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GATEWAY TO CENTRAL CAROLINA. TWENTIETH YEAR HEW SENATE TAX BILL HITS PRIVATE BANKERS ___ ** *****_ ***** * * * * * * * U. XL Morgan Probe LAMONT IS ASKED MOCK SALE Not Fair Play, Davis Charges As He Leaps to His Feet In Defense of tjhe » Witness CHAIRMAN RULES IT PERMISSIBLE QUERY Lamont Then Says He Does Not Remember About Sales Made Over Two Years Ago; 20 Morgan Partners Had Total $48,- 000 Income Tax in 1930 Washington, June 2.—(AP)— The Senate investigation of J. P. Mor gan and Company was abruptly re cessed for the week-end today after Jchn W. Davis, counsel for the firm, protested against a question directed at Thomas S. Lamont, junior part ner, apparently relating to hs income tax return. The white-haired Davis, former presidential candidate, leaped to his feet to object when Ferdinand Pecora, aggressive Senate committee counsel ca’led young Lamont to the stand and asked him about sales of stock De cembtr 30. 1930. “This is not fair play,” Davis pro tected, asserting that Lamont had not been advised he would be questioned about the stock. Chairman Fletcher finally ruled the question was permissible. I.amont said then he did not re collect about the sales, and he was directed to look them up over the week-end. Davis asked Chairman Fletcher for a meet ng of the committee Monday before the resumption of the inquiry, presumably to decide whether Pecora’s question was pertinent. After the recess was taken, Pecora •refused to reply to questions from newspaper men whether the question had any connection with income taxes. Previous testimony before the com mittee had disclosed that the 20 Mor gan partners had a total of $48,000 in come tax in 1930. Supported Crashing Market. The Semite Banking Committee was taken behind the scene of financial drama of the chaotic days of late '29 by a Morgan and Company partner, who told in matter of fact fashion how a few bankers “with $250,000,000 a s thfir f.ngers, supported the crash ing market.” It was s. profitable operation, too. Geoige Whitney, the Morgan partner, 'ft.tified that, although loss had been expected, the 1,046,609 shares pur chased v/ere fold for $1,067,355 more than the cost, exclusive of interest. (Continued on Page S^vcn) Big Oxford Factory Is Destroyed 150,000 Feet Lum ’ ber Is Burned; Hen derson Sends Fire Truck to Scene Most of ihe plant and lumber of the Jeffreys Moyers Lumber Company in Oxford was destroyed in a fire which swept through the property this aft ernoon. Mayor Frank Taylor of Ox ford, called Mayor Irvine B. Wat kins her-' and asked that a fire truck sent to their assistance if pus 's hie, and the truck was ordered to Oxford immediately. In mid-afternoon a telephone mes sage from Oxford said the fire had 'gotten beyond control, and indica 1' ons at that time were that en '•tf: plant would be destroyed. It was said that more than 150,000 f pp ' of lumber had been burned al t’cidy, together with one or two tt 'ight cars on a siding in the mlant ; ind cne or two shedA in which lum- I ' *' was stored. ■ hr* plant is located in the north- Vv < tern part of the city, and is one " f r he largest manufacturing' estab b-kments of its kind in Oxford. mznmtxrxn 43 min Urstratrh F OF E WIR * SERVICE . TH ® associated PRESS. They’re Next ||jii ' 'kßKi .y! fIH ’ ' ajHjwj EL kmi Jpn +.y\ ' . JeT . * M. J. Van Sweringen O. P. Van Swerin^en When the Van Sweringen broth ers, Cleveland railroad magnates, under subpoena to testify before the senate committee on banking and finance, tell their story, more light is expected to be shed on the Alleghany corporation, through which they have conducted their vast railroad enterprises. It was this stock, among others, which the House of Morgan offered to a privileged few at a price far be low the market value. Ihlblkerlw TEMPEST IN TEAPOT Eternal (Squabble Between Elective and Appointive Officers Seen In The Sir Walter Hotel. Daily Dlupatcb Bureau, BY J. C. BASKERVIIiIi. Raleigh, June 2. —The rumpus that has developed between State Auditor Baxter Durham and Henry Burke, lassistant director of the budget and of personal, with Attorney General Dennis G. Brummitt acting as referee and ruling a knockout for Durham, is no texpected to accomplish anything other than mark the flare-up of the old feud between State Auditor Dur ham and Budgeiteer Burke and to bring to light again the bitter feeling that has existed here for years be tween elective and appointive State officials. When the smoke has clear ed away there is little doubt in most circles that the action of Burke will be sustained in the present instance, lin spite of the ruling made by At torney General Brummitt in favor of Durham’s angle to the controversy. (Continued on Page Six.) Public Debt Os Nation Rises Further In Month Washington, June 2. —(AP) — The national public debt increased during May to $21,835,385,981, compared with $21,441,209,176 at the end of April, and $19,036,916,646 on May 31, a year ago. The $2,798,000,000 increase last year brought the total debt closest to the highest point it has been in half a de- August 31 1919, the debt reached its highest point, $26,596,701,648, and com pared with a debt of $1282,044,346 on ONLY DAILY NEWSPAPER PUBLISHED IN THIS SECTION OP NORTH CAROLINA AND VIRGINIA. _ ’********* * * Halts Until Monday As Davis Protests Questioning ALL DEBTSLoSs IN GERMAN REICH Both Long and Short Terms Foreign Debts of Ger many Will Be Affect ed by Order i ANNOUNCEMENT IS MADE BY SCHACHT President of Reichbank States Decision After Five- Day Conference of Bank ers on Situation; Decision Declared by Schacht To Be Irrevocable Berlin, June 2.— (AP) Dr- Hjalmar Sehack. pres'dent of the German Re'chbank indicatd today that early next week a moratorium will be declared on all German foreign debts, both long and short term. At the conclusion, of a five-day in ternational conference with bankers. Dr. Schacht read to newspaper cor respondents a joint communique is sued by all delegates. Then h;s voice raised he added: “This puts the decision for further action straight up to the Reichbank. Our decision which is irrevocable, is that we will not permit further (shrinkage of our gold and devisen (bills of foreign exxchange).” * This was taken by every one pre sent as an announcement that Ger many will declare a moratorium at least until hte decision of the world economic conference is made known. Raleigh Side Show Shorts About the Political Situation In the State Capital Dally Diapatch Bnrena, In the Sir Walter Hotel. Pr J c. lIASKKUVII.L. Raleigh, June 2.—Who will be ap pointed the new commissioner of par dons? This question is being heard more frequently than heretofore to day, as the result of the announce ment that Tyre C. Taylor, who has been acting temporarily as commis sioner of pardons, has been appoint ed as counsel for the Reconstruction Finance Corporation in Washington and will leave within the next ten days or so to take up his new posi tion. It has been believed here for some time that Taylor was in line for a good Federal appointment as the result of his work as ryitional president of the Young Democratic 'Clubs of America during the last cam paign. There is no doubt that the Young Democrats did a great deal to help roll up the big majority that Mr. Roosevelt got. It was also ex pected that Mr. Roosevelt would re member the service which Mr. Tay lor rendered. He has. APPOINTMENT SPEEDED. While the new Federal job for Tay lor was in process of being developed, it was also expected that he would be retained by Governor J. C. B. Ehringhaus as commissioner of par dons. He was familar with the rou tine of this work, having served un der former Governor O. Max Gard ner as executive counsel —which is the same job with another name—so that ihe was able to carry on the parole work as in the past. Because of the slowness with which Federal ap pointments have been coming out of Washington, it was thought that it might be from several weeks to sev eral months before the job for Tay (Continued on Page Pour.) March 31, 1917. On May 31 the government had a deficit for the eleven months of the fiscal year of $1,684,232,719. During the period it had collected from all sources sl/793,267,654 and had spent $3,477,500,374. The collections totalled slightly .more than in the same period of last year when they amounted to $1,7<0- <269,398, and the expenditures were nearly one billion less than a year ago when they totlaled $4,390,48 1 ,799. HENDERSON, N. C., FRIDAY' AFTERNOON, JUNE 2, 1933 Our Delegates Sail for Economic Conference HRHraF wmBMffiEBMBMBMMNNMeIgf A- * MHH wL - -v*: 8 R j 8 jr —j rTz MM Three or the six United States delegates to the World Economic Conference in London are shown as they sailed from New York. Left to right are Senator Key Pittman, of Nevada; Secratary of State Cordell Hull. Relief Office In Raleigh Finds Situation Better All Over State IS LESS $651,300 Available from R F C for North Carolina in June, n>f Which Vane Will Get $4,350 Allotment Raleigh, June 2.— (AP)—The Governor's Office of Relief an nounced today that “reports from all sections of the State indicate a considerable in employment” as it released coun ty rel es fund allotments for June. will be $651,300 available for distribution durnrr the month, about 13 percent less than was asked of the Reconstruction Finance Corpora tion. Due to improved conditions, how ever, the office said, “it is anticipated that funds made available will be sufficient tto/mieet necessary nelief needs. It was figured June requirements will be at least 20 percent below those, for May, when 866,000 was distribut ed. The allotments by counties, include: Vance, $4,350; Warren, $3,5,00; Gran ville, $4,350; Franklin, $4350. More Lobby Reports Are Sent State W. R. Vaughan Re ports Receiving and Spending $268.75 During Legislature Raleigh, June 2.—(AP) —The Lig gett and Myers Tobacco Company paid Janes Fuller, of Durham, a few of $1,500 for illegal services in con nection with his lobbying activities iduring the 1933 legislature, the com pany reported to Secretary of State Stacey W. Wade today. The company ireporteid it paid nothing to F. L. Fuller, Jr., of Durham. W. R. Vaughan, of Henderson, working for the Railway Employees and Tax-Payers Association, reported receiving and spending $268.75 dur ing the session of the legislature. WEATHEF FOR NORTH CAROLINA. Far tonight and Saturday; slowly rising temperature Satur day and in extreme west portion tonight* chairman, and Representative Samuel D. Mcßeynolds, of Tennessee. Secretary Hull, who is making his first trip to Europe, is accompanied by his wife and niece. Mrs. Paul Hays. Britain Is Now Waiting Debt Move From America Chamberlain Tells Commons Washington Has All Facts, and He Fears To Make Any Comment Whatsoever Lest It Might Queer Delicate Situation London, June 2 (AP)—Chancellor of the Excheuquer Neville Chamber lain, during debate in the House of Commons teday on foreign affairs, again refused to disclose Great Bri tain’s war diCUt policy, but intimated the government is awiaiting some new move from Washington. Cihamlberliain said he feared* that “any word of mine, however inocu ous its intention, might be subject to misunderstanding on. the othe<r side olf the Water.” THINKFUGITIVES FOUND IN FLORIDA Posse Forces Group From Cars In Gun Battle and Presses Hunt Miami. Fla., June 2—(AP) —A posse led by Sheriff Carl Curtis, of Dela ware county, engaged a group of men thought to be fleeing Kansas con victs in a running gun fight in the hills 20 miles south of Jay today, Curtis reported to Sheriff Dee W'alters here Sheriff Curtis said the posses routed the fugitives from their automobiles and they fled on foot. No one was wounded, he said. He asked for rein forcements and Sheriff Watters ar ranged to leave immediately with all available Ottawa county officers. It could not be learned mow many were in the fleeing group. Watters said the men apparently were those who escaped from a Siloam Springs, Ark., posse late Wednesday night after a gun fight. Publication Denunces Their Omission From Com pensation Law Daily DlapatcA Bnren*, In the Sir Walter Hotel. BY J. C. BASKERVILL* Raleigh June 2 —One oif the “Bank discriminations’ in the new school machinery law passed by the 1933 General Assembly i s its elimination of the teachers from the provisions of the Sltate workmen's compensa tion act, according to an editorial in the last issue of The North Carolina Teacher, monthly publication of th North Oarolin a Education Association. (Continued on Page Seven.) A ~ * PUBLISHED EVERY AFTEWNOOE EXCEPT SUNDAY. He dded h e was not prepared to “take any risk of saying anything which might however inadvertently, prejudice a satisfactory soluLtion on a very delicate question.” The chancellor asserted that the United States government was in full possession of the British view on the subjects. Oham'berlafn declined yesterday to reveal the British government's view point in regard to the $75,950,000 debt installment due America June 15. Police Baffled by Kidnaping of Waif Cincinnati, Ohio, June 2. —(AP) —Polioe today /found themselves (baffled by Cincinnati’s most un usual mystery in years, the kid naping of the bahy girl of a poor (family. Since fiv#-weeks : -oid Ransy Sneed vanished Wednesday with a woman posing as a nurse, author ities have worked fruitlessly. They can’t understand what any -one would want with the unwell, infant of jobless John Sneed and his 21- year-old wife who came here ten months ago from Hiawassee, Ga. One Convict From Kansas Pen Seized Siloam Springs, Ark., June 2 (AP) —Lewis Bechthel. one of the eleven convicts who escaped from the Kan sas penitentiary Tuesday, was cap tured at noon today at a farm house one and a half miles from! Dripping Springs, Okla., He. admitted his iden tity. Posses were close behind two of his companions. The scene of the capture was eight miles northwest of here where the search has centered i n the remote hilly section for three convicts since •arly yesterday. RETAIL PRICES OF GASOLINE ADVANCE Rale'gh, June 2.—(AP)— The retail price of gasoline advanced generally over he State today by 2.3 cents per gallon, representa tives of the larger oil companies operating in this section said this morning. Most Raleigh filling stations put «h.e price at 21.4 cents per gallon, less two cents discount for cash, when they opened for the day’s business, but some stayed at the old price of 19.1 cents. 8' PAGES TODAY FIVE CENTS COPY AsSIfEFOR; Would Raise $227,000,000 For Interest and Sinking Fund on $3,300,000,- 000 Project corporate" income DIVIDEND ASSESSED One Tenth of One Percent Capital JStock Tax Would |Be Re-Enacted, and Pri vate Banker’s Exemption From Capital Loss Deduc tion Is Removed Washington, June 2.—(AP)— A complete substitute for the House farm and taxation measure to finance the 3.300.000 public works section of the industrial recovery bill was laid before the Senate Finance Committee today by Chairman Harrison. Under its provisions, the existing law is strengthened against private bankers and partnerships. Exptiling it was his individual plan, Harrison told newspaper men before going into the executive ses sion the substitute would raise $227,- 000,000 and provide: A tax on corporate dividends with held at the source, $70,000,000. Re-enactment of th e one tenth of one percent capital stock tax, $80,000,- 000. Removal of the private bankers’ exemption from the capital loss de duction provision of last year’s re venue act, and denying the individ ual the rights to take up on his per sonal return the distributive share of any partnership losses, $15,000,000. Increase of one-half cent a gallon in the gaaoline tax, $62,000,000. The Harrison program eliminates the House income tax increases, re duces the House gasoline increases by one quarter of a cent and changes the corporate dividend tax so it would be collected at the source, and there by saving administrative expense. The committee cnairman said the public works bond issue required only 'an annual revenue of $220,000,000 for interest and sinking fund, and hU program, therefore, “provides the nec essary revenue and allows for a mar gin of safety of $7,000,000.’’ Robot Plane Off On Non-Stop Hop Across Continent Los Angeles, Cal., June 2. (AP) lieutenant Commander Frank Hawks, flying a robot-con trolled 14 cylinder airplane, took off from the munpeipaj airport here at 5:51 a. m. today on a non stop flight to Floyd Bennett field. Brooklyn, N. Y. He planned to test the automatic pilot, and was not necessarily seeking a speed record. U. S. Taxes Up Sharply For State $8,000,000 More Col lected by Grissom in May Than Same Month Last Year Raleigh, June 2. — (AP) —North Car olina will hand over to Uncle Sam in Federal internal revenue taxes for May nearly $8,000,000 more than it did in May, 1932. Collections for the month, announc ed by Gilliam Grissom, collector of internal revenue, totalled $25,305,182 as compared to $17,619,923 in the cor responding period last year. “It seems that conditions are, get ting better by leaps and bounds,” Grissom said. “There was evidence of a general upward trend in our col lections of income and t especially tobacco.’’ The announcement followed closely one that Revenues for May more than t doubled those of last year.