HENDERSON
GATEWAY TO
CENTRAL
CAROLINA
twenty-third year
CORPORATIONS MAY BE DENIED TAX-FREE RESERVES
Cut In Relief Asked In Congress As FDR Frames Request
BOTTOM OF BARREL
IS BEING SCRAPED,
PRESIDENT STATES
Still Studying Federal Ex
penditures But No Fig
ures on Savings Are
Ready Yet
estimates TO BE
SENT IN SHORTLY
Will Go To Congress Prob
ably Late Next Week;
Vardenberg Demands In
vestigation of Reports Os
Collection of Campaign
Funds frm WPA Workers
Washington. March 6 (AP)
—President Roosevelt said to
day there would be at least one
more conference on next year’s
relief problem before any de
cision on the amount of money
he would ask Congress to ap
propriate.
Hr made this reply to press con
ference questions as a Democrat urg
ed a one billion dollar limit on the
new appropriations, and a Republican
demanded a nationwide inquiry into
charges of political “exploitation of
human misery.”
The President told newspaper men
he was still studying Federal expen
ditures, but could not announce any
absolute figures on savings. He said
he and his fiscal aides were getting
close to the bottom of the barrel in
scraping for funds to complete this
year's relief program.
Ready Next Week
At the press conference, the chief
°xecutive said he expected to submit
his relief estimates to Congress some
time between March 10 and March 19.
There has been no authentic hint of
what figure, if any, the President has
in mind.
There have been reports that this
sum might he two billion dollars —
more or less—hut Chairman Buchan
an. Democrat, Texas, of the House
tf’onUniiPd on Pip-s fi 11 ! >
Would Stop
Estimates
On Cotton
Washington, March 6. —(AP) —Eli-
mination of government cotton pro
duction estimates issued by the Agri
culture Department from August to
December was proposed today by Sen
ator Smith, Democrat, South Carolina.
Presiding over the agriculture com
mittee’s hearings on cotton futures
trading, Chairman Smith said he
thought the Agriculture Department
ought to be restricted to general re
ports alone.
He described the estimates as
guesses.” Smith also said he favor
ed barring use of the mails and otn
er forms of interstate communica
tion for distribution of private esti
mates as to probable cotton produc
tion.
Smith intimated he would seek leg
islation to prevent cotton crop esti
mates.
As things develop at this hearing,
(Continued on Page Six.)
Babson Warns Os Shaky
Stocks In Coming Boom
Huge Expansion Program I inevitable for United States
When Jam Finally Breaks fior New Production;
Securities Act One of B est New Deal Measures
KY ROGER W. BABSON,
Copyright 1936, Publishers
Financial Bureau, Inc.
Robson Park, Fla., March 6. — Our
"Employment problem could be sol-
Vf d tomorrow if investors, labor lead
f;rs, and the government would act for
’he good of the nation as a whole in
•'tearj of being so greedy. Lack of
f aith in God and one another accounts
ff " h big percentage of our present
""employed. Hence, every indicator
( ’J " spiritual awakening means more
jobs, greater purchasing power, and
!; " good omen for all useful lines of
business. Most important of all, such
a return of faith will result in an in
tlease in new financing—the founds
HruJirrsmi Hatlu tfenafrh
ONLY DAILY NEWSPAPER PUBLISHED IN THIS SECTION OF NORTH CAROLINA AND VIRGINIA
leased wire service of
the associated press.
Democratic Convention
Will Probably Be Held
After June 6 Election
Seeks Independence
i m M
y : jpr Jr fjgjf
ii-,. •
F wmm
Pedro Alzibu Campos
Puerto Rican moves for separa
tion of the island from the United
States are led by Pedro Alzibu
Campos, above, a graduate of
Harvard university and a leading
lawyer of San Juan. He is head
of the Nationalist party. Campos
le shown here speaking at the fun
eral of one of the assassins of
Colonel Riggs, chief of the island
police. The two young assassins
were shot by police soon after
they had been taken to the police
station.
Hoey Is For
Legislature
If Necessary
Denies He Has Op
posed It for Any
Fear of Effect Upon
His Candidacy
Daily Dispatch Bnremi,
In The Sir Walter Hotel,
Mr J. C. RASKERVILI,
Raleigh. March 6. —“I am not at all
opposeu to a special session of the
General Assembly to enact tobacco
crop control legislation, and if it be
comes apparent that such a session is
necessary and would accomplish any
good, I think one should be called,”
Clyde R. Hoey, one of the four can
didates for the Democratic nomina
(Continued on Page Three.)
tion of more joihs.
New Capital Timid
The drying up of new financing is
one indication of the low level of pub
lic morale since 1931. The investment
market is characteristically sensitive
and timid. Capital cannot be forced
into industry. Investors will not sink
their money in new enterprises un
less they are reasonably sure that
their government, their associates,
and labor will play fair with them.
Ever since early 1931, investors have
felt that moral conditions did not war
rant risking capital in new enter
prises. The huge volume of refinanc-
(Continued on Page Three.)
HENDERSON, N. C., FRIDAY AFTERNOON, MARCH 6, 1936
If Held Before Primary Mc-
Donald Forces Might Try
To Make Capital
Out of It
HIS CANDIDACY IS
TOPIC OF GOSSIPS
Clans Gathering for Execu
tive Committee Meeting
Tonight Ponder Political
Effects of Date for Meet
ing; McDonald Campaign
Is Much Feared
Raleigh, March 6.—(AP) — The
moguls of the Democratic party
in North Carolina gathered here
today to fix the time and place
of the Democratic State conven
tion.
Tonight, the Democratic Execu
tive Committee, meeting on call of
Chairman Wallace Winborne, will
set precinct, county and State
convention dates, and Raleigh was
expected to get the State meeting.
There was still discussion as to
when the State parley would be
held. The last two conventions
were held after the first primary,
and it was indicated that order
would prevail again.
Many party leaders were al
ready on hand this morning and
others were arriving.
Daily Dispatch Bureau,
In The Sir Walter Hotel,
By J. C. B \SKERVILIi
Raleigh, March 6. — The air is full
of politics here today and the hotel
rooms and lobbies full of politicians
and candidates as a result of the meet
ing here tonight of the Democratic
Executive Committee for the business
of fixing the date for the State Dem
ocratic Convention. Next to the meet
ing of the Democratic convention it
self, the meeting of the State Demo
cratic Executive Committee always
(brings more politicians, candidates,
would-be candidates and political talk
to Raleigh than anything else. So
there were about as many local and
State political leaders and candidates
already here this afternoon as there
(Continued on Page Two.)
1936 Seed Loans
To Be Available
In Next 10 Days
Washington, March 6.—(AP)—•
Governor W. I. Myers, of the
Farm Credit Administration, an
nounced today that emergency
crop and seed loans for 1936 will
be available to farmers within the
next ten days.
The Treasury, he said, has ad
vanced $7,000,000 from relief funds
President Roosevelt has said $30,-
000,000 will he available in all.
Myers said regulations covering
the loans closely followed those of
former years and will be avail
able to farmers in the same way.
Loans will not exceed S2OO to
one farmer. No loans may be
made for purchase of livestock or
machinery, or for payment of
rents, debts or taxes.
Hotel Group
To Walk Out
With Strike
Threats of “General
Strike” in New York
Heard as Trouble
Continues
New York, March 6. —(AP) —
Hotel workers were called away
from their jobs today in support
of the building employees strike
which strike leaders prepared to
extend to Manhattan’s important
Grand Central zone, Brooklyn and
Queens before nightfall.
The action came shortly after Chris
Houlihan, president of the hotel work
ers union, left his offices with the an
nouncement that he would “pull” the
hotel workers.
The “general strike” threat voiced
earlier in the week by James J. Barn
brick, head of the building service em
(Continued on P age Six.)
0. S. Guards Secrets of Latest Submarines
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' ' I ' $ .. ,V Tft i.y) ££%,■■ ■ . |§R§g|¥ .
• •&&; - ■ --- 111 • /
|| ...
Two latest additions of the U. S. Navy, recently completed, are the submarines P-1 and P-3, shown on a
visit to Washington, D. C. A “no visitors” order prevents latest submersible secrets developed by the navy
from leaking out. They are the first to be commissioned under the new navy program and displace 1,300
tons each. ( Central Press)
British Red Cross Man
Killed By Italian Bomb
U. S. Envoy Barely
Misses Fusillade
Belgrade, Yugoslavia, March 6.
(AP) —An assassin firing wildly at
Premier Milan Stoyadinovich nar
rowly missed shooting Charles B.
Wilson, United States minister to
Yugoslavia, today.
Wilson was sitting in the dip
lomatic gallery of the Chamber of
Deputies, when a deputy of the op
position party suddenly jerked a
pistol from his pocket and started
firing at the premier.
Other deputies seized him and
the first shot plugged into the wall
just over the head of the diplomat.
The remaining three shots went in
to the floor.
Several deputies whipped out pis
tols, but none of them fifed. The
assassin was taken into custody by
gendarmes, who led him off the
floor.
FDR TO WM
Administration Does in’t
Know Which Way to
Turn Until That Time
By LESLIE EICHEL
New York, March o —(President
Roosevelt enters the fourth year of
his administration with a stalemate.
He probably will take few definite ac
tions prior to the selectior of a Re
publican candidate at Clebeland in
June.
The Democrats have become puz
zled over the kind of candidate the
Republicans will choose. Can it be
possible that Senator William E.
Borah of Idaho will win the nomi
nation after all? It seems inconceiv
able, yet he is lining up important
figures on his side. The senator has
indicated that Frank E. Gannett,
publisher of several powerful papers
in New /York State, is his choice as
a running mate. (In the Ohio primary
Gannett will he listed as second
choice on the Borah ticket).
If nominations were left to popular
vote, the Republican contest would be
between Governor Alfred M. Landoir
11,1 ■■ ■■■ »
(Continued on Page Six.)
OUR WEATHER MAN
FOR NORTH CAROLINA.
Generally fair tonight and Sat
urday; slightly colder tonight,
slightly warmer in extreme west
portion Saturday.
Major Burgoyne Loses Life
In Blast from Airplane
Missile Behind
Ethiop Lines
BRITAIN TO ENTER
A STIFF PROTEST
Meanwhile, Ethiopian Gov
ernment Sends Vigorous
Complaint to League of
Nations at Geneva; Inci
dent May Bring Complica
tions With Great Britain
London, March 6. —(AP)— The
British government today instruct
ed its ambassador in Rome, Sir
Eric Drummond, to protest to
Italy against the bombing of a
British Red Cross unit in Ethio
pia.
Sir Eric was ordered to ask the
Italian government to make an
immediate investigation of the af
fair, and to instruct its military
command to see to it that noth
ing of the sort occurred again.
Addis Ababa, March 6 (AP)—A
British Red Cross worker, Major
Bourgoyne, was killed by a bomb
dropped from an Italian plane, an
lEthliopian government communique
said today, while participating in an
Ethiopian withdrawal back of the
northern front.
The original report of the latest
bombardment said seven patients
were killed yesterday in an attack
on a British ambulance camp near
Quoram, but that none of the per
sonnel was injured.
Fresh Ethiopian reports, however,
said that three Himya natives, Brit
ish subjects, were wounded in the
bombing and succumbed to their in
quires.
BRITAIN TO ENTER STIFF
PROTEST TO THE ITALIANS
London, March 6 (AP) —An author
iative source said today that Great
Britain would deliver a stiff protest
to Italy against the bombing of a
British Red Cross unit by an Italian
(Continued on Page Three.)
Asserts Doherty
Made Big Fortune
On Cities Service
Washington, March 6. —(AP)
Testimony that Henry L. Doherty,
head of the Cities Service Com
pany, made a profit of $18,000,000
by* selling 200,000 shares of com
pany securities in March, 1929,
was received today by the Senate /
Lobby Committee.
The sale was made, testimony
showed, just before employees of
the system were invited to buy
the concern’s issues on the install
ment plan.
In April, 1929, testimony de
veloped, employees of the system
were “given permission” to buy
company stocks and given five
years in which to pay for them.
Testimony was given that Do
herty sold about one-fourth of
what he owned.
PUBLISHED EVERY AFTERNOON
EXCEPT SUNDAY.
COMIETEE BALKS^
Senate Military Group Su
stains Sub-Committee’s
Disapproval
Washington, March 6 (AP) —The
Senate Military Committee today
voted 14 to 2 against the proposed
investigation of the removal of Ma
jor General Johnson Hagood from
committee of the eighth corps area
for criticizing Federal spending.
Only minutes before this action,
President Roosevelt, at his press con
ference, refused to comment on the
Hagood case.
In rejecting the resolution of Sena
tor Metcalf, Republican, Rhode Is
land, for the inquiry, the committee
upheld a sub-committee of three,
which unanimously recommended dis
approval of the resolution. (
The sub-committee declared in its
report that while army officers should
be permitted to answer legitimate
questions before congressional com
mittees without subjecting themselv
es to discipline or punishment, free
dom of speech as guaranteed by the
Constitution does not mean a “li
cense” to use language which may be
interpreted as critical of the Presi
dent, the Congress, or other govern
ment officials.”
armyMenmlt
HAVE GOT HAGOOD
It Is Known He Had Ene
mies in the Service, Whom
He Had Criticized
By CHARLES P. STEWART
(Washington, March! 6—President
Roosevelt, if at all responsible for
disciplining of Major General
Johnson Hagood, may not have been
an exclusively responsible for it as
critics of the administration have
represented.
It is widely gossiped in Washing
ton that the general had bitter ene
mies in influential army circles.
The guess is hazarded, from very
well informed quarters, that some of
these folk had been waiting a long
time for a good chance to “get” him.
It is unlikely that they were In the
least resentful of his reference to
(Continued on Page Three.)
Army Vetoes New
Japanese Cabinet
Tokyo, March 6 (AP)—Koki Hiro
ta’s hopes of introducing a new na
tional cabinet to Emperor Hirohito
immediately, disappeared today when
the army arose to demoenstrate that
it was still politically powerful enough
to wreck any efforts to form a min
istry, despite its loss of prestige and
popularity after last week’s military
uprising. ,
Because high militarists disliked
some of Hirota’s Liberal nominations,
8 PAGES
TODAY
FIVE CENTS COPY
GENERAL REVISION
OFMSUMLY
Would Take Months And
Hold Congress Until Sep
tember, Speaker
Byrns Declares
DOUGHTON OPPOSES
PROCESSING LEVIES
Another Tax on Automo
biles Is Also Considered;
Indications Now Business
Will Be Allowed No Un
taxed Reserve Whatever
for Rainy Day Emergency
Washington, March 6 (AP)
—lndications that the Treas
ury has completed presentation
of possible methods of raising
money emerged today from a
session of a House Ways and
Means sub-committee.
Chairman Samuel B. Hill, Demo
crat, Washington, told reporters after
the meeting that “we just re-hashed
what we have gone over before.”
No Thought of “Cushion.”
While indicating that attention cen
tered today on a tax on undistribut
ed corporation earnings, Hill said no
discussion was given over to permit
ting corporations to build up a “cush
ion” of reserve which would be tax
exempt or assessed at a low rate.
It appeared the sub-committee ses
sions were about to resolve themsel
ves into debate over relative merits
or demerits of money sources already
suggested iby Treasury and Agricul
ture Department officials.
No General Tax Revision.
Speaker Byrns said at his press con
ference he did not anticipate any tax
revision at this session.”
“I hope not,” he said, on question
ing. “That takes months, and we
haven’t time, of course, unless we
want to stay here until next Septem
ber.”
The speaker said he assured the
ways and means committee would go
into all the revenue sources in its
study, but said he personally hoped it
would select some method in which
taxes would not have to be distribut
ed over a great many items. That, he
said, should be left for general tax
revision.
Doughton Opposes Processings.
Asked about Chairman Doughton’s
Democrat, North Carolina, statement
that he would prefer not having pro
(Continued on Page Three.)
Warning On
Soil Plans
By Wallace
Memphis, Tenn., March 6.—(AP) —
Renewing his warning to the nation’s
farmers that production control as
such cannot be effected under the soil
conservation program, Secretary Wal
lace today said:
“We don’t want this new act im
periled by the Supreme Court.”
Wallace, admitting that he was
speaking “very broadly,” told more
than 500 delegates to a regional farm
conference that AAA probably would
seek to divert 11,000,000 acres from
cotton to soil conserving growth this
year.
This figure was an increase of 1,-
000,000 acres from the estimate made
yesterday by Cully A. Cobb, chief of
the AAA cotton section.
“Since I arrived here last night,”
Wallace said, “I have found a feeling
that some of you want us in Wash
ington to tell you what to go home
and do.
“We do not purpose to do that.
“From a long range point of view,
I am inclined to think the new act is
better than the old AAA. From a
short range view, I am not so sure.
We can’t proceed as definitely to raise
cotton prices as we did under the old
act.”
they influenced Count Juichi Terau
chi’s, proposed as war minister, to
withdraw from the cabinet slate, and
indicated no other general would be
permitted to join the ministry unless
their terms were met.
The army’s refusal to supply a gen
eral to fill the war ministry in the
crisis could defeat the efforts of any
premier designate to create a cabinet.
Tonight, after a day of feverish ne
gotiations, the situation was deadlock
ed. . .