ugVPi'RSON’S
POPULATION
13.873
7\\ E N TY-SIXTH YEAR
Democrats Say Neutrality Law
U and Congress Quit
Not Later Than This Saturday
Get New Post In Italian Shakeup
.'.'i drastic shakeup in years, Premier Mussolini replaced the
■ -•■ i ot tiie Italian army and air force, six cabinet ministers
m e.vtary general of the Fascist party. Marshal Rodolfo Graziuni
vs. :vn of the Libyan and Ethiopian campaigns, and former Vice
y Ltmopia. was named chief of staff of the army, replacing General
A. Pa.riani. Lt.-Gen. Archille Starace (right), relieved of the party
Hv:v:;;-y>h:p. was made chief of the general staff of the Fascist militia.
Babson Warns Os Danger
In Skyrocketing Prices
Says Panic Certain to Follow; Blames Labor
Racketeers for Trend; November Business
Called Best Since 1928.
By ROGER W. BABSON,
(opyright 1939, Publishers Financial
Bureau. Inc.
Babson Park, Mass., Nov. 2.
B - nrss is cantering along at 25 per
cent above a year ago. With the ex
ception of 1928, this month is open
ing at the highest level for any
November in history. Yet, good
s', ek- are actually cheaper than they
v.rie last November. Stock prices
ace an excellent barometer of senti
ment. The fact they do not rise in
the face of the good news means
that business men are worried. They
are fearful that Washington will
skim the profits through taxes. Con
g! ess. however, will not raise taxes
ir. an election year.
Beware of Higher Prices.
Even though there is no need to
v. ry about Washington and taxes,
ness men should be concerned
ah it commodity prices. Both the
b g labor parties have had their an
nus! conventions recently. The spot
Crack-Down
in South On
Wages-Hours
V. hington, Nov. 2. (AP) — A
' : ; vitiation of wage-hour enforce
-1 ‘-(it activities in areas of low wages
f i iong working hours was fore
( 't today by Lieutenant Colonel
Ei i p Fleming, who took over di
c'd ,n of the wage-hour adminis
-1 !on ten days ago.
’ ■ fur efforts to enforce the law,”
• d in an interview, “should be
‘ ‘ : 'a ;.ted for the areas having the
1 '■ o ( s- ‘ number of workers who have
1 "n getting less than 30 cents an
! 'a or working more than 42 hours
< ! week.”
\ recent survey by the Bureau of
1 aor Statistics showed that the bulk
SUt -h woikers were situated in the
•'-Oh, and the industrial states of
■ ' northe;i t. The minimum wage,
under the law, increased October 24
(Continued on Page Five)
WINSTON MAN DIES
OF HUNTING WOUND
eiioad City, Nov. 2. (AP)
— ! 1 ibm Snyder, of Winston
' 1 111 died in a hospital here to
is' of buckshot wounds be suf
' rt ‘d while on a deer hunt in
( trti ret county.
, s her iff (. G. Holland and
un.e.r officers were reported at
“ ' ‘ci.e of the shooting, a hunt
'! s < amp near Stella. Earlier, the
' ■ ; *ii had quoted A. P. Elliott,
‘ 'd Winston-Salem, whom he
'scribed as saying he did not
i.iiou how the wounds were in
* ted, and had not heard any
•shots.
Hwtitrrsmt BatUt Btanatrh
WIRE SERVICE OH*
I HE ASSOCIATED PRESS.
1 light at each was trained directly on
living costs under war conditions.
If prices are increased too much we
may easily kill “the goose which
lays the golden eggs.” I belong 100
per cent to the school which teaches
that prosperity comes from free
markets for raw materials manufac
tured goods labor wages, and money
rates. Anything which artificially
holds prices, wages or loans retard
prosperity and adds to unemploy
ment.
I Once it was believed that appendi
; citis couid be cured by putting on
hot-water bottles; but they did not
;work. Then doctors tried ice bags;
but they were not effective. The in
flammation was still there. It was
; finally found that appendictis can be
cured only as the appendix is remov
ed. Some day the people of North
America will learn that only as the
restrictions on wages, hours and
(Continued on Page Seven)
Dies Holds
Soviets Run
U. S. Shipping
Washington, Nov. 2—(AP) —Chair-
man Dies, Democrat, Texas, of the
House committee on un-American
activities, expressed the opinion to
day that Soviet Russia was “virtual
ly in control of the situation here, in
so far as our ships are concerned.”
He made the comment after hear
ing testimony of Frederick C. Phil
lips, of New York, that 80 percent
of the leadership in the National
Maritime Union was communist, and
that “the other 20 percent are afraid
to open their mouths.”
“Then, the union is virtually un
der the control of the communist
party?” Dies asked.
“Yes,” was the reply.
“Then, you might say,” the chair
man continued, “that Russia has
more control over the situation than
the United States.”
“You might,” Phillips agreed.
After Phillip#, a former union of
ficial, testified that an attempt had
been made to murder him because
of his opposition to communism in
(Continued on Page Five)
TWO APPOINTMENTS
MADE BY GOVERNOR
Raleigh, Nov. 2.—(AP)—Governor
Hoey re-appointed J. Y. Monk, of
Greenville, to the Morehead City
Ports Terminal Commission today to
serve a four-year term expiring in
1943. , ~
W. S. Gibbs, of Morehead City,
was appointed to the commission to
serve until January 1, 1943, in lieu
of H. P. Crowell, who resigned.
. QNLY DAILY NEWSPAP ER PUBLISHED IN THIS SECTION OFNORTHCAR OLINA AND VIRGINIA.
HENDERSON, N. 0., THURSDAY AFTERNOON, NOVEMBER 2, 1939
Conference
Group Will
Act Quickly
Republicans Trying
To Hold Congress in
Session to Consider
Domestic Problems
And Watch Foreign
Situation.
Washington, Nov. 2. (AP) — Ad
ministration leaders predicted today
that Congress would complete re
vision of the nation's neutrality law
—for which it was called into session
September 21—in time to adjourn
Saturday night.
As the House moved toward a
showdown on repeal of the arms em
bargo, key issue of revision, Speaker
Bankhead disclosed that he expected
the legislation would be put into
final form by a joint committee of
Senate and House members tomor
row or Saturday.
Then, despite Republican insis
tence that Congress remain in ses
sion., both to consider domestic legis
lation and be ready to act on inter
national problems, the speaker indi
cated his belief that the Democratic
majorities would put over a vote to
end the session.
Such a quick conclusion has been
desired by President Roosevelt.
In debate today, the House was
urged by Representative Luther
Johnson, Democrat, Texas, “to car
ry out the will of the American peo
ple,” and support repeal of the arms
embargo. Asserting that the arms
embargo has not worked, “it was on
ly a noble experiment, although a
noble experiment,” Johnson criticiz
ed arguments of anti-repealists that
it would be unneutral to change the
rules in wartime.
But Representative Austin, Repub
lican, Connecticut, said the repeal of
the embargo would make United
States participation in the European
conflict “not only possible, but prob
able,” while retention made such an
event “possible.”
Warren Urges
Quick Repeal
Arms Embargo
Washington, Nov. 2.—(AP)—Rep
resentative Lindsay Warren, Demo
crat, North Carolina, who presided
over House debate on the arms em
bargo in 1937, when it was written
into law, regrets that he voted for
the measure, which the administra
tion now seeks to repeal.
Urging approval of the Senate neu
trality bill, which would lift the em
bargo and put munitions shipments
abroad on a “cash and carry” basis,
Warren told the House:
“I voted for the present law (the
embargo), as did a large number,
because, to say the least, it had the
(Continued on Page Seven)
Dies Is Facing Bitter
War By Administration
By CHARLES P. STEWART
Central Press Columnist
Washington, Nov. 2. —Representa-
tive Martin Dies of Texas, chief in
vestigator of un-American activities
in this country,
seems to be in for
a mean fight with
the Roosevelt ad
ministration over
his release of the
names of 563 gov
ernment employes
on the membership
roll or the corre
spondence list of
the American Lea
gue for Peace and
Democracy, which
" Dies says is of
Martin D j communistic origin
Presumably what particularly
stung the White blouse was the fact
that several prominent New Dealers
were on the scroll.
Os course, it doesn’t follow that
all or any members of the league are
Communists. The outfit has a com
mendable enough name. And peace
$2 Billions
In Financing
Is Planned
•f*
Morgenthau Reveals
Plans for New Gov
ernment Borrowing,
Some New Money,
Some for Funding
Purposes, Before Jan
uary 1.
Washington, Nov. 2.—(AP)—Sec
retary Morgenthau said today the
Treasury was considering nearly $2,-
000,000,000 worth of financing before
January 1.
The financing contemplated, the
secretary told reporters, includes
about $500,000,000 of “new money”
borrowing, refunding of $1,378,364,-
200 of notes which will not come due
until next March 15, and between
$50,000,000 and $60,000,000 of Ten
nessee VaPey Authority borrowing.
Morgenihau said that the $500,-
000,000 of “new money” borrowing
was wanted to pay for the deficit on
regular governmental operations, in
addition to the $258,000,000 which
the Treasury expects next week from
the Reconstruction Finance Corpora
tion.
The Treasury helped the RFC this
week to float an issue of approxi
mately $250,000,000 one percent notes
for the specific purpose of enabling
the RFC to repay its debt to the
Treasury-
Morgenthau said the “confidence
of the public in not only the direct
obligations of the Treasury, but also
the guaranteed obligations” was
shown by the fact that the subscrip
tions for the RFC notes totaled $3,-
643,000,000.
Mussolini Signs
Peace Agreement
With The Greeks
Rome, Nov. 2. (AP) —Athens
dispatches reporting an Italian-
Greek peaee agreement were re
, garded in diplomatic circles to
day as fresh evidence of Premier
Mussolini’s leadership in efforts
to keep war out of the Balkans.
(The Greek government an
nounced an exchange of letters
with Italy “contributing to the
preservation of peace in this part
of Europe.”)
Nothing has been disclosed
here concerning the Italian-
Greek negotiations, but diplo
mats heard two days ago that the
two states were about to sign
a non-aggression pact. Foreign
circles pointed out that Italy now
is on good terms with the Balkan
countries which lie within
Rome’s sphere of influence.
These sources considered her re
lations with Turkey satisfac
tory.
City Os Flint Is
Now Near Bergen,
On Norway Coast
Bergen, Nov. 2. (AP) —The
American freighter City of Flint,
in charge of a Nazi prize crew,
passed Maaloy, 110 miles north
of Bergen, at 9:30 a. m. (3:30 a.
m. EST) today, enroute to Ger
many. The City of Flint was fol
lowed by two Norwegian de
stroyers, and was making a speed
of 14 knots.
The ship apparently was
traveling in Norwegian territor
ial waters, the report from
Maaloy indicated, and was ex
pected to pass Bergen this ev®*»-
lover or good Democrat (or Repub
lican, for that matter) might have
joined it without knowing that it’s
communistically backed, if it is; its
chairman, Dr. Harry F. Ward says
it isn’t.
As for its mailing list, nobody can
help being on that. As a Washington
correspondent, I get its releases my
self, though I’m not a government
employe. But I couldn’t if I tried, -
prevent the organization from send
ing its literature to me.
Was It Sordid?
I can understand, though, that it’s
trying to a government worker to
be included in such a roster, with
no chance to explain himself. A lot
of people are bound to take it for
granted that he's a Red, when may
be he’s no more roseate than plenty
of us. I imagine that plenty of good
Americans are for “peace and dem
ocracy” who aren’t a bit Stalin-istic.
President Roosevelt charged that
the publication of that list was pretty
“sordid.” Asked what he meant by
“sordid,” he said the term spoke for
itself. So you can furnish your own
(Continued on Page Seven.)
Chamberlain States Molotoff
Speech Gave Disappointment
In Berlin; Is Not Disturbed
The Finns vs. the Reds
Jr riNLAND TO \ + IV
„ DlsMrtNTL£ 1
fl LITTL£ M/tG/NCT CW J L*K£
\ LIN£" ON Aa 1
\ REQUESTS
O' IS-MILE STRIP
Ip JV C LCNINSRAO Os -FRONTIER
UJ) KRONvfkoT LHND IN EXCHHNGE
V* NORTHERN
(Si RUSH* OEM A NOS i
L**TONIA fl °£ AL *Z?r NT o R r OL *
r/NLPNO...
>1 RIG* if
l' LATV * A /
$ UTRUANIA^f
Finnish-Soviet relations reached another crisis as the little Baltic coun
try angrily defied Russian demands, shown on map, as outlined by
Premier Molotoff. The mission to Moscow was ordered temporarily halted
by the indignant Finns.
British Ship Not Sunk
But Is Declared Safe
Presidential
Talk Is Not
Fooling Hoey
Daily DispatcTi Bureau.
In the Sir Walter Hotel.
Raleigh, Nov. 2.—There never has
been any general idea that Governor
Clyde R. Hoey is taking with any
thing less than a bushel or so of salt
the presidential boom which North
Carolina politicians have launched
for him, possibly with tongues in
cheek.
Now there is definite, obvious and
pretty convincing evidence that the
governor does not seriously consider
himself as among those having even
a remote chance to gain the Demo
cratic nomination.
This proof has been furnished
without so much as one word being
said by the governor about the pres
idency; but there’s no disputing the
old law that actions speak louder
than words; and when the governor
declined two very fine invitations to
speak outside of North Carolina, it
can be “written down with great cer
titude that he hasn’t even remote in
tentions of getting into the presiden
tial derby.
For instance, he has been repeat
.'Continued on Page Five)
MANGLED BODY OF
AIRMAN IN HILLS
Andrews, Nov. 2.—(AP) The
mangled body of an aviator was
found in the wreckage of his airplane
about four and a half miles from here
today, and the flying license indicat
ed the victim was Thomas Theodore
Stauch, 26, of Port Colls, Ohio.
Cherokee county authorities began
an investigation.
Bids Received On
Eleven Road Jobs
In Many Counties
Raleigh, Nov. 2—(AP) —The High
way and Public Works Commission
received bids today on eleven con
struction projects, with Bowers Con
struction Company, of Whiteville,
bidding low for all or part of five
of the jobs.
The projects, by location, type of
work, length and low bidder, in
cluded: Johnston county, grading and
structures on 13.34 miles of county
road between Route 70 and Wilson;
roadway, Lavender Brothers, of Earl,
$69,118.25; structure, F. A. Triplett,
of Chester, S. C., $67,619.90.
Lenior-Greene, grading, structures
and surfacing of 5.37 miles of Route
258 between Kinston and Snow Hill,
roadway. W. C. Shepherd, of At
lanta, Ga., $60,139.10; structures,
Bowers Construction Company.
iOnathoJi
FOR NORTH CAROLINA.
Fair to partly cloudy tonight
and Friday; slightly colder Fri
day light, scattered frost to
night. -f~
PUBLISHED EVERY AFTERNOON
EXCEPT SUNDAY.
Coast Guard Cutter
Hunting for Freigh
ter Coulmore Hears
Word Indicating She
May Be Proceeding
On Way to England.
Washington, Nov. 2. (AP) —The
coast guard received word today
that the British freighter Coulmore
was safe. The word was received by
the coast guard cutter Bibb from a
Canadian radio station at Camper
down at 2:30 a. m., eastern standard
time. The station said it had heard
directly from the Coulmore that she
was safe.
The Bibb was the leader of a
squadi'on of coast guard and navy
vessels scouring the Atlantic for the
freighter about 680 miles east of New
York after the interception early
ye. terday morning of a distress sig
nal which indicated the freighter
might have been attacked by a sub
marine.
The position given by the Coul
more at that time indicated it was
just inside the neutrality safety belt
around the Americas, fixed at the
recent Pan - American neutrality
meeting in Panama.
The Camperdown station gave no
indication of where the Coulmore
was at the time she reported being
safe, but officials assumed that she
was proceeding on her way to Eng
land.
All last night the Bibb steamed
with her lights ablaze in hopes that
• they might be seen by the Coulmore.
COAST GUARD CONTINUES
SEARCH FOR SHIP ANYHOW
Washington, Nov. 2. — (AP)—The
coast* guard heard today that the
British freighter Coulmore was safe,
but it continued the search just to
make sure.
The Camperdown station in Nova
Scotia advised the coast guard cut
ter Bibb at 2:30 a. m., eastern stand
ard time, that she had heard direct
ly from the Coulmore that she had
eluded the submarine threat which
had caused her to send a distress
signal.
The Bibb, which was leading the
flotilla of the coast guard and navy
vessels in the search for the Coul
more, immediately started for land,
messaging headquarters that the
Canadian advice “justified closing
the search.”
However, to be'on the safe side,
tir coast guard ordered the cutter
Duane, another of the neutrality pa
trol ships in the Atlantic, to proceed
to the area, about 630 miles east of
New York, to look for the Coulmore.
ACTOR GILLINGWATER
DEAD AT HOLLYWOOD
Beverly Hilis, Cal., Nov. 2.—(AP)
—The shocking death of bushy
browed Claude Gillingwater, 69, lov
able character actor of stage and
screen, stirred the film colony to
day.
Detectives summoned by the kind
ly old fellow’s housekeeper found the
body yesterday in a chair in a closet
of Gillingwater’s quiet home, a bul
let wound through the chest. Four
neatly typed notes, one to police, and
the others to his physician, his son
and his housekeeper, told of suicide,
said a detective.
8 PAGES
TODAY
FIVE CENTS COPY
Ship Losses
Not Shaking
Allied Faith
Britain Continues
Confident of Over
coming Submarine
Menace, Prime Minis
ter Tells Commons;
U-B oats Being
Halted.
London, Nov. 2. (AP) —Prime
Minister Chamberlain, making his
weekly war report to the House of
Commons today, declared Russian
Premier Molotoff’s foreign policy
speech had “occasioned some disap
pointment in Berlin.”
Chamberlain said lie refused “to
disturb myself over the flights of
fancy in which Molotoff indulged
when describing the aims of the Al
lies.”
(The Russian premier Tuesday ac
cused the Allies of lighting Germany
primarily to protect their colonial
empires, and declared the restora
tion of Poland could not be con
sidered. He dwelt a't length on
friendly relations with Germany,
but made no mention of any aid,
other than economic, and political,
to Berlin.)
Despite losses to British shipping
since the war started, the prime
minister said, “nothing has occurred
to shake our confidence in our ability
to overcome the submarine menace.”
“We have continued to take toll
of enemy submarines,” although “a
certain number of British merchant
ships have been lost,” he declared.
Germans May
Not Attack
Until Spring
Paris, Nov. 2.—(AP) German
heavy artillery is continuing its
pounding of French positions on the
western front, military reports said
today, disclosing that the town of
Forbach was shelled yesterday.
Forbach, two miles inside the
French frontier on the eastern edge
of the Warndt forest, was believed
to be the town mentioned by the
French as having been attacked un
successfully Tuesday by a German
raiding force of 1,000 men. French
dispatches said damage to the town
was minor.
German artillery also directed its
fire against French positions on the
left bank of the Blies river. There
(Continued on Page Seven)
Finland Is
Weakening
In Boldness
Acknowledges Soviet
Right to Strengthen
Leningrad Defenses,
But Balks at Scope of
Demands for New
Territory There.
Moscow, Nov. 2,(AP)—Soviet
Russia-Finnish negotiations over
Russia’s demands for military
and territorial concessions enter
ed a decisive phase today when a
Finnish delegation came to Mos
cow for the third time.
There was no immediate rush
to resume the negotiations, how
ever, and the day passed with
out any meeting. Observers saw
a sign of conciliation In the fact
that the Finns arranged to at
tend tonight’s session of the Su
preme Soviet, Russia's parlia
ment.
Helsinki, Finland, Nov. 2. (AP)
1 Finland acknowledged today Soviet
I Russia’s right to strengthen Lenin
! grad’s defenses, but intimated that
Russian territorial demands must be
k (Continued on Page Seven)