HENDERSON
GATEWAY TO
CENTRAL
CAROLINA
TWENTY-THIRD YEAR
CONTEMPT ACTION ON TOWNSEND ASKED
Senators Fail Os
Agreement Despite
Roosevelt Appeal
Secret Midday Caucus Un
able To Work Out Prob
lem of Revising New
Tax Measure
PRESIDENT’S PLAN
STATED BY SENATOR
Flat 15 Percent Tax Would
Come First, With Super
structure of Graduated Le
vies To Follow; Senate
Has Full Calendar for Day
Rushing Toward End
Washington). May 27 (AP)—An
hour’s discussion of new tax sugges
tions received last night at the White
House failed to produce an agree
ment today among Senate Finance
Committee Democrats on any plan for
revising the revenue bill.
The committee had been called to
p secret midday caucus to consider
the latest presidential tax suggestions,
received in a two-hour White House
conference last night.
One senatorial source outlined the
latest suggestions of President Roose
velt to bring the yield of the dras
tically altere ditax plan up to the
amount the chief executive desires,
as follows:
A 15 percent flat tax on all corpora
tions income, a super structure of
graduated levies on undistributed
corporate earnings, and a $15,000 ex
• mption for all corporations from the
latter.
The surtaxes on undistributed pro
fits would be 25 per cent on undistri
buted adjusted net income not in ex
cess of 25 percent, 35 percent on that
and in excess of 20, but not greater
than 40 percent, and 45 percent on
that in excess of 40 percent.
SOMETHING GOES WRONG
ON EVERY MOVE TAKEN
Washington, May 27.—(AP)—Every
time senators on the Senate Finance
Committee think they have the ques
tion of corporation taxes settled, it
bobs up again.
Emerging from a White House con
ference at which President Roosevelt
is bplieved to have indicated dissat
isfaction with the revenue yield o{
the tax bill in its present form, Dem
ocratic committeemen began a quest
today for additional revenue.
There were indications today an ef
fort might be made to boost, the seven
percent levy which the committee had
tentatively decided to place on un
distributed corporation profits.
As the committee proceeded with its
study, the Senate proper was up to its
ears with work, with leaders pressing
for action in the drive to adjourn next
week.
First on the calendar for the day
was a wind-up in the debate on the
bill to tighten Federal supervision of
commodity markets.
After the vote on that measure,
leaders planned to call up a comprom
ise bill so replace the present ocean
mail contracts with a system of out
npht subsidies for the merchant
marine. f . ; j *M|
Tomorrow the chamber may begin
debate on the $2,361,000,000 relief-de
ficiency bill.
sr:
He Can’t Very Well “Take
Walk” At Cleveland
and Seek Senate Seat
By CHARLES P. STEWART
Central Press Staff Writer
Washington, May 29.—Probaibly the
must thoroughly disgruntled individ
ua* io American politics is Senator
William E. Borah. At least he is the
vv °!i ; 1 disgruntled of any on the Re
publican .side of the fence. On the
Democratic side A1 Smith’s disgrun
*lenient may equal the Idaho states
man’s.
Whether or not Borah “takes a
W; 'lk” at the Cleveland convention
must depend on the character of the
,iß ket nominated and the platform
adopted there.
Maybe he will swallow the G. O. P’s
Ciwididatorial selections and state
ment of its policy anyway. He always
l,as . exce.pt once. It is not quite true
'bat he never bolted in campaign,
'uric. He was “off the reservation” the
first time William J. Bryan ran, but
'■von then he was not a very conspic
llo,,s Republican outlaw.
HIS INTERESTS COMPLICATED
Borah’s senatorial interests compli
cate the situation for him.
He is up for renomination and re
w . (Continued on Page Four.)
mmln Biamtfrit
ONLY DAILY NEWSPAPER PUBLISHED IN THIS SECTION OF NORTH CAROLINA AND VIRGINIA
An Alger Story
*
James T. Wilson
James T. Wilson of Kenosha,
Wis., who rose from an automo
bile mechanic to vice presidency
of the Nash Motors company, is
the new national Republican com
mitteeman from Wisconsin. Wil
son retired from business affairs
two years ago to give his full time
to civic and philanthropic affairs.
—Central Press
MiestryinT
TO RESTORE ORDER
ON MANYSTRIKES
Vast, Swiftly Growing Army
of Workers Joining
Movement Through
out Country
CLAIMS OF UNIONS
DISPUTED, HOWEVER
______ "A
Deny Assertions as to Ef
fectiveness; Seamen Pre
vented from Picketing
Mayor JLaguardia’s Home
In New York; Peace Nego
tiations Are Deadlocked
(By The Associated Press.)
Fifteen states sought today to quell
labor discords that spawned a vast,
swiftly growing army of strikers.
Peace negotiations were generally
deadlocked after 24 hours, marked by
a tightening of lines by both employ
ers and strikers and claims of union
leaders that the roll of strikers al
ready out or called out had mounted
from 30,000 to 45,000.
Hundreds of farms and factories
were affected from coast to coast.
Employers generally challenged the
union claims of the effectiveness' of
the strike. Settlements were reached
in only isolated cases affecting a neg
ligible number of workers.
At New York police intervened ear
ly today to prevent six striking sea
men from picketing the home of
Mayor F. H. Laguardia.
This followed an unsuccessful at
(Continued on Page Four.)
QUEEN MARY SAILS
FOR UNITED STATES
Southampton, England, May 27
(AP) —The steamship Queen Mary,
Frcat Britain’s mightiest ship, sailed
at 4:34 p. m., today for New York.
MOB FAILS TO GET
NEGRO GIRL KILLER
Altus, Okla., May 27.—(AP)—A 19-
year-old Negro girl, arrested after the
fatal shooting of a white man, was
held in a neighboring town today
after officers twice repulsed a crowd
of 200 that had advanced on the local
jail, with the victim's widow in the
lead.
No charges have been filed against
the girl, booked as Olivia Gardner.
Deputy Sheriff E. O. Rollins said she
confessed shooting S. E. Harlan, 32-
year-old WPA truck driver, in self
defense after a fight
LEASPID WIRE SERVICE OF
THE ASSOCIATED PRESS.
HENDERSON, N. C., WEDNESDAY AFTERNO ON, MAY 27, 1936
MORE ARRESTS OF
NEAR ATJETROIT
Examination of Dozen Al
ready Held Adjourned
To Tuesday To Await
Developments
DEEP CONNECTIONS
OF SOCIETY TALKED
May Have International
Aspect and Be Linked
With “Black Shirt *”
Abroad; Woman’s Auxil
iary Members Are Pledg
ed to Follow Superiors
~ Detroit, Mich., May 27. —(AP) —The
examination of 12 members of the
black legion on charges of kidnaping
and slaying Charles Poole was ad
journed today until next Tuesday
after Prosecutor Duncan C. McCrea
had predicted additional arrests.
Three witnesses had told of identify
ing Poole’s bullet-pierced ihody before
adjournment was taken.
McCrea said much of the evidence
would be long and that all of it would
have to be duplicated if additional
arrests were made.
FAR REACHING CONNECTION
OF ORGANIZATION HINTED
Detroit, Mich., May 27.—(AP)—
Twelve manacled men accused of the
“black legion execution’’ of Charles
A. Poole, were brought into common
pleas court for examination on kid
naping and murder charges shortly
after Representative Dickstein, Dem
ocrat, New York, had demanded that
Congress investigate terroristic ac
tivities of the masked hand.
The court room was crowded as the
group was led in from the jail where
they have been held since their ar
rest last Friday brought to light the
existence of the secret Vigilante so
ciety, with a claimed national mem
bership of 6,000,000.
Dickstein, who proposes that a con
gressional investigation be set in mo
tion along with those now being di
rected by Michigan state and county
officers, told newsmen in Washington
that he sought to learn if the black
legion has “international connec
tions.” He said he had ibeen informed
that the black legion is identical with
the “black shirts,” an organization in
vestigated last year by a House com-!
mittee. i
Declaring that it is apparent that
many members of the black legion
'joined through fear, Attorney Gen
eral David T. Crowley, left Lansing,
for Detroit today to make plans for
calling a grand jury here to investi
gate the numerous crimes, and mis
demeanors attributed by detectives to
the black legion.
One phase of the inquiry here con
cerned a woman’s auxiliary of the or
ganization, whose members may be
pledged to vote in any way required
by their superiors.
Four Dead
From Guano
Plant Fumes
V. C. C. Plant At
Selma Scene of
Frightful Tragedy;
Inquiries Begun
Selma, May 27 (AP) —A fourth man
died today from breathing poisonous
gas fumes at the Virginia-Carolina
Chemical Company plant here Mon
day as three investigations of the
cause of the accident got under way.
Officials of the company came here
last night and started their own in
uiry. Forrest H. Slhuford, head of
the division of inspections and stand
ards of the State Department of La
bor, started an inquiry this morning,
and Coroner E. N. Booker, of John
ston county, sai dhe would investi
gate the deaths this afternoon, though
he believed they resulted “purely from
an industrial accident.”
Lem Terry, 52-year-old Selma man,
formerly of Charleston, S. C., died
shortly after noon at the Johnston
county hospital at Smithficld. Other
dead were Charles Runham, Alfred
Cooper and Julius Austin, all of
Selma.
Hospital nurses said four others
breathed the poison fumes white
cleaning a vat were “doing all right."
G. W. Missell, of Charleston, S. C.,
ninth man injured, was reported at
Rex hospital in Raleigh this after
noon to be “getting along fine.”
BEAT TO DEATH BY SECRET “ARMY”!
tfe®”***'*' ' v 'JfwPy '' ~' < ***^**+>~~.
' mmm
Ray Ernest Paul Every
Continuing their investigation into activities of the Black Legion,
secret vigilante society, Michigan authorities held Ray Ernest, left,
a guard at the Southern Michigan prison at Jackson for arraign
ment on a charge of carrying concealed weapons. Ernest denied
any connection with the reported flogging of Paul Every, right, also
a prison guard who died April 14 of what physicians pronounced
heart disease and diabetes. Every’s wife previously had told Prose
cutor Owen Dudley of Jackson county that her husband was flogged
because he tried to withdraw from a secret organization headed by
Ernest. Meanwhile, in Detroit, Prosecutor Duncan C. McCrea said
murder warrants would be issued for seven men present at the
“execution” of Charles A. Poole, WPA worker, who reputedly was
-hot to death by members of the Black Legion on reports Poole had
beat hi. wife. The wife denied her husband had ever beat her.
—Central Pres *
County Voting Strength
Shown In Ballot Figures
To Be Printed Tomorrow
New Column Is Herewith P resented Showing County’s
Percentage of Total State Vote in 1932 and Prob
able Vote to Be Cast in Primary Next Week
By C. A. PAUL
(Copyright, 1936 by Daily Dispatch
and 24 Cooperating Newspapers)
The relative voting strength of each
of the State’s 190 counties is a factor
which will play a prominent part in
tomorrow's statewide tabulation, the
fourth, in the newspaper poll on the
Democratic governorship race being
conducted by Tlhe Daily Dispatch and
24 cooperating newspapers.
In the table accompanying this ar
ticle the 100 counties and their voting
strength, as related to the whole state
and based on the vote for governor,
in the first primary, 1932, are listed
The percentages are based on the pri
mary and appear in the first column
opposite the counties. The figures ap
pearing in the second column and un-
HOEY EJECiSHr
Has Not Been Vocal but
Will Be on Election
Day, Managers Say
Dally Dispatch Bnrenn,
In The Sir Walter Hotel,
By J. C. BA SKERVILL
Raleigh, May 27.—Confident that
more of the women of the State are
going to vote for Clyde R. Hoey for
governor in the Democratic primary
June 6 than for any of the other can
didates, the Hoey managers believe
that the special radio speech which
Mr. Hoey will make Thursday morn
ing at 10:30 to the women of the State
will help great ly to bring the women’s
vote together and solidify it. They are
convinced that there is a tremendous,
(Continued on Page Five.i
~OUR WEATHER MAH
FOR NORTH CAROLINA.
Cloudy tonight and Thursday;
slightly cooler in I (north and west
portions Thursday.
der the heading, “Number of Votes,”
are estimates of t)he number of votes
to be cast in the first primary this
year, to be held Saturday, June 6. and
are based upon the percentages in the
first column, after election officials
and others had estimated the total
vote to he cast in the first primary
to be 400,000 for the State as a whole.
The County’s Vote
The figures opposite your county,
then, give the relative importance of
it in the voting. In tomorrow’s state
wide tabulation these figures will be
used to "weigh" the vote, so that
counties returning heavy percentages
of straw votes will not make the poll
top heavy. By the same means, that
(Continued on Page Two )
BAILEY REPLIES TO~
CHARGESBY MAIL
Senator Enumerates New
Deal Measures to Which
He Has Given Vote
Dally Dispatch Bnrean.
In The Sir Walter Hotel,
Rt 4. P. BASKERVILL
Raleigh, . May 27. —The campaign
by-mail which Senator Josiah W.
Bailey has been and still is conduct
ing from Washington without leaving
his duties in Congress and without
making any campaign speeches, is
proving unusually effective and will
result in his renomination in the first
primary, his supporters here are con
vinced. The fact that he has remained,
on the job in Washington while three
opponents have ibeen conducting a
vigorous campaign against him, to
which he has not replied either thro
ugh statements to the newspapers or
in public speeches, has gained Sena
tor Bailey the admiration of many
who formally had not been his en
thusiastic supporters, his friends here
say.
But Senator Bailey has not been
sitting quietly in Washington, as some
think. He has been sending out thous
ands and thousands of letters direct
to the voters informing them of his
record nnd replying to charges made
against him by his opponents. In the
most lecent letter Senator Bailey has
sent out, he has outlined his record
on the various farm acts, labor acts
and the recovery and reform acts as
(Continued on Page Five.)
PUBLISHED EVERY AFTERNOON
EXCEPT SUNDAY.
Committee Okays
Huge Relief Fund
Washington, May 27--(AP)—The
Senate Appropriations Committee
today approved a relief appropria
tion of $1,425,000,000 to be turned
over directly to President Roose
velt with authority for PWA to
use an additional $300,000,000 to
carry on heavy construction.
Lawyers To
Get Million
In Will Case
Winston Trio Reap
Huge Harvest On
Libby Holman’s
Baby’s Money
Winston-Salem, May 27 (AP)—
Bennett Pilokoff, William Graves
and Wallace McLennan, attorneys
for Z. Smith Reynolds, infant son
of the late tobacco heir, are en
titled to collect more than $1,000,-
000 in fees, it was decided in su
perior court here toaay.
The fee, believed here to be the
largest ever collected for a single
case in North Carolina, was set
by Judge Wilson Warlick, upon
petition of the three attorneys,
who yesterday prayed the court to
set a “reasonable” sum for their
services. Judge Warlick ruled the
child’s lawyers were entitled to
1 percent of the net inheritance
of the infant.
Under terms of the so-called
family agreement, which was
reached after court fights in two
states, Libby Holman’s baby will
receive approximately $7,600,000
of the tobacco fortune. A suit for
death taxes now being resisted
by the heirs, if successful, may re
sult in cutting down the net es
tate.
American Winners
Ge,t $3,304,780 In
Irish Race Money
Dublin, Irish Free State, May 27.
(AP) —Residents of the United States
who bought Irish hospital sweep
stakes on the Epsom Downs today
won approximately $3,304,780.
They held among them 20 tickets on
the three horses which finished the
race “in the money.”
This one sum shows the United
States to ave won more than 50 per
cent of the total prize money, an
nounced by the sweepstakes commit
tee as approximately $6,266,875.
Epsom Downs, England, May 27
(AP) —Mahoud and Tak Akbar, own
ed by the Aga Khan, ran one-two in
the 153rd running of the English
derby before an estimated crowd of
500,000 today. Tankerton, owned by
Mrs. J. Shand, was third.
Jobs Near
1929 Peak
With NR A
New York, May 27.—(AP) —On the
first anniversary of NRA’s death,
many industrial leaders asserted em
ployment was nearing the 1929 level,
with improved wage and hour scales
under NRA’s death being maintained.
Their views were made public to
day by George A. Sloan, chairman of
the Consumers Goods Industries Com
mittee, and former president of the
Cotton Textile Institute.
“American industry generally ha,3
given an inspiring example of its
ability to maintain and improve wage
and hour standards,” said Sloan.
Paul S. Willis, president of the As
sociated Grocery Manufacturers, one
of a dozen leaders whose opinion was
given, said “our industry is employ
ing 15 percent more people than in
1929.”
A spokesman for the steel industry
said the minimum wages and hours
prescribed by the NRA code have
been maintained.
Walter C. Teagle, president, said
the Standard Oil Company of New
York now employed more men than
in 1929, and had made no change in
the hours or. wages provided by the
code.
For the automotive industry, Al
fred Reeves, vice-president of the Au
tomobile Manufacturers Association,
said it was employing about the same
number as in 1929, and wage rates
were about the same.
8 PAGES
TODAY
FIVE CENTS COPY
HOUSE COMMITTEE
CITES TRIO IN ITS
VOTE TO PROCEED
Rev. Clinton. Wunder and
J. B. Kiefer Named in
Request Made To
House Membership
ALL HAVE REFUSED
TO GIVE TESTIMONY
Attorney for Founder of
Movement Also Declines
To Honor Committee’s
Subpoena, But no Action
Is Taken; Townsend Him
self Had “Walked Out”
Washington, (Mlay 27. — (AP) A
House investigating committee today
voted six to two to recommend to the
House that Dr. F. E. Townsend and
two of his old age pension organiza
tion aides be cited for contempt and
the case turned over ta the United
States district attorney.
The committee recommended that
the Rev. Clinton Wunder, of New
York, and J. B. Kiefer, of Chicago,
be cited with Dr. Townsend for their
failure to appear for examination as
ordered in subpoenas.
Representatives Tolan, Democrat,
California, and Collins, Republican,
California, voted against the contempt
citation recommendation. They also
voted against referring the case to
the Federal court, in stead of trying
it in the House.
Dr. Townsend, founder of the move
ment to pay S2OO per month from the
Federal Treasury to every one past
60, “walked out” on the committee
several days ago after he instructed
Kiefer, Wunder and other assistants
to join him in refusing to answer the
investigators’ questions.
No action was taken against Sheri
dan Downey, attorney for Dr. Town
send, who was summoned as a wit
ness last night and answered with a
defiant letter to the committee.
Washington, May 27. —(AP)—Chal-
lenging “punitive action,” Sheridan
Downey, counsel for Dr. F. E. Town
send, today advised a House investi
gating committee, “I shall not honor
your subpoena to appear for examina
tion.”
“Like Dr. Townsend, I challenge you
(Continued on Page Two.)
onwlldinfwtion
Some Forecast It, Others
See Contraction; Utility
Bill Had Joker
By LESLIE EICHEL
Central Press Staff Writer
AN ADVISORY Investment service
advises:
“Credit inflation or monetary in
flation, prices of both commodities
and securities will rise. The chances
are that we will have both currency
inflation and credit inflation. But the
latter will come, anyway.
“Colossal expansion possible: The
10 billions of gold in the United States
can be expanded to a grand total
available credit of 230 billions! This
compares with 55 billions at the peak
of 1929. Within a few years you are
(Continued on Page Two.)
Farm Body
Asks Plank
Both Sides
Washington, May 27.—(AP)—Farm
organization leaders today predicted
special attention would be given to
the agricultural tariff question of the
platform committees of both national
conventions next month.
Fred Brinkman, Washington repre
sentative of the National Grange, said
his group would appear before both
Democratic and Republican National
Convention committees to protest a
gainst present methods of handling
reciprocal agreements.
The Grange will urge a farm plank
calling for preservation of the Amer
ican market for the American farmer,
Brinkman said, and for the repeal of
the “most favored nation’ clause of
the reciprocal trade agreement pact.
However, it was indicated in some
quarters that leaders of the American
Farm Bureau Federation might sup
port the administration policies and
urge both Democrats and
to retain the present plans.