I********
* THE WEATHER
* Generally cloudy to
* night and Sunday, po?
* sibly showers. No change
* in temperature.
********
Phone 357 For Space In The National Publicity Edition
Rtili
*******
*
* CIRCULATION
* Friday
* 2.258 Copies
*
*******
VOL. XIV. FINAL EDITION. ELIZABETH CITY, NORTH CAROLINA SATURDAY EVENING, MAY 10, 19:21. EIGHT PAGES. NO. 112.
Presidential Veto's Likely
On Senate Tax Bill Proviso
Business Views With Alarm Law Which Would Compel ("oi
porations to Distribute Profits in Dividends Kather
Than Accumulate Reserves for Expansion
Hy DAVID UAWRENCE
U24. By Thi Ainnei)
Washington, May 9.?The biggest issue that has yet been
raised in the taxation controversy in Congress?and one that
may bring a veto from the President faster than anything else ill
the pending bill?is that provision adopted by the Senate which
would force corporations to distribute practically all their earn
ings.
Business men who have stud
ied the provision are almost a
unit in declaring that not only
would the prosperity of the
country be undermined if such
a thing became law but that in
terest rates would be forced up
ward-and the business expan
sion of the United States would
be seriously impaired.
A coalition of Democrats and In
surgent Republicans has forced the
proposal Into the Senate bill and the I
administration will make a deter
mined fight in conference to have it
eliminated.
Reduced to its essence the provi
sion means that big corporations
which have always retained a large
portion of their earnings as a mar
gin of safety against fluctuating con
ditions in the world of industry
would be compelled to pay out their
accumulated funds In the form of di
vidends. Then if they needed money
for expansion or for emergencies
they would have to borrow. Undoubt
edly they would be compelled to ask
bankers to float large bond Issues
from time to time. This maens a
commission to the lenders together
v with Interest rates that would com
t)Cte with other Investment offerings.
a>?d it Is acknowledged that some
private businesses must pap'tMpn for
ifcelr money In the open market fre
quently than others, depending up
on the character of the business and
Its appeal to the public as a safe in
vestment. The cheapest way to bor
row money has been for corporation i
to accumulate a surplus and usa
their own funds for expansion wheii
needed. Th? proposed tax law would
deprive them of that opportunity.
The theory of the proponents of
the measure is that a large sum of
money annually escapes taxation be
cause it is not distributed In the
form of dividends. Senator Jones
of New Mexico contends that for sev
en years, from 1916 to 1922 Inclu
sive, the total Incomes of corpora- ]
tions upon which no surtax was paid
amounted to $27,000,000,000. Onlyj
$18,000,000,000 out of a total of
$45,000,000,000 earned In that pe
riod was distributed in dividends.
Senator Smoot, however, does not
think that Is necessarily abnormal
or done with an Idea of escaping tax
ation, for he cites figures from 1910
to 1916, before the high surtaxes
were In effect, which show that thy j
corporations averaged 53 1-2 per
cent of their profits In distributed !
dividends; while from 1917 to 1922 i
about 140 of the largest Industrial
corporations of the country averaged
65 per cent of their profits in divi
dends distributed. He points out
that a Treasury document show-i
that for all corporations during thej
year 1922, the distribution of profits
amounted to an average of 65 per j
cent of earnings. On that account,)
he declares the Industrial companies
which would be penalized by the new j
law are the very ones who ar<? Inno
cent of the wrongs which the Sen
ate is trying to corretc.
The provision already Incorporated
In the bill Is a graduated tax. Thus!
If 30 per cent of the earning of a]
corporation are not distributed. th>;re
?will be imposed a five per ont tax
on the undistributed 30 per C' nt.
This Is entlrey aside from the nloej
per cent on all net Income which In
distributed. The tax runs upward to
a maximum of 40 per cent tax If the
undistributed Income of a corpora
tlon Is more than 58 per cent of what
la known as "the surtax net Income."
The Treasury Department Is vlg
orously opposed to all this cn th?|
ground that the present revenue Ijw
contains a sufficient safeg.ir.rd
against this form of tax evasion. The
Secretary of the Treasury la empow
ered to Impose a penalty whenovsr
he dlacovers that corporations are
holding |n their poasesslon :n>r^
funds than they actually need for
thoir business, This means thfit the
burden of proof la always on the cor
porations and the power of Imposlnr.
a penalty la not medatory but dis
cretionary.
TO TAKK NICOTINE
OUT OF TOBACCO
Paris. May 10.?The State Tobac
co Factory laboratory haa discovered
a process for removing all nicotine
from tobacco without. It la claimed,
affecting Ita flavor. A plant la be
ereeted for the manafactare of the
on a large scale and It
COP ROUNDS UP
SPEED OFFENDERS
County Commissioner*
Worked So Noiselessly That |
Nobody Knew There Was a
Motorcycle Officer.
Working swiftly and noislessly the
County Commissioners of Pasquotank
County have employed a motorcycle i
officer, put him on the Job, and he i
with as little warning gathered in a
round dozen unsuspecting motorists
on his first day Friday.
The new speed cop is F. M. Quen
steadt. He has been in this section
for about two years and lives on
the (Newland road. He came to this
vicinity from Milwaukee.
Mr. Quenstadt has had no actual
experience as a civilian officer but
gained his training as a M. P. dis
patch rider and quartermaster ser
geant in charge of . transportation
while stationed at Fort Du Pont,
Delaware.
His first flock of arrests were on
charges of failing to stop at railway
crossings in violation of the State
law. The fines were likewise
| the same, $1 and costs. T. J. Mark
| ham presided in the absence of Trial
'justice Spence.
I Here are the victims: W. J.
Brothers, J. M.'LeRoy, Elton Prlt
cbard. Bill Jones, R. Cartwright, and
E. R. Conger; two colored men
William Thompson and Sam Reid
[and three others whose cases were
| continued until Monday. E. Lane
i was also arrested by the new officer
I hut was found not guilty. Most of
j the defendants were much surprised
and chagrined at the suddenness
with which the general habit of pass
ing crossings has been interrupted.
Other cases on the recorders doc
ket Saturday morning were: Sunny
Freshwater, colored, no lights, costs;
McKinley Mldgett, speeding, $5 and
costs; Henry Price, speeding, $10
and costs; and Herbert Evans, bright
lights, $1 and costs. The city police
force presented the latter cases.
SERIOUSLY INJURED
WHEN DERRICK FALLS
John Ames, workman employed on
the new Auto Tire and Vulcanizing1
Company Building at the corner of]
Matthews and Poindexter streets,!
was seriously injured when the der-|
rick on which he had climbed fell
Friday afternoon at about 5 o'clock.
The building Is being erected by
L?. B. Perry on the Love property
Just bark of Mitchell's Department
Store. The brick work has been com
pleted and the workmen are now
placing steel girders to support the
roof. The derrick Is used In hoist
ing the girders and during the op
eration It became necessary for Mr.
Ames to mount to the top.
Bystanders say that a guy rope
steadying the derrick parted, causing
the drop. Ames fell heavily on the
ground beside the derrick and was
thought at first to have been seri
ously hurt.
A physician was summoned im
mediately as a crowd of 25 or 30!
gathered at the scene. No bonrfej
were found to have been broken, i
and Ames was taken to his home
rear the Pasquotank Hosiery Mill i
at his own request, although Mr. i
Perry offered to send him to the i
hospital. He did not complain of;
pain when he was lying still but hlsl
face betrayed suffering when he was!
moved into an automobile to be
taken home.
HOOVER POSTPONES
HIS APPEARANCE
Washington, May 10.?Secretary
Hoover postponed his scheduled ap-!
pearance at Muscle Shoals hearing
of the Senate agYiculture committee {
today at the request of the commit- j
tee chairman because several wit-|
ripoHfg found it necessary to return!
to their homes. The date will be set
next week for his appearance.
fOTTON MARKET
New York, May 10.?Spot cotton'
closed quiet, Middling 31.26, 35 ptal
decline. Futures, closing bid, May
29 98, July 28.75, Oct. 25.00. Dec.
24.38, Jan. 24.04, March 24.12.
New York, May 10.? Cotton fu
ture* this morning opened at the
following level*: May 11.40; July
October 15.10: December
'Sunnv Jim'
, The "bunny Jim" price, coveted1
trophy of Bryn Mawr College, hat
been won by Elisabeth How* of
.Fulton, N. Y. The prize Is given?
annually to the "outstanding per*
4eon of the college" and the char
i acterl&lics considered are person
allty. cheerfulness, good spoils
'^oanshlp and falrmlndedness.
WIN IN CONTESTS
HERE FRIDAY NIGHT
MUs Rachel Williams won the
medal in the recitation contest Fri
day night at the high school here.
Her subject was "The Lament of
Hagar." Her opponent* were Miss
Oscie Davis, reciting "Speak Up. Ike,
and Spress Yourself;" Miss Mary
Dozier, "The Wheels of Time;" and
Miss Anne Melick, "King Robert of
Sicily." The contest was extremely
close.
In the declamation contest Wil
liam Perry was the winner, his sub
ject being "A Southern Court
Scene" and his only opponent An
drew Bailey, whose subject wan
"Catallne'B Defense."
The medals are given by Supt. S.
L. Sheep and will be presented at
commencement. After the contest*
two former medal winners spoke. El
gin White on "The Home and the
Government" and Jack Jennette on
"Immortality."
Thr Judges were Dr. J. H. Thayer,
Mrs. F. A. Flcquett and Miss Marie
LeRoy.
SIMMONS REVENUE
BILL PASSES SENATE
Washington, May 10?The Senate
yesterday passed the Simmons Rev
enue Bill in the face of the opposi
tion of President Coolidge.
William II. Anderson j
Appeal** From Sentence j
New York, May 10? William II.
Anderson appealed yesterday from ]
his sentence for forgery in connec
tion with the Anti-Saloon League.
MEMORIAL DAY IS
OBSEItYEI) FRIDAY!
Mailo It) J. ken,\oii W ilsoii
at ('onfwleitite Monument?Onl>
I-our Veteran* Present
Only four Confederate veterans
w??re able to attend the Memorial
Day exercises held by the D. H. Hill
Chapter, Daughters of the Confed
eracy. here Friday afternoon.
The address was delivered by J.
K**tiyun Wilson after the invocation
by Kev. George F. Hill and patriotic
songs by school children.
The children brought offerings of
flowers in the morning to decorate
the Confederate monument as well
as the graves of veterans in both
cemeteries.
"The children were especially
generous in bringing flowers this
year." declared the Daughters, and
"we wish to thank them heartily for
their co-operation."
Mr. Wilson's talk on the Confed
eracy was greatly enjoyed by old
and young.
Saturday at noon the veterans
were entertained at dinner at the
Linden by the D. H. Hill Chapter.
FARM RELIEF BILL
BE TAKEN UP SOON
Washington. May 10.?Definite
decision to have the House consider
the McNary-Haugen farm relief bill
at this session of Congress todav
was reached by Republican leaders.
Assurance was given supporters of
the measure that It would be taken
op by the House the last of ne?:t
week or the first of the week fol
lowing.
AGED MAN BLOWS
HIMSELF TO BITS
Newburg. N. Y., May 10.?Peter |
Van Nest, aged 72. today committed I
suicide by blowing himself to pieces
with blasting powder in the bedroom
of his home.
GIRL IN FACTORY
LEAPS TO DEATH
New York. May 10.?Josie Lom
bard. aged 22. today leaped seven
floors to death from the window of
the factory where she was employed.
Friends said that she had been jilt
ed.
KILLS HUSBAND AND
CHILD, THEN HERSELT
Saltvllle, Va., May 10.?Mrs. Ro?a
St. Clair, aged 36, today shot' and
killed her husband, Robert, and her
little daughter, aged two years, and
then turned the gun on herself, end
ing her own life.
The tragedy occurred at the homo
of the woman's sister, where aha
came on a visit Thursday from Roan
oke. St. Clair was her third hus
band. marrying her on May 5. Mrs.
St. Clair is said to have been de
spondent for some time.
EAGLE CAPR INSTALLS
MODKItN SODA FOUNTAIN'
The Eagle Cafe has installed a
modern sanitary soda fountain and
will serve all popular drinks, mak
ing a specialty of handling Wine
kream Sunday orders.
Easy Prove You're Insane
But Proving Contrary Isn't
And So Found Luckless Newspaper Man Who (>nl Himself
in Hoosegaw Easily Enough But Found It Different
Matter to Escape Asylum for Demented
By 3. Xt. MrDQNAM)
(Copyright. I?l. B? Tli AivirmI
Des Moines, May 10.?It's an easy ed nervously:
as rolling off a log to get yourself;
adjudged Insane?an many followers
of celebrated murder trials long
hare suspected. But onre hav-J
Ing proved yourself unbalanced, It's
something else again to prove that
you are sane. These facts have Just J
been clearly demonstrated in Det
Moines by John L. Splvak. news
paper man with n penchant for,
"stunts." j
Asalgned to test out the theory
that there is a lot of buncombe about
insanity pleas In criminal trials.
Splvak sallied forth and got hlmsolf
locked up as a dangerous "nut" l*i
less than half an hour. All he bad to
do was to talk grandeloqucntly!
about his millions.
Hpivak motored to police head
quarters In a taxi-cab and asked Im-j
presslvely to see the chief. Con
fronted by that official, he asked the
loan of four armed guards to convey ?
a larg ? Hum of money from a local
bank to a New York train. That
seemed reasonable enough, and the
chief consented. Hut when the
guards appeared and Bplvak announ-j
ced that th??lr task was to convoy1
"seven hundred and ninety six mil- ]
lion dollars" which he was taking to
the metropolis as a down-payment
on the German reparations, he was,
rushed quickly Into the hoosegow. ;
There he staved for three.days,
waiting a hearing before the state
Insanity board. Ho helped hit case
In Jail by bidding up to $3,000,000
for a cigarette, and. promising his
cell mate to kill him. but not to do
H nntll It got nlca and dark.
? KlkU IV.
"That bugger Is getting worse
every minute."
By the time h? got before the
state insanity hoard he had heroine ?
disheveled and grimy. His announce-)
ment that he had no permanent
home, but lived transiently in Lon-j
don. Paris, Vienna, and Moscow,]
and that he had been locked in a
cell without explanation "while
France weeps for reparations" was
enough for the august insane hoard.
He was adjudged a hopeless lun
atic and ordered committed to the
state axylum at Clftrloda.
"Really, I am not innane at all"
Spivnk then confidcd to the board.)
"I'm Just a newspaper man, out on;
alignment to test the insanity
laws."
"Ha, Ha," said th<- chairman of
the board. 'That's a good one. Now
I'll tell you one."
Bplvak exporitulated and pleaded
In vain. All he got was sad, sym-|
pathetic shakes of the head, excla>,
matlons of "yes, y*-s, ww. under
stand" ? and confinement In a
strait jacket.
It took the combined efforts of
Splvak's newspaper conferees* from
managing editor down, a stack of
affidavit*, and a lot of argumenta
tion. to convince authorities that
jSpivak was not a dangerous maniac.
Spivak concedes that h^could
not have passed the j)h**wHtc?t?.j
having to do wlLb so
w flSHPrcii
"proTlng" that he hid ? purely
mental tviM of lnn?it? ik.
TIP FROM MOTIIKK
bi<im;s in i.iqcok
(Newark, N. J.. May 1i>.?A?aliim
on what ho declared was a lip from I
a mother who said her "daughter|
had been ruined by gin" K?d?*nil
Prohibition Agent Lufura of tile
New York Divisional Office today!
seized high grade liquors which he.
valued at $150,000 at the plant of
the Ritz Chemical Corporation. Two
men were arrested.
Dr. A. W. Crawford to
Speak lo Presbyterians
Dr. A. VV. Crawford. D. D. super
intendent of Home Missions in the
North Carolina Synod, will preach at ?
Cann Memorial Presbyterian Church j
Sunday morning and evening. His
message will be of Importance and
interest and the pastor. Rev. F. H.
8cattergood, urges his congregation
to be present and invites the public
generally to hear Dr. Crawford.
AVOCA - EDENTON
FERRY SERVICE
To he Inaugurated Monday I
and Make Three Hound I
Trips a Day on Convenient |
Schedule Is Announcement j
A passenger and automobile fer-j
ry service between Avoca, Bertie i
County, 'and Kdenton, county seat
of Chowan, begins Monday morning
at seven o'clock and will be operat
ed on a schedule of three round
trips daily, it was announced here
today by B. U%?Will-is?of--Eduntun,
manager of the ferry, which has been
christened the Salmon Creek Line.
This ferry has been established
Ipending the construction of a bridge
across the lower Chowan River,
which it is hoped will be provided
for at the next session of the Gen
i oral Assembly, not only to link up
I the county seats of Bertie and Chow
inn by the most direct route, but al
1 so to accustom to the proposed
route of the Coastal Highway
through the counties of the Albe
marle. _
Leaving Willis Landing'at "Avoca
at seven o'clock a. m., at 10:30 a.
ip.. and at 4:30 p. m., and leaving
Edenton 9 a. in., at 2:30 and 5:30
p. m., on regular schedule, Mr. Wil
lis announces that extra service may
be arranged for day or night as need
ed. The fare is 35 cents each way
for passengers, and $2.50 to $4.00
each way for automobiles.
As the Edenton terminal is at the:
foot of Broad street, it would seem
that Bertie farmers desiring to trade
in Edenton may arrange to leave!
their cars on the Bertie side of the
river is desired.
Makes More Friends
By Griinesland Speecfi
Grimesland, May 10 ? The com-.j
mencement address at Griinesland I
High School was delivered Friday by
E. F. Aydlett of Elizabeth City, can-j
didate for the Democratic nomina
tion for Congress from the First
Congressional District, before a
large and appreciative audience.
Mr. Aydlett won many friends for
his candidacy by his splendid speech.
Indications are that the voters of
Pitt County are turning more and
more t<5 the Elizabeth City man as
their choice for the nomination. He
makes a fine impression wherever he
speaks.
TWO MARK ESCAPE
FROM STATE PEN
Raleigh, May 10?Armed with
knives and forcing an overseer to
give them his pistol. Otto Wood.!
serving 30 yenrs in connection with
the slaying of A. W. Kaplan of,
Greensboro, and J. If. Blames, serv
ing five years, stole the prison physi
cian's automobile today and escaped
from the North Carolina pentlten
tlary.
KKKF/T1VK JITY IhI
Washington, May 10.?The Jap
anese exclusion provision of the Im
migration hill will become effective
July 1 under the new agreement
reached today hy a House and Hen-,
ate conference.
ATTEMUXtJ MKKTINO or
TUB AMfMM'IATKI) I'llKHH
Herbert Peele, editor of The Dally
Advance, Is in Kaleigh attending a
meeting of the Associated Press. j
CLAIM MeADOO WILL
GET THE NOMINATION
Chicago, May 10?McAdoo head
ouarters here claim 425 delegates to
the convention In New York and say
their man will be nominated.
OR. SLEDD'S POEM
ADOPTED FOR STUBS
Wake Foroiit, May 1#?Infor
I Inn received here In Llial * poem'
i
K. 8I?&
of KniclSIt
curricula^
Th# I*?
Iran and
FUMES IN TUNNEL
CAUSE DISASTER
Many Persons Overcome
Wlien Traffic Increases on
Account of Strike of Street
('ur Motorineu.
Pittsburgh, May 10?Scores of per
sons won* overcome by automobile
exhaust fumes in the Twin Liberty
Tunnels through the South Hills
here today.
Increased traffic in the tunnels
as a consequence of the strike of
3,200 street car motormen and con
ductors caused the tubes to become
choked with gaaes.
First aid crews of the United
States Bureau of Mines and the
city fire department were rushed to
the scene.
The tunnels were closed to all
traffic and the rescuers carried out
the men and women who had col
lapsed. A number reported in a se
rious conditions were sent to hospi
tals.
JENKINS CASE WILL
GO TO JURY TODAY
Lexington, N. C. May 10 ? The
case of L. C. Jenkins , former chief
of police of TliomasviUe, on trial for
murder, will go to the Jury today.
| IHt. MATTHEW SMALL AT
FI1WT CHRISTIAN CHURCH
| Dr. Matthew Small of Indlanapo
| lis will speak Sunday morning at
11 o'clock and Sunday afternoon at
I three o'clock at the First Christian
j widely travelled, well Informed, and
a fluent speaker," says the pastor.
SYRIAN IS ELOGGED
INTO UNCONSCIOUSNESS
Maxton, N. C., May 10 ? Fred
Marrion, a Syrian, was taken out In
i to the forest near here and flogged
! into unconsciousness last night by
| four men.
HOUSE TURNS DOWN
COOLIDGE SUGGESTION
Washington, May 10?The House
| yesterday refused to accept Presi
dent Coolidge's suggestion for the
' postponement of the Japanese exclu
sion until March 1, 1925.
MRS. HUBERT WORK
DIES VERY SUDDENLY
Washington, May 10 ? Mrs. Hu
bert Work, wife of the Secretary of
the Interior, died of angina pectoris
suddenly yesterday while riding In
| an automobile.
DR. SAM SMALL TO
SPEAK HERE SUNDAY
Dr. Sam Small, well known orator
and editor of the South, will speak
at Black well Memorial Baptist
[church Sunday morning at 11
o'clock and at the First Methodist
church Sumtay evening at eight
o'clock. A cordial invitation is ex
tended the public to hear him.
BANDITS FLEE WITH
HAGS REGISTERED MAIL
Richmond. May 10?Seven auto
mobile bandits today held up the
Fast Chicago post office at Indiana
harbor and fled with four pouches
of registered mall.
m:\ ivm, at rALVAHV ih
l\( I{KAHI\U IN INTKRKHT
The revival meeting at Calvary
Ilaptiat church in which Kvangellat
W. O. Hughes In annlntlng the pantor
Is increasing In Interest at each even
ing's aervlre*. The main auditorium
(if the church wan filled to over
f low In k Krlday night and many were
Heated in the annex. Mr. Hughen'
KtihJ.-ct wan "The Revival We Need"
and when he had concluded about
forty young people went forward and
. ;>\< 1^ (1 their allegiance to the
church.
Mr. Hughen' aubject tonight I*
"Christian Influence". lie will also
preach Sunday afternoon at 3:30 and
Sunday evening at eight.
IIKItT MMAIIJ.K'H riiWKIts
ItKADY Toll SHOW TONHJI?T
I#ocal play-goer* welcome today
Hert Melville and hln associate play
era who will nhow tonight under
their large water-proof tent and will
be here all next week.
Tonight In ladle*' night and ladle*
who are accompanied by one paid
adult will be admitted free. The
play for tonight I* entitled "The Law
of the North." a comedy-drama In
four act* and with five big vaude
ville act*.
It I* *ald that the orlKlna) "Tabjl'
In with thin Show and <
can prepare for a ?ppfd 1aw*n, ft Ih
al*o un<jo*Hoo<i thlfl I* iMf
lh?l apprarnl In KUinDPtti
ci,d
AT COCJiTV HOMK
conduct mrrldk**'Atl the Count?
X?gjlo3 mbm?3 q|