HENDERSON
gateway TO
CENTRAL
CAROLINA
TWENTY-THIRD YEAR
Etopms
IN CAPITAL’S NEWS
»
Week Ended Was Crammed
With Exciting Doings as
Washington Looks
Back in Review
COMMITTEE NEARS
END OF TAX FIGHT
New Dealers Wage Last-
Ditch Struggle for Heavy
Levy on Corporation Sur
pluses; House Probers
Deadlocked Over Punitive
Measures Toward Dr.
Townsend
Washington, May 23 (AP) — A re
vised estimate of the yield of the
senate Finance Committee’s com
promise tax plan today placed the
,„lal at #500,000,000 or $600,000,000
short of the additional permanent
revenue sought by President
ltoosevelt.
Chairman Harrison, Democrat,
Mississippi, in giving this opinion,
•.aid the committee, moreover,
seems to be of the opnion that an
excise tax should be placed on
• agar to enforce the Jones-Costi
gan sugar act, and that it would
bring ill an estimated $66,000,000.
Washington, May 23 (AP) —Taxes
and Townsendism. shared headline
prominence today as the capital clos
ed a week crammed with exciting do
ings.
The Senate ,"Finance Committee
neared the end of its revision of the
tax program it received from the
House. New Dealers were conduct
ing the last-ditch struggle to equip
the government with a big stick to
force certain corporations to distri
bute large sums of dividends.
The administration men had want
ed a stiff graduated tax on undistri
buted corporation profits, but the Sen
ate Finance Committee would agree to
levy only a comparatively lean seven
percent, plus an 18 percent levy on
all net corporation income and other
tax alterations.
Some New Dealers sought today to
strengthen existing penalty taxes on
corporations which ‘improperly” ac
cumulate surpluses.
The House investigating committee
was deadlocked today over punitive
action to be taken against Dr. F. E.
Townsend, old age pension leader, who
walked out on the committee and re
fused to testify further. Some mem
bers said he should be tried for con
tempt before the House; others said
the case should be turned over to the
courts.
Townsend predicted the committee
would not “have the courage to put
this matter up to the House.”
FLETCHER CHARGES
NATION ENDANGERED
Tells Young Republicans in New York
“Band of Termites” Working
at Institutions
New York, May 23 (AP) —Henry P.
Fletcher, chairman of the Republican
National Committee, told the Young
Republicans today that “a band of
termites is working at the foundations
of our institutions while you sleep.”
In a speech broadcast from the Na
tional Republican Club, Fletcher as
serted his party was better organized,
more militant and enthusiastic than
at any other convention period in its
history.”
"The Republican party only asks
the youth of the country to remain
true to their ideals,” he said. “What
finer task can you have than this of
preserving our institutions and our
present form of government against
the insidious attacks of men who have
lost their faith in America, and their
political henchmen who are corrupt
ing the voters with public money?”
lloardßeady
To Begin Pay
For Pensions
Awaits Court Deci
sion on Injunction
Sought by Some Na
tional Railroads
Washington, May 23.—(AP) — The
Railroad Retirement Board today said
it would be ready to start paying pen
sions July 1 if the District of Colum
bia Supreme Court refuses an injunc
'•on now being sought by Class one
and other railroads.
The court hearing in which the rail
roads are seeking an injunction ar-
Kainst the pension payments and an
» xcise tax enacted at the same time,
was in recess over the week-end.
But attorneys for both sides ex
pressed hope that it would be com
pleted and a decision reached before
. (Continued on Page Two.)
UntiU'rsrm lUttlii lltsßfafrh
ss26,ooo,oooAppropriation
For U. S. Navy Is Agreed On
By Senate-House Conferees
Patsy, Irish setter owned by Mrs. William H. Erb, of Egypt., Mass., gave
birth !o a litter of seventeen puppies. All the pups are well-formed anc
getting along nicely. Mrs. Erb claims a record for Patsy.
Central Press)
Bailey Is
Certain Os
A Victory
Dally Dispatch Bureau,
lit The Sir Walter Hotel,
l!y J. C. ilASli ICItVILiL
Raleigh, May 23 —Senator Josiah W.
Bailey is “sitting pretty" with little
to worry about, largely as the result
of the tremendous interest in the cam
paign nomination for governor which
has shoved the campaign for the nom
ination for senator almost complete
ly out of the political spotlight, ac
cording to most observers here.
The preponderance of interest in
the campaign for governor has made
it difficult for the three candidates
opposing Senator Bailey to arouse op
position to him, since they cannot
get enough people to come out to
hear them to make their campaign
effective, it is pointed out. As a re
sult, they have not been able as yet
to arouse any bitter antagonism or
prejudice against him, such as is ne
cessary to win in an election, For
most observers agree that most peo
ple vote for the candidate which can
build up the most prejudice against
his opponent or opponents, rather
than for the candidate himself. But
the campaign for governor has been
so heated that neither R. T. Fountain,
David L. Strainer nor William H.
Griffin, the three opponents of Sen
ator Bailey, have been able to build
up much prejudice against hib, most
observers here agree. They believe
that Senator Bailey’s policy of staying
in Washington and writing soothing
complimentary letters to the voters
“hack home” has more than offset the
attacks made on him and his record
by Candidates Fountain, Strain and
Griffin.
Another factor regarded as being
decidedly in Senator Bailey’s favor is
the most observers feel that Foun
tain and Strain, at least, have been
spending more of their time speak
ing and talking for Dr. Ralph W. Mc-
Donald for governor than against
Bailey for tJhe Senate. Fountain’s
speeches have sounded much more
’Continued on Page Three.)
313 AMERICANS GET
SWEEPSTAKE MONEY
Each Has $2,215 Purse and 26 Have
Chance at Real Money Prizes
To Be Drawn
Dublin, Irish Free State, May 23.
(AP) —A total of 313 Americans held
winning tickets out of 710 names
drawn on 60 horses in the Irish hos
pital sweepstakes today.
Six Americans —four from New
York, one from Pittsburgh and one
from Massachusetts—drew tickets on
Pay Up, the fifth and last favorite.
The names of 21 horses remained) in
the small drum.
A total of 189 Americans drew tick
ets in the morning out of the total
of 432 drawn.
Each of these was assured $2,215,
while 26 Americans, by drawing the
favorites, have a good chance of gain
ing the additional wealth which will
come from horses which finish the
English derby next Wednesday “in
the money.”
ONLY DAILY NEWSPAPER PUBLISHED IN THIS SECTION OF NORTH CAROLINA AND VIRGINIA
leased wire service of
THE ASSOCIATED PRESS.
HENDERSON, N. C., SATURDAY ■ AFTERNOON, MAY 23, 1936
M. P. Debates On
Union Proceeds
High Point, May 23 (AP)—Meth
odist Protestants continued debate
today on the question of church
union with the Northern Methodist
Church and the Methodist Episco
pal Church, South, with three dele
gates speaking against and five for
the union during the morning.
Supporters Confident He
Will Be in Second Pri
mary With McDonald
Daily Dispatch Rureon.
In The Sir Walter Hotel.
By J. C. BASKERVILL
Raleigh, iMuy 23.—The managers
and supporters of Clyde R. Hoey in
his campaign for the Democratic no
mination for governor are more elat
ed today than at any time so far dur
ing ithe campaign. T!he(y mainftain:
that there is no longer any doubt that
Mr. Hoey will be in second place when
the votes are counted June 6, while
the more optimistic are convinced
that Mr. Hoey now has an excellent
chance to be in first place.
“I have never seen sentiment
change as rapidly as it has during tne
past week or ten days,” Mr. Hoey said
while here today. “There is a. tremen
dous change throughout the entire
State away from Dr. Ralph W. Mc-
Donald and to me. Numerous counties
which two weeks ago we conceded to
Dr. McDonald will now give me a
good majority, according to the re
ports we are getting from every hand.
There is no doubt that I will be nomi
nated.”
The more optimistic Hoey support
ers, including his managers, continue
to predict that he will be nominated
in the first primary. But the more
conservative observers here continue
to maintain that every sign points to
McDonald running first, Hoey second
and Sandy Graham third, with John
A. Mcßae a poor fourth, although the
Graham forces maintain that those
who are counting him out of the race
lare going to be badly fooled. His
backers are still confident that he
will be able to nose ahead of Hoey
between now and June 6 and get into
second place.
While the Statewide newspaper poll
conducted by 25 cooperating news
papers shows that McDonald is still
far out in front of his three other
opponents, with 47.8 per cent of the
total straw votes cast sc far, Hoey
with 34.4 per cent and Graham with
16 per cent, there is not as much op
timism in the McDonald headquart
ers the last few days as heretofore
and far less talk about McDonald
getting the nomination with a clear
majority in the first primary. Most
of the McDonald workers here now
privately admit that the most they
are expecting is for him to lead in the
first primary. They also are in almost
complete agreement that Hoey rather
(Continued on Page Two.)
102 WARSHIPS Os
VARIOUS TYPES TO
SHARE NEW FUNDS
Appropriation Is Largest in
Peace-Time History of
Nation Yet Given
by Congress
PRESIDENT GIVEN
POWER IN BUILDING
Can Order Construction) Os
Not More Than Two New
Warships if Other Navy
Treaty Signatories Begin
Building Capital Ships for
Their Navies
Washington, May 23 (AP) —An
agreement to appropirate $526,000,000
for the navy for the fiscal year begin
ning July 1 was reached today at a
meeting of the Senate and House con
ference committee.
The appropriation, largest in peace
time history, would provide for the
construction of 12 destroyers, six sub
marines and the continuance of work
on 84 warships of varying types.
Authorization for the President to
order the construction of not more
than two new battleships in the event
that other signatories of the 1930
London naval treaty begin building
capital ships also was included in the
big money bill.
Another section provides cash for
building 333 new airplanes.
D °TI2fAILS
Too Much Middle-of-the-
Road for Conservatives
or Liberals
By CHARLES P. STEWART
Central Press Staff Writer
Washington, May 23 —While Gov.
Alf M. Landon of Kansas certainly
is away ahead as a Republican pres
idential possibility (maybe even as a
probability), he hasn’t the airtight
cinch on the nomination that some
folk seem to think.
On the first ballot at the Cleveland
convention he will have more votes
than any other stingle candidate but
he will not have a majority-over-all.
He will have to scoop in the neces
sary majority from the supporters of
other candidates, on the second or
third ballot, in order to win. The odds
are that he will succeed in doing it,
but they are not very heavy odds.
If he fails to win by the third bal
lot, it will mean that there is a delib
erate combination against him. That,
in turn, will mean a deadlock. And,
a deadlock will mean that a com
promise selection w-ill have to be
made. In that event the lightning is
quite likely to strike some one whose
name has not been mentioned at all.
POSSIBLE COMBINATION
In the first place ex-President Hoov
er is dead against the Kansan. He
can’t himself be nominated but he
will have considerable influence. His
opposition appears to be pure jealousy
but there it is.
The big Republican bosses (Hilles
of New York, Roraback of New Eng
land and Reed of Pennsylvania) evi
dently are anbi-Landon. He’s too lib
eral for them. But he’s too conser
vative for the Boraih-ites. Borah per
sonaJlly (it’s obvious now that he can’t
be nominated) may not fight him but
many of his supporters will.
The G. O. P. Old Guard and the Re- |
publican progressives will not exactly
combine but that is what the effect
will be on Landon’s prospects if both
groups, though for opposite reasons,
are against him.
THOSE WHO CAN’T WIN
Then what?
Borah’s out. The jolts he has re
ceived in the primaries prove that.
The primaries also have demon
strated that Col. Frank Knox lacks
(Continued on Page Two.)
~our weather man
FOR NORTH CAROLINA.
Fair tonight and Sunday; slight
ly warmer in north and west por
tions tonight and in north por
tion Sunday.
He Found a Comet
cm
It 4
Leslie Peltier (above), garage em
ploye of Delphos, 0., and one of the
world’s leading amateur astrono
mers, recently discovered a comet
which has been named after him.
The comet is estimated to be 20,-
000,000 miles from the earth.
(Central Press)
CONI/ICI 5 FORMER
TAMPA POLICE FOR
KIDNAP-FLOGGING
Six-Man Jury Deliberates
Only Three Hours To
Reach Verdict At
Bartow, Florida
TWO OTHERS WERE
PREVIOUSLY FREED
Directed Verdict Several
Days Ago Set Them Free;
Trio of Victims Accused of
Communistic Activities
Following Political Meet
ing in November
Bartow, Fla., May 23. —(AP) — Five
former Tampa policemen were con
victed today on a charge of kidnap
ing Eugene F. Poulnot, one of three
victims who were flogged, tarred and
feathered by a mob in Tampa No
vember 30.
The six-man jury in criminal court
returned its verdict after slightly
more than three hours of deliberation
of Judge Robert Dewell’s charge that
the defendants should be acquitted
unless the jurors believed without
doubt that Poulnot was abducted for
the purpose of being secretly impri
soned.
The five convicted men are John
P. Bridges, C. W. Carlisle, F. W. Swit
zer, C. A. Brown, Jr., and Sam Cros
by.
Two others, former Police Chief R.
G. Titsworth and Special Officer Rob
ert Chappell, were acquitted by di
rected verdicts several days ago.
Poulnot, Sam Rogers and Joseph
Shoemaker —admitted socialists and
labor organizers—were arrested by
Tampa officers while they were at
tending a political meeting in a pri
vate home the night of November 30.
The officers had no warrants.
After being questioned about alleg
ed communistic activities, the trio
were released.
Just outside the police station the
three men were hauled into automo
biles and driven outside the city to
fa wooded section, where they were
stripped of their clothing, beaten, tar
red and feathered.
Poulnot and Rogers made their way
back to town, but Shoemaker had to
wait for help to be sent back to him.
Nine days later, he died in a hos
pital.
Conviction of the five carries with
it a maximum penalty of ten years
in the State Prison.
Judge Dewell deferred sentence to
day and continued in effect the $7,-
500 bond under which each of the
men had been at liberty.
KEted
Baise Says Every Section of
State Sharing in Im
provements
Dally Dispatch Bnrena.
In The Sir Walter Hotel,
Br J. O. BASKERVILL
Raleigh, May 23—Rapid progress is
being made on the county road bet
terment program in every section of
the State, Chief Highway Engineer W.
Baise said today. Reports received
from Division Engineer J. C. Gardner,
in Tarboro, show that many projects
are under way or nearing comple
tion throughout his district.
In four counties in the second di
vision, eleven projects are either un
der way or have been completed.
These include two projects in Tyrrell
county, three in Washington county,
three in Martin and three in Hyde.
Continued on Page Three.)
PUBLISHED EVERY AFTERNOON
EXCEPT SUNDAY.
PRIMARY STRUGGLE
FOR GOVERNOR NOW
BECOMING INTENSE
In “Budget Leak”?
Jff jam
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J. H. Thomas
Linked by witnesses to an alleged
“budget leak”, British Colonial
Secretary J. H. Thomas is pic
tured leaving his home in London
to attend another session of the
judicial inquiry. The inquiry
concerns rumors that a leak on
government tax proposals had
permitted certain persons to clean
up $500,000 by insuring against
a rise in taxes. Although Thomas
reiterated his innocence of knowl
edge of the leak, his resignation
from the cabinet was considered
imminent.
Central Cress
Shake-Up In
Ministry Os
Britain Seen
Laborite Colonial
Secretary Thomas
Quits in Face of
Budget Scandal
London, May 23 (AP)—The resigna
tion of Colonel Secretary J. H. Thomas
in Britain’s budget leakage scandal —
the third desertion from Prime Min
ister Stanley Baldwin’s original cab
inet-raised a probability today of a
major shake-upin the ministry.
Political sources predicted a cabi
net turn-over which would carry back
into office Sir Samuel Hoare, former
foreign secretary, who was the first
of this ministry to withdraw under
fire.
In addition to filling Thomas’ place
at the colonial office, Baldwin faced a
possibility of having to find a suc
cessor for the first lord of the admir
(Continued on Paere Two.)
iS 01P.
Business Alarmed Not At
Roosevelt but At Rising
Resentment
By LESLIE EICHEL
Central Press Staff Writer
Republicans are busy thinking up a
means of counteracting the United
States Supreme Court’s decision nul
lifying the Guffey coal act. The de
cision was more damaging to the Re
publicans than to the New Deal. In
fact, word now is going around —in
Republican circles —that it is the Su
preme Court which is “saving” Presi
dent Roosevelt from “the consequen
ces of the New Deal.” It is ranging
(Continued on Page Three.)
8 PAGES
TODAY
FIVE CENTS COPY
Four Candidates Set 49
Speeches Next Week in
State’s Bitterest
Fight in Years
RECORD VOTE SEEN
AS MOST PROBABLE
Registration Ends Through
out State With Many New
Names Added to Lists;
Comfortable Lead for Mc-
Donald Admitted by Hoey
and Graham Men
Raleigh, May 23.—'(AP) —North Car
olina’s most bitterly contested guber
natorial campaign in years increases
in intensity each week and the four
candidates today listed 49 speeches
for next week.
The primary two weeks from today
is expected to result in a record vote
of upwards of 400,000, Raymond C.
Maxwell, secretary of the State Board
of Elections, estimated.
Each of the four candidates for gov
ernor speak from one to four times
daily, and in addition, for the first
time on so wide a scale on the first
primary, scores of individuals in every
part of the State are addressing po
litical gatherings in the interest of
the various candidates.
Today was the last day for registra
tion for prospective voters unless they
became of age between now and pri
mary or election day, and thousands
of last-minute qualifiers were putting
their names on the books.
With the time for balloting coming
closer, veteran political observers, in
cluding many backing Hoey and
Sandy Graham, conceded the indica
tions were that McDonald would have
a substantial lead in the first pri
mary. The question, most said was
bothering them, was how big the Mc-
Donald lead would be, and who would
be in second place.
John A. Mcßae, of Charlotte, was
not being regarded as a serious con
tender, though some observers ex
pressed belief he was gaining strength
PACE OF INDUSTRY
SLACKENS SLIGHTLY
Off Only One-Tenth of One Percent,
However, in Associated Press
Weekly Index
New York, May 23—(AP) —The pace
of industry slackened somewhat last
week following the peak reached the
week before.
The Associated Press index of in
dustrial activity dipped to 89.2 from
89.3 in the previous week and 70.2 in
the comparable period a year ago.
Automobile output fell back more
than the normal seasonal amount, the
large number of finished cars appar
ently having some effect on produc
tion schedules.
Cotton manufacturing was a bit
lower, with the heavy inventory po
sition still hanging over the market.
Electric power increased less than
would normally be expected at this
time.
Steel mill activity pushed ahead a
bit as talk of higher prices sustained
the existing rates. Total car loadings
advanced on a sharp rise in the ship
ments of Great Lakes ore.
Probeßobed
Legion Held
For Slaying
16 in Custody in De
troit for Death Pen
alty Upon Alleged
Wife Beater
Detroit, Mich., May 23 —(AP) —Po-
lice sought today to expose the sec
ret of the robed and hooded black le
gion, which officials charge executed
the death penalty without trial upon
a non-member accused of wife beat
ing.
Jtfost of the 16 members in custody
adhered to the society’s password of
"secrecy always.” At least one, how
ever, talked vaguely of floggings and
other sinister activities, and said that
"to belong to the legion you have
to have been a member of the Ku
Klux Klan. ”
That information came from Urban
Lipps, 32 automobile factory worker.
He is one of four men said by Police
Inspector John I. Navarre to have
confessed that they took Charles A.
Poole, 32-year-old WPA worker, to a
country roadside and shot him be
cause a relative by marriage accused
him of beating his wife.
Mrs. Poole, mother of a 14-months
old baby, denied that her husband had
mistreated her.
Prosecutor Duncan C. McCrea said
(Continued on Page Two.)