HENDERSON,
GATEWAY TO
CENTRAL
CAROLINA.
TWENTIETH YEAR
ROOSEVELT ASKS SWEEPING POWERS
********** * **** ******* *** ****** *****
Sales Tax Passed By House, 62-43, And Hurried On To Senate
ILL AMENDMENTS
. ABE VOTED DOWN
IN RAPID FASHION
Proposed Substitution of Se
lected Commodity Tax
Is Lost by Vote of
35 to 72
DEBATE IS LIMITED
ONLY TO 17 MINUTES
Proposal To Submit Sales
Tax Issue to Voters Offer
ed by Watson of Nash But
Fails Along With All Oth
er Amendments; Many
Taxes Are Increased
Raleigh, April 20 IAP) —The House
today passed and sent to the Senate
the biennial revenue bill, levying a
two percent general sales tax on re
fill diUribuMon, and containing rr.a
tpv'al increases in most State taxes.
The vote W3a 62 to 43, excluding
five pairs. All amendments were
defeated or ruled oust of order.
The Newman proposal to su'bbsf!-
tute a selected comimlodity tax for
tir general s ales tax lost 35 to 72.
Debate on the final read'inig was
l’n-ited to 17 minutes.
Representative Walt sen of Nanh,
cne of the leaders of the anti-sales
taxes, sent forward an amendtaent
to s''bbm t the question of levying a
general sales tax to the voters at the
next general election or at the spe
cial elee‘io n if the governor calls one.
Witnesses Claim
Lane Boy Was Not
Killed by ° Tree
Hertford, April 20—(AP) —A string
o! witnesses went on the stand for
the Stale here today in the murder 1
trial of George K. Lane and his sec
<rd wife, rnarged with the death of
Lanes 17-year-old son, and gave tes
timony indicating the boy had not
not ijea'h under a falling tree, as
claimed by his father.
It \. White who said he had long
expcrifiic ns a woodsman, testified he
tmv th? tree three days after the
body was removed, and that the tree
had been out four or five days be
foie he .saw it, while another woods
man who saw the tree the day the
'body wa? removed said the tree had
bfen cu l about ten days.
Lnne claims the boy wa3 caught
under a falling tree, while the State
claims 'he lad was struck over the
head and slain, presumably for his
insurance.
Charlotte
Lady Tried
i or Murder
Mrs. Peterman
Pleads Not Guilty
to Murder of Her
Prominent Husband
Charlotte. April 20.- (AP)— Mrs-
Ruth Peterman, Charlotte society
matron, went on-trial in Mecklenburg
'Superior Court today on a charge of
murdering her husband, Roy L. Peter
man. a vice-president of ,the South
ern Pub’in Utilities Company, who
;: hot to dath in the fashionable
Peterman home the night of Feb
ruary 13.
In a court room packed with mem
htr.; of her own social set, the great
majority 0 f them women, Mrs. Peter
man though her counsel, entered a
Pita of not guilty when the indict
ment was read. Selection of a jury
v -a i begun.
Sad-eye and silent, the defendant
! ’j 1 * het ween her atorneys, John M.
Robinson and E T Cansler, at a table
oireel ly in front of Judge John M-
L;:e by, The only apparent sign of
Nervousness was the constant, mov
-1 her loft ha.nd about her mouth
chin. ’ i
Hrnfrcrsmi
P OF L TH'S A fIiJ?w, WIR]iB MBRVICID
OF THB ASSOCIATED press.
Senate Expected To Make
Numerous Revenue Changes
Will Probably Drop Kilowatt Hour and Corporation Ex
cess Levies and Raise Ho use General Sales Tax Rate
To Three Percent; Then to Conference
Daily DlM|»n(eb niirrnn.
In the Sir Walter Hotel,
ilt j. C. It/iSK Kit VIM..
Raleigh, April 20.—. The Senate is
expected to make a number of chang
es in the revenue bill and an unof
ficial po'l of its membership shows
that it will probably remove the kilo
watt hour tax on electricity and the
corporate excess tax, put on in the
House and then boost the general
salC3 tax plan to three per cent to
make up for the difference in revenue
None of the members of the Senate
are willing to be quoted along -these
lines, but in discussing the revenue
bill “off the record” many of them
consider this course is likely.
The revenue bill finally passed its
MERCHANTSWARN
SALES TAX TO BE
TESTED IN COURT
State Association Serves No
tice on House It Will
Resist Levy to the
Bitter End
NEVER SUSTAINED
BY HIGHER COURTS
Dowell Declares if Tax Is
Turned Down and Budget
Left Unbalanced by Over
$8,000,000, Legislature
Cannot Say It Was Not
Warned
f>nlly DiMiint«>h T»nr«*nn.
Tn th«* Sir Wnlfor Hotel.
TIY J, P. nASKKRVIM,.
Rbleigth, April 20 —The merchants
of North Carolina, still convinced
thlat a general sales tax is unfair, dis
criminatory and unconstitutional,
will contbst the legality and consti
tutions Fty of any general sales tax
that may be enacted in, North Caro
lina and will fight it thirougfh to the
United States Supreme Court, if ne
cessary, they told the members bf the
House and Senate today. Thiis notice
that the ywill contest a general sales
tax to tibe limit, if the General As
sembly insists upo n imposing it, was
contained in a letter addressed to
the members of the General Assembly
by Willard L. Dowell .executive sec
retary of the North Carolina Mer
chants Association, and read to the
House this morning byb Speaker R.
L. Harris. The letter was authoriz
ed by the president and board of di
(Contlnued on Page Eight.)
Huge Sum
Voted To
Aid Farm
April 20. —(AP)— An
appropriation of $100,000,000 to put
Into motion the administration’s
broad farm price lifting program was
approved today by the Senate in re
suming debate on the agricultural
(relief plan.
The fund was authorized in adopt
ing an amendment offered by Chair
man Smith, Democrat, Democrat,
(South Carolina, on behalf of the agri
culture dpartment. The government
would be reimbursd from the receipts
of the proposed processing tax.
Authority for expenditure of some
of 'the money to expand markets to
remove farm surpluses was included
In th amendment.
Prompt approval was given an
amendment by Senator McKellar,
Democrat, Tennessee, to exmpt to
bacco sweepings used in making fer
tilizer from the processing tax.
WEATHER
FOP. NORTH CAROLINA.
Mostly cloudy tonight and Fri
day; slightly colder on the coast
tonight.
ONLY DAILY NEWSPAPE R PUBLISHED
third reading in the House today, con
taining the two per cent general sales
. tax plan, the Ewing kilowatt hour
tax amendment and the Everett
amendment to tax corporate excess
in foreign corporations. The special
sub-committee, headed by Represen
tative R. Gregg Cherry, of Gastonia,
brought in the two per cent general
sales tax plan as a compromise after
the House last week refused to ac
cept the three per cent general sales
tax plan recommended by the finance
committee. The sub-committee con
tended that with the new revenue ad
ded to the bill by the kilowatt hour
(Continued on Page Eight)
To Run Indian Affairs
| 'ml
looPiP
John Collier
Complete reorganization of the In
d an bureau, wlith its control of the
affairs of of thousands of
native Americans ,is expected to fol
low oonfiirma'.ion of the appoint
ment of John Collier of California as
the new Indian commissioner. An
expert of Indian affairs, Collier was
regarded as the personal choice of
Secretary of the Interior Ickes.
93.9 Percent In March,
Against 95 Percent In
Month of February
Washington, April 20. —(AP)— The
cotton spinning industry was report
ed by the Census Bureau today t&
'have operated during March at 93.9
percent capacity on a single shift
basis, compared with 95 0 percent dur
ing February this year, and 90,1 per
cent in March last year.
Spinning spindles in place March
31 totia.liea 31,031.684, of which 23,-
429,122 were active at some time dur
ing the month, with the average on
a single shift basis being 29,134,413,
.compared with 31,088,382 and 23,659,-
100 and 29,541,551 for February this
year and 32,024,032 and 24,818,008 and
28,843,808 for March last year.
North Carolina reported 1,441,146,-
251 active spindle hours, with an
average of 250 per spindle for March.
First Contingent
Os Conservation
.Workers To Start
Charlotte, April 20 (AP)—The first
of the 32,300 men North Carolina is
expected to contribute to President
Roosevelt’s citizen conservation corps
are schedlduled to start leaving here
next week. i
Colonel E. C. Waddill, U. S. A.,
announced plans for commencement
of examinations here next week aft
er conferring with CWarles F. Gil
more, executive secretary of the
United Welfare Association, and
Ronald B. Wilson assistant State
director off Federal relief. , i
HENDERSON, N. C., THURSDAY AFTERNOON, APRIL 20, 1933
>IN THIS SECTION CAROLINA AND V^MA.
ABANDONMENT Os
umn
Conviction Spreads That
Gruelling Deflation Os
Past Years at Last
Is Ended
HIGHER COSTS OF
LIVING UNLIKELY
New Situation Should Be
Welcomed by Nation,
Bankers and Economists
Hold; Gains In Price Lev
els But Small Fraction of
Slump From Depression
New York, April 20. —(AP)—What
does it mean in dollars and cents?
This war; the question on innumer
able lips today not oly those of but
chers, bakers and candlestick mak
ers, hut of leading bankers, as mar
kets were convulsed by news that the
United Stats had suspended the gold
standard.
May Mean More Jobs.
While clear answers to the ques
tions were lacking, pending develop
ment of Washington’s controlled in
flation program, it was agreed in
many financial and economic quar
ters that it should mean more jobs.
Whether the price rise coincident
to the reduced purchasing power of
the dollar would mean appreciably
higher costs of Hying was described
as problematical. That, it was explain
ed, would depend upon the levels at
which pries are finally stabilized.
It was recalled that Great Britain,
since abandonment of the gold stand
ard there in 1931, had kept the cost
of living relatively stab’e That coun
try’s suspension of gold gave com
modity prices only a momentary
boost, but it helped England to hold
her prices in terms-of new currency
fairly stable while gold prices in the
United States and France continued
their steady decline with consequnt
further disturbance to business.
Proponents of inflation—and infla
tion means rising prices through in
<( ''"tinned on Page Six.)
Prices Soar
In Markets
Over Nation
Not Since November,
1929, Has Stock Felt
Splurge Seen There
Today - 1
New 'York, April 2Q —(AP)—De
lugd wth buying orders, commodity
and stock markets rose with sensa
tional activity today as the nation
sought to adjust itself to the pros
pect of “controlled inflation” after
more than three punishing years of
decline.
Billions were added to the quoted
values of stocks and staples.
Wall Street’s excitement amid the
confusion that attended an uproarious
rise of $1 to $9 in shares was match
ed on the Chicago Board of Trade,
where wheat was bid up three cents
and more a bushel.
Cotton at New Yorlj soared $2.50
a bale, silver futures two to three
cents an ounce, rubber, coffee, sugar,
copper, lead, hides and the other
Ibasic raw materials of trade and
commerce joined the procession-
Trading on the New York Stock
Exchange was the wildest since the
palmy days of 1929 and the high speed
tickers, geared to handle 6,000000-
share days, dropped nearly half an
(hour behind actual busness on the
floor.
The rush to buy at opening time
was so great that orders were lumped
into huge blocks, several amounting
to 10,000 shares. There was one 40,-
000 share transaction in International
Nickle another of 35,000 shares in
International Telephone. One and
three quarter billion shares changed
bands in the first half hour— the
(heaviest volume for that period since
November 13, 1929, th e day the Rocke
feller nterests placed their sensation
al order at SSO a share for one mil
lion shares of Standard Oil of New
Jersey.
U. S. Envoy at Mexican Post
'nßffr i W~ x •
Wii aKSpcaiG-.'feT
——————— wmmm —■■■■mwi .in .■ ■■ w—w—
Josephus Daniels, new United States Ambassador to Mexico, is pictured
surrounded by members of his staff in the Embassy garden soon after
his arrival in Mexico City. Owing to a student demonstration that fol
lowed the announcement of Mr. Daniels’ appointment, extraordinary
precautions were taken for his safety. The American envoy was greeted
with cheers on his arrival, his critics apparently having undergone a
change of heart.
Dropping Gold Standard
Here Stuns Whole World
Roosevelt Move
Aimed at Europe
Washingtdi, April 20 (AP)
Speaker Rainey told newspaper
men today that President Roose
velt’s monetary moves were desig
ned toj meet at “concerted and
planned’* campaign by foreign na
tions to beat down the Unifjed
State's commercially.
chineseMeral"
FLEES TD BERLIN
Reported Killed In Man
churia Last July; Large
Party With Him
Berlin, April 2Q.—(AP). —General
May Chan-Chan, reputedly the Chin
ese national hero, whom Japanese
military leaders claimd v/as killed in
battle last July in Manchuria, ar
rived today from Omsk, Siberia, With
him were two other Chinese generals,
Su Ping-Wen and Li (apparently Li
Cbingling, former governor of Shili
province and a Manchurian comman
der several years ago) and about 60
other Chinese officers and soldiers,
women and children-
General Su was leader of the Chin
ese uprising against the Manchukuo
government last fall »in moijthwfest
Mixnchuria. He fled across the Si
berian border with remnants of his
larmy in early December, and the
(Soviet government refused Japanese
requests for his extradition.
The generals refused to talk, ex
cept to indicate an intention to re
main in Berlin for some time.
They were expected to go to Paris
next.
McAdoo Proposes
Eight Billions In
Refunding Bonds
Washington, April 20.— (AP) —
Senator McAdoo, Democrat, Cali
fornia, a former secretary of the
treasury, today introduced a bill
authorizing the issuance up to
eight billion dollars in United
States notes to to refund the gov
ernment’s shorWterm debts maur
ing in the next five years.
The notes, which would be legal
tender in payment of all public
end private debts, except import
duties an dinterest on the public
debt, would be issued at such
times in the five-year-period as
the short term obligations of the
government shall mature,
PUBLISHED EVERT AFTHRMOON
EXCEPT SUNDAY-.
Reaction in EngtaliitTl Puz
zlement and Extreme
Anxiety at Step By
United States
DOLLAR VALUE IN
EXCHANGES FALLS
Stocks Skyrocket In France
and American Travelers
Abroad Feel Effects; Brit
ain Rejects Theory Move
Is Bludgeon for Roosevelt
With MacDonald
,
(By the Associated Prses.)
The first official departure of the
United States from the gold standard
in more than 50 years was felt today
throughout the world.
London—Britain’s reaction was puz
zlement and extreme anxiety. The dol
lar value dropped heavily. At one
time it was $3.90 to t-he pound. The
British government rejected the
theory that the United States took the
■step to provide itself with a bludgeon
for the MacDonald-Roosevelt nego
tiations.
Paris—Stocks jumped upward and
the dollar closed on the Bourse at
22.46 francs th lowest in more than
seven years.
Berlin—A liign iinaniual authority
said that in the long run present
fluctuations could not touch the dol
lar value, for the United States is the
world’s creditor. The dollar dropped.
Rome—Large groups of American
tourists called at banks and travel
agencies seeking advice. The dollar
dropped.
Vienna —American travelers got ten
per cent less for their dollars than
they did a few weeks ago.
lakWiLL
rlv Rogers
Vy Novs:
Amarillo, Texas April 20—Just
t flew in] here, headed west. *We
had to come jn mighty high to
dodge all the farms and ranches
that were bfcowing around down ’
on the lower strata. It ain’t) any- '
thing to be hit iji the eye with a ’
cow that is Wowing with th© dust
from one ranch to another, but '
with all her dust and all her '
drought, she is a pretty country.
This fellow ClarcnC© Young the 1
head of commercial aviation, has '
done more fi»r it than anybody ’
since the Wright brothers. 1
dbn’t know anything about his
going to be removed for Demo
cratic purposes, but it will take
12 Democrats to take his place.
Yours, i
WILL. i
8 PAGES
TODAY
FIVE CENTS COPY
Could Issue New Currency,
Accept Silver For War
Debts or Cut Dollar
Gold Content
PRESIDENT SURE
OF HIS PURPOSES
Cofident of Ability To
Handle Situation for 'lm
provement of Economic
Structure; Useful Weapon
In Approaching Economic
Conferences Is Seen
Washington, April 20.—(AP)— A
three-point measure giving President
Roosevelt complete authority to start
the United States, now off the gold
standard on a policy of controlled in
flation, was whipped into shape to
day with the chief executive’s ap
proval.
The legislation was outlined in gen
eral form at a White House confer
ence last night, and Senator Thomas.
Democrat, Oklahoma, the sponsor,
probably will introduce it today as an
amendment to the administration
farm bill pending in the Senate.
Thus quick action was in prospect.
The broad grant of authority pro
posed in the Thomas bill would give
the President power to undertake in
flation by any one of these mehods:
lissuance of new currency; accep
tance of silver in payment of war
(Continued on Page Eight.)
ism
I •
House Refuses to Make Any
Loopholes, Regardless
Os The Items
Dally Dinptitrli Hnrean,
In the Sir Walter Hotel.
BY J. C. BABKERVIUL.
Raleigh, April 20—AH efforts to
exempt anything from the two per
cent general sales tax finally adopt
ed by the House failed, chiefly be
cause a majority knew that any ex
emptions at all would create a lope
hole through which hundreds of thou
sands, if not millions, of dollars of
revenue would be lost, thus making
it necessary to increase the tax to
three percent, according to numerous
members. It was also agred that any
exemptions would almost double the
work of the merchants and make it
much more difficult for them to keep
records of their sales.
The amendment by Representative
Davis, of Hyde countly,, to exempt
flour, meat, meal, molasses, fat back
and other basic foods from the two
pr cent sales tax almost carried how
(Continued on Page Eight.)
France May
Be Forced
From Gold
*
Financiers There
Fear Compulsory
Course In Path
America Has Taker
Paris, April 20.—(AP)—French f!
nanciers feared today that Franc
eventually would be obliged to so
low the United States off the gol
standard
She already is on a gold bullic
■basis, releasing only bonds.
Bankers say that further restri*
tions are likely because Great Britai
is draining French gold. The Ran
of England got most of the $117,000
000 in gohi France lost in. the pa
four months.
The Bank of France is extreme!
cautious. Bankers said, contrary t
custom, it issued no advice in th
present situation, but adopted a “wai
, and see” policy.