HENDERSON gateway TO CENTRAL CAROLINA TWENTY-FIRST YEAR federal spending PASSES 5 BILLIONS THIS FISCAL YEAR Outlays So Far Are Over Billion . Dollars Above Corresponding Period Last Year DEFICIT NOW OVER 2 1.2 BILLION TOTAL Public Debt Exceeds 26 Bil lions, Compared to 21 1-2 Billions Year Ago; Govern ment Income for Year Neary Billion Over Last Year Washington. April 7. —(AP) — Fed eral spending in the fiscal year which ends June 30 today passed five billion dollars. On April 5. the latest date avail able. the government had spent $5,- 005,462,333. as cor..pared with $3,833,- 252.776 last year. The deficit that day stood at $2.- 655,107.341. as compared with $2,287,* 045.312 a year ago. Os the five billion dollar outlay, $2,- niS.OSO,ouO went to routine expendi tmes and $2.986.512.000 to emergency recovery costs. The public debt today was listed by the Treasury at $26,179,042,000. &•? compared with $21,457,652,000 a year ago. The five billions spent in a little ever nine months of the 1934 fiscal year was nearly the total of the en tire spending in the 1932 and 1933 fiscal years. In 1932 government out lays were $5,154,000,000 and the next year $5,143 000,000. * Government income for the fiscal year to date was $2,350,354,.992, as c< mnared with last year. '• LONG’S ASSERTIONS DENIED AT HEARING Washington, April 7. (AP) — Ed ward Rightor. counsel for D. D. Moore nominee for collector of internal re venue at New Orleans, today denied assertions by Senator uey Long, of Louisiana, that Colonel John P. Sul livan. Now Orleans lawyer-sportsman, controlled Moore's office and said Moores name was suggested by him self to President Roosevelt. He testi fied at a Senate hearing. DISCHARGE OF GUN KILLS DURHAM MAN Durham, April 7. —(AP)—Fel ton Tilley, 22, Durham county fill ing station operator, accidentally fehot himself to death near here last night when he tripped ever a vine, discharging a shot gun he ,v as carrying. The load was fired into his abdo men. Tilley’s body was found thl9 morning by his brother. Bonds For Locals To Be Exempt Washington, April 7 (AP)—The House Interstate Commerce subcom mittee voted today to exempt State and municipal bonds from provisions of the stock market regulation bill. Chairman Rayburn, Democrat, Tex as explained that such securities were not considered highly speculative, un '*■*B states and municipalities voted too many of them. The sub-group, re-drafting the bill, -Oso agreed in principle with Section which outlines the purpose and in hnt of the legislation. Recovery Threatened By Laws, U. S* Chamber Says " ishington, April 7.—(AP)— The f ''amber of Commerce of the United 1,1 s said today that “on every hajnd furth Pear * ncoi > r aging signs of th „ "!h bU3in * Bs recovery,” but that of t , a vance ” threatened by some , ' H pending legislative proposals, at Zl* men ' are bein * P ut to w ork fc ai- tion for a national insurance plan to aid in financing a home moderniza tion and building program in an ef fort to stimulate the capital goods in dustry. Presumably tne fund would be pro vided by the government, although definite details have not yet been de cided upon. The plan was made known to re porters by Frank C. Walker, execu tive director of the National Emerg gency Council. It is another develop ment of the housing program under way for some time. Legislation is to be sought in about ten days. The amount of the fund to be asked was not known. The actual building will be done by private concerns. One of the main pur poses of the whole program is to sti mulate private financing. N. C. GETS MILLION FOR APRIL RELIEF Washington, April 7. (AP) — The Federal Belief Administrap tion today granted North Carolina g 1,100,000 for relief work in April. black. Some of the recovery legisla tion enacted in the last year has had a wWoJeeome affect An flaying t basis for business recocvery and m strengthening the nation s banking St “B C ut l Attention is now centering on the need of business for opportunity to continue its forward movement un hampered by new and unnecessary re strictions. Sudden legislation, some of R on toe statute books and some now pending in Congress, threatens th advance." ONLY DAILY LEASED WIRE SERVICE fur the associated PRESS NEWSPAPER PUBLISHED IN THIS SECTION OF NORTH CAROLINA AND VIRGINIA. HENDERSON, N. C. SATURDAY AFTERNOON, APRIL 7, 1934 STATE SALES TAX BIMYAnm J. Paul Leonard Declares It Is Contrary to the Essen tials of Fair Taxation BRUMMITT ATTACKS NEW CONSTITUTION Says (jit Concentrates Too Much Authority At Raleigh and Leaves Too Little In Counties amd Towns; As sails Proposed Veto Power of Governor Oxford, April 7. —(AP) —The sales tax was denounced as “contrary to the essential elements of fair taxation — ability to pay” in an address by J. Paul Leonard, of Statesville, to a mass meeting here today. The Granville County Tax Relief Association sponsored the meeting and address by Leonard, who is exe cutive secretary of the North Caro lina Fair Tax Association. ‘‘There is much more that can be said against the sales tax,” said Leon ard," bu the strongest indictment that can be justly brought is that it is contrary to the essential elements of fair taxation —ability to pay—is a tax on consumption and drives business from the State. A few months experi ence has proven this to be a true in dictment.” "It is amazing that in the face of the sact —recognized and admitted— that leaders of the sales tax advo cates have the nerve to continue to /hold it up as the State’s savior, and seem determined to perpetuate it.” Attorney General Dennis G. Brum mitt, speaking in his home county, again attacked the proposed new con stitution. The attorney general personally as sailed the provision which he said would' allow' the legislature to author ize the governor to appoint every county, town and municipal officer in the State and would create an ap pointed State Board of Education which would select every school teacher in the State. He termed the proposed veto power for the governor “the most dangerous and obnoxious form” of such authority, and assert ed the new constitution would remove restrictions on the Genera* Assembly which would allow an increase of “op portunity for domination and absorp tion of legislative powers by the exe cutive.” Mr. Brummitt also assailed the document for not specifying that the State auditor or comptroller should have execlusive power to audit State finances and should be responsible only to the people, who elect him. INSULL TO START HOI NEXT WEEK U. S. Vice Consul At Istan but To Bring Utility Czar From Turkey Washington, April 7.(AP) —'Samuel Insult, Chicago fugitive, is to start hack to the United States from Tur key next week to face trial on char ges resulting from the collapse of his giant utilities organization. The State Department said today Burton Y. Berry, American vice con sul at Istanbul, had been designated by President Roosevelt to take cus tody of Insull, who has fled from the grips of United States officers for more than a year. A warrant empowering Berry to serve in that capacity has been signed by President Roosevelt and cabled to Turkish authorities. Exactiy when the trip will start was not but it was expected here to be early in the week. Pinchot’s | Wife Hits NRAHead Washington, April 7 (AP) —“In a gen eral 'assault on NRA administration in Pennsylvania, Mrs. Gifford Pinchot today told the Senate Labbor com mittee that Huggh S. Johnson had thrown down his arm,s in the interest of big business. A militant supporter of labor, the red-haired wife of the governor of Pennsylvania urged passage of the Wagner labor bill to outlaw employ er-dominated company unions. She had kind words for the pur pose of the NRA in general, but she denounced the way it was administer ed in her state. t HUEY LONG FIGHTS APPOINTMENT 'S • { John ) . Sullivan Daniel D. Moore Fisticuffs and heated arguments have enlivened hearings of the senate finance committee, in Washington, on the nomination of Daniel D. Moore as internal rev enue collector for the New Or leans district. When Senator Huey Long accused John P. Sulli van, New Orleans politician and race track magnate, of “making Legislative Candidates Favoi ring More Money For Schools And License Cut - . •»_ , .a---. v. That’s What It Takes To Get Votes This Year, and Can didates Favoring Such Program, Without Any Idea Whatever Where the Money Will Come From Dally Dispatch Daren ti In the Sir Walter Hotel, or J. C BABKERVILL. Raleigh, April 7. Reports being received here from various sections of the State indicate that a majority of the candidates for the next General Assembly have at least two identical planks in their platform, as follow 1. They are coming out vigorously for more money for schools and high er pay for school teachers. 2. They are advocating a reduction in the automobile license tax. .Sortie of the candidates are also coming out openly against the gen eral retail sales tax, ibut many are frankly trying to avoid any statement with regard to the sales tax. One candidate for the 1935 General Assembly from a Piedmont county, who was here today, frankly explain ed why he was running on a platform in which the main planks are more money for schools and lower auto mobile license taxes, as follows: “Practically every voter either has children in the public schools or owns an automobile, or both, so that any thing -that has to do with giving the voters better schools and cheaper au tomobile license taxes is sure to ap peal to them,” this candidate said. “This lis especially (true since the /State took over operation of the schools and relieved the local prop erty owners of all taxes for school operation. Before this was done, and while part of the school maitnenance cost was paid by the local taxpayers, they were not in favor of more money for schools and higher salaries for school teachers, since they had to pay part of it out of their own pockets. “But now that the schools are sup ported entirely from State funds, raised from indirect taxation lather than< from taxes on property, the sky is the limit for school expenditures, as far as the average voter is con cerned, since few of them realize that they have to pay the taxes indirectly in the end. Another factor is that few candidates can buck the teachers and their powerful political and pro paganda organization and stand any chance to be elected. They have al ready got most of the voters con vinced that they were handed a raw Government Buys Under NRA Alone Wnehington, April 7.—(AP)— Validity of an executive order re quiring certificates of NRA code compliance from bidders’for gov ernment business was upheld today by J. R. McCarl, the comptroller general. The decision will compel all bid ders for government contracts to make such certificates, which were held not necessary in the Ford case.. suckers out of people all over the United States”, Sullivan offered to fight. Senator Long has sought to prove that Sullivan is the po« litical sponsor of Moore and that his appointment would lay the in ternal revenue office open to thf influence of gamblers. Photc shows Sullivan, left, and Moore leaving the hearing. deal by the 1933 General Assembly and that they must have more money and higher salaries. ‘‘Those that are not interested in the schools are owners of automo biles and anxious to have the cost of the license taxes reduced. So if the candidate runs with these two things as his principal planks, be can be pretty sure of being nominated and elected.” When asked how he thought the next General Assembly would find enough new revenue to increase teacherss’ salaries and reduce the li cense taxes on automobiles', this can didate, who was a member of the v CCortinned on Page Five.) COOLEY GIVEN'DOS Raleigh Opinion Is That He Will Beat Even George Pou In Race Dally Di '.patch Bnrenv, In the Sir Walter Hotel. BY J. C. BASKEUVILL. . Raleigh, April 7 —Although George Ross Pou, son of the late Congress man Edward W. Pou, of Smithfield, has not yet announced as a candidate to succeed his father in Congress, where he served for more than 33 years, it is still being taken for grant ed here that he will announce soon. Rut a larger number of those in po litical circles here are predicting that Harold Cooley, of Nash county, who has announced that he will be a can didate, will win the nomination rath er than Pou, even if Pou runs. Two other candidates, Palmer Bailey, of Raleigh, former secretary to Senator Josiah W. Bailey, but no relation to him, and J. P. Zollicoffer, well known attorney of Henderson, Vance county, are already in the race. But the con census of opinion here is that the main contest is going to be between Cooley and Pou, with the betting odds on Cooley at the present time. Those who believe Cooley has an advantage over Pou, point out that both Lee L. Gravely, of Rocky Mount and O. B. Moss, of Spring Hope, both of Nash county, and both spoken of as possible candidates for Congress, have announced that they will not get into the race but will back Cooley. They also point out that J. M. Brough ton, of Raleigh, who for more than a year has been regarded as getting his ducks in a row to run for Congress in the fourth district whenever Con gressman Pou should retire, has also decided not to run and support Cool (Contlnued on Page Five.) PUBLISHED EVERY AFTERNOON EXCEPT SUNDAY. Senate Cooks Up New Headaches To Worry Tax-Payers Gets Treasury Post IHf iBH Hf: M V ■ \ Jm jiil» Sr dp jSte. IHL J||||l|| Thomas Jefferson Coolidge Thomas Jefferson Coolidge of Boston, Mass., has been appointed special assistant to secretary of the treasury, Henry Morgenthau. Thomas Hewes, former assistant secretary 'of the treasxjry, has been transferred to the state de partment. SSlijs ’ j ' ' . Almost Every Interest Is Al. ready Grabbing for $6,- 000,000 Accumu lating in Fund LICENSE AND GAS CUTS ARE SOUGHT School Folks Want To Get Highway Commission Would Use the Extra Money To Build Roads and For Maintenance Daily Dispatch Boreas, In the Sir Walter Hotel. BY J. C. BASKEUVILL. Raleigh, April 7—One of the biggest fights in the 1935 General Assembly, if not the bitterest of all, is expected to. center around what disposition will be made of the surplus in the highway fund resulting from collec tions from the gasoline and license taxes, according to rumblings heard here, and whether or not a portion of the highway fund shall be divert ed each year to other uses. For with the gasoline tax and the automobile license tax the only taxes now levied by the State that are bringing in as much or more than the amounts esti mated. indications are that there will be a surplus of not less than $6,000,- 000 in the highway fund by the time the next General Assembly meets. The surplus in the highway fund at - (Continued on Page Three.i WEATHER FOR NORT CAROLINA. Fair tonight and Sunday; some what colder tonight. Zollicoffer Pays Fee In Fight For Congress Seat Raleigh, April 7 (AP)—lnterest in the fourth congressional district race for the seat vacated Sunday by the death of Representative Edward W. Pou was heightened today when Jere P. Zollicoffer, of Henderson, paid his filing fee to enter jtbe'June primary, and Judge Walter D. Siler, of Siler City, wrote the State Board of Elec tions for filing* blanks. George Ross Pou, so nos the man who represented the district for 33 years and became dqan of the lower house of Congress, Is expected to make formal announcements Monday or Tuesday that he will seek to suc ceed his father. Harold D. Cooley, of 8 PAGES TODAY FIVE CENTS COPY Tax Bill for $258,000,000 Sent Up By House May *■ Be Boosted Up To $580,000,000 COUZENS, LAFOLLETTE OFFER AMENDMENTS Former Would Add $55,- 000,000 and Latter $95,- 000,000 to Levies Propos ed; Couzens Plan Not Likely To Be Accepted by House, Byrns Declares. Washington, April 7t—(AP)— The Senate brewed new headaches for the tax-payers today. The tax bill, which was $258,000,000 measure as it came from the House, already is up to a proposed $330,000,- 000 in the Senate, with strong likeli hood it will reach $480,000,000 before it is passed. An amendment .by Senator Couzens, Republican, Michigan, that would add an estimated $55,000,000, and one by Senator LaFollette, Republican, Wis consin, that would be good for per haps $95,000,000 more, were given the approval today by Senator Harrison, Democrat, Mississippi, who is in charge of the legislation. Monday may see a vote. Both House and Senate were in recess today. The bill as received from the House was 'boosted to $330,000,000 in the .Senate Finance Committee before reaching the Senate floor. Senator Couzens’ proposal is for a ten percent super levy to be effec tive for one year only. The ten per cent would be figured on the tax it- r self, a person whose tax came to SIOO, for example, adding ten per cent to that any paying sllO. The LaFollette amendment' would /boost the super-estates, or inherit ance, levies beyond the finance com mittee rates and cut down existing exemptions. Both proposals are certain of Sen ate approval. COUZENS PROPOSAL WILL BE REJECTED BY HOUSE Washington, April 7. —(AP) —Rep- resentative Byrns, the Democratic leader, told reporters today the House would have to be thoroughly convinc ed there was need for additional re venue before it would accept the Couzens proposal for an additional ten percent levy on income taxes next year. Consumers Groups To Be Formed Will Aid in Adjust ment of Consumers’ Complaints About Prices Washington, April 7 (AP) —One hundred and twelve consumers’ coun cils are to be formed throughout the nation to aid in adjustment of local consumers’ price complaints. Frank C. Walker, director of the National Emergency Council, making the announcement today, said the plan would be on an experimental basis until it is determined how it will work. . 1 * ! Walker said the councils will be un (Continual nc Page Five.) Nashville, has announced he would en ter the race, and Palmer E. Bailey, of Raleigh, has paid his SIOO fee to on test for the seat. Congressman J. Bayard Clark, of Fayetteville, formally entered the seventh district race today, L. Clay ton Grant, of Wilmington, having fil ed to oppose him. Congressman R. L. Doughton, of Laurel Springs, filed for re*omina tion in the ninth distreit, and R. ;R. Millikin, of Asheville, filed in the eleventh to oppose Representative Zeb Weaver. Judge R.; jHrtnt formally entered the third district superior 1 court race. , . _