HENDERSON’S POPULATION 13,873 TWENTY-FIFTH year PRICE-FIXING FOR , COAL ENJOINED BY OBDERSOF COURT Temporary Injunction Re lates to Fuel for Locomo tives from Illinois; Indiana seven COAL FIRMS JOINED IN APPEAL prices Fixed Termed Dis criminatory, Esp e cia Hy Since No Allowance Is Made for Differentials in Grades Mined; Arguments Heard Last Week Chica-o. Feb. 17 (AP)—The United States Circuit Court of Appeals en oined the National Bituminous Coal Commission today from enforcing certain parts of its price-fixing order on railroad locomotive fuel. The temporary injunction was asked hv seven coal companies claiming to have an investment of $23,100,000 in Illinois and Indiana. They attacked the price schedules as “confiscatory,” an d asked that general price sche dules be vacated, or that section np pjying to Indiana and Illinois prices on locomotive fuel be set aside. In asking relief, the six Illinois and one Indiana cual companies termed the prices discriminatory, especially since no allowance had been made for differentials in the grades of coal mined in southern Illinois and other Illinois and Indiana districts. The injunction was issued by Judges Evan A. Evans, Will M. Sparks and J. Earl Major. The court heard argu ments last week. A memorandum of the court setting forth reasons for the order was not available immediately. FRED BEAL TAKES DUTIES IN PRISON Raleigh, Feb. 17 (AP)—Fred Beal, now No. 34722 in State's Prison, went through the regular penal routine for new prisoners today. Deputy Warden John Bray said Beal, was being treat ed just as any other convict since the former labor organizer surrendered yesterday to serve a 17 to 20 year pri son term imposed nine years ago when Beal was a communist strike leader at Gastonia. Beal was convicted of conspiracy in the slaying of Police Chief O. F. Ader holt of Gastonia. Two Racket Chiefs Get Long Terms New York, Feb. 17.—(AP)—William J. Graham and James C. McKay, wealthy Nevada gambling czars, to day were sentenced to serve nine years in prison for mail fraud and conspiracy in a $2,500,000 bunco ring, which operated on a nationwide scale. Each was fined SII,OOO. Justice Willis Van Devanter, presid ing in Federal district court, gave the two men 25 days to go to Reno and settle their business and family af fairs, and bail was increased to $25,- 000 each. They had been free in $lO,- 000 bail before the trial. Boies Heed, of Phoenix, Ariz., and Allen Comer, of Sioux City, lowa, two other defendants found guilty with McKay and Graham last Saturday, were sentenced to serve five years. Heed was fined SBOO, Comer S9OO. A od into the rea r of a southbound fr eight train Continued on Page Biuxhersmt tint hi Dtsnafrh L THlAqffi-nI ERVICB OF THE ASSOCIATED PRESS. Japanese Order Troops Not To Invade District U. S. Marines Defending Japan Naval Parity? W Hi hr. Representative Hamilton Fish • • • attacks naval program Appearing as a witness before the house naval affairs committee holding a hearing on President Roosevelt's naval program, Rep resentative Hamilton Fish (R.), of New York told the committee that it was not Japan but Amer ica and Britain that broke up the 1936 arms conference in which Ja pan sought naval equality. “Why can’t we give Japan parity with us unless we are aiming bo police the world?” Fish asked. —Central Press STATE’S SPENDING EXCEEDING INCOME But Cash Balance in All Funds Is Still In Excess of $21,000,000 Daily Dispatch Bureau, In The Sir Walter Hotel. Raleigh, Feb. 17.—The state spent much more money than it collected in January, but at the close of the month still had more than $21,000,000 in it 3 treasury. The funded debt stood at $155,466,500. Only the highway fund showed a bigger balance at the end of January than at the beginning, as disburse ments through the general fund and special funds, other than highway, ex ceeded collections by large margins, according to the combined statement of cash receipts and disbursements just issued by the Auditor’s and Treasury’s Departments. There is no immediate danger of the State’s going broke, however, as shown by its cash balances of $5,118- 737.29 in the general fund, $9,814,068.- 46 in the highway fund and $6,449,- 306.88 in all other special funds —mak- ing a combined total of $21,382,112.63. The report showed that since the beginning of the current fiscal year. July 1, 1937, the State’s disbursements have slightly exceeded its receipts; but not by any dangerous or threaten ing margin. The general fund, for example, showed a balance on July 1, 1937, of $5,231,300.10, only $112,562.81 more than the January 31, 1938 balance. The highway fund, on the contrary, not only increased its balance dur ing January, but showed more cash on hand at the end of last month than was in the treasury on July 1, 1937. Figures for beginning of the fiscal year were $8,589,866.36, or $1,224,202.10 less than the balance as of January 31 1938 The special fund balance of $10,515- 935.59 as of July 1, 1937, had dropped $4,066,628.71 in the seven months pe- in all the combined statement of receipts and disbursements appeared to reflect a healthy state of finances in North Carolina, with excess of dis bursements over receipts for January only such as can be expected from month to month. The actual disbursements for Jan uary were $4,299,262.55 from the gen eral fund, $1,333,356.24 from the high way fund, and $7,088,032.61 from spe cial funds. . Receipts for the same period were $3 027,509.70 for the general fund, $4,- 766,701.02 for the highway fund and Continued on Page Two.) SHARP ADVANCE IN COTTON AT MIDDAY Prices 15 to 18 Points Net Higher as May Goes Above Nine Cents Figure New York, Feb. 17. —(AP) —Cotton futures opened six to nine points higher on signing of the farm bill, higher foreign markets, and trade and foreign buying. May sold up to 8.98 shortly after the first half hour, when the list showed net gams of 9 to 11 points. May advanced above nine cents and around midday was 9.04 when the list was 15 to 18 points net higher. _ ... ■*— ONLY DAILY NEWSPAPER PUBLISHED IN THIS SECTION OF NORTH CAROLINA AND VIRGINIA American Soldiers Have Turned Back Nippon Forces Four Times in Their Efforts CHINESE REiTaRMY REPORTS ADVANCES Guerrilla Forces Also Join In Seizure of “Every Sta tion” on 75-Mile Stretch of Peiping-Hankow Railway; Road Is Feeder Line for In vaders Shanghai, Feb. 17.—(AP)—United States Marine headquarters announc ed today Japanese army authorities have forbidden Japanese patrols to encroach on the United States defense sector» of Shanghai’s international settlement. American Marines have turned back Japanese arms patrols four times when they tried to enter the sector to “supervise” Japanese there. Meanwhile, Chinese red army troops and guerrilla units, Chinese reported, have captured every station along a 75-mile stretch of the Feip.ng-Han kow railway behind Japanese lines in North China. Japanese have used the line to feed reinforcements and supplies to their troops in Honan province, and trying to drive south across the Yellow river to cut China’s Lunghai railway. Chinese said the communist and guerrilla troops had taken all Peip ing-Hankow stations between a point 150 miles north of Changte, and the capital of Hopeh province. Japanese units attempting to push south of the Yellow river were sup ported by war planes which bombed China’s longest steel bridge north of Chenchow to cut off the retreat south ward of Chinese facing powerful me chanized forces. Food Is Carried 400 Snowbound In Tahoe City, Cal. Tahoe City, Cal., Feb. 17.—(AP) —Tahoe City’s 44)0! snowbound men, women and children feasted today on fresh vegetables and meat, flown from San Francisco to relieve a diet of canned goods and, in the case of at least one man, horse flesh. Five hundred pounds of food stuffs were dropped on the golf course last night from a plane after a flight sponsored by a San Francisco newspaper. There was plenty of canned foods, but Carl Bechtold, inn proprietor, said a horse had been killed for its meat. Snow 20 feet deep in some places had closed roads leading into the Tahoe district ten of the past eleven days. SEX SLAYER KILLED BY MEXICAN TROOPS 30 Soldiers Take Youth From Tia juana Jail and Execute Him In Hilltop Cemetery Tiajuana, Mexico, Feb. 17. —'(AP) —A detachment of 30 soldiers was re ported early today to have marched on the Tiajuana jail, seized a former comrade, Juan C. Morales, 24, accused sex slayer of little Olga Comacho, 8, taken him to a hilltop cemetery and executed him with a volley of rifle bullets. Soldiers made the traditional Mexi can explanation that Morales was shot while attempting to escape. It was a startling climax to four days of wild excitement, rioting turn ing and bloodshed that followed the ravishing and’ slaying of the little girl. It forestalled further disorders. Increase in 1937 Over 1936 Shown in State College Statistics College Station, Raleigh, Feb. 17. North Carolina farmers received near ly $26 000 000 more from the sale of tlieir principal farm crops in 1937 than they did in 1936, Julian Mann, extension statistician at State College revealed today. Basing his statement on a report just issued by the Bureau of Agricul tural Economics, Mann pointed out that Tar Heel farmers sold their money crops for $196,587,000 in 1937. A year earlier the same crops brought $170,691,000. Government payments for participa tion in the Agricultural Conservation program did a swift upswing last year in this State. In 1936 the payments amounted to $4,302,000. Last year Fed- Continued on Page Two.), HENDERSON, N. C., THURSDAY AFTERNOO N, FEBRUARY 17, 1938 publish*® piVB CENTS COPY Flying Fortresses Make Mass Flight to Buenos Aires |< : rnifririffllHii f • • • • m : '+.•• • y • • • ‘ • •v* :• !■ •. •• •. > U. S. navy bombers in flight The U. S. navy makes another interesting experi ment-sending six large bombers in mass flight from Langley Field. Va.. to Buenos Aires, to par- Warns Broadcasters Senator Burton K. Wheeler • • . “keep radio free** In a speech before the National Association of Broadcasters in Washington, Senator Burton K. Wheeler of Montana, chairman of the senate interstate commerce committee, warned that radio “must be kept free from preju dice, propaganda and obscenity.** —Central Press < Smandsmoak M Governor Announces He Does Not Plan To Inter vene In Executions Raleigh, Feb. 17. —(AP) —Governor Hoey announced today he did not plan to intervene to save either Milford Exum, of Wayne county, or Edgar Leroy Smoak, of New Hanover county, from execution at State’s Prison to morrow morning. Exum will be the first white man in some years to be put to death in North Carolina for the murder of a Negro. He was convicted of the slay ing of Jim Williams, a Negro basket maker. Smoak was sentenced to die for the poison killing of his daughter, Annie Thelma Smoak. The first execution, Deputy Warden John Bray said, probably will start at 10:30 a. m. It has not been deter mined which man shall die first. Smoak was first sentenced to die April 23, 1937, with no hours being set in his judgment. An appeal to the Supreme Court, which he lost, result ed in the delay of the execution. Exum was sentenced to die between 10 and 2 o’clock November 12, 1937, and the hours stand as a limit for to morrow. He also lost an appeal to the high court. TWO CANDIDATES FOR JUDGESHIPS QUALIFY Judge Frizzelle Pays His Fee And Is Without Opposition; Char lotte Man Files Raleigh, Feb. 17.—(AP)—Two can didates for superior court judgeships, William H. Bobbitt, of Charlotte, in the fourteenth, and Judge Paul Friz zelle, of Snow Hill, in the fifth, filed with the State Board of Elections to day to enter the June Democratic primary. A. V. Carter, of Mount Airy, filed in the five-sided race for the solicitor ship of the twenty-first district. Judge Frizzelle has no announced opposition. WEATHER FOR NORTH CAROLINA. Mostly cloudy and unsettled, possibly scattered rain Friday and in east tonight; slightly warmer tonight and in east Friday. Six Huge Army Bombers Near Lima After Flight Non-Stop From Florida Cross Canal Zone in Early Morning and Later Re port Position 400 Miles South CROSS CARIBBEAN IN ABOUT 6 HOURS Leave Miami Shortly After Midnight and Disappear in Darkness to South; To Participate in Inauguration of Argentine President on Monday Miami, Fla., Feb; 17.—(AP)— Six big bombers on a goodwill mission to Buenos Aires thunder ed across the Equator today on a non-stop flight to Lima, Peru. Taking off here by the light of a full tropical moon, the United States Army air corps airplanes sped down to the Canal Zone at a 200-mile-an-hour clip, but later met stiff headwinds that reduced their speed one-fourth. They reached the equator at 11 a. m., eastern standard time. Miami, Fla., Feb. 17.—(AP)— Six huge army bombers on a non-stop goodwill flight from Miami to Peru crossed the Panama Canal Zone eailv today and sped onward. A radio message received at Chap man Field here said the craft were directly over the canal at 7:13 a. m eastern standard time, and were pro ceeding to Lima, the Feruvian capital. unless forced back by the weather. At 9 a. m., eastern standard time, the planes reported they were 430 miles south of Colon. Officials he;e computed the squadron’s average speed at 200 miles an hour, and said it should reach Lima about 2:30 p. m., eastern standard time. They were about 1,165 miles from Lima at 9 a. m. The sky giants flew the 1,100 miles across the Caribbean Sea to Panama in six hours and a half. They left the municipal airport at Miami at 12:55 a. m. today and dis appeared in the darkness to the south. They are to take part in exercises a the inauguration of President-elect Roberto Ortiz, of Argentina, Monday. Austrians Hope Hitler Makes Good % Looking to Fuehrer To Come Up With Promises; Reports Furnished Hitler Berlin, Feb. 17.—(AP) —Austria ; German-endorsed minister of the in terior came to Berlin today to report to Fuehrer Hitler on the progress of Austro-German cooperation. Wilhelm Goering, ch;** Hitler aide, announced that Minister Arthur Seysz-Inquart would talk with Hitler, with Field Marshal Herman Wilhelm Goering, German economics minister, and with Foreign Minister Joachim von Rib bentrop. There were indications that Seysz- Inquart’s visit would be the first of (Continued on Page Eight) ticipate in inauguration of President Ortiz. It is the most spectacular flight ever attempted between the U. S. and a foreign country by military planes. Nine Are Injured In T exas Twister Merfz'-n, Texas, Feb. 17. — (AP)— A twister swept the business dis trict and part of the residental sec tion of this small 'vest Texas town early today. Nine persons were in jured. Officers and volunteer workers from San Angelo dug through twisted debris at daylight search ing for other possible victims. Seven of the injured were taken to San Angelo hospitals. None was believed seriously hurt. Half a dozen buildings on the north side of main street were de molished. The windstorm was fol lowed by a driving rain. mm. DEFENSE^ \ * So Declares Maj.-Gen. Ha good in Testimony on “Big Navy” Program By CHARLES P. STEWART Central Press Columnist Washington, Feb. 17. —Maj. Gen. Johnson Hagood cannot very well be disciplined for telling the House of Representatives’ Naval Affairs Com mittee, as he did recently, that (in his opinion) America’s “national defense is being made the football of politics.” The general practically is punish ment proof. In effect, he is in the position of an individual who already has been beheaded and who then does some thing else that the executioner would like to behead him for; the same per son’s head can’t be amputated more than once in succession. Previous Punishment. Hagood is the identical general who, as a witness before an earlier congressional committee, referred to WPA checks as “stage money.” For having done so he was milit- Continued on Page Two.) GOVERNMENT FORCE GETS LOST GROUND Spanish Loyalist Troops Claim Suc cess Against Insurgents ini Cordoba Province • Hendaye, France, Feb. 17 (AP)— The Spanish government asserted to day that all positions lost to the in surgents a week ago in their drive to ward the Almaden mercury mine in northwestern Cordoba province had been recaptured. Dispatches from Madrid and Barce lona, reciting the results of the second day of the government’s counter of fensive in southern Spain, said its standards had been planted not only on the old government positions but on a dozen fortified hills long held by the insurgents. Meanwhile, other armies were dead locked in eastern Spain in a new struggle for mastery of the Aragon front. Government communiques said the insurgents sent infantry, artillery and aviation into an attack in an ef fort to regain positions a government offensive north of Teruel had taken yesterday. The government said it had main tained its foothold in the fighting, which centered around a sector west of Montalban. 8 PAGES TODAY ROOSEVELT ASKED TO GIVE BUSINESS RIGHTSOFAPPEAL Business Advisory Council Wants Employers To Have Right To Invoke Labor Act SEEK AMENDMENTS TO LABOR MEASURE Peaceful Settlement of Lab or Disputes Urged; Ship building Yards Must HaVe New Facilities To Carry Out $800,000.,000 Navy Building Plan Washington, Feb. 17. —(AP) —Presi- dent Roosevelt was urged by a busi ness advisory council sub-committee today to support council recommen dations for giving employers, as well as employees, the right to invoke the services of the Labor Relations Board. Other amendments to the labor re lations act also were proposed in ope of two reports submitted to the Presi dent on behalf of the council’s indus trial relations committee by Charles R. Hook and John Biggers, chairman and vice-chalirman, respectively, of the committee. Both reports had the unanimous approval of the council. The first report, approved April 8. 1937, declared Federal and State legis lation should encourage peaceful set tlement of labor disputes. It added that resort to force was “injurious” to all concerned. Meanwhile, the navy’s chief con structor told the House Naval Com mittee that additional facilities would have to be provided at every na y y yard to permit expeditious construc tion of the proposed $800,900,000 naval expansion program. Rear-Admiral William Dußose explained the facili ties needed would include ways and other equipment. He urged the bill be amended to give the department au thority to put the yards in shape to handle the work. Other developments included: President Roosevelt, having obtain ed enactment of two of his six legisla tive recommendations, will leave to morrow afternoon for a four or five day rest at Hyde Park. The second of his major proposals received his signature late yesterday. FarmersTo Hear Talks On Control Raleigh, Feb. 17 (AP)—The State Farm Bureau Federation completed plans today for a mass meeting of farmers here tomorrow to hear discus sion of the new Federal farm act as work got under way for cotton and to bacco referenda. E. F. Arnold, Farm Bureau secretary said the general explanation of the farm act by Senator James Pope, Democrat, Idaho, would be broadcast by radio, but the talk of J. B. Hutson, assistant AAA administrator, on the tobacco and cotton programs for North Carolina would not. E, Y. Floyd, of the North Carolina State College Extension Service, said the cotton and tobacco referenda may be completed by March 15. Floyd said this State had an allotment of 902,525 acres of cotton’ and 570,000 to 580,000 acres of flue-cured tobacco under the agricultural conservation program. The State’s marketing quota for to bacco would be between 450,000,000 and 500,000,000 pounds, Floyd figured. Farm Act Is Facing Tests With Farmers Cotton and Tobacco Farmers To Cast Secret Ballots On Control of Crops Washington, Feb. 17.—(AP)— The administration’s new farm program, having reached the statute books de spite stiff congressional opposition now faces its first test at the hands of farmers. Within a month 2,225,000 cotton and tobacco growers will have an opportunity to cast secret ballots on a proposal, authorized by the new law, that the Agriculture Department be given broad powers to control mar keting of their crops this reason. President Roosevelt described the bill as "historic legislation” when he signed it yesterday. “It is not perfec tion,” he added, although it marks "the winning of the major battle for an underlying farm policy that will endure.”