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DEVOTED TO THE CIVIC, ECONOMIC AND SOCIAL DEVELOPMENT OF ALLEGHANY COUNTY
Volume 11.
GALAX, VA. (Published foi; Sparta, N. C.) THURSDAY, MARCH 12, 1936.
10 PAGES
Number 43.
DISCUSSING TAXES
Idling dlong last week and wait
ing for, the President’s message
on tjgcds, Congress found plenty
to woMk on after the President
recommended sweeping changes.
Discussion continues, with much
difference of opinion; but with
Congress nevertheless impressed
by the fact that when appropria
tions are voted, taxes must be
levied.
Reviewing the fiscal policy of
his Adminiostration, President
Roosevelt maintained its funda
mental soundness assuring the
members that receipts of the Gov
ernment are rising definitely and
sharply and that Federal expen
ditures can be reduced so that
the increase in government in
come will be able to pass “the
declining cost of relief.” To main
tain this policy, the President in
sisted that it was necessary to
make good the loss of revenue
caused by the Supreme Court de
cision and the increase, in ex
penses caused by the adjusted
compensation payment act.
Breaking down the figures, Mr.
Roosevelt pointed out that the Su
preme Court decision adversely
affected the budget by one bil
lion, seventeen million dollars, as
follows; (1) a deficit due to a
failure to receive processing taxes
to equal expenses they were ex
pected to pay, $281,000,000; (2)
expenditures approved in appro
priation act, 1936, $296,000,000;
(3) estimated expenditures under
soil conservation ,and domestic al
lotment act, $440,000,000.
This sum of mare than a billion
dollars, which must be raised to
keep the budget in line with ear
lier estimates, includes a perma
nent annual cost of about $500,
000,000 for farm relief provided
and also the estimated net loss to
the government through process
ing taxes which have not been
collected. However, in addition to
the money required for the far
k mers, the Congress has been asked
to provide a sum to meet the ad
ditional cost of paying the ad
justed compensation certificates of
the veterans this year instead of
in 1945, when they would other
wise have become due. To do
this, in nine years, will require
an annual charge of .$120,000,000.
Therefore, the President wants
permanent taxation to provide
$620,000,000 but he makes plain
that the money for the farmers
is a substitute for the old process
ing taxes and only that .required
for the bonus payment is new
taxation.
PRESIDENT’S SUGGESTION
While leaving to the “discretion
of Congress” the method of rais
ing the revenue, President Roose
velt offered a suggestion, which
is the basis for the widespread
discussion now going on. To be
gin with, the President would re
peal taxes which have been count
ed on to produce approximately
a billion dollars a year and in
their place levy a “proper tax on
corporate incomes (including divi
dends from other corporation”)
which is not distributed as earned.
He would repeal: (1) present cor
porate income taxes which are
expected to yield $286,000,000;
(2) the capital stock tax, estimat
ed to yield $163,000,000; (3)
the corporation excess profits tax,
estimated to yield $5,000,000; and.
in addition, (4) eliminate, the
present exemption of dividends
from the normal tax on individual
incomes. The rate of the tax, he
said, should be so graduated and
fixed as to yield the same revenue
as would be yielded “if corporate
profits were distributed and taxed
in the hands of stockholders.”
NEW CORPORATION LEVY
Thus it will be seen that the
new tax on corporate income
would be expected to raise
enough to offset the billion to be
lost through taxes repealed and
the $620,000,000 required for
farm aid and to amortize the
bonus payments. There still re
mains to be discussed the Presi
dent’s suggestion of methods to
restore to the Federal Treasury
the amount lost through the court
decision throwing out the process
ing taxes. Again, with deference
to the “discretion of Congress,”
*Mr. Roosevelt suggests the tax
ation of the “windfall received by
certain taxpayers who shifted to
others the burden of processing
taxes which were impounded and
returned to them or which, other
wise, have remained unpaid."
TAKES CARE OF LOSS
He points out that a tax on
this “unjust enrichment” would be
only fair to the vast number who
did not resort to court action and
have paid the tax. The return
from this tax on “windfalls”
would be received in this and
the next fiscal year but would
(continued on page 5)
: ■> \
Hoover Says New
Deal Failed In
Reemployiiig Idle
Speaks At Meeting Of
Young Republicans In
Colorado Springs Sat.
Night. Speech Broadcast
SEES INCREASED TAXES
Says $15,000,000,000
Will Be Added To The
National Debt Before
End Of The New Deal
Colorado Springs, Colo., Mar.
10.—An assertion was made here
tonight by former President Her
bert Hoover, in an address, that
the new deal had laid the ground
work for an ever-increasing tax
burden, yet had failed in the
“outstanding” governmental job
of reemploying the jobless.
Addressing the Young Repub
lican League of Colorado, he said
the American system of liberty
was endangered and told his
young listeners “your freedom and
your opportunities in life are
being mortgaged.”
One item to? administration
legislation came in for favorable
comment:
“The new deal regulations of
stocks and security promotion in
various aspects have the right
objectives. They were hastily
and poorly formed without proper
consideration by Congress. But
they point right.”
After indicting the administra
tion’s “planned economy’’ as en
dangering the Constitution, charg
ing it with waste and ill-founded
financial policies, the former presi
dent asked;
“What of the taxes that will
ooze from this spending and debt
all your lives?”
"Do not mistake. The new
taxes of -today are but part of
them. More of them are as in
evitable as the first of the month.
The only alternatives are repudi
ation or inflation. No matter
what nonsense you are told about
corporations and the rich paying
the bill, there will be two-thirds
of it for the common man to pay
after the corporations and the rich
are sucked dry.”
He said that election day 1932,
the American Federation of La
bor reported 11,600,000 unem
ployed.
“Today, after three years of
the new deal,” he said “they re
port 11,600,000 unemployed. To
get these people back on jobs
was the outstanding job of our
government. It was the excuse
given for all these doings.
“But the grim fact remains
that it has failed in its primary
purpose. And $15,000,000,000
will be added to the national debt
before the new deal is over.”
Hoover said the administra
tion. knowingly or not, has “imi
tated the intellectual and vocal
technique of typical European
revolution. In the talking and
legislative stages they made some
progress.”
He cited the formulas of revo
lution as including “Must emer
gency instruments of power,” “To;
save the nation,” “Rubber stamp”
legislatures, government propa
ganda and suppression of fref
press, free speech and freedom!
of worship.
“America has not reached these
final stages,” Hoover declared:
“Thanks to a people of a great
heritage, to the press and radio;
free speech still, lives in America.
1 intend to use a little more of
it tonight.”
The former president’s address
was broadcast nationally.
Hero Of British
Navy Passes Away ■
London, Mar. 11 (Wednesday)
—Admiral Earl Beatty, naval
hero of the Battle of Jutland,
died early today after a three
weeks illness.
King Edward’s physician in
common, Lord Horder, headed the
staff of doctors attending Admiral
Beatty.
A. H. Graham Visits
Sparta Last Week
A. H. (“Sandy”) Graham, can
didate for the Democratic nomi
nation for governor of North
Carolina was a visitor in Sparta
last week.
Fire Truck Bums
As Firemen Seek
Place Of Blaze
Tilden, Neb., Mar. 10.—The
entire fire department was indig
nant today.
Routed out of beds by the
siren, the firemen searched vainly
for an early morning blaze. And
while all this was going on, a
fire destroyed the department’s
truck, leaving the town without
fire fighting equipment.
The firemen suspect the fire
started when some one tried to
empty the truck’s gasoline tank.
Roosevelt Group
Takes Long Lead
In N. H. Voting
Supporters Of Knox
Ahead In Republican
Ballotihg. Scheduled
Ga. Primary Cancelled
Manchester, N. H., Mar. 10.—
As returns from today’s presi
dential primary in New Hamp
shire slowly mounted tonight, un
pledged candidates for delegates
to the Democratic national con
vention, to be held in Philadel
phia, trailed far behind those
pledged to President Roosevelt.
Republican candidates favorable
to the candidacy of Colonel Frank
Knox, Chicago and Manchester
publisher, although unpledged,
were in the lead in the tabula
tion of Republican ballots.
Of 16 candidates for eight
places as delegates-at-large on the
Democratic ticket, only four were
not pledged to Roosevelt and in
returns from 100 precincts of the
state’s 295, they occupied the
last four places.
Manchester, N. H., Mar. 10.—
George H. Moses, former United
States senator from New Hamp
shire, who was elected delegate
-at-large to the Republican na
tional convention in today’s presi
dential primary, said the result
gave Col. Frank Knox a “flying
start” in the race for the presi
dency.
Winder, Ga., Mar. 10.—A pri
mary test scheduled for tomorrow
between President Roosevelt and
Governor Talmadge in rural Bar
row county was called off today
by the coupty Democratic execu
tive committee.
At the same time the committee
called on the state Democratic
committee to hold a statewide
primary to give the people a
chance to decide between Mr.'
Roosevelt and his outspoken critic.
County preferential primaries are
not binding.
Baorrow, a county of 18,000
population, is the home of United
States Senator Richard B. Russell,
Jr., in northeast Georgia. Gover
nor Talmadge previously had said
he was not given sufficient notice
of the primary in the home coun
ty of Russell, a staunch adminis
tration supporter.
Republicans Seek
$1,000,000 From
;i,000,000 Persons
Washington. Mar. 9.—The Re
publican National Committee, with
a $356,288 surplus in its coffers,
tonight announced a campaign for
**$1,000,000 from 1,000,000
Africans” to use opposing the
re-election of President Roose
velt.
The new contribution system
was characterised by Party Chair
man Henry P. Fletcher as mark
ing “the beginning of what we
hope will be a permanent method
of financing the Republican party
through annual contributions
from the rank and file of the
Republican and independent vot
ers.”
Each contributor will receive
a fancy “red, white, and blue”
participation certificate asserting
that the donor “is a contributor
to and a participant in the work
of bringing about a return to the
fundamental principles of out
government”
The certificates bore portraits
of Abraham Lincoln and George
Washington, and facsimile signa
tures of Fletcher and George F.
Getz, national treasurer.
J^SiMI^LE^SSZ
NEW YORK . . . Above are Mr. and Mrs. George Burns with
daughter Sandra, 2, and brother Ronald, 6-months old. Mr. and Mrs.
Burns adopted both children from a Chicago fondling home, Sandra
more than a year ago and Ronald just recently. Photo shows Sandra
welcoming her new brother, . . . Mr. and Mrs. Burns are widely known
... to screen and radio fans. They are none other than George Burns
and Grade Allen.
Congressional
Leaders Trying
To Speed Work
Some Outstanding Bills May
Be Scrapped In Order
To Protect Adjournment
Goal, Set For May 1
Washington, Mar. 10.—It was
intimated Sunday by congressional
chieftains that ship subsidy legis
lation and the $420,000,000 rural
electrification hill might be scrap
ped, along with- controvers
ial measures, if necessary to pro
ject the May 1 adjournment'goal.
Taxes, money for relief, and
'regular appropriation bills thus
were the only items on the legis
lative agenda bearing a “must”
tag.
Senate leaders were talking of
winding up their regular duties,
letting house members go home to
political fence building, and then
starting the impeachment trial of
Federal Judge Halstead L. Rit
ter, of Florida.
That suggestion was advanced
by Senator McNary, of Oregon,
the Republican leader. The Demo
cratic chieftain, Senator Robin
son, of Arkansas, was not ready
to accept it until it was deter
mined whether the trial on charg
es of misbehavior, high crimes
and misdemeanors might be
squeezed in while the house was
working on taxes.
A bill to provide for direct
construction and operating sub
sidies for shipping in place of the
present ocean mail contracts, has
been snarled in the senate since
last session. As a compromise,
a new measure was offered last
week.
To pave the. way for possible
disposal of the rural electrification
measure, Chairman Rayburn, (D.,
Texas), of the house interstate
commerce committee arranged for
hearings Thursday. He mid they
should take no more than a single
day. and indicated he was ready
to accept the senate’s reduction
of the original billion-dollar plan
to $420,000,000 spread over 10
years.
The bill would set up a per
manent rural electrification admin
istration to make loans to states,
rural municipalities, utility dis
tricts, farm cooperates or limited
dividend corporations to bring
power to rural areas now without
it.
Overtime work on the adminis
tration’s new tax program was
scheduled to keep a House ways
and means subcommittee busy this
entire week.
Davis Sent To
Europe To Study
Market Situation
Washington, Mar. 10.—Assert
ing that “future plans made by
farmers of this country will de
pend in large measure on the ex
tant of their outlets abroad,”
President Roosevelt today direct
ed Chester C. Davis, the AAA
administrator, to survey Europe’s
economic policies.
Hauptmann May
Ask Hoffman To
Visit Him Again
Such Request May Be
Made In A Last Effort
To Stave Off Execution
During' Weak Of Mar. 30
Trenton, N. J., Mar. 10.—It
was learned tonight from an
authoritative source that Bruno
Richard Hauptmann may ask Gov
ernor Harold G. Hoffman to visit
him again in the death house of
the New Jersey state prison.
The request may be made, the
source said, in a last desperate
effort of the convicted Lindbergh
baby killer to stave, off execution
in the electric chair the week of
March 30.
The governor’s reprieve powers
expire Thursday night. He said
last week there would be no
further stay of execution unless
new evidence is discovered.
The governor meanwhile car
ried on his investigation of the
kidnap-slaying, still apparently un
convinced the case was solved
with the arrest and conviction of
Hauptmann.
Defaults On War
Debts Owad U. S.
Reach A Billion
Washington, Mar. 10.—De
faults on debts owed the United
States from World war days sky
loeketed today over the billion
dollar mark for the first time.
The debtor nations are barred,
under the Johnson act, from
obtaining any further financial
assistance in this country. But
the unpaid cost of the last war
and threats of a new conflict
have revived discussions of the
entire debt problem in congress.
A compilation by the treasury
disclosed that if congress sets up
a war debt commission—propos
ed by Senator McAdoo, Democrat,
of California, to review the ques
tion and seek a final and lasting
settlement—it will grapple with
a total debt of $13,670,087,391.28
of which $1,049,796,092.32 is
now in default.
Horticultural
Specialist To Be
In Alleghany Co.
H. R. Niswonger, Extension
Horticultural specialist, is schedul
ed to be in Alleghany county to
day (Thursday) and Friday, and
any farmer, according to County
Agent R. E. Black, who may be
interested in truck farming should
try to see Mr. Niswonger while
he is in the county.
Mr. Black has arranged foi
Mr. Niswonger to be at Piney
Creek today (Thursday) at 1:0C
p. m., at Glade Valley at 7:00 p
m., and at Sparta high school
Friday at 9:00 a. m.
Alleghany County
Students On Honor
Roll At A. S. T. C.
Mrs. Rosalie Hoppers and Miss
Clarice Thompson, of Alleghany
county, and both senior students
at Appalachian State Teachers
college, Boone, are among a total
of 141 students of the college
who were eligible for the honor
roll for the winter quarter.
In order to be eligible for this
honor, a student has to prove a
superiority by making an average
grade of “B” on all subjects.
Huge Fund May
He Sought For
Relief Purposes
Works Program Of
Administration Is
Praised By Speakers.
Vandenberg Wants Probe
Washington, Mar. 10. — As
Democrats entered a twin defense
of the WPA and PWA, intima
tions that President Roosevelt
would soon ask Congress for be
tween $1,000,000,000 and $1,
500,000,000 for continuance of
I his- work relief program were
| dropped in Senate circles today.
! Senator Robinson, of Arkan
sas, Democratic leader, in a
7,000-word prepared address, de
fended “boon-doggling” under
Harry L. Hopkins’ work progress
administration, and asserted the
Republican national committee
and “miscalled Liberty League”
were attempting to make a “po
litical football out of the unfor
tunate unemployed.”
ooon afterward, Senator Hay
den (D), Ariiz., read another pre
pared speech paying tribute to
the public works administration
under Secretary Ickes and urging
another $700,000,000 appropri
ation for new non-federal proj
ects already proposed but for
which funds are lacking.
On the present 45-55 grant
loan basis, Hayden said this
would enable construction of
$1,500,000,000 of state and
municipal projects.
Sandwiched in between the two
Democratic speeches was a fresh
•demand from Senator Vanden
berg (R), Mich., for a full in
vestigation of charges that WPA
is being used for “political ex
ploitation for a partisan purpose.”
The double Democratic defense
reached its height just as Presi
dent Roosevelt at his press con
ference said he had not deter
mined upon the exact amount he
would ask of Congress for relief
purposes.
In making known that his spec
ial message on the relief question
would not go forward this week,
Mr. Roosevelt intimated he might
delay it until the outset of his
annual trip to Florida on March
19. With a twinkle in his eye,
he told reporters he might leave
the message at the capitol on his
way to the train.
Persistent reports on the Sen
ate side were that less than the
$2,000,000,000 previously hinted
might be asked. Some Senators
declared privately they had rea
son to believe he would ask for
$1,125,000,000; others contended
the exact amount would depend
on the carry-over available, from
the $4,800,000,000 appropriated
last year. In his budget message
in early January, the President
estimated the carry-over the,n at
$1,300,000,000.
Alleghany Court
To Open April 27
And Not April 2
The Spring; terra of Alleghany
County Superior court is schedul
ed to convene in Sparta on Mon
day, April 27 instead of April
2, as was inadvertently stated in
last week’s issue of THE TIMES.
This error was merely the re
sult of an oversight and the cor
rection is gladly made.
To Hold Singing
At Union, Near
Whitehead, Sunday
There will be singing at Unior
church Sunday night, March 16
beginning at 7:30 p. m. Th<
public is cordially invited to at
tend.
Union church is near White
head.
Dougkon Opposed
To Reenactment
Of Processing Tax
Expresses Opinion
That Such Action Will
Not Be Taken Except
As A Last Resort
TO OPEN TAX HEARINGS
Veteran N, C, Solon
Says He Expects End Of
This Session Of Congress
Around June 1
If Congress reenacts processing
taxes it will be only as a last
resort, according to an opinion
expressed a few days ago by Con
gressman Robert L. (“Fanner
Rob’’) Doughton, to obtain reve
nue to finance the, farm program.
The Alleghany congressman, chair
man of the powerful House Ways
and Means committee, said he
was opposed to the processing
tax for the same reason that he
had always opposed a sales tax.
“It* puts a tax on meat, bread,
overalls and workshirts and should
never be tolerated except in an
emergency.” the, head of the ways
and means committee, which draft
all tax legislation, declared.
Doughton said he believes the
; proposed tax on undistributed
corporation profits would raise
sufficient money to make up for
: the Supreme Court’s decision in
validating the AAA processing
taxes and the added expense on
the Treasury because of the im
mediate payment of the bonus.
"ir we are not satisnea tnat
this will fill the gag then I would
favor increasing the beer and
liquor taxes before enacting pro
cessing or special manufacturing
excise taxes,” he said. “When
we placed a tax of $5 a barrel
on beer we were told that this
| would assure a fiye-oent glass of
beer. It has not done, that. Beer
row sells for ten cents a glass.
We can increase the tax to $7 a
barrel, secure additional revenue
of §80,000,000 , nd it will not
cost the consumer a dime.
“The, federal tax on liquor is
$2 a gallon. We can increase
that 50 cents more and get $100,
000,000 in added revenue.
“1 favor making these in
creases before putting a tax on
meat, bread, clothing and the
necessities of life.”
Doughton stated that if it
should become necessary to levy
a processing tax, the base would
be so broad and the amount on
each product so low that it would
not be, noticed by either the
manufacturer or the consumer.
The veteran North Carolina
solon said he hoped to be ready
to call his committe together
Monday to begin open hearings
on tax legislation. He said this
should bring the. bill to the floor
by April 1. He looks for ad
journment of Congrcs around
June 1.
Houghton is thorougnly sold on
a tax on undistributed corpor
ation profits and it now appears
certain that the bulk of the reve
nue in the new tax bill will come
from this source.
While opposing the re-enact
ment of processing taxes on the
ground that they are “undesir
able and unequitable,’’ Dough
(continued on page 6)