excused by each
side for one reason or another.
W. B. R. Guion requested the
jurors for the county and attor
ney Louis Gaylord of Green
ville did the same for the de
fendants. The jury as chosen is
composed of farmers with two or
three exceptions and is an intelligent
and substantial looking body of men
Court convened again at nine
thirty Wednesday morning and short
ly thereafter the routine of reading
the formal complaints in the action
was begun. This required a consid
erable length of time, about three
hours in fact. By agreement of coun
sel the two cases against the defen
dants Simmons Construction Cor
poration, F. M. Simmons, George J.
Brooks, C. K. Howe, George W.
Huntley and W. L. Stancil were con
solidated. These two suits are for
approximately $800,000 and are bas
ed on allegations that the paving
done by the Simmons Corporation for
the county was poorly done. The at
torneys for the county appearing in
this trial are H. G. Hedrick of Dur
ham, W. B. R. Guion of New Bern,
E. H. Gorham of Morehead City, E.
Walter Hill and James W. Mason of
Beaufort.
The defendants are represented by
L. J. Moore, Thos. O. Moore, A. D.
Ward and Henry Whitehurst of New
Bern, Louis Gaylord of Greenville,
Luther Hamilton of Morehead City
and J. F. Duncan and C. R. Wheatly
of Beaufort. J. F. Flowers of Char
lotte representing a bonding company
is also appearing in the case.
After the reading of the pleadings
yesterday counsel for the defendants
undertook to have the question of
conspiracy tried out now and have
the question of damages submitted to
a referee. This would mean that the
whole case would have to be tried
twice which would take a lot of time
and money. The complaints of the
plaintiff allege that there was a con
spiracy between the defendants to
defraud the county out of large sums
of money. Attorneys for the county
argued that it was best to try the
whole matter at one time. Judge
Moore said he would take the ques
tion under advisement and give his
decision the next morning. Court ad
journed Wednesday at five o'clock
with the understanding that it would
meet in the following morning at nine
o'clock.
Court opened this morning at nine
o'clock and in a few minutes the talc
ing of testimony was begun. Mr.
Hedrick submitted the issues on be
half of the county and then Mr.
Guion began the reading of two da
positions taken in Charlotte and
signed by R. A. Mayer and R. D.
Linebach, representatives of the
Travellers Insurance Company which
set forth the late J. E. Woodland,
former chairman of the board of com
missioners, had his life insured for
the benefit of Floyd M. Simmons for
$50,000 and that the premium on the
policy was paid by Mr. Simmons. The
depositions also stated that upon the
death of Mr. Woodland that the $50,-
000 was paid to the defendant Sim
mons. There were objections by all
the attorneys for the defense to this
testimony and also to a great deal
other evidence offered by the county.
Other witnesses that the county at
torneys put on the stand this raorn-
inor in thoir ofFnis tn hi'ilH nn n case
Public Accountant Connor Ay-
cock, R. W. Wallace former' Register
!0f Deeds, and former County Auditor
jw. J. Plint. During the examination
of Mr. Plint, Mr. Moore and Mr.
Hamilton attempted to show that the
Continued on page five