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Fair tonight and Tuesday; con tinued cool with possible scattered light frosts. GOOD AFTERNOON What th« world needs is (ewer uselessly totalitarian states and more totally utilitarian ones. VOL. 57—No. 136 Largest Daily Circulation of Any Newspaper in North Carolina in Proportion to Population HENDERSONVILLE, N. 2, MONDAY, OCTOBER 3, 1938 SINGLE COPIES, FIVE CENTS - » • •- • • • vcSl * Britons Will Push Race For Armaments *- «> a -—a. : * ASSAULT MADE ON POLICIES IN PARLIAMENT Tea Million Pound Loan Being Advanced to Czechoslovakia BRITISH PREMIER IS DEFENDING POSITION LONDON, Oct. 3. — (UP) — p-: • Minister Chamberlain today an:. ..meed that British re-arma ment will continue on an increas :r.«; scale as he defended in the house of commons the price he ; a : >r peace after he was charg t . \i;:h surrendering to the "blus ter and blackmail" of Hitler. 1 amberlain was faced with an extraordinary onslaught by the rvvirrvd first lord of the admiral ty, Alfred Duff Cooper, who quit in protest to Chamberlain's for tiori policy. Duff Cooper accused Chamber lain of letting Hitler £et away with new demands that probably will lead to other demands, back ed by threats of force, in the fu | tare. Lnamocnam aeienaea ms swuu and announced that the govern ment is immediately advancing ten million pounds to Czechoslo vakia to bolster that republic be cause of the loss of some of its richest areas to Germany. Chamberlain was expected to offer a general plan for European appeasement and disarmament when he appears before the house of commons today to ask parliament's approval of his pol icy of "dealing with dictators." Chamberlain, facing a revolt in his own conservative party over the current British foreign policy, was believe dto have determined to press forward to obtain results while he still is riding the wave of popularity that greeted his re turn from Munich last week. The proposals he is expected to loutline include: 1. The question of colonies, in cluding Germany's demand for weturn of war lost colonies. ' 2. Revision of existing British prelations throughout Europe, de fpending on concessions that will be made by so-called totalitarian states. 3. Solution to the Spanish war, in joint agreement with Germany, Italy and France. 4. Mediterranean rel a t i o n s, presumably including a reviving of the Anglo-Italian agreement. 5. The possibility of a four power pact, motivated by the ideal of "no more war," which will not be viewed with suspicion by the smaller powers or by Soviet Russia. 6. Organization of these plans in such a way that it will fit in with British proposals already un derway for modifying the League of Nations covenant. Chamberlain was expected, ac cording to informed sources, to lay before the British people a new British foreign policy of a scope so sweeping that the infor mant described it as "Wilsonian." POLICE Hap i GERMAN BUND i RESIST CROWD Stones Thrown at Kuhn, German Leader in U. S. as Meeting Blocked J'VION CITY, N. J., Oct. 3.— j 'IP)—A hostile crowd last night throw stones at Fritz Kuhn. na-, tional leader of the German American Volks bund, and broke oct windows in the organization's ^•Tlquarters where 400 members fried to hold a meeting celebrat-1 German occupation of the Su detenland. About 2,000 persons gathered ('Utoide the hall and twice tried to *torm the building while Kuhn I inside. They were driven back °y 'uind members and Union City Police. Finally Kuhn was persuaded by police Commissioner Harry E. Little to abandon his efforts to *Peak, and he left the building. | Stones thrown at him as he de Parted did not hit him. The crowd outside the building Was made up of representatives war veterans, the American [eatrue for Peace and Democracy, Nje International Workers' order, Czechoslovak Societies of Hud Continued on page three) FEDERAL DEFICIT MAY PASS TREMENDOUS 1936 FIGURE NOW FEARED AS 1ST QUARTER ENDS A Growing Relief Load, Pos sible Further Farm Aid Are Factors WASHINGTON, Oct. 3. (UP) The Federal government closed its books on the first quarter of the 3 939 fiscal year with a gross defi cit of $700,983,352, the Treasury disclosed today. The first quarter indicated a I strong possibility that a new Roosevelt deficit record may be established when accounts for the 1939 fiscal year finally are bal anced next June. Contributing to the fear of a deficit exceeding the tremendous 1936 figure are the steadily in creasing relief load and the possi bility that apiculture aid and re lief spending may have to be .in creased, in view of conditions at home and abroad. The Treasury's report as of j Sept. 29 revealed that expendi-j tures for the first three months of the fiscal year, which began July 1, reached $2,187,490,802, com pared to $1,024,015,961 a year ago. Similarly receipts fell from $1,639,107,727 for the period last i year to $1,498,880,119. The defi cit boosted the peak public debt to $38,419,565,726. Treasury officials were cheered, however, by the fact that if the present trend is continued throughout the fiscal year endiner June 30. 1939, the net deficit will be considerably less than the $3, 984,887.600 forecast bv President Roosevelt in his revised estimates last July 12. At that time, Mr. Roosevelt's deficit estimate was $2,525,639, 500 greater than for the preced ing year, and $3,035,000,000 higher than his original forecast in January for the current fiscal year. Mr. Roosevelt said that the business slump, which forced fed eral expenditures of $2,116,000, 000 in excess of what he had an ticipated, while expecting reve nues fell $919,000,000, forced re vision of his January estimates. The amount of relief outlays, agricultural assistance, national defense appropriations and other factors may change the picture after congress convenes to boost the deficit above the $4,360,600, 000 Roosevelt administration rec ord during the 1936 fiscal year. RACE FOR ARMS MAY WRECK DEMOCRACIES' FOUNDATIONS WILL EXHIBIT AT STATE FAIR Many Henderson County Farmers Plan Entries, County Agent Says A large number of Henderson county farmers are planning to enter exhibits in the State Fair, which will be held at Raleigh from October 11 through 15, G. D. White, county farm agent, stated today. The Henderson county exhibits will include cattle, turkeys, poul try, and apples. Among the exhibits already liiied up for the State Fair are: Five head of Hereford cattle from the J. Z. Cleveland farm, Mills River; the 4-H Club baby beef project of Grace Brown, of Etowah; a Guernsey bull, owned by Frank Corpening, of Mills River; turkeys from the farm of Dr. M. Szamatolski, at Fanning Bridge; turkeys from the farm of Jack Sewell, at Jeter Mountain; Rhode Island Reds from the farm of Rafe Lockaby, Flat Rock; New Hampshires from the S. J. Childs farm, on Brevard road; apples from the orchard of E. L. Mar shall, Dana; and apples from the orchard of J. R. Townsend, on the Edneyville road. The 4-H baby beef project of Miss Brown will also be shown in the show at the Ashcville stock yards on October 5. Gotham's Truck Strike Is Settled NEW YORK, Oct. 3.—(UP) — A truck strike which for a while paralyzed commerce in the great er New York area was settled fi nally today when the Highway Transport association, represent ing the only group of employers who had not come to terms with their drivers, signed a contract with the International Brother hood of Teamsters. Under the agreement, 2,500 workers engaged in long distance hauling returned to work. They will get a 42-hour week with the same pay as their old week—47 hours. The other employers agreed to this last week. MRS. J. M. DALTON IS SLOWLY IMPROVING Friends of Mrs. J. M. Dalton will be interested in learning that her condition is slowly improving. She is at the home of Mr. pnd Mrs. J. E. Blythe in the Willow section. She has been sick for some time. Foreign Policy Experts Outline Results of Huge Expenditures By GERRY ROBICHAUD United Press Staff Correspondent WASHINGTON, Oct. 3. (UP) The huge cost of the world arma ment race might deprive the de mocracies of their free economic systems and gradually undermine their very foundations, William T. Stone, Foreign Policy associa tion expert, warned last nipht. In. a report titled "Economic Consequences of Rearmament" Stone pointed out that world arm ament expenditures had increased from $4,000,000,000 in 1933 to more than $17,000,000,000 in 1938, distorting the national economy of every industrial na tion. "In the long run, if the pres ent trend is not reversed, it threatens to lead to ruinous in flation or national bankruptcy," he wrote. His report was published amid growing demands for President Roosevelt's direct intervention in international affairs in an at tempt to consolidate the "peace" gains of the four-power Munich conference and avert a catas trophic world war. Senator Ed ward R. Burke, D., Neb., an ad ministration critic, proposed that Mr. Roosevelt lead the world in an international conference de signed to eliminate existing eco- 1 nomic inequities. Senator J. Ham ilton Lewis, veteran member of (Continued on page three) HORSE, MULE 1 SHOW TUESDAY . I Many Entries Expected for Sales Event on Fletcher Airport Road i A large number of entries are expected in the horse and mule colt show, to be held tomorrow at the farm of W. H. Anderson, known as the Peacock inn, G. D. White, county farm agent, said this morning. The Anderson farm is located a half mile northeast of Fletcher, on the airport road. S. C. Clapp, assistant director of the state experimental farm at Swannanoa, and John E. Foster, professor of animal husbandry at State college, Raleigh, will be the judges. Prospective buyers are expect ed from Raleigh, Buncombe coun ty, and a number of other western counties, Mr. White said. The purpose of the shew is for private sale and an entry fee of one dollar will be charged to de fray expenses. Any person in the county is eligible to enter. Colts must be at the farm by 10 o'clock tomorrow morning and judging will start at 11 o'clock. Luncheon will be served at the farm by vocational students of the Fletcher high school. LABOR UNION COUNCIL FLAHS LIBOR JO A RD Powerful Group Demands Social Security, Wagnef Act Revision WOULD CONTINUE £ : FIGHT AGAINST LEWJS By ARTHUR F. DeCREVE I United Press Staff Correspondent HOUSTON, Tex., Oct. 3. (tfP) The powerful executive council'pf the American Federation of Labor 1 last night scathingly condemned the National Labor Relations board, demanded revisions in the Social Security and Wagner acts and told the government to keep hands off foreign wars. In its annual report made pub lic on the eve of the opening of the federation's 58th convention here, the council roared its defi ance of the Committee for Indus trial Organization. It blamed John L. Lewis, CIO chieftain, for crushing peace ef forts last October, made no new overture of peace and instead pro posed that the 1 per cent month ly per member assessment 'im posed last year be continued to finance the battle against the dual unionists and for other organiza tion work. A total of $1,174,014.58 was spent for organization during the past year and the federation to day had a paid and unpaid op membership of more than^^O.^ 000, the highest in its history, vne report said. The council's bristling attack on the CIO was matched only by its pungent denunciation of the labor board. It handed down a three-point indictment against the agency which it accused of being "biased," "prejudiced" and of having "by official acts declared itself a proponent of the CIO." The charges: 1. Agents have shown "gross favoritism" and "bias" in the han dling of cases, furthering the ob jectives of one union against an other and favoring one form of labor organization. 2. By administrative fiat, the board has set aside legally valid and binding contracts entered into in good faith between bonafide unions and employers. 3. The board has sought to arbi trarily impose on workers, regard less of their wishes, the type of organization it favors. The report cited numerous board decisions to substantiate these charges. It demanded the removal of Donald Wakefield Smith from the labor board on the ground that he is "biased" in favor of the CIO and called for far reaching changes in the Wag ner Act. . The suggested revisions would curtail the "unlawful assumption' of broad powers of the NLRB; make specific provision for the manner, method and time of hold ing plant elections; give aggrieved unions the right to appeal for re view of board decisions; limit the board's authority to determine the proper unit for collective bargain ing, and take away the board s power to invalidate bonafide con tracts between employers and workers. In addition, the council urged definite and more specific provisions banning company unions. Although praising the Social (Continued on page three) I SERIAL STORY MURDER TO MUSIC BY NARD JONES COPYRIGHT. 1 #3® NEA MRVIC6. IN* CHAPTER I It was Wednesday night in the Golden Bowl of the Pacific Plaza, the city's smartest hotel —and leading The Swingateers was Ludden Dombey. Ludden Dombey, acknowledged "torn of the swing cats." Tall, slender, undeniably charming, Lud Dombey held his baton almost carelessly. His arm seemed to move but little, his wrist only a little more. And yet a rhythm emanated from the figure of Lud Dombey as surely as if he himself were an instrument. He was leading The Swinga teers in what he called "a warm-up number." Nobody was dancing—yet. The tables just below him were crowded with young people. Wednesday night was their night in the Golden Bowl. Wednesday night was They'll Handle "Details" That Almost Caused Another European War Henderson Von Weizsaeoker Francoit-Poncet Attolico The diplomats pictured here are members of the highly important international commission which will arrange the details of the ces sion of Sudetenland to Germany by Czechoslovakia. Sir Neville Henderson is British Ambassador to Germany. Baron Ernst von Weizsaecker is Secretary of State of the German Foreign Office. Andre Francois-Poncet is French Ambassador to Germany. Dr. Bernardo Attolico is Italian Ambassador to Germany. Dr. Vojtech Mastny (not shown), Czech Minister to Germany, will be the fifth member of the commission. CZECHS LOSE POLITICAL POWER BUT NOT INDUSTRIAL STATUS REV. LEWIS IS DANAPASTOR Revival at Dana Will Con tinue Throughout Second Week L. V. Lyda today announced that the Rev. M. L. Lewis, former pastor of Henderson county but who has been making: his home in Brevard, has accepted a call to the pastorate of the Dana Baptist church. He will make his home in the Dana community in future. It was also stated that the re vival services, which began at that church Sunday, Sept. 25, will con tinue throughout this week. Much interest is being shown in the re vival, it is stated, and the public is given a cordial invitaton to at tend these services. with swing for those who ap- | preciated it, when he added such touches as this "warm-up number" and let go of his best wisecracks. No one» watched the attrac tive Lud Dombey more ciosely than Myrna Rogers. To Myrna it wasn't just Wednesday night —it was her wedding night. And the man she was going to marry was Ludden Dombey! To Myrna herself it was fan tastic, almost unbelievable. How, she asked herself for the hundredth time, had it happen pened? Here was she, a stenog rapher—"Miss Rogers" in the firm of Kelly, Clarke and Kelly. And there stood Dombey, idol ized by thousands, at the crest of his fame, with looks and I money and, seemingly, every when Lud Dombey cut loose (Continued on page six) Silesian Refugees Pour In to Prague, Still Sorrow ing on Sunday By ELEANOR PACKARD Copyright, 1938, bv United Pr®«* PRAGUE. Oct. 3. (UP)—The government of Premier Gen. Jan Syrovy has sent appeals to Great Britain and France for financial and economic aid in carrying out the rehabilitation of what will be left of Czechoslovakia after the republic's dismemberment, it was announced last night. The appeal also reportedly ask ed some sort of an emigration plan to enable thousands of pen niless refugees to find new homes. Close to 75,000 people, includ nipr anti-Nazi German social dem ocrats and Jews from the Sudeten industrial areas, have fled from the border areas. The notes to Britain and France were said to have recited a long series of problems arising from the dismemberment of the repub lic, agreed to under Anglo-French pressure. Assurances also were asked that Czech prisoners in Germany would be released in the same manner that German political prisoners in C^ech prisons and .iails are being freed under the terms of the Mu nich four-power peace agreement. (A dispatch from London said that the British cabinet would take up Czechoslovakia's financial ap peal and that an international loan, with Britain and France as the chief guarantors, of $250,000, 000 was being spoken of.) The government already is mak ing plans for its existence as a smaller but more homogeneous re public whose existence would be based on a policy of strict neu tralitv. Disillusioned by the results of her alliances with France and Rus sia and what she regarded as a gentleman's agreement with Eng land. Czechoslovakia appears des tined to become a non-political but commerciallv important little nation like Switzerland or Hol land. One of the first important steps of the new program, it was indi cated, would be a revision of the (Continued on page three) MARTIAL LAW IS SET UP FOR SUDETENLAND Six Czech Army Officers • and Men Arrested at Eger f BERLIN, Oct. 3.—(UP)— Mqdified state martial law wai established today in Sudeten Iapd as German troops advanced farther beyond the former Czech frontier. A decree was issued provid ing that any offenses against Germany in Sudetenland would be tried by courtmartial. Meantime, it was understood that Adolf Hitler intends to de« mobilize the huge army after completion of the Sudeten oc cupation. officers~saTd OBSERVING FIELD I EGER, Germany, Oct. 3.— (UP)—German army official* arrested six officers and men of the Czech army today at the j Eger airfield. They apparently ' had returned to the field to see 1 what was happening after the Czech army withdrew from this | area in advance of German oc cupation. BOiSDAMAGE BRITISH SHIPS One Suffers Direct Hit at Barcelona; U. S. Ship Escapes BARCELONA, Oct. 3. (UP) An insurgent seaplane today raided the port of Barcelona, scoring a direct Hit on the Brit ish steamer African Mariner and slightly damaging the Brit ish steamer Lake Geneva. The plane made three raids. Other bombs narrowly missed several ships, including the Am erican freighter Wisconsin. Toscanini Flees Milan, Will Sail For U. S., Is Said } t MILAN, Oct. 3. (UP)—It was reported late last night that Ar turo Toscanini, famous conductor whose passport was withdrawn by Milan police, already had left Mi lan "and should be in France by now." The information was said to have been given to friends by the former Signorina Fornaroli, the wife of Toscanini's son, Walter, and came after Toscanini had been represented to be determined to sail for the United States Wed nesday "at any cost." Service Station I Is Scene Of Fire The fire department answered a call about 9 o'clock this morning at the City Motor Co. service sta tion, corner Main street and Sev enth avenue. The blaze originated in the fluej of an open fireplace in the office, and burned the mantle complete ly. Considerable damage was done to fixtures and stock in the office, and some records may have been destroyed. The amount of damage had not been fixed this morning. Charleston Dead Advanced To 31 CHARLESTON. S. C.f Oct. 3. (UP)—Crowds of sightseers yes terday visited the devastated sec tion where many of this southern city's most famous historic land marks were damaged or wracked in last Thursday's storm. The death toll stood at 31 per sons, 16 white and 15 negroes. Thirty still were confined with injuries to hospitals. The Red Cross still was giving shelter and food to many whose ,nomes were destroyed. Churches held special services to raise funds to repair damages to them. HP OVATION GIVEN LEADER INEGERTODAY Pledges Sudeten* They Will Never Again Be Torn From Reich SECOND BLOODLESS VICTORY SIGNALIZED EGER, German Sudetenland, Oct. 3. (U?).—Adolph Hitlef to day made his triumphal entry in o Sudetenland and in a speech to the people of Eger, unuffic al capita], pledged that it should "never again be torn from tie Reich." It was the Fuehrer's second such triumph in less than seven months. Only last March he en tered Vienna to claim Austria for his third Reich. Addressing the people of Egcr in the market place, his words frequently were drowned by wild cheers. He spoke with emotion and it was obvious that he was moved. "We must stand together and never forsake each other," Hitler said. "Over this greater German Reich is laid a German shield pro tecting it, and a sword defending it." As he welcomes Sudetenland to the Reich, the cheers were inter spersed with roars of: "We thank our fuehrer!" Evidently, radio communica tions had been established hastily, for the broadcast of his speech was interrupted several times. Thus Hitler symbolically ac cepted sovereignty over the Sude tenland, the territory which near ly caused an European war. "The German nation," Hitl« r said, "stands in closed formats n from north to south and east to west. All are comrades ready to stake their lives for each other." Arriving at Hof. Bavaria, by special train from Berlin, Hitler was welcomed by General Walter von Reichenau, commanding the army which occupied zone No. 3 of Sudetenland today, and con tinued to the frontier by way of Rshau and Selb. He crossed the border, already a thing of memory, and arrived at Ascn, at 11:35 a. m. Proceeding to the market place in the center of the town, Hitler kept on to Eger. A steady drizzle of rain which had persisted all night made the entry of troops into zone No. 3 difficult, but did not dampen the enthusiasm of the Germans who celebrated their latest territorial acquisition. Hitler's car was preceded l>y two armored cars. Following wns a car bearing Henlein. Then came 30 more cars with high army officers and officials of tho Nazi party. ZONE THREE TO BE TAKEN OVER BY NIGHT Br EDWARD W. BEATTIE Copyright 1938 by United Pre»« WITH THE GERMAN ARMY, Beyreuth, Oct. 3. (UP).—A larjre German fighting force equipped for action moved up to Czecho slovakia's western border early today, ready to wipe out possible Czech resistance before Chancel lor Adolf Hitler's triumphal entry into the Sudetenland at 10 a. in. (4 a. m. E.S.T.). The green-grey columns of the German army occupying the Eger Sal'.ent, zone No. 3 of Germany's occupation, marched into the d. - (Continued on page three) Over 100 Arabs 19 Jews Killed During Week-End JERUSALEM, Oct. 3. (UP)— More than 100 Arabs were killed in Palestine in clashes with Brit ish troops over the week-end, au thorities estimated today. Nineteen Jews were killed and three wounded in an Arab attack on Kiryat Shmuel, a Jewish set tlement near Tiberias, according to dhpatches. Ten Arabs were killed and four wounded by an exploding land mine at Jaffa. POSTPONE PEOPLE'S TABERNACLE 1WEET Rev. Sherman Patterson tod;-y announced that in view of th* fact that the Greenville FeIlo< - ship club, which was to have he'd a revival at the People's Taber nacle on Kanuga road this wee':, is unable to be here, the meetirg announced for the Tabernacle has been postponed. This group will come to the Tabernacle later and hold a re. vival, he stated.