HENDERSON’S
POPULATION
13,873
twenty-sixth year
TREASURY TAX PLAN GIVEN TO CONGRESS
Divers Prepare' For Raising
Hulk Os Sub With 26 Bodies
Draft Dodger Returns
>• - TOgsikv mjv®:
_ ,
Grover Cleveland Bergdoll, World War draft dodger who fled to Ger
many, is pictured leaving ship in New York. He was immediately locked
up in the same Governors Island guard cell from which he escaped almost
twenty years ago.
Labor Laws Are Stifling
Business, Babson Claims
Social Security Should Be on Pay-as-You-Go
Basis; Unemployment Tax Purely Politics;
Many Business Men Sick and Ready To Quit
By ROGER W. BABSON !
Copyright 1939, Publishers Financial
Bureau, Inc. '
Babson Park, Mass., May 27.—1
doubt if one person out of a hun
dred even yet realizes the far-reach
ing effects of our new labor and
social laws. They are the most dan
gerous pieces of legislation ever
pa-sed in the United States. They are
forcing people out of jobs every day.
These acts are stifling industry,
choking jobs, raising prices ,and hold
ing back prosperity. I believe they
Efficiency
Os Teachers
Very Costly
Expense to State
Mounts Because of
Greater Preparation
and Fitness of Faculty
Members; School
Commission Faces
Problem
Dally Dispatch Bureau,
In the Sir Walter Hotel.
Raleigh, May 27.—North Carolina’s
.1 ist-reappointed School Commis
ion personnel is suffering from a
large, collective headache because,
among other things, this State’s
teachers are getting themselves so
v eil prepared for their positions that
they rate more money in the salary
scale.
Lloyd Griffin, commission execu
tive secretary, today pointed to fig
ures which showed that for the
school year 1938-39 the salaries of
all teachers and principals in North
Carolina will be $656,000 more than
in 1937-38, although there were only
801 more teachers this year than last.
The big jump in wage costs, he
said, was caused by the fact that so
many of the teachers improved the
certificates they held from “B” to
*‘A”, while so many others were get
hng automatic increases via the ex
perience increment route.
For the 1938-39 year, he said, total
■ ■ " ■ ■' ♦
(Continued on Page Three)
iiiutiU'rsmt Llatht iit&imtrh
WIRE SERVICE nw
THK ASSOCIATED FR^sP®^
are the cause of 50 per cent of the
loss in jobs since 1936.
As a result of my article on the
coal strike several weeks ago, the
president of an important coal min
ing concern in the southwest wrote
me a very significant letter. He said:
“I am satisfied that 70 per cent of
the soft coal mine owners of the
United States would far rather have
Congress impose a tax of 100 per
cent on net profits than to continue
in force the present social security
taxes of 4 per cent on payrolls. If
a 100 per cent net profit tax were
passed, employers could at least re
tain the funds they set aside for de
preciation and depletion. On our case
the tax we are being required to
pay is in excess of 100 per cent of
net profits.”
Obstacles to Jobes
“We no longer have any hope that
our mines can, under present day
conditions, be operated profitably.
We have felt, however, that in jus
tice to our employees we should try
(Continued on Page Three)
RAIL BANKRUPTCY
PROCEDURE PASSED
Washington, May 27.—(AP) The
Senate passed and sent to the House
today legislation which would re
vise railroad bankruptcy procedure
by placing it under a special five
judge court. Approval came without
a record vote after two days of de
bate.
Pinetown Man Is
Dead at Ft. Monroe
Os Auto Injuries
Hampton, Va., May 27. —(AP)
Jasper Boyd, 30, died early yester
day at the Fort Monroe hospital of
injuries suffered in an automobile
accident near Seaford early Sunday
morning. He is survived by his wid
ow, Mrs. Eloise Boyd; two sisters,
Leota and Polly, both of Pinetown,
N C.i four brothers, Aubrey and
Hertford Boyd, both of Newport
News, and Philip and Winfield, of
Pinetown, and his father, Richard
W. Boyd, of Pinetown;
The body was met at the entrance
of Fort Monroe this morning and es
corted to the Old Point wharf by
Chaplain J. K. Bodle, members of
his company, and the second post
artillery band.
The funeral will be conducted at
Pinetown at 2 p. m. tomorrow, and
burial will take place in Latham
cemetery.
ONLY DAILY NEWSPAPER PUBLISHED IN THIS SECTION OF NORTH CAROLINA AND VIRGIIS
New Helium-Oxygen
Mixture Used in Low
ering Deep Sea Work
ers; Plans Approved
by Navy Department
in Washington
Portsmouth. N. H., May 27.
(AP) —With more than 60 divers
on the scene prepared to take
advantage of every minute of
calm weather, Navy officials an
nounced today an intricate plan
for salvaging the sunken sub
marine Squalus, and indicated it
would be at least a week before
the §4,000,000 submersible could
be raised from the ocean floor.
One high official gave an off
the-record indication that even
as much as two weeks might
elapse before the 26 dead men
now peopling the Squalus could
be lifted to the surface. Simul
taneously, however, the same of
ficer said the work would go on
night and day, Sunday and holi
day included, until the work is
completed.
Portsmouth. N. H., May 27.—(AP)
—Working swiftly to take advantage
of calm, fair weather, Navy-divers
—using a new “helium-oxygen mix
ture recently developed by the Navy
—were lowered to the water-filled
hull of the submarine Squalus short
ly before noon today to complete
the ground work for raising the craft
and its cargo of 26 dead.
With a warm sun chasing away an
early morning fog, the divers, under
the direction of Admiral C. W. Cole,
went down from the deck of the re
scue ship, assured of longer time at
the 240-foot sea depth because of
the new mixture. Helium oxygen, of
ficials said, was not so readily ab
sorbed into the blood stream under
heavy pressuie as air.
Meanwhile, Lieutenant Comman
der A. I. McKee and A. R. McCann,
submarine experts, completed a
round trip flight from Washington,
bringing approval of the intricate
plans of operations to raise the 1,450-
ton hulk. They left Washington at
8:16 a. m. daylight time, and landed
at Portsmouth at 11:17 a. m.
On shore, the huge chamber used
to rescue the survivors was fully re
paired and ready to be taken back
to the rescue ship when and if it
should be needed.
Group Plans
College Work
Raleigh, May 27.—(AP) —Gover-
nor Hoey today appointed ten Uni
versity of North Carolina trustees to
a committee to confer with Dr. Frank
Graham on agricultural policies at
N. C. State College. Dr. Graham re
quested the committee.
Named were Dr. Clarence Poe, of
Raleigh, chairman; Dudley Bagley,
chairman of the State Rural Elec
trification Authority; W. D. Barbee,
of Seaboard; C. F. Cates, Faison;
Thurmond Chatham, of Winston-
Salem; Edwin Pate, Laurel Hill;
John Sprunt Hill, Durham; J. H.
Poole, of Wast End; W. E. Fenner,
Rocky Mount, and Leslie Weil,
Goldsboro.
The governor said the committee
would be entirely distinct from a
group named to coordinate activities
of the State College Extension Ser
vice and the State . Department of
Agriculture.
JUDGE W. L. SMALL
DIES AT HIS HOME
Elizabeth City Jurist Was Only 53,
And Had Suffered Stroke
of Paralysis
Elizabeth City, May 27.—(AP) —
Judge Walter L. Small, who retired
from the superior court bench Feb
ruary 1, 1938, after suffering a stroke
of paralysis, died yesterday. He was
53 years old.
After his retirement, Judge Small
became an emergency judge, but per
formed few official acts because of
his health. He was appointed to the
superior court bench in 1928, and
was twice re-elected. Previously he
had represented Pasquotank county
in the legislature, and was a district
solicitor. For many years he was a
member of the bar here, and formed
a partnership with former Governor
Ehringhaus.
Judge Small is survived by his
widow and four children.
ROOSEVELT ARRIVES
AT HYDE PARK HOME
Hyde Park, N. Y„ May 27.—(AP)
—President Roosevelt returned to his
country estate overlooking the Hud
son river at 8:30 a. m. today,
HENDERSON, N. C., SATURDAY AFTERNOON, MAY 27, 1939
Pontoons for Raising the Squalus
Two of the ten pontoons rushed to the spot twelve miles off Portsmouth, N. H., where the submarine
Squalus went down with fifty-nine aboard, are shown at the Brooklyn, N. Y., Navy Yard, being prepared for
the trip. Water-filled pontoons are lowered to the submarine and secured, then rise with the craft as the
water is pumped out and air forced in. (Central Press)
Hero in Disaster
Lloyd B. Maness
Uoyd B. Maness, of Greensboro*
N. C., an electrician’s mate, was
hailed as the hero of the Squalus
disaster, credited with being the man
who jammed shut the door which
cut off the flooded sections of the
submarine from the compartments
in which the survivors lived for
more than 30 hours.
(Central Press)
King George
Popular With
Reporters
By CHARLES P. STEWART
Central Press Columnist
Washington, May 27. —There are
times, occasionally, for a considei’able
space of successive periods, when on
ly one kind of news is news. For
example, when a good-sized war is
raging no news but war news is of
any consequence. For quite a while
after a Titanic has struck an iceberg,
the newspaper reading public doesn’t
care a cent’s worth for anything but
stories of Titan tics and icebergs. With
a national campaign just drawing to
a close, nothing but presidential po
litics is of the slightest general in
terest. Reportorialdom yearns for a
bit of variety—for a good fire or a
(Continued on Page Three)
UNION SHOP CLAUSE
IN COAL CONTRACTS
New York, May 27.—(AP) —The
“union closed shop clause” was
written into the new contract be
tween the United Mine Workers of
America and anthracite mines own
ers, it was said today.\ Ti?e contract
was ratified last night. John Lewis
president of the United Mine Work
ers, said he was confident the new
agreement would get “the over
whelming vote” of tiie union.
France Seeking Defense
Agreement With Turkey
Berlin Squirms and
Whines as Peace Pow
ers Strengthen Front
Against Aggression
Group; Goebbels
Frantically “Warns”
(By The Associated Press.)
The French cabinet conferred to
day on a proposed mutual assistance
agreement with Turkey, another link
in the British-French chain of al
liances, as German Propaganda Min
ister Paul Goebbels sounded a “final
warning” to powers he accused of
seeking to “encircle” Germany.
Informed sources in Paris predict
ed that a Turkish-French accord
paralleling the agreement already
reached between Britain and Tur
key, would be initialed next week.
Foreign sources understood that all
that stood between Ankara and Paris
was an arrangement for minorities in
Hatay, former Sanjak of Alexandret
ta, which France has administered
as part of her Syrian mandate. Hatay
is expected to pass to Turkey.
Goebbels’ “warning” that “every
blow of the British-French front
will be answered by us with a deafen
ing counter-blow,” emphasized the
gravity with which Germany views
efforts in London and Paris to bring
Soviet Russia into their line-up.
A. dispute at Geneva over joint
Finnish-Swedish proposals to re
fortify the Aaland Islands in the
Baltic Sea reached such proportions
it was feared that Finland might
quit the League. A scheme was re
ported, however, to try to mollify
Finland by leaving to the Finns,
Swedes and Russians attempt to
reach a solution through direct nego
tiations without the League Council
taking action until later.
AP News Is Now
To Be Available :
For Broadcasting
— V
New York, May 27.—(AP) —
Broadcast of Associated Press news
by member newspapers with or with
out commercial sponsorship has
been authorized by the executive
committee of the board of directors
oi The Associated Press.
A resolution passed by the com
mittee yesterday provides for a basic
five percent additional assessment on
member papers broadcasting news
without commercial sponsorship and
a 25 percent increase for those with
such sponsorship. The resolution
provides that The Associated Press,
a cooperative, non-profit organiza
tion, must not be identified with
any broadcast.
(jJcjodlwi
FOR NORTH CAROLINA.
Mostly cloudy today and Sun
day: occasional showers in north
central portion Sunday.
WEEKLY WEATHER.
South Atlantic States: Scatter
ed thundershowers, with near
normal temperatures indicated
for the week.
PUBLISHED EVERY AFTERNOON
EXCEPT SUNDAY.
Pendergast Aide
Admits His Guilt
Kansas City, May 27.—(AP) —
Robert Emmett O’Malley pointed
to by the government as the tool
of Boss Tom Pendergast in en
gineering a §9,500.000 insurance
rate settlement, pleaded guilty to
day to evading Federal income
taxes on his §62,500 share of the
pay-off.
Meekly, the ousted State super
intendent of insurance followed
the action of Pendergast, now un
der prison sentence for tax evas
ion on money whieh the govern
ment contended included a $315,-
000 payoff.
U. S. Sailors
Would Marry
French Girls
Villafranche, France, May 27.
(AP) —Love-smitten sailors of the
United States cruiser Omaha urged
French officials today to give them
permission to carry about a score oi
Riviera belles before the ship sails
for home June 17.
Captain Wallis Lind, commander
of the Omaha, which has been here
over a year, sought to dissuade the
men not to take on “additional an
chors” at present. “Think it over
a lot first,” was his advice.
It was a race against sailing time.
The French mayor, surrounded by
the thumping hearts and dark eyes
that caused them had to telephone
the ministry of justice in Paris for
special permissions for the weddings.
The sailors had to post ten-day bans.
Under French law, foreigners may
not be married in France unless they
have permits to reside in the coun
try for more than a year. The Ame
rican sailors had no such permits
because they live aboard ship. Usu
ally it takes months to get them, so
special permission had been sought
prior to the posting of bans.
Weddings for which permission
had been granted and which were
likely to occur before the Omaha
departs, included: Charles Washing
ton Briggs, of Princeton, N. C., and
Nancy Garidel.
Awards Given For
State Supplies At
Price of $25,000
Raleigh, May 27.—(AP) —The Di
vision of Purchase and Contract an
nounced today the awarding of con
tracts for miscellaneous State sup
plies to cost between $25,000. The a
wards included:
Kitchen equipment for the State
Hospital at Goldsboro to John G.
Kolbye, of Richmond, Va.; Smith-
Wadsworth Hardware Company, of
Charlotte, and Micro Westco, Inc., of
Bettendorf, lowa.
Library stocks for East Carolina
Teachers Coliege to Snead & Com
pany of Jersey City, N. J.
8 PAGES
TODAY
FIVE CENTS COPY
Hints Okay
For Profits
Levy Repeal
n : \
Undistributed Profits
Tax of Little Value,
Morgenthau Tells
Ways and Means
Group; Capital Pond
ers Roosevelt Third
Term Issue
Washington, May 27.—(AP)
Secretary Morgenthau directed
“serious” congressional attention
toward toward striking from the
tax laws “any manifest inequal
ities or other defects” in the in
terest of promoting “lasting busi
ness recovery.”
Naming a “balanced budget”
as “the fundamental objective of
sound financing,” the secretary
of the treasury told the House
Ways and Means Committee that
tax charges must not reduce fed
eral revenue. Included among
tax features outlined for consid
eration at this session were the
controversial undistributed prof
its tax, the capital stock tax, and
the computation of profits and
losses for tax purposes.
In his 2,000-word prepared
statement, Morgenthau urged
consideration of the “present”
international crisis and its “un
mistakable implication that we
should give serious consideration
to our future fiscal position and
redouble our efforts to attain
full rec >\ ery.”
Washington, May 27.—(AP)—Sec
retary Morgenthau laid before Con
gress today suggestions for revision
of corporate taxes to remove possible
business hindrances, including a hint
the Treasury would not object to re
peal of the undistributed profits levy.
Without recommending any spe
cific tax schedules, the secretary of
the treasury presented to the House
Ways and Means Committee general
(Continued on Page Three)
Negro Confesses
To Assault Upon
Burlington Lady
Raleigh, May 27.—(AP)—Direc
tor Frederick Handy, of the State
Bureau of Investigation and Indenti
fication, said today that a Negro
sought for criminal assault of Mrs.
J.‘ C. May, of Burlington, had been
arrested and had confessed to the
ciime. He said an agent of his
bureau, Guy Scott, apprehended a
man he identified as Leßoy. Wags
taff, in a farm house attic in Ala
mance county near Burlington dur
ing the night. Handy said Wagstaff
had been taken to an unnamed jail.
Also arrested was a Negro Handy
name as Jerry Grant, in whose
house, Handy said, Wagstaff was
caught. Grant will be charged with
harboring Wagstaff.
Handy said a third man was
sought, one whom officers think has
been aiding Wagstaff in avoiding
arrest. t
Mrs. May was assaulted after
midnight last Sunday in her home,
she told officers.
Police Rout
Pickets Near
Tigers’ Park
Detroit, Mich., May 27. —(AP) —
Mounted police dispersed a large
group of automobile workers who
attempted to picket Briggs Stadium,
home of the Detroit Tigers, at noon
today, taking many of the marchers
into custody, and seizing banners
and placards. Police said no one
was injured seriously.
Walter O. Briggs, owner of the
baseball club, is chairman of the
automobile body manufacturing com
pony that bears his name. A work
ing contract between the company
and the CIO United Automobile
Workers expired last week, and a
strike was called when negotia
tions for a renewal collapsed. Ap
proximately 70,000 automobile
workers have been made idle by the
strike, which cut off bodies and
other supplies.
Rival union leaders differed wide
ly in their attitude toward proposed
National Labor Relations Board
conducted consent elections among
employe s of two automotive com
panies to decide a jurisdictional dis
pute, and tacilitate settlement of a
strike which threw 70,000 persons
out of work.