North Carolina Newspapers

HENDERSON’S POPULATION 13,873 TWENTY-FIFTH YEAR JURY IS GIVEN FAIRBANKS MURDER USE House Passes New Tax Bill After Refusing To Restore Tax On Close Corporations AFFIRMS NEW LEVY UPON HARD LIQUOR, AS VOTED EARLIER Speaker Bankhead An nounces Roll Call Vote as 233 to 153 as Re volt Continues TVA HEAD TALKS PLAINLY TO F. D. R. Chairman Arthur Morgan Declines to Meet Roosevelt Request for Factual Evi dence on “Dishonesty or Malfeasance” of Two Fel low Directors Washington, March 11. —(AP) —The House passed the tax bill and sent it to the Senate today after declining to reinstate a special surtax on family owned and closely-held corporations. Earlier, it re-affirmed its decision to boost the tax on hard liquor by 25 cents a gallon, even though it had heard warnings that the result migh* be the return of the bootlegger. Earlier than that the membership had killed an attempt to put back in the tax revision bill an administra tion proposal for a special surtax on family-owned and closely-held corpor ations. Speaker Bankhead announced the roll call vote was 233 to 153. Republicans and rebelling Demo crats refused to include the “IB” surtax. Other developments included: Chairman Arthur Morgan, of the TVA. declined to meet President Roosevelt’s request for factual evi dence to support charges that Mor gan has made against the other two members of the TVA board. “I am of the opinion that this meet ing is not, and in the nature of the case cannot be, an effective or useful (Continued on Page Six.) China War Is Fought In The Air Shanghai, March 10. —(AP) — The Sino-Japanese war was fought in the air today. Two squadrons of Chinese planes, in a sudden attack bombed the Japan ese air field at Nanking, General C’niang Kai-Shek’s lost capital. Japanese said there was no dam age. but Chinese said ten planes were destroyed. A Japanese military train between Pengpu and Linhkaikwan also was bombed. American missionaries at Fengfden reported a low-flying Japanese plane dropped two bombs on mission prop erty without damage. Japanese planes bombed the pro vincial capital of Shensi in west cen * Continued on Page Three.) Little Business Choked By Government Control Restrictions on Financing Damming Up Adequate Fi nancing for Small Concerns; Money Is Scared by President’s Hostility t o Business in General IIY ROGER W. BARSON, Copyright 1938, publishers Financial Bureau, Inc. Babson Park, Fla., March 11.—One °f the big reasons why the 1937 pros perity did not “catch” was the dearth °f new expansion and new enterprise. Building new factories, installing htore efficient equipment, introducing nevel products, and the like, shbu offset the losses from decaying indus tries. Before these things however, people with money must fce billing to risk it by financing sue * lacking ever since 1929—and it is still Hcriilx'rsmt Hailn Diapairftls ' ONLY DAILY NEWSPAPER PUBLISHED IN THIS SECTION OF NORTH CAROLINA AND VIRGINIA. LEASED wire service of THE ASSOCIATED PRESS Schuschnigg Steps Out As Austrian Chancellor As Germans Cross Line Warns Germany i. • • •— ll l. • j- Premier Milan Hodza ~. defies Germany In a statement of his country’*’ foreign policy issued at Prague, 1 Premier Milan Hodza of Czecho slovakia hurled defiance at Ger-’ many in response to the threat contained in Fuehrer Hitler’s re cent speech. Premier Hodza told frantically-cheering ~|nembers of the chamber of deputies that if Czechoslovakia were faced with the necessity of defending itself,' “Czechoslovakia will defend, de fend, defend herself.’’- Blum Silent Ov erF oreign Policy Plans Deadlock Threaten ed in France’s New Effort To Set Up A Government Faris, March 10.—(AP)—Premier Designate Leon Blum refused today to disclose his foreign policy until assured of radical—socialist support threatening a deadlock in France’s ef forts to set up a new cabinet amid alarming developments in Central Eu rope, including German troop move s Continued on Page Three.) absent today. There are many reasons why, but the principal one is the money and bookkeeping policy of the Federal government. New capital fin ancing is practically nil at the mo ment. Underwriting profits are so new industries. They must not prefer just to “salt” it away in government bonds. What the United States needs today is not that kind of salt, but the right kind of pep. . . The necessary confidence to taite risks was lacking in 1937. It has been (Continued on Page Four.A HENDERSON, N. C„ FRIDAY AFTERNOON, MARCH 11, 1938' Hitler’s Soldiers Invade Ter ritory of Neighbor Coun try; Austrians Fall Back AUSTRIAN ELECTION HAS BEEN PUT OFF No Date Set for Plebiscite on Austria’s Independence; Virtual Ultimatum Given Austria by Germany and Nazis in Vienna Burst Into l/ijUsiasim London, March 11. —(AP) —The Austrian legation announced to night Chancellor Kurt Schusch nigg had resigned. Meanwhile, in Vienna, the Aus trian government press bureau an nounced German troops had cross ed the Austrian border at Pas seau. Austrian troops were ordered to fall hack without resistance. A high official who had said that ’chuschnigg would resign declared hat the next Austrian government would be completely satisfactory to Germany. He added it was possible Schuschnigg would be retained in iome capacity. Schuschnigg announced by radio that Germany had presented an ulti matum with a time limit demanding he reorganization of the Austian gov ernment. Earlier in the evening the govern ment announced the plebiscite on Aus tria’s independence had been post poned. Austria was assuming the aspect of an armed camp, with clashes in many cities with Nazis and fatherland front supporters of Schuschnigg’s fight fo.’ independence. Arthur Seysz-Inquart, Austrian min ister of the interior, and close friend of Germany’s Reichfuehrer Hitler, was reported to have presented a de mand “like an ultimatum” for can (Conttnued on Page Six.) COTTON IS LOWER IN EARLY TRADING New York, March 11.—(AP) —Cotton futures opened three to five points down, in response to lower Liverpool cables and under liquidation and fore ign selling. May eased to 8.95, leaving quotations shortly after the first half hour at net losses of seven to nine points. TARBORO SHOWMAN INJURED IN CRASH John C. Lyles, 39, in Critical Condi tion in Macon, Ga, After Auto Collision Macon, Ga., March 11 (AP)— John C. Lyles, 39, Tarboro, N. C., general agent of the Art Lewis Shows, was in a critical condition in a hospital to day after a head-on automobile crasn early this morning. Although he is in serious condi tion, physicians expressed hope Lyles’ recovery. Lyles suffered a fracture of the left arm, rib fractures, contusions and cuts about the leg when his coupe crashed into a transfer truck. RAWLS ADMITS TO KILLING OF AGENT Joe Thomas West Implicated by Bawls in Shooting of Federal Agent in State Washington, March 11 (AP)—Treas ury agents announced today Bernard “Big Boy” Rawls has confessed at Norfolks Va., to the killing Tuesday night of Treasury Agent John Wil liam Jackson, Jr. Agents said Rawls implicated Joe Thomas West in the killing, and dis closed that the pair shot Jackson on the North Carolina side of the Vir ginia boundary. Officials said Rawls and West would be taken to North Carolina for prosecution. Jackson was shot when he and Ser geant John Estes, of the Norfolk, Va., police tried to stop a suspected boot [ legging car. Awaits Fate at Hands of Jury CLARENCE FAIRBANKS Heavy Margin For Control Forecast Floyd Predicts 80 to 85 Percent of Vote of Farmers To morrow Will Be For Crop Regulation; 100,000 Each In Cotton and T obacco To Vote Raleigh, March 10 -(AP)—E v I Floyd, AAA administrator at N. C,! State College, said today, “the out-1 look is mighty good for a favorable vote for control tomorrow when Tar J Heel flue-cured tobacco and cotton growers ballot on crop control. Floyd said reports from N. C. State College Extension specialists who have gone into the more than 80 coun ties for educational meetings were unanimous that the favorable vote would be from 80 to 85 percent of the farmers. There must ;'ce a two-thirds favor able vote to make a compulsory con trol vote effective. The only organized opposition en countered, Floyd said, was in Johnston and Sampson counties. Wet* Already Have Start To Hold What They Have In Legislature Dnilv Dispatch Burean, In the Sir Walter Hotel. Raleigh, March 11. Leaders of every shade of opinion involved in the controversy are making feverish pre parations for a wet-dry campaign thij year which will bring recollections of the hottest of these ever-warm bat tles over liquor. The meetings held lately by the State Association of County ABC Boards and by the county commis sioners of those units which have the stores were not held just for the fun of the thing or to swap tall tales and drain a few tall glasses. The wet generals were planning the strategy to be used in the coming cam paign, which strategy will consist lar gely in seeing to its that all legislators from ABC counties are thorough-go ing advocates of the stores and in keeping constantly before the public the fact that every one of the 27 coun ties in which there are stores is ap parently quite well satisfied with their operation. It will be continually dinned into the public ear that the people of the ABC counties are united in their sup port of the store system. The wets in the coming legislature (Continued on Page Six.) WEAVER PAYS FEE IN CONGRESS RACE Raleigh, March 10. —(AP) —Repre- sentative Zeb Weaver, of Asheville paid the State Board of Elections SIOO today to seek the congressional Dem ocratic congressional nomination in the eleventh district. He has no an nounced opposition. "WEATHER FOR NORTH CAROLINA. Partly cloudy, slightly warmer in northeast and central portion tonight; Saturday fair, rising tem perature in central portion. The AAA office has been working on compilations of the farmers eligible to vote in each referenda in North Carolina, but had not received com plete reports, so the following esti mates were made: Flue-cured tobacco, 160,000 growers in 64 counties. Cotton, 180,000 to 200,000 growers in 79 counties. Dean I. O. Schaub, of the college, estimated 140,000 farmers would be eligible in each referenda, and around 100,000 would actually vote in each. The polls in the counties will open at 7 o’clock tomorrow morning and close at 7 in the evening. Results will be forwarded here as quickly as pos sible. INVESTIGATION OF TVA NEEDED BADLY Chairman Morgan Gaining Sympathy in His Demand for Fair Inquiry By CHARLES P. STEWART Central Press Columnist Washington, March 11. —If ever a situation seemed to need impartial investigation it is the one arising out of the row within the three-man mem bership of the Tennessee Valley Au thority. The rumpus is hard for a bystander even to take one side or the other on until a lot of testimony has been lis tened to. Charges and counter-charges are ugly and voluminous enough, but thus far nothing has been substantiated Surely some disinterested body ought to dig into the facts in the case. Opposing Views. Chairman Morgan of TVA wants Congress to appoint a committee to do it. The administration does not say so but its obvious reasoning is that such a committee would have as its prin cipal business the making of trouble for President Roosevelt. An opposing suggestion is that the Federal Trade Commission should do the investigating. Chairman Morgan’s answer is that this would be a case of one “independent office”, consist ing of presidential appointees, prob (Continued on Page Three.! FT. BRAGG PRIVATE DROWNED IN RIVER Body of Howard E. Hartley, of Avery County, Found in Stream Near Fayetteville Pope Field, Ft. Bragg, March 10. — (AF) —Searchers this morning dis covered the body of Private Howard B. Hartley, 16th Observation squad ron in Little river about 15 feet from the point where he fell from a row boat last night, while poling up the stream with four companions. He was a native of Heaton (Avery county), N. C., and had been in the army aibout eight months. PUBLISHED IVIBT AFTUNOON EXCEPT SUNDAY. DELIBERATIONS BY JURY ARE STARTED AROUND 4 O’CLOCK Court Reviews Testimony by Stete and Defense in Great Detail and Outlines Different Bases for Verdict Open to Twelve Me n Sitting in Case First degree murde” charges against Clarence Fairbanks, 24-year-old show man’s helper, for the axe-slaying of his employer, Steve Good, here the night of Sunday, January 16, were given to the jury in Vance Superior Court shortly before 4 o’clock this aft ernoon after a two-hour charge by Judge R. Hunt Parker. Deliberations were begun immediately, with the court room thronged with anxious ".-'cta'orn awaiting a verdict that will ’e ter mine the young man’s fate. The ourt took a brief recess after the uvy retired. Arguments by counsel were com ’pf°d just before the noon recess, nth only the court’s deliverance re nain’ng before the jury began its study of the case. Judge Parker snoke at great length, reviewing in detail the testimony of fered by the State in an attempt to exact the life of the youth, who had confessed he slew Good in argument starting over the showman’s treat ment of a cockatoo, and in which Good charged the defendant with im moral relations with Mrs. Good. The crowd, which began filling the court room long before the hour for opening at 9:30 a. m., showed little inclination to clear out when the wclve men filed into their chamber • few minutes before 4 o’clock. They were bent on being present when the jury came back into the court room. There w’as widespread speculation ->n the length of time the jury would deliberate. Some expected a quick igreement; others thought they would e out for an hour or two. Judge Reviews Evidence. Judge Parker outlined the various types of verdicts the jury could reach, anging all the way from first degree murder down through second degree nurder and manslaughter to outright acquittal. He took great pains tj Prosecutor Slurs IL S. Vs. Soviets Russian Plotters Are Called Unfit To Live Even If America Tolerates Capone Moscow, March 10.—(AP) —Deaths for 19 of the 21 defendants in Soviet Russia’s greatest blood purge trial was demanded today by Prosecuto. A. Y. Vishinsky at the end of a bit ter summation of the government treason and murder charges. The only two spared from death were the once-esteemed Soviet diplo mat, C. Rakovsky, and S. A. Bessanoff a former Russian trade delegate. For them the prosecutor demanded 25 years imprisonment. The prosecutor, demanding the life of G. G. Yagoda, compared the once dreaded head of the secret police to A1 Capone. “We cannot leave such people alive,” he cried. “They can do so in America with A1 Capone, who kill and kidnap people they want to get out of the way. But Russia, thank God, is not America.” Whitney Ordered To Be Re-Arrested On Charges Os Grand Larceny Crime New York, March 11 (AP)—The immediate re-arrest of Richard Whitney, five times president of the New York Exchange, on a new charge of grand larceny, was ordered today by State Attorney John J. Bennett, Jr. Whitney was at liberty in SIO,OOO bail on another first degree grand larceny charge, on which he was arrested yesterday through the efforts of District Attorney Thos. Dewey. He has not pleaded. The present charge is based on a complaint of Commodore Wil liam A. W. Stewart, of the New FIVE CENTS COPY clarify all the issues and to simplify the procedure in arriving at a de cision. Solicitor E. R. Tyler, who has led the prosecution in its demand for cap ital punishment, was the final speak er, talking an hour and a half or mora and concluding just before the lunch eon recess. He summed up the testi mony of the State and sought to make out his case by piecing together the circumstantial evidence that had bean offered. He also sought to impress the jury with the alleged fallacies in th story Fairbanks told on the witness stand Thursday afternoon. Arguments Completed. Tyler was proceeded by A. A. Bunn, last of the four defense attorneys to speak, who began at 9:30 a. m.. when aourt re-convened for the day. He held up the testimony of the defendant as sufficient grounds for leniency, and pleaded with the jury to accept his story of self-defense. He opened with a passionate plea for the youth, who he said stood alone at the bar of jus tice, with only the law of North Cat jlina as his best friend, and other wise friendless and penniless in a trange land. Arguments to the jury were started shortly after 4 o’clock Thursday aft ernoon when testimony had been fin ished. J. P. Zollicoffer, of private prosecution, led off in the arguments and was followed by J. C. Kittrell, father o-f T. S. Kittrell, son, of the defense. A night session was held, when J. H. Zollicoffer, also of private prosecution, and J. M. Peace, of the defense, were the speakers. Those who heard the arguments of counsel thought they were of high order in argumentative art, hueing to the line and dealing with the evidence that had been presented. Case Begun Wednesday The case was started Wednesday morning with the selection of the jury. Seven men were chosen from among 18 of the regular talesmen serving at the March term of court, and the other five were seated after 57 men of a special venire of 100 drawn for the case had been examin ed. A total of 63 men were set aside for various reasons, mostly because they claimed to have ,formed an ominion, before the pury was com pleted. Taking of testimony started in mid-afternoon, and a night session was held. Officers testified for the State in the presentation of its case, telling of Fairbanks’ confession the day after (Continued on F vr ‘’l-. Desperate Battle For East Spain Hendaye, France, March 10. —(API —With' Belsik lost, the government’s Aragon army moved up to meet the insurgent’s great offensive in a bat tle for control of eastern Spain. Mili tary advices said the government which had been withdrawing steadily before the three-day-old thrust, had been forced by insurgent gains to take a stand, risking its army in a major clash to decide the fate of the Medi terranean seaboard. Insurgents said a Moorish corps " ri 9 (Continued on Page si* York Yacht Club, prominent law yer and former friend of Whitney, that Whitney “unflawfully” took from a safety deposit box $103,000 of bonds belonging to the club, of which Whitney had been treasur er. New York, March 10. —(AP) —Inves- tigation into the tangled financial af fairs of Richard Whitney, forme l ' president of the New York Stock Ex change, centered today on the pending Federal grand jury probe and State (Continued on Page Si* * PAGES TODAY