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Henderson daily dispatch. (Henderson, N.C.) 1914-1995, May 31, 1932, Image 1

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Hoover In Person Urges dales Tax In Senate, But Is 'Voted Down
~ “ I
Wants Funds Advanced By
Reconstruction Corpora,
tion To Start Ball
Rolling Again
economies measure
Project Exactly Counter To!
Garner's Proposal In
House; Says Business Ac-!
celerating Downward
Trend; Senate Votes One
Cent Tax on Gasoline Sale*
Washington. May SI. <AP>— The
Wiitrd rales tax. twice rejected by
-jt House. wa* advocated before the
brute today by President Hoover.
494 within a half hour afterward*
•v voted down by .the Senate Fin
oce Committee
Adoting the unusual course of ad
dru.'tn* the senators in erson. Mr.
Hoover said he did not favor a “gen
rrsl sale? tax." hut had come around
to considering a "more general" ap
pheation of the proposed manufac
turers' levies in order to balance the
budget and meet a present "emer
He outlined also a project of Fed
eral aid which would broaden greatly
the hading powers of the Reconstruc
tion Finance Corporation so that it
could advance funds to States and
municipalities and to private industry
to atari the ball of employment and
recovery rolling.
Likewise, he asked for action on
the legislation long blocked up by
congressional disagreement to cut
millions from the rolls of government
Counter to Gamer.
His proposal for Federal relief
through the Reconstruction Corpora
tion ran exactly counter to the re
lief planj advocated by Speaker Gar
ner. and In defense of which Mr. Gar
ser was testifying before a House
committee while the President was
on his way to Capitol HIIL
Although the limited sales tax pro
posal was promptly rejected. 12 to
A by the Finance committee, the
President's appeal for action of one
sort or another apparently made an
impression. It appeared likely that
the tax bill would be passed by to
morrow with the gaps filled up by
increased income taxes. A raising of
the income schedules was voted by
the Senate Itself before the President
Downward Coarse Speeded.
In his address to the Senate Mr.
Hoover declared the downward course
of economic affairs had taken an
accelerated pace within the past few
<!*>’». and that hesitation in Wash
ington was partly responsible.
He emphasized he was opposed to
the ‘general" sales tax—a system pro
viding a levy on every sale from
wholesaler to retailer to consumer.
Such h sales tax is not before Con
i'e*§. and has not been. He endorsed
the special manufacturers' excise sales
tax along the lines recommended by
the House Ways and Mean* Commit
tee and twice rejected by the House
and now before the Senate.
This tax is levied only once upon a
committee- when it is sold by the
After it had rejected the sates tax.
th* Senate Finance Committee ap-
Pft'Ved a tax of one cent a gallon on
gasoline, estimated to yield $150,000,-
O'*! o fthe $215,000,000 still wanted.
The committee then voted to put a
li’t percent consumers' tax on do
meatlc gas and electricity to raise
*OO 000.000.
Roanoke Island
Celebration Bill
Passed In House
May 31 (AP)—The
House today approved the Warren
'Democrat, North Carolina) revolution
to edabliah a United States Roanoke
Llsod Cokmy Commission composed
of three senators and three represen
Th* commission would plan a com
mcration in 1934 of the 350th anni
versary of the first English settlement
in the New World on Roanoke Island.
N. C.
T'« Senate has not yeX acted on the
Satlu Bisnatrh
P or I TH L ? A .*s. l i wma service
Dramatic Drive Is Made
For Taxes By Senate As
Mills Asks More Money
income Levies Are Hoiiled by Almott Unanimous Vote
Ag Result; Treasury Secretary Says $285,000,000
More I* Needed T o Balance Budget
Washington. May 31—(AP)— The
Senate made a drafnatic drive for
■iew taxes today as Secretary Mills,
in a room just off the chamber, warn
that the government's credit re
quired that $285,000,000 more be writ
ten Into the revenue bill.
Increased income tax rates pro
posed by opponents of the sales tax
w * r * voted. 88 to 3. ss the Senate re
sponded to the appeal for more funds.
This added between $70,000,000 and
*100.000.000 to the estimated total of
$840,000,000 Mills made today. He said
the bill must raise $1,121,000,000 to
PAID $75,000 TO ]
Accountant Testifies To
Sherwood's Remittances
On Instructions From
The Mayor
Unnamed Person's Identity
Is Withheld; Letters of
Credit and Stock Transac
tions Told About In Testi
mony Before Hofstadter
New York. May 31 (AP) —Just be
fore J Alien Smith. New York rep
resentative of the Equitable Coach
Company, took the stand at a hearing
of the HofreadXer legislative commit
tee today, an accountant testified that
Russell T Sherwood had paid out
more than $75.00u for the benefit of
an unnamed parson to whom Mayor
James J. Walker t>ald on the stand
las* wek he had authorized payment
Documents In which the unnamed
person figured wove not introduced in
evidence, neither today nor last week,
when they were submitted to the
mayor for identification.
Th- amount of only one payment
was brought up, a cheek for $7,500,
which the mayor last week identified
as having been paid with his author
ity out of the proceeds of hto joint
account with, Ftoul Block, publisher.
It was said the unnamed person's
identity would, by agreement, be
As he took the stand, Smith signed
a waiver of immunity. He waa asked
first If he knew whet had become of
the records of a fund put up by back
ers of the Equitable company in ob
taining a citywide bus franchise.
He said he did not know.
James T BMts, accountant em
ployed by the committee, tertifled
that the $75,000 payment from Sher
wood's accounts to the unnamed per
son Included $41,868.98 in stock and a
SIO,OOO tetter of credit purchased
April 30. 1931.
The letter of credit, El Ms testified,
was increased three times —on July 10,
1931. by $2,000; on Jtly 29. by $2,500;
and On August 5 by s3ooo—making dhe
to* a I $16,500, ah of which he sold, was
paid by Sherwood In cash.
Garner Urges Aid
I To Starving Folk
Washington. May 31.—(AP)—Ap-
pearlng in the unusual role of wit
ness. Speaker Gamer today urged
the House Ways and Means Com
mittee to report legislation for di
rect relief of “the starving and
suffering people in this country.”
He was the first witness on his
52.309,006,900 relief measure, hut he
explained he preferred to leave to
others zpreeslon of the merit* of
the MIL
balance the budget.
In a secret session of the finance
committee, the Treasury chief pre
sented alternative proposals for rais
ing the $200,000,000 or more. One al
ternative was the disputed sales tax.
and this recommendation immediately
threw the committee into argument.
The alternative advanced by Mills
was a Federal gasoline tax, and a
strengthening of the admissions levy.
This was the first time the admin
istration had recommended the sales
tax. which is still _to fc>« voted upon
in the Senate, butt against which 55
members were pledged - yesterday.
Upholds Walker
Paul Block, noted newspaper pub
lisher, is shown as he testified at
the Seabury investigation in New
York. Mr. Block stated he had
started a ioint stock account which
netted Mayor Walker $246,000 sole
ly because of friendship for the
FirstPlane* Will Pas* Ra
leigh Tomorrow Night,
North and South—
Daily Di*pa(i-h Ilirtis,
In the Sir Walter Hotel.
Raleigh. May 31.—The rtrst night
air mail service through Raleigh from
New York to Miami is expected to
start tomorrow night, June 1, It was
announced today by the airport of
ficials. There have been several test
flights over the route at night this
past week, but none of these planes
have carried any mail.
The first mail plane to go through
here at night is expected to leave the
Newark. N. J., airport at 4 o'clock,
arrive in Raleigh at 8:40, and arrive
in Miami at 5:50 Thursday morning.
The northbound plane is expected to
leave Miami at 7:30 Wednesday night,
arrive in Raleigh at 4:45 Thursday
morning and in Newark at 10:05.
The public is invited to witness the
landing and take-off of the first mail
plane at the airport here Wednesday
night, when the airport will be fully
illuminated with its powerful flood
(Continued on Page Three.)
Knoxville, Tewn., May 31 (AP)—
Colonel Luke Lea. NostivtHe publisher,
and J. D. Ramsey, former president
of the Ralston Union Notional Bank,
pleaded not guilty in Federal court
today to chargee arising from the
bonk failure in 1930, and Judge George
Taylor set January 9, as the dote for
Fair tonight and Wednesday;
slightly warmer tonight In ex
treme west an di nthe interior of
north portion.
Engages In Street Pistol j
Battle With Auto Sales
man and Dentist Aft
er Argument
Trouble Starts In Store Os
Adam Sink, Brother-In-
Law of Two Men; Shem
well Sent Away But Re
turns With Shotgun And
Opens Fire on the Pair
Lexington. May 31. (AP) —Baxter
Shemwell, well known North Carolina
business man and property owner,
was perhaps fatally wounded on the
streets here today in a gun battle with
a Lexington dentist and an automo
bile salesman.
J. O. Boaze. the automobile sales
man. and one of the participants in
the battle, was slightly wounded on
the hand. The dentist. Dr. F. G.
Johnson, was not wounded. Both
Boaze and Johnson are sons-in-laws
of Adam Sink, Lexington merchant,
in whose store the shooting bgan.
A few minutes after the gunfire
started. Chief of Police R. B. Talbert
and Policeman W. T. Neil captured
Shemwell. He was taken to & hospital
with a dangerous (round in the abdo
men. Physicians said they doubted if
he wojld live.
Witnesses tola Chief Talbert that
Shemwell entered Sink’s store this
morning and that an argument fol
lowed over foreclosure of debts held
by Sink on property owned in Ashe
ville by Shemwell.
Boaze and Johnson were in the
store at the time, and they said
Shemwell. apparently becoming en
raged, reached for his hip pocket.
Boaze drew a pistol and covered
Shemwell, while Johnson disarmed
him. the two told Chief Talbert.
The dentist and automobile sales
man ' h-n took Shemwell from the
store, placet him in his automobile,
and. after watching him drive off
returned to the store.
A few minutes later, they said.
Shemwell, returned, parked his ma
chine across the street and stepped
from the car. firing with a rifle Boaze
took cover behind a parked automo
bile and returned I $ fire.
He soon emptied his pistol and fled.
Shemwell then crossed the street
and broke the glass in the front of
Sink’s store in an attempt to reach
Johnson. Chief Talbert said.
As Shemwell battered at the front
of the store, he continued his fire,
which was returned by Johnson.
Boaze told Chief Talbert that he.
Boaze. had fired the bullets that
wounded Shemwell.
Capone’s Review
Is Again Refused
By Supreme Court
Washington, May 31 (AP)—Scarf ace
A1 Qapone. the Chicago gangster, now
serving a ten-yewr sentence in the At
lanta penttetlary for evading his in
come taxes, was again unsuccessful
today in getting hie case before the !
Supreme Court.
The court refused to reconsider
ite recent action declining to renew ;
tils case.
State Prison Heads
In Auto Wreck Here
G«OTgV RoM Pou, superintendent of
State’s Prison, and J. K. Powell,
prison statistician, both of Raleigh,
were seriously injured in an automo
bile wreck two miles north of Hen
derson this afternoon. They were
rushed to Maria 'Parham hospital
where emergency treatment was given
them but at 4 o'clock the exact na
ture of their injuries had not been
They were coming toward the city
from the north, and climbing a mod
erate grade, with Mr. Pou driving
The car began to shimmy and Mr.
Pou applied his brakes to stop it
When he did the machine skidded off
the pavement and several feet down
a bank. The car was considerably
To Rejoin Wife
HB —* Isl
Off to England to bring back his
famous wife, George Palmer Put
nam, publisher and husband of
Amelia Earhart, is shown as ha
sailed from New York on the S. S.
Olympic. Mrs. Putnam, now being
feted in London, is due bark in New
York on June 16. She has requested
that the usual elaborate welcoming
ceremonies for returning heroes and
heroines he eliminated in her case
Whether It Is Good or Bad
Seems To Be Paramount
In Final Week
But He Claims He Is Not Doing That.
But Merely Fighting Gardner;
Rhringhaus Defending the
flnlljr DUpnteh Damn,
In the Sir Walter lintel.
nv j. r. ntsKEßi'iM..
Raleigh. May 31. —Whether or not
the record of the Democratic party
and of Democratic administrations In
North Carolina is good and should be
defended, or whether this record is
bad and should be apologized for and
attacked, seems to have become the
dominant issue in the campaign for
the emocratic nomination for gover
nor in this the last week of the cam
paign. There are other issues. There
are many planks in the platforms of
the respective candidates. There is
(Continued on Page Eight.)
G. O. P. Prohibition
Platform ‘Liberal’
Washington. May 31.—(AP)—Re
presentative Snell, minority leader
in the House, today told newspaper
men that he was certain the pro
hibition plank in the Republican
platform would he “liberal.”
Snell said he was expressing his
own opinion, hut that “if anybody
tells you the plank won’t he liberal,
don't believe them."
Asked what he meant by “lib
eral." Snell, who has consistently
supported dry measures, said It
would be “Satisfactory." He did
not explain further.
damaged. The accident occurred on
the grade southward, toward the city
from the Greystone road.
Mr. Pou was complaining of an
intense pain in his bins, but an X-ray
had not been made to determine the
cause of ft. His’right arm was cut.
and there were cuts and scratches
about the face. Mr. Powell complain
ed of severe pains in his right leg.
but his worst injury appeared to be
a very severe laceration of his right
forehead, but it was not thought he
had suffered a skull fracture.
The men were traveling in a La-
Salle sedan belonging to the State
Prison. It was not learndß where they
had been, but are understood to have
been on their way back to Raleigh,
Last Os Stock
Sold At Great
Mass Meeting
Citizens Respond Quickly When Pledges
.Are Asked, After Situation Is Clearly
and Forcefully Presented
AH remaining stock necessary to furnish SIOO,OOO cap
ital and $20,000 surplus for a new institution to reopen
the First National Bank of Henderson, which closed last
December 31 during' the panic that was sweeping the
State at that time, was subscribed in less than 30 minutes
after subscriptions were called for at a great mass meet
ing of Henderson citizens held last night in the court
house. For a time there was a general scramble to take
the new stock, after the situation had been presented in
a logical and forceful manner by a number of speakers.
Approximately $12,000 was needed before last night's
meeting, and all of it was placed.
Old-timers said there had perhaps never been a like
gathering in Henderson before. The enthusiasm became
contagious and a number of citizens from out of the city
who were visitors at the meeting caught the spirit and
bought some of the stock, including men from Granville
and Franklin counties.
Oral Argument in Scotts
boro, Ala., Criminal At
tack To Be Heard on
Next October 10
Supreme Court Is Placed
Under Extra Police Guard
In Fear of Demonstration
by Communists Urging In.
tervention for Condemned
Washington. May 31 'API-Th<* Su
preme Court today decided to review
tl>e sentence of seven Negros convict
d of assaulting two white girls near
Ala. The Negroes were
lo have been executed on June 24.
The action, of the highest court to
day probably will have the effect of
will be taken up by the qpurt after it
postponing the execution. The case*
meets noxt October. At that time
Counsel will be heard in oral argu
ment. and the court will decide whe
ther the frets require the siting aside
of the conviction.
The court sot the case for argu
ment on October 10.
Wajtoington, May 31 (APl—Fifty
extra pohee were stationed at the
Capitol today in anticipation of a
demonstration at the Supreme Court
by a group of communists reported aie
.serrfbling downtown. The court is ex
pected to take up Che appeal of seven
Negroee servtnced to die at 3pot(aboro.
Ala., for attacking two, x<hite girls.
Later Capitol and metropolitan po
lice officials conferred on plane for
special protection of the supreme
Under the leadership of Inspector
Albert J. Headley, it was planned for
police to meet any communist pa
rade before it reaches the Capitol
Before allowing them to proceed.
Headley was to determine the object
of the visit. If peaceable, they were to
be allowed to proceed and present
their petition to some official o# the
court Othw-wise, the marchers! were
not to be allowed upon the Capitol
grounds. .
J. W. Jenkins, who led the cam
paign for the sale of the stock, pre-
Mded at the He statod tbs
purpose of the gathering, and other
speakers furnished the background
md explained the *tafu* of the bank’s
affairs, the need for the bank to re
open. and vouched for the security
and value of the new stock issue. H#
said stockholders in the old hank bad
iKiught SB7.(XXI of the new stock, and
something more than s2o.<Joo had been
placed outside that gh>up. The re
mainder was sold bast night.
It was explained that about 30 days
would be required to comply with
legal technicalities, and that the new
bank will open, about July 1. The new
r.tock of SIOO,OOO wan sold for S2O per
share over mar so os to create a sur
plus of $20,000 at the" outsat De
iK>silors who had S2O or less In th*
hank whxn it cloned will be paid in
full at the opening, and all other de
posit* will be paid off to th- amount
of ten percent at the outset, all the
renviinder to be paid in orie. two and
ihree years. It is one of the few in
stances in North CarolLna or e'ee
’vhere in which depositor? of a closed
hank are being paid In full.
One of the features of last night’s
enthusiastic meeting was that the
stock was well distributed amoi g cit
izens buying it. There were no y two
purchases of as much as ten share*
of the total of 100 Offered at th*
meeting though a nursber of citizens
had already taken considerably more
(Continued on F-age Eight.) |«
FayeMeville, May 31 (AP)—Becre
tai-yy of War Patrlxjk Hurley, en route
from Bolling Ftrfld. Washington, to
Fort Benning. Golanded hie plane
here today, refuel Sod and then took oft
again for Fort I .Penning after a rtop
of 20 minutes. 4
morellH to
Leader Stays They Will Stay
Until Bonus Is Paid By
/ Congress ,
Wadh'mgton, May 31 1 AP* —The be
lief thai. thousands more will come to
Washington to demand the odldiars
bonus was expressed today by Arthor
Taylor, the commander of the Oregon
unit of veterans now in camjahere
As the SOO Oregonians lined on
the sidewalk for morning inspection,
Ifeylor said: “More and more art
coming each day We do not Intend
to leave the oapkal until the bonus
is 71*id. even though Congress adjourns
June 10. We expect that our gr**t
nrsnbers will force congress u> c<«ne
lunch. ” t . . » . ■ . W

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