HENDERSON
GATEWAY TO
CENTRAL
CAROLINA
twenty-fourth year
DEMOCRATIC BLOCS HOOT FOR CONTROL
16 VIOLENT DEATHS
FOR N. C. CHRISTMAS
AND 500 IN NATION
Eight Duplin Negro Tenant
Farmers Drown When
Car Goes Into North
east River
ROCKY MOUNT DEATH
DECLARED SUICIDE
Occasion One of Most Ex
pensive Christmas Celebra
tions for Nation at Large;
Highways Are Crowded
With Many Home-Coming
Travelers
(By The Associated Press)
Sixteen persons died violently in
North Carolina over the Christmas
holidays, eight of them when an au
tomobile piunged through a bridge
guard 14 miles south of Wallace.
Eight Negroes, all Duplin county
farm tenants, drowned when the car
dropped 30 feet to a Northeast river
shoai and overturned.
His gun accidentally discharged and
W. G. Nixon, ten-year-old son of Ben
Nixon, hunting guide at New Holland,
near Washington, N. C., was killed
instantly.
Jake Horton, Negro, was killed
when he fell or jumped from a pas
senger train near Bonsai, in Wake
count*.
Ashley Hawkins Crisp, died of in
juries suffered in an automobile acci
dent near Pinetops. His uncle, Thomas
Crisp, was killed in the accident.
Gwendolyn Avent, 23, was found
dead in the kitchen of her home in
North Rocky Mount last night and
Police Chief O. P. Hedgepeth said it
was a “plain case of suicide’ ’by f^as.
John Guthrie, 44, a barber, was
fatally slashed in an altercation near
his shop at Hickory. Officers said
Marshall Johnson, also of Hickory,
would be given a hearing January 5
on a charge of murder.
Virgil Bentley was fatally injured
in an automobile driven, officers said,
(Continued on Page Four.)
FILMS OF BOMBING
RUSHED EASTWARD
Cameraman Took Movies of
Japanese Attack on
American Gunboat
New York, Dec. 27 (AP)—A spe
cialty chartered United Air Lines
plane is scheduled to rush the first
news reel films of the bombing of the
Ur S. S. Panay from Alameda, Cal., to
New York tomorrow, and the first
unedited print will be flown to
ington, it was announced today.
Norman Alley, Universal cameraman
who shot the dramatic scenes of the
bombing, standing on the deck of the
little American gunboat while it was
under fire, will accompany the films
on the flight.
Universal officials said the first
showing of the pictures would be
made within 24 hours after their ar
rival in New York, probably late Wed
nesday night or Thursday morning.
Alley, formerly of Laconia, N. H.,
and Chicago, was described by Univer
sal officials as a “soldier of fortune
cameraman,’’ and “one of the top men
in the profession.
North Carolina Burning
Bonds; Faces Lower Tax
Constitutional Amendment Prohibits Issue of New
Bonds Above Two-Third of Liquidation Except by
Vote of People In an Election
Dully Dispatch Bnrean,
In The Sir Wsiltcr Hotel.
Raleigh, Dec. 27. —North Carolina is
burning its bonds, not its bridges, be
hind it.
As a result, the State faces the
cheerful prospect of reducing taxes
in coming years, than raising
them, as so many other states are cer
tain to be forced to do.
As the bonded indebtedness of the
State comes down, th© sum needed
annually for interest and amortiation
■will become less and l'ess.
That the trend will continue down
ward is assured by the debt and bond
limitation amendment to the Consti
tution adopted in 1936. North Caro
lina is the only State in the nation
which has a section making this re
duction mandatory through the pro
vision that the State and all its sub
Benitemm thttht iSfsiratrh
LEASED WIRE SERVICE OF
THE ASSOCIATED PRESS.
Japan Jails Liberals
* .V mm
Kanju KatD
Kanju Kato, proletarian member
of the Japanese parliament and
chief executive of the all-Japan
council of labor and farmer
unions, rs one of 370 members of
liberal and labor groups who have
been arrested in Japan. Many
leading citizens have been seized
in what many interpret as the be
ginning of all-Fascist regime.
Oppositionistic parties virtually
have been wiped out.
Murchison
Sees Upturn
For Textiles
Returning Prosper
ity, Rising Prices
and Firmer Basis
Predicted
Washington, Dec. 27.—(AP)— Claud
ius Murchison, president of the Cot
ton Textile Institute, predicted to
day 1938 would be a year of “return
ing prosperity, gradually rising prices
and establishment of a firmer basis
of operations in the industry.”.
“The foundation for greatly increas
ed consumer buying definitely was
laid this year,” he said. Murchison
said he believed the “present down
ward trend in business would be halt
ed in a short time. Most, factors which
had a destructive effect this year on
our industry have been taken out of
the picture. We look forward to a
year with the least degree of inter
ference from legislation we have lead
in many years.”
Four factors, he said, have been re
moved as “handicaps” to the industry
during 1937. He listed them as:
House action in sending the wage
hour bill back to committee; removal
of the threat of processing taxes; in
dication the undistributed surplus
profits tax would be modified; and
elimination of the threat of wholesale
labor disturbances.
The cotton textile industry, he de
(Continued on Page Four.)
divisions must reduce their bonded
debt before they will be permitted to
in incur any new one, or sell any
bonds except by vote of the people.
Thps if the State should want to
issue $2,000,000 worth of bonds for any
purpose, it could not do so unless it
had paid off $3,000,000 in bonds the
two preceding years, or it cannot issue
them without a special election. Like
wise, if a county, city or town should
wish to issue $600,000 for streets, sew
ers or new buildings, it could not do
so unless it had paid off $900,000
worth in the preceding year, or unless
it called an election and won the peo
ple’s approval.
By compelling the State and its sub
divisions to hold all new borrowings
(Continued on Page Four.).
ONLY DAILY NEWSPAPER PUBLISHED IN THIS SECTION OF JNURTH CAROLINA AND VIRGINIA.
TAX PLAN WOULD
AFFORD RELIEF 10
SMALLERBUSINESS
Firms With Less Than $25,-
000 Earnings Would Be
Exempt from Profits
Levy
normallncome TAX
WOULD REACH THEM
Would Range from 12 1-2 to
16 Percent; Large Incomes
Would Pay Undistributed
Profits Tax of 16 to 20 Per
cent; Committee Is Agreed
Washington, Dec. 27 (AP) —'Mem-
bers of a House sub-committee said
today, they had decided to divide cor
porations into three tax groups, ac
cording to the size of their incomes.
The plan, they said, probably would
involve increasing a proposed income
tax on corporations showing profits
of between $20,000 and $25,000. It
would exempt additional firms from
the undistributed profits tax.
These groups sere t obe established:
1. Corporations with incomes of $25,-
000 or less would pay a normal in
come tax, probably of 12 1-2, 14 and 16
per cent, and no undisrtibuted profits
tax.
2. Companies with large incomes
would pay an undistributed profits tax
of 16 to 20 per cent.
3. Firms with medium-sizpd in
comes ranging up from $25,000 would
be placed in what sub-committeemen
termed a “notch.” Their taxes would
be lower than the 16 to 20 per cent un
distributed profits tax of the big cor
porations, but somewhat higher than
the levies of firms paying only the
normal income tax. ,
Eight Lynchings
For 1937 Same As
For 1936 Period
Tuskegee, Ala., Dec. 27. —(AP) —
Eight persons, all Negros, died by
lynching in 1937, the Tuskegee In
stitute department of records and re
search, reported today. The 1936 total
was also eight.
Deaths by states this year: Florida
3; Mississippi, 2; Tennessee, Alabama
and Georgia one each.
In 56 instances, the institute said,
officers of th law prevented lynchings.
Five of these cases occurred in north
ern states and 51 in the south.
The eight 1937 and 1936 lynchings
compared with 20 in 1935 and 15 in
1934.
JACKSON ADDRESS
MAY BE FORECAST
Attack on Monopoly by Assistant At
torney General May Point
to FDR Program
Washington, Dec. 27 (AP) —Criti-
cism of monopolistic profiteering by
Robret Jackson, assistant attorney
general, received widespread interpre
tation today as a prelude to a broad
administration anti-trust campaign.
Most observers expected President
Roosevelt to recommend specific leg
islation to strengthen the present anti
trust statutes. Some even have pre
dicted a congressional investigation of
ialleged monopolies.
Jackson, who has discussed the
monopoly with the President on seve
ral occasions, said in a radio address:
“It is the monopolists and those so
near monopoly as to control their
prices yho by their profiteering have
simply priced themselves out of the
market and priced themselves into a
slump.”
INSDRMIL
BATTERING MADRID
Christmas Week-End Shell
ing of Old Spanish Cap
. ital Continues
Madrid, Dec. 27.—(AP) —Spanish in
surgent artillery batteries continued
today to shell Madrid, still shaking
from a Christmas week-end bombard
ment, the worst and most prolonged
the capital had suffered in a month.
Official figures said that in the last
48 hours, 400 shells had poured into
th© city, killing eight persons and
wounding 60.
A government dispatch reported
four insurgent warships had bombard
ed Castellon and Vinaroz on the Spen
ish coast Sunday without inflicting
much damaged.
Th© shelling of Madrid followed one
last night in which two persons were
killed and 12 wounded.
Meanwhile, insurgent troops and
.(Continued on Page Fight.),
HENDERSON; N. C., MONDAYi AFTERNOON, DECEMBER 27, 1937
Americans Are Subject To
Death Penalty Regulations
Fixed By Japs At Shanghai
RIGID LAW SET UP
BY TAPS ALL OVffl
Treaty Right# of Other For
eign Powers Apparently
Involved In Regu
lations
JAPANESE TROOPS’
SHIP *S ATTACKED
Invading Army Announces
Complete Occupation of
Tsinan, Shantung Province
Capital; Objective of
Movement Across Yeilow
River
Shanghai, Dec. 27 (AP) —Americans
were made subject to the death pen
alty today for crimes against Japans
armed forces under a Japanese de
cree establishing rigid law for China’s
conquered areas.
New rules and regulations for all
persons, “including the nationals of
third powers,” in Japanese controlled
areas apparently raised the question
of the treaty rights for other foreign
powers in China.
a
ed that the measure put Americans
and other foreigners under Japanese
military law which provided death for
acts against Japan’s armed forces.
A tugboat carrying Japanese troops
was attacked by an unidentified gre
nade thrower on Soochow creek a few
haurs after the rules were promulgat
ed. One Japanese soldier was wound
ed in the hand when one of three gre
nades exploded. The spokesman said
the Japanese held their fire, depend
ing on settlement police to* arrest the
thrower.
The Japanese army announced the
complete occupation of Tsinan capital
of Shantung provinc'e, and the seventh
Chinese provincial capital to fall to
Japanese forces. Tsinan was the ob
jective of one of several Japanese col
umns that swarmed across the Yel
low river over the week-end with the
evident purpose of adding all Shan
tung to Japan’s zone of conquest.
CUBAN GOVERNMENT
LIBERATES MACHADO
All Charges Against Former Presi
dent, 111 in New York, Drop
ped in Amnesty *
New York, Dec. 27 (AP)—The Cu
ban government withdrew today all
charges against former President Ger
ardo Machado of Cuba, who had been
held by United States authorities in j
temporary custody on an extradition
warrant.
. Machado, now seriously ill in a hos
pital here, was accused in Cuba of
misapplication of funds and mass
murder.
The liberation of Machado, once
“iron man of Cuba,” was formalized
in the office of United States Com
missioner Garrett Cotter, before whom
extradition proceedings were first
brought several weeks dgo.
In the meantime, the Cuban Con
gress, with the approval of the presi
dent, passed a general amnesty for all
political prisoners, an a act which in
cluded Machado and all members of
his government.
Machado, who was president of
Cuba eight years until overthrown by
a revolution, now is at liberty to re
turn to his own country after more
than four years of exile.
Panay Loss
Is Settled
Definitely
PANAY LOSS cmfwyp
.Washington, Dec. 27. —(AP) — The
State Department reiterated today it
considered a “closed incident” the in
ternational situation arising from the
homing of the gunboat Panay, al
though the indemnity remains to be
fixed.
Officials made it plain that this
%overnmnt would watch closely to see
that Japan carries out its assurances
that there would toe no unlawful inter
(Continued on £age Five.),
COAST AGOG OVER NAVY MOVES
> n , iif
jliiip ; mm
Bluejackets load supplies In Los Angeles harbor
More mystery to the mysterious moves of the U. S. navy fleet. First
destroyers of the fleet were moved from San Diego, Cal., to Los
Angeles harbor, where sailors are seen loading supplies. Rumor has
it that it is purely a test of efficiency and speed in fleet maneuvers.
Then, however, a fishing boat, allegedly owned by a Japanese, was
seized in Los Angeles harbor with announcement that probably five
more beats would be detained. Heavy guards also wers placed
around Pacific coast naval and air bases.
War Leader Dies
,M »r. <8*""" •
v ■••••■
R llgv
NEWTON D. BAKER
SIMPLE RITES FOR
NEWTON D. BAKER
.t -
War-Time War Secretary
Died Christmas Day of
Heart Attack
Cleveland, Ohio, Dec. 27. —(AP) —
Simple funeral services will be held
tomorrow for former Secretary of
War Newton D. Baker, eulogized by
prominent Americans today as one of
the nation’s great leaders.
Arrangements called tor the body
to lie in state with a military guard
of honor in Trinity Episcopal cathed
ral tomorrow morning.
Mr. Baker died at his home here
Christmas afternoon. He had been
confined to his home by heart illness
for nearly a month. He was 66 years
old.
In Baker’s service as secretary of
war under President Woodrow Wil
son in World War days, few were
more closely linked with General John
J. Perishing. General Perishing said
today: “Mr. Baker was America’s
greatest secretary of war.”
WEATHER
FOR NORTH CAROLINA
Mostly cloudy, scattered light
rain in interior tonight and Tues
day and possibly on coast Tues
day; slightly warmer tonight and
in central and northeast portions
Tuesday.
PUBLISHED HVHKT AFTBRNOOM
EXCEPT SUNDAY.
WAGER-HOURS BILL
FOESARE HARD PUT
Labor’s Non-Partisan Lead
er Sees It As Issue in
1938 Campaign
By CHARLES F. STEWART
Central Press Columnist
Washington, Dec. 27. —Representa-
tives who voted to chloroform the
maximum hour and minimum wage
bill at the extra session of Congress
already realize that they will be em
phatically on the spot in the 1938 con
gressional elections.
Parliamentarily speaking, the bill, to
be sure, was not outright defeated. It
simply was sent back to the labor com
mittee to be rewritten. However, this
recommital practically amounted to
defeat. It is so spoken of and it was
so intended.
It was not a very good bill, for a
fact. Doubtless it was well meant, but
Continued on Pan** Five »
New Year’s Resolutions
For Business Next Year
Labor Wars Must Stop and Administration Must Stop
Persecution of Business if Recovery Is To Be Re
sumed Babson Decla res in Predictions
* »
By ROGER W. BABSON,
Copyright 1937, Publishers Financial Bureau, Inc.
ROGER BABSON’S HOPES FOR 1938
1. LABOR: That wage workers and employers will resolve to stop
quarreling.
2. TAXES: That Congress will resolve to modify and repeal taxes.
3. UTILITIES: That President Roosevelt will resolve to make peace
with utilities.
4. RAILROADS: That the I. C. C. will resolve to grant a reason
able freight rate increase.
5. BUILDING: That the building people will resolve to lower con
struction costs.
6. FOREIGN TRADE: That manufacturers will resolve to help
negotiate trade agreements.
7. CONGRESS: That politicians will resolve not to pass new half
baked “reform” or spending laws. '
8. RELIGION: That we resolve to do more for the good of the
world as a whole and try to love our neighbors as we do ourselves.
Washington, Dec. 27. —The season
for resolutions is right at hand, so I
have prepared a list of “business re
solutions” for 1938. This is not a cata
logue of trifling and annoying per
sonal habits which must be abolished.
8 PAGES
TODAY
FIVE CENTS COPY
PRESENT SPLIT IN
PARTY RANKS WILL
MM 1940
'Seriousness of Division
Among Democrats Ac
knowledged General
ly Privately
ROOSEVELT COURSE
TO DECIDE RESULT
Belief in Some Quarters Is
Fight Will Be Carried on
More Openly in Next Con
gressional Session; Roose
velt Wants His Wage-Hour
Bill
Washington, Dec. 27. —(AP) —Some
Senate Democrats forecast today that
an open battle for control of the party
would deveUop between liberal and
conservative legislators during the
coming session of Congress.
Although unwilling to be quoted tv
name, thew predicted the present di
vision would carry over into the 1940
national convention.
Seriousness of the party split was
acknowledged generally by congres
sional Democrats in private conver
sation. Most of them deplored it, but
some said they welcomed it as •%
means of bringing a realignment of
parties along more realistic lines.
Possible long-range results of the
division were outlined differently by
almost every one in discussing the
subject. Many believed that President
Roosevelt’s course during the next
three years would be the determining
•-’actor.
The belief in some quarters that the
fight would be carried on more open
ly during the next congressional ses
sion was based on two factors: the
number of controversial issues com
ing before the legislators and the ap
proaching off-year elections.
Administration friends have made
no secret of Fresident Roosevelt’s in
tention to continue his fight for wage
hour legislation, blocked earlier this
month by Southern Democrats in the
House.
FishllUs
Landon On
War Views
Washington, Dec. 27.—(AP)—For
mer Governor Alf M. Landon’s recent
endorsement of President Roosevelt’s
foreign policies brought a sharp re
buke today from Representative Fish
Republican, New York, ranking min
ority member of the House Foreign
Affairs Committee.
“Governor Landon, who knows less
than nothing about international is
sues, and amply demonstrated that
fact in th e last campaign,” Fish said,
“rushed to the defense of the Presi
dent, slamming members of Congress
without the faintest knowledge of the
situation.”
Although he asserted “all Ameri-
Continued on Page Five.*
Itfjs a list of basic national problems
which must be ironed out if you read
ers want business to start up the
(Continued on Page Four.)