Newspapers / Henderson Daily Dispatch (Henderson, … / May 16, 1936, edition 1 / Page 1
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HENDERSON GATEWAY TO CENTRAL CAROLINA TWENTY-THIRD YEAR CONGRESS SEEKING TO HASTEN RELIEF AND THEN ADJOURN Compromise on Tax Issue Offers More Complica tions for Solons, However NORMAL TAX UPON INCOMES TO CLIMB Chairman Harrison Predicts Committee Will Have Bill Before Senate by Middle of Next Week; May Use Some of Old Sums Unex pended Washington, May 16 (AP) Bent on adjourning Congress in three weeks, New Deal Leg islators sought today to smooth the way for the $1,425,000,000 relief appropriations and to compromise on the tax issue. Tho latter was the more compli cated problem. The Senate Finance Committee was putting into shape to day a tentative compromise propos al including an increase from four to five percent in the normal tax on all individual incomes. Some committeemen felt the pro posal in which President Roosevelt’s suggestion for tax undistributed pro fits would be a comparatively minor feature might be approved by the com mittee today. Awaiting Treasury estimates on a proposed compromise, which would in clude an increase in the tax rate on individual incomes, the committee dis cussed technical phases of the “wind fall” tax which President Roosevelt suggested against firms which avoid ed AAA processing taxes. Chairman Harrison, Democrat, Mississippi, pre dicted the committee would have a bill before the Senate by the middle of next week. A Senate appropriations sub-com mittee considering the $1,425,000,000 re lief fund for next year studied a pro posal to make $250,000,000 of previous ly appropriated money available to Secretary Ickes to continue making public works grants to states and municipalities. LAWYER ACCUSED BY SMITH SURRENDERS A. H. Ross Charged bv Son of Former Governor With Extortion of Huge Sums New York, May 16.—(AP)—A. H. Ro?3, Brooklyn lawyer, jointly indict ed with M. D. Krone, a private de tective, after Alfred E. Smith, Jr., signed a complaint charging extortion c urrendeved today at the offi.se of As sistant District Attorney John T. Sul livan. Smith, son of the former governor, said he was forced to pay out $12,900 after he had been threatened with ex posure because he accompanied a young woman to a West 23rd street hotel in 1933. Both Smith and (he young woman, Katherine Paclick, testified before the grand jury. Smith, a lawyer, has been estranged from his wife since 1932. Krone was placed in the line-up at police headquarters this morning and briefly questioned. Asked if the charges of extortion were true, he re plied: “The criminal allegations are not true.” Industry’s Advance Is F orging On Week - End Index Shows Continued Gains for Business Activity In U. S. New York, May 16. —(AP) —Indus- f|ial production, as measured by The Associated Press index of industrial activity, compiled today, continued t.o press steadily ahead, touching the highest, level this week since June, 1930 At 89.3 the index compares with **•l last week and 71 in the same Loriod a year ago. Electric power output again made a new high. Residential building poshed forward to a new top for the yoar at the highest spring rate since 3931. Automobile production fell back less 'ban the normal seasonal amount, causing a bulge in the index. Cotton manufacturing improved sharply in ihep ast two weeks, the recent gov ernment estimate making an upward revision necessary in last week’s total. Steel mill activity slipped fraction ally and is but slightly under the year’s peak. Total carloadings were U P somewhat leas than seasonally. - tfEMDERSQN,N.<X ttznuvtßfm Batin Bisfiafrtr Her Torch Fired Club i i Central Press Soundphoto Betty Blossom Torches held in the hands of Betty Blossom, above, a dancer, set fire to a San Francisco night club, resulting in the death of four persons and the injury of nine others. According to police, a reveler at the club attempted to take one of the torches from Betty’s hand during her dance. She raised it aloft and its flames reached up to draperies and soon the club was an inferno. Miss Blossom was slightly burned. TO DEMOcSaS THEIR BEST HOPE Breaking' Into Political Are na by Becoming Dele gates in Both Durham and Wake YOUNGER NEGROES ARE FOR NEW DEAL Older Ones More Like Elder Statesmen Among White Democrats and Are Con servative; Some Negro Leaders in Durham Coun ty Are Pointed to Dully DiNiiiiteli Bureau, In The Sir Walter Hotel, By J. C. BASK KRVIL.Ii Raleigh, May 16—The unusual in terest which the Negroes in Raleigh and Wake county are taking in Demo cratic affairs and their activity in the precinct meetings and expected activ ity in the county convention here to day, are causing both comment and some concern in political circles here. The Negro leaders frankly ad mit that their principal reason for tbi3 interest and activity in Demo cratic affairs is that they are con vinced they have nothing to hope for from the Republican party and that the “New Deal” in Washington, as well as the “New Deal” being promis ed. by Dr. Ralph W. McDonald, one of the four Democratic candidates for the nomination for governor, looks very attractive to them —more attrac tive than anything the Republicans have ever offered them. Two Negro Delegates At least two Negro delegates will sit in the Wake county Democratic convention here this afternoon, hav ing been elected as delegates in pre cinct meetings here last Saturday, while an effort was to be made by the Rev. G. A. Fisher, rector of St. Ambrose Episcopal church (Negro) to have additional Negro delegates seated from another Negro precinct. He told newspapermen here yesterday that but for the fact that the precinct meeting chairman set up his watch last Saturday and held the precinct meeting and adjourned it before the Negro delegation arrived, they would have elected several more Negro dele gates to the county convention. Fish er also predicted that at least four Negro delegates would be elected to the State Democratic Convention to be held here in June—two from Wake county and at least two from Dur ham county. The two Negro delegates elected to the Wake county Democratic conven tion are F. J. Carnage and Dr. L. T. Delaney, Negro physician, whose (Continued on Page Eight. ONLY DAILY NEWSPAPER PUBLISHED IN THIS SECTION OF NORTH CAROLINA AND VIRGINIA LEASED WIRE SERVICE OF THE ASSOCIATED PRESS. HENDERSON, N. C„ SATURDAY AFTERNOO N, MAY 16, 1936 a WAR DEBT TO U. S. Paris Indicates First Move Toward Adjustment Likely To Come From London WANT U. S. AID TO PREVENT NEW WAR “Influential” Group of Poli ticians in London Report ed Urging Resumption of Negotiations With Ame rica; Group May Enter A New Cabinet London, May 16 (AP) —The long dormant war debt issue came to life anew today with reports that strong British leaders sought a settlement with the United States. The question was revived here just a day after Leon Blum, France’s So cialist leader and premier-to-be, an nounced that he would like to see the debt “mis-understanding” erased, with Paris indicating the first move was likely to come from London. In the background of the renewed, consideration of the problem left by (the World War, informed sources said, rested possibility of gaining American assistance in any general economic organization to help avert, danger of a new war. While government diplomats scoff ed at reports that a new move was afoot for settlement. The Daily Her ald said an “influential” group of British politicians were urging re organization of negotiation with the United States. The Herald’s report of a campaign for a debt settlement, without nam ing the personalities involved, said they were conservatives, at present, outside Prime Minister Stanley Bald win’s cabinet and were likely to be included in the ministry. HOEY PINTS OUT M’DONALD’S TAXES Asks If People of State Want Them; Says Pro posals Impossible Daily Dispatch Bnreafe, In The Sir Walter Hotel: By J. C BA SKERVILL Raleigh, May 16.—The program which Dr. Ralph W. McDonald is pro posing for North Carolina, especially his tax and spending program, calling for the abollition of $10,000,000 of pre sent State revenue, but for an in crease in expenditures of from $lB,- 000,000 to $20,000,000 more than the State is now spending, should be care fully considered by the people of the State, Clyde R. Hoey, one of the can- 1 didates for the Democratic nominal tion for governor, said here today in, a special interview with this bureau. “The program being advocated by Dr. McDonald, which will require be tween $25,000,000 and $30,000,000 in new taxes if the sales tax is removed, as he promises it will be, should cause the people of the State to stop and ask if ‘lt can be done’ as Dr. Mc- Donald says it can. They have had experience with taxes on land so high that the farmers could not pay them, so that the counties or mortgage hold ers had to foreclose. They have seen the State run behind and pile up a huge debt. The people of North Car olina should give a sober, second tho ught before entering upon a wild ex periment. It is impossible to repeal all the taxes to which everybody objects and at the same time provide appro priations which everybody wants. These two extremes can wreck the State financially—and probably will if attempted. Some Alternatives. “Dr. McDonald, of course, says that those who are opposing his program have adopted the philosophy of ‘lt can’t he done,’ while the philosophy of the young Winston-Salem philoso pher is that ‘lt can be done.’ But inj order to do the things Dr. McDonald is promising to do, I contend that he will either have to go back to the tax program he proposed in the 1935 Gen eral Assembly and greatly augment it, or do one or all of the following things: “1. Put a heavy Statewide tax back on land. “2. Cripple the schools by giving them less instead of more funds than they are now getting. “3 Create a vast deficit in the State treasury. “4. End all possibility of old age pensions and old age security. “Let us take a look at how Dr. Mc- Donald proposes to raise the addi tional revenue of from $25,000,000 to $30,000,000 and see how inadequate it is. He promised a tax on the divid ends of domestic corporations in the 1935 General Assembly which he said would yield $3,000,000 a year. But Dr, Hoeer, of the University of North Car olina, after studying the proposal, said it would not yield more than $500,000 a year, or only about one-sixth of the amount Dr. McDonald said it would. So this proposal falls short tby $2,- (Contlnued on Page Four.) Veiled Warning To Japan Given By U. S. As Troops Enter China They Risked Their Lives in Vain—Hes Dead! ■■ ' ' ' ■■■ ■ ■ : ■' -- if Schoolmates of Charles Penrod, 13, of Fort Wayne, Ind., fought vainly to reach the lad, caught in the raging waters of the St. Joseph River, in time to save him from drowning. They are shown bearing the lad’s body ashore. At the right, exhausted, is Lloyd Altekruse, who led the rescue attempt. The same boys who carried the body out of the water served as his pallbearers, (Central Press) New Clash On Manchu Frontiers Moscow, May 16.—(AP) —A new in cident on the Manohoukuoan border, Soviet advices said today, broke the quiet on the Far Eastern frontiers which Russia insisted on as a pre-re quisite to an investigation with Japan of boundary disptes. An official Soviet news agency dis patch from Khabarovsk, Far Eastern, Siberia, said a Soviet border patrol Was subjected to fire Wednesday from the Manohoukuoan side of the fron tier. For more than a month previously, the border section had been calm, While negotiation® proceeded for a settlement of the Soviet-Japanese- Manchoukuoan frontier disagreement. The Soviet dispatch said a squad of 25 Japanese soldiers, taking a posi tion across the frontier from a Soviet five-man patrol, directed a persistent fire against the Soviet patrol from a hilltop. But Politicians Wonder Whether Radio Gets as Good Results By CHARLES P. STEWART Central Press Staff Writer Washington, May 16.—The virtual ly unanimous verdict of politicians in Washington is that Gov. Alf M. Lan don’s recent radio interview was a corking good piece of propoganda for himself. That is to say, it didn’t sound so well on the air, but in print it was excellent. The governor, it is agreed, knows how to write a telling speech. His delivery of it is nothing to write home about. "DIAGNOSTICIANS” PUZZLED Political diagnosticians are wonder ing— Which is preferable?— 1. A speech which doesn’t mean much, but is wonderful to listen to? ■—or— 2. A speech which has meat in it. but which isn’t very thrilling to listen to? In pre-radio days they would have (Continued on Page Four.) OUR WEATHER MAN FOR NORTH CAROLINA. Fair tonighfc -and Sunday; cool er tonight and <in north portion Sunday. Georgia Votes To Be for Roosevelt Atlanta, Ga., May 16.—(AP) — Georgia Democrats will cast their 24 votes for President Roosevelt at the Philadelphia National con vention June 23. President Roosevelt was the only entry for the State presidential preferential primary at the regis tration deadline at I p. m. (central daylight time) today. Hence, the primary arranged for June 3, will be called off. The President’s SIO,OOO entrance fee will be returned to friends who contributed it, and Roosevelt will name the slate of delegates. BOTHPMY CAMPS Borah Denounces Old Guard But Does Not Point the . Way Forward By LESLIE EICHEL IT WAS A REVEALING fight that Senator William E. Borah put up in Ohio. In this primary campaign for presidential delegates, the entire un escapable politico-economic issue was uncovered —and both sides tried to sidestep. Here was Senator Borah defying his own party, the Republican, as well as the Democratic party, to tell the truth. And here he was, too, faced with his own beliefs and not (being able to satisfy them. To those who followed this cam paign, as did this writer, there seem ed a new epoch dawning—but an epoch which we, perhaps, will not ep ter. An epoch reserved for the com ing generation. Not an easy epoch— rather, one of sharply contesting forces. Why does one write this? Well, to those of us not past middle age the arguments used in this bristling, bit ter campaign seemed aged and tot tering. The words might have been uttered by gentlemen of the first water —yet they failed to satisfy. We observed that a large part of the mul titude thought the words outworn Nevertheless, more forceful words were spoken than will be heard at either 1 major party convention Here were issues debated with unrasened fervor. It was a revealing primary c.'.mpaign to the student of political r‘*tory. Nc that it will go do-vi into hit t'.ry. but it may be one of the las*, n-' estones of a passing epoch. TURNS ON HAMILTON For a Republican to turn on Alex ander Hamilton is sacjflege. Yet here was Senator Borah asserting that Hamilton could not understand a democracy and had formulated all hi 9 ideas so that private interests would rule. And they were ruling. ‘For, Senator Borah shouted, “the oil companies, the utilities, the du- Ponts, the Browns of Ohio, the Edges of New Jersey, the Hilleses of New York are defenders of the economic system under which price fixing and monopoly flourish.” Winding up his Ohio campaign with 'Continued on Page Four.) PUBLISHED EVERY AFTERNOON EXCEPT SUNDAY. Three Dead In Gunfight In Virginia Sheriff Killed And Negro He Tried To Arrest and His Sis ter Dead Gordonsville, Va., May 16. —(AP)— , A savage gun battle that lasted far .into, the night left three persons dead today, one a white officer, the others .an aging Negro and his sister, who toppled wounded or slain into the funeral pyre of their burning cottage. Five officers and possee members were wounded, three of them so seri ously as to require hospital treatment, before a possee member crept close to the Negro’s tenant home and set it afire. The dead: Sheriff William B. Young, of Orange county. William Wells, the Negro. Cora Wells, his sister. Sheriff Young was shot to death by Wells during the afternoon as he and a state patrolman tried to ar rest the Negro on an accusation of a wealthy white woman that he had threatened her with a gun in a near by cemetery. Young was felled with a bullet in the heart, and the patrolman was wounded in the arm and leg. Other officers in the party summon ad State officers and a posse of cit izens which swelled at the height of battle to nearly 300. As machine gun fire swelled, a State officer crawled close to an out house and flung his burning shirt, which he had dipped into gasoline into the building. The fire spread irapidly to the cottage and a final burst of shooting followed. “5s i Prison Department “Bring ing ’Em Back Alive” and Firing Guards Dally Dispatch Darean, In The Sir Walter Hotel, By J. C. BASKF.RVILL Raleigh, May 16. —Even though the season for prison escapes is here, and some prisoners are escaping, the pri son department is making ar. envia ble record for “bringing ’em back alive,” and within a very short time after they escape, Acting Director Os car Pitts, of the prison division of the highway department, pointed out here today. This fact is also greatly reducing the number of escapes, Pitts said. “The two biggest factors in keeping the number of escapes down to a minimum this spring are, first, the certainty of recapture because of the reputation we are getting among the (Continued on Page Four.) 8 PAGES TODAY FIVE CENTS COPY m EAST EVENTS OF SERIOUS TREND TO ENTIRE WORLD Hull’s Statement of Last De cember Cited as Giving Attitude of United States DIPLOMATS PONDER NEW DEVELOPMENTS Group in Peiping Points To Boxer {Protocol Justifying Any Foreign Country in Bringing in Troops Only To Protect Their Interests In China Washington, May 16 (AP) Renewed attention was called today by William Phillips, un der secretary of State, to pre vious indirect American warn ings against Japanese expan sionist activities in China. Replying to press conference in quiries as to whether Japanese strengthening of military garrisons in North China was being studied by the government to determine whether a possible violation of the Boxer proto col was involved, Phillips referred newsmen to Secretary Hull’s public statement of December 5 concerning the penetration of Japanese influence below the Gerat Wall of China. He said that so far as this govern ment was concerned that statement still represented the attitude of the United States. Unusual developments in any part of China, Hunn said in the statement, “are rightfully and necessarily of con cern not alone to the government and people of China but to all of the many powers which have interests in China.” Hull referred primarily to the nine power pact to which China, Japan and the United States are signatories, .guaranteeing the political integrity of China and the maintenance of the "open door”. policy of equal commer cial opportunity to all foreign nations in China. DIPLOMATS PONDER TURN IN JAPANESE MOVEMENTS Peiping, May 16 (AP)—United (Continued on Page Four.) FOURTH DESPERADO TAKEN IN OKLAHOMA Four of Eight Who Broke from Peni tentiary in Bloody Battle Still At Large Ant’ers, Okla., May 16.—(AP)—The wounded Jess Cunningham, one of eight desperate convicts who escaped from McAlester penitentiary Wednes day, was captured today by officers at a farm home one mile south of here. Previously a young farmer living three miles west of Clayton, Okla., had been kidnaped by two of the fugitive convicts and forced to ac company the desperadoes, who were on foot, Hugh Askew, a postse leader, reported to prison officials. The trail of the convicts remained hot after the capture late last night of Claude Pugh, who came out of a small farm building hear McAlestei* ibegging for mercy, He was surround ed by a posse ordered to "shoot to kill." Pugh and Cunningham were the third and fourth of the deeperatq gang to be taken, and four remained at large, believed to be hovering in thicket hideaways in this rugged cor ner of southeastern Oklahoma. Cotton On Loan Being Withdrawn Washington, May 16. —(AP)—The Commodity Credit Corporation said today farmers have applied for re lease of 724,107 bales of cotton which had been held under 12-cent govern ment loans since 1934. The corporation began several weeks ago to permit withdrawal and sale by farmers of 1,000,000 of the total of 4,500,(00 bales of cotton held under the loans. The Senate this week adopted a re solution by Senator Smith, Democrat, South Carolina, limiting the with drawal of the loan cotton to 750,000 bales, instead of 1,000,000 as provided by the Commodity Credit Corporation. This resolution has been sent to the House for action. The Farm Administration said to day that stocks of the Cotton Pro ducers Pool as of yesterday totalled 212,315 bales of spot cotton, and 517,- 500 bales of futures contracts.
Henderson Daily Dispatch (Henderson, N.C.)
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May 16, 1936, edition 1
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