HENDERSON’S
POPULATION
13,873
TWENTY-FIFTH YEAR
NAVY S BILLION DOLLAR BILL IS ENACTED
U. S. Arms Embargo To Spain Will Remain
WYE’S RESOLUTION
VIRTUALLY KILLED
BY SENATE GROUP
Secretary Hull's Opposition
Results in 17 to One Vote
Against Lifting
Embargo
STATE DEPARTMENT
CHIEF IS FEARFUL
Circumstances Now Prevail
ing Do Not Warrant Per
mitting Shipments to Span
ish Government Forces,
Hull Asserts; Nye To Be
Heard Next Week
Washington, May 13. —(AP) — The
Senate Foreign Relations Committee
voted 17 to one today to table the
Nye resolution which would lift the
embargo on United States shipments
of arms to the Spanish government,
lit acted after Secretary ;H’<ll op
posed action at this time.
Chairman Pittman, Democrat, Nev.,
of the foreign relations committee,
said the committee’s action meant ac
tion on the Nye resolution had been
“postponed indefinitely.” This usually
is tantamount to killing a resolution
It was not immediately disclosed
which member of the group had vot
ed against delaying action.
Pittman said he had arranged to
permit Senator Nye, Republican,
North Dakota, who now is out of the
city, to appear before the committee
next week to make any statement he
wishes on behalf of the resolution.
The Nevada senator asserted, how
ever, it was highly unlikely the com
mittee would reconsider its action. .
Secretary Hull had told the Senate
committee in a communication today
that ‘‘from the standpoint of the best
interests of the United States in the
circumstances which now prevail, 7
would not feel justified in recommend
ing affirmative action on the resolu
tion under consideration.”
BELGIAN CABINET
QUITS ITS OFFICE
Differences Over Budget
Balancing Cause Crisis
In Government
Brussels, Belgium, May 13. —(Al^—
The Belgian cabinet headed by Pre
mier Paul Jan son resigned today after
five and a half months in office. The
cabinet was formed November 24, 193",
succeeding that of Paul Van Zeeland.
The resignation was due to differ
ences over the government’s tax pro
posals, designed to balance the budget.
n’he cabinet was a coalition of Jau
f-on's own liberal party, socialists and
the Catholic party.)
The present crisis, threatening for
some time, came to a head when
Catholic ministers refused to parti
<Ccc*Unued on Page Six.)
Idle Capital Must Have
Some Incentive To Work
Babson Backs Roosevelt P roposal To Tax Government
Bonds, But Say 3 Capital Gains Levy Must Be Sharp
ly Curtailed; Says Natio n Needs New Industries
nv KOGKR W. BABSON,
Copyright 1938, Publisher*
Financial Bureau, Inc.
Babson Park, Mass., May 13.—Cut
ol,t tax-exemption on new public
'ends and softening' the capital gains
Wou |d be the biggest immediate
' ! !> which Congress could give the
fjfuntry now. It would aid in bringing
ar ' rni tf ' the strike of capital which
started 'ast August. Taxing new gov
' |, )T*'tnr bonds and easing the levy
f ’n capital gains should force billions
"■ dollars into new enterprises. These
w, ‘ step* .ore more important to re
"'very then* the appropriation of the
tu v; $5,900,000,000 spending program.
Basically, taxes should be limited
raising n oney to pay public expen
'T’/ 1 he soundest way to do this is to
1 Mn,lf,n a ii present federal levies ex
cept estate taxes and a broad income
r( x and to rely thereon. Present rev
alue measures are like a Chinese puz
„ ’ 0 Bgure out. They are unwise
re *trlctive. The framerg of the
statutes had no idea what
ihmltersmi TBailtt Htsmtfrh
l U' UMRv 'Snip vir-jr OF
THE ASSOCIATED PRESS.
Where Brazil President Held Off Rebels
HI -jj&i&h. IIpt? _>• |MM|B
The presidential palace in Rio De Janeiro and inset, President Getulio Vargas
Attacked by Fascist rebel revolters who attempted
to seize the government, President Getulio Vargas
of Brazil, revolver in hand, defended himself and
his family in the presidential palace at Rio De Ja
Scores Killed, 150 Wounded
In Air Raids Upon Barcelona l
Four Talked
By Baptists
As President
Dr. Turner, Os
Greensboro, One;
Richmond Conven
tion Opposes Union
Richmond, Va., May 13. —(AP)*--
Four men were prominently mention
ed for the presidency of the Southern
Baptist Convention today as delegates
met for election of officers and se
lection of the 1939 convention city.
Names frequently heard as possible
successors to Dr. John R. Sampey,
president of the Southern Baptist
Seminary, at Louisville, as leader of
more than r>,OCJ,C'DO Southern Bap
tists, include: Dr. Lee R. Scarborough,
president of the Southwestern South
ern Baptist Seminary, Dallas, Texas,
(Continued on Page Pour.)
their utiimate effect would be. They
did not realize, for instance, that a
higher levy on personal holding com
panies, couple 1 with John L. Lewis’
■activities, would be largely respon
sible for throwing 4,009,000 people out
of work between last August and this
May
What Higher Tax Did.
Personal holding companies'former
ly held a tax advantage for wealthy
-individuals* Dividends and interest
from investments could accumulate
in these holding company treasuries
by paying a flat corporation income
tax of around 15 per cent. But if the
d'v’dends were paid direct they had
to fee put through'-' the owner’s per
sonal tax return at rates up to as
high as 75 per cent. For several years
'treasury 'experts had tried to stop
,his “leak”, but up until 1937 it was
siill cheaper to use the holding com
pany device. Finally, last August, a
bill wajs pushed tjhrough Congress
(Continued on Page Eight.)
ONLY DAILY NEWSPAPER PUBLISHED IN THIS SECTION OF NORTH CAROLINA AND VIROTOIA.
Hoey Pitching
§M Bp
Ji|||
Gov. Clyde R. Hoey
• • • throws across first strike
Ecclesiastical dignitaries and state
officials in North Carolina partici
pate in a. ball game, and Gov.
Clyde R. Hoey takes the mound
to pitch the first ball. Score,
church 27, state 17.
—Central Pret*
Sign 5
Interest In It Next To Dead,
With No Excitement
Stirred So Far
ifflll} Dispatch ltnreaa.
In The Sir Walter
Raleigh, May 13. —Senator Robert
R. Reynolds may inject an issue in f o
the U. S. Senate race when he makes
his first campaign speech next week:
but unless he does his contest with
Frank Hancock is going down in his
tory as unique, in being the first in
which neither candidate assigned a
reason for preference except that he
is “the better man.”
It has already proved the most ag
gravating on record to news men and
political commentators by reason of
the fact that nobody knows or seems
to give a whoop in Hades about the
whole matter. Digging into the list of
apt adjectives the campaign can -be
described as sommolent, quiet, indif
ferent, lethargic, inert, pulseless, nar
cotic, exhausted, worn out, motionless,
dull, dreary, and, in short, dead.
All of which makes it an impos
sibility to predict with any degree of
certainty what the outcome will he.
(Continued on Page SixJ
HENDERSON, N. C., FRIDAY AFTERNOON, MAY 13, 1938
neiro until government forces came to his assist
ance. The revolt was staged by Green Shirt Fas
cists of the outlawed Integralista party. Photos
above show president and palace.
Capital of Government
Spain Attacked Twice in
19 Hours by In
surgent Planes
PLANES SWEEP IN
FROM EASTERN SEA
Many Bombs Fall Into Medi
terranean, but Cause Cas
ualties There as Well;
Franco’s Two Wings Link
ed in East As Loyalists Re
treat Slowly
Barcelona, Spain, May 13. —(AP)
Bombed twice in 19 hours, this capi
tal of government Spain today count
ed 60 dead and about 150 wounded as
the cost of a new wave of insurgent
aerial attacks.
A dozen persons were killed and
40- injured this morning when six bg
Junkers swept in from the Mediter
ranean at about 16,000 feet, split into
two groups and bombed the southern
part of the city.
Many bombs fell into the sea, btkt
caused casualties even there. About
20 men and women gathering mus
sels were wounded.
The small craters left in Barcelona
(Continued on Page Four.)
REVENUEPROPERTY
TO HOLD EXEMPTION
Churches, Lodges and Oth
ers To Resist Levies on
Their Holdings
- Daily Dlsontdi Bnrenn.
In the Sir Walter Hotel.
Raleigh, May 13—A definite and de
termined effort will be made in the
next General Assembly to make man
datory the taxing of revenue-produc
ing property owned by religious, char
itable and fraternal organizations;
but prospects for success of such a
drive are none too bright.
Reasons for the skepticism lies in
the organized and always-effective op
position sure to develop from the
organizations which would he af
fected.
In the 1937 General Assembly an
amendment was introduced to the
(Cor.tir.ued on Page Eight.)
WEATHER
FOR NORTH CAROLINA.
Cloudy, occasional rain in north
and not so cool on the north coast
tonight; Saturday partly cloudy
and warmer and occasional show
ers in extreme north portion.
Japanese To Cut China’s
Lifeline Railroad Route
Vanguard of Army
Only Fe w Miles
from Vital Chinese
Supply Artery
Shanghai. Saturday, May 14 (AP)—
A JapandSe army spokesman predict
ed early today ti.-j cast-west Lunghai
railroad, China’s “lifeline” on the
central front, would be cul before
dawn.
oupancse dispatches from the front
jaid a vanguard was striking swiftly
• hiough the darknvss within a few
miles of the Lunghai to win the
months-long bloody race to cut the
railroad and close Japan’s net around
China’s armies. $
Shock Loops attacking north
through Honan province were said
to have crossed tlvo border into Kiang
su and to have reached a point 13
miles from a station on the Lunghai,
11 miles west cf Suchow, the goal of
Japan’s campaign.
Japanese war planes loosed many
tons of explosives yesterday (Friday)
an ihe central China front in an ef
fort to speed the advance of a dozen
Japanese columns boring steadily to
ward the vital Lunghai railway from
the north and south.
Hardest hit by thu bombardments
was a point 45 miles south of Suchow,
on the Tientsin-Pukow railway, where
the Japanese made three smashing
raids.
Farther to the west, Japanese war
(Continued on Page Six.)
Churchmen Approve Plan
For World Church Union
Most Far-Reaching Proposal Since Luther's Reforma
tion Emerges from Utrecht Conference; Jesus Christ
As God and Savior Is Heart of Plan
Utrecht, The Netherlands, May 13.
(AF) —An historic church document
aimed at the most far-reaching union
of Christian churches since the Re
formation emerged today from a
world conference of churchmen re
presenting 130 Protestant denomina
tions.
The document is the draft of a con
stitution approved unanimously by
5 delegates from 20 nations, incluo
Ing the United States, for the first,
world council of churches in history.
It will be submitted at once to all
participating churches by the Arch
bishop of York, who presided at the
f ive-day conference adjourning today.
An accompanying letter will ask
the churches to unite in the organiza
tion for “the fellowship of churches
which accept our (Lord Jesus Christ
as Gdd and Savior”, and send dele
Government Demands for
Room Appear To Be Well-
Nigh Insatiable
By CHARLES P. STEWART
Central Press Columnist
Washington, May 13. —Washington
shortly is to start on another spree
of government building.
Funds for this program hardly can
be provided at. the current session
of Congress but already it is agreed
that more federal construction is ur
gently needed and the cash undoubt
edly will be forthcoming at the next
session.
The idea is that more office room
for Uncle Sam not only is required
but that the program will furnish a
deal of employment. To be sure, the
actual building will be concentrated
in the capital but it is pointed out
that the raw materials for it will have
to come from here, there and nearly
everywhere throughout the country,
creating jobs in all directions.
Growing!
This reasoning may be perfectly
sound.
Nevertheless it does call attention
to the fact that Uncle Samuel’s de
mands for his government’s accom
modation appear to be well-nigh in
(Continued on Page Six.)
PUBliiam» , T> nvinv * ftiuiooM
EXCEPT SUNDAY.
U. S. Aide at Amoy
Leland C. Altaffer
• • • aides Americans
Leland C. Altaffer of West Unity,
0., is the U. S. consul at Amoy,
China, southern port which was
bombed'for hours by Japanese
naval and aerial forces. Amoy, a
city of 250,000 population, is a
strategic port for further attacks
son south China. The city has a
foreign population of 250, includ
ing 28 Americans.
—Central Pream
gates to the proposed council meeting
Delegates here represented directly
about 32 denominations, but they
spoke also as the elected representa
tives of 130 Protestant bodies.
A council meeting every five years
and an annual meeting of a central
committee would be open to all Chris
tian churches.
The Roman Catholic Church, how
ever, has taken no steps to participate
in the movement. The council assem
bly would consist of 450 members.
There would be 90 delegates to the
central committee, including 18 from
the United States and Canada, of
whom- five would be lay delegates.
Because of his long work toward
formation of the council, the Arch
bishop of York was considered almos*
certain to be elected its first presi
dent.
Auditor Testifies Pitt Sher
iff Got $254 from County
Unlawfully
Greenville, May 13 (AP) —L. R. Aus
bon, a public accountant, testified to
day in ouster proceedings against
Sheriff S. A. Whiteheurst that the of
ficer as jailor allegedly over-charged
Pitt county $254.05 for the boarding
of prisoners who had been transfer
red to prison camps.
Counsel for Whitehurst objected to
the testimony on grounds the ouster
(Continued on Page F.ight.)
CATAWBA MAN JOINS
N. C. PRISON FORCES
J. Loy Sox, 43, To Become Penal Divi
sion Education Director as
of June First
Raleigh, May 13 (AP) —J. Loy Sox,
43 of Catawba county, will become
the penal division education director
June 1. Ropert Trady Johnson, pen
al division director, and Oscar Pitts,
superintendent of prisons, announc
ed the appointment of Socks today to
succeed J. A. Capps, also of Catawba
who resigned. . Socks was en
dorsed, Johnson said, by Clyde Er
win, superintendent of public instruc
tion.
8 PAGES
TODAY
FIVE CENTS COPY
ffiS
BE PROVIDED FOR
Senate Passes Conference
Compromise Measure
Which Has Already
Passed In House
KING WILL DEMAND
WPA INVESTIGATION
Utah Senator Wants Inquiry
Into Activities of Harry
Hopkins As World’s No. 1
Spender of Public’s
Money; Slattery Given
Under Secretaryship
Washington, May 13 (AP) —The
senate passed and sent to the White
House today the administration's bil
lion-dollar naval expansion bill.
The measure, pending in Congress
since February, authorizes construc
tion of 46 new fighting ships, 26 auxi
liaries and 950 airplanes. Funds to
carry out the program will be appro
priated iater. . 1
Separate bills originally ware pass
ed by both chambers. A joint com
mittee worked out a compromise,
carrying authorization estimated -at
$1,090,000,000 and this was approved
in the House by a 67 to 31 vote Wed
nesday,.
Three new battleships and two 20,-
000-ton aircraft carriers are provided
by the compromise bill.
President Roosevelt expressed the
hope, meanwhile, that Congress, in
its coming anti-monopoly study, would
cover methods of preventing future
depressions through avoidance of un
absorbed inventories and unwarrant
ed high prices in some commodities.
He made this remark in denying that
his administration’s original lending
and spending program was a failure.
Asked at a press conference wheth
er he had any definite program to
combat surplus inventories and high
prices, the President said he had not,
but this was part of the anti-trust
study he recommended to Congress.
Other developments:
Senator King, Democrat, Utah, told
the Senate he would ask shortly a
congressional investigation of the ad
ministration of relief under Harry
Hopkins, WPA administrator. King
made this statement after Senator
McCarran, Democrat, Nevada, gaid
U ontinued on Pkge Six.)
Hungary Cabinet
•Resigns In Face
Os Nazi Demands
Budapest, Hungary, May 13
(AP) —The cabinet of Premier K.
Daranyi, confronted by an ex
panding Nazi movement, resign
ed tonight. Admiral Horthy, regent
of Hungary, immediately sum
moned Bela Imredi, minister of
economics. After the audience,
Imredi announced he had been
asked to form a government. The
cabinet met immediately for a
final session, after which Daranyi
visited the regent and submitted
the resignation, which Horthy ac
cepted.
Previously, it was understood
Daranyi would recommend Ire
di as head of a stronger govern
ment capable of combatting the
rise of Naziism in Hungary.
Brazil May
Accuse Her
Foreigners
Suspicion Points To
Germans as Back
ers of Abortive Re
bellion .Tuesday
Rio de Janeiro, Brazil, May 13.
(AP)—A high police official said to
day investigation was being continu
ed to determine whether there was
any link between foreign political fac
tions and the Greenshirt integralist3
whose rebellion was put down quickly
on Wednesday.
“Nothing yet has developed in the
inquiry that might indicate a foreign
connection," the official said. He dis
closed, however, that Harry Schaffer
and F. Voight, two of five employes
of a German bank who are under ar
rest were German citizens, not Braz 5 -
lians, as first thought.
“Till now proof indicating their par
ticipation in the revolt only show in
(Continued on Page Six '