HENDERSON
GATEWAY TO
CENTRAL
CAROLINA
TWENTY-SECOND YEAR
GERMANY FLATLY REJECTS FOREIGN PROTESTS
MCDONALD’S FORCES
MEET TWO REVERSES
OVER REVENUE BILL
Tvvo Amendments To Tax
Insurance Companies
$350,000 Voted Down
On House Floor
maddog measure is
PASSED BY SENATE
Reversal to Anti-Sales Tax
ers Their Biggest Since
House Debate Began;
Chairman Cherry Fights
Back Vigorously in Resist
ing Changes
Raleieh. Match 21. — (AP)—The (Mc-
Donald- Lumpkin anti-sales tax forces
(lunched ■< major battle today when
the House turned down two amend
ment'! proposing to boost the finance
(cmmittee s recommendations on fran
chi'" taxes on insurance companies
« high powei lobbyists" took a
major spot in debate by the represen
tatu es
Bv *. vote of 66 to 44 the House re
fu-el a McDonald-sponsored amend
men* to boost the taxes to raise about
S3s‘ *OO annually, and then, by 63 to
46 rejected a compromise amendment
proposing to .boost them by a smaller
amount. Falkner, of Vance voted for
both measures.
The Senate passed and returned to
h*- House for concurrence in amend
m*m*s two Statewide bills. v One would
roi’iire the inoculation of every dog
r the State against rabies, and the
..?her would create a lien on recover
ies m civil suits growing out of in
imies in favor of doctors, hospitals
and dentists.
The House agreed before it recess
ed for lunch to limit debate on fran
chise taxes on domestic and foreign
cc> potations to 45 minutes per side,
.-e-ting a vote for late this,afternoon.
The Senate held a long meeting, but
did little.
The House action in refusing to
boost the insurance franchise taxes
wait the first real reversal given the
anti-sales tax forces in their fight to
raise corpoiation levies so that the
rhtee peicent retail levy may be eli
minated oi reduced.
Yesterday the anti-sales taxers led
ir raising taxes on power companies
ai t telephone companies to raise an
(Pontlniied on Page Four)
1 armer Runs Wild,
Kills a Priest, In
Catholic Mission
Yorkton, .Saskatchewan, March 21.
APi—A farmer went wild with a re
■ ei in the Roman Catholic Mission
heie today, killing one priest, serious
ly wounding another, and then, fac
ii.a capture by police, shot and wound
td himse'*
The dead priest was the Rev. Fath
c Del Foigeo, The Rev. Father Bala
wounded The farmer, who may
not ljvp i, steve Elash.
According to the police story, Elash
*■' *ered the Ruthenian Mission at 9:45
8 m . and asked for a priest. Father
P*-! Forgeo was instantly killed by a
shot in the back of the head
Father Bala was the next to be
- nr Police were called and as they
approached the mission Elash ran out
and fired at Chief of Police H. L.
and a constable.
rte farmer jumped behind a bush
and shot himself.
yiiLifsio®^
Taxers Bear Hard
on Power and Phone
“Big Corporations”
Dally Dlipntrh Boren®,
In the Sfr Walter Hotel.
By C. A. PAUL
Pileigh, March 21. —Power and tele
pnon*' companies had their taxes lift
as the McDonald-Lumpkin anti
des tax bloc continued to hold its
'* lß ngth in the lower house, which is
a -ing on the revenue bill as a com
mittee of the whole. Verbal exchanges
' f a high temperature characterized
' l,f - ‘torrny session. House Finance
’'Airman Gregg Cherry and Repre
; 'dative Lumpkin and McDonald
their opinions about with free
.(Cofitiaudd ou Pago Four)
Hmiirrsmt Batin Btanatdt
ONLY DAILY NEWSPAPER PUBLISHED IN THIS SECTION OF NORTH CAROLINA AND VIItGINIA. *
LEASED WIRE SERVICE OF
the associated press.
Cadet Deal Charged
^ —
Representative John Hoeppel
Representative John H. Hoeppel
of California, above, and his son,
Charles J. Hoeppel, were indicted
by a special District of Columbia
grand jury on a charge involving
the alleged sale of an appoint
ment to West Point military acad
emy for SI,OOO. Two indictment!
Involving the transactions tvera
reported. One accused Repre
sentative Hoeppel and his son of
conspiring to sell the appoint
ment to James W, Ives of Balti
more ; the other is based on th«
allegation that the appointment
was actually sold.
sMimT
Those Injured or Killed Will
Be Compensated For by
the State
Dnlly niipnlcli Barca*,
In the SR- Walter Hotel.
Raleigh, March 21.—Children riding
to or from school in State school
buses will be insured against injury
or death in bus accidents up to S6OO
per child if the House now passes the
bill by Senator W. P. Horton, of
Chatham, and Senator Dunn, of Ro
wan. which passed the Senate Wed
nesday. Indications are that the bill
will also pass the House without se
rious opposition.
The bill as passed by the Senate was
in reality a committee substitute for
the original bill introduced by Sena
tors Horton~"and Dunn, but only slight
ly different from the original bill. It
provides that if a child is killed in
a school bus accident, the parents
shall be paid S6OO by the State and
that if any child is injured in a bus
accident, that State will pay hospital
and medical bills up to S6OO. No in
surance fund is set up by the bill,
since this was not regarded as neces
sary due to the small number of chil
dren who have been injured or killed
in the past. On the record of past
(Confirmed on Page Two)
McDonald-Lumpkin Faction
Is Still In Saddle In House
Tax-Levying Spree Continues, With at Least $1,000,000
Added to Finance Committee’s Bill; Hope To Find
$3,000,000 More Before Bill Passes
Dally Dispatch Bare**,
In the Sir Walter Hotel.
BY J. C. BASKERVILL.
Raleigh, March 21.—The McDonld-
Lumpkin coalition is still in the sad
dle and riding high, wide and hand
some as the tax levying spree in the
House continues. For while it is not
yet apparent that there is any pos
sibility of removing the sales tax, it
is apparent that the group bent on
finding enough additional revenue to
make it possible to reduce the sales
tax rate from three per cent to two
HENDERSON, N. C. THURSDAY AFTERNOON, MARCH 21, 1935
Grading Os
Tobacco Is
Reported In
Official Approval Is
Given by Commit
tee; Reject Import
ant Amendments
Washington. March 21— (AP)—Com
pulsory inspection and gracing of to
bacco today had approval of a House
agricultural sub-committe», which has
agreed to report the Flannagan bill
with clarifying amendments to the
full group.
Rejected were proposals to make
grading effective, in even the Con
gress approves, only after a success
ful referendum among growers and
to) provide for the government to
stand the cost of the service’ instead
of buyers of tobacco.
Representative Fulmer, Democrat,
South Carolina, chairman of the sub
committee, said the measure, offered
by Representative Flannagan, Demo
crat, Virginia, would be reported to
the fbll committee as soon as it is
revised to include the clarifying
amen dments.
Chief among these is one; to allay
fears that the grading system would
empower the secretary of agriculture
to shut down markets.
The amendment to include the re
(Continued on Page Four)
To Smash
Wilmington
Gamblers
Wilmington, March 21 (AP) —The
New Hanover county grand’jury mov
ed swiftly this morning in an attempt
to . dry. up Wilmington and smash a
countywide gambling ring, as it in
dicted 12 persons on charges of oper
ating gambling housed and speakeas
ies.
Immediately after returning the in
dictments, the grand jury werit back
into session to consider taking action
to smash a "numbers” racket which
it is alleged has been thriving here
for a considerable time.
More than 200 witnesses, persons re
garded as “runners” for operators of
the lotteries, have been summoned for
investigation, it was learned.
Action of the grand jury in return
ing indictments against the alleged
speakeasy operators, comes after an
intensive campaign conducted here by
local. State and Federal officers,
which has been in progress for seve
ral weeks.
HOUMM
“Gelling Even” for Thumb
ing Nose at Governor in
1934 Price Fight
Dally Dispatch B area a,
In the Sir Walter Hotel.
BY <f, C. BASKERVILL.
Raleigh, March 21.—Last summer
the big gasoline and oil companies
thumbed their noses at North Caro
lina and its governor when he asked
them to take some steps to bring
(tVmtlniiMl Page Fnnrl
per cent is for the time being in con
trol of the House and making con
sistent headway. In this effort they,
of course, are having the support of
the “free spenders’’ who want not
only to keep the three per cent sales
tax but to add as much additional re
venue as possible in order to boost
the figures' still higher in the ap
propriations bill. Among these are the
school forces, who have not yet given
up their fight for an appropriation of
(Coiitiaucd Oa Pas® Four.}
Solicitor General
fp : ‘
J <1
* i % j
* I
•: >* - 1 %
Stanley Reed
President Roosevelt has appoint
ed Stanley Reed, general counsel
of the RFC, above, as solicitor
generai of the United States upon
the recommendation of Attorney
General Homer Cummings. Reed
succeeds J. Crawford Biggs of
North Carolina, who resigned,
Reed is from Kentucky.
7 Indicted
For Fraud
FromPWA
Washington. March 21. (AP)
Seven men, including two former
PWA engineers, were indicted today
for conspiracy to defraud the govern
ment in a $4,853,000 Texas Irrigation
project.
The indictment returned by special
District of Cplumfoia grand jury, re
sulted from a three months inquiry
by PWA investigators.
It charged that the seven conspir
ed to force the use of redwood lum
ber pipe in the project and to obtain
a $400,000 profit.
CERTAIN lIITO
Shorter Week Means Higher
Commodity Prices, Off
setting Gains
By CHARLES P, STEWART
Central Press Staff Writer
Washington, March 21.—As nearly
as I can ascertain by questioning a
large number of folk who ought to
know what they are talking about,
the maximum output of the average
factory is attained on approximate
basis of a working week consisting
of five days of eight hours each and
a sixth day of only four working
hours, with Sunday off, of course.
The forking day’s length, we are
aware, has been cut down, in the last
few . generations, to the 44-hour
weekly basis. Production in the mean
time, has not been decreased, but
increased.
The obvious and widely-advertised
conclusion is that a worker works at
so much higher a degree of efficiency
during a humanly reasonable num
ber of hours than during an exces
sive number as to more than offset
succeeding reductions (heretofore, un
til, perhaps, very recently) in their
number.
IS THERE LIMIT?
But there must be a limit beyond
which reduction in hours can’t go
without diminishing production.
Some few industries. I learn, from
queries addressed to competent au
thorities, have experimented with re
duction from a 44-hour weekly basis
to a basis of a week consisting of
five days of seven houhs each, four
hours on Saturday, and Sunday off,
as usual.
It is said that, without exception,
their respective productive capacities
have slumped sligl^ly.
I don’t underwrite this statement.
I refrain from naming even its
source, being by no means certain
that it can be accurately authenti
cated.
Closer calculations are involved
than I believe can be confidently re
lied on.
My point is merely that the possi
(Continued on Page Fnui)
WEATHER
FOR NORTH CAROLINA.
Generally fair tonight and Fri
day; cooler Friday in extreme
north portion,
CONGRESS IS READY
TO PASS BONUS AND
WORK-RELIEF BILLS
In Both Cases Final Adop
tion Turns Only On
Length of Debate on
Chamber Floors
INFLATIONARY GROUP
CLAIMS BONUS GAIN
Patman Currency Bloc Main
tains It Will Win; Relief
Bill Proponents Expect To
Defeat Efforts of Liberals
To Raise Amount To Ten
Billions
Washington. March 21. —(AP) —Two
giant money measures—s4,Bßo,ooo,ooo
for relief and $2,000,000,000 for the
bonus—today occupied a Congress
grown accustomed to talking in ten
digit figures.
In both cases, the j time of final
passage turned only on the length of
debate. The work-relief program, de
sired by President Roosevelt, already
much modified, still faced efforts to
boost the total figure to $9,880,000,000
and to add silver purchase provisions
Democratic leaders forecast the de
feat of both.
The House expected to get down to
some real trial ballots on the cash
bonus issue. Advocates of payment
through currency expansion claimed
enough votes to win, but followers of
the American Legion bill to leave the
method of payment undefined refused
to concede defeat
Down Pennsylvania Avenue admin
istration officials were studying a re
port from the London Embassy giv
ing British reaction to the European
tumult over Germany’s rearmament
plan.
James A. Emery, counsel for the
National Association of Manufactur
ers, told the Senate Labor Commit
tee the Wagner labor dispute bill was
invalid. ,
The TreSstiry Was represented by
Secretary Mongenthau as ready to
sell gold to any foreign government
Offering ah attractive proposition.
Lewis M. Howe, secretary to Presi
dent Roosevelt, grew gradually weak
er, but amazed friends ahd physicians
by his remarkable vitality in his ill
ness at. the: White House.
Employment Has
Sharp Increases
During February
Washington, March 21.—(AP)—
An increase of 200,000 workers In
industrial employment from Jan
uary to February, was reported
today by the Labor Department.
Coincidentally, it said weekly
wages went up by $10,800,000.
Factory employment, coal and
metal mining, quarrying, whole
sale trade, hotels, banks, insur
ance and laundries were the
branches of industry to show
gains. The department noted that
factory employment, with a 3.2
percent increase, “showed more
than seasonal expansion in Feb
ruary.”
IHMMS
\
Roosevelt’s Seizure of Ohio
Relief Situation Epoch
In America
By LESLIE EICHEL
New York, March 21.—States’ rights
are going out the \yindow—by public
demand.
The economic situation has gotten
far beyond any individual states. Be
sides, few states have developed local
men large enough to cope with the
economic situation even in their own
bailiwick.
When President Roosevelt instruct
ed Harry Hopkins, director of fed
eral relief, to take over the Ohio re
lief situation in the name of the fed
eral government, that marked a his
toric turning point in American his
tory.
Seldom has a president written
such an indictment against a leading
member of his own party as in the
letter to Hopkins denouncing Gover
nor Martin L. Davey of Ohio.
This new governor of Ohio, tvrho
has dismissed state employes right
and left because, although Demociats
on ]Ps®‘s> El Jr;}
PUBLISHED EVERT AFTBItNOOM
EXCEPT SUNDAY*
Horseman Gass&way
r~- j S
■ • ' ' ■' ’•
M \ % V :
."• > ' 4
Representative P. L. Gatsaway
Because he prefers riding horse*
back to an automobile with its
parking problem. Representative
P. L. Gassaway, picturesque Okla
homa rancher, rides to the capitol
in Washington. The colorful
Oklahoman has been in the spot
light recently because of his ver
bal attacks on Senator Long.
W ashington
Prepares To
Take Action
Roosevelt About
Through With
Study of Crisis Pre
cipitated by Berlin
Washington, March 21.—(AP)
President Roosevelt and bis advisors
on foreign affairs today studied a
report from the American Embassay
in London giving the British official
version of the situation created by
Germany’s re-armament plans.
The first report to be made to this
government on direct conversations
on the subject, the dispatch came
from Ray Atherton, charge d’affaires
at London who was called to the
British foreign office by the foreign
secretary, Sir John Simond, to receive
It.
There was no announcement as to
its specific contents, nor any infor
mation as to official reactions to it
here.
Meanwhile, the consultations with
State Department officials, which
have occupied a good portion of Pre
sident Roosevelt’s time in the last
three days, continued today. From
them the President hopes to decide on
the wisest course for the United
States to pursue in the European
crisis.
FEDERAL PROBE OF
OHIO RELIEF SNARL
Washington, March 21.—(AP)—
Attorney General (hunmings said
today the Department of Justice
is looking into the recent Ohi > re
lief shake-up to see if any Fed
eral laws iuwy beeA viohtt&d,
PAGES
TODAY
FIVE CENTS COPY
fSSg
Meanwhile, France Asks Ex
traordinary Session of
League of Nations
for Action 1
LEAGUE NOW FACING
ITS GREATEST TEST
Italy Refuses To Recognize
Hitler’s Re-Arming Plan\
and England Injects Naval
Issue into Simon Confer
ences Neyct Week With
Hitler In Berlin
Rome, March 21 (AP)—Freder
ico Baistrocohi, under secretary
of war, speaking in the presence
of Premier Mussolini before a
tense Chamber of Deputies, de
clared today that Italy would
keep its present military class un
der arms, that there would be no
reduction in the Italian conscrip
tion terms, and that Italy was
ready for a war of movements.”
(By the Associated Press.)
Adolf Hitler’s Reich, which Satur
day startled Europe with an announce
ment of a reawakened conscript asmy,
added fire to the turbulent situation
today by firmly declining to enter
tain French and Italian protests a.-
gainst her action.
While the French and Italian am
bassadors handed protests against
violation of the military sections of
the Versailles treaty to a frigidly for
mal German foreign minister at Bert
lin, the Paris government looked to
Geneva and told the League of Na
tions the Reich decision to re-arm
“threatened to disturb the peace.”
League observers expressed the op
inion the international body
faces the gravest crisis in its histbry, 1
Because France requested that ail vfy
traordinary session of the Council be.
held, quick telephone calls wekS
by the secr eta r y-g en e ral to k coni hit
members of the Council ok.! thi lot
ting of a date. *
British and continental capitate
Washington closely watched the ‘de-*
velopments, London taking the view
(Continued on Page Four)
Active Spindles Are Fewer
in February Than Fig
ures for Year Ago
Washington, March 21.—(AP)—The
cotton spinning industry was reported
today by the Census Bureau to have
operated during February at 100.2 per
cent of capacity on a single shift
basis, as compared with 102.6 percent
for January this year, and 101.5 pen*
cent for February last year.
Spinning spindles in place February
28 totalled 30,851,018, of which 24,-
925,168 were active at some time dun*
mg the month, compared with 30,825,-*
(Continued on Page EightT
Sandhills
Resort Has
New Death
Southern Pines, March 21. — (AP)— «
Mrs. Charlotte M. Quilter, 39, of New
burgh, N. Y., was kifted near here
early today in what was believed a
fall from an automobile said to havq
been driven by L. M. Mitchell Mo*
Donald, of Washington, who wan
placed in jail pending An inquest.
Sheriff Charles J. McDonald, ot
Moore county, and Chief of Police J.
A. Gargis, of Southern Pines, said
Mrs. Adeline Grinder, of Greenville,
N. J.; Mrs. Quilter’s maid, told them
McDonald and Mrs. Quilter had been
quarreling some time before the ac
cident, but that the party was sing
ing at the time.
Mrs. Grinder, who had been em
ployed by Mrs. Quilter for seven
years, said she was riding- In the back
seat as they returned from a road
house two miles south of here at cot
1 a. m. She said the car cr oc "eW
open and Mrs. Sullter fell i, : "far
ing injuries whicn provet .. a
hospital -ioL-o tittx . |