Henderson daily dispatch., May 26, 1933, Image 1

About Henderson daily dispatch. (Henderson, N.C.) 1914-1995

Image provided by: University of North Carolina at Chapel Hill Library, Chapel Hill, NC

                
HENDERSON,
GATEWAY TO
CENTRAL
CAROLINA.
TWENTIETH YEAR
TO REPEAL GOLD STANDARD ACT
Senate’s Morgan. Inquiry
Develops Bitter Quarrel
Over Utilities Holdings
GLASS THREATENS
FIRING OF PECORA
AS THE ATTORNEY
Virginian Demands to Know
Course Senate Inquiry Is
Going To Take Un
der Pecora
ATTORNEY OFFERS
TO QUIT ANY TIME
Draws Applause of Crowded
Ropm by His Answer to
Glass; Morgan Manipula
tions in United Corpora
tion Stock Furnish Sensa
tion of Day’s Testimony
Washington, i*ay 26.—(AP) — Sup
tension over the Senate's Mor
p-ip i M'3ij?>ation
pute at today's hearing in the wake
of a disclosure that the wealthy bank
ing house controlled the United Cor
poration. u' nt'es stock holding or
gaivzatipn which in turn is aff.liated
v i h companies doing 22 percent of
th? electric and gas output business
r< »he nation.
D-e investigation was recessed to
clav until Wednesday after a bitter
i r '" ever the course of the inquiry.
vnator Tarter Glass, of Virginia,
r ' red ove: the tactics of Ferdiman4
I'c >ra, <he vigorous New York attor
ney, who, as'counsel for the inquiry,
!■ 1 had J. P. Morgan and one of his
partners, George Whitney, undre
eftingent examination in the past few
day :, and today drew further evid
ence of Morgan activities from George
Howard as president of the United
Corporation. *| (
" he Virginian decanded, to the ex
citement of the crowded audience, to
know the exact course of the inquiry. l
He raised questions about Fecora’s re-'
tuition as counsel, while silence fell
or r he huge hearing hall.
Pecorai returned in kind, drawing
applause | with a veiled hint that his
resignation could be had if the com
mutes e^kod.
Through Howard, he had developed
tVrt the United Corporation received
from Morgan, stocks in various utili
ties concerns in the 1929 boom days at
£1? noo 000 leas than their market
vp.’ue and that the opulent banking
hov-e had, in consideration, obtained
e dominance over affairs of the Unit-
Corporation.
P was likewise disclosed by his
questioning of Howard that through
p Morgan-United deal the banking
firm was given options on one million
fharas of United Corporation at $1
eprh at a time when it could have
luan sold within a month to the tune
of a $29,000,000 profit, or at some S3O
tnm-o than was paid for each option.
With the Glass-Pecora clash which
k< r«t t lie room momentarily in an up
turn-. Chairman Fletcher of the com
rn defended the nersistent coun
and the Florida senator also drew
arpl'iuse from the throng that await
-o'l every word of the testimony, de
spite the oppressive heat of the day.
High Spots In Morgan
Testimony For The Day
Bring Fresh Sensation
(By the Associted Press)
Main developments today on the
Senate's investigation of J. P. Mor
gan and Comipany. t
The senatorial committee voted not
r " make public the amount owed the
inking frm. by members of the
Partnership. 1 *
£ tision as to publication of the
-‘'Tran articles of partnership was
deferred. ,
i°orge Howard, president of a uti
litif. holding company ,the United
Corporation, testified that in 1929 it
nad acquii ho certain utilities stocks
n Morgan concern at
" , ihan market value.
! hrnugh the stock turned over to
United Corporation by Morgan,
toward revealed, the great £i'4Vatc
Irtimtirrsmt tlrnlit Diaptitrlt
r OF L THtt A AfP Wlß ® BBRVICR
UK THR ASSOCIATED PRESS.
HOW MORGAN FACED SENATE QUIZ
J. ~ , .
Jig
This is a remarkable camera study
in facial expressions of J. P. Mor
gan, head of the greatest private
banking concern in the world, as
he appeared before the senate
NEW YORK STARTS
DRIVE ON RACKETS
Stiffened Spines Is Mayor
O’Brien’s Prescription
for Malady
CALLS IN ~ OFFICIALS
Tells Police Commissioner and Dis
trict Attorneys All Racketeering
Must Be Driven From
the Great City
New York, May 26.—(AP)—Racket
bosses, grown so bold that they send
their killers forth to do battle under
Broadway’s bright lights, stirred New
York to a new drive on gangs today.
“Stiffened spines,” was Mayor John
P. O.Brien's prescription for a social
malady that is killing scores and
draining millions from New Yorkers’
'Continued cn Page Four.)
bank obtained control of the utilities
stock holding organization that was
the beneficiary.
Howard testified that ih e United
.Corporation holds an interest in uti
lities which do 22 percent of the gas
and electric business of the country.
The Senate committee .was told the
Morgan house had obtained options
on a million shares of United Cor
poration stock at $1 each, which it
Could have sold within a month at a
profit of about S3O each.
Jit was brought out tha. the com
panies affiliated with the Un:ted cov
er territories housing 55,272,000 popu
lation. i
Howard enumerated 13 utilitiy con
cerns in which he. is 3 director*.
ONLY DAILY NEWSPAPER PUBLISHED IN THIS SECTION OF NORTH CAROLINA AND VIRGINIA. *
committee on banking and cur
rency, in Washington. Good pic
tures of the financier always have
been scarce since he seldom per
mits either photos or interview*.
Roosevelt Drafts
Economic Program
Washington, May 26 (AF)— Pres
ident Roosevelt today called in his
delegation to the Londum eoonoe
njlc conference and a staff of ex
perts to draft a program of action.
Bernard M. Baruch, New Yotrk
financier and economic authority,
joined the White House parley, but
he emphasized before it started
that he was not a member of the
American delegation.
The president set aside most of
the morning for his talk with the
delegates and experts. There was
no indicate* i of immediate action
on his part, although he scanned
closely reports from overseas.
SIR MARGES
Soundness of Faith of Rev.
Hay Watson Smith Will
Be Determined j
Montreat May 26 (AP) —A com
plaint involving the sounddness of the
faith of the Rev. Hay Wlatson Slmith,
of Little Ark., was ordered
heard by a judicial commission by
the General Assembly of the Presby
terian Church in the United States
! today.
The complaint was made by the
Rev. J. E. McJunki n and the Rev.
Algernon Killough, of the Arkansas
Presbytery. It was first heard by the
Assemjbly two years ago and the
charges not sustained.
The assembly acted u/pon the re
rommendation today of its commit
tee on judicial business, headed by
Judge Sam M. Wison, of Lexington,
Ky. ,
Dr. Ernest Thompson, of Charles
ton, W. moderator, said it
would take some time to announce
the personnel of the commission. It
will consist of 27 members of the as
sembly.
The charges arose from &n article
Mr. Smith Published on evolution.
Mr. Smith is not attending the As
pemjbly.
HENDERSON, N. C., FRIDAY AFTERNOON, MAY 26, 1933
NEW mVe to un
STATE’S FINANCES
Governor Ha» Bold Stroke
Up His Sleeve To Be An
nounced at Some Date
Shortly
BALANCED BUDGET
IS ONLY STARTER
State’s Bonds Have Been
Going Up Sharply Since
Legislature Closed, But
Governor Is Not Satisfied;
Banks’ Position Has Al
ready Improved Sharply
Dally Dfopatch B«re««,
In th«* !f»r Wii’Hr N«tH.
BY J. C. IIASKERVII,I,.
Raleigh, May 26.—Although the
General Assembly finally gave him a
balanced budget, which almost im
mediately boosted North Carolina
bonds from ten to wtenty points, put
ting the State back upon one of the
firmest credit foundations it has been
in four years or more. Governor J. C.
B. Ehringhaus is still not satisfied,
it was learned here today. He is de
termined that the credit of the State
can be still further improved, that its
bonds must go still closer to par and
the resulting profits flow aagin into
business and industry.
As a result, it is understood that
the governor has -already launched
upon a rather bold plan, that if car
ried through, will rank next in im
portance to the balancing of the bud
get in its relation to the fiscal affairs
of the State. The details of the plan
are being closely guarded until an
nouncement can be made of its com
(Cont.inued on Page Four.)
DoughtonTo
Plug Holes
In Tax Law
Tar Heel Leader In
Congress To See To
It Th at Payments!
Made On Income
Washington, Miay 26 (AP) —Plug-
ging up holes in the income tax law is
the repair job -Which Robert A. Dough
ton veteran legislator from North
Carolina, has set for himself.
As chairman of the House Ways
and Means Committee, he is in a pos
ition to give his idea some immediate
imiputus. i
The idea took form after the test
imony of J. P. Morgan before the
senate Banking Committee, but the
basic thoughts have been incubating
ji (Continued on Page Four.)
Raleigh Side Show
Shoyts About the Political Situation
In the State Capital.
In the Sir Walter Hotel.
Dally Dispatch Bnrean,
BY J. C. BASKERVILL.
Raleigh, May 26.—State officials
and State employes alike are sitting
on the uneasy seat in the departments
that have appointive heads. The man
ner in which Governor J. C. B. Eh
ringhaus is taking his own time to
make and announce his new appoint
ments has them all worrying from top
to bottom. The department and di
vision heads are worrying for fear
they will not keep their jobs, while
many employes are worrying for fear
they will not keep their jobs if their
present bosses are not reappointed.
The result is that many of the offices
are clouded with worry these days.
BASIS FOR WORRYING.
There is undoubtedly some basis for
this worrying on the part of a good
many employes, especially in the De
partment of Revenue according to the
reports going the rounds here. For
while there is much to indicate that
Commissioner of Revenue A. J. Max
well may be reappointed, it is conced
ed in many quarters that there is like
ly to be a general shake-up in the
Revenue Department and Motor Ve
hide Bureau. There a good many who
think Gove? nor Ehringhaus is con
vinced that there are too many em
ployes in this department, and others
£Contiauec on Page Pour)
United States To Go Off
Gold Standard By Statute,
Under Repeal By Congress
ISHII CONFERS AT WHITE HOUSE
i, Wtoßt&jSa>y ,
t ~ ; ■'■
Viscount Ishii Cordell Hull Ambassador Debuchi
A desire to negotiate reciprocal
trade agreements with the United
States has marked the conversa
tions pf Viscount Ishii
of Japan as his delegation con
ferred, in Washington, with Pres
ident Roosevelt and Secretary of
Old Farm Board
Ceases To Exist
Washington, May 26.— (AP)
The farm board, created as a major
lifesaver for agriculture at the out
let of the Hoover administration,
passes out of existence today.
Its usable functions have been
salvaged for merging into the farm
credit administration run by Henry
Morgenthau, Jr , one of President
Roosevelt’s big units in the “new
deal” for the farmer.
fiveSpSles
Clemency Is Denied 29 Oth
ers ; Pitt County Man’s
Fine Remitted
Raleigh, Miay 26 (AP)—-Governor
J. C. B. Ehringhaus today issued an
order relieving C. E. Fleming, of
Pitt couhfty, of a fine and costs im
posed following his conviction charg
es of driving an automobile while un
der the influence of whiskey, paroled
five other prisoners and declined cle
mency to 29 others.
W. L. Whedbee trial judge of Pitt
recorder’s court, recommended a par
don for Fleming, so the governor ord
ered the SSO fine and costs marked
off.
News Puts
Stocks In
Skyrocket
''New York, May 26.— (AP) —
Stocks went into a buoyant ad
vance today when the market
learned that President Roosevelt
had proposed repeal of the gold
standard act. Gains of $1 to more
than $9 were general, while a few
shares made eyen a large advance.
WEATHER
FOR NORTH CAROLINA.
Mostly cloudy with local thun
dershowers Saturday an din west
and north central portions *<v
night; slightly cooler in west and
north central portions Saturday.
PUBLISHED EVERY AFTERNOON
EXCEPT SUNDAY.
State Cordell Hull on the eco
nomic situation. Above, shown
at the White House are, left to
right, Viscount Ishii, Secretary of
State Hull and the Japanese am
bassador to the United States.
Katsuji Debuchi.
JAPAN AND CHINA
AGREE ON TRUCE
TO JAPAN'S GAIN
Chinese Troops To Be With
drawn Far Back To Line
Agreed Upon In
Jap Demands
VOLUNTEER CORPS
TO /BE DISSOLVED
China JWiH Undertake To
Exercise Strict Control
Against Anti . Japanese
Movement; Japanese
Troops to Withdraw Later
to Great Wall in North
Shanghai, China, May 26 (AP) —De-
spite strict censorship and official de
nials, due to fear of the consequences
there appeared no doubt today that a
provisional Chlnese-Japanese trujee
was signed at Miyum last night.
The document was belief, providing
only for the cessation of hostilities
through fixing of a line t Q which
Chinese forces are to withdraw, leav
ing details to be arranged at formal
armistice negotiations to be begun,
shortly. i
Representatives of the Chinese .and
Japanese commanders were believed
to have reached an understanding
concerning the following points:
1. Chinese will withdraw to
the agreed line.
2. Until a formal agreement is
signed China will undertake not to
send troops into the area bounded' l y
the Great Wall on the north, the Piep
ing-Mukden railway on the east, and
the Pieping-Suiyuan railway railway
on the west.
3. Chinese volunteer corps in the
area mentioned will be dissolved and
no longer encouraged or supported by
(Continued on Page Pour.)
NEW YORK COTTON
(By John F. Clark and Co.)
Open High Low Close
May 9.47 9.50 9.47 9.67
July 8.56 8.94 8.56 8.92
Oct 883 9.18 8.82 9.15
Dec 9.00 9.32 8.97 9.31
Jan 9.07 9.39 9.05 9.37
March ....'. 9.23 955 9.21 9.55
Spot 4 steady, 9.00; up 45 points.
O PAGES
Q TODAY
FIVE CENTS COPY
ROOSEVELT SEEKS
Requests Steagall To Offer
Measure To Repeal Gold
Requirements In
Settlements
WOULD AFFECT ALL
DEBTS STILL OWED
Government and Private Ob
ligations No Longer Would
Have To Be Paid on Gold
Basis; Senate and House
Both Expected To IPass
Bill Next Week
Washing-ton. May 26.—(AP)—Presi
dent Roosevelt has decided that the
United States should go off the gold
standard by statute.
He today requested Chairman Stea
gall, of the House Banking Commit
tee. to introduce a resolution to plno«
the United States off the standard hy
law,
The Alabama congressman confer
red with President Roosevelt at the
White House.
I<*i*-eir he called newspapermen to
his office and read a copy of the re
solution which declares the United
States is off the gold standard by law
“It repeals the gold standard adt,”
Steagall said.
Adding that under the resolution no
bonds, no obligations of the Federal
government, and no obligations of
any form would have to be paid in
gold or gold currency upon the enact
ment of the measure.
He said it would be. possible for
the foreign debtors to pay tho Unit
ed States their war debts in any legal
money
“This bill frees the United States
from the obstacles and handicaps of
the gold standard,” he said.
“It Is an administration, bill and a
(Continued On Page Four.)
NON-RESIDENTFOR
HAWAII IS PLANNED
Washington* May 26. —(AP)—
House Territories Committee to
day favorably reported the Rankin
bill, which would give the Presi
dent power ;to appoint a non
resident as governor of Hawaii.
Roosevelt
Asks That
France Pay
December Interest Is
Condition of New
Parley, Herriot Was
Told When Here
Paris, May 26 —(AP) —President
Roosevelt made payment of the $19,-
000,000 war debt interest due last De
cember an essential condition of fu
ture settlement of the debt, Edouard
Herriot, France’s special envoy for the
Roosevelt economic conversations in
Washington, told the Chamber of De
| puties in the course of a hot debate
| today.
I “If France agrees t© pay the De
i cember 15 installment,” M. Herriot.
! i&aid, “Mr. Roosevelt told me that
; negotiations could be undertaken im
mediately.”
Deputy Fernand Laureta, interpolat
ing the government on its policy for
the world economic conference, ex
pressed astonishment that the debt
question was not on the conference
agenda, adding that American opinion
is against a moratorium.
“In a proportion of 99 percent,” in
terjected Deputy FrankJin-Bouillon.
“It must be remembered that Mr.
Roosevelt :s absolutely powerless to
: offer a solution. He is the prisoner
| of Congress.”
! M.. Herriot, objected to depreciation
[ in advance of the American President.,