HENDERSON, GATEWAY TO CENTRAL CAROLINA. twentieth year ROOSEVELT AND HITLER MAY DETERMINE ARMS PACT Sales, Income Or Gasoline Tax For New Work Talked Higher Income Tax Levies Proposed by Budget Di rector Douglas To Raise Money WOULD ALSO~BOOST FEDERAL GAS LEVY Might Be Railed to 1 3-4 Cents a Gallon; Several Suggestions Made House Ways and Means Commit tee, Which Starts Hearings On New Measure Wash ng’.on. May 18 —(AP) —A sales tax and increase In the gaseoline tax and increases In the income- tax were ' suggested as possible ways of raising the needed funds as the House Way3 and Means Committee opened hear ings today on the adminigtration’3 g an" public works-industrial control i hill. The suggestions came from Lewis j W. Douglas, director of the budget.} who, while leaving the decision to the I committee, submitted four alternate I plans. One was a general manufacturers’ rales ‘ax at a l 1-5 percent rate, with no exemptions, which he estimated would hr ng in $228,000,000 annually, while a rate of 1 1-8 percent would re turn $214,000,000. It is estimated $222,- 000 hope that two other Ne- j gi” os might be arrested and tried for the crime. McNair contends that he! was with the two and one of them j shot Mrs. McCown. Clay Fugleman, convicted in Rock- I ingham county in September, 1932 of murder was grantd a further reprieve cf 30 days by the governor today. Buck Boys Indicted In Kidnaping Held In Massachu setts for Abduction and Extortion ini McMath Affair Barnstable. Mass. May 18 (AP)— Kenneth and Cqril Buck, Harwich- brothers, were indicted for kid/- raping with intent to xetort today by a special session of the Barnstable invest U at'.ug the ransom abduction c °unty giaud jury, which has been ”f ten-year-old Margaret McMath. Kenneth was indficted on two counts o,, ‘y nne of which was read immedi ately. the first count Kenneth, brought * r, ’ in the county jail replied: I have nothing to say." When Superior Court Judge Ed- F. Hanlfy learned that Buck’s f »unsel was not present he deferred fading () f the second count until he fo,J ld be found. kidnaping of Margaret McMath May 2 became almost overnight er ojf national concern. She returned to her parents three ' s later afte rthey had paid a WiO.COO ransom,. \ ffletthersmt tlaflxt Dtspatrlt OF the ASSOCIATED press. Damper on Beer Ruling that both the Colorado and Federal laws regulating the sale of 3.2 per cent beer are “clearly in valid” because they seek to “thwart and evade the 18th Amendment,” District* Judg6 Claude Q. Coffin (above), of Denver, Colo., is be lieved to have provided the Drys with an excuse to bring the matter before the U. S. Supreme Court. Applicants for licenses to sell beer in Greeley, Colo., were refused per. mission to sell the brew. ROOSEVELT TO REDUCE COnON Senator Smith Wants Presi dent To Force Acreage Cuts This Year SAYS THERE IS TIME Would Have President Invoke Powers In New Farm Bill To Lease Acreages T|r» Remove Their Productivity Washington; May 18. —(AP) —Presi- dent Roosevelt was urged today by Chairman .Smith, of the Senate Agri culture Committee, to employ the new ’farm bill to obtain a reduction of cotton acreage by 5,000,000 or 6,000,- 000 acres. Smith said lie believed there was still time to force a cotton reduction acreage this season. He would use the farm legislation for leasing of the surplus acreage and the substitution of cai.'ii lor cotton on it. The senator said he was confident that if 6,000,000 acres were taken out of production it would result in a fair price for the commodity. He was asked by the President to confer with George Peek, the admin istrator of the farm bill, and Henry Morgenthau, Jr., governor of tne new farm credit administration. Representatives of wheat coopera tive marketing agencies put before (Secretary Wallace a plan for applica tion of the farm bill to wheat and urged that a processing tax be put into effect by next August 1. JUDGE BINGHAM AT HIS LONDON POST London, May 18. —(AP)—Robert W. Bingham, the new United States am bassador, arrived in London late this afternoon and dined at the Embassy at Princess Gate. Tomorrow he will make his first official visit to 10 Downing Street, call ng on Sir John Simond, the for eign secretary. Hearing May 26 On Henderson to Durham Bus Line Ralegh, May 18—(AP)— The State Corporation Commission will hold a hearing May 26 on the application of L. M. Bernard, of . Hendersonville, for a franchise to operate a motor bus line between Durham and Henderson. Five other petitioners for a /ranch’se for the sam eroute were heard May 9. Thy were East Coast Stages Carolina. Coach Company Raleigh Charlotte Bus Line. Greensbcro-FayeDeville Line, and G. C. McManus and W. E. Smith of Albemarle, u ~ . . ONLY DAILY NEWSPAPER PUBLISHED IN THIS SECTION OF NORTH CAROLINA AND VCmiNLA. * Elimination of Leßoy Mar tin as Secretary Is One of Os Its Chief Ambitions TRYING TO PREVENT OLD APPOINTMENTS After Scalp of Members of Present Commission Who Are Not School Men; Would Direct Plan of Ap portionment of Appropria. tion on Money Dolly Disputes Rnrpnn, In the Sir Walter Hotel. MV J (, m, l.'.tf i|| | Raleigh, May 18.—Within the ap pointment of the members of the new State School Commission already an nounced as the first task on Gover nor J. C. B. Ehringhaus’ slate of forthcoming appointments, the or ganized school forces of the State are bringing all the pressure possible to bear on the governor to appoint enough school men on the commis sion ot gain control of it, it is be coming apparent here. They are also doing everything possible to prevent th® appointment of Leßoy Martin, secretary of the old board of equaliz ation, as executive secretary of the (Continued on Page Three.) ELIZABETH CITY MAN ACCUSED OF MURDER Elizabeth City, May 18. —(AP)—Al- fred Hew.tt, 21, was bound over to superior court on a charge of first degree murder of H. D. Edwards, 27-year-old lineman, at a preliminary hearing here today. He was ordered held without bail. Edwards died Monday night from a bullet wound in the abdomen, in flicted May 10. MITCHELL AND WIFE HAD FINANCE DEALS New York, May 18 (AP) —Defense counsel produced evidence today to rjxow that financial dealings were com man over a period of years between Charles E. Mitchell former chairm/an of the National City Bank, who is charged with tax evasion, and his wife. Edward F. Bartlett, who handled Mrs. Mitchell’s affairs for many years, identified paper s showing fre quent instances of dealings between the Mitchells, which were confirmed by exchange of letters. Such letters were written by Mit chell and his wife to record sale of stock by Mitchell and Mrs. Mitchell in 1929 A Tht sale was given by Mit chell as proof that 'he had no net income for that year, and so had' to pay no tax. The. government oharges the sale was only a pretenss. Hitler And DaladierTo Meet Soon To Face Each Other at Geneva; France Skeptical of Hitler’s Sincerity Paris, May 18 (AP) —Premier Dala dior And Chancellor Hitler of Ger many may meet face to face at Ge neva to talk tlhieir troubles friends of the premier indicated today. Officially the plan was without con firmation, but close associates of the premier said that it was being dis cussed, and that they were urging it as the best means of clearing the at mosphere. iM. Daladier, his friends said, is fully aware that France was put somewhat on the defensive by Chan cellor Hitlers reply accepting Presfc ident Roosevelt’s disarmament pro posals . / French skepticism of the chancel lor’s good faith has been reflected in all ranks of officialism, press and public. “Yesterday." one commentator said “Germany was regarded* as a peril. Dare any one suppose today that it is France and her allies who ar troub k Ung j>eace?” , HENDERSON, N. C., THURSDAY AFTERNOON, MAY 18, 1938 Hitlef Answers Critics on Eve of Conference BK. JgjSHjk k? > , Claimed war veteran* from all over the world parading, at Geneva, for world peace and disarmament. Chancellor Adolf Hitler’s speech before /the 1 * specially convened reichstag is looked upon as a pro test against the failure of other nations to disarm. It is his belief that the World Economic confer ence, to be held in London, in June, can be successful only if the present disarmament conference, GERMANY RALLIES 10 HITLER STAND Universal Peace and Dis armament and Economic Uplift Is Goal ARMS EQUALITY ASKED Seldom in Reichstag History Has Any Chancellor Won So Much Over whelming Support as HittCr Has Now Berlin, May 18 —(AP) —The whole German nation rallied today behind the governmnt in solemnly assuring the world that her hallowed ideals are universal peace, universal disarma mnt and properly working economic 1 machinery. Such aims were included yestrday by Chancellor Hitler in his foreign policy pronouncement before the Reichstag, in which he reiterated a demand for arms equality, accepted world peace proposals of America, and pledged cooperation in guarantees of international tranquality and security Seldom in the history of the Reich stag did a chancellor’s declaration win such unanimously overwhelming (Continued on Page Three.) Organization of “Sons of Legion” Will Start Soon Salisbury, May 18 (AP) —Brice T. Beard, State American Legion com mander. and chairman of the Nat'on al Legion committee changed with advancing plan s for etablishmeni of an organization of Sons of the Ame rican Legion, today said formation of the group would begin throughout the nation in a few weeks. Th organization would be composed of male descendants of men and wo men who served honorarily in the army, navy and Marine Corps of the United States betwee n April 6v and November 11, 1918. Beard: said that North Carolina would “likely” be th fc first State in the nation to undertake the new work, as the Legion calendar of activitie for the year “definitely commits the State department to work along this Ua*-" _J t :_j „ j_; . in Geneva, actually achieves re sults. Hitler’s speech is inter preted as an answer to Lord Hail sham, British war minister, and Joseph Paul-Boncour/.' French foreign * minister, who have warned Germany that failure of the Geneva disarmament confer ence will mean continuation of Anglo-American Alliance Against Japan Predicted Moscow, May 18 (AP)—The pos sibility of » temporary American alliance against Japa nese expansion was raised today when commD.it on President Roosevelt’s message by “Four In dustrialization,’ organ pf the com missariat for heavy industry. “After the Washington rehearsal for the world economic confer ence,” the publication said “the United States now appears in the role of world arbiter, but several governments have refused to' ac cept that arbitration.” MEASURE AIMED AT PURCHASING POWER Secretary Perkins Explains Scope of Industrial Reg. ulation Bill Washington May 18 (AP) —As de scribed by Secretary Frances Perk ins, th ehuge public works industrial regulation bill laid before Congress by President Roosevelt, is designed to “bring purchasing powe into step with our mass production.” This would be accomplished on one side by putting money into the hands cf the unemployed through the $3,- 300.000,000 construction program, and on the other, by regulating industry so that a stabilized production would be kept in tune with the movement upward from the depression. " The secretary pointed out that the first weekly payrolls paid to work ers out of jobs meant alt least a pair of shoes and three shirts sold, and that industry would immediately feel the effect. WEATHER FOR NORTH CAROLINA. Fair tonight and Friday. _ _ PUBLISHED EVERY AFTERNOON EXCEPT SUNDAY. the military restrictions on Ger many in the Treaty of Versailles. Norman H. Davis, American am bassador-at-large to Europe, is hoping to prevent a break be tween France,'England and Ger many which would threaten the peace of the London economic conference. Japan’s stand, the paper con tinued, would be affected by the Roosevelt non-aggression pro posals. and Japan also is opposed to the MacDonald disarmament plan, which is supported by the American President. “Thus,” the editorial asserted, “Japr*i faces the necessity of de claring itself not only against Roosevelt but against MacDonald which may foreshadow a tempoiV ary Anglo - American alliance against Japan’s desijre to increase its expansion.” Roosevelt’s New Deal May Bring New Textile Wor ries In South Greenville, £>. C., May 18—(AP)— The Greenville Piedmont says an inouncement from Washington that President Roosevelt’s national indus try recovery act provides among other things the right for employees Os Southern cotton mills to organize without interference “has created widespread interest in this section.” “Mill executives.” the paper says, “pursuing a policy of silence which has been more or less general for several decades, showed keen interest when asked if they had any comment to make, but none agreed to say any thing for publication.” S. C. SOLONS LOWER COSTS BY $6,000,000 Columbia, S. C.. May 18 (AP)— The south Carolina legislature early today closed its longest ses sion s>ice reconstruction days, after .slashing approximately $6,-. 000,009 from appropriations, as compared with last year. 8 PAGES , TODAY FIVE CENTS COPY EVENTS MANEUVER i THE TWO LEADERS INTO TOP PLACES Their Influence Is Powerful Factor in Directing Course of Coming Conference ~ j 1 GENEVA AWAITING THEIR INITIATIVE American Viewpoint On In ternational Arms Control, World Pact on Non-Resort to Force and Arms Embar goes Is Speculated Upon by Conferees Geneva, May 18.—(AP)—The rapid sequence of events in the last few days has largely placed the destiny of the disarmament conference in the hands of President Roosevelt and Chancellor Hitlr, in the view of many conference delegates. The influence of these two men, it was said today, constitutes a power ful factor in directing the course of the (which awaits oon-. crete initiative on their part. The Roosevelt message to the world and the Hitler R.eichstag address gen erally were regarded as clearing the air and producing a new and more hopeful atmosphere. Delegates indicated eagerness to know how far America was disposed to go in what Geneva regards as com pleting the machinery of peace. Par i Continued o» Page Three.) ROOSEVELT CHOOSES SOUTH CAROLINIANS . Washington, May 18 (AP)~-tPresn dent RoosetvleO.'t jt(oday mominalted. Charles E. Jackson, of South Caro lina, as deputy comlmissioner of the bureau of Fisheries. • ; The President sent to the Senate the name of Colonel Edward Croft of Greenville, S. C., for appointment a s chief of infantry with the ran of majo Tgeneral. Japan Will Spare , Peiping, Tientsin, Envoy Here Says Washington, May 18. —(AP) — Th? Japanese ambassador, Katsuji Dc bouchi, visited the State Department today and told reporters who inqui'-. ed, that Japan has no present inten tion of taking the Chinese cities o‘ Peiping and Tientsin. The envoy, who called on Secretaiy Hull, indicated that only routine ma ters had been discussed. Debuchi told reporters that Japans, would be willing to undertake stabili zation of the yen at the London ex change conference. „ On Sino-Japanese ho3ti’ities he sa cl it was his country’s intention to with draw its troops out of North China proper as soon as an assurance was given that their forces would not ba harried by Chinese raids frorh south of the Great Wall. Japs Near Now Gates Os Peiping City of Miyun, 35 Miles Distant Taken After Bitter All- Night Battle Tokyo, May 18 (AP) —The city of Miyun, 35 miles north of Peiping, wihich has been the objective of a Ja panese drive for the last week wan occupied this afternoon by th e at tacking army, the Rengo (Japanese) News Agency reported. The occupation was effected ,the Rengo dispatch said, by the eighth division. The city wa s after Nanshengcbuang, (ton miles to the northeast, had fallen into the 16th in« fantry brigade. A tattle wilvch lasted all last nigh and today preceded thff triumph a entry tonight of the two Nisha bri gades within the walls of Miyun. The Japanese had routed stubborn 1 resisting Chinese from a battlefie! reported littered with bodies of th I defenders. T , , i|f