North Carolina Newspapers

Henitersun Hatly Hispatrb ONl.Y DAII.Y NEWSPAPER PUBLISHED IN THIS SECTioN OFNOi.ih CAR<>t.i\-A ami> * IK<.I. T\\! CI'Y-SEYENTH YEAR i.EA.-'ED W1KK SERVICE OF THE ASSOCIATED PRESS. HENDERSON, N. C., MONDAY AFTERNOON, JULY 1, 1940 PUBLISHED EVERY AFTERNOON EXCEPT SUNDAY. FIVE CENTS COPY Hungary Mobilizes On Frontier ********** ********** * * * * * ******* **** Vairy Department Places Order For 45 Warships Contracts sgotiated under Law ravings Estimated at ;'rice of Cruiser Said j Have Been Effected By Contracts; Vessels Cost Half a Billion. ' • t• • t;. July l.—( \P)— The • lay ordered construction of • \.a:\-h:p.- to cost a total of \ -vateiy *500.000.000. ingle contract-lotting \ dep:t tment history, the con assigtu d by Lewis •Tif.ii .secretary, within two • ti't White House had an !' os dent Roosevelt had . ,t; to speed up the de . p:-. ,raiv.. »L> est lated that this legis i!!. ; . the Navy to nego . without competitive .. ■::< .i.l result in a saving of I ; SI7.000.000—the cost of . the construction or i: wore tlv\en cruisers. 20 de ' 3 ,-ut arines and one large no tendt r. .1! : 193.000 tons. Cost ■;:> . o»oi- not including arma • t pp polling machinery for s. was estimated at $414, Onicials estimated that ■ • and tl:e submarine pro ■.•:>. inery would bring this to h.llion. ( : the provisions of the speed . .. ; advance payments to ' ct - of 30 percent of the con TRADE PACT. • t:. July 1.—(AP)—An agree-1 • the purchase by United u"\xm:nent organizations of reserve stocks of rubber and - announced tonight by the colonial oifice. AIR KAIIJ l.oiulun. July 1.—(AP)—The :ni;>i>tr> ami ministry of home -tiritv announced that ,nomy j • • nii>ers crossed the British coast U evening. Stock Market Drifts Lower i i Vol!:. July 1.—(AP)—Stocks :iy dnirtfi lower in today's t :ders lightened commit iiclir:clarification of poli :.d bu me.~s developments, out of the slowest sessions! -• year or longer. Transfers •• hours approximated only hares. m Hi diator 6 •ii Telephone .... 159 7-8 ■ i n Too B 77 •ia 20 ' Coa-t Line 11 1-2 Refining 21 1-2 A- lation 27 3-8 Steel 75 Gas & Elec 6 1-4 62 1-4 * i1 Solvents 9 Vi;.t<'I Oil Co 6 1-4 Wright 7 157 1-4; • I ■<•:: & Light .. 5 1-2 ! r.iectric 31 1-4 ! Motors 42 5-8 .v Myers B 93 3-41 '•rv Ward & Co .. 38 3-1 Tob B 36 1-4 n Railway 1" 7-8 'i Oil X J 32 5-8 50 T-8 I I otton Prices j ^ re Mixed Vort:, July l.—fAP)—Cotton iitK-nud 2 tt> 5 lower. nor -ii; prices were off 3 to • :i : -July i'i.il, October 9.14, Noon [>i it-f. were 3 to 13 !■ 1 July I'l.uT, October 9.14. •I Ji.T4. Futures closed four low . 7 higii' , middling spot 10.69, 4. ''•1 fiiUrac^: j 10.15 10.16 »«-»■ 9.17 9.MI K 91 8.74 o.39 9.26 9.10 9.01 cl.o * o.6o Named Buying Chief Donald M. Nelson Former Sears Roebuck executive, Donald M. Nelson was named by President Roosevelt as co-ordinat ing agent for all federal purchasing in the U. S. defense program. Nel son will work with the National Council of Defense. No Announcement Re garding Alleged Ir regularities in Third District. Raleigh. July l.-(AP)— Assistant Attorney General T. Wade Bruton studied the report of alleged pre piimary irregularities in the third congressional district today but said there would probably be no an nouncement in the matter lor several days. Attorney General Harry McMullen was away or. vacation when the re port wa.; received from W. A. Lucas of Wilson, chairman of the state board of elections. The report deals with the inves tigation by Lucas and the State Bu reau of Investigation into the re moval oi' 1.500 ballots for the first Democratic primary of May 25. and die findings of some of the ballots, Lucns said, in the possession of Char les L. Abernathy, Jr., an unsuccess ful candidate. The removal of the ballots was dis covered a week before the first pri mary and new tickets were distribut ed and u -od. Representative Graham A. Burden was renominated. Bruton said he had the report ''un der consideration" but could say nc more now. Roosevelt Asks Enactment Of Excess Profits Tax Measure Nazis Occupy Two British Islands Berlin. July 1.— (AD—Ger man troops huve occupied the British channel islands of Guern sey and Jersey, the high com mand announced tonight. It said nazi forces landed on Guernsey yesterday, and Jersey today. Two British fighting planes were shot down in these opera tions. it said. .U \\a< announced that the occupa tion was achieved by a "coup do i main" of the German air force. (The.-o two islands, which the Bri- I tish previously had declared de- ; militarized, lie much closer to the German-occupied French coast than to Engiand. and probably were con sidered undel'iusible by the British command. (Guernsey, 91) miles from Ply mouth. is only half as far from the j west coast of the Cotenten peninsula, at ihc tip of which is Cherbourg. Jer- j sey i.- 20 miles southeast of Guern- j sey. (Indication that further channel' islands may have been lost to the j Germans came in an announcement; by Western Union that telegraphic i communications with Jersey, Guern- j sey and also Aldernev and Sark had been suspended.) I Annenberg Is Sentenced Chicago, Juiy 1.—(AP)— M. L.| Anncnoerg. who climbed from im-1 migrant newsboy to one of Amer ica's wealthiest men. today was sen tenced to three years imprisonment' tor evading $1,217,2915 in federal) taxes on his 193G income. Germans Order Missions Closed Berlin, July 1.—(AP)—The Ger man foreign office advised the Unit ed States embassy and presumably I all other embassies today to dis-! continue all diplomatic missions in! Norway, Belgium, Luxemburg and j the Netherlands. These missions must be discontinu ed by July 15. The foreign office informed the U. S. embassy that all political ques tions affecting these countries must be taken up through the mission in Berlin. Broughton *s Questions, If Pressed Before Assembly, Would Start Real Argument | Daily Dispatch bureau, i In tlif* Sir Waiter Hotel. Raleigh. July 1.—The questions presented by .J. Melvilie Broughton at the fVc s association meeting will, if pressed before the 1911 Geneii.l Assembly, really start something in the u;iv • »1 political arguments. Take his query No. 10, for just one example. S;tid Mr. Broughton: "How can efficiency be promoted in our State administration? Is there too much politics of the questionable sort in some departments oi our state gov ernment and. if so, how can it be eliminated? Should all State em ployees be placed under a merit sys tem of appointment and employment and. if so. should this be coupled with a retirement compensation plan?" That one alone would furnish am munition enough for a knock down, drug oui legislative battle such as hasn't been seen since the sales tax was imposed. Your reporter has never heard it contended there is any "merit"' sys tem of employment in the State gov ernment except that those merit jobs who were wise enough to support a winning candidate. Your reporter has repeatedly heard that not "some" but "ad" departments of the State gov ernment play politics and the only tert of the "questionable" nature of .ho-e politico io whether thsy were designed to help the "right" man. If they ure against the Administration, then, of course, thev are "question-; able." Certainly Mr. Broughton was the1 gainer from such politic.-, question able or otherwise, as were played by State departments during the late unlamented gubernatorial primary. Your reporter has a hunch that if ever the question of a real "men!" I system for state employees is tossed into the General Assenriruv is w,> •• tossed out again—principally because any real merit system might maive it possible for a Republican to get! a job once in a biennium or so. But even the question ol a merit j system wouldn't kick up quite the howling from high placed State of ficials if ever the legislature got down to serious consideration of Mr. Broughton's questions under the numeral 3, based on the assumption that state revenues may suffer as a result of war conditions. Mr. B. list ed alternatives of curtailing state! services such as education, etc., in creasing taxes, or effecting substan tial economies in operation of the government. "IT the latter", he queried, "'how I are substantial economies to be ef- j t'ected? By elimination of certain! State agencies and consolidation of; (Continued on Page Five) Ready for Race Mr. and Mrs. Wendell L. YVillkie are photographed together for the first time since his nomination as Republican standard-bearer. The Indiana-born New Yorker is re signing as president of the Com monwealth and Southern utility company to devote his full time to the campaign. Feud Again To The Fore Legislature May Take Drastic Action in Long Standing Agriculture Fight. Daily Dispute"! Bureau. In the Sir Waller Hotel. Raleigh. July 1.—There i- nuietly in the making a "plague on both your houses" campaign-in legislative circlcs which could conceivably re sult in application of very drastic remedies for tnc long-st;«nUin;> lend | between the Stair D^cirtment of Agriculture and State College. There hasn't been any noisy bally-j hoo about the feud of late—there al- j most never is except during and just before meetings of the General As sembly—but there ha:- likewise been no indication at ail that anything has | been done to heal the br.aeii which has existed between the farm agen-; cies lor a long, long time. There hasn't, for instance, been even one meeting (so far as has been ascertainable) of the committee which was appointed by the last leg islature to do a job of coordinating." Governor Clyde It. Hoey was to be its chairman and the personnel was so divided between the department and college factions that it was a practical certainty that the gover nor would have to dec;de a tie on al most every question. Ivlaybo that's} why there hasn't been any meeting of the committee. But whatever the reason, it seems that the sum total oi' all ellorts to bring the two groups closer together has been exactly zcio. That's why there is a distinct possibility that something stern and decisive may be in the making for next legislature time. Eventually the law makers are going to get tired of being puiied and pawed over during the recurrent rows. In the last General Assembly the j Department, under the banner of Commissioner W. Kerr Scott, won practically everything it sought—the College folks' best was to put the; best possible face on things. In the minds of mo. t legislators (Continued on Pane Five) REPORTS DF.VIE1) London. .Tilly J.— (AP)—The British ministry of information today issued an official state ment that "reports that Gerr/iuii troops have landed on the Brit ish coast and by parachute in the west midlands arc untrue." (jJsucdksji FOR NORTH CAROLINA. Fair, slightly warmer in west portion tonight; Tuesday partly cloudy. .b "£ZV> Steeply Graduated Tax vVould Be Appli cable to Individuals and Corporate Organi zations Without Dis< crimination. Washington, .July 1.—(AP)—Pres ident Roo evelt asked Congress to day to rrviet a "steeply graduated ex cess profit tax" applicable to all in dividual-; and corporate organiza tions "without discrimination." Tim of the President's mess ngo follows: "Wp arc engaged in a great nation al effort to build up our national defenses to meet any and every po tential attack. "Wc are asking even our humblest citizens to contribute their mite, it is our duty to see that the burden is ('Ouit'ibly distributed, according to abilitv to pay. so that a few do no' gain from the sacrifices of the many. "I. therefore, recommcnd to the Congress enactment of a steeply graduated excess profits tax. to be applied to all individuals and all corporate organizations without dis crimination." Mr. Roosevelt did not estimate how much revenue an excess profits tax levy might yield. House Major ity lender T?;iyburn, who attended the White House conference which preceded the issuance of the Presi dent's message, said however, that the tax would be along the lines of one levied in the World war. Four Dead In Texas Floods * Hallatsville, Tex., July 1.—(AP)— Flood waters from cloudburst-swol len streams raced across southeast Texas toward the gulf today after killing at least four persons, making hundreds homeless and doing un counted damage. Epidemic and famine threatened this town of 1,81)0 persons, hardest hit of several communities flooded. Henvy rains sent three rivers surg ing through business districts and across fertile farming lands. Evacuation Of Hongkong Is Ilonkong, July 1.—(AP)—A gray- j coated Canadian Pacific liner, carry ing the vanguard of some 4,500 Brit ish women and children being re-! moved from this colony, nosed out of Hongkong harbor this afternoon, j Other outgoing ships also were! jammed. Among the passengers was a sprinkling of Americans, although tne majority preferred to remain1 until definitely ordered to leave. The American liner Presidentj Coolidge remained here on order; from Washington and Americans! were prepared for the possible ne-; cessitv of removing their women and children. The exodus, authoritative sources said, is a precaution against possible Japanese enforcement of a land and >ea blockade of the colony to enforce demands for the closing of the Burma route to the embattled Chinese gov ernment. Under Answers Ford M. J. Coldwell A :ting leader of the Canadian House of Commons, M. J. Coldwell de manded that the Canadian govern ment take over all Ford Motor Company interests in the dominion and forbid sale of Ford products there. Ford has refused to make airplane motors for Britain Baibo Post i Leader of Fascist Con quest in Libya Named to Succeed Balbo, Kill!-, ed In Crash. Rome. July 1.—(AP)—Marshal Rodolfn Gici/iani succeeded the late Marshal Italo Balbo today as com mander of all Italian forccs in Libya, as the high command reported tri umphs in the air. on sea and on land. Graziani. leader of the fascist con quest of Libya and chief (if staff of the Italian army, already has flown to the north African colon}* to re place Balbo. who died in a flaming airplane with eight military asso ciates last Friday. Capture of several British posi tions along the Egyptian border were claimed by the high command which also said that an Italian torpedo boat had sunk a British submarine. It reported at least eight British planes were shot down. British Raid Nazi Targets London. July 1.—(AP) — British bombers hil storage tanks at Ham burg "and left them burning" in fur ther raids on military objectives in . Germany Sunday night, the air min- : istry announced today. Several targets attacked in the Darin iadt area and at Osnabrwk and Hann were again bombed, the air ministry communique said. Airdromes on the isle of Norder ney j.nd west of Bremen also wore attacked. RUMANIA PREPARES FOR INVASION BY HUNGARIAN FORCES Bucharest, July 1.—(AP) — Rumania, her forces retreating before Soviet Russia's Rod army occupying Bessarabia and Bu covina, prepared tonight to meet a possible Hungarian in -•rjiinn of Transylvania, which Rumanians said was imminent. House Passes Legislation Requiring Registration Of \ Foreign Organizations Washington, July 1.—(AP)—The House passed without debate and sent to the Senate today legislation which the judiciary committee said would subject the communist party and the German-American Bund to registration within close scrutiny of the Justice Department. The measure would require tho registration of: 1.—Organization;; subject to for eign conlrol which engage in poli tical activities. 2.—Organizations which engage both in civilian military activity and in political activity. 3.—Organizations subject to lor- j eign control which engage in civil ian military activity. 4.—Organizations, any of whose purposes or aims is the establish .jI*1!*:t. control, conduct, seizure or overthrow nt a government by the use of force, violence, military meas ure;, or threats thereof. Backing Of Axis Powers Germany Concerned Over Seizure oi Mate rials by Russia; Fast er Tempo To War In Mediterranean; A i r Raids Continue, <Ry The Associated Press.) German troops held British soil today for the first time in the war—capturing the Kuglish-own ed channel islands of Guernsey :md Jersey about AO miles from Plymouth—to (rain still another base for the projected assault on the island kingdom itself. The channH islands, virtually emptied of inhabitants a week or so a fro. lie southwest of German occupied Cherbourg;. Germans said the occupation, long since discounted because the islands were left defenseless. wa« carried out by a "coup de main of the German air force"— apparently meaning the troops were landed by plane or para chute. The seizure places Hitler's forces in no closer position for an invasion of Britain than they were already at Calais and other points. In the war-fevered Balkans, Hungary mobilized troops on the Rumanian frontier and called for reservists 'hrouphout the nation, while an official Hungarian news agency declared "the general im pression is that Rumania is on the point of collapse." (By The As.-ocioted Press.) A thinly-veiled German counter to Russia's invasion of Rumania was seen today in the reported mobiliza tion of Hungarian troop- on the fron tier of King Carol lis little Balkan kingdom vital .ource of raw ma teria! supplies for G( rmany. Hungary eiaim tiie full support of both Germany and Italy for any march into Rumania in the event Soviet Russia".- armies Overrun the limit;; „f ceded territory, established in the agreement between Rumania and Russia. Frontier incidents between Ru manian and Hungarian troops were said t>> have prompted the Hungarian mobilization, and later an officials news agency announcement said: "The general impression is that Ru mania i- i».'i iiie point of collapse." Nazi ire wa- reported aroused I# Russian seizure of German-owned materials. Berlin officials, while diplomatical ly eouting any possibility of a Ger iiian-Ri'ss:: n clash, aid Germany's main interest was to prevent any dis ruption ol her supply of vital ma terials—oil for hei mechanized armies and food;-t\if.v l.oni Rumania. NevermcW the Rumanian gov ernment h;- already appealed to Hit ler to make Ru- ia live up to last week's ultimaium agreement for ced ed territory, thereby giving the nazi fuehrer an excite, j| he wants one, for marching into Rumania against Russia. In any event. Rumania appeared the loser—threatened by an axis supported Hungarian invasion to stop Russia and by a possible German move to safeguard nazi interests in Rumania. Balkan capitai reflected mount ing nervouvnevs over Russian plans in ; outheastern Kurope as the Red army seized command of the lower Danube river. one of Germany's vital supply lines. cou:«.'!Ofi,i:ji;y oiner oispaicnes saiu Russia demanded that Turkey grant her a hare in the defense of the Dar denelles. key link between the Black >ea and the Mediterranean, while Germany and Italy are concentrating on the battle against Britain. Flurry of i< nri and air lighting over the \\'<ek-end on the Egyptian border indicated a taster tempo to the war in the Mediterranean. The Italian high command report ed the capture of several British po sition?. British bombing planes, strik ing at Germany in mas.- attacks in a warmup in tiie expected great battle lor Britain, roiled over the north, we. t and south 02 trie Reich during the night. German raiders also again attacked England, Scotland and Wales. The German high command said the British sky raiders attacked "non miiilary targets'' and that IK were shot down—an indication that the attackers must have been in consid erable numbers. The British said they hot c-'iwn five or more planes over Continued on Page Five)