HENDERSON’S POPULATION 13,873 TWENTY-SIXTIJ YEAR TREASURY ASKED FOR FEDERAL TAX SLASH Teacher Retirement And Power Project Bills In Assembly State Would Help Teachers Build Pension Re serve; Little “TVA” Measure for Cape Fear Valley Sought; Part of Revenue Bill Adopted Raleigh, March 3.—(AP) —The House ol‘ Representatives today re ceived bills to establish a retire ment fund for public school teach ers, and to organize a Cape Fear Valley Authority to develop naviga tional and hydro-electric Facilities 01 the Cape Fear river. The House then started work on a permanent tax measure, which was reported favorably by the finance committee last week. The tax bill, designed to finance a record-setting 5154,360,000 spending program dur ing 1939-41, was considered section by section, in committee of the whole. Yesterday the repi esentatives con sidered briefly an appropriations until the revenue bill has been ap proved. The teachers retirement fund bill provides that the State and the teach Forget Europe and Plug For More Business Here Babson Sees American Public Getting Jittery Again About What Hitler and Mussolini May Do; Tend to Your Own Business, He Advises BY ROGER W. BABSON Copyright 1939, Publishers Financial Bureau, Inc. Babson Park, Fla., March 3.—The war-scare of last September pulled business up short throughout the world. Ralio announcers, press dis patches, bulletin boards all scream ed war. Retail trade slowed down; business men were terrified;'inves tors dumped securities. We had a minor panic. As a result, the sharp business re covery which started in June, 1938, and carried on through July and August was almost snuffed out. It was well into mid-October before people stopped shaking and trembling over the straw war built up by hysterical radio commentators and frenzied press dispatches. The American pub lic was fooled into thinking that the poker game going on in Europe Money Bill Foes May Be Stifled Out Sharp Strategy Being Used by Administra tion Group To Blud geon Finance and Spending Measures Through as Reported by Committees Daily Dispatch Bureau, In the Sir Walter Hotel. BY HENRY AVERILL. Raleigh, March 3.—Administration leaders favoring passage of the two big money bills just as they came from committee are maneuvering craftily with clear intent to stifle as far as possible opposition from the floor. First strategic move to indicate this strategy was decision to take up and dispose of the revenue bill before considering appropriations, this de spite the fact that the spending bill repported out several days ahead of the taxing measure, despite the fact that it has been printed and is in the hands of the representatives and de spite the fact that there is no cer tainty when the revenue bill will be ready for consideration. Aim of this decision is completely obvious. If the House passes the rev enue bill about “as is”, the leaders will be provided with a very fine club with which to bludgeon the spending bill through. If the appropriations bill should be considered first, this sort of ar (Continued on Page Five), Hfftheremt Daily Dispatch ONLY DAILY NEWSPAPER PUBLISHED IN THIS SECTION OF NORTH CAROLINA AND VIRGINIA. LEASED WIRE SERVICE OP THE ASSOCIATED PRESS. ers shall contribute to a joint fund to be set up to provide funds for superannuated public school teach ers. Retirement would be optional at 60 and compulsory at 70 years of age. The Cape Fear Valley Authority measure was sponsored by Repre sentative Mcßryde, of Cumberland. It provides for the appointment of a “public and corporate body” to promote “water commerce, hydro electric power development and flood control.” The principal office of the author ity would be located in Fayetteville. The authority would be composed of eleven persons, and from each con gressional district and a chairman, all appointed by the governor. The Senate adopted a resolution (Continued on Page Eight) would end up in a real war. If the press services and radio bulletins had played up very opti mistic and encouraging domestic news of the moment, as prominent ly as they played up this poker game, business would probably have gone on just as usual. In my thirty-five years’ experience of business observ ing, I cannot recall a situation which was more over-played and over-em phasized tahn last September’s war scare. Now, it looks like a repetition of the Czech crisis could easily be re enacted. Today’s news is filled with war rumors. Every move the dicta tors make is analysed and dramatiz ed. The columnists are all broiled up over the United States armament plans and foreign policy. The public (Continued on Page Eight) Roadsides Bill Is Too Dictatorial Daily Dispatch Bureau, In the Sir Walter Hotel. BY LYNN NESBET Raleigh, March 3. —Several mem bers of the House Roads Committee desire to do something about beauti fying roadsides and regulating bill boards, but they emphatically are not willing to give to a flock of new commissions the power to make and enforce ordinances with the effect of law, and the power of life or death over two or three important indus tries in North Carolina. It was only by stretching parliamentary law gov erning legislative committee action that any part of the bill regulating roadside advertising was saved. Admittedly aimed at billboard ad vertising, House Bill 375, introduced by Representative McClamroch and several emmbers, was shown up be fore the committee a sbeing one of the most far-reaching pieces of legis lation porposed at this session. It pro vided for a State zoning commission, and zoning commissions in each of the 100 counties, whose recommenda tions had to be approved by the State Planning Board, but with full auth ority to order removal of billboards, telephone or power lines poles, fill ing stations, sandwich stands, etc., from 300 to 1,000 feet back from the highway. Not only that, but it would have required farmers and home owners to obtain written permission from this zoning board before they could build a private road or driveway from the home or field into a high way. The title of the bill was intrigue ing. The ostensible purpose of road side beautification is admirable and popular. Since the State is spending a hundred thousand dollars a year (Continued on Page Four) HENDERSON, N. C., FRIDAY AFTERNOON, MARCH 3, 1939 Tax Woe ... " A Senator, too, must suffer when income tax time comes around, for he is no privileged character when Uncle Sam starts collecting. Sena tor Allen J. Ellender of Louisiana, is shown in his Washington office in the middle of his calculations. FDR Backln Charleston From Voyage Will Leave by Train Tonight for Washing ton, To Speak to Con gress Tomorrow on Its 150th Anniversary Charleston, S. C., March 3. —(AP) —The cruiser Houston, returning President Roosevelt from the South Atlantic war games, arrived at the navy yard here at 12:50 p. m., east ern standard time, about two hours ahead of schedule. The President planned to remain aboard until late in the day, then go to his special train and leave between 7 and 8 p. m. for Washington. Escorted by the destroyer Warring ton, the President’s trim flagship steamed into Cooper river to the ac companiment of a 21-gun salute from Fort Moultrie. Charleston, S. C., March 3.—(AP) —President Roosevelt was sailing up the South Atlantic coast for this port today, after a two weeks voyage that gave him opportunity to see first hand how the United States would go about defending itself, and its sis ter republics from a South Atlantic attack. The fact that the fleet maneuvers were uppermost in his mind and that Congress is now acting on his emer gency defense proposals, while debat ing foreign policies in general, gave rise to speculation among members of his party here that he may touch upon world affairs in his speech to the 150th anniversary session of Congress tomorrow'. The chief executive was due here on the cruiser Houston late this aft ernoon. He will entrain for Washing ton between 7 and 8 p. m. and ar rive tomorrow morning. Before going to the Capitol for the joint memorial session around noon, he will attend services at St. John’s Episcopal church near the White House, in accordance with a custom (Continued on Page Three) Fair And Wanner Will Follow Freezing Spell Raleigh, March 3.—(AP)—Tem peratures over most of North Caro lina dropped below the freezing mark early today, but Lee Denson, Raleigh weather man, forecast fair and war mer weather for tomorrow. The mercury started its nose dive shortly after dark yesterday in the wake of'snow flurries that extended over most of the State. Generally the snow melted as soon as it hit the ground. The lowest temperature here this morning was 27 degrees. Low marks for some other cities during the 24- hour period which ended at 7:30 this morning were: Asheville, 28; Char lotte, 29: Greensboro, 22 Hatteras, 42; and Wilmington, 32. Meanwhile, flooded Eastern Npith New Pope Begins His Duties By Appeal for World Peace Goes on Air in Ad dress to Christians All Over the Earth in Less Than 40 Hours After His Election Thurs day; O'Connell Lauds Pius Vatican City, March 3.—(AP) — Pius XII opened his potificate today with a strong plea for peace broad cast to the entire Christian world. Sneaking from the Sistine Chapel in Lenten, His Holiness called for neace with justice and understand ing. So sudden and unexpected was the pontiff’s decision to address the world less than 40 hour': his election yesterday that even Vatican authorities were not prepared for it, but an Italian summary was broad cast by government radio. Pope Pius appealed for peace, which he said, according to this sum mary, “we all must ardently desire, peace joined with justice and charity peace in the family, within nations and in all men, peace which sig nifies mutual understanding and cordial collaboration.” Like his predecessor, Pius XI, Pius XII made peace the keynote of his policy, saying the first message of the vicar of Christ must be one of peace. •‘May God reward those who in voke it, who desire it with pure hearts and who pray for it, and has ten it,” he said. His Holiness began his five-min ute message with an expression of profound emotion for the “inscutible purpose of God” which resulted in his election. He thanked the sacred college of cardinals, of which he was until yesterday a member—Eugenio Cardinal Pacelli— *for- having consid ed him worthy of the heavy respon sibility, and he expressed the wish his members would be faithful and ready advisors. Then he sent greetings to all mem bers of the episcopate and to all who work throughout the world to “pro pagate the divine word” to the priest hood, missions and Catholic actions lay society. William Cardinal O’Connell, arch bishop of Boston, summed up almost universal acclaim for the grave, scholarly pontiff. Speaking with earnest enthusiasm, Cardinal O’Con nell predicted for Pope Pius “a re markable pontificate—something like that of Leo XIII,” and said: “The holy father is truly a beauti ful character, a man of great intel ligence and wide experience. He is humble and he is clever. He pos sesses great force and great restraint. He truly may be said to be a living saint. That is something of great im portance in these troublous times.” T rade Buying Lifts Cotton New York, March 3. —(AP) —Cot- ton futures opened one to four points higher on trade and foreign buying. New Orleans, Bombay and the South sold, and there was some hedge sell ing. Mid-morning prices held around the opening range, or one to four points net higher. March held a net gain of two at 8.62, off a point from the best. Around midday the mar ket was up two to four points. HIGH WATER STOPS SCHOOL IN DUPLIN Kenansville, March 3.( AP) —O. P. Johnson, superintendent, said today flood waters from Muddy Creek and Northeast river forced closing of the Chinquapin school in Duplin county. Carolina rivers, which left their banks during record-setting rain last month, continued to cover thousands of acres of lowland as the overflow moved slowly toward the sea. SOUTH CAROLINA HIGHWAYS ARE CLOSED BY FLOODS Columbia, S. C., March 3.—(AP) — Fed by the waters from new rains over the last 24 hours, flood-swollen streams of South Carolina continued to rise today and several highways remained closed. The highway de partment said United State route No. 76 from Columbia to Sumter would probably remain closed for several days as parts of it were covered by the overflow from the Wateree river swamps. Asks Citizenship H, ( *«»»r ■■ W l Jjgl itßsßs>&i». yy jffl minii* ■*•■> :; ;wsbb!sb Philippine resident commissioner to the U. S., J. M. Elizalde, appears before the Senate committee on ter- : ritories and insular affairs in Wash ington. He pleaded that all Fili pinos in this country be allowed to become American citizens. Gandhi Has Started New Hunger Test Frail Leader of India’s! Masses Demands! Voice for People in! Government Affairs In Rajkot Province Rajkot, India, March 3.—(AP) — Monhandas K. Gandhi sipped a cup of hot goat’s milk today and then foreswore food in a hunger strike to obtain administrative reforms for the inhabitants of the tiny native state of Rajkot. He said it would be a “fast unto death,” unless the native rulers gave the people a voice in the govern ment. Even as the tottering Indian na tionalist leader and holy man began his fast, serious communal rioting brought death to two persons in Lucknow, 700 miles from Rajkot. The town of Rajkot lies in the in terior of a peninsula 110 miles west of Cambay. It is famous for its dyes. A crowd of spectators watched Gandhi’s final preparation for the hunger strike, which recalled his “unconditional and irrevocable” three weeks fast in May, 1933, on be half of India’s untouchables. In three other fasts he went with out food for six days in September, 1932, a week in August, 1933, and a week in August, 1934. The little man chatted cheerfully with his followers as he began an other important day in his demon strative career. First there was his usual routine of massages and ablu tions, after which he looked at his mail. Shortly before noon he took his last meal, wholewheat bread, to matoes, cooked vegetables and oranges, and finally a cup of hot goat’s milk just before the zero hour of his hunger strike ultimatum. Charlotte Garage Blast Kills Worker Charlotte, March 3.—(AP) — An explosion in the repair shop of Pettit Motor Company here today killed one workman and slightly hurt sev eral others. A police report attributed the blast to a 15-pound air compressor. The man killed was Roy Byrd. Officials of the company said ex perts were called to examine the wrecked compressor to see if they could find a clue to the cause of the explosion. WEATHER FOR NORTH CAROLINA. Fair and not so cold tonight; Saturday partly cloudy and war mer. PUBLISHED EVERY AFTERNOON EXCEPT SUNDAY. Hotel Ruins Searched For More Bodies Halifax, N. S., March 3. (Canadian Press)—Firemen probed ice-coated ruins of the Queen hotel today to de termine the loss of life in the early morning fire yesterday which trap ped sleeping guests as it swept the hotel and destroyed two adjoining structures. Police said 25 persons were missing and expressed fear even more had lost their lives in the blaze. Four unidentified bodies were re moved from the ruins. Dr. F. V. Woodbury, city medical examiner, said police had removed three additional bodies from the ruins today. He appealed for dentists to aid him in identifying the charred bodies by means of their dental work. In hospitals were 20 injured, in cluding two firemen. The fire forced many guests to jump from windows of the blazing wood and stucco hotel. The hotel register, only exact record of the hotel’s guests, was buried in a safe under tons of debris. Working with city police, J. A. Rudland, Nova Scotia fire marshal, began an inquiry into the cause of the blaze, which caused damage esti mated at SBOO,OOO. Hotel employes were questioned last night, but their statements were not disclosed. JOE DIMAGGIO GETS PAY HIKE FOR 1939 St. Petersburg, Fla., March 3. (AP) —Manager Joe McCarthy, of the New York Yankees, announced today that Joe DiMaggio had signed his 1939 contract. While no figures were given, it is believed DiMaggio signed for $28,000, a $2,000 increase over his 1938 salary. Madrid Revolt Reported By Nationalists Avilla, Spain, March 3.—(AP) — The Spanish nationalises have re ceived reports that republican poli tical leaders opposed to Premier Negrin are attempting to form a new government in Madrid. The nationalists regard this situa tion as holding the possibility of un conditional surrender, which General Franco has demanded as an alter native to a nationalist offensive a gainst the Madrid-Valencia-Alicante zone. The leaders of the so-called republican dissidents are said to be opposed to communists, which form much of Negrin’s support, and to rep resent a large part of Madrid’s popu lation, which nationalists say have been resulting in calls for bread or immediate surrender. Reports of mass desertions are also reported despite the attempts to pre vent the citizens from going to na tional siege lines around the city. Hopkins and LaGuardia May Run For President By CHARLES P. STEWART Central Press Columnist Washington, March 3.—There’s no denying it, Harry L. Hopkins looms more largely, day by day, on the po litical horizon, as a 19 4 0 Democratic possibility for the presidential nom ination. Os course, I don’t contend that he stands much chance of getting it —not from present indications. Still, he seems a bit less impossible than he did not so very long ago. As re cently as when he was WPA boss all LaGuardia intelligent Wash ington commentators simply scoffed at the notion that his bid for the White House was better than about 1,000-to-l. Now, as commerce secre tary, he is rated as maybe 1 against 100. This is quite an improvement in so short a time. If Harry can keep it up, he should be fairly formidable a year hence. The best guessing is that he can’t. Yet he does have one ad 8 PAGES TODAY FIVE CENTS COPY Large Army Bill Passed House Vote Harrison and Dough ton Call on Morgen thau To Back Up Re cent Statements; Dr. Graham Pleads for Federal Funds T o Help Education Washington, March 3.—(AP) The House, with almost unprecedented unanimity and speed, passed and sent to the Senate today a $499,000 - 000 army appropriation bill, carrying funds to start a proposed expansion of the air corps. There was no record vote. Meantime, chairmen of the Sen ate and House tax committees called on the Treasury to submit recom mendations for revising taxes which “act as a deterrent to business.” Chairman Harrison, Democrat, Mis sissippi, of the Senate Finance Com mittee, and Chairman Doughton Democrat, North Carolina, of the House Ways and Means Committee, advised Secretary Morgenthau that their members were in sympathy with the administration’s view to helping business. They wrote: “We appreciate that it is the inten tion of the Treasury to make no rec ommendations to the Congress con cerning the Federal tax structure un til after the March 15, 1939, tax re turns are received and examined. As chairmen of the respective commit tees having to do with the subject of taxation in the Congress, and be lieving that we express the sentiment oi our respective committees, we would like to have, as soon as pos sible after the March 15 returns have been received and examined, the views and recommendations of the Treasury Department relating to any provisions of the tax laws, which, in your judgment, act as a deterrent to business, snd which, in your opinion, come within the scope of the state ments to which we have referred.” Harrison, in a statement yesterday called for a “radical” curtailment of government spending as a means of encouraging business. Government economy was not mentioned in to day’s letter, however. Another development, viewed as relating to government-business co operation, was the appointment by Secretary Hopkins of General Robert E. Wood, chairman of Sears, Roe buck & Company, as the secretary’s advisor on business relations. Wood will serve for about four months. Other developments: Dr. Douglas Brown, of Princeton University, chairman of the Social Security Advisory Council, warned Congress that “free pensions” for the aged might lead to regimentation. He testified to the House Ways and Means Committee on proposed changes in the social security law. Dr. Frank Graham, president of the University of North Carolina, ad vised a Senate committee that the United States had failed to carry out “the American system” in supporting its public schools. Noting federal support for defense, highways, health, agriculture and social se curity, he urged passage of a bill pro viding more than $800,000,000 in the next six years for grants to states for education. vantage; the Democrats are mightily hard up for a good 1940 candidate. Interior Secretary Ickes or Agricul ture Secretary Wallace would do quite well for the New Deal Demo crats, or Vice-President Garner or Senator Clark for the Old Dealers, but the Old Dealers certainly would turn thumbs down on Ickes or Wal lace; the New Dealers on Garner or Clark. Parenthetically, I’m assum ing that President Roosevelt is out of the situation for a third term, which I believe now to be assured. All this being the case, if the Dem ocrats split, pro and anti New Deal er-ishly, the Republicans will have a corking good break to win. Hopkins a Compromise. What the Democrats need impera tively is a good compromise leader. But they haven’t one! No? How about Harry Hopkins? At this point I hear rancous laughter. Think of Harry Hopkins!—as a right-left compromise Well, wait! The Republicans have no rip snorting standard-bearer to offer, either. That is to say, their crow'd doesn’t suggest even a moderate lib eral with any especial appeal. Their bunch is too extremely conservative (Continued on Page Five)