Henderson daily dispatch., June 02, 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
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
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EL
kmi Jpn
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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
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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.