HENDERSON
gateway to
CENTRAL
CAROLINA
TWENTY-THIRD YEAR
ROOSEVELT
Governments Railroad Pension Act Is Unconstitutional
NEW RULING GIVEN
GY JUSTICE BAILEY
IN DISTRICT COURT
Both the Rail Pension Law
and Its Companion Tax
Measure Are Decided
Against
OVER 130 RAILROADS
SOUGHT INJUNCTION
Others Also Joined in Suit
To Prevent Measure Be
coming Effective July 1:
Seven Percent Levy Laid
on Roads and Payrolls Un
der the Measure
Washington, June 26 (AP)
Justice Jennings Bailey, of the
District of Columbia Supreme
Court, tode-v declared the gov
ernment’s 1935 railroad retire
ment plan was unconstitutional.
He ruled that both the rail pension
law and its companion tax measure
were “inseparable parts" of a single
scheme unconstitutional under prior
rulings of the Supreme Court.
The ruling was made in a suit filed
by Class I railroads and other rail
road enterprises to prevent the legis
lation from becoming effective July 1.
This injunction suit was brought
by 131 first class carriers and 289 les
ser enterprises. They attacked both
the retirement act and its companion
revenue measure, which sought to lay
a 3 1-2 percent tax on rail wages and
an equal levy on company payrolls.
Both of these statutes were enacted
last year after the Supreme Court in
validated the 1934 retirement law,
which included both tax and pension
provisions.
The 1935 retirement act was design
ed to set up a permanent pension sys
tem for railway workers over 62 years
eld. First annuity payments under it
were scheduled to be made July 1.
May Farm
Income At
High Peak
Washington, June 26. —(AP) — The
Bureau of Agricultural Economics re
ported today that farm income for
May was the highest for that month
since 1930.
Farm income for the first five
months of this year was estimated at
$2,638,000,000, compared to $2,488,000,-
000 in the corresponding period of
1935.
The figures included cash income
from farm marketing and government
benefit payments. Os a total for the
first five months this year, the bu
reau said $2,533,000,000 was from mar
keting and the remainder from bene
fit payments.
Cash income from marketing in May
was listed at $521,000,000, compared
with $481,000,000 in April, and $483,-
000.000 in May last year. This increase
was shared by producers of all pro
ducts, the bureau said.
Brighter Day Is Coming
In The Utility Industry
More Sensible Public Attitude Toward Them Is Coming
About as Rates Are Cut and Consumption Increases;
Better Investment Than Before, Babson Says
BY HOG Kll W. BABSON,
Copyright 193 H, Publishers
Financial Bureau, Inc.
Hobson Park, Mass., June 26.—Util
ity managers are becoming more sen
sible and hopeful. The perplexing pro
t lern.s of the past three years are
gradually being overcome. The storm
of popular resentment against the in
dustry is rapidly blowing out. The
Hir*s are clearing, at least temporar
ily. Holders of power and light sccuri
-lif s now have a “breathing spell,” al
though Ihe legality of the public
utility holding company act still re
mains to be settled by the Supreme
Court.
What Is The Row About?
Os all the controversial questions of
the past three years, none has brought
HrniU'rsmt tlatlii Hisaatri;
L, 'T'u^Vv.'. V,RK SERVICE of
the ASSOCIATED PRESS.
New Search
For Safety
For Europe
Two Opposite Deci
sions Looked For,
However, From Ge
neva Discussions
Geneva, June 26. —(AP)—League of
Nations delegates, confronted with
proposed reversal of sanctions against
Italy, began a new search for collec
tive security in the League Council to
day.
Groups ,of diplomatic representa
tives in gloomy corridors expected
two opposite decisions to emerge from
the sessions:
1. Suspension of economic and fi
nancial penalties against Italy, con
demned as the “aggressor” in East
Africa.
2. Refusal to recognize officially
Italian annexation of Ethiopia, ac
complished after the occupation of
Addis Ababa by the Fascist military
forces.
The spirit through the League’s new
palace contrasted sharply with that
of last October, when 50 nations ap
proved application of the sanctions.
on Page Two )
ARABSWRECICTRAIN
AND KILL ENGINEER
Jerusalem, June 26.
wrecked a train on the Jerusalem-
Haifa-Lydda railroad line today, kill
ing the engineer and a soldier.
forth a more divided opinion than the
utility issue. Those who know all the
facts feci that the industry did need
a spanking. On the other hand, they
believe that the administration’s hum
bling process was too harsh and de
generated into persecution. Through it
all hte investing public have been the
innocent sufferers. As investors, they
put up the capital to finance the
utilities. Now, as taxpayers, they are
forced to dig down for additional
funds to destroy their original invest
ment.
Most of my friends, even among the
utilities, agree that there were ra.nk
irregularities in the industry during
the boom era. In order to eliminate
(Continued on Page Six.)
_ ONLY DAILY NEWSPAP ER PUBLISHED IN THIS SECTION OF NORTH CAROLINA AND VIRGINIA
Governor Curley Comes To Convention Town
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NOMIHATED FOR SECOND TERM
lilll y
Governor James Curley of Massacliusetts, accompanied by
James Roosevelt, son of the president, arrives in Philadelphia
and marches to the Massachusetts headquarters. Note the sign.
Tar Heels Glad At Death
Os Old Two-Thirds Rule
Daniels Recalls State Con
vention Away Back In
1926 Called for Its
Abrogation
STATE LED WAY IN
SOUTHERN GROUPS
With Convention* Virtually
Over, Members of Tar Heel
Delegation Prepare To
Start Home; Ehringhaus
Leaves This Afternoon;
Others Will Remain
Philadelphia, Pa., June 26.—(AP) —
North Carolina’s Democratic conven
tion delegates expressed themselves
as well pleased today that their long
sought rattle for abrogation of the
two-thirds nominating rule had at last
been successful.
Josephus Daniels, of Raleigh, Amer
ican ambassador to Mexico, recalled
that in 1926 the North Carolina Dem
ocratic convention called for repeal
of the century-old requirement that
Democratic nominees obtain two
thirds of the votes in their national
conclaves.
“It took ten years to win the fight,”
Daniels said, “and I am happy that
I was able to attend the national con
vents n which finally repealed this
rule.”
The North Carolinian, whose state
was one of three southern states
which voted for abrogation, said he
was opposed to the proposal that ap
portionment of delegates to Demo
cratic conventions be based upon
voters cast in presidential elections.
With the convention virtually over,
(Continued on Page Two).
OUR WEATHERMAN
FOB NORTH CAROLINA.
Generally fair, slightly warmer
tonight; Saturday partly cloudy.
HENDERSON, N. C., FRIDAY AFTERNOON, JUNE 26, 1936
$19,000 Pay Truck
And Driver Gone
Pawtucket, R. 1., June 26 (AP) —
An armored truck containing a
$19,000 payroll and its driver, Wal
ter Hussey, disappeared today
from Main street, police reported.
Bank guards who had gone into
the Rhode Island Hospital Trust
Company branch discovered its dis
appearance. Police said they be
lieved the driver had been kid
naped. /
THREATS OF SUIT
Notice Served by Asheville
Paper on N. & O. and
Winston Papers
Unity Ulspnteh Biirena,
In The Sir Walter Hotel,
By J. C. BASKERVIIiL
Raleigh, June 26.—Political circles
here are all agog over the prospect of
two newspapers and their publisher
suing two other newspapers for libel
because they published a campaign
statement by Dr. Ralph W. McDonald
one of the candidates for the Demo
cratic nomination for governor in the
second primary on July 4, which these
papers and their publisher maintain
are libelous and untrue. The Asheville
Citizen and Times Company and Don
S. Elias, one of the publishers of these
two papers, Thursdapy served formal
notice of their* intention to bring suit
for libel against The News and Ob
server in Raleigh and the Journal and
Sentinel in Winston-Salem. Because of
the publication in their editions of
Sunday, June 21, of a statement is
sued by Dr. Ralph W. MacDonald in
which he charged that the State Bank
ing Department had shown “favor
itism” to Elias and his newspapers in
the settlement of their indebtedness
to an Asheville bank during its li
quidation by the 'banking department.
Elias and The Citizens-Times Com
pany also made formal demand, as
the law requires, that The News and
Observer and The Journal and Sen
(Continued on Page Six.)
Democratic
Platform Is
Liberal One
But Nobody Bothers
Much About Them;
Observers See
Third Party Rising
By CHARLES EICHEL
(Central Press Staff Writer)
Philadelphia, June 26—Yes, the
Democratic platform will be far ahead
of the Republican platform, in lib
eral thinking. The Republican plat
form was largely taken up with de
nunciation and evasiveness on any
real problems. The Democratic plat
form naturally will uphold the New
Deal and point away.
But, ten years hence, we may he
looking hack with a cynical, tolerant
smile on the anachronism of even the
liberal platforms of today.
President Roosevelt may be con
demned, not for going too far, but be
cause he did not go far enough, or
move quickly enough.
For examjile, he used pressure to
late on a dying Congress to save the
housing bill and a dozen other meas
ures of vast importance to the wel
fare of the people. Those bills per
ished. Congress remains reactionary
at heart.
The Republicans, of course, were
against those measures, but they were
expected to be. It is misses such as
this on the part of the liberal com
mand of the Democratic party which
cause the potentiality of a third
party.
“NOT WORRIED”
Political leaders in Philadelphia as
sert they are not worried over the
candidacy of Representative William
Lenike of North Dakota on a third
party ticket.
Yet they do considerable talking in
(Continued on Page Four.)
Tenancy Is
Worst Issue
South Faces
State College, Miss.. June 26 (AP)
—Cully A. Cobb, southern divisional
director of the Farm Administration,
told a conference of rural ministers
here today that th* rural South’s
“most pressing social problem” arose
out of tenancy.
The tenant system in the South,
ho said, “traces back to slavery, re
construction, the uns and downs of
cotton, the lark of opportunity, to
the niggardliness of agricultural in
come.”
The severe fluctuations in cotton
prices from year to year, Cobb said,
hampered efforts to become farm
owners.
Cobb said that approximately 34
percent of the country’s farm popu
(Continued on Page Six.)
PUBLISHED EVERY AFTERNOON
EXCEPT SUNDAY.
Nominates
Roosevelt
| * ' j
. ’ J
John E. Mack v
John E. Mack, of Poughkeepsie, N. Y.,
former New York state supreme court
justice, nominates President Roose
velt for the presidency at the Demo
cratic national convention in Philadel
phia. Mack, a lifelong friend of the
president, is among possibilities for
the Democratic gubernatorial nomina
tion in New York.
JUDGE JINMACK
PLACES ROOSEVELT
BEFOREOELEGATES
Speaker Is Same Man Who
Nominated President
First Time Just Four
Years Ago
CALLS ROOSEVELT
SON OF WHOLE U. S.
Charges Cries of Anger
and Vicious Attacks on
New Deal Come from
Those Who Brought on the
Depression; Governors To
Second Nomination
Philadelphia, June 26. —(AP) —Pio
turing President Roosevelt as an in
spired leader in a “war of humanity
against greed,” Judge John E. Mack,
of New York, today placed the Presi
dent’s name before the Democratic
convention for renomination.
Mack, an old friend and neighbor
of the Roosevelts, spoke only 20 min
utes, pointing his address toward the
climatic statement:
“With our decks cleared for battle,
with justice and right and progress
with us, we are ready for more action
under the inspired leadership of that
great American whose name I give
you as our candidate for President,
no longer a. citizen of merely one
state, but a son of all the 48 states—•
Franklin D. Roosevelt.”
Mack, who also was the Roosevelt
nominator in 1932, dealt briefly with
the campaign issues. He asserted that
“the cries of anger and the vicious
(Continued on Page Five)
UEANIAUEI^
But Man Who Gave Up To
Finish Term Is Now Want
ed in Oklahoma
mPWT: - 1 ■■ 1
Daily OlNiMitcli Bureau,
In The Sir Walter Hotel,
By .1. C. BASKF.ItVIL.I,
Raleigh, June 26.—Jesse C. Walker
of Columbus county, the prisoner who
was convicted of murder in Pender
county 21 years ago and sentenced to
serve 30 years in the State Prison
here while already a. fugitive from
justice in Oklahoma where he had
previously been sentenced to prison
for 30 years in 1909 and who escaped
17 years ag> from the North Caro
lina prison only to return voluntarily
about a year ago and give himself up,
was paroled today by Gov. J. C. B.
Ehringhaus. But Walker, the “Jean
Val Jean,” of the North Carolina pri
soners, is not a free man and will not
be permitted to walk through the pri
son gates and into the world again,
where he worked and lived as an up
right and respected citizen for 16
(Continued on Page Five.£
o PAGES
o TODAY
FIVE CENTS COPY
HUGE TIDAL WAVE
OF ACCLAIM ROLES
OVER CONVENTION
Shouting Ranks of Dele
gates Join in Hour-Long
Demonstration When
Name is Given
JUDGE JOHN MACK
OFFERS PRESIDENT
Actual Nominating Vote
Expected Near Midnight
Tonight; No Other Name
Is Presented; G. O. P.
Chairman Refers to “Men
tal Walk-Outs” on Plat
form
Convention Hall, Philadel
phia, June 26 (AP) —A tidal
wave of oratory and acclaim
swept Franklin D. Roosevelt
today toward his second nomi
nation for the presidency.
Already enlisted under a party plat
form promising amendments to the
Constitution, “if necessary,” to meet
national problems, shouting ranks of
Democratic convention delegates join
ed in an hour-long marching demon
stration as Judge John E. Mack, of
New York, presented the name of
Roosevelt formally for renomination.
The actual nominating vote was not
expected until about midnight, day
light time. No other name was pre
sented.
Over 50 governors and party leaders
from every state lined up behind
Judge Mack to second his tribute to
the President as a “friend of the
masses.”
Both from the rostrum and in the
howling Roosevelt demonstrations on
the floor, the convention took shots
at Governor Alf M. Landon, of Kan
sas, the Republican nominee.
While the flag-waving procession
went on and on, amid showers of torn
paper dropped by the galleries, word
came from Washington of the first
Republican rejoinder to the New Deal
platform adopted last night. John
Hamilton, the G. O. P. chairman,
smilingly said he would like to know
how many “mental walk-outs’* took
place.
Negroes On
Program Is
Denounced
Philadelphia, June 26. —(AP)—A re
solution protesting against the pre
sence of Negroes on the program of
the Democratic National Convention
was adopted unanimously today 'by
the South Carolina delegation.
Adoption of the resolution, later
presented to the national executive
committee, came as an aftermath to a
second “walk-out” by Senator E. D.
Smith, delegate-at-large, when Repre
sentative Arthur Mitchell, of Chicago,
only Negro member of Congress, ad
dressed the convention last night.
The text of the resolution was not
immediately made public, but it spe
(Continued on Page Five.)
Amendment
Is Pledged
If Needed
Party Determined to
Press New Deal Is
sue in, the Nation at
All Costs
Philadelphia, Pa., June 26. —(AP)—
Pledged to seek constitutional amend
ment, if needed, to solve pressing na
tional problems, the Democrats set
themselves today for a rousing renom
ination of President Franklin Delano
Roosevelt.
A national convention all but ex
hausted already, summoned reserve
energies to demonstrate again its
loyalty to the administration. The
spark to set it off w*as the placing of
Roosevelt’s name before the delegates
by his long-time friend, Judge John
E. Mack, of New York.
Decision to allow numerous second
ing speeches, including many by gov
(Continued on Page Six.)