HENDERSON’S POPULATION 13,873 TWENTY-FIFTH YEAR BUDGET BOOSTS PUBLIC DEBT TO NEW PEAK ********* * ****** ******** * *********** Justice Sutherland Resings From Supreme Court Roosevelt Given Chance To Select Another Justice Sutherland Advises Presi dent He Wishes To Relin quish Duties as of January 18 HE SERVED FIFTEEN years upon bench Takes Advantage of Retire ment Act of Last Year, Al lowing Him Full Pay of $20,000 Annually; Vacancy Must Be Filled by Presi dent Shortly Washington, Jan. S.—(AP) —Just:cc George Sutherland of the Supreme Court today notified President Roose velt he would retire from active ser vice on that bench on January 18. In his letter to the President, which was sent to the White House this morning, the justice said: “My dear Mr. President: ‘•Having reached the age of more than 75 years, and having held my commission as associate justice of the Supreme Court of the United States, and served in that court for fifteen years, and thus being eligible for re tirement under the Sumners act of March 1, 1937, entitled, ‘An act to pro vide for the retirement of justices of the Supreme Court,’ I desire to avail myself of the rights, privileges and judicial service specified in that arnfto that end I hereby retire from regular, active service on the bench, this retirement to be effective on and after Tuesday, the 18th day of Jan uary, 1938.” DR. DORTON AGAIN STATE FAIR HEAD Shelby Man Shows Neat Profit for State on Operation of Ex position in 1937 Raleigh, Jan. S.—(AP) —The State Board of Agriculture unanimous re-elected Dr. J. S. Dorton, of Shelby, as director of the State Fair today after being told that the 1937 exposi tion cleared $15,158.43, or $8,048.43 as cash balance and $7,500 spent on per manent improvements. Total receipts, Auditor George Ross Pou. reported, were $66,822. Last year the State got $9,983.46 as its share of the profits from the fair, then operat ed under lease. The board members discussed need of more veterinarians in the State need for a poultry marketing expert, and need for two additional chemists in the chemistry division, but had not acted on any of these this afternoon. WILSON MAN TAKES APPEAL U. S. COURT l’aul Horne Convicted in Liquor Case and Given Prison Term and Fine of S2OO Charlotte, Jan. 5 fourth United States Circuit Court of Appeals had docketed for hearing today an appeal of Paul Horne from convic tion at Wilson of “removing and con cealing” 105 gallons of non-tax-paid liquor and a sentence of three years, fine of S2OO and an order of payment of $420 tax. In the Wilson case, counsel for Horne contended evidence procured against their clients was by “illegal and unreasonable search and seizure, and without probable cause in viola tion of the rights guaranteed the de wendant under the fourth and fifth amendments of the Federal Constitu tion”. To Try Payne And Turner For Murder In Buncombe; Date Is Set For January 24 Greensboro, Jan. 5 (AP) —William ■Bill) Payne and Wash Turner, alias Jack Borden, arrested Monday night hy Federal officers in Sanford, were scheduled to stand trial in Buncombe Superior Court January 24 for first degree murder in connection with the shooting of George Penn, State high way patrolman, on August 22, last. Judge Johnson J. Hayes, of the mid dle district of Federal court, toddy Btttitersmi Daily Dtspitfrlt ONLY DAILY NEWSPAPER PUBLISHED IN THIS SECTION OF NORTH CAROLINA AND VIRGINIA. * LiKASBID WIRE SERVICE OF THE ASSOCIATED PRESS. Retires from U. S. Supreme Court .. ..•.••• ‘■■■■Yy.-.S'. JUSTICE SUTHERLAND DEATH SENTENCES” FOR FOUR UPHELD BY STAE S COURT Three of Them Scheduled To Be Gassed to Death Jan. 21 Unless Hoey Interferes TECHNICALITY MAY STAY ONE VICTIM Record Sent Back to Lower Court for Correction of Wording; Validity of New Wilson Recorder’s Court Upheld in Another Ruling by Tribunal Raleigh, Jan? 5.- gg§j§i £, ' •;:? M . President Roosevelt is pictured as he delivered his address before a joint session at the opening of Con gress. On the rostrum behind the President are Vice President John N. Garner (left) and speaker William B. Bankhead, of the House of Representatives. The President urged that business clean its own house and advocated a stronger national defense (Central Press) Rebels Push Entire Mile Into Teruel Drive Through Heavy Snowdrifts Designed to Cap ture City in 3 Days Hendaye, Franco-Spanish Frontier, Jan. 5. —(AP) —The insurgent high command announced today its heavily reinforced army had smashed forward more than a mile through heavy snowdrifts in a new drive “designed to capture Teruel within throe days.” The main advance, in freezing cold, was along the Cerda highway, north west of Teruel. Further south, the insurgents also reported important gains in a sector where two impor tant positions wer e seized during , the night. At dawn the attack —new phase in the insurgent counter offensive which began eight days ago—was pressed with renewed fury. Insurgent heavy artillery, manned by shivering gun ners, opened a heavy barrage along the 12-mile front which is the field of the civil war’s greatest battle. A Barcelona communique noted a series of attacks in the north, but said they were all repulsed. Snow was (Continued on Page Two* ALLEGED RAPIST TO BE TRIED IN STATE Charlotte, Jan. 5 (AP)— Edward Scheldt, agent in charge of the Fede ral Bureau of Investigation’s head quarters here, said today William Play er, 30, would be returned to Columbus, Ga., to face a rape charge in Rocky, Mount, N. C., Player was arrested un der a Federal statute prohibiting un lawful flight. The alleged criminal attadk occurred in October, 1936. Visa Photo Identified In Moscow Moscow, Jan. 5.—(AP)—An Amer ican today identified a passport photo graph of Ruth Marie Rubens, of New York, as that of the woman who gave her name as “Mrs. Donald L. Robin son” before disappearing in Moscow early last month. The person making the identifica tion interviewed the woman at her Moscow hotel before she vanished De cember 9. “Mrs. Robinson” is report ed under arrest. The identification was telegraphed to the State Department in Wlash- Continued on Page Two.). Japs Take Control Os Foreign Area In Captured Shanghai ? Final Step For Japanese Dominance of Captured Metro polis Is Full Censorship of News and Cable Services; Invaders Control Tcmb of Confucius Shanghai, Jan. 5. —(AP) —Japanese authorities announced today they had taken over all Chinese government functions in the international city of Shanghai and other territory occupied by the Japanese armies. A final step in Japan’s drive for dominance was projected censorship of news dispatches. Japanese officials were said to have notified cable com panies that Japanese censo’s were moving in to prevent leakage of mili tary information to Chinese. For more than a month, dispatches had been free from interference. Chi nese had maintained some censorship until the fall of Shanghai. The disclosure that censorship would be imposed came shortly after Japanese officials raised what fore ign authorities termed a “grave issue” by threatening action in the interna DAIRY FARMING BAN WOULD HURT, STATE Provision of Group Control Bill Commented on by State College Dally Dispatch Bnrenu, In the Sir Walter Hotel. Raleigh, Jan. 5. —A crop control bill which would prevent Southern farm ers from devoting land taken out of other crops to dairy farming would te distinctly a blow to North Caro lina farmers, figures compiled by State College agricultural experts show. These figures, based on records of 801 demonstration farms in 145 west ern North Carolina counties, lying largely in the Tennessee Valley area, show that dairy farms produce a much higher average “labor income” than do farms of almost any other class. The average labor income from the dairy farms on which statistics were gathered reached $9595.73 per year, a figure exceeded only by poultry farms, which produced an average labor in come of $1,020,30. Tobacco farms re ported an average labor income of $820.12; truck and fruit farms $645. Continued on Page Two.) WEATHER FOB NORTH CAROLINA. Generally fu(ir tonight and Thursday. tional settlement itself to halt “anti- Japanese outrages.” It coincided aiso with new advances by Japanese armies bent on consolidat ing control of five rich North China provinces and the lower Yangtze river valley. The Rising Sun flag was raised at Chefu, birthplace of China’s great sage, Confucius, by detachments ad vancing southward through Shantung province. Chinese were withdrawing toward Suchow, vital railway junction 180 miles north of Nanking. Chinese, however, kept up the swift-raiding tactics, which Genera? Chiang Kai-Shek has declared wert the mainsoring of resistance. Chinese from Shersri pro vince said repeat'jil detachments of the scattered former communist army had forced Japanese to bolster the garrison along the two main railways. TRADE BANS CAUSE OF PRESENT SLUMP Hull Knows It And Is Try ing To Remedy It; Ad ministration; Differs By CHARLES P. STEWART Central Press Columnist Washington, Jan. 5. —Secretary of State Cordell Hull knows what caused the recession. He does not tell what caused it. He cannot do so, for his diagnosis differs from his administration’s diagnosis. His departmental policy proves that Continued on Page Two.) BANK REPORTS ARE BEING CALLED FOR State and National Institutions Asked ,For Their Statements as of December 31 Washington, Jan. 5 (AP)—The comp troller of the currency issued a call today for the condition of all national banks at the close of business Friday, December 31. HOOD ISSUES CALL TO ALL STATE BANKS FOR REPORT Raleigh, Jan. 5 (AP) —Gurney P. Hood, State bank commissioner, is sued a call today for all State banks to report on their condition as of the close qf business# December 31;. PUBLIBHBID IVBKY AFTERNOON HXCHJPT SUNDAY. $38,528,200,0001s Debt Top Fixed In Next Fiscal Year Alabama Senator | Iflllllllllilll: llflllll f^pPm : j|||||j| Lister Hill, above member of Con gress from Alabama forth epast 15 years, was on Tuesday nominated to the United States Senate to fill the term of Justice Hugo Black, of the United States Supreme Court. Black's office has been filled since he retired last August by Mrs. Dixie Graves, ap pointed by her husband, Governor Bibb Graves. She now resigns to make way for Hill, who defeated for mer Senator Thomas Heflin and Charles W- Wiliianjs, who called him self a “dint - farmer ’. Hill will serve until the election, April 20. He is, of course, a Democrat, and is chairman of the House Military Affairs Commit tee. ROOSEVELT READY FOR GREEN SIGNAL IN NAVY BUILDING Word To Go Ahead in Vast Construction Program Expected Soon from White House leaderslmscuss PLANS WITH CHIEF Naval Men and Congress Leaders Confer at White House; Employment Reached Peak in Novem ber, Senate..., Committee Is Told; Won’t Cut Cotton Too Much Washington, Jam 5. —(AP) —White House officials indicated today Presi dent Roosevelt was a’cout ready to give the “go ahead” signal on the ex panded navy construction program. They said the President had called to the White House to discuss a pro gram to supplement that providing for eighteen new ships in the regular budget for next year, Charles Edison, assistant secretary of the navy; Ad miral William Leahy, chief of nava' operations, and congressional leaders. Edison and Leahy met briefly with the President alone and then remain ed for the conference with the con- Conticued on Page Two.) Hill Wins InAlabama Senate Job Birmingham, Ala., Jan. 5 (AP) Swept into office by a margin which mounted with increasing returns, Rep resentative Lister Hill today credited President Roosevelt and the Democra tic platform for his victory over two opponents for the Senate seat vacated by Hugo Black’s elevation to the Su preme Court. Thomas Heflin, whose frock coat Continued on Page Two.) Q PAGES O TODAY FIVE CENTS COPY Budget Message of Presi dent Sent to Congress Calling for Huge Federal Outlays CUT IN SPENDING IS UNAVAILING AS YET Net Shortage for Current Fiscal Year $1,088,129,600 and $539,000,000 for 1939 Year; Attributed To Sharp Drop in Revenue in’Re cession Washington, Jan. s.—(AP)—Presi dent Roosevelt sent Congress a bud get message today which projected new billion-dollar . Treasury deficits 'and a new public debt peak, despite estimates of lesser spending. His forecast for the 1939 fiscal year contemplated a $539,000,000 cut in government outlays, “the most im portant fact of this budget,” Mr. Roosevelt said, but conditioned the reduction on an upturn in business and national defense requirements. The President’s big volume of bud get figures estimated a net deficit of $1,088,129,600 for the current fiscal year, and $949,606,000 for the next twelve months, which he noted would be “successive declines.” The public debt, he said, would reach a $38,528,- 200,000 high on June 30, 1939. In addition, Mr. Roosevelt left the Treasury’s doors ajar to the possi bility of more spending for human relief and for armaments, “due to world conditions oyer which this na tion has no control.” The continued deficit was attribut ed to a sharp drop in expected rev enue because of the business recession. The President acknowledged, for the first time since he became chief exe cutive, h c faced less, rather than Continued on Page Two.) Gossips On Sutherland Successor Washington, Jan. S.—(AP) —Numer- ous names were mentioned today as official Washington speculated over a possible successor to Justice Georga Sutherland of the Supreme Court Among them were Solicitor General Stanley Reed, of Kentucky, and Sen ator Sherman Minton, Democrat, In diana. Some reports current at the time of Justice Black’s appointment had listed them as the last two ex cluded from consideration before Pre sident Roosevelt made his decision. Whether they have a top rank at the present time for possible appoint ment was undetermined, however. Some in government legal circles said the President might name a wo man or an economist who is not a law- Continued on Page Two.) Hospital In Carolina Is Looked For Tar Heels Hope for Eastern Project in $4,500,000 Veterans Bureau Item Washington, Jan. 5 (AP) —Inclusion of a $4,500,000 item in President Roose velt’s budget for construction of new veterans hospital facilities added im petus today to a campaign by the North Carolina congressional delega* tion for allotment of funds for a hos pital in their state. The independent offices appropria tions bill, expected to be introduced tomorrow, probably will include speci- Continued on Page Two.)