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1,.‘l",,1,T!* ASSOCIATED PRESS . And Souiheasiern North „ - « With Complete Coverage ol a Slate and National News — . * ____ yOL174-~N°. 25---J ESTABLISHED 186? NA TION RA TED REAL PARTNER IN NEW GROUP w - GAYDA GIVES PLANS Ciano Starts Home After Conferences In Berlin With Hitler, Suner ROME WATCHING U. S. Says Hull’s Comment On Pact Shows Its Import ance’ Was Understood ROME, Sept. 29. — UP) —Restora. toration of Gibraltar to Spain is in the Axis’ plan for the re-arrange ment of Europe and Africa, the authoritative fascist editorial spokesman, Virginio Gayda, flat ly declared today. “New talks” in Berlin prove, that Spain figures in the “immed iate scheme of things,” said Gay da, who specifically indicated for the first time that Spain, which heretofore has been regarded as only a* sympathetic friend like Japan, is now to be considered an active partner in the world-gird ling Axis lineup. He avoided saying in so many words, however, that Spain will en ter the war. uiano starts Home The flat declaration that Spain is to be rewarded by acquisition of the “rock” which Britain has held for 236 years as a symbol j of her empire strength, was maoe ! by Gayda as foreign minister Count Galeazzo Ciano started home aft* ter. conferences in Berlin with Adolf Hitler and Generalissimo Franco’s No. 1 aide, Ramoif Ser rano Suner. Serrano Suner, after his round of talks in Berlin, interspersed by a flying visit of Ribbentrop to Rome, is returning‘to Spain by the way of Rome, it was said. “Gibraltar is. . . Spanish terri tory which Spain is redeeming for herself in the new European or der,” said Gayda. He said the talks in Berlin yes terday “proves among other things that the Spanish problem figures in the immediate scheme of things, together with other problems else where in Europe pertaining to the war, and in the objectives of the new orde^ of the Axis.” While there was no hint of the way in which an attempt will be made to break iBritain’s grip on (Continued on Page Three; Col. 3) JAPANESE OCCUPY U. S. WAREHOUSE Later Abandon Building At Haiphong And Replace American Flag, However HAIPHONG, French-Indo China, Sept. 29.—UP)—Japanese soldiers to. day occupied the United States Far Eastern Trading company’s ware house here but a few hours later abandoned it, replacing the Ameri can flag they had removed and ten dering regrets to United States Con sul Charles Reed. The consul had placed the incident before French colonial authorities, Haiphong is being garrisoned by Jap (Continued on Page Three; Col. 4) Committee Agrees On Profits Tax BUI Final Action On F. R. Plan ExpectedSoon Is Designed To Prevent Huge Profits From Nation al Rearmament Effort WILL YIELD BILLION Measure Also Sets Up In surance System For Mem bers Of Army And Navy WASHINGTON, Sept. 29. —iSft— A senate house committee reached an agreement today on an excess profits tax bill, clearing the way for early final congressional ac tion on this measure. The legislation, asked by the ad ministration to guard against any one's making huge profits from the national rearmament effort, would impose a 25 to 50 per cent levy on corporation profits in excess of nor mal, and would also increase the normal corporation income t ax from 20.9 to 24 per cent. Both taxes would apply to 1940 income. WU1 Yield BiUion Estimated by committee mem bers to yield nearly $1,000,000,000 a year, the legislation includes spe cial concessions for defense con tractors and would -uspend exist ing eight and seven per cent lim itations on profits fr'--'. warships and military aircraft It .also would set up a goveni ment insurance system for mem bers of the Army and Navy, in cluding draftees and national guardsmen. This w ould permit them to buy policies with a face value of up to $10,000 at a rate of about 66 cents a month per thou sand. The corporation income tax in crease applies only to companies earning more than $25,000. Cor porations whose earnings are be low this figure now are accorded a special rate schedule which the bill leaves unchanged. Provision Kiled The senate-house '-ommittee was appointed to reconcile differences in excess profits legislation pased by the two chambers. Meeting in an extraordinary Sunday sesion, it struck out a provision, offered by Senator Ccnnaly (D-Tex) and (Continued on Page Three; Col. 4) LOWER OIL PRICES SOI CTINACTION Are One Of Primary Aims Of Federal Anti-Trust Suit Against Industry WASHINGTON, Sept. 29. — \Sh Lower prices for gasoline and fuel oil were described by the Justice department today as primary aims of the anti trust suit it has prepar ed against the oil industry. In a statement, the department said the suit would be filed in fed eral court for the District of Co lumbia tomorrow and would name as defendants the American Pe troleum Institute and 22 major oil companies and their subsidi ses. Attorney General Jackson (Continued on Page Three; Col. 2) WEATHER FORECAST North Carolina: Fair to partly cloudy Nonday and Tuesday except possibly powers on the coast. Continued cool, strong northeast winds on the coast. (Meteorological data for the 24 hours <nding 7:30 p. m. yesterday). , Temperature 1:30 a. m. 62; 7:30 a. m. 59; 1:30 p. ®: 69; 7:30 p. m. 65; maximum 69; Minium 58; mean 64; normal 70. , _ Humidity 1*30 s. m. 84; 7:30 a. m. 83; 1:30 p. 7:30 p. m. 58. _ Precipitation total for 24 hours ending 7:80 pi m., ?""e; total since first of the month, inches. Tides For Today High Low "ilnungton _ 8:34a 3:23a >, 8:56p 3:44p ’■asonboro Inlet_6:17a 12:08a . . 6:37p 12:34p nnrise 6:06a; sunset 5:58p; moon Sf 4:57a; moonset 5:26p. ' Cape Fear river stage at Fay 'itevlll., g a m j September *7, ■1-0 fro I ,(-ontinued on Page Three; Col. 3) -~nsK ----1* _ VRTNER E NTERS AXIS PICTURE A new partner, Japan, enters the Axis picture as Italy, Germany, and Japan sign 10-year pact to support each other with “all economic, political and military forces” to preserve the “new order in Europe and the Far E ast.” Above, German officers take Japanese officials, now their allies, on tour of fallen Maginot Line, near Schoenenburg. France. SETUP TO CONTROL PRICES ADVOCATED Suspension Of U. S. Re strictions On Production, Work Hours Also Asked WASHINGTON, Sept. 29.— UPi — A system of price controls and sus pension of government restrictions on production and hours of work in war time was recommended by the Brookings Institution today in a study undertaken at the request of the War department. The report proposed that wage rates under war-time economy be raised only ‘where necessary to ensure health and efficiency ori when made necessary by the fail ure of other controls to keep down the cost of living.” The Brookings Institution, a pri vate research organization, fi nanced the study with funds pro vided by the Falk foundation of Pittsburgh. It emphasized that al though the War department and the army and navy munitions board had cooperated with the au thor, Dr. Charles O. Hardy, neither was responsible for his conclus ions. Dr. Hardy outlined the purpose of the; study as an effort to de termine whether a price inflation was inevitable if this country should go to war. He concluded that it was not, provided price control machinery was unified and coordinated with fiscal ad bank ing policies. A ‘primary mistake” of the World war, he said, was ‘the failure to work out a coordi nating price control machinery with authority extended to all as pects of the problem.” To cope with the price problem during war-time, the study said, emphasis must be placed on the production of goods where restric tive policies have been in effect. Among the restrictions that must be suspended, it added, were those imposed by the agricultural ad justment act’s control of farm pro (Continued on Page Three; Col. 2) City To Propose Armory Project On ‘50-5(T Basis -A HOLD MEETING TODAY - - Cooper Believes City Should Buy Old Marine Hospital Building The city and county commission ers will meet this afternoon at 4 o’clock for a discussion of the pro posal to jointly sponsor the erection of an armory here. Mayor Thomas E. Cooper said last night that the city would offer a proposal to build the quarters for two military units here on-a "50-50 basis.” This plan has been the one in effect between the two governing boards in the erection of an armory heretofore, he said, and the “city and county have always gone half in such matters.” Friday the city commissioners dis cussed at length a proposal to se cure a WPA appropriation of be tween $50,000 and $75,000 for erec tion of a national guard armory in Wilmington, the building to house Company I, 120th Infantry, and Company A, 105th Medical Regi ment. The only site named in discus sions prior to this is the old Ma rine hospital grounds. This property of approximately 18 acres has been offered by the U. S. government for sale to the city for $20,000. “My idea is that we should buy it, it looks like a bargain,” Mayor Cooper said. Providing a site for the building and furnishing any skilled labor that may be needed on the project are the only requirements of the sponsor on the armory pnpject. The War department has already approved an armory for Wilming ton. However, the WPA has not ap proved the project due to the fact that up to now it has not received any formal application for such a building. Small Craft Warned Of'Northeast Winds JACKSONVILLE, Fla., Sept. 29. — OP) — The weather bureau tonight cautioned small craft from Cape Hatteras to Jackson ville not to venture into the open ocean because of strong winds off the coast. The bureau in a bulletin timed at 9:30 p. m. EST, said: “Pressure range low off South Atlantic coast, with strong high pressure over the Atlantic states and lake region will continue to give fresh to moderate north to northeast winds along the South Atlantic coast and strong winds to gale off the coast next 24 hours. “Small craft from Cape Hat teras to Jacksonville should not venture into open oceans.” MEDICAL COMPANY LEAVES FOR CAMP Company A, 105 Regiment, Leaves For Year’s Train ing At Fort Jackson Company A, 105th medical regi ment, entrained yesterday morning for Fort Jackson, C., and became the last National Guard unit of Wilmington to leave the city for a year’s service in the regular army. All other guard units here had been in camp for a week or more. The company took all its equip ment and prepared to be gone at least a year. The other local National Guard □nit camped at Fort Jackson is Company I, 120th infantry. Other Wilmington guardsmen are it Fort Moultrie, S. C., and Fort Screven, Ga. Military Note-Comparing On Large Scale Under Way Among Americas BUENOS AIRES, Sept. 29.—CS>>— Military note-comparing on an un precedented scale is in progress among the Americas. Although this was started weeks before Berlin. Rome and Tokyo bound themselves to fight any new enemy in either of the world’s two wars, it has reached its height amid the world reaction to the pact of Berlin. Besides South and Central Amer ican military representatives already in the United States to acquaint themselves with North America’s potential military might and talk [with United States military leaders, these missions were enroute today: Argentina: The head of the army, Inspector General Guillermo J. Mohr, accom panied by his chief of staff, Lieut. Col. Roque Lqnus, is at sea, bound for New York on the steamship Uruguay. Paraguay: General Nicolas Delgado, comman der-in-chief, scheduled to leave Asun cion by air today. Peru: CoL Felipe De La Barra, sJtief of general staff, pass through Guaya quil, Ecuador, today by plane. Bolivia: ' Commandant Jose Tamayo, chief of general staff, flying with the Peruvian leader. Colombia: Brig. Gen. Luis M. Castaneda, en route by plane, via Miami, with Lieut.-Col. Ernesto Buenaventura, chief of aviation,. Lieut.-Col. German Ocampo, commandant of the military (Continued on Page Three; Col. 5) TWO BIG PARTIES ONTTETN HUNGARY Merger Places Virtually All Nazis In The Country In One Organization BUDAPEST, Hungary, Sept. 29. —Iff—A merger of the Magyar na tional socialist party and the Ar row Cross party, larged of Hun gary’s Nazi groups, was announced tcday. The merger placed virtually all Hungarian Nazis in one party, since several other small groups were united some weeks ago with the Magyar national socialists. The merger, together with a more lenient government attitude toward the Nazi groups, was ex pected to lead to an immediate increase in their strength and in fluence. Evidence of the government’s, changed attitude toward Nazi groups since the recent Vienna con ference—at which Germany and Italy sliced off a large section of Transylvania from Rumania and gave it to Hungary—was seen in the release from prison Sept. 18 of Ferenc Szalasi, Hungary’s ‘lit tle Hitler” under a general am nesty to political offenders. Szalasi, who headed the Arrow Cross party, is expected to head the merged organization. The new party will have about 20 per cent of the 260 members of parliament, ment. 2 CLIMB IN FREIGHT TRAFFIC EXPECTED Rail Association Antici pates Seven Per Cent Gain During Fourth Quarter WASHINGTON, Sept. 29. —W— The Association of American Rail roads reported today that freight car loadings in the four " quarter of 1940 were expected to be, seven per cent above actual loadings in the same quarter of 1940. Shippers advisory boards esti mated, the association said, that loadings of the 29 principal com modities would total 6,51,835 cars in the next three months compared with 6,084,567 in the likr period last year. At the same time, the American Trucking association reported that revenue freight transported by mo tor truck amounted to 1,373,013 tons in August, an increase of 4.6 per cent over July. 2 RAF Attacks Ports, Berlin Power Houses “T British Planes Leave Muni tions Work At Hanau In 'Inferno’ Of Flames • RAIL CENTERS BOMBED German Planes Pierce Anti Aircraft Fire Curtain To Bomb London Again LONDON, Sept. 29—<J>—A ram paging RAF, replying vigorously to Adolf Hitler’s air blows, flew 600 miles through thick weather to bomb Berlin power stations, “in vasion ports” on the French coast, and left a munitions work at Han au, near Frankfort in an “inferno” of flames, oficial sources report ed today. Some of Germany’s most vital railway centers and airdromes were attacked, an air ministry communique said, and severe dam age was inflicted on the Wihelm shaven naval base. Anti-aircraft batteries in Berlin also felt the “made in Britain” Luftwaffe, it was declared. Special Attacks Lorient, and its warships build ing berths on the South Brittany coast of France, was singled out for the second time, for special at tack after Friday night’s extension of anti-invasion blows to that place were reported to have left fires visible for 80 miles. Le Havre, Fecamp, Boulogne, Calais and Dunkerque also were heavily bombed, as were “Big Ber tha” emplacements lat Cap Gris Nez. The West Power station in Ber lin and the main transformer and switching station at Friedrichsfelde were bombed by high explosive and incendiary missiles which burst close to their targets, the air min istry news service said in an am plification of the communique. The RAf fliers flew 600 miles through extremely bad weather and located their targets, it was said. Bombed Four Hours The large munition factory at Hanau, which produces metal al loys for airplanes, torpedo and submarine parts, and bronze bear ings for variable pitch propellors was bombed for nearly four hours in a series of high level and shal low dive attacks, the news bulletin related. Great explosions and fires from direct hits on the factory build ings by the vanguard of the raid ers led their squadron mates to the targets who repeatedly strad dled the works with “sticks” of high explosives. One large rectangular building, its roof caved in from previous blasts, was reported enveloped in billowing flame, and great clouds of black smoke from other fires in the same area towered thou sands of feet into the air, pilots said. v LONDON BOMBED LONDON, Sept. 30.—(Monday)— German warplaifes pierced a cur tain of terrific anti-aircraft fire early today and bombed the heart of London. Heavy demolition bombs shook buildings and incendiary bombs (Continued on Page Three; Col. 5) AIRCRAFT SHIPMENTS ESTABLISH NEW MARK Commerce Department Says Plane Exports Totalled $30,000,000 In August WASHINGTON, Sept. 29. -m— Aircraft shipments reached a new high in August and helped boost exports to the United Kingdom for the month to $125,309,000. This was the largest monthly figure since November, 1924. The Commerce department, re porting today on August sales abroad, said that the plane ex ports totalled $30,000,000 and that exports to Britin were $17,000, 000 above the July totgl. The United States’ total export trade during August was $349,928, 000 compared with $317,000,000 in the preceding month. Imports amounted to $220,000,000 a decline of $12,000,000 from Jub\ 2 Spanish Newspapers Say Nation In Axis, Flay United States MADRID, Sept. 29.—UP)—The Spanish press, taking for grant ed that Spain has become a part of the expanding Rome-Berlin axis, renewed its attacks today on the United States. Ramon Garriga, correspondent for the official Spanish news agency, saying that Minister of Government Ramon Serrano Suner probably would go to Rome from Berlin before return ing home, declared his visit to the German capital “definitely in corporates Spain into this new diplomatic system with which Hitler and Mussolini have gained so many resounding victories.” The newspaper ABC declared that Washington apparently had ‘‘missed the significance" of the Rome-Berlin-Tokyo alliance signed last Friday, judging from the Cleveland speech of United States Under-secretary of State Sumner Welles. (W e 11 e s suggested Saturday night that Far Eastern'problems still could be settled by confer ence but said the United States was preparing “for all eventu alities” and hinted at an impend ing extension of Pan-American defense policies). WESTBROOK MAKES DAY APPOINTMENTS M. D. Murphy Is Named Adjutant; H. C. Simpson Is Appointed Treasurer The state executive committee of the North Carolina Disabled Ameri can Veterans of the World war met at the chamber of commerce offices here yesterday afternoon for the discussion of the DAV program and the appointment of officers to fill recently-created vacancies. Norwood S. Westbrook, of Wil mington, state commander, presided over the conference. M. D. Murphy, of Wilmington, was appointed to the post of adjutant, and H. C. Simpson, of Wilmington, was named department treasurer. The appointments, made by Com mander Westbrook, were approved by the committee. Robert S. Hager, of Winston-Sa lem, was named chairman of the state Forget-Me-Not campagin. a report on the progress of the sale of good-will bonds was made and the group discussed the starting of improvements to the property on Middle Sount, recently purchased by the DAV, for the purpose of forming a veterans’ home and recreational unit. Captain Fitzhugh Lee Whitfield, of Clinton, national service officer, spoke o i the benefits that veterans of this section will receive on the opening of the new Veterans’ hos pital at Fayetteville on October 17. A discussion of the conscription bill, recently passed by congress, was held by the committee members and a letter from Congressman J. Bay ard Clark stating his views on the measure was read- Congrsesman Clark stated that in his opniion the conscription bill was the only fair (Continued on Page Three; Col. 1) England Makes Demands Upon French Madagascar VICHY, France, Sept. 29.— (jp> — The governor general of French Madagascar, off the east coast of Africa, informed the Petain govern ment today he had been ordered by the British to align the colony with the De Gaulle movement or the Brit ish would cut the island off by blockade. The report from the governor gen eral, Leon Cayla, was disclosed by the colonial ministry. (Madagascar lies in the Indian ocean and is separated from the southeast coast of Africa by the Mozambique channel. It has a coast line of over 3,000 miles and a pop ulation of roughly 4,000,000 including the people of Mayotte and Comora islands. i • Madagascar and its island depen dencies were declared a French colony on August 6, 1896.) Governor Cayla assured the Vichy government, the communique stated, that he had refused the British de mands. He added that no signs of threaten ed action had yet been observed. This is the second attempt of the British to take over the island colony officials said. The government an nounced late in July that British troops had attempted to land at M^agascar but were refused permis sion. Since that time, colonial ministry officials said, British warships have been continually patrolling the en trance to Madagascar ports and pr» venting the movement of traffic.