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<i i, ° r 4. wa B res »” the (organize Won
oaticn'ii h* , fortni^htl y summary of
cornor t bUS neBS affairs - “Firms and
ever thJ°i? 8 l ° ng ln the red are either
‘ I ne or getting closer to the
Hvnirrumt Daiht Utauatrfi
Promotion Hocked
mgr
■ Ji (tel
mm HHf
Confirmation of nominations of
Lieut. Col. Jacob E. Fickel (top)
and Lieut. CoL James E. Chaney
(below) to be assistant chiefs of
Army Air Corps, with rank of
brigadier-general, is being blocked
mysteriously in Congress, and in
vestigation may be made, Washing
tan reports declare.
(Central Press i
TSSd
Administration’s Idea Is To
Stimulate Capital Goods
Industry
DETAILS NOT STATED
• Presumably Government Will Supply
Money; Legislation Is To Be
Sought In About Ten
Days Under Plan
Washington, April 7. —(AP) — The
administration is preparing legis!a>-
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. , . _