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Partly cloudy tonight and TW»d*y. w,.th '•*ht scattered ^owrri. Riling temperatures to morrow 5Uu' %lm£& GOOD AFTERNOON ■ \t« Nam mrm now making _ ovmr thair off tea calendars. Taking * •titcb in tim*. VOL. 57—No. 148 Largest Daily Circulation of Any Newspaper i n North Carolina in. Proportion to Population SINGLE COPIES, FIVE CENTS 4 ACCUSED AS SPIE „ XXX * * * * * * ~ ~ ~ PUSH PROGRAM PROMPTLY AS a SIGNS BILL Will Have Announced 2, 000 Approved Projects by This Week-end 100SFVF.LT planning early broadcast WASHINGTON, June 22. (UP) j r p\\ A opened its multi-billion iolhr pump priming drive against de'itfssiyn Ifss than 24 hours, titer President Roosevelt signedj &e fending-spending bill at Hyde • M yesterday. - j ,r , has had the major' kurtion of its program ready for j £vrui »«^ks tt,ld later toda>' WlU ! w-vaitfe the first grants to com-1 r.,r public construction under it" two billion dollar pro * jn- the end of this week PWA ifficais will have announced ap irvvai of 2,000 projects costing It.*: jr.oO.OOO.OOl). All were ap ircved by congress during the re*k* that congress debated the . Kovery bill. The bill including huge W r A ppinpriations for unemployed nd for the administration had irdly been made law when Presi ent Roosevelt declared business better than most people believe nd he predicted it would im rove. BILLION BATTLE OR RELIEF BEGUN WASHINGTON. June 22. (I'P) -President Roosevelt started tiie (Vernment on a $3,»53,000,000 ittle against the depression last ght ur.en he signed the 1938 re »vtrj-relief bill at the Hyde Park ra«er white house. Signing of the bill, majoi phase the administration's $0,000, 0,00u assault on the business C.;nc. gave the go-ahead signal a half dozen new deal agencies i:ih will pour out federal funds an attempt to spend the coun \ back to prosperity. "'Ar; 1:e Other spending programs ive been larger, none is design to unleash such vast funds over -hort a period. A total of $1,425,000,000 will devoted to creating jobs of all !;.es for nearly 3,000,000 jobless e:i and women under the Works rogress Administration for a pe ud of seven or eight months. Be-' re»>n $156,000,000 and $103, iHJ.UOO will flow into WPA en dupes every 30 days, beginning j »iy l. The Public Works Administra te, which receives the second1 (Continued on page three) Vesbyterian Men iear Dr. Lincoln )iscuss 'Wealth' upressive Message Is Brought to Gathering by Tryon Pastor The men's organization of the , tebyterian church, at the month- j fluting. Tuesday evening in the lurch house on Seventh avenue w. enjoyed a supper served by [ diea of thf church and heard an •toss t>v the Rev. C. Arthur Lin- I to. pastor of the Congregational j torch of Tryon. President John L. wi*r of the men's organization »n charge of the meeting. Lincoln discussed "Wealth" 13 maimer which deeply impress- j ' his hearers. He presented a view ' 'he natural resources and •*a|fh »)f this nation and touched ' 1 the vast values of the country's J »'urai wealth. On the other side as pr^spnfed some of the unseen 1(3 higher values of life, and the tfhirh each individual man M woman hold as their own pos ^'ions speaker linked up this Entry's natural wealth and its *a'th of natural endowments and r^'fer with the principles and j®''hlogs of the divine Master.! how all things may be to work together for the de ^f,r>nient and blessing of the in ^'dual as well as for the upbuild- j 5 a Christian civilization ■ "h win transform and bless the I and the world, if these prin t's are given free course in the ■ ,*s of m^n and women who ac-! Pr and believe them and conform , 11 accordingly. 1 Brown Shirt In a White Shirt Seldom is- Reichsfuehrer Adolf Hitler, No. 1 Brownshirt of Ger many, seen wearing anything but a simple corporal's uniform and trench coat. But he went quite formal for recent visiting diplomatic^ envO^f, "as* is ahown above where he is pictured in full evening dress leaving the Chancellory in Berlin. LEHMAN WOULD ENTER SENATE RACE, HE SAYS Statement of Receptivity Comes as Bombshell to N. Y. Politicians ALBANY. Juue 22. (UP)—Gov ernor Herbert H. Lehman last i night announced his willingness to become a candidate Tor the If. S. ! senate seat vacated by the death of Senator Koyal S. Copelaud. The governor, iu a formal state-! ment said: "If my party desires me to be a candidate for the office of II. S. . senator to succeed Senator Cope- ; land. I will accept the nomination." i Thus, Lehman, who broke with President Roosevelt on the su preme court reorganization plan, virtually withdrew as a candidate for re-election. Lehman's statement, issued only a few hours after he attended Copeland's funeral in Suffern. N. Y.. came as a political bombshell on Capitol Hill. The governor, once described by Mr. Roosevelt as "my good right arm." has been cool toward the New Deal for the past two years. The Democratic party undoubt edly will nominate Lehman at the 'Continued on paee four) NEff PROTESTS TO INCIDENTS IN ASIA LOOM American Mission at Foo chow, and Near Canton Are Bombed CHINESE TEAR UP ROAD TO HANKOW SHANGHAI. June 12. (UP).— United States diplomatic authori ties today forwarded to Washing ton reports on a number of new incidents which, it is believed here, will result in new protests to Japan by the state department, j The incidents include: bombing of the American j Christian Herald industrial mis-1 sion at Foochow, Kukien prov-1 ince, by Japanese planes on June! 17, resulting in the killing of Chinese employes and destruction of several of the misison build ings. The properties were undei lease to Chinese because of Chi-j nese laws requiring that direction of all schools be in Chinese hands. Bombing of American and Brit ish properties in Wuchow, near Canton, yesterday. Nine Japa nese planes flew over the south-1 ern city during the morning and dropped bombs, one of which fell1 near a storage tank of the Stand ard Oil company of New York,; another near the installation of the American Texas company, j and a third near that of the Brit ish Asiatic Petroleum company. Cancellatiorf by the Japanese army of a promise to permit Americans to return to their posts i in the Japanese-occupied , areas' of the interior—an act consider- j ed in violation of United States treaty rignts. Other developments: The Japanese drive 011 China's, provisional capital in Hankow made additional progress. Japa nese forces occupied Taiho, fol lowing their capture of the im portant position of Tsien-Shan, near their big base in Anking on the Yangtse river west of Han kow, and cleared all Chinese forces from the Tsien-Shan— Taiho highway. Tu the north, the Chinese war office in Hankow announced, Chi-; nese forces bated on Chengchow were attacking Japanese forces isolated in Chungmow by floods of the Yellow river. The Japanese were barricaded [ inside the city walls and were de pending on airplanes for their food supplies. The Japanese drive toward i Sian-Fu, capital of Shensi prov ince, had been turned into a de fensive action because of strong Chinese counter-attacks. To the eastward, along the Tientsin-Pukow (Nanking) rail way, sections of the Grand canal were flooded and' Japanese sol diers were assisting thousands of Chinese fanners in reinforcing the canal dikes. Far to the north, in the Peip-1 ing area, detachments of the Chi nese 8th route (Communist) ! army had destroyed a section of the new railway built by the Japa nese from Peiping to Chengteh, capital of the Manchukuoan prov ince of Jehol. The Chinese were strengthen ing their defenses of Hankow and had torn up and removed the en tire northern section of the rail way between Kiukiang and Nan continued on page four) FSA Enables 6000 Farmer Debtors To Retain Farms In This Region Settlements between farmers who are debtors and their credit ors have aided approximately 6. 089 Tarm families in this 5-state region to stay on their farms. This word was received here Trom re gional Farm Security Administra tion offices by Clifford E. Craver. county rehabilitation supervisor of the FSA. "Farm debt adjustment does not always mean reduction of the amount owed." Craver said. "Very often it simply means new repay ment arrangements, with an ex tension of time granted by the creditor. Sometimes such arrange ments necessitate a louger term lease for the farmer, or a definite plan of farm operation satisfactory to debtor and creditor alike.' The service is rendered without cost to debtor or creditor, Craver said, and is beneficial to both par ties Inasmuch as it enables the farmer to go on with his opera tions and assures the creditor of receiving as much of his invest ment as the farmer can possibly pay. The work Is done by a county committee of local citizens, and the FSA supervisors, and consists j of bringing the debtor and creditor together to talk over their mutual ; difficulties. No action is taken un- i less it is satisfactory to both par- i ties and the committee has no pow er to force any sort of an adjust ment. The local debt adjustment com mittee consists of Joe S. Stroup. Noah Hollowell and Wade S. King. Farmers who are not FSA bor rowers, as well as those who are, have received debt adjustment services from this agency, Craver pointed out. The regional showed that almost half of the 6,089 farm ers aided were FSA borrowers, ' while 3185 were not Many of the latter were undoubtedly able to se cure credit elsewhere after debt settlements were made, or were able to operate under their own fi nancial power, he said. In North Carolina, the debt ad ; justment record to date shows that settlements have been effected for j 1449 farmers. Other states in this | region are Kentucky, Tennessee , i a ad Virginia. 1 Valencia—NextfTarget of Rebels While insurgent planes rain bombs on Spanish seacoast eities, the nationalist army is pushing past Castellon toward its next great objective — Valencia, refugee cfowded and center of supplies for the loyalist defenders of Ma drid. Shown at left is the Santa Catalina tower, historic landmark in4 Valencia endangered by recent bombing. The map above shows territory now held by the oppos ing forces. The arrow on the sea coast shows the direction ol' the insurgent drive on Valencia. The arrow at top indicates the spot where another Franco force is fighting the remains of a loyalist "lost battalion" in an effort to clone one of two remaining ave nuep of escape into France. C. OF C. VOTES APPRECIATION TO BERT BOYD FOR PARK GIFTS A GOP. OFFERING CONCESSIONS TO DIXIE DEMOS Hamilton Calls on South for Coalition to Defeat the New Deal BIRMINGHAiM, Ala., June 22. (UP).—Chairman John D. M.' Hamilton of the Republican na tional committee, today called up on dissident Democrats of the south to organize a realistic coali tion with Republicans to over throw the New Deal. For the first time in the two years he has served as chairman of the Republican party, Hamil ton invaded the solidly Demo cratic southeast for a direct ap peal for coalition. Speaking be fore the Alabama state Republi can convention, he offered south ern Democrats concessions for such joint action, once a coalition has been effected on fundament al issues. Hamilton's appearance signaliz ed the first move in a heralded Republican drive to enlist con servative, "Jeffersonian" Demo crats of the deep south in the drive to overthrow President Roosevelt's administration. The way for such a drive, he said, has been prepared by southern Demo crats in the last congress "fight ing shoulder to shoulder with Re publicans in a successful effort to preserve the traditional form of the American government against the encroaching hand of those who Russianize and Hitler ize our country." "Times are rapidly changing and events of great national im portance are moving faster than many of us suspect," Hamilton said. ' "We find the leadership of the great political party which the south nurtured and kept alive through many decades now out of sympathy with the ideals, aspira tions, and economic interests of the south. "We hear the leader of that party—who has steered it away from its ancient and traditional (Continued on page four) NO CLEMENCY IN MURDER RALEIGH, June 22. (UP)—Gov ernor Clyde R. Hoey today refused to grant clemency for Willfam Payne and Wash Turner, awaiting death July 1 for the slaying of state patrolmen last August while they were prison camp fugitives. Lease Auditorium, Gym for Summer; Fair Grounds Progress Made Resolutions of thanks to Bert A. Boyd for huving made possible the completion of improvements to Boyd Park, and to all persons who helped to arrange and who par ticipated in Hendersonville's ex hibit in the Rhododendron Festi val parade were voted last night by directors of the Chamber of Commerce. Mr. Boyd, it was pointed out, originally gave approximately $2, 500 to develop the park, and then this year added $1,250 with which to install a night lighting system, construct four new shuffleboard courts and make other improve ments, with the co-operation of the city and Chamber of Commerce. The festival parade entry was di rected by H. H. Kelly, Miss Sarah Hudgens and 0. Y. Brownlee, Jr., and was participated in by several local people. Announcement was made that the city auditorium - gymnasium will be leased by the Chamber of Commerce for summer entertain ment features on certain nights and sub-leased to C. E. Livingston for dances on other nights. The first event under the sponsorship of the Chamber of Commerce en tertainment committee will be a square dance on July 4. No street dances will be held this year. May <ji rt. v. lAinaius iuiu nit* uuaru that the city's decorative street lights will be turned on next Mon day night. In addition to the arch lights, with white bulbs, interme diate arc lights between street in tersections uptown will be placed in use again at the same time. The board also adopted resolu tions offering its co-operation with the Brevard Chamber of Commerce in requesting the state highway commission to complete the widen ing. straightening and resurfacing of highway No. 28 between Hen dersonville and Brevard. H. H. Ewbank made a prelimi nary report for the conunittee hav ing in charge the securing of a site for a county fair grounds and was asked to make final recom mendations at an early meeting. Another committee to be named by President H. E. Buchanan will be asked to report on the possibility of maklng.improvements at Jump off rock for the accommodation of sightseers, picnickers and others. AUTO CUT HALF IN TWO; DRIVER LIVES WASHINGTON, June 22. (UP)— Cammel Braxton, 50-year-old ne gro, applied for the title of "luck iest-man-in-the-world' last night after an express train sheared his automobile in half at a grade crossing. Still grasping the steer ing wheel '»nd pushing hard ou the accelerator after the crash, Braxton escaped without a scratch. BRITISH SHIP SUNK AND ONE IS SET ABLAZE Bombing of Two Others Fails as Intervention (or Peace Reported RUSSIA IS"FINAL ISOLATION OBJECTOR (By UNITED PRESS) The British ship Thorpeness was bombed and sunk, and another British vessel, the Sunion, was set on fire by nationalist airplanes to day. The insurgent planes last night attempted to bomb two other Brit ish ships at Alicante but only sank a "foreign tugboat." The latest attacks on British shipping came after Europe's lead ing powers agreed last night, af ter eight months of wrangling, to Great Britain's compromise scheme for withdrawing foreign "volunteers" from the Spanish battlefronts and thereby bolstered British Prime Minister Chamber lain's hope of bringing about a truce in the civil war. While the nine-nation govern ing body ,of the non-intervention committee was overcoming Soviet Russia's objections to the with drawal plan, Chamberlain himself stood stubbornly in the house of commons against attacks on his "realistic" foreign policy. /VllrtJr UiUCi ucuaw iu nuivn vnc opposition demanded that Cham berlain warn Italy that the Anglo Italian pact will be torn up unless Italian planes in Spain cease bombing British ships, the house late last night cast what amount ed to a vote of confidence in the government's foreign policy. Members of the commons were dismayed when he repeated his June 15 statement that Britain is powerless to protect her shipping from attacks in Spanish waters and followed it with an admission that more British vessels probably will be bombed and sunk. It was reported in Paris last night, but without confirmation, that proposals have been placed before the loyalist government in Barcelona for an "honorable peace" to end the Spanish civil war. The French ambassador in Bar celona, who returned to his post yesterday from Paris, was sound ing out the government of Pre-: mier Juan Negrin on a plan for an armistice, according to the re port. Loyalist artillery Tuesday halt ed the insurgent advance on Va lencia with a shattering bombard ment which completely wrecked | the 13th century town of Villar real de la Plana, 36 miles north j of Generalissimo Francisco Fran ! co's objective, according to gov j ernments reports at the frontier. Insurgent headquartera at Sara gossa admitted that Villarreal, a town of 17,000 population prior to its evacuation before the drive of Franco's armies, was a heap of ruins but said General Miguel Ar anda's columns were pushing slow ly closer to Sagunto and Valencia from the north and west. Loyalist and insurgent forces locked in fiercer combat in terrific heat and swirling dust along the coast road throughout yesterday. Losses on both sides were said to have been high. FARMERS WILL ASK WHY RAIN FAILS. TO DAMPEN SOME SOIL HENDERSON, June 22. (UP)— After staring wide-eyed at a large dry plot of ground in an open field saturated by numerous rains on tiie farm of R. J. Jackson, farmers late yesterday dug up the mois ture-spurning soil and forwarded samples of it to Duke university at Durham for an explanation of the "phehenoomen." J. H. FLANAGAN HEADS LEGION POST OF CITY | ' Many Officers Re-elected and Delegates to State Meeting Chosen J. Harold Flanagan was elected commander of the Hubert M. Smith post, American Legion Tues day night, succeeding M. L. Wal ker. Many others on the local post staff were re-elected and follow ing the meeting, all appointive of ficers were chosen, completing the official roster for the ensuing year. The election was held earlier this year than has been customary in the past, in orter -that they could be.^deslgy^ed Prior to the forthcoming stftle convention to be held at Winston-Salem, which has been set for Sunday, June 26 to 28, inclusive. The delegation named to this was L. B. Prince and Nathan Pat la, with G. J. Wile and R. R. Ar ledge, as alternates. The full roster of post officials elect follows: Commander—J. Hyold Flan - agan. First vice commander—H. W. Parker. Second vice commander—Frank Waldrop. Third vice commander—C. Few. Adjutant—Nathan Patla. Finance officer—Harold Bangs. Service officer—Nathan Patla. Assistant service officer — L. B. Prince. < Guardianship officer — A. W. Groover. Sergeant - at - armB — Loughron Justice. Chaplain—Rev. B. E. Wall. Historian—Wiltshire Griffith. Athletic officer—Dr. F. O. Trot ter. Child welfare officer—Dr. W. E. Brackett. Americanism officer—F. L. Fitz Simons. Graves registration officer — Walter D. Stepp. Employment officer—Roy John son. Membership chairman—Paul W. English. Publicity officer—J. B. Creech. Chairman, Sons of the Legion John W. Farmer.. Mr. Flanagan has been an active member of the Legion for many years. He is a past-president of the Rotary club and a former di rector of that organization and is superintendent of the Sunday school of the Persbyterlan church and a former deacon of the church. Members of the nominating com mittee were Wiltshire Griffith, P. W. English, Mayor A. V. Edwards, L. B. Prince and Nathan Patla. I Haugwitz-Reventlow Child Under I 24-Hour Guard Against Kidnapers LONDON, June 22. (UP).— Countess Curt Hauerwitz-Revent low, the former Barbara Hutton, has taken "certain precautions" to protect her young son from be ing kidnaped, it was revealed last night by Scotland yard. It was denied that a kidnap threat had been received by the heiress to her $40,000,000 Ameri can dime store fortune, but her lawyer revealed that baby Lance is being1 carefully guarded. It was said that a strong guard of picked Scotland yard opera tives had been posted to keep a 24-hour watch on the home of the count and countess in Regents park where "Babs': and her in fant son now are staying. The Daily Mail reported that the countess said that reports of a threat of kidnaping were "most exaggerated" but that neverthe less precautions were being taken. The Daily Mail said that copies of a photograph and a full de scription of the suspect had been sent to all porta and airdromes. The special branches of Scotland Yard, it was said, were instructed to detain the man if he attempted to land and await instructions about his disposition. The Daily Mail said that infor mation concerning: the kidnap plot was received by the newspaper early this morning: and then com municated to Scotland Yard. Lance, the two-year-old son of the American heiress and the Dan ish Count was born in London on February 24, 1936. COMMITTEE NAMED HYDE PARK, N. Y., June 22.— (UP)—President Roosevelt today announced the appointment of a special committee composed of la bor, industrial and educational ex perts to study the workings of the British labor disputes law and Swedish labor relations. OCCUPIES SUMMER HOME 1 Mrs. Belle C. Evans of Gaines ville, Fla., has arrived at her sum mer home, Point-of-the-Wooda, Minnehaha. WAKKANIS fUK 14 OTHERS ARE ISSUEDJODAY Celler Urfes Formal Pro test to Berlin of "Nazi Sabotage'' u. s. grandTury to SOON RESUME PROBE NEW YORK, June 22. (UP)— Pour accused spies indicted by a federal grand jury as members of a German espionage ring that ob tained United States military se crets pleaded not guilty in federal court today and were continued in bail of $25,000 each. Federal Judge Vincent Liebell issued bench warrants for 14 others named in the indictment, which charged members of the German government with actively directing spies in this Country. Trial date for those pleading not guilty was set for August 1. They were Gustave Rumricn. Uni ted States army deserter; Jonanna Hofmann, hairdresser on the Ger man liner Europa; Erich Glaser, Mitchell Field private, and Otto Hermann Voss, aircraft mechanic. America's biggest spy hunt since the World war, which has result ed in the indictment of 18 per sons — including three GermS n government officials—on charges of espionage, was pushed forward in the face of threatened reper cussions from abroad. In Berlin a spokesman for the German government denied Ger man officers had anything to do with "a spy case in the United States," while in Washington, Rep. Emmanuel Celler (D^ N. Y») urged the American state depart ment^ lodge, "vigorous protests" againlt "this Tfaal sabotage of a friendly nation." The indietmenta, returned by a federal grand jury with full ap proval of state department offi cials in Washington, broke all dip lomatic precedent bv bluntly nam ing high officials of the Nazi war ministry as part of a huge spy ring stealing American war secrets. Federal authorities indicated the grand jury, after a brief vacation, would go ahead with additional evidence which is expected to re sult in more indictments. U. S. Attorney Lamar Hardy, who conducted the investigation, said the special grand jury wnicu returned the indictments against 18 supposed conspirators—only four of whom are in this country —would resume the inquiry "in a few days." It was apparent that federal au thorities intend to dig to the bot tom of the elaborate espionage system, presumably established by German agents to steal American military aviation information, re gardless of any embarrassment it might cause in diplomatic circles. While Washington officials re frained from direct comment on the revelations of the grand jury investigation, it was understood that the inquiry has been carried on with complete knowledge and consent of both the state and jus tice departments. Two woman, Mrs. Kate Moog Busch, a nurse who reportedly was acquainted with Dr. Ignatz T. Griebl, one of the men named in the indictments, and Miss Santa de Manget, proprietor of a liquor shop near Mitch el airfield, on Long Island, will remain in "protective custody." Hardy said the spy trail, which culminated in the indictments, ac (Continued on page three) Louis Holds Over 5 Pound Weight Edge On Maxie - / NEW YORK, June Sf.—(UP)— Champion Joe Louis, the betting favorite, held a five and three-quar ter pound weight advantage over challenger Max Schmeling of Ger many when they were examined at noon fofr tonight's heavyweight title fight at Yankee stadium. Louis weighed 198 and Schmel ing 193. Promoter Mike Jacobs said the advance ticket sale waa just short of 1900,000, indicating there would have to be heavy buying in the next few hours to make it the sixth million dollar fight in his tory. LIGHT SHOWERS FORECAST IN BOUT NEW YORK, . June 22.—(UP)— The weather bureau in an early unofficial report today forecast oc casional light showers for to night's scheduled fight between Max Schilling. and Joe Louis. An official fore out will be made la ter today. No postponement will be considered unless a heavy rain materialises duria* the afternoon, •: • -i* -V. *'