TOL. ' ' ' ' " NUM?? warworn President Would Levy Tax OnBigSurpluses In Corporate Coffers a*?* . ? ^ _ ? . ? _ . i _ ?.? - iTopoflftsr swcejnasr kc* viaea q? GorporafcoH Tax Stpvctee to Boost Federal R^vatue Washiagtov Mmh 3.?A White House proposal that $$20,000,000 be added to cogpsrsie in&nlcjh sanaal tax bill through a ovajor revision of the federal revenue system today; ?tressed an obviously apprehensive Congress to immediate controversy. In a special message, President Roosevelt suggested that farm re lief and payeoeat of the hnaua be financed from a tax on profits which mcpotatimm- amass in then- treas ons* as surplus instead of distribot iog was dividends. Later, speaking* te the - press, he drew s broad distinction between reserve**?to provide working capi tal and cover depreciation of equip ment?and' surplus, which he said represented earnings, needed by the mnalter stockholders; which should be taxed or distributed. Called an "EriL" . Is both the memoes and-at-hut preu conference, he- condemned the accumulation oi andisCtttuted profits as a method - of evading1 taxation. I The message termed this an "evil*' J that "has reached* dmtnrfcing pro portions from the- standpoint of the | inequality it represents and of its! serious effect' en the- federal ieve-f sue." With some Democrats applauding! ?while others were openly critical*! or frowning; with many Republi-1 cans frank in their denunciation; and I administration leaders emphasizing that the Presides fa plan- was only a "suggestion,'* machinery was gear ed for starting^ ?- bill through Congress. Even as a- vigors as row developed on the House floor, the Ways and Means committee, which will frame the measure, relegated the whole sabject to a sub-committee which will begin its task tomorrow. Chair man Do ugh ton (D-N. C.) said open hearings before the full committee mould follow. t Unnt?nn . f It-Minn, i i touched off an explosive floor in tercharge with a critical speech. Minority Leader Saell added a caustic assertion that bat for cor poration reserves, unemployment would have beta greater. Representa tive O'Connor (D-N. Y.) accused the Kbpublicmm of already playing poli tics with the tax proposal. CaapM* Aaswsr. Chairman Harrison (D-Misa.), of thb Senate Finance committee, which wiB-ta**-charge- of the tax btf* When it emerges from the House, tensed the menage a "complete answer to those who- have been shouting about unbalanced budgets.1' He hoped they would "cheerfully pay their share." Mr. Rooeeveh suggested that he present' corporation income tax be replaced by a graduated tax on future undistributed profits, which some dose to the- administration thought might An from 26 to 41) per cent, and average 33 1-2. > This would have the effect of driving such profits out of corpora tion treasuries and into the hands of stockholders, which might pro vide funds for reinvestment, pro duce a mora rapid turnover of capital and, most important, would - ? ? ? I x- X make these rands suojeci u> ox* atioEL 1 The stockholders, would be re quired to pay the nonnsl income tax rate of four per cent and the surtax, a rate increasing with the sue of his income, on money tins received as dividends. At present, he pays only surtax on income from dividends. By repeating the present tax on corporation income and certain other corporate levies, the Treasury would lose- a year, vfcfle the new program would pro duce shout *1,820,030,000, the Pru dent est fmsfied, Tam 12CTUHKS Bit. S. L Isbeil of Lenoir, N. C, wQt speaks his tmb thsoach the Holy the Fhamrflte Christian ebareh Sandsy, March 8th at 7M p. m. He wiB also speak at the Farm rills Heabytarisa dmxeh Mon day, March 9th ah ?:? > bl, on his ly trasalsd soaatehst the fhrwriOa male ?**?.*- ' '? - > ' -"3^-.-*^- . . ;? ?>. ? ?. *\ - ahmhsasms* ? .-? -? - ' vtsfirf _ |jn ,, li i | r -' v r>\ ,v"i ' ?n nrrTT ? ? ii IN BALANCE Washington, March 3. ? President Rooaevalt, in hia tax menage today, reiterated hia contention that "with* out tfa* itema for relief?' his 1966 37 budget wee in. balance He added, however, that the fis* prerar Court's JULA. and rice miliars' decisions, and passage of cash bonus t payment legislation, had "adverse^ affected" the budget for both current and coming fiscal years tM 1 follows: v Deficite to date throagfc expendi tures chargeable to processing taxM; 1 less processing taxes collected, |28?r 1 oooooo ' 3 m expenditure* iox rcw bursing fanners for performance* ! under 1986 AAA-ctmttacts ptiot to 1 invalidation, $296,000,000. . 2 Estimated expenditures under the new soil conservation-snbudy Mil, 1440,000,000. . j Annual cost of boon* payments for nine years, $120,000,000. J - ^ Strong: Program Banned For Farm Broadcasts I ? * 1 With spring closing in fast, farm. ( people are beafly engaged in prepar-' iag for the new crap year. Realizing this, specialists at Stttt* . College are advising growers over the Carolina Farm Features radio j program as to the proper methods of planting and caring for the crop*. These fans broadcasts are heard each week day over a number of North Carolina - statin* * One of the Most important tasks at this time of the year is the start- 1 in* of baby chides. Mr. C. F. Par- ' rish, extension peultrym&n, haa pre pared a -talk on "The Feeding, Care, 1 and Management of Baby Chicks," 1 which he befiewes wiH be of much help, to the raisers. The broadcast j will be heard on Friday. On Saturday Dr. G. K. Middleton, of the Afrricultaral Experiment Sta tion,' will be on the air with a discus sion of "Corn Production in North ! Carolina." He will place emphasis 1 on the best varieties for the different sections of the state. * Officers Break lip Tehees i Theft BHtf; ??- 1 White Man. T5sw>v 11UVV U ??*?*' -???j ? "H Negroes Sentenced In , Greene County Court 1 Snow Hill, March 4.?Operating J in thi? section of the State for the ?, last eight or ten years, according to Greene County officers, three white men and two Negroes a to- ( bacco stealing ring were found ( guilty in Superior Court here dur ing the criminal term that ad- | journed Monday. "The gang has been stealing to- i bacco throughout Wilson, Greene t and Pitt counties for "the last ten i years, and headed by a white man, , had a regular organization," said Deputy Sheriff F. C. Carraway of , Snow Hill, who arrested the men , over a period of several weeks. , Ruffin Seamster, white leader of ( the gang, waa sentenced to six ytfln i in State prison by Judge FrizzeUe,* while Claud Wflliams, Negro, was given the aame time on the roads, and Otgar Joyner, Negro, and Geroge \ Brand, white, weA given ooa and < two years, respectively, on the roads. B. O. Robinson, white lieutenant , of Seamster, was given a five-year suspended sentence by the judge on condition that he waa not to take a drop of whiskey for that period. The ease Jesse lunar. Negro, who hid tamed State's evi The ris vm charged with lnrt? ing end entering, larceny and tea* ipiracy. ' . :V; Deputy Carraway said Monday that there were aevarml of the gang *01 at larg* but that he expected to dean up the net of then to toil near future. . . "The stealing of tobacco in 'thia said Carraway. ? ' ' i " t Tboee wtog the TVA phoapato in ?jft I ^ ^ ' a * "a -^a" a 1 ^ '? ? '?' *'<??" *?.??' ^ ' ? - I Matins TirlMMif lj Expawl Business ___________ ? * Tells Repartees How . Wealthy.) Stockholders CanHoardPrnfitB' W?hifgto>. f Mmrtt' UH&fcWt eriaa*tf thai hi*' ptupoaad tax on undivided cor<i ptettlotftttftiate* would''Imp \A cruel btaden oh h&sisess with tM ?Utoment' that It would expend QVQC PbUr hour* afttfr he had suhmH ted hit - tax- meeaage to Congieas, tho-mmluit patiently? explained to newspaper -how -the ureaefit iwtamnl manui- lgari- oor crate .to .benefit the wealthy jtBofe beliew etthe cxpeaee of tbeleee fortunate. Girae Lecture. Hr. fiooeerett begatt hia lecture in tax eeeaoaica to the reportera with the warning that corporation raaei-v? should'net be coufObed eith corporation aaiphisoei Any corporation, he explained, has - the tegaL. tight to set aside a certain MDWUt ol its earnings for expanJ pion, depreciatum, ate. He toek a hypothetical case in whfcfc he-and the reporters contmfi sd-fl~##r??ot' af the stock of a corporation, vdiile-160 other stoct bdlder* controlled the other 49 per sent When it'-cane time to pay flsidswdiy Mir/ Jbonaevelt went on; be and the reporters, having other lonrces of income,. decided to take the money that could have been pldd in dividends and expand the plant or put it the corporation's surplus fund. This; the^Ptaeidant- ohsireed,- is lot fair to the other 160 stoclchald ;rs in a 'iass fsjtunlhe position who mold hive used the dividends. A nere equitable way ef-haJdfing tMe irbblefci; he continued, would be to pay oat the nfet ?uitogi in dhd lends and then invite affluent stock lolders to purchase additional stock for expansion purposes. In many instances, Mr. Roosevelt aid, snail controlling groups have prevented - disbursement of net earn ings in dividends in order that more rash might be available to expand he business. If a corporation has a roge undivided -surplus and distrlb^ itea it to stockholders, be explained, the proposed tax would not apply, hi tfcht casr, the government would ret atfftrt of thesnoney through tax ngrthe divfddWs*n:tlitil by indivi iuals. In addition to incroasing the pur*' rhnang power of stockholders anil dills encouraging an expansion oft trade* Mr. guniili said the pro posed corporation levy likewise would operate to prevent needless ex pansion of some corporations tempt sd by vast stores of undivided wealth. Farm Work Is Good For Foaling Mares More colts will be born in North rtiwtliM iliii innViir dim at mv time taring the past 10 years, said R. H. Ruffner, head of the animal hus bandry department at State College. - A renewed interest in horses and moles has spread over the State, he ?aid, and the high price of good draft animals has induced many farmers to breed their own wotkatoek. The foaling mare does not need to Up* a great deal of time from her work, Ruffner .pointed out. hi fact, ordinary farm work is 'the best ex erdy da can get prior to foaling that He reeoinnModsd that she'work up to the day she drops hpr colt, then be pnm an eight-day Mfb After the rest, it is better for her and the colt if she retains to work. If I* some reason howigsrer, the dam and foal are not doing well, it may be heel te. prolong the rest parifd. Meanwhile, endeavor to as certain the trouble and correct it as quickly as possible. Before the colt is dropped, feed the man an abundance of legume hay. A 1,200-pound brood mare at fans work should get a grain ration rnmftH?K of 6 po?* <f earn, ? pounds of oata, and *8. pounds of wheat bran per day. The int two da7? oftor the colt JhBHr naah moraine and tdght, Pro wwnoraffflBi a V IHI wHIlf mm ' J. P. Owenc Sentenced To Term of7 to ? Yiears ForShcoting Tenant Snow Hill, March 3.-nA. F. Owens, Grtene county firttfef, Whs sentenced ftom awssttteoineycara in the Sthbe Prison Ante* f. Baal FritxeBe early this morning when /a juty Which hied deBhei'Sted fer an hour anti whatf fonnd him gttiity of raato idiillfKipr in-ithe death of Paul NetB eMWt^ h'WnaaV and of assault with Nethencufs son, Lyman. * Five hundred or, more persons Were in the court room when the jury brought in ita verdict It had Men expected momentarily since midnight when the twelve men, an hour after- having received the eeurt'r-charge* came back for minor instructions. ?? At 12il& the jury brought in ita verdict of guilty of manslaughter in the case- involving e Nethercrrtt'i death but had misunderstood the charge in relation to the shooting of the younger Nethercutt. In this ease prayer for judgment waa con-) tinned. | Upon the court's order to de termine the guilt or the innocence of the defendant aa to assault with! a -deadly weapon or assault with ini tent to kill, the jury deliberated 20f mtnntes longer before it agreed upon the verdict of assault -with a deadly weapon, the defense Monday bolstered its' ? ?? U.nJdti Tha afiAmmnl UiCJr UWW iawmnij ? ~ ?v ?? ?????!! , and early part ?f the night were! consumed with arguments by coun-' sel and tonight Judge Frizzelle de livered a two-hour charge. The defense Monday blostered ital self defense {dee with some of the State's own witnesses. Offering tes timony were Owen's wift. his two sons, and sixteen prominent men of this section as character witnesses. . The handsome now courthouse was crowded to overflowing and many women were present today for the first time during the trial Junius Moore, Negro, and former ly one of the State's witnesses, tes tified that as he drove up before the- Nethercutt house in his mule cart rtfce day of the shooting, Lyman NethsMtttthad just gotten out of his tntek end bad started advanc ing tewwd-Qvene, who was stand ing itf 4he?ned. "Hie**eta were belled up," said Moore today. He said that at the first shU' from Owen's gun, the mule he wee driving bolted, and ran down the road. Oweat, later in the afternoon, -J ^ 1 'fnfftHn falmmt Vafhax. cutt-and Shot three times at his son, Ljnmii Das shot missed the ^yaaroid' youth and two truck' hint Owens claimed he fired the shots inv self-defense. He spore the faOter wa? vanned'with a brick and thgt the youth' threatened to beat hint ? : is? SssHffml earlier today that Omens was the aggressor in a she months feud. He cried while Owens tori of fcldflfather'a ill feelings ts wsrd Irit^TIheyoath's mother, too, sojfced bitterly daring the testi money. . B. Hi OWens of 'foMWh brother of> the- man on trial, testified that jbe-^had been on the scene of the shooting: an hour after it occurred and he had seen evidence of a scuffle in the road. > | j He also corroborated Owen's testi mony by telling the- story as told to him by Owens himself the next w ? Mrs* Owens testified that Lyman had threatened Owens before the shooting.' She also corroborated bar husband's 'testimony.. Ailm onH ntvtn tVio ttmd, ?he stood out in contrast to Mii. Metheseutt who sat most of th* day today with her head in her hailrfa ; Character witnesses put on the1 ^iftd for Owens included Chief of Poice J. a Bryan of Fountain, For. met Sheriff i l; Jfettttry of Greene counts and f Whitley, chairman offlfc JBtord nf Conner Commission^ uf- Greene County. ; State Patrolman H* a Johnson, Sheriff J. X. Cobb of Snow fiill end Da#atyF. Ti CtofiMty testified cottsrning Ow*ns>>JMfc Johnson testified that they found Owens* pat with three empty shells and that Owen*> had said *t didn't aim the last wrt She Mid hfer kind said to Oim at tfe* kotti on the afternoon of the shoots g"11 he osi el par way in an ?aid ht nicest Lai Of Progress 'Alt Washington And la adjoining States ft Cited . . Raleigh, March 5.?The chaneefe tor control of the 1996 flue-cured tobacco crop thsough atateg con* pacts, authorised by Congress and enacted by the state legislatures, apt peered to Governor Ehriagfraus td have diminished even further yesteri day. In the- first place, with the plant* ing season dangerously near?es* pecially in Georgia and South' Caro* lina?no progress was reporoa irum Washington Hearts the Department of Agriculture is working 0* the bill to uuthoiiileiheeompacts: Apj jsiwtfy the bill has not beed drawn, much lees introduced. ? 1m the second [place, the Virginia Legislature bee passed a peculiarly worded compact hill which, in ef-i feet, would leave it-, up to the^GovJ ernor- of Virginia whether or not the states compact would be ef-i fective?and even he could do notE-* ing until and unless Georgia adopt-': ed some form of control "subatani tially in accord with the quota and) marketing provisions of the act." Voluntary Sign-Up. Governor Ehringhaus, in the mean time, was giving his attention to pro-' posals for a voluntary crop reduction; sign-up?apparently the only thing! left unless Congress comes through, South Carolina comes through and Georgia comes through with some plan for control without a control law which* would be satisfactory to the Governor of Virginia* ? In the meantime, a joint subcom mittee representing the State To bacco Advisory Committee and the executive committee of the State Farm Bureau Federation, will con /e. with South Carolina Legislatures today to learn if they are willing to join in a compact with Georgia on the outside, The wording of the Vir ginia law is expected to affeot the situation at Columbia, S. C., when the. North and South Carolinians meet today. Virginia's Ur. The new Virginia law includes the following! "This act will not become effective unless and until the Congress of the United States shall pan an act con senting to the establishment of com pictg sttch as are authorized by this act and thereafter tUs act shall be come effective with respect to flue cured tobacco upon the enactment of a similar act by the legislatures of the states Jof North" CaioHna, South Carolina and Georgia; altd shsdl be come ^effective relative'to burlisy to bacco -upon the enactment of a1 simi lar act of the legislatures of the states-of North Carolina, Kentucky <and Tennessee; and shall become ef fective With respect to flue-cured, idhrk air-cured tobacco upon the en actment of a similar act by the legis latures ufthe states of Kentucky and Tennessee: orovided. however, that: IwHir respect to flue-cured tobacco this act shall become effective for the 1936 crop only, upon the enact ment of a similar actortot*. North Carolina and Soul4i> Ctoolhmf if juul when the governor shall And aft r* fact and proclaim that in his-opinitn effective means have bMbt aMglsd to regulate by agreement or other wise the marketing and sale kind of tobaoco In Georgia substan tially in accord with the quota .and marketing provisions of this act" What ItMettSr : Governor RhringhauS, in a tele phone conversation -with Governor Peery of Virginia, yesterday asked the meaning of the words "effective means ... to regulate by agree ment or otherwise the - marketing and sale of such kind of tobacco in Georgia substantially in' accord with the quota and marketing pro visdons.of this act" . \ V. v (V Governor Peery replied tiudF. -as | be interpreted the provision it meant regulation in Georgia by legislation or soma voluntary phm^ With the Georgia erop 'aoon to go into the ground, the prospeet for > voluntary control plan "substan tially in a*xasdM with-Oh? jnwisions ai the proposed contract seemed very Biim to governor rinnngrumw _ V ton, the Governor'aent th? following telegram to Senat0 r: to^^^^5 ^'Beg^rdin ' ?&??! .-<?- ? : .v-;v' '^v: d? * - - - ? ? ? isrAmait# To Tobacco Ares liitm Says FuH Benet fits WfllBe Forthconu tag For Diversion of Acreage 0 ? Washington, March 8.?J. B. Hub son, chief authority of the Depart ment of Agriculture on tobacco, tot day authorised interested Congress^ men to inform their constituents that if they restrict their tobacco planting to 70 per eeni of the base 4ensaget established under the AAA1, and plant the diverted acreage in soil-conserving crops, they will Be entitled to maximum benefits under Aj? ? sntl .. MAflkm^An farm bill which has now become law. Although it will be two weeks lor more before a definite program lis announced by the Department of Agriculture, the - Congressmen who gathered 'today to discuss the) nkatter with Mr. Hutson and other I officiate felt that they had made! Very important progress in obtain ing: the above commitment audi they also felt that they made equal-j ly definite, although less concrete* progress toward their second o5-' Jective, the securing of a sufficient' amount of money to make the program effective. Mr. Hutson's goal il a 640,000,000 pound crop of flue-cured tobacco, a reduction of 20 per cent from the 1986 crop of 800,000,000 pounds. a 1 ' ? ; "How much tobacco will North Carolina fanners plant" and harvest this season with normal weather con ditions and no control program," is the question many county planning committees are debating now. New Hanover farmers, interested in the deficiencies of minor plant food elements in their soils, are try ing experiments with copper sulphate and are finding that it eliminates some of the troubles they have had With truck crops. PffflptftlS Mrteay Again t . ~ Major Drainage Under taking Resumed With Funds Totalling $154, 000. } Raleigh, March. 4. ? Operations hate been started on the Swift Creek malarial control project in Pitt coun ty, and {undertaking to coat $1544)00, {State WFA Administrator George W. Co an, Jr., announced yesterday. One of . the largest drainage proj ects in the State, the project was k.?n-..n nndav fko flWA. continued! W^5V4*fc UMMV* ?*?V V , by ERA and now is to be completed with $104,000 of WPA funds and ($50,000 from local sources. Contracts for dredging equipment to'be used on-the job will be let im pediatefly- by the procurement de partment of the United "States Treas wury here. Mr. Coan said. The proj ect will :bb supervised by. the State jBaaid of Health and the WPA. Efforts to insure completion of Ithe project have been under way for [many weeks and the help of Mr. fCoan and . Congressman Lindsey Warren were enlhrted to secure an ja) location. The district to be {drained covers h large area known | as Muddy Creek Swamp near Ayden and extending almost to ipenville. I - uithorizing legislation was impossi rife. at this Congress or in time to | :ootardl this year**' crop and that j, idoption of state compacts controU i this year's crop must be aban j loned. Will you please advise .me mmediately as to this and also, first,' has bill authorising compacts yet Went prepared by agricultural de jartment, second, has bill- approved ?y-.department-been introduced, third, faU department support the- hill in Congress, and urge passage this sea Ion, and fourth, what in your opinion fa probability of passaga this sea fa" . , ' , Whether or nbt. a voluntary sign fa was possible st this late hour fife Governor was not at ?U certain fat hfe ciAled upon the leaders off she various farm oramisationi and ' ' Believe Legislature Will Be Called If Congress and South Carolina Act /-? . Raleigh,'March' 4.?Leaders of the tobacco. farmers of Eastern North Carolina yesterday told Governor Ehringhaas that the giowen were ready to enter a crop-coatrol com pact with other, flue-cored tobacco states, even though Georgia stayed out; bat they were not willing to enter any agreement if both Georgia and South Carolina stayed out. The Governor's response to the growers' suggestion that the Legis lature be called into special session to enact a tobacco control law if (1) the compact act is passed by Con gress and if (2) all the other tobacco states but Georgia fame in, was termed "entirely satisfactory" by members of the two committees wxucu aiscussea cue problem with him. They were the State Tobacco Adviory Committee and the execu tive committee of the newly organiz ed State Farm Bureau Federation Go To South Carolina Immediately after their confer ence with the Governor the two committees met and appointed a sub-committee to go to South Caro lina and confer with members of the Legislature in regard to the proposed compact. The joint com mittee was inclined to the opinion that if South Carolina came in, North Carolina would be willing to do the same thing. . In the meantime, the thought that "something must be done" spread throughout the belt but in many quarters is was accompanied by - the misunderstanding as to the situa tion in Washington. Many believed either that Congress had passed a law authorizing the states compact ?a thing which cannot be accom plished without an act of Congress? while others did not know that con gressional action was necessary. The brightest spot on the horizon was the report from Washington that although the compact act would not be reached for at least two weeks, farmers who volun tarily cut their tobacco acreage to 70 per cent of the base under the aW AAA artrl nlonfiwl fV^o onmoorn V->? * *-* " *-J *<?* IM ^MiMAVVV .VUV taken out of tobacco in soil con servation crops, would be entitled to federal benefits^ ' Considers Mass Meeting. The tobacco advisory committee yesterday had before it the sugges tion that it call a mass meeting of tobacco farmers to meet in Baleigh jin the immediate future, but took no action on it. Members of the committee sent to Columbia were C. T. Hall of Woods dale, J. A. Brown of Chadbourn, W. E. Eagles of Macclesfield anf (Lionel Weil of Goldsboro. The meeting in Governor Eh ring haus' office and the subsequent meeting of the two committees were jbehind closed doors yesterday and too formal announcement was made, members of the committee left it, however, feeling % somewhat more hopeful and apparently reassured that the Governor was willing to act, even to the point of calling the legislature,, if, as and when Con gress passes a tobacco Btates compact Authorizing action and the legisla tures of tobacco states now in ses sion get into line. farmers Concerned About Weed Prices 4 . ? Wilson, March 4.?--Pointing out hat the farmers of Wilson County Received $1,014,610.51 from the AAA in parity and rental payments dur ing 1984 and 1935, W, L. Adams, Wilson farm agent, declared Tues day morning that the farmers of the ennnfir nr?w vpto much unset hV the condition that is now facing them and are asking, "How are we {6 get along the coming fanning season?'' . ?' . The farm agent said that unless something, is done for the tobacco farmer in this-section that tobacco is liable to go to 10 cents a pound the coming season which would be ruinous. ? ^ < j ' Tobacco farmanlof Wilson County received *707,068.06 in 1934-35 in AAA. 'fffiy- end- rental payments,, Mr. Adams pointed out; a fact that ^ras instrumental in an indirect way. of bpoafcip^ the prices- of tobacco in this section 4>y the acreage re duction program. Adams urged the fansat^Mon day to produce all the fosdiij^ feed needed and sis# wmit *cfah tinned efforts for soil conservation. f ; , <? J . ?...' - ????.!.. : i Johnston County ? poultry, growers apld 6,264 pounds of surplus hens At the car door fit a cooperative ship ** , ?; : AH the farm owners from Faro ville to BaUands Cross Roads in Pitt Qmnty are planning to. pnt out rat baft' in tt cooperative effort to con trol the rodsnta

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