HENDERSON GATEWAY TO CENTRAL CAROLINA - twenty-third year 12 FEMED DEM) AS BIG AH UNER CRASHES S°nOf Rich Tacoma Doctor Kidnaped From Home 128,000 PAYMENT REPUTED PRICE OF RELEASE OF CHILD r * Boy Is Nabbed from Living Room of Home in Full View of Brothers and Sisters RANSOM NOTE LEFT WITH INSTRUCTIONS Masked Intruder Escapes With 10-Year-Old Boy Through french Windows, Place of Entry; Mask Slips From Face and Children Get View of Man Tacoma, Wash., Dec. 28 (AP) A police official who declined to allow the use of his namfe, reported today the Dr. W. W. Mattson family had been direct ed to make contact with the kid naper of Charles Mattson, ten, sometime this afternoon. Officials said the instructions were included in the note left by the kid naper when he abducted Charles from the Mattson living room last night. He indicated the note demanded $28,- 000 ransom. Os this, the officials said, the kid naper demanded SIO,OOO in old bills of small denomination (2 or $5) and the rest in old bills of SSO or over. In each case, the official said, the bills were ordered to be “old and wrin kled.” INVADER FLASHES PISTOL AND TERRIFIES CHILDREN Tacoma, Wis., Dec. 28.—(AP)—A masked, shabbily-dressed man, the first major kidnaper of 1936, hid from a swiftly-massed army of searchers today after abducting the 10-year-old son of a wealthy physician from his home, and leaving a crude ransom note. The note, reported to demand $lB,- 000 to $28,000, and apparently turned (Continued on Page Four.) Pope Losing Confidence Os Recovery “Better That I Die,” He Is Quoted Tell i Official Follow ing Hemorrhage Vatican City, Dec. 28. —(AP) —Pope Pius, despairing of his recovery after light hemorrhage in his paralyzed ■ ft leg, was reported tonight to have ; nld a church official: In this condition I cannot be the pope. It is better that I die.” Hi us, apparently the only person in the Vatican not worried over his piralytlc condition and pain, earlier had broken his own ban against re (Continued on Page Four.) New State Office Building Becomes Urgent Necessity Multiplying Agencies of Government Requiring Space; Legislature May Authorize Million Structure at Once With 40 Percent G ift by Government Daily Dispatch Bnrcnn, In the Sir Walter Hotel, lly J. C. lIASKKRVIL.L Raleigh, Dec. 28.—One of the great -1 t needs here now is a new State of fice building to provide space for both existing State agencies and new ones which have been recently creat ed. The belief in most circles here is that when the General Assembly gets here next week and sees the lack of space for legislative committees, as wel] as for State agencies, it will not he long before it takes some action to provide additional facilities. At the present time, the State is paying some $16,000 a year in rent for space in privately owned buildings here and this is expected to be increased to at least $20,000 a year by the end of this lirtthcrsmt Dathj Btspafrh ONLY DAILY NEWSPAPER PUBLISHED IN THIS SECTION OF NORTH CAROLINA AND VIRGINIA. L EA?, E1) WIRE SERVICE OF THE ASSOCIATED PRESS. Hitler—Will It Be Peace or War? World Awaits Fuehrer Adolf Hitler with his aides, and center, speaking Once more Europe is tense, wondering whether it will be peace or war. The crisis centers about the figure of Fuehrer Adolf Hitler, Germany’s dictator, ifie key point is Hitler’s decision on whether to intervene in Spain. Europe maintains a mount ing hope that Germany will avoid any step en- Drastic Tax Probable On Intanglibles Dally Dispatch Bureau, In the Sir Wnlter Hotel. By J. C. BASKEIIVILL Raleigh, Dec. 28.—A Statewide tax cn intangible property, such as cash deposits and savings in banks, notes, mortgages, stocks, bonds and possi bly even on the cash value of life in surance policies, is regarded as cer tain to be proposed in the forthcom ing General Assembly, according to reports which have been current for several weeks. A good many observers are already ceitain that such a tax may even be recommended by the Ad visory Budget Commission in its re commendations to the New General Assembly and that it v/ill he included ir. the revenue bill recommended by the commission. Those *vho have been studying the possibilities of a tax of this nature are already convinced that it would y’eld several millions of dollars a year and go a long way towards providing the new revenue needed for the vari ous social security projects, especially old age pensions. It is maintained that the counties could not get much from a tax of this sort because of the dif ficulty of collecting it, but that the State can get much from it, because it can collect it so much better. A tax on intangibles has not been (Continued on Page Three.) year, a.s a result of the new special security agencies which have already been created or which will be created ■by the forthcoming General. Assem bly. This amount would be more than enough to pay the interest and retire the bonds for a new State office build ing, it is maintained. What the State really needs is about a 12-story office building, or even a 15-story building, since there is need for that much space already, in the opinion of Commissioner of Labor A. L. Fletcher. The Industrial Commis sion, which now pay s some SBOO a month for space in a downtown of fice building, could use two floors of (Continued on Page Three.) HENDERSON, N. C., MONDAY AFTERNOON, DECEMBER 28, 1936 Germany Will Skirt War With Spain But Avoid It Six-Power Naval . Patrol Suggested London, Dec. 28.— (AP) —A six power naval patrol designed to “keep volunteers and arms out of Spain” is under consideration by British officials, informed sources asserted today. Germany, Russia, Italy and Por tugal may be invited to join Great Britain and France in forming the coastal patrols, they said. Ships of the fleets would carry foreign observers as a guarantee of impartiality in blockading ship ments of munitions and men to either side in the Spanish civil war, reliable persons declared. In authoritative quarters, the plan was described as “scrapping” ail previous efforts of the interna tional non-intervention committee and making a new start to isolate the Spanish conflict. MINE UNION GAVE FDR Um SUM But Little Is Heard of That as Huge Contribution In Election By CHARLES P. STEWART Central Press Columnist Washington, Dec. 28. —Quite a lot has been said about huge contribu tions by plutocratic folk to the last Republican campaign fuud. Less emphasis has been laid upon the fact that expenditures in the Democratic party’s behalf are said to have run to an extraordinarily snug figure in the case of at least one in terest which may fairly be described as “special”— though it wasn’t pluto cratic but proletarian. In short, Senator Agustine Loner gan’s campaign Investigating com mittee chalks up $469,668.91 as having been spent by the United Mine Work ers of America on the Rooseveltian side of the contest. ALL FROM WORKERS This total is disputed, to be sure, (Continued on Page Six.) dangering widespread peace. Above Hitler la shown, right, with two military aides, War Min ister Werner von Blomberg and Air Minister Her mann Goering, extreme left. In center, he is seen speaking. Goering ranks second in power to Hitler. Will Permit Volunteers To Join Fascist Armies and May Convey Her Own Vessels ARMED RESCUE FOR SHIP IS UNLIKELY Steamer Palos Reported To Have Carried Contraband Materials When Seized By Socialist Government Au thorities; Britain Sees Hope for Peace (By The Associated Press) Germany will skirt the edge of war with Socialist Spain without resort ing to actual hostilities, persons in au thority in Berlin indicated today. Berlin —Tne Reich probably will con tinue to permit volunteers to sail for Fascist Spain and may station war ships at a Spanish Fascist port to convoy German vessels. There will be no armed rescue of the seized freighter Palos at Bilboa, and whole units of the regular army will not be sent to the war. Bayonne, France —'Basque authori ties at Bilboa, supporting the Madrid- Valencia government, said the master of the Palos had destroyed compro mising” documents before last week’s capture, that she carried contraband of war, and that there was no ques tion of her release. London —Great Britain held grow ing hopes Spanish refusal to free the Palos would be settled through diplo matic channels. OUR WEATHER MAN FOR NORTH CAROLINA. Cloudy, probably scattered show ers tonight and Tuesday; slightly colder Tuesday. U.S.SALESTAXON TOBACCO PROPOSED AS CONTROL PLAN Hutson Makes Suggestion as Possible Way To Main tain High Prices For 1937 TWO OTHER PLANS ARE ALSO OFFERED One Is Continuation of Soil Program and Other Would Be To Supplement That With State Compacts as Authorized by Congress at the Last Session Washington, Dec. 28. —(AP) —J. B. Hutson, Federal tobacco expert, sug gested today a Federal sales tax on to bacco, combined with a subsidized crop control, as a possible way to maintain profitable prices next year. Talking informally with a national steering committee called here from eleven tobacco growing states, Hut son, AAA assistant administrator said three courses were open for possible agreement: First, continuation of the soil con servation program alone, “with as much control as possible with a bi product.’’ Second, supplement this with State compacts as authorized by Congress last session. Third, Federal sales tax program, possibly 20 percent on the first sale of tobacco, with a separate congres sional act appropriating ten percent of the Federal customs receipts to (Continued on Page Four.) GREEK STEAMER IS SINKING AT SHOALS Filling With Water Off Frying Pan Shoals, Coast Guard Cutter Reports from Scene Wilmington, Dec. 28 (AP) —The United States Coast Guard Cutter Modoc wirelessed the Oak Island Coast Guard station at Southport this morning the Greek steamer Mount Dirsys, which went aground on Fry ing Pan Shoals Saturday is filling with water. The Moaoc said she was abandon ing efforts to remove the stricken steamer as the Tug Reliance of Nor folk, was then in sight and was ex pected to begin efforts to remove the steamer this afternoon. Meanwhile, the cutter reported she had replaced some of the members of the crew removed from the steamer last niglht (when she was deemed unsafe. COLUMBUS FARMER SENT UP TO COURT Albert Shepherd, 44, Charged With Keeping 14-Year-Old Girl in Cavern Under Garage Evergreen, N. C., Dec. 28 (AP) — Albert Shepard, 44-year-old farmer of this community, was bound to Colum bus Superior Court on charges of kid naping and having carnal knowledge of Estelle Shaw, 14-year-old local girl, after a preliminary hearing here be fore Magistrate W. T. O’Berry this morning. The search for the girl, daughter of a neighboring farmer, who had been (missing since November 3s led a posse under the direction of Sheriff Herman Stanley to Shepard’s farm about two weeks ago. There the girl was found in a cavern beneath Shep ard’s garage. Officers said Shepard was there with her, but escaped into the night halfclad. Bond for Shepard was at $3,000, which he had not posted prior to noon today. parolEslsTate ON MERIT SYSTEM That Is Why Christmas Clemency by Governor Is So Very Scarce Daily Dispatch Bureau, In the Sir Walter Hotel. By J. C. BASKERVILL Raleigh, Dec. 28.—'The principal reason no “Christmas paroles’’ have been issued to prisoners in a number of years is that, under the parole sys tem in effect in North Carolina, cle mency is based solely upon merit or (Continued on Page Four.) PUBLISHED EVERY AFTHMNOON EXCEPT SUNDAY. Wreckage Sighted Atop Os Ridge Os California Hills Chiang May Give Chang Job Again Nanking, Dec. 28 (AP)—Marshal Chang Hseuh-Liang, it was believ ed today, will be restored to the army he led in the revolt against Chiang Kai-Shek and the civil cris is his capture of the premier pre cipitated will soon be forgotten. Chiang was reported already to have told his erstwhile captor he would be returned to Sianfu, rebel lion seat, and his military post. “Legally, the marsh; i is guilty of treason and should suffer a tra itor’s punishment,” a loreign min ister said, “but his release of the generalissimo t. harmed, Was en titled him to consideration.” 60 Are Dead In Air Raids From Rebels Insurgent Planes Bomb Santander, Loyalist Govern ment City in Spain Madrid. Dec. 28 (AP) —Insun- gent bombing planes attacked the northern coastal city of Santand er yesterday, killing 60 persons in a destructive air raid, the Social ist defense council reported oday. In the capital the Socialist com mand claimed advances on the western line of fortifications along the Manzanares river. Militiamen seized insurgent trenches and fortified houses on the edge of the Usera district, the council said. Capture of strategic positions on opposite sides of Madrid was reported in an official communi que. Man Admits That He Slew His Wife By Firing on Her Kenansville, Dec 28 (AP) —Dep- uty Sheriff German Powell said to day James Wilson, of Mount Gil ead, had atimit.ed he fired the shot killing his young wife De cember 19, but that the old farmer insisted it was an cident. Powell said Wilson called him to his jail cell where he has been held since the day after the shoot ing and dictated his statement to him and to the Icierk of thv court, R. Vowell Wells. Earlier, officers had quoted Wil son as saying his wife, Adele, had committed suicide. SAYS CONSTITUTION : UNCONSTITUTIONAL Nation’s Gigantic Law Is Framed Contrary to States’ Instructions By CHARLES P. STEWART Central Press Columnist Washington, ,Dec. 28 —“If ever a con stitution was unconstitutionally adopt ed it was the Constitution of the Unit ed States,” says Congressman Sol Bloom, who is direcor general of our Constitution’s sesqui-ce tennial cele bration. “You see,” explained the New York representative, “the pre-constituticnul Congress which voted the convention which framed the Constitution did not vote a convention to frame a con stitution at all. It voted a convention to revise the articles of confederation, and the states sent their delegates to the gathering on that supposition. “Insead of going ahead with the job assigned to it, the convention turned (Continued on Page Six.) 8 PAGES TODAY FIVE CENTS COPY Rest cf Plane ‘‘All Spread Out” in Valley Below Is Word 1 Brought By Searchers SEEMING TRAGEDY NEAR BUR3ANK, CAL. Meantime, Fruitless Search Goes on for Plane Missing With Seven Aboard in Utah Since December 15; ißcdies Found in Northern Idaho Burbank, Cal., Dec. 28 (AP) —United Air Lines announced today searchers had sighted the wings of an airplane in the mountains north of here, pre sumably their missing air liner with 12 persons aboard. The wreckage was seen from the air near Saugus, about 15 miles from here. Airport Manager R. D. Dickinson, flying his own plane, returned to Bur bank shortly after 10 a. m., Pacific time, telling United Air Lines execu tives he saw the ship’s wings atop a ridge. He reported the rest of the trans port was “all spread out” in the val ley below. INTENSIVE SEARCH OF WIDE ARI A CARRIED ON Burbank, Cal., Dec. 28 (AP) —Three air liners sped northward into threat ening skies today, carrying searchers fer an Unted Air Line transport with four women and eight men, the third laige passenger ship to disappear in the west this month. Twelve hours overdue, the latest ship was feared to have crashed as it approached the Union air terminal here last night from SarT Francisco. The ship’s radio was silenced after reporting it was about to land. A regularly scheduled air liner and two surplus transports piloted by TJnited’s men. hopped off a few min utes after 7 a. m., Pacific time (10 a. m., eastern standard time). They were instructed to make a de (Continued on Page Five) RECORD BIG STILL IS TAKEN IN EAST Charlotte, Dec 28 (AP)—Seiz ure of what a Federal officer termed the largest still ever taken in North Car .tina was reported today to Edward Patton, investi gator of the Internal Revenue De partment. The still, found in the Blount Creek section of Beaufort county, had a 100-h -r; t-power boiler and a capacity o. i,OOO gallons, Patton said. A total of 20,700 gallons of mash 150 gallons of liquor and 2,600 pounds of sugar was taken, he said. • Kidnap Gang Grabs Son Os Ambassador Ecuadorean, Envoy Reports Incident of Christmas Night to Government Washington, Dec. 28. —(AP)— The Ecuador ambassador, Senor C. E. Alfaro, reported to the State Depart ment today his 15-year-old son had been restored to his home after hav ing been kidnaped by three unidenti fied men Christmas night. He had been missing about five hours. The ambassador gave details to Walton Moore, acting secretary of state, bu made no request for action by this government. Moore said he assumed Washing ton police were handling the case. The envoy’s son, Olmeda Alfaro, told his father ue was strolling near (Continued on Page Six.)