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GATEWAY TO CENTRAL CAROLINA. TWENTIETH YEAR ROOSEVELT ASKS SWEEPING POWERS ********** * **** ******* *** ****** ***** Sales Tax Passed By House, 62-43, And Hurried On To Senate ILL AMENDMENTS . ABE VOTED DOWN IN RAPID FASHION Proposed Substitution of Se lected Commodity Tax Is Lost by Vote of 35 to 72 DEBATE IS LIMITED ONLY TO 17 MINUTES Proposal To Submit Sales Tax Issue to Voters Offer ed by Watson of Nash But Fails Along With All Oth er Amendments; Many Taxes Are Increased Raleigh, April 20 IAP) —The House today passed and sent to the Senate the biennial revenue bill, levying a two percent general sales tax on re fill diUribuMon, and containing rr.a tpv'al increases in most State taxes. The vote W3a 62 to 43, excluding five pairs. All amendments were defeated or ruled oust of order. The Newman proposal to su'bbsf!- tute a selected comimlodity tax for tir general s ales tax lost 35 to 72. Debate on the final read'inig was l’n-ited to 17 minutes. Representative Walt sen of Nanh, cne of the leaders of the anti-sales taxes, sent forward an amendtaent to s''bbm t the question of levying a general sales tax to the voters at the next general election or at the spe cial elee‘io n if the governor calls one. Witnesses Claim Lane Boy Was Not Killed by ° Tree Hertford, April 20—(AP) —A string o! witnesses went on the stand for the Stale here today in the murder 1 trial of George K. Lane and his sec <rd wife, rnarged with the death of Lanes 17-year-old son, and gave tes timony indicating the boy had not not ijea'h under a falling tree, as claimed by his father. It \. White who said he had long expcrifiic ns a woodsman, testified he tmv th? tree three days after the body was removed, and that the tree had been out four or five days be foie he .saw it, while another woods man who saw the tree the day the 'body wa? removed said the tree had bfen cu l about ten days. Lnne claims the boy wa3 caught under a falling tree, while the State claims 'he lad was struck over the head and slain, presumably for his insurance. Charlotte Lady Tried i or Murder Mrs. Peterman Pleads Not Guilty to Murder of Her Prominent Husband Charlotte. April 20.- (AP)— Mrs- Ruth Peterman, Charlotte society matron, went on-trial in Mecklenburg 'Superior Court today on a charge of murdering her husband, Roy L. Peter man. a vice-president of ,the South ern Pub’in Utilities Company, who ;: hot to dath in the fashionable Peterman home the night of Feb ruary 13. In a court room packed with mem htr.; of her own social set, the great majority 0 f them women, Mrs. Peter man though her counsel, entered a Pita of not guilty when the indict ment was read. Selection of a jury v -a i begun. Sad-eye and silent, the defendant ! ’j 1 * het ween her atorneys, John M. Robinson and E T Cansler, at a table oireel ly in front of Judge John M- L;:e by, The only apparent sign of Nervousness was the constant, mov -1 her loft ha.nd about her mouth chin. ’ i Hrnfrcrsmi P OF L TH'S A fIiJ?w, WIR]iB MBRVICID OF THB ASSOCIATED press. Senate Expected To Make Numerous Revenue Changes Will Probably Drop Kilowatt Hour and Corporation Ex cess Levies and Raise Ho use General Sales Tax Rate To Three Percent; Then to Conference Daily DlM|»n(eb niirrnn. In the Sir Walter Hotel, ilt j. C. It/iSK Kit VIM.. Raleigh, April 20.—. The Senate is expected to make a number of chang es in the revenue bill and an unof ficial po'l of its membership shows that it will probably remove the kilo watt hour tax on electricity and the corporate excess tax, put on in the House and then boost the general salC3 tax plan to three per cent to make up for the difference in revenue None of the members of the Senate are willing to be quoted along -these lines, but in discussing the revenue bill “off the record” many of them consider this course is likely. The revenue bill finally passed its MERCHANTSWARN SALES TAX TO BE TESTED IN COURT State Association Serves No tice on House It Will Resist Levy to the Bitter End NEVER SUSTAINED BY HIGHER COURTS Dowell Declares if Tax Is Turned Down and Budget Left Unbalanced by Over $8,000,000, Legislature Cannot Say It Was Not Warned f>nlly DiMiint«>h T»nr«*nn. Tn th«* Sir Wnlfor Hotel. TIY J, P. nASKKRVIM,. Rbleigth, April 20 —The merchants of North Carolina, still convinced thlat a general sales tax is unfair, dis criminatory and unconstitutional, will contbst the legality and consti tutions Fty of any general sales tax that may be enacted in, North Caro lina and will fight it thirougfh to the United States Supreme Court, if ne cessary, they told the members bf the House and Senate today. Thiis notice that the ywill contest a general sales tax to tibe limit, if the General As sembly insists upo n imposing it, was contained in a letter addressed to the members of the General Assembly by Willard L. Dowell .executive sec retary of the North Carolina Mer chants Association, and read to the House this morning byb Speaker R. L. Harris. The letter was authoriz ed by the president and board of di (Contlnued on Page Eight.) Huge Sum Voted To Aid Farm April 20. —(AP)— An appropriation of $100,000,000 to put Into motion the administration’s broad farm price lifting program was approved today by the Senate in re suming debate on the agricultural (relief plan. The fund was authorized in adopt ing an amendment offered by Chair man Smith, Democrat, Democrat, (South Carolina, on behalf of the agri culture dpartment. The government would be reimbursd from the receipts of the proposed processing tax. Authority for expenditure of some of 'the money to expand markets to remove farm surpluses was included In th amendment. Prompt approval was given an amendment by Senator McKellar, Democrat, Tennessee, to exmpt to bacco sweepings used in making fer tilizer from the processing tax. WEATHER FOP. NORTH CAROLINA. Mostly cloudy tonight and Fri day; slightly colder on the coast tonight. ONLY DAILY NEWSPAPE R PUBLISHED third reading in the House today, con taining the two per cent general sales . tax plan, the Ewing kilowatt hour tax amendment and the Everett amendment to tax corporate excess in foreign corporations. The special sub-committee, headed by Represen tative R. Gregg Cherry, of Gastonia, brought in the two per cent general sales tax plan as a compromise after the House last week refused to ac cept the three per cent general sales tax plan recommended by the finance committee. The sub-committee con tended that with the new revenue ad ded to the bill by the kilowatt hour (Continued on Page Eight) To Run Indian Affairs | 'ml looPiP John Collier Complete reorganization of the In d an bureau, wlith its control of the affairs of of thousands of native Americans ,is expected to fol low oonfiirma'.ion of the appoint ment of John Collier of California as the new Indian commissioner. An expert of Indian affairs, Collier was regarded as the personal choice of Secretary of the Interior Ickes. 93.9 Percent In March, Against 95 Percent In Month of February Washington, April 20. —(AP)— The cotton spinning industry was report ed by the Census Bureau today t& 'have operated during March at 93.9 percent capacity on a single shift basis, compared with 95 0 percent dur ing February this year, and 90,1 per cent in March last year. Spinning spindles in place March 31 totia.liea 31,031.684, of which 23,- 429,122 were active at some time dur ing the month, with the average on a single shift basis being 29,134,413, .compared with 31,088,382 and 23,659,- 100 and 29,541,551 for February this year and 32,024,032 and 24,818,008 and 28,843,808 for March last year. North Carolina reported 1,441,146,- 251 active spindle hours, with an average of 250 per spindle for March. First Contingent Os Conservation .Workers To Start Charlotte, April 20 (AP)—The first of the 32,300 men North Carolina is expected to contribute to President Roosevelt’s citizen conservation corps are schedlduled to start leaving here next week. i Colonel E. C. Waddill, U. S. A., announced plans for commencement of examinations here next week aft er conferring with CWarles F. Gil more, executive secretary of the United Welfare Association, and Ronald B. Wilson assistant State director off Federal relief. , i HENDERSON, N. C., THURSDAY AFTERNOON, APRIL 20, 1933 >IN THIS SECTION CAROLINA AND V^MA. ABANDONMENT Os umn Conviction Spreads That Gruelling Deflation Os Past Years at Last Is Ended HIGHER COSTS OF LIVING UNLIKELY New Situation Should Be Welcomed by Nation, Bankers and Economists Hold; Gains In Price Lev els But Small Fraction of Slump From Depression New York, April 20. —(AP)—What does it mean in dollars and cents? This war; the question on innumer able lips today not oly those of but chers, bakers and candlestick mak ers, hut of leading bankers, as mar kets were convulsed by news that the United Stats had suspended the gold standard. May Mean More Jobs. While clear answers to the ques tions were lacking, pending develop ment of Washington’s controlled in flation program, it was agreed in many financial and economic quar ters that it should mean more jobs. Whether the price rise coincident to the reduced purchasing power of the dollar would mean appreciably higher costs of Hying was described as problematical. That, it was explain ed, would depend upon the levels at which pries are finally stabilized. It was recalled that Great Britain, since abandonment of the gold stand ard there in 1931, had kept the cost of living relatively stab’e That coun try’s suspension of gold gave com modity prices only a momentary boost, but it helped England to hold her prices in terms-of new currency fairly stable while gold prices in the United States and France continued their steady decline with consequnt further disturbance to business. Proponents of inflation—and infla tion means rising prices through in <( ''"tinned on Page Six.) Prices Soar In Markets Over Nation Not Since November, 1929, Has Stock Felt Splurge Seen There Today - 1 New 'York, April 2Q —(AP)—De lugd wth buying orders, commodity and stock markets rose with sensa tional activity today as the nation sought to adjust itself to the pros pect of “controlled inflation” after more than three punishing years of decline. Billions were added to the quoted values of stocks and staples. Wall Street’s excitement amid the confusion that attended an uproarious rise of $1 to $9 in shares was match ed on the Chicago Board of Trade, where wheat was bid up three cents and more a bushel. Cotton at New Yorlj soared $2.50 a bale, silver futures two to three cents an ounce, rubber, coffee, sugar, copper, lead, hides and the other Ibasic raw materials of trade and commerce joined the procession- Trading on the New York Stock Exchange was the wildest since the palmy days of 1929 and the high speed tickers, geared to handle 6,000000- share days, dropped nearly half an (hour behind actual busness on the floor. The rush to buy at opening time was so great that orders were lumped into huge blocks, several amounting to 10,000 shares. There was one 40,- 000 share transaction in International Nickle another of 35,000 shares in International Telephone. One and three quarter billion shares changed bands in the first half hour— the (heaviest volume for that period since November 13, 1929, th e day the Rocke feller nterests placed their sensation al order at SSO a share for one mil lion shares of Standard Oil of New Jersey. U. S. Envoy at Mexican Post 'nßffr i W~ x • Wii aKSpcaiG-.'feT ——————— wmmm —■■■■mwi .in .■ ■■ w—w— Josephus Daniels, new United States Ambassador to Mexico, is pictured surrounded by members of his staff in the Embassy garden soon after his arrival in Mexico City. Owing to a student demonstration that fol lowed the announcement of Mr. Daniels’ appointment, extraordinary precautions were taken for his safety. The American envoy was greeted with cheers on his arrival, his critics apparently having undergone a change of heart. Dropping Gold Standard Here Stuns Whole World Roosevelt Move Aimed at Europe Washingtdi, April 20 (AP) Speaker Rainey told newspaper men today that President Roose velt’s monetary moves were desig ned toj meet at “concerted and planned’* campaign by foreign na tions to beat down the Unifjed State's commercially. chineseMeral" FLEES TD BERLIN Reported Killed In Man churia Last July; Large Party With Him Berlin, April 2Q.—(AP). —General May Chan-Chan, reputedly the Chin ese national hero, whom Japanese military leaders claimd v/as killed in battle last July in Manchuria, ar rived today from Omsk, Siberia, With him were two other Chinese generals, Su Ping-Wen and Li (apparently Li Cbingling, former governor of Shili province and a Manchurian comman der several years ago) and about 60 other Chinese officers and soldiers, women and children- General Su was leader of the Chin ese uprising against the Manchukuo government last fall »in moijthwfest Mixnchuria. He fled across the Si berian border with remnants of his larmy in early December, and the (Soviet government refused Japanese requests for his extradition. The generals refused to talk, ex cept to indicate an intention to re main in Berlin for some time. They were expected to go to Paris next. McAdoo Proposes Eight Billions In Refunding Bonds Washington, April 20.— (AP) — Senator McAdoo, Democrat, Cali fornia, a former secretary of the treasury, today introduced a bill authorizing the issuance up to eight billion dollars in United States notes to to refund the gov ernment’s shorWterm debts maur ing in the next five years. The notes, which would be legal tender in payment of all public end private debts, except import duties an dinterest on the public debt, would be issued at such times in the five-year-period as the short term obligations of the government shall mature, PUBLISHED EVERT AFTHRMOON EXCEPT SUNDAY-. Reaction in EngtaliitTl Puz zlement and Extreme Anxiety at Step By United States DOLLAR VALUE IN EXCHANGES FALLS Stocks Skyrocket In France and American Travelers Abroad Feel Effects; Brit ain Rejects Theory Move Is Bludgeon for Roosevelt With MacDonald , (By the Associated Prses.) The first official departure of the United States from the gold standard in more than 50 years was felt today throughout the world. London—Britain’s reaction was puz zlement and extreme anxiety. The dol lar value dropped heavily. At one time it was $3.90 to t-he pound. The British government rejected the theory that the United States took the ■step to provide itself with a bludgeon for the MacDonald-Roosevelt nego tiations. Paris—Stocks jumped upward and the dollar closed on the Bourse at 22.46 francs th lowest in more than seven years. Berlin—A liign iinaniual authority said that in the long run present fluctuations could not touch the dol lar value, for the United States is the world’s creditor. The dollar dropped. Rome—Large groups of American tourists called at banks and travel agencies seeking advice. The dollar dropped. Vienna —American travelers got ten per cent less for their dollars than they did a few weeks ago. lakWiLL rlv Rogers Vy Novs: Amarillo, Texas April 20—Just t flew in] here, headed west. *We had to come jn mighty high to dodge all the farms and ranches that were bfcowing around down ’ on the lower strata. It ain’t) any- ' thing to be hit iji the eye with a ’ cow that is Wowing with th© dust from one ranch to another, but ' with all her dust and all her ' drought, she is a pretty country. This fellow ClarcnC© Young the 1 head of commercial aviation, has ' done more fi»r it than anybody ’ since the Wright brothers. 1 dbn’t know anything about his going to be removed for Demo cratic purposes, but it will take 12 Democrats to take his place. Yours, i WILL. i 8 PAGES TODAY FIVE CENTS COPY Could Issue New Currency, Accept Silver For War Debts or Cut Dollar Gold Content PRESIDENT SURE OF HIS PURPOSES Cofident of Ability To Handle Situation for 'lm provement of Economic Structure; Useful Weapon In Approaching Economic Conferences Is Seen Washington, April 20.—(AP)— A three-point measure giving President Roosevelt complete authority to start the United States, now off the gold standard on a policy of controlled in flation, was whipped into shape to day with the chief executive’s ap proval. The legislation was outlined in gen eral form at a White House confer ence last night, and Senator Thomas. Democrat, Oklahoma, the sponsor, probably will introduce it today as an amendment to the administration farm bill pending in the Senate. Thus quick action was in prospect. The broad grant of authority pro posed in the Thomas bill would give the President power to undertake in flation by any one of these mehods: lissuance of new currency; accep tance of silver in payment of war (Continued on Page Eight.) ism I • House Refuses to Make Any Loopholes, Regardless Os The Items Dally Dinptitrli Hnrean, In the Sir Walter Hotel. BY J. C. BABKERVIUL. Raleigh, April 20—AH efforts to exempt anything from the two per cent general sales tax finally adopt ed by the House failed, chiefly be cause a majority knew that any ex emptions at all would create a lope hole through which hundreds of thou sands, if not millions, of dollars of revenue would be lost, thus making it necessary to increase the tax to three percent, according to numerous members. It was also agred that any exemptions would almost double the work of the merchants and make it much more difficult for them to keep records of their sales. The amendment by Representative Davis, of Hyde countly,, to exempt flour, meat, meal, molasses, fat back and other basic foods from the two pr cent sales tax almost carried how (Continued on Page Eight.) France May Be Forced From Gold * Financiers There Fear Compulsory Course In Path America Has Taker Paris, April 20.—(AP)—French f! nanciers feared today that Franc eventually would be obliged to so low the United States off the gol standard She already is on a gold bullic ■basis, releasing only bonds. Bankers say that further restri* tions are likely because Great Britai is draining French gold. The Ran of England got most of the $117,000 000 in gohi France lost in. the pa four months. The Bank of France is extreme! cautious. Bankers said, contrary t custom, it issued no advice in th present situation, but adopted a “wai , and see” policy.