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
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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)