HENDERSON
GATEWAY TO
CENTRAL
CAROLINA
TWENTY-THIRD YEAR
AAA Unconstitutional
*********************-V- « * * .V. -Y. „ .V. * » „ * * , *
Roosevelt Promises Billion Dollar Deficit In 1937
DEFICIT AND DEBT
TO ADVANCE WITH
NEXT FISCAL YEAR
Public Debt Will Hit $31,-
351,638,737 For New All-
Time High For United
States.
NO INDICATION OF
BALANCED BUDGET
Emergency Activities Made
Permanent Burdens O f
Government by President’s
Decision; Business I m
provement Expected To
Lift Federal Revenues.
r.j | KWC’I.S M. STF.I'II 10N SO N.
A*se-is«te«l ITens Staff Writer
Washington. Jan. 6 (AP) —A
Treasury deficit exceeding one
billion dollars —without count
ing unestimated new relief
costs —was forecast to Congress
!>v President Roosevelt today for
the next fiscal year.
17 n preced on tedly, he withhold a
complete budget estimate on how
much the government would spend in
lne 12 months beginning July 1. For
11)0 present he listed $0,752,600,370. but
tid later requests for work-relief
money would be forthcoming.
Hr ";ivi> notice that next year’s do
ficit —and the public debt- would
mount accordingly.
.lust now. Mr. Roosevelt foresaw a
debt at tl * end of the 1930-37 period
of $31,351,638,737.
This would be an all-time high.
There was not the slightest hint
~f readmes 1o meet demands from the
opposition for an immediately hal
nnoeil budget. rending study the
voluminous document, political load
-r. in general withheld detailed com
ment .
From the start, however, dispute
was plainly inevitable. Comment va
ried V~V'f v according to the econo
mic; views of the legislators iathci
than along strictly party lines.
"To run all the regular activities ot
(Continued on Page Six.)
South Carolina’s
Electricity 1 axes
Upheld by Court
Charlotte, Ja*. 6. —(AT) —The
l’ni ted States Circuit Court of
Appeals today upheld the 1931
South Carolina law levying a tax
of one half mill per kilowatt hour
on electricity produced within the
Slate.
The ruling was <m a case
brought by the Duke Power Com
pany, contending the act uncon
stitutional, and that even if it
were constitutional the tax should
he computed on delivered dec- ,
tricity after deduction of trans
mission losses.
Believe Nine
Perished In
Hotel Blaze
Westfield, Mass.,
Structure Burns
Like Tinder i n
Tragic S u n d a y
Night Blaze.
Westfield, Mass., Jan. 16 (AIM—
Firemen recovered four bodies
and searched for five others to
day in the smouldering ruins of
the Van Duscn Hotel, transform
ed three weeks ago from an old
residence. The three-story brick
veneer structure, opened last
mouth by Spencer Van Dusen for
permanent guest* burned like
matchwood last night.
Before trying to check the blaze,
firemen endeavored to rescue the
' (Continued on Pace Twc.) *».
L-~. -
Untitersmt ikttly Dispatch
ONLY DAILY NEWSPAPER PUBLISHED IN THIS SECTION OF NORTH CAROLINA AND VIRGINIA *
' V| ms 'SERVICE OF
I III’. ASSOCIATED PRESS.
Uncle Sam Spends
$21,339,900 Daily
Washington, Jan. 6. —(Al*)—Un-
cle Sam’s spending program dur
ing th«“ next six months involves
an outlay of $21,339,900 each and
every day.
His intake will he at the rate of
$13,892,000 daily in the same pe
riod.
These figures are based on es
timates today in President Itoose
'ell’s *037 budget message.
In contrast, present figures for
the new fiscal year beginning next
•inly I call for a daily intake of
$15,500,000 and an outgo of $18,500,-
000.
Work relief funds yet unestimat
e<l may change this ratio.
j " --
1936 RELIEF LOAD
ESTIMATED BY FDR
AT $2,136,000,000
Will Be Shaped Along Lines
Os This Year’s Works
Progress Program of
Action.
EXACT NEW NEEDS
WILL COME LATER
Will Depend Largely On
How Much Unemployment
Industry Takes Up, And
President Hurls Challenge
At Private Employers; May
Act Two Months Hence.
(Washington, Jan, 0 < AP)— PresSi-
Gent Roosevelt announced today the
shaping of next year’s relief pro
girmi along lines of this year’s works
progress plan, but made no attempt
to estimate its cost.
In leaving blank one of the most
j important single items in the anxious
ly awaited budget message, he ex
plained he would he able to esti
mate’ new relief needs better later in
the session. He forecast they would
hr. less than $2,136,000,000 and “far
j less” than this year.
The President told newsmen that
projects left over from this year’s
works progress program would leave
a very large reservoir of work for the
jobless next year. It was the first
official word on the character of the
(Continued on Page Six.)
congressUkEy
TOLIBERALIZAYYPA
May Permit Giving Work
To Any Unemployed, Re
gardless of Status.
imllv *>!s»n»iteh Oureiiw.
Tn |hr Sir Walter ll«*te«.
Hr .1 <’. HASH RUVIM.
Raleigh, Jan. 6.—This session of
Congress will undoubtedly change the
regulat ions governing employment for
WPA projects so that whenever the
j relief rolls are exhausted in any com-
I m unity, work can be given to any
who are unemployed, regardless of
whether they were formerly on relief
! or not, State Works Progress Admin-
I istrator Coan said here today. Under
j present regulations, the only persons
who can be given jobs on WPA pro
jects are those who were actually on
relief up to November 1, 1935, he
pointed out. Preference must also be
given to former relief cases in the
employment of workers on Federal
highway projects, farm-to-market
road projects, even PWA projects.
“Many here contended for several
months, especially highway and PWA
contractors, that they should be per
mitted to employ any unemployed
who are registered with the Rem
(Continued on Page Five.)
WEATHER
FOR NORTH CAROLINA.
Cloudy, with occasional rain
this afternoon and tonight, pos
sibly changing to snow flurries In
mountains tonight: Tuesday
cloudy and colder,,
HENDERSON, N. C., MONDAY AFTERNOON, JANUARY 6, 1936.
Big Political Guns to Lxplotle This Month
barrage of political oratory is ready to be ex
ploded upon the citizens of the United States dur
ing the month of January. Observers declare that
when the srrtokci has cleared away, the political
issuer of the coming presidential campaign will
have been definitely drawn. President Roosevelt
starts the hall rolling on Jan. 8, when he opens
his campaign for re-election with an address at
the Jackson Day dinner in Washington. Col.
Frank Knox, Chicago publisher, arranges nation
wide radio hook-up fo* speech in Detroit. Jan. 15.
Billion Dollars Asked For
Defense During Next Year
Washington, Jan O—(AF). —A na
tional defense budget of nearly a bil
lion dollars —the largest peacetime
sum ever asked for strictly military
and naval purposes —went to Congress
today from President Roosevelt.
He estimated $937,797,966 would be,
required in the 1936-37 fiscal year for
both the Army and Navy. A $193,000,-
000 increase over estimated 1936 ex
penditures would be devoted largely
to the acquisition of new fighting
House Body
May Approve
Bonus Today
Doughton Says Ways
A n d Means Com
mittee Likely Take
Action by Night.
Washington, Jan. 6 (AP) —Chair-
man Doughton, Democrat, North
Carolina, said today the House Ways
and Means Committee might approve
this afternoon the bonus bill behind
which House factions and major vete
rans organizations have united.
He made that statement after the
committee discussed the measure for
an hour and a half behind closed
doors.
Simultaneously, Speaker Byrns said
there would be every disposition on
ships, aircraft and personnel in the
year starting July 1.
Taking notice of the lack of pro
gress at the London naval confer
ence toward a new limitations agree
ment, he asked Congress to provide
$567,872,400 for the navy, much of
which would be used to build up the
fleet to full treaty strength by 1942.
Rig Increases for Army
For the Army, provision was asked
for purchase of 507 new airplanes,
Y S5Sfm
More for Him Than Ever,
Tyre Taylor, Founder of
Movement, Says.
Dully UUpnlfb Moreau,
In The Sir Walter Hotel,
My tl. MASKERVII.t,
Raleigh, Jan. 6.—The Young Demo
crats in the United States who helped
elect Franklin D. Roosevelt president
in 1932 are not only standing square
ly behind him now in 1936, but are
more enthusiastic in their support of
him now than they were four years
ago, Tyre Taylor, founder and past
president of the Young Democratic
Clubs in the United States, said while
spending a few days here. Mr. Taylor
for several years past a member of
the legal staff of the Reconstruction
Finance Corporation in Washington,
has been assisting Chief James A.
Farley in arranging the many Jack
son Day dinners being held through
ocratic Clubs the night of January 8.
Oiv» T2c* fYQ 'l
A . m
Others to talk during the month are former Presl
dent Herbert C. Hoover, Jan. 16, at Lincoln, Neb.;
Alfred E. Smith at dinner ot American Liberty
League in New York, Jan. 25; Senator Dickinson
of lowa before the National Republican club in
New York, also on Jan. 25; Senator William E.
Borah of Idaho at Brooklyn, on Jan. 29; Gov. Alf
M. Landon of Kansas at Topeka, Jan. 29, and
Knox again at Cleveland, also on the 29th. On
Feb. 12, Senator Arthur Vandenberg of Michigan
makes a Lincoln’s Birthday address in N«w York-
more tanks, armored and combat cars
mi increase in the number of West
Troint Cadets and in the National
Guard.
In connection with naval outlays, a
White House analysis said, carryover
and emergency funds would make
$621,900,000 available for spending
compared with $603,500,000 in 1936.
“These estimates,” it said, "repre
'Cnntinued on Page Five.)
Rumor Italy
Is Receiving
French Guns
M e antinie, Italian
Air Bombings Are
Pressed On AM
Fronts in Ethiopia.
(By The Associated Press.)
France dug diligently into a sus
pected plot to divert 3,000 army rifles
and machine guns to Italy today
while Italian war planes kept up a
persistent and widespread bombing
campaign in Ethiopia.
A missing cargo of arms was
found to have been routed mysterious
ly to a French port where, authorities
said, it could easily have been placed
aboard a ship.
Confusing reports of the death of a
rigA Papro TWO )
rcnii.sHED every afternoon
, EXCEPT SUNDAY.
884 More Planes
Will, Be Provided
Washington, Jan. 6. —(Al’)—Bol-
stering of the nation’s air defenses
by 884 new fighting planes at an
approximate cost of $58,000,000 was
(recommended to Congress today
by President Roosevelt.
llis 1937 budget estimates, grant
ing substantially increased approp
riations to the air arms of both
services for Ibis purpose, culled for
567 new planes for the army and
377 for the navy.
Os a projected $31,000,060 of
army plane purchases in Ibe new
financial year, 142 are intended for
the regular army’s general bead
quarters air force, 50 for the Nil
lion a,I Guard and 15 for the or
ganized reserve.
ROOSEVaT CHEFS
ABANDON HOPE FOR
WINNING BUSINESS
Business Better But Doesn’t
Thank Administration
For Improvement
Received.
HOWE, BACK ON JOB,
WARNS OF BUNGLES
Straw Votes May not Mean
Miwh, But Are Bad Dem
ocratic Propaganda; Some
Trade Garner For
John L. Lewis on The Tick
et With Roosevelt.
By CHARLES} V. STEWART
Central Press Staff Writer
Washington, Jan. 6.—Roosevcitian
leadership, it is rumored practically
lias abandoned hope of winning busi
ness’ support of its presidential can
didate at the coming election, but is
concentrating upon the task of cap
turing almost the solid vote of the
commonest of the common people.
Business is improving but business
men don’t seem to thank the admin
istration for it. Contraiwise, the more
it improves, the more, apparently,
they resent government interference
witli their efforts to make the most of
the improvement. The White House,
from all accounts, has about arrived
at the conclusion that folk like the
members of the American Liberty lea
(Continued on Page Two ),
Call Is Made For
Condition of All
Banks on Dec. 31
Washington, Jan. 6 (AP) —The
comptroller of the currency issued a
call today for the condition of all na
tional banks at the close of business
December '3l.
GURNEY HOOD GALLS FOR
REPORT OF STATE BANKS
Raleigh, Jan. 6 (AP) —Gurney P.
Hood, State bank commissioner, today
issued a call for the condition of ail
State banks in North Carolina at the
close of business December 31.
bloodybaTteeis
FOUGHT IN JUNGLE
Italians Bested For While
By Ethiopians Until Help
Comes Up.
Dolo, Ethiopia, Jan. 16 (AP) —Ital-
ian troops, thrusting forward to de
termine the strength of the enemy,
encountered Ethiopian raiders in a
dense jungle 35 miles north of Dolo
and fought a two-day battle, with 150
Ethiopians believed slain, and one
white Italian soldier killed.
1 Fighting was hand-to-lfand until
Italian reinforcements rushed up with
armored cars and machine gun squads,
routing the Ethiopians.
Ethiopian sharp shooters harassed
8 PAGES
TODAY
FIVE CENTS COPY
Act Declared by Roberts,
Who Reads Ruling, To fee
Invasion of State’s
Rights.
— ~—— i
OFFICIALS SILENT
ON HEARING NEWS
Neither Roosevelt Nor Wal
lace Will Comment, But
Speculation Begins As To
Effect on Coming Cam
paign; Government May
Seek to Find Way of Pay
ing Off.
Washington, Jan. G (AP)
Ilia sweeping decision, the Su
preme Court today ruled the en
tire AAA program was uncon
stitutional.
In an opinion read by Justice Rob
erts, the original adjustment act was
declared to be “an invasion of stales’
rights”, and beyond Federal power
under the "general welfare clause. ’’
IT the farm aid legislation were
valid, he said, it would he possible for
Congress "to regulate industry in its
most meticulous form.”
Speculation how the presidential
campaign would he affected stirred
instantly when the news reached the
Capitol. Legislators turned in private
from the business of the moment’s
examination of the 1936-37 New Deal
budget to mull over the possibilities.
Republican determination on farm
plank alternatives long hud been
awaiting the Supreme Court attitude.
What the New Deal would do was
awaited eagerly.
Secretary Wallace reserved com
ment.
It was indicated there would not bn
(Continued on Page Five)
Markets Surge Up
On Supreme Court
Decision on AAA
New York, Jan. G (AP)—Nulli
fication of the agricultural adjust
ment act by the Supreme Court
today brought a surge of buying
in food shares on the New York
Stock Exchange, which lifted
many $1 to $3 higher within a few
minutes after the decision waa
handed down.
Food stocks crept up in heavy
trading before the decision was
announced, and as soon as the
news reached Wall Street surged
up in a flood of buying which
overwhelmed the quotation serv
ice, tiie tickets railing a few min
utes in arrears of transactions.
Prices were up $1 or more a bale
in the New York Cotton Exchange
with heavy trading.
Conferences
Are Started
By President
Wallace and Cum
mings Summoned
T o White House
Following Decision.
Washington, Jan. 6. —(AP) — Presi
dent Roosevelt called Attorney Gen
eral Cummings and Secretary Wallce
to the White House this afternoon to
study the Supreme Court’s decision
against, the AAA.
Silent on the blow, Mr. Roosevelt
made it known that he will have oth
er conferences during the next thre©
of four days before any announce
ment is made by him.
•Stephen T. Early, a secretary to thq
(Continued on Twoj ..