Henderson’s I POPULATION 13,873 | TWENTY-FIFTH YEAR SENATE VOTES FUND TO LAUNCH WORK ON TVA KENTUCKY DAM Refuses To Strike $2,753,000 Appropriation from In dependent Offices Measure PROPOSAL IS BOTH DEFENDED, ATTACKED House Military Approves Bill To Give President Anti-Profiteer ing Powers in Wartime, Also Universal Draft of Manpower and Industry Washington, Feb. 25. —(AP) — The Senate refused today to strike from the" 51.4C9.000.000 independent offices h li a $2,753,000 item to start construe tion p f the Gilbertsville, Ky., dam, part of the TVA. Senator Vandenberg, Republican, Michigan, asked that the item be eli minated. It was inserted by the Sen ate Appropriations Committee after the bill passed the House. Senator Norris, Independent, Neb raska, sponsor of most TVA legisla tion. opposed the removal in a lengthy speech. In the preceding debate Sen ator McKellar, Democrat, Tennessee, told the Senate the projected $112,000,- 000 TVA dam at Gilbertsville, Ky.. would reduce power rates one-third in a large surrounding area. McKellar said the government would be repaid for “every dollar spent on this dam,” which he said could produce power for Nashville and Memphis. Tenn., Cincinnati, Ohio- Louisville. {Lexington, Paducah and Henderson, Ky., and rural areas. “There will be no trouble about the sale of this power,” McKellar said, de fending a $2,763,000 appropriation in the independent offices bill to start construction of the project on the Ten nessee river. The House, meanwhile, heard an as sortment of speeches more or less re lated to the $121,998,730 Interior De partment supply bill, which it is con sidering. The measure, reported to the House at noon by its appropriations committee, proposes $7,447,557 less for the fiscal year beginning July 1 than was provided for the current 12 months. The House Military Committee ap proved, meanwhile, a bill to give the President broad authority to prevent profiteering in wartime. The committee’s action broke a long committee deadlock over the legisla tion, which President Roosevelt re commended in his national defense message to Congress. The measure contains a provision for a universal draft of man-power and industry in wartime. FarmersTo Get Subsidy Upon Crops Washington, Feb. 25. —(AP) Far mers who comply with the new crop control act this year will receive a government subsidy of 2.4 cents a pound on their cotton and 12 cents a bushel on their wheat, Agriculture De partment officials decided tentatively today. Payments for tobacco may range from half a cent to 1 1-2 cents a pound, and for rice 0.125 cents a pound The subsides would be paid from the $500,000,000 fund which Congress is autnonzea to appropriate for benefit to farmers diverting land from soil depleting to soil-building crops. The tentative rate for potatoes has (Continued on Page Three.) Gen.Pershinj Againßouses To Strength War-Time Head of U. S. Armies Criti cally 111, However, At Tucson, Arizona Tucson, Ariz., Feb. 25. —(AF) —The rtout heart that carried General John T Pershing through many military campaigns showed unexpected streng th today and physicians said he had gained ground in the last four hours. After lapsing into a coma at 9 p. nn til p. m., eastern standard time) last ni Sht, the old soldier had “partially r cgained consciousness” following the administration of heart stimulants. Dr. R. Davison, who issued an of ficial bulletin at 6:15 a. m. (8:15 a. m. (Continued on Page Six.) Hmtitersmt BafUt tHsrrntrh WIRE SERVICE OP THE ASSOCIATED PRESS. Goes to Work Anthony J. Drexel Biddle, United States Minister to Poland, is pic tured aboard the United States liner Manhattan as he sailed from New York to Europe. Biddle is hurry ing back to his post as a result of the present crisis in Central Europe. (Central Press) W arehouse Body Backs Weed Cuts Tri-State Group In Raleigh Urges Con trol for This Year’s Tobacco Crop Raleigh, Feb. 25 (AP)—Tobacco warehousemen of the two Carolinas and Virginia unanimously endorsed “compulsory control” for flue-cured tobacco for 1938,” and formed the Bright Flue-Cured Tobacco Warehouse Association here today. An executive committee consisting of the presidents of the various tobac co belt associations will direct the new body. Charles D. Bryan, of Danville,, Va., was elected president, and C. P. Pau lette, also of Danville, was named secretary-treasurer. The resolution backing compulsory control urged all tobacco growers to vote for control in the March 12 re ferendum. Fear was expressed that if control is not voted on the 1938 crop will be “a recession of price be low the cost of production.” B. B. Sugg, of Greenville, discussed (Continued on Page Three.) CHANGE IN COTTON SLIGHT AT MIDDAY # Liquidation and Foreign Selling and {Lower Markets Abroad Depress Trading New York, Feb. 25. —(AP)—Cotton futures opened off five to six points on lower markets abroad, eight March notices and under liquidation an! foreign selling. May recovered from 9.18 to 9.24, and shortly after the first half hour was 9.22, when the list was two to three points net lower. Prices were ruling at about previous closing levels around midday in quiet trad ing. May was 9.23. Says Unions Sabotaging U. S. Building Industry Babson Declares New ing Act Cannot Alone Start Construction Boom; Labo r Costs Out of All Propor tion Over Country, Statistician Claims BY ROGER W. BABSON, Copyright 1938, Publishers Financial Bureau, Inc. Babson Park, Fla., Feb. 25.—Doe', the new housing act mean that Amer ica will finally get the building boom of which she is so desperately In need? The unnecessarily heavy costs of erecting a small home have been stifling building. The new act cuts initial" financing charges and makes it easier to take on a home. But it does not slash through the high costs and other obstacles which are block ing a real construction boom. Despite these drawbacks, however, home building should register a good im provement this spring. Steadily rising tax rates and the desire for automobiles rather than homes are two of the hurdles in the building pathway. Gasoline for the car instead of milk for the baby is ONLY DAILY NEWSPAPER PUBLISHED IN THIS SECTION OF NORTH CAROLINA AND VIRGINIA Cabinet And Parliament Os Japan Fight Bitterly Over War Control Plans Lower House Angrily Dis sents to Copy of Fascist Laws of Germany and Italy ANNIVERSARY NEAR OF ARMY UPRISING Nation Approaches Event Tiomorrowj With Grave Apprehension; Hankow Reports United States Has Bluntly Refused Jap Re quest for Evacuation Tokyo, Fe'b. 25.—(AP)—The Japan ese cabinet and parliament were in e, bitter deadlock today over a dic tatorial war control bill. A situation amounting to a cabinet crisis crystallized between the Diet (Parliament) and the cabinet over the measure lower house members ob jected was copied after Fascist laws of Germany and Italy. The government was determined to obtain approval for the general mobilization « ill which would impose wartime regulations on Japanese busi ness, finance, property and private lives. Because of the crisis, Jaoan ap proached the anniversary of the army uprising of February 26, 1936, with grave apprehensions. Adding to the concern was the Chinese bombard ment Wednesday of Formosa and fears that one of the main islands of Japan’s thickly settled empire might be subjected again to air raids. Hankow, China, sources said, mean while, the government of the United States has told Japan in a blunt not - that it has no intention of ordering evacuation of Americans in the cen tral China war area, as the Japanese army formally had requested. It was understood in diplomatic circles there that the note declared Americans have a perfect right to live and carry on their duties in any part of China, regardless of the presence of a Japan ese army. Shanghai' reports indicated 25 new Chinese divisions, according to Chi nese, are being organized and equip ped for a counter-offensive against the Japanese army trying to swallow the vast central China Lunghai area UPWARD CLIMB FOR STOCKS IS RESUMED Losses of a Point or More Are Con verted into Gains of as Much During Forenoon New York, Feb. 25. —(AP) — The stock market shook off “bad news” today with little effort, and resumed its climb toward recovery territory Yesterday’s Chrysler dividend omis sion brought some selling at the open ing, but this was absorbed easily and losses running to a point or more generally were converted into gains of as much. Bonds and commodities, hesitant on the get-away, quickly at tracted support, along with stocks. American Radiator 13 7-8 American Telephone 139 3-4 American Tofo B 66 1-2 Anaconda 1-2 Atlantic Coast Line ... 26 Atlantic Refining 23 1-2 Bendix Aviation 13 3-8 Bethlehem Steel 59 3-4 Chrysler 56 1-8 Columbia Gas & Elec Co 8 1-8 Commercial 8 3-4 Continental Oil Co 9 3-4 Curtiss Wright 4 5-8 DuPont 120 3-4 Electric Pow & Light H General Motors . .i. ... 36 1-2 Liggett & Myers B 94 Montgomery Ward and Co 37 1-8 Reynolds T6b B 49 Southern Railway 13 Standard Oil N J 53 1-8 U S Steel 56 1-2 the great problem in many a modern family. In the pre-war era, the wage earner, no matter how modest his job, managed to provide for a “rainy day.’’ The interest he received on his bank deposit or the rent he saved by buying his home on a building and loan plan added to his income and helped him to save more. Furthermore, his savings were loan ed on real estate or helped to finance new productive projects. Now all that is changed. The worker of today puts his savings into an automobile on an easy-payment plan. When he is thro ugh paying for the car he has pur chased on “time” he finds that his “savings” have depreciated to almost nothing. He has put his nest-egg in a “wasting asset”. Prefabrication Is Inevitable. The high material and laihor costs (Continued on Page Six), HENDERSON, N. C., FRIDAY AFTERNOON, FEBRUARY 25, 1938 Poison Gas in War? WM ; - w&m * JIIB : >J|||x t MMm Klementi E. Voroshiloff ... threatens poison gas Use of poison gas in warfare if threatened by Klementi E. Voro shiloff, Russia’s commissar of war, in a speech in Moscow on the Red army’s twentieth anniver sary. Voroshiloff said that “we cannot restrict our chemical de tachments to anti-gas defense.” —Central Press FARM DEBATE M FRANCE’S FUTURE f Two-Day Argument Finds Chamber Split on Issue of Britain’s “Real istic” Lead SCHUSCHNIGG TALK IS WARMLY LAUDED Deputy Tells House France “Must Not Tremble Before German Menace” and As serts National Honor And Territorial Security Must Be Preserved * Paris, Feb. 25.—(AP)—The Cham ber of Deputies opened a two-day de bate today on farm policy which mav determine whether France is to fol low British lead in “realistic” Euro pean appeasement. Last night’s address by Chancellor Schuschnigg of Austria drew the praise of Ernest Pezzet, popular dem ocrat. Pezzet lauded the Austrian’s “cour age and dignity in protecting his country’s independence.” The deputy interpreted the German influence in Austrian affairs as directed toward “anschluss”, or union for war, which France —with her central European a lli es must counter with “anschluss for peace.” “We must not appear to tremble be fore the German menace,” he said. To this there were replies: “We are not trembling at all!” Pezzet continued: “We are ready to assure peace with all sacrifices. But there is one which we cannot make that is, our national honor and ter ritorial security.” Eighteen deputies listed for debate today represented ail party groups. Democrats To Fix Date Convention Raleigh, Feb. 25.—IAP)— Members of the Democratic State Executive Committee, headed by Chairman Gregg Cherry, of Gastonia, began ar riving this morning for tonight’s meet ing to fix the date for the State con vention. Sentiment of the early arrivals was in line with the expressed opinion of Governor Hoey that the convention should be held before the June 4 pri mary. Yesterday the governor said he thought a “Thursday about the mid dle of May would be a good time.” Some earlier arrivals favored May 26, (Continued on Page SlxJ “Leather for NORTH CAROLINA. Partly cloudy and continued cold tonight; Saturday generally fair* Italian Support Os Austria May Give Britain Aid Needed To Block Hitler Domination CHINESE STRIKE BACK BY AIR » CHINAJ f- t . ,v Street scene in Taihoku, map of Formosa Striking from the air for the first time on Japanese soil since their unofficial war began, eight Chinese airplanes bombed Taihoku, capi tal of the Japanese island of Formosa, killing at least 10 persons and wounding others. More casualties were reported at other near by cities, also bombed by the Chinese. Formosa, as shown on the map above, is located off the Chinese coast and has been used as an airplane and troop base for Japanese operations in south China. Cherry Will Not Seek Senate Job Gastonia, Feb. 25.—(AP)—Gregg Cherry, speaker of the House in the last Genral Assembly, put an end today to rumors that he might oppose Senator Reynolds in the June primary with the official announcement that “I do not plan to run for any public office during 1938.” Bill of Rights May Be Strengthened After La- Follette Revelations By CHARLES P. STEWART Central Press Columnist "Washington, Feb. 25. —Out of Chair man La Follette’s special senatorial civil liberties committee will come measures which, if adopted, wi,l greatly strengthen the Bill of Rights. As yet none has been drafted, but it is certain that facts, disclosed zy the inquiry, will crystalize into hills and some may (and probabily will) go to the extent of recommending con stitutional amendments. Among those sure to be offered are: Acts to strengthen labor’s position in bargaining, and abolition of spie and strike-breakers. Private Detectives. In this connection members of the committee have pointed out that, since the investigation of the Chicago strike some six or eight private detective agencies which specialized in furnish (Continued on Page Three.) U. S. ARMY BOMBERS START FROM LIMA Lima, Peru, Feb. 25. —(AP) — The six United States army bomb ers took off today non-stop for Panama, en route home from their goodwill flight to South America. The first ship was away at 6:05 a. m., eastern standard time, and the last at 6:17. They expected to reach Panama in about nine hours and go on to Miami. FIVE CENTS COPY REYNOLDS LINOS NEW CONFIDENCE Senator Thinks Bottom of Recession Already Pass ed in This State Washington, Feb. 25. —Senator Rob ert R. Reynolds today issued the fol lowing statement upon his return from North Carolina where he made several addresses on public affairs un ler the auspices of civic organiza tions, and on National defense under the auspices of the Reserve Officers Association: “There is much evidence that North Carolina has passed the low point o 1 the current recession and that tin general outlook for business, industry and agriculture is favorable forth months immediately ahead. The new confidence apparent in the state is ? particularly healthy sign. It is evident that the state is continuing to enjoj a fine .balance as between the variorn elements of trade and agriculture up on which the people depend for theii livelihood. “Conferences with business peop’a lead me to believe that repeal o: modification of the undistributed pro fits tax will do much to stimulate bus iness and provide employment. While (Continued on Page Three.! NEW TROUBLE SPOT IN ARKANSAS FLOOD St. Francis River Near Top of Levees As Laborers Are Rushed To Sandbag Dykes Little Rock, Ark., Feb. 25. —(AP)- A new trouble spot bobbed up on Ar kansas’ flood map today when the St Francis river reached within a fev inches of the top of its levees in the extreme northeast of Arkansas near the Missouri line. Laborers were rushed to the strean west of Kennett, Mo„ to reinforce thr dykes with sandbags. Lashed by a stiff wind, the stream lapped ovo the levees in spots. The river hai risen 3.1 feet at Holly island in 32 hours, and the crest was not expect ed until Saturday night. Residents of Fulton, in the south west section of the state, apparently had beatefi back the five-mile-wide flood of the Red river from the : r thresholds. 8 PAGES TODAY iywkS II Duce Believed To Have Given Austrfa New Pledges Despite De nials from Rome MAY GAIN SECURITY IN MEDITERRANEAN Chancellor’s Significant Re ference to Italian Sympa thy Gives Decided Impetus to New British Policy of “Realistic” Dealings To Keep Peace London, Feb. 26. — (AP) —ltalian support of Austrian independence may give Britain the needed aid to block further German dominance of central Europe, diplomatic sources .said today. Chancellor Schuschnigg, in his speech to the Austrian Diet and na tion yesterday warmly praised Italy’s Premier Mussolini as one who under stood Austria’s problem and “always tried to avoid any impressions of in treference in our internal affairs.’’ ' This friendly reference must mean, diplomatic quarters here said, that Mussolini previously had re-assured Schuschnigg of his continued interst in Austrian independence—despite de nials from Rome of any new pledges The other possibility was that Schuschnigg was praising II Duce In an adroit move to bind Mussolini to him in his determination to fight for Austrian sovereignty and against the rise of Nazidom. In any event, the significant refer ence to Italian sympathy, coupled with the assurance “Austria must remain Austria,” gave decided momentum to Britain’s new policy of realistic deal ings to keep European peace. It is felt here that new Italian sup port for Austrian independence, in addition to the Rome protocol pledge, • Continue i on Page Three.) berllaWon SCHUSCHNIGG TALK Rest of Europe Applauds Austrian Chancellor’s Bid for Freedom (By The Associated Press) Echoes of Chancellor Schuschnigg’s paean of Austrian freedom lingered in Europe today, but its motif of har mony with Germany became a jang ling discord in Berlin. Leading Naris in Reichfuehrer Hit ler’s capital called it a “swan song”— “for us he is finished; history will take its course without him. Austria .s ours.” But Rome, which had looked ask ance at the Hitler-Schuschnigg "bar gain,” was “highly pleased by Schus chnigg’s interpretation of the agree ment as meaning Austrian independ ence and Austrian peace. Austrian patriots paraded joyously after 9chus nigg’s address to the nation. Austrian (Continued on Paf* T*hr<»e.» Four Perish In Smash-Up Os 2 Planes Britishers Dead In California; Middle- Aged Pilot Killed at Reno, Nev. San Luis Obispo, Cal., Feb. 25. AP) —Doctors strove today to save he life of James Lawrence, son of an English nobleman, and only survivor if an airplane crash on the William Randolph Hearst ranch that killed Lord Terence Plunket, 38, of London his wife, and their pilot. Lawrence, his Body covered with burns, and his ankle fractured, lay in i sanitarium here where he was re moved late yesterday from the accid jnt scene 40 miles north of here. Dr. (Continued on Page SlaU