■f
HENDERSON
GATEWAY TO
CENTRAL
CAROLINA I
TWENTY-SECOND YEAR
HEW TAX BILL WILL RAISE $200,000000
FLINAGAN’S BILL
BOTH ATTACKED AND
DEFENDED IN HOUSE
Farmers Are Subjected to
“Wholesale Robbery” and
‘ Exploitation” By
Buyers, Charge
growers against
bill, KERR STATES
Tar Heel Congressman Says
Purpose of Measure Is To
Break Up Auction System
of Selling Tobacco; Re
members Farm Delegation
Opposing Plan
Washington, July 25 (AP)—Resum
ing debate on the Flannagan tobacco
grading bill, the House today was told
that under the present auction sys
tem for selling tobacco, farmers are
subjected to “wholesale robbery” and
"exploitation” by buyers.
‘ There is no class of people in
this country victimized as the to
bacco growers,” declared Represen
tative Cox. Democrat. Georgia. “I feel
outraged every time 1 go on a tobac
co floor at the wholesale robbery I
see committed against a helpless
peocle It is exploitation.”
Cox said the purpose of the Flan
r.agan bill, which would establish gov
ernment standards for tobacco, was
•simply to advise the grower as to
the quality of his product and assure
him a fair price.
“It will work toward stripping the
tobacco buyers of the overlordship
they have exercised over the grower
for rnany years, “the Georgian as
serted .
Cox was joined by Representative
Boilleau. Progressive, of Wisconsin,
tvho said the proposal would give to
bacco farmers the advantage of ex
pert information as to the value of
his crop.
Opposing the bill was Representa
tive Kerr. Democrat. North Carolina,
co-author of the Kerr-Smith tobacco
control act.
“This bill has as its purpose the
breaking up of the auction ware
house system of selling tobacco,”
Kerr said. “Tobacco farmers do not
vrant it. They want to be left alone.”
declared North Carolina and
Kentucky growers came to Washing
ton last spring and “begged” that the
bill not be passed.
Will Probe
Size Cotton
Crop Abroad
Washington. July 25.—(AP) —An-
gered by statements —which he doubts
—that foreign cotton growers are
winning America’s market. Chairman
Smith. Democrat, South Carolina, of
the Senate Agriculture Committee,
said today he would visit these cot
ton growing counties and find out
first hand.
He listed India, Russia, Brazil and
Argentine and said he might travel
in part by air.
Cotton growers have been told
that if they force thep rice of cotton
r °o high, other counties would come
in and take the market,” Smith said.
I don’t believe it
“America has a monopoly on the
-est cotton and should be in position
lo set the price.”
Fight On Tax May Delay
Georgia Market Opening
Macon, Ga, July 25. —(AP) —A
petition by a group of Georgia to.
hacco warehousemen seeking to
enjoin enforcement of the State’s
new tobacco law fixing uniform
handling fees was presented here
today to Federal Judge Bascom
Beaver.
The ease was not filed in the
court, but the petitio nwas hand
ed to Judge Deaver for his per
usal, apparently to determine if it
can be filed properly in the court.
The paper, as prepared by at
torneys for 44 tobacco warehouses
designed as a suit in equity
petition.
Atlanta. Ga., July 25.— (AP) A
thseat oi delay in the opening of
( o'oit*ia tobacco auction markets Au_
i appeared today, as a group of
Uruiirrsiut ißaily itsuatch
ONLY DAILY NEWSPAPER PUBLISHED IN THIS SECTION OF NORTH CAROLINA AND VIRGINIA.
WIR ® SERVICE O W
THE ASSOCIATED PRESS.
WILDERNESS PROTECTION FOR ABYSSINIAN CAPITAL
One of the hazards obstructing any armed attack
directed at Addis Ababa, capital of Abyssinia, is
the wilderness that surrounds it. This picture
made several years ago, shows the topography of
W ould Draw
Teeth From
Tobacco Bill
Tar Heels Lead Fight
Against Compul
sory Grading I n
Flannagan Act
Washington, July 25.—(AP) —An at
tempt to eliminate compulsory fea
tures of the Flannagan tobacco in
spection and grading bill was made
today as the House continued con
sideration of the measure.
Opponents planned an amendment
striking out all compulsory features,
and provisions for penalties. Led by
Representative Clark, Democrat,
North Carolina, the opposition based
its attack on the contention that the
measure, as now written, would be
unconstitutional.
A colleague, Representative Um.
stead, Demorat, North Carolina, was
to offer the emasulating amendment.
“It is not interstate commerce to
say this pile of tobacco is grade four
and this one is grade five,” said
Clark yesterday, as he branded the
measure the “most unconstitutional
bill ever proposed in this House.”
The measure would provide com
pulsory trading of markets designated
by the agriculture secretary, but pro
ducers would be permitted by refer
endum to decide whether the major
ity wanted the service.
TvEatheT
FOR NORTH CAROLINA.
Generally fair tonight and Fri
day, except local thundershowers
Friday afternoon in west and
north portions.
warehousemen prepared to attack the
right of the State to regulate the in
dustry iby prescribing maximum fees
to be charged growers.
Forty-four warehousemen prepared
to go before the United States dis
trict court at Macon today seeking
an injunction against enforcement of
the State act regulating fees. As the
litigation was prepared, Commission
er of Agriculture Thomas Linder said
he hoped tobacco growers “will not
put one single pound of the leaf” on
the market August 1 if the injunction
is granted.
The warehousemen charged the fees
fixed by the legislature will produce
eductions of 20 to 30 percent in theft
earnings, and will put them out of
business. ,
They, contended the act is not con
stitutional and attacked it on various
other grounds.
HENDERSON, N. C. THURSDAY AFTERNOON, JULY 25, 1935
the countryside which would make progress of in*
fantry difficult. The capital may be glimpsed ia
the right background, situated on a high plateau.
It may be abandoned in case of war.
Report Torso of
Woman In Water
Morehead City, July 25.—(AP)
The tug boat Alma’s crew report
ed to police and the coast guard
they had seen the body of a wo
man floating in Bogue Sund near
Swannsboro when the tug reach
ed Morehead City today.
Iwii
Can Demand PWA Money
Soon As Dr. Baity Fin
ally Approves It
Hall)' ninpiitrli Bureau,
In the Sir Walter Hotel,
BY J. C. BASKERVILL.
Raleigh, July 25—The contract for
the PWA loan for the Morehead City
port terminal has already been sign
ed, has ben approved by the PWA
legal department in Washington and
now only awaits the final approval of
Dr. H. G. Baity, state PWA adminis
trator, to become effective, it was
learned here today from Attorney
General A. A. F. Seawell, who has
been working for many months on the
many legal intricacies that developed
in connection with the project. As
(Continued on Pa.ee Three).
Highway Police to Have 40
of Them, Equipped to
the Last Word
In the Sir Walter Bote!,
Dally Dispatch Bureau,
BY J. C. EASKERVILL.
Raleigh, July 25.—The cavalcade of
40 special Ford V-8 roadsters for the
State Highway Patrol, arrived here
Wednesday afternoon and were un
loaded at the patrol training school
at the State Fair Grounds, a few
miles west of Raleigh. They were de.
livered direct from the Ford plant in
Charlotte on special trucks carrying
three cars each. The patrol cars are
painted aluminum color, with the ex
ception that the hoods are painted a
dark blue in order to reduce the glare
in the eyes of the driver. The cars
are equipped with a special high-speed
rear axle that will permit them to
make a speed of more than 10(T miles
an hour.
The cars also have a special rear
compartment so arranged that w,ien
the deck is raised, space is provided
for a stretcher. Every one of these
cars will carry a first aid kit and a
stretcher so that in cases of serious
automobile accidents they can be con
verted into emergency ambulances, in
which the injured may be rushed to
the nearest hospital. Each patrol car
(Continued on Page Five.)
INewTaxMay
Double Total
Os Estimates
Chain Filling Station
Levy May Yield
$500,000 Instead of
$300,000.
Dally Ul«|i«tck Bureau,
In the Sir Walter Hotel,
BV J, I!. BASKERVILL.
Raleigh, July 25. —The big gasoline
and oil companies, as well as tire and
battery dealers which operate chain
stores and service stations, are geing
to have to “kick in’’ to the tune of
about $500,000 a year in State taxes
under the chain filling and service
station section of the new 1935 rev
enue act, as the result of the ruling
jus* issued by Commissioner of Rev
er a A J. Maxwell, interpreting the
new chain filling station tax section,
according to a number of State offi
cials here. During the present Gen
eral Assembly it was estimated that
this tax would yield only about $300,-
000 a year at the most. But the belief
now is that it will probably yield
nearer $500,000 a year.
As the chain filling station tax sec
tion is interpreted by Commissioner
Maxwell, parent gasoline and oil cor
porations will be required to pay tne
tax on the following stations:
1. All the stations which the par.
ent companies own and operate.
2. All the stations which they lease
from the owners and from which they
(Continue*! on Pair* Two)
INMSMM
Administration Fighting
Utilities and Bankers
With Own Weapons
By LESLIE EICHEL
Central Press Staff Writer
New York, July 25.—The strategy
of the Roosevelt administration to
rebut the attacks becomes apparent.
The utility and banking interests
have played into the hands of the ad
ministration, according to present In
dications (That does not mean, how
ever, that congress will ,be amenable
to put through the holding company
and banking bills with real teeth in
them.)
While on one hand we see the sen.
ate lobby investigating committee,
under Senator Hugo Black, of Ala
bama, uncovering evidence that utili
ties paid for the protests and attacks
on the utility holding company bill,
we hear also of charges that utility
banking interests likewise paid for
attacks on the AAA, the TV A, the
banking bill and the PWA as well.
And up its sleeves, the administra
tion is to have evidence pur
(Continued on Page Two).
Great Britain And
Belgium Stop Arms
Exports To Africa
Britain, However, Will Per
mit Transit Across Her
Territory by Other
Nations
STILL HOPING FOR
PEACEFUL OUTCOME
Eden Will Try Hard at Com
ing League Council for
Plan To Prevent Italo-Ethi
opian War; France Under
stood To Oppose Arms
Shipments Also
London, July 25.—(AP) —Sir Samuel
Hoare, foreign secretary, announced
in the House of Commons today that
the British government will not. for
the present, grant licens for the ex
portation of arms from Great Britain
to either Italy or Ethiopia.
He said that the transit across Bri
tish territory of arms destined for
Ethiopia would, however, permitted.
“The government,” said Sir Samuel,
“is doing its best to make possible the
peaceful outcome of the present un
happy issue, and would not wish to
do anything that might prejudice the
situation, and it will, therefore, for
the present, not issue license for the
export of arms from this country to
either Italy or Ethiopia.”
The foreign secretary said the
French government, he understood,
interprets its obligations under the
treaty in the same manner.
Meanwhile, Prime Minister Stanley
Baldwin and leading members of the
cabinet were represented as faovring
full League action, providing ther
powers agree, as a last resort to
avert war between Italy and Ethiopia.
The time limit for appointment of
a fifth arbitrator to the deadlocked
conciliation commission expires to
night, apparently killing all hope of
settling the crisis by direct negotia.
ticns-
Some circles said that Captain An
thony Eden, therefore, will go to
Geneva for the League of Nations
Council session about July 31 empow
ered to announce that Great Britain
is ready, if no other alternative can
be found, to stand by all of its obliga
tions under tre League covenant.
Political circles said that Eden, an
(Continued on Page Eight)
All Catholic
Press Banned
By The Nazis
Berlin, July 25. —(AP) —Naziism
moved today to make its curb on
“political Catholicism” complete, turn
ing to a drive for elimination of the
Catholic press.
The signal for the public campaign
was sounded by the official Nazi party
organ of Baden;, “Fuehrer,” which
came out with a demand for crushing
of Catholic newspapers.
The political police dissolved the
steel helmet unit in western Medlen
burg at Parchim, Ludwigslufft and
Warren today on the ground of sub
versive activity.
Ethiopians
Again Plead
League’s Aid
Note Sent by Selas
sie; Italy Willing To
Resume Concilia
tion Meetings
Geneva, July 25.—(AP)—A new note
again requiting urgently a session of
the Council of the League of Nations
was received today from Ethiopia a
short time before the publication of
an Italian note .blaming Ethiopia for
the breakdown in conciliation efforts-
The Ethiopian note, the text of
which was not made public imme
diately by the League, protests again
against Italy’s action, and declares
(Continued on Fate Two)
PUBLISHED EVERY AFTERNOON
EXCEPT SUNDAY,
Banker Held
y;
—■ V '
B. Coles Neidecker, head of Travel
ers’ Bank, Paris, is being held for
Paris authorities by New York po
lice for questioning in connection
with the bank’s closing,
(Central Press)
ADMITS SON GAVE^
Head of Texas Power and
Light Company Testifies
In Lobby Inquiry
BOOKS ON LIVESTOCK
May Have Been In Package Seen;
Cigars Given In Appreciation
of Invitation To Go Fish
ing, Witness Says
Washington, July 25.—(AP) —Ques-
tioned by Senate lobby investigators
as to whether he recalled giving any
one a box just before she House vote
on the utilities bill, John W. Carpen
ter, president of the Texas Power and
Light Company, said today his eldest
son, John, had given a box of cigars
to Representative Patman, Democrat,
Texas.
He added that the mysterious news
paper-wrapped package which figured
in previous testimony may have been
books on livestock.
Meanwhile, the House Rules Com
mittee investigating lobbying for and
against the utilities bill received tes
timony from Hugh S. Magill, presi
dent of the American Federation of
Utilities Investors, that the organiza
tion spent $60,000 in the last six month
in the “interest of the millions of in
vestors its represents.”
Os this amount, he said, $5,000 was
spent against the utilities bill, and
part of the remainder the
Tennessee Valley amendment.
“I didn’t give anybody a box of
cigars, but my son said yesterday he
gave Mr. Patman a box of cigars,”
Carpenter said.
He added that his son had told him
yesterday about giving a box of cig
ars to Patman because he had invited
(Continued on Page Two)
Huey Long In New York
Again Jumps On Critics
New York. July 25.—(AP)—Huey
Long brought his one-man circus to
New York today, balancing sundry
political comment on the ice cold rim
of a cocktail shaker.
Judas Iscariot, Benedict Arnold and
the Trojan horse incident rolled off
his tongue as he drew and quartered
his critics.
The senator’s chief concern —in his
purely flip mood-appeared to be tne
ingredients of a gin fiz. “and mind
you,” he warned spectators and re
porters, “I’m on the wagon.”
8 PAGES
TODAY
FIVE CENTO COPY
SCHEDULE OF LEVY
FOLLOWS THE IDEA
OF SOAKTHE-RICH
Incomes Over $150,000 An
nually Would Be Taxed
Much More Heavily
Than at Present
INHERITANCES OVER
$50,000 GIVEN BLOW
Corporation Profits Over
Eight or Ten Percent
Would Be Gouged Into
Deeply; All New Rates Ap
ply in Addition to Normal
Four Percent Income Levy
Washington, July 25.— (AP) —A ten
tative agreement on a new tax bill to
raise around $200,000,000 a year, but
which does not include the inter-cor
poration dividend tax proposed by the
President was reached today by
House Ways and Means Committee
Democrats.
The tentative measure would put
heavier taxes on all individual in
comes over $150,000; inheritances over
$50,000 left to close of kin. the profits
that a corporation makes above eight
or ten percent on its capital, and cor
poration income.
The tentative decision to include
the last, if it is not overthrown sub
sequently, is a partial victory for the
President.
He proposed that the present flat
13 3-4 percent tax on all corporation
incomes be replaced with a graduated
levy ranging from 10 3-4 to 16 3.4.
Chairman Doughton, flemocrat,
North Carolina, of the committee, said
the range would “probably be much
narrower than that—maybe from 13
1-4 to 14 1-4.”
He added, too, that the Democrats
had decided not to include an increase
in the present one-tenth of one per
cent tax on inter-corporate dividends
—those paid from one corporation to
another.
The inheritance tax rates would .be
gin at four percent on the first $lO,-
000 above an exemption and reach 75
percent 0 f that part of an Inheritance
over $10,000,000.
The individual income tax plan
would raise from 53 to 54 percent the
present surtax on individual exemp
tions. The maximum rate on income
over $10,000,000 would be 75 percent,
against the present 59 percent. To all
those rates must be added the exist,
ing “normal” tax of f° ur percent,
which applies to the first $4,000 of
every taxable hcome.
Movements Like This Have
Met Little Success in
Modern Times
By CHARLES P- STEWART
Central Press Staff Writer
Washington, July 25.—Mass pio
neering in Alaska evidently is a fiz.
:-,le.
The Matanuska Valley colony is re
ported in a violent state of discontent
again. It was in a similar state once
before, and that time it was hushed
up, .but it doesn’t stay hushed.
The colonists say they can’t stand
the hardships.
Ye| AlaskaN Territorial Delegate
Anthony J. Dimond describes their
kind of pioneering as “pioneering de
luxe."
ALL FAIL NOW
Since the beginning of the World
war I have seen three attempts at
wholesale colonization made in more
(Continued on Page Eight)
But he found time to call “those
five congressmen back home” Judas
Iscariots and Benedict Arnolds.
“If I was to say to those guys—
those traitors —those birds —” he an.
nounced in speaking of the congress
men who this week termed him a
traitor to the party—‘“Children come
home,’ you’d see such glee as to shame
the Hottentots.
“Those guys are going to get what
is coming to them. Pretty soon they’re
(Continued on Pag© Flo©)