HENDERSON’S
POPULATION
13,873
TWENTY-FIFTH YEAR
ROOSEVELT MOKOPLT MESSAGE IS COMING
NORFOLK SOUTHERN
ALLOWED TO STOP
PASSENGER_ TRAINS
Utilities Commission Order
Most Sweeping of Kind
Ever Issued In
This State
norfolk-charlotte
LINE IS EXCEPTED
But Petition Is Pending To
Stop Service Between Ra
leigh and Charlotte; In
View of Terrific Losses,
There Is No Alternative,
Winborne Says
Raleigh, April 22 (AP)—The Utili
ties Commission authorized the Nor
folk Southern Railroad Company to
day to discontinue all passenger serv
ice May 1 except on its line from
Charlotte through Raleigh to Nor
folk, Va.
The order was the most sweeping
ever issued involving stoppage of
passenger service in the State, said
Commissioner Stanley Winborne. A
petition is pending also to stop service
from Charlotte to Raleigh.
“It is distasteful to allow discon
tinuance of service of any utility
which might inconvenience any North
Carolina citizen,” said Winborne, “but
when, as in the present case, it is
shown that only very few citizens use
the utility, and it operates at a heavy
financial loss, there is no alternative.”
The specific passenger service to
be dropped from operating as “mixed
trains” of freight and passenger
coaches is: Between Bridgeton and
Oriental; between Edenton and the
Virginia line enroute to Suffolk, Va.;
between Fayetteville and Varina; be
tween Mackey and Columbia;
Aberdeen and between
Pinetown and Belhaven, and between
Marsden and New Bern.
It was set forth the Marsden-New
Bern discontinuance was granted
“without prejudice to the rights of
any party as to their liability under
any contract,” in view of the objec
tion of the Atlantic and North Caro
lina railroad that the withdrawal
would affect contracts for mainten
ance of the passenger station at New
Bern.
20 Negroes'
Die In Cafe'
Catastrophe
Phoenix City, Ala., April 22.—'(AP)
—Rescue workers sought additional
victims today in the wreckage of a
two-story case building that collapsed
yesterday, bringing death to at least
20 Negroes, and injuring approxi
mately 80 other persons.
Sergeant T. J. Carlisle, Alabama
State patrolman, estimated that six
or seven more bodies would be found
in the ruins.
Only three white persons were
known to have been injured. One was
Luther Jones, about 55, who occupied
« room on the second story of the
building. ,
The roof of a building next to the
case collapsed Wednesday, injuring
ten Negroes slightly; the rest of the
roof crashed yesterday, bringing down
the cast wall of the case building and
wrecking the Negro section of the
eating place.
Phoenix City, with a 1930 popula
tion of 13,862, is across the Chatta
hooche river from Columbus, Ga.
Japan Pays
For Sinking
U.S. Gunboat
$2,214,00736* Check
Delivered at Emo
tional Informal
Ceremony in Tokyo
Tokyo, April 22—(AP) —The Panay
case the bombing of the United
States river gunboat Panay and three
Standard Oil vessels during the seige
( 'f Nanking—was officially closed to
'my when Japan paid $2,214,007.36 as
lu 'l indemnity.
The aerial attack on December 12
the Yangtze river from the former
' ,]nese capital, was one of the most
(Continued on Page Six.) /
meniiersntt &aUu-*9£sSmfrh
L THI“& S , S.?Jf T |™^S? B OF
Japan Is Sacrificing Much
Os Hopeh Province To Find
Troops For Interior Drive
Scott Asks Research On
Usl Os State’s Cotton
'
Raleigh, April 22.—(AP)—Agricul
ture Kerr Scott said
today he would request the depart
ments test farm division to make
an immediate investigation to deter
mine why Ndrth Carolina cotton
cannot be economically used in
stead of Indian couon in blanket
manufacture.
A shipment of 12,000 bales of In
dian cotton is in a Richmond, Va.,
warehouse for shipment to a blanket
maker at Asheville. Officials of the
company getting the staple said it
was used because it made blankets
“more nearly resembling wool” than
was possible with domestic staple.
“If this is true,” said Scott, “then
the forces of research in North Car
olina must turn their attention to the
Business Outlook Better
Than It Was Month Ago
4
President Is Adding Pump- Priming to Quicken Slight
Upturn Now Noticed; bu t New York Is a Big City
of Gloom Throughout, Babson Finds
ROGER W. BABSON,
Copyright 1938, Publishers
Financial Bureau, Inc.
New York City, April 22.—America’s
greatest metropolis and financial cen
ter is today a city of pessimism. There
is a little more cheer now than a week
ago but you can still cut the gloom
with a knife. This fact, however, is
not necessarily a bad sign. People in
this vast city are so close to the trees
that they cannot see the forest. Sen
timent iti Wall Street usually goes too
far. Often when New York thinks
that conditions are the rosiest, it is
time to pull in your horns; when it:
thinks that they are the bluest, it is
time to buy securities and goods.
Right now it is difficult for Main
Street not to be discouraged, too, be
cause business is bad. A month ago,
in commenting on the trend, I men
tioned the possibility of revising my
Case From Scotland to Be
Argued in Supreme
Court Early in May
Dally Dispatch Bnrean.
la the Sir Walter Hotel.
Raleigh, April 22—North Carolina’s
Supreme Court will soon be called on
to make its first interpretation of
the liquor laws enacted by the 1937
General Assembly.
Oddly enough, the case will find a
member of the last House who voted
against the county control ABC plan
arguing that the laws as enacted were
a complete change in North Carolina s
policy v of dealing with intoxicants and
therefore repealed practically every
restrictive provision of 'the existing
(Turlington) act.
The case, State vs. M. W. Epps, will
come up as a “pauper” appeal from
Scotland county, with Representative
Jennings King representing the appel
lant It will be the first criminal casq
on the calendar to be called during
the week of May 3rd.
In his brief, which goes exhaustive
ly into the question from every angle,
Representative King poses the para
mount question: “Was the ABC law of
1937 a complete change in the State’s
policy with reference to intoxicating
liquors or was it merely an amend
ment or exception to existing laws?”
Here for the filing of his brief, the
Scotland 'county legislator expressed
the opinion that his client will win if
the Supreme Court justices hold that
the 1937 MWs represent a complete
change in policy. Otherwise, he ad
(Continued on Pajre Three.)
GOLDSBORO MAN IS
DEAD OF AUTO HURT
Goldsboro, April 22 (AP)—Cobb
Hinson, 29, died in the Goldsboro hos
pital today of a brain concussion re
vived in an automobile accident on
Thursday night.
ONLY DAILY NEWSPAP ER PUBLISHED IN THIS SECTION OP NORTH CAROLINA AND VIRGINIA.
development of staple that will meet
the manufacturers’ demands. It may
not be found economic to place a bar
rier in the way of foreign growers,
but we must give our own growers
protection and the benefit of our re
search agencies to combat the neces
sity of continuing our present emer
gency farm program payments and
eventually reach the goal of self-sup
porting agriculture.”
Scott said the importation of cot
ton from India into this State, which
last year saw eleven percent, or $29,-
000,>000, of the farmer’s total cash in
come come from cotton, but em
phasizes the State’s needs of one of
the four research laboratories to be
located by the Federal government
to find new uses for cotton and other
agricultural product®.
■ '* —' ■ r
1238 forecast. Despite current pes
simism, I think that it is not yet nec
essary to make any change in my
prediction of the trend of business.
Some revision- may be needed, how
ever in my forecast of the volume of
business. The average of business ac
tivity for 1938 may not come within
1C per cent of the 1937 figure, but I
am sure that we will see a tremen
dous upswing before Christmas. Fur
thermore, 1939 should see a further
huge increase.
Was March The Low?
Business so far this year has been
wavering and jiggling back and forth.
From New Year’s Day to mid-Jan
uary there was a slowing-down in ac
tivity. The next thirty days saw a
slight upturn, both in confidence and
output. Then the following four weeks
(Continued on Page Four.)
Whitneys
Effort For
Loans Told
New York, April 22 (AP)—Two
members of the New York Stock Ex
change testified today at a Securities
and Exchange Commission hearing
that Richard Whitney tried to bor
row $200,000 from them a few weeks
before his brokerage firm crashed
March 8.
At the conclusion of today’s hearing,
the investigation will be adjourned
until Tuesday in Washington, when
partners of J. P. Morgan & Company
will be called.
The brokers who testified today
v (Continued on Page Three.)
B'uggs Moran
Five Others
Ate Seized
Chicago, April 22 TAP)—George
(Buggs) Moran, prohibition era gang
ster chief, and five other persons were
seized here today by police investi
gating a nationwide plot to counter
feit travelers’ checks.
Three Chicago men accused of be
ing members of a counterfeit ring
were arrested' at Pittsburgh last
night.
Police of the State’s attorney’s of
fice, who made the arrests here, ex
pressed the opinion as much as sl,-
000,000 in counterfeit American Ex
press checks had been printed for dis
tribution in principal cities of the
nation.
Moran, seven of whose henchmen
were machine-gunned to death in the
(Continued on Page Three.)
HENDERSON, N. C., FRIDAY AFTERNOON, A PRIL 22, 1938
Troops Being Withdrawn
There for Use in Central
China To Avenge
Recent Defeat
EVERY AVAILABLE
MAN TO BE NEEDED
Chinese Reds Have Already
Set Up State in Area; Hun
dreds of Thousands of Chi
nese Troops Being Placed
in Readiness for Onslaught
Planned by Japs
Shanghai, April 22.—(AP) —Japan is
sacrificing much of the Hopeh pro
vince area she won early in the war
to throw more troops into the cen
tral China front.
The greatest concentration of Chi
nese forces since fighting started July
7, 1937, and continuing guerilla raids
against Japanese outposts have cre
ated for the Japanese a critical situa
tion.
The fighting is centered in south
eastern Shantung and along the Peip
ing-Hankow and Peiping-Suiyuan rail
ways.
Forced to muster every available
man since the sharp defeat at Taier
chwang, first major loss in modern
Japanese military history, the high
command was said today to be with
drawing garrisons from Hopeh be
tween the two railways.
Chinese reds already have set up a
Soviet state in the area, with an army
of several hundred thousand troops,
and it now seems likely all of cen
tral Hopeh soon may be under their
domination. (Japanese still retain
firm control of 'Peiping and Tientsin,
major cities they woh shortly after
the conflict started more than nine
months ago.)
The Chinese, with more than 200,000
troops said to have reinforced the cen
tral front army in the past three
weeks, were establishing a new de
fense line today, crescent-shaped to
the west, south, and east of Liini.
Hoey Confers On
Morehead City’s
Late Port Bonds
Raleigh, April 22. — (AP) —Gov-
ernor Hoey conferred today with
Federal officials and officers of
the Atlantic & North Carolina
Railroad over collateral held by
the Reconstruction Finance Cor
poration for bonds for the More
head City port development pro
gram.
Another conference will be held
in Norfolk, Va., next week.
Meeting with the governor were
R. F. C. and National Railroad Ad
ministration officials, and Colonel
P. Taylor*, of Norfolk, Va.; Pre
sident H. P. Crowell, and Matt
H. Allen, general counsel of the
Atlantic & North Carolina; Major
L. P. McLendon, of Greensboro,
and Attorney General A. A. F.
Seawell, and''his assistant, Harry
McMullen.
Insurgents!
Advance In
Spain Halts
Hendaye, France, April 22. —(AP) —
The government, with almost two to
one superiority ,n manpower, arpar
ently has halted the insurgent ad
vance in eastern Spain.
The latest communique issued by
the insurgent general headquarters,
which for days has detailed a long
list of captured towns, spoke merely
ir. general terms of a “continued al
\ance” down the coastal road.
Jhe terse communique, however,
placed the insurgent southern col
1, mils still in the vicinity of, Alcala,
de Chivert, which was reported cap
tured 36 hours before.
A similar impasse seems to have
been reached all the way to >he
Pyrennes frontier, where for the last
two days the insurgents have been
taking “complete possession” of the
Aian valley.
/long the ten mi’es of the 190-rn le
front —from Gandesa north to So ’t -
the militiamen have held firmly for
(Continued on Page Six.)
WEATHER
FOR NORTH CAROLINA.
Cloudy, showers this afternoon
and in east portiln tonight; cooler
in east portion; Saturday cooler
in east and central portions.
AT NAVY, TAX BILLS CONFABS
|C;A 1® HI jjgl^' Jt
Ig::
«4' 1 3
m, s~ urn f iliLv ■? i
Top, left to right, Senators Homer T. Bone, David I. Walsh and
Peter G. Gerry; below, left to right, Representative Robert L. Dough
ton, SEC Chairman William O. Douglas and Senator Pat Harrison.
Foes of the $1,156,546,000 naval expansion bill cause a conference
of Senator David I. Walsh, of Massachusetts, center, in charge of
the bill, with two of his lieutenants, Senator Homer T. Bone of
Washington, left, and Senator Peter G. Gerry, of Rhode Island, right,
in top photo. In the meantime, house-senate conferees on the tax
bill failed to agree on the undistributed profits tax. Representa
tive Robert Doughton of North Carolina, chairman of the house ways
and means committee, left, and Senator Pat Harrison of Mississippi,
chairman of the senate finance committee, right, are seen in the
lower photo listening to William O. Douglas, chairman of the Se
curities and Exchange commission, discuss a provision of the senate
measure. Senator Harrison opposes an administration plea for re
tention of the undistributed profits' tax.
Newark Youth Confesses
His Effort At Extortion
In Franking Row
j H
Jyj
p’;'::
Horace Russell, (above) general
counsel for the Home Owners Loan
Corporation quit his post when leg
islative investigation into the use of
franking privileges showed that
Russell had sent out letters under
government frank soliciting busi
ness for former members of his legal
staff.
tCentral Press)
iwfiMs
MIGHT WELD PARTY
But Lukewarm New Dealer
Worn Illinois Senate
Nomination Other Day
By CHARLES P. STEWART
Central Press Columnist
Washington, April 22.—As Leader
Bertrand H. Snell of the G. O. P.’s
pretty small contingent in the House
of Representatives recently remarked,
there may not be such a dispropor
tion of Democrats over Republicans
in the next Congress as in the pres
(Continued on Page Pour.)
PUBLiIBHUD IVIKT JUPTIBHOOH
EXCEPT SUNDAY.
Tried To Get $30,000 a'nd
$60,000 at Different Times
from Father of
Levine Child
SENTENCE DEFERRED
BY COURT FOR TIME
Orders Psychiatrist Investi
gation Made To Determine
New Rochelle Schoolboy’s
Mental Condition; Man
Arrested ii* Chicago for
Lilda Crimfe/
Trenton, N. J., April 22 (AP)—Stan
ley Thomas Jasosky, 19, of Newark,
admitted in Federal court, today he at
tempted to extort ransom from the
father of 12-year-old Peter Levine,
New Rochelle •, schoolboy who disap
peared February 24.
1 “I’m sorry for the boy; that’s all,”
Jasosky told Judge Philip Forman as
he pleaded guilty to an indictment
charging he sent three threatening
letters to Murray Levine.
The indictment charged that the
first note, received less than a week
after the child disappeared while en
route home from school, demanded
$30,000. ‘ It alleged Jasosky wrote a
second letter March instructing the
father to take an airplane from Pat
erson, fly low over Staten Island and
drop $60,000 at the sign of a white
cross on the ground. The third let
ter asked that $30,000 be delivered at
Newark for the return of the boy, the
indictment said.
Deferring sentence, Forman order
(Con.tis'oed on Page Eight.)
Burlington Negro
Seeks House Seat
In 1939 Assembly
Burlington, April 22. —(AP) —M. K.
Tyson, local Negro war veteran, filed
today as a candidate for the House
from Alamance county.
Tyson, a tailor, is former comman
der of the Alapnap.pe county Nefcto
War Veterans • post, and was once
secretary of the National Association
of Negro Tailors and Dress-makers.
When he paid his $3 white fee,
Tyson reputedly said “the white folks
are going to send me to the Gen
eral Assembly.” 1
Political observers here declared
this the first Negro candidacy for the
legislature since Reconstruction days
when the carpetbaggers held sway
just after the Civil War.
8 PAGES
TODAY
FIVE CENTS COPY
PRESIDENT PUNS
MESSAGE ALSO ON
TAXING SALARIES
Expects To Leave Shortly
Afterwards for Cruise off
Charleston, S. C.,
Few Days
CONSIDERING TRIP
TO CHILE LATER ON
President Says He Has For
Four Years Wanted To
Make Journey to West
Coast of South America;
House Committee Recom
mends Wage-Hour Bill
Washington, April 22.—(AP)—Pre
sident Roosevelt said today he would
send his message to Congress on re
vising the anti-trust laws before next
Friday.
On that date he plans to leave the
capital for a short cruise off Char
leston, S. C.
In connection with proposed anti
trust legislation, the President said
he had discussed monopolies with
Senator Borah, Republican, Idaho, at
a luncheon conference yesterday. He
and the senator, Mr. Roosevelt added,
agreed substtntially on everything.
The President, talking to reporters
at his press conference, said his
monopoly message would be the sec
ond of two cdmmunications he will
send Congress next week.
He said he expected his message
about reciprocal Federal-State taxa
tion of salaries of public officials and
of future issues of state and federal
bonds would be dispatched to Con
gress Monday.
The question of reports that he was
planning a trip to Chile was raised,
and the chief executive said that for
four years he had wanted to visit the
west coast of Souths America.
President Roosevelt defined one of
the prime purposes of the neutrality
act, meanwhile, as being to prevent
this country from penalizing one war
ring nation and so favoring another.
He declared the law had been satis
factorily applied, In so far as possible.
(Continued ac Page Three.)
PTA Urged
ToAidWar
On Crime
Winston-Salem, April 22 (AP) —Clos
ing a three-day annual convention
here, the North Carolina Congress of
Parent-Teacher Associations, today
heard a plea for a nationwide war on
crime.
Speaking to more than 500 dele
gates, Edward Scheidt, agent in
charge of the Charlotte bureau of the
Federal Bureau of Investigation, said
the future of America rests on its ans
wer to crime’s challenge.
Scheidt said "the problem of crime
is the problem of youth,” and suggest
ed teaching emphasis upon respect
for law as a solution.
Roy Berg, secretary of the Allied
Youth Movement, said the organiza
tion he represented seeks effective
alcohol control through education. He
said “if American youth is shown the
physical effects of liquor, it will
choose temperance.”
The convention closed at noon.
Alf Landon
In Attacks
On Spending
1936 G. O. P. Nomi
nee Urges People
To Demand Taxes
to Finance Program
Topeka, Kans., April 22.—(AP)—Alf
M. Landon called upon "an articulate
citizenry” today to make it clear to
Congress that “this huge appropria
tion” proposed in President Roose
velt’s new recovery program must be
met by adequate tax provisions.
The 1936 Republican presidential
nominee, in an address prepared for
delivery to the Optimists Club, said
the President’s proposal has ended
the “period of uncertainty” as to the
government’s fiscal policy.
“We are again upon an inflationary
(Continued on P»se Si* '