Hcnitersim Baily Hispatcij
ONLY DAILY NEWSPAPER PUBLISHED IN THIS SECTION OF NORTH CAROLINA AND VIRGINIA
— r»r7 < n in PUBLISHED EVERY AFTERNOON FIVE CENTS COPY
TWENTY-SEVENTH YEAR ¥iflEAI>3socfATl5BpR™s0'f HENDERSON, N. C., FRIDAY AFTERNOON, DECEMBER 27, 1940 except sl-nda^. ,
Fierce Fighling In Albania
.* V. tt M SI
Defense Spending Estimated At Ten Billion
A Queen Goes for a Ride
Irene Casault, Michigan's winter sports queen, prepares for a run
down the toboggan slide at the Silver Valley winter sports area in the
heart of the 800,000-acre Huron National Forest near East Tawah.
And it's easy to see why she was made a queen.
'Central Presa)
Demand For Peace
Moves Increases
Efforts Being Made
to Organize Congres
sional Opposition to
President Roosevelt's
Aid to Britain Policy.
Washington. Dec. 27.—(AP)— In-!
creating senatorial demcnds that the J
:-.d:ninistration seek to bring peace to
E- .ope coincided today with efforts
' organize congressional opposition
' President Roosevelt's aid to Bri
n policy.
Senator McCarran. Democrat, Nev
; cj.. declared that "there will be a
0'c:ded move in the senate for re
i?:tution of real neutrality."
"Real neutrality does not result'
furnishing the implements of;
he told reporters. "It will bo;
; -sible to organize a sufficient i
- ;p which, working independently
" Mipport a positive policy against
war." I
Both McCarran and Senator John- j
Democrat, California, comment
'd that, it the warring nations could
" <e hostilities on Christmas "they (
ught to be able to stop for all time.''
Talk of peace proposals came at a ,
•tme when 169 men and women,
•any of them prominent in various,
::"lds, telegraphed President Roose-1
(Continued un Page Eight.)
Plan To Send
Food To Spain
Still Pending
Washington, Dec. 27.—(AP)— The
State department initiated today
nat authoritative spokesmen de
cribed as final efforts to achieve an
agreement under which American
!'»od supplies may be sent to Spain.
The answer, it was disclosed, is up j
the British and Spanish govern
ments.
Early yes or no action is expected
m view of the urgency of the food
•ituation and tiie casting of unhappy
Spain in a strategic and perhaps de
cisive role in European developments.
If an agreement is reached, well
informed sources said, the United
States is ready to carry on "its tra
ditional policy of extending relief to
meet urgent human needs" by h/.
tng the American Red Cross rush a
hipload of food to Spain immediate
ly and by arranging monthly ship
ments in the future.
In view of the dynamite-laden
problems involved, the United States
i.v reported seeking assurances from
both the British and Spanish govern
that iUfc-ciftc cnnditjpns be met.
Violent Death
Toll For State
Raised To 25
i
Charlotte, Dec. 27.—(AP) — J
Automobile accidents killed at j
least 20 persons in North Caro
lina over the Christmas holidays, I
and three persons were killed by i
the accidental discharge of fire- ;
arms. In addition, there was a
murder and suicidc at Asheville.
giving North Carolina a Christ
mas violent death toll o? 25.
Petain Writes
To Hitler
Bern, Switzerland, Dec. 27.— .
(AP)—Navy Minister Gean Darlan ,
of the Vichy French government I
was reported today in diplomatic j
advices to nave delivered personally ;
to Ad. If Hitler somewhere in Ger
man-occupied France north of Paris j
a letter from Chief of State Petain.
The contents of the letter were \
not leorned, but they were under
stood to convey both reassurance of I
Petain's desire to continue French
German collaboration and explana
tion of his refusal to take the ousted
Pierre Laval back into the cabinet.
Laval had been foreign mijvcte>\
premier and negotiator in chief with
Germany.
Roosevelt
Still Busy
On Budget
Non - Defense Spend
ing May Be Held to
Six Billion Dollars;
Revenue Estimated at
Eight Billions, Leaving
Huge Deficit.
Washington. Dec. 27—(AP)—Pres
ident Roosevelt's estimates of de
fense spending for the coming fiscal
year were said by authoritative of
ficials today to be about ten bil
lion dollars, or double the anticipat
ed expenditures of the present year.
The President was reported to he
still busy on details of the budget
message which he will send Con
gress early in January and no over
all figures have been worked out
yet.
Mr. Roosevelt has announced, how
ever, that he wants to cut non-de
fense "to the bone." On this basis,
many officials assumed that such
spending might be held under six
billion dollars, giving a budget total
of nearly sixteen billion dollars.
This would make the budget thy
largest in American history except
for the last year of the World War,
when SI8.522.895.000 was spent.
On the 1941 revenue side, officials
hinted at an eigh; billion uollar es
timate. which would mean a deficit
of equal size unless more taxes were
authorized. Secretary Morgenthau
has suggested more levies and other
treasury sources indicated that a new
tax bill to raise at least one billion
dollars, was being drafted.
The ten billion dollar defense esti
mate for the year beginning July 1,
1941, was said by officials to be based
on the acceleration of the current
preparedness program. Last July ex
penditures were 177,000,000, in Au
gust $199,000,000, in September
S218.000.000. in October $283,000,000,
and in November S365,000,000.
Ford Orders
In Effect
Contract Criticized by
Labor Representatives
"In Effect", War De
partment Says.
Washington, Due. 27.—(AP)—War
department contracts with the Ford
Motor Company totaling more than
$2,000,000 and criticised by labor
representatives were said today by
department officials to be now in
effect.
The contracts, for midget scout
cars and passenger vehicles, were an
nounced as awarded on November
27. There arose an immediate outcry
from labor leaders and Sidney Hill
man, labor member of the new office
of defense production, challenged
the award.
Hillman protested that there had
been a labor board finding of unfair
rfV.ntinnnri fin P;igP Three.)
Raleigh Speculates As To
Whether New Budget Will
Reflect Broughton's Ideas
Daily Dispatch Bureau.
Sir Wat"" Hotel. I
By HENRY AVERILL.
Raleigh, Dec. 2i.—A night or two 1
after the General Assembly convenes >
next month, the bienniel "budget |
message" will be delivered to its \
members. This will, in effect, be the
r-K-irt hv which the legislators will
steer their financial course—or at
least it will be the Advisory Budget
Commission's idea of such a chart.
Often in Raleigh, as in other poli
tical capitals, there are advance
"leaks" which permit premature in
formation about important matters
to become known before they arc
supposed to be; but the budget com
mission's recommendations have al
ways been so closely guarded that
there never has been a really serious
thing of this sort.
That's one reason why there Is
!so much speculation here now over
[whether the budget recommendations
]this time are going to be Governor
.Clyde R. Hoey's, in the main, or
i those of his successor, J. Melville
Broughton, who will have to take any
jrap that grows out of financial back
j firing during the next four years.
I In view of the fact that Mr.
Broughton sat in all the commission's
i meetings, and took rather an active
part in discussing matters brought
[before it, there is good reason to
I believe that recommendations will
(Continued on Page Eight.)
Canadians Drill to Meet German Invasion
British guards on the Channel coast have been doubled as reports persist that Germany plans a lightning
invasion attempt sometime within the next few weeks. Britain has been training constantly to meet the
threat. Pictured are Canadian reinforcements recently arrived in England, engaged in transporting a
gun tractor across a river as part of their anti-invasion training. (Central Press)
Army Camps Cost More
CIO Plan
Is Studied
Roosevelt Says Air
plane Production Plan
Offered by Murray Is
Being Studied.
Washington, Dcc. 27—(AP)—Presi
dent Roosevelt told a press con/erence
today that the CIO proposal. design
Ed eventually to produce 500 pursuit
planes a day by peeling the entire
facilities of the auto industry, was
being seriously considered by the
administration.
The plan was submitted to the
White House by CIO President
Philip Murray, several days ago. It
»vas drawn by Walter P. Reuihcr, di- 1
oetor cf the General Motors aivi- I
>ion of the United Auto Workers.
Asked about it today, the Presi- i
lent said it was being studied by the
lew defense production office direct
id by William S. Knuchen, former
lead of General Motors. Mr. Roose- |
/ell added that the plan had been
jnlertakcn with the utmost serious- |
ness and with fine purpose.
He said it was a question of in
dustrial production th.it no one in
the administration would have any |
apinion about until it was thorough- 1
ly studied, but he derlarc.l if such a
plr.n could uc worked nut ;t would
be very helpful and consuiiue <■ real
contributi.il to the dciensc program.
Reuther's plan envisioned a 500 a
day output of all-metal pursuit
planes within six months.
Mr. Roosevelt declined comment
on a barrage of que tir.ns concerning
the war and America's defense pro
duction. j
Asked about a statement by a
spokesman for the German foreign
office that seizure by the United
States of tor«^;n ships interned in
her ports would be considered a
warlike act, Mr. Roosevelt replied
this country had no oflick'l spokes
man.
ROBBERY PROP.I I)
Raleigh, Dec. 27.—(AP)—Director
Frederick C. Handy sr»id today he
had ^assigned a State Bureau of In
vestigation agent to assist in the in
vestigation of the robbery of the
Aurora ABC store Thursday night,
night. Beaufort county officers si id
the store was robbed of about $360
worth of liquor.
RAF RAIDS
London, Dec. 27.—(AP)—The air
ministry announced late today that
British bombers attacked the Ger
man submarine base at Lorient,
Beaufort county officers said
today.
(O&athch
FOR NORTII CAROLINA.
Occasional rain tonight a'ul
Saturday; sliffhtly warmer in
central portions, tonight, cooler ill
the mountains Saturday.
WIND AND RAIN
SWEEP FLORIDA
Miami, Dec. 27—(AP)—One death,
' three injuries, residential property
| damage in three communities and
I unestimated crop damage "were caus
ed last night and early today by wind
and rainstorms sweeping across the
! Florida peninsula from the west.
U. S. Troops
To Man Base
Initial Army Garrison
Will Be Sent to New
foundland Early in
January.
Washington, Dec. 27.—(A)')—The
clispi'tch of ;in initial army garrison
to Newfoundland shortly will swell
In 50,000 or more men the forces al
ready in place to safeguard the?
Panama canal and the new hem is-.
phere defense line in the Atlantic.
The recent announcement that the
Newfoundland base vanguard would
depart early in January was .accept
ed in military quarters today as evi
dence of intent to man with a mini
mum of delay thf> string of offshore
bases acquired from Great Britain.
The force will be the first sent to
any of those bases. In Puerto Rico
;.nd Goantanamo, Cuba, howevet
and at the Panama Canal itself gar
risons ivne been built up steadily by
the Army and Marine Corps and are
scheduled soon to be further rein-1
forced.
Along the 4.000-mile irregulai |
triangular line, between Newfound-j
|:.nd and British Guiana on the South i
Americ"n continent and Panama,
possibly 100.000 soldiers, sailors and,
marines soon will be stationed on the j
basis of available estimates.
More Time
Also Needed
: ■
Defense Commission
Expert Says There Is
"No Bogging" Down
of Camp Program.
New York, Dec. 27.—(AP)—Wil
liam F. Carey, defense commission
expert on cantonment cons'fiction,
said today that new Army camps
now being built east of the Missis
sippi river would exceed their esti
mates of original cost "by millions
ol dollars."
Moreover, he said, it would be nec
essary to add "a month or six weeks"
to the estimated construction time of
the various units.
Returning from a three-montns
survey, Carey emphasised that there
was no "bogging down" of the con
struction program and declared that
what has been accomplished is noth
ing short of a marvelous achieve
ment.
Fou> factors were responsible for
the increases in cost and construction
lime. Carey said:
1. Heavy expansion of the facilities
after estimates were made.
2. Original estimates were made
"too low, anyhow."
3. Adverse weather—cold in the
(Continued on Pago Three.)
WARRENS NOT MOVING
New Bern, Dec. 27.—.Former
Congressman Lindsay C. Warren,
new comptroller general, who spent
a five-day Christmas holiday with
•his family at their home in Waihin«?
lon. N. C., said that his family will
not move t'-. the national capital un
til next September 1. His children
tire attending school, he said, and
next summer "could not be oried
away from the Carolina coast."
Babson Urges Confident
View Of Future, Realizing
Crucial Days Are Ahead
By KOGKK W. BABSON,
Copyright 1910, Publishers Financial
Bureau, Inc.
Washington, Dec. 27.—I address
my readers this week from the na
tion's capital, where I am spending
a lew days. With Congress still en
joying its Christmas holiday, the
legislative branch of our govern
ment is not functioning. However,
President Roosevelt is on the job,
as are the heads of most of the gov
ernment departments and commis
sions. In spite of an absent Congress,
{the city is very much alive. It throbs
with defense talk and I have never
|heard so many rumors in all my life,
j Most ot this talk is related to war
credits, priorities, aid to Britain, in
dustry, strikes, taxes, the farm pro
gram, peace plans, and reconstruc
tion. I sense in Washington a new
and greatly accelerated tempo. Mucn
remains of the post-Christmas holi
day spirit. Celebration plans for the
New Year are also already in the
air. But the people who live and
work in this city are very much
alive to our present situation. More
so than the people of most other
cities throughout the country, they
realize what we find ourselves up
against in this closing week of the
year.
Ilail and Farewell.
I venture to say that two days ago
(Continued on Page Three.)
Italian Army
In Albania
Reinforced
Greeks Launch Strong
Offensive, Italians
Suffer Heavy Losses;
Sea Raider Flying
Japanese Flag Shells
British Island.
fBy The Associated Press.)
The Italian command was re
ported to have thrown huge re
inforcements into the Albanian
conflict today as Greek dis
patches told of one of the fiercest
battles of the war raging in a
heavy snowstorm in the Klisura
sector, gateway to the north.
Advices from ine front said the
lighting was developing on a broad
scale both at Klisura Pass itself and
farther north, with the Greeks
launching a strong offensive and the
Italians suffering "heavy losses" at
tempting "to defend his ground inch
by inch."
Despite furious Italian resistance,
these advices said, the Greeks woiv
seizing new positions along with Itai
ian prisoners and war materials.
Numerous arti'iiery duels were re
ported.
Nauru Shelled.
On the other side of the world
a sea raider flying the Japanese
flag violently shelled the British
mandated island of Nauru in the
south Pacific at daybreak, it was
officially announced in Mel
bourne, Australia.
British sources in London left
unexplained the reported display
. of.thrfg Japanese flag, but said a
Gerirtan raider was known to
have been operating in that part
of the Pacific in recent months.
Australian Prime Minister Robert
G. Menzies said the raider, also bear
ing a Japanese name, opened fire on
Nauru shortly after dawn, inflicting
considerable damage but no casual
ties.
Rich in war-vital nitrates, Nauru
lies south of the Japanese-mandated
• Marshall islands, 2,200 miles south
west of Hawaii. The island was own
ed by Germany until 1914 when it
surrendered to Australian forces.
Air War Resumed.
Both royal air force and nazi war
planes returned to action alter the
three-day Christmas truce, with Brit
ish bombers pounding at the Ger
man-held "invasion" port of Bor
(Continued on Page Eight)
FINAL RITES HELD
FOR HAL KEMP TODAY
Charlotte, Dec. 27.—(AP)—Hal
Kemp, 36-year-old orchestra leader,
was buried here today. He died
Saturday in a Medera, Cal., hospital
of automobile accident injuries.
Among the famous figures of the
music world who attended the simple
rites were Kay K.vser, Stixie DoweJI,
Skinnay Ennis and Leibert Lom
bardo.
SHIP TORPEDOED
New York, Doc. 27—(AP)—Mack
ay Radio picked up a distress call
j from the British steamer Ardenbhnn
which reported she had been torpe
doed at 1:02 p. m., EST., today.
The steamer Rave her position as
approximately 600 miles west of
Scotland.
Moves To Aid
British Fleet
Expected
Washington, Dec. 27.—fAP)— Ad
ministration action to bolster Bri
tain's hard pressed merchant fleet
I was reported imminent today.
[ An authoritative source predicted
I that President Roosevelt would rec
ommend shortly that the United
States speedily build a large number
of merchant ships in a program com
i parable to the record breaking eon
j struction of World War days.
This informant said that the pro
I ject would be "extensive" and lit
1 into the plan which Mr. Roosevelt
1 has discussed for leasing or lending
i equipment and supplies to the Brit
ish.
It was not disclosed whether the
j proposed ships themselves would be
I made available to Britain or would
J be used to replace other tonnage
, which might be leased immediately.
Speculation continued in the capi
I tal, meanwhile, that the administra
j lion soon might take another step 1:j
. strengthen the British convoys now
striving to protect shipments of food
. end war materials from nazi sui
, marine and plane attacks.