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HENDERSON GATEWAY TO CENTRAL CAROLINA I WENTY-SECOND YEAR Roosevelt To Ask For Four Billion BATTLE ON SALES TAX MAY BE BITTER ONE THIS SESSION bonic Indications That Anti- Sales Tax Group Prepar ing to Fik'ht To Finish SUPPORTERS SEEN FOR SUBSTITUTE PLAN Dr. Ralph W. McDonald, Winston-Salem, Rumored As Leader of Fight and Also Reported Author of New Bill That Has Very Strong Backing in State Hail*’ I Mapiitch Rarrac, In i *a«* Sir Waller Hotel, Hr J. C, ttawkorvflle. Raleigh. Jan. 5 The anti-sales tax I'ot’ces are now in process of evolving ( bill that will yield all the revenue i ceded- without the sales tax and j v liich they will propose as a substi ■ 'i*«* for it. according: to reports heard i b re today. 'Phis is regarded by some aii indication that the anti-sales • \ forces, even though they have been unusually ouiot for several months now. are preparing to put up ■i fight to the finish against the sales ■ in the forthcoming session of the .islnture and that they will offer a definitt revenue-raising plan in its : !acc something they failed to do in the 1f33 session. According to the reports heard here. 1 »r. Ralph W. McDonald of Winston va.letn, Forsyth county, has been se- j tinted to lead the anti-sales tax fight. 1 !i is also reported that he has written the hill which will be proposed as a substitute for the present 3 per cent | -nles tax and that it will he supported j ' the North Carolina Merchants As- , joinfion. of which Willard L. Dowell ectetary. by the Fair Tax Asso -1 '"lion, the organization of anti-sales uxors formed more than a year ago John Paul Leonard of Statesville. - d probably by the Raleigh News o,<l Oh-i rver. which lately has been j becoming more and more outspoken I i its opposition to the sales tax. al ’ bough in the 1931 session of the general assembly it. anil its then edi 'or. Josephus Daniels, led the fight for the enactment of a sales tax. It i understood that Dr. McDonald has ’ ready held several conferences with b'hnathan Daniel, present editor of e News and Observer, while his 'her. Josephus, is serving as U. S. Ambassador to Mexico. It has not been heard here yet what j ■ attitude of the other editors and , i oers in the state which are oppos ’d to the sales tax will be, but it is j '•uncled that they will also support I*' McDonald's bill, if and when it forthcoming. While no definite information has been obtained yet as to the nature of j (Continued on Page Two) LLOYD GEORGE IS IDOL LABOR PARTY His Own Liberal Party Has Frittered to Nothing; Lab orites Cheer Him By LESLIE EICHEL C entral Press Staff Writer New York, Jan. 5. —An interesting ’•dug is occurring in England. David I'loyd George, war-time Liberal prime minister, is becoming somewhat of j' idol of the Labor party. His own Liberal party has fritted to nothing. When Lloyd George denounced teh • N dionaJist government for the inade •juaev of its bill to relieve depressed ' ms Laborites (whom the Conser ' ive- term Socialists) cheered Lloyd C 1 urge. '' , 'ld the forr/’r prime minister: 'The age of miracles is past. You ■mot feed the multitude with two ‘■'•mmissioners and five sub-commis •icners. "The new commissioners are being " nt on their apostolic mission, not Without purse and scrip, but pretty nearly that—just with a little pretty ea h to deal with a problem costing 300.000.000 a, year.” 1h ” sum appropriated by parliar Hunt f Ol ro ij e f Q f the distressed areas sl(|#'M).ooo. An American con ■sman would be ashamed even to ■ ' e for suclr a small sum, Lloyd . had said previously. "'»UK WAR ERRORS 'he fifth and last volume of Lloyd "nige’s memoirs are feared in of ’yl English circles. 'lie war-time prime minister has " d r)e will tell of colossal blunders (CoittLuued on Vnge, Two) -* L* A U J’nav Hrttiterson Daily Dispatrh LBASBJL) WIRE SERVICE OF TUB ABSOCIATBD PRESS. Lost Ship’s Captain in Probe : ’’ ■'^jjM^^^^^^^^^^^^mnSSS^SSSSSSSSESSSSSSSSSSiSSiSSSmmSS^im JPI’ MMMpr 114 ll jiff SL - IRS wHUp | I' JHH w MiSBMV Mm ■> ’VnMSn Ksk .W. \ Jfl HL WMmaMMSI. MWMW (Yilliam Pendleton, captain of the S. S. Lexington, which was cut in twt in East River, New ork, while more than 200 wore aboard, is seen being questioned by Assistant District Attorney Sylvester Cosent)no, as inves tigation of crash gets under way. (Central Press) Outlook For Harmonious Session Os Legislature May Mean A Shorter One % ——— ■ t* However, Some Believe That Problems May Crop Up To Make Ses sion Stormy SALES TAX, SCHOOLS AND REVENUE LEADERS Most Outstanding Matters Are Listed With the So- Called Highway Surplus Getting No. 1 Position and The Sales Tax Problem Ranks Second Diiily l>iN|iiit«*h tlurraa, In tbe Sir Winter Hotel, Bv J. d, Banker-ville, Raleigh. Jan. 5.—-A fairly harmon- ! ious session of the legislature, at least j much more harmonious than the past two or three, seems to be in prospect | when the 1933 General Assembly con- j venes here next Wednesday. As a re- ■ suit, a good many observers are in- < dined to believe that the session will not last more than 75 days at the most. However, there are others who believe that this apparent quiet now is only the calm that precedes a j storm and that when the assembly gets under full steam and into the consideration of the sales tax. the school problems, the hunt for new re venue and the many toher matters to come before it, that it may turn out to be as long a. session as any of Its predecessors. The more outstanding matters that will come before this session of the General Assembly and have to be dis : posed of by it, are as follows: 1. Disposition of the highway fund | surplus and whether or not it will divert any more of the highway re -1 venue to other than highway uses. 2. The sales tax and whether to I change it. lower it. increase it, repeal ! it or leave it as it now is. 3. Teachers’ salaries and how much they shall be increased. (. State employes’ salaries and how much they shall be increased. 5. Unemployment insurance and old age pensions. 6. State drivers’ license and enlarg i ed highway patrol. 7. Largei appropriation for the Uni versity of North Carolina and other State educational institutions. 8. Expansion of other State gov ernmental services through larger ap propriations for their activities. 9. Consideration of numerous new plans for getting additional revenue to supply the enlarged budgets needed. 10. Prohibition and whether to re vise or repeal the State's present dry law. 11. Whether to redistrict the State in compliance with the constitution or leave it as it now is. 12. Unemployment relief and the ex tent to which the State will have to participate with the Federal govern ment in continuing relief activities. Therew ill be still hundreds of oth er matters that will come before the legislature, of course, since with its 170 members there will be almost as many plans proposed for the solution of all the major problems. But the prevailing belief here is that the twel ve matters just named will become the most important with which this legislature is called upon to dea'.. That the biggest legislative battle {of the entire session will revolve a : round the highway surplus and diver sion of the highway fund, is already generally conceded. For the legisla ture will have available in the high (Continued on Page Two) ONLY DAILY NEWSPAPER PUBLISHED IN THIS SECTION OF NORTH CAROLINA AND VIRGINIA. Hauptnnmn Trial Pictures On Page 3 | I'ag** 3 of this newspaper is a I pictorial page, depicting the hap penings at the trial of Bruno Richard Hauptmann, German car penter, for the murder of the in fant son of Col. and Mrs. Charles A. Lindbergh. The pictures are of those who have figured much in, public print since the. start of the> j trial ASKS IF REPUBLIC Milo Reno, Farm Holiday Leader, In Speech Before New York Republican Club ■ | SET UP DICTATORSHIP Questions If There Is A Conspiracy i To Establish Military Rule By Increasing Poverty and Want New York, Jan. 5. —(AP)—Milo j Reno, leader of the Farmer holiday movement, today questioned whether there is a. conspiracy to “overthrow this republic and establish a military dictatorship. In a speech before the New York. Republican club, Reno asked: “Is there a determination to de stroy this republic by forcing our peo ple into that state of poverty and de spair that they will either tamely sub mit and surrender their liberties or in their desperation resort to revolu tion which would end the reign of three governments in America and result in a military dictator, a mili tary tyranny? “If not.” he asked “why permit our people to suffer the agonies of bank ruptcy. the discouragement of pover ty. unemployment and starvation, when the doing of two things, will restore a degree of prosperity that , will permit a readjustment of the in equities and establish justice and prosperity in the place of wickedness and poverty?” MANY INJURED IN 0 200 Peasants Attempt To Capture Police Head quarters and City Hall Vera Cruz, Mexico, Jan. 5. —(AP)— A number of persons were wounded, several seriously enough to require hospital attention when gendarmes fired on 200 peasants, attempting to capture police headquarters at Los Tuxtlas, reports reaching here said today. The peasants, it was reported, also tried to take over the Los Tuxtlas city hall. ispatches from Jaiaca said troops have left that town to pursue an arm ’ rid band in the vicinity oi Tlattocojaat. HENDERSON, N. C. SATURDAY AFTERNOON, JANUARY 5, 1935 REILLY TO CLAIM FOUR PERSONS ARE BABY’S KIDNAPERS ! Says He Will Name Them At Trial Next Thursday At Flemington, New Jersey TWO MEN, TWO WOMEN FORM THE QUARTET y When Asked If Hauptmann Was One, He Said “No”; Defense Attorney Will Use Three Groups of Witnesses In Trial; Hauptmann Be First Defense Witness New York, Jan. s.—(AP)—Edward ' J. Reilly, chief defense attorney for : Bruno Richard Hauptmann, said to day that next Thursday in Fleming ton. N. J., court, he would name four { persons and charge them with kici j naping of the Lindbergh baby. “They are two men and two wo men,” Reilly said. Reilly was here for a conference with handwriting experts. He denied published reports that jvthe defense would attempt to prove j that the body of the baby was not I that of the infant son of Colonel i Charles A. Lindbergh. ; Thed efense attorney declined to ! name the four persons he said, had j engineered the abduction. I Asked if his client Hauptmann { would be one of the four he would ; name, Reilly replied “No.” The defense attorney announced i that Hauptmann would be the first defense witness and intimated that ' the defense would construct its case |on three groups of witnesses, j The first of these groups, he indicat : ed. would he utilized to establish a I “complete alibi, ’ the second would be j handwriting experts and the third, I fingerprint experts. ARMSP^FOUNO^ v ) ; Police and Federal Agents Search for Five Truck Loads Headed for Mexico Los Angeles, Jan. 5 (AP)—A plot : to smuggle arms into Lower Califor ; nia was disclosed by police here today as federal agents and officers went ' through Southern California south to intercept five truck loads of arms, machine guns and ammunition re ported intended for a revolutionary plot in Old Mexico. One suspect, whose name officers refused to dis close, was held here. The shipment of arms and ammun ition. which it was disclosed, had been guarded in Los Angeles for months, was reported to have been started toward the border late last night. Three Men Given Maximum, Women Probation in Union Station Massacre Kansas City. Jan. s.—(AP)—Maxi mum sentences of two years imprison ment and SIO.OOO fines on the four men convicted of the conspiracy to release Frank Nash. Federal prisoner, which ended in the death (by machine gun fire of Nash and four officers at the Union Station here June 7, 1933. The three women defendants were placed on probation by Federal Judge Merrill E. Otis. After he had sentenced the women for a year and a day fn the Federal Penitentiary and fined them S3OO , each, the sentences were suspended but Judge Otis said that the fines must be paid on or before Septem ber 1, 1935. The probation is for three years. “weather FOR NORTH CAROLINA. Occasional rain with slowly ris ing temperature tonight and Sun day. FOR HENDERSON. i For 24-hour period ending at noon today: The highest tempera i ture reported was 52; lowest 21? no rain; northeast wind: The sky . ' 'ira*. pajrsA; si maj<. To Testify Monday HHralP >•••• If JP ■ m. • Jm Byß I ’ wm 1 Here is Miss Betty (Sow, Scotch take the witness stand at. the open nurse of the slain Lindbergh baby 01 cou, t Monday in Fleming , .. , , ~ ~ ; ton, N. J., in the trial of Bruno Rich and the last person, other than the Woilfmann D f aia Hautmann on a jpharge of mur kidnaper, to see him alive. She will , dei’ of the baby. Rival Counsels Match Moves, Call Witnesses Into Secret Sessions Mother Sobs Over Bruno Hauptmann Kanienz, Germany, Jan. S.—(AP) Bruno Richard Hauptmann’s aged mother, Frau Pauline Haupt mann, wept unrestraingly today as she reiterated her son’s in nocence of the charge of kidnaping Col. Charles A. Lindbergh’s baby, crying “No it cannot be true.” “There’s no rest for me in the world,” the* woman exclaimed sob bing and wringing her hands. “Oh, Lord, why has such disaster 1 come over us.” LEGISLATURE MAY GIVE MORE PATROLS ! Increasing Accidents Cause For Movement that Starts In The East Daily Disp«tel» Bwrcaw, la the Sir Walter Hotel, BV J. C. BASKEBVILL. Raleigh, Jan. 5. —The people in the eastern part of the State are at least thoroughly aroused over the increas ing automobile accidents on the high ways and want to see the highway patrol enlarged and its duties confined to patrolling the highways and noth ing else, Senator Rivers D. Johnson of Warsaw. Duplin county, said here today. He said he was going to do everything possible to see that the highway patrol is enlarged to at least 200 patrolmen, an average of two for each county, and also to have them relieved of their present duties as revenue collectors and as gasoline • inspectors. “Too many people are being killed (Continued on Page Five) WALLACE CALLS A COTTON CODE MEET Washington, Jan. S.—(AP) —Secre- tary Wallace today called a hearing : on a proposed code on the raw cot ton industry to be held in Washing l ton January 23. : The code would seek to regulate the buying, selling, trading in, or mar keting of cotton after it is ginned and , ■vFc.uJd. tecioia • ♦•(.. c. ittl-/ acilli. PUBLISHHD BVB3RY AFTHMNOOM BXCifIPT SUNDAY. Both Legal Staffs Withdrew From Flemington, State to Trenton; De fense to N. Y. BETTY GOW CALLED TO TESTIFY MONDAY Crack Federal Agents to Be Brought In As Witnesses; Reilly Calls Conference of Handwriting Experts To Prepare Case In Regard to Kidnap Notes Flemington, N. J., —(AP) —Bruno Richard Hauptmann’s prosecution and defense matched move for move today, calling witnesses in secret ses sion to reinforce the contentions that he did—and did not—commit the Lind bergh murder. Both legal staffs withdrew from Flemington for the week-end and re cess* in Hauptmann’s trial for life, the prosecution to Trenton and the de fense to New York City. The State summoned several Fed eral agents, the crack operatives, who tracked down the Lindbergh ransom money, and who will be major wit nesses for examination. Attorney Edward J. Reilly, chief of defense, said, “I am calling a con (Continued on Page Four) THOUSANDS DYING OF DREAD MALARIA - 3,000 Reported Dead In One District on Island of Celon In Indian Ocean Colombo, Celon, Jan. 5 (AP) —-Near- ly three thousand deaths in the dread malaria scourge were reported today from a single district from this In dian Ocean island surrounding Keg alle in the southern section. Os these, nearly one thousand oc curred among young children, said the report, which said the infection con tinued to spread. It was stated some 250.000 persons had been stricken with the disease, the death rate be ing extremely heavy -snenalb r - nm.g wait * _ 8 PAGES TODAY FIVE CENTS COPY, | WILL USE FUNDS TO ” AID ‘AMERICAN MAN’ ANDJJIT RELIEF This Would Begin July 1 So All Would Not Be Spent Before Business Gains SEVEN STEPS GIVEN PRESIDENT CONSIDERS If Congress Grants Huge Sum Asked, The Budget Will Be Eight Billion Dol lars; Congressional Lead ers Go Into Huddle After President’s Message Washington. Jan. s.—(AP> Presl- Hent Roosevelt intends to. ask Con jrress, an authoritative source said today, to provide four billion for what he termed the “American Man” to “quit this business of relief' and put 3.500.000 unemployed to work. This as outlined by persons prom inent on Capito] Hill would b« the work relief figure for the fiscal year beginning next July 1. so it would not all be spent if reviving business ab sorbs enough of the jobless. For ordinary government expendi ture running in the year, it was in dicated that about four billion dol lars would be required. Thus the bud get would be about eight billion dol lars. Congressional leaders went into last night’s important conference on the future of the New Deal only a few hours after hearing the Presi dent in his first message to the 74tb Congress enumerate many tasks. Although there was no detail an nouncement. of last night’s discussion, one conferee who would not be quot ed by name, listed these things ab among those the President is consider ing or has definitely decided to re commend: 1. Old age as well as unemployment insurance!. 2. Continuation and modification 6t agriculture administration act. -v --3. Authorization of telephone-teltP graph measure with the Federal gov ernment .possibly fixing t'Atds for the monopoly. 4. Conlinuatioii (it .{OG.boOXKW! em ergency “nuisance” taxes, 5. Making permanent t.hfe ’present $5,000 maximum insurance of bank deposits under the Federal Deposit Insurance Corporation. 6. Continuation of the leading au thority of the Reconstruction Finance Corporation. 7. Enlargement of the resources of the Home Owners Loan Corporation. Bo I ivian Troops Rout Paraquayans In Bloody Battle Las Pax. Bolenia, Jan. 5 (API— Paraquayan attacks on the Bolivian lines in the Indevi Radelo sectors of the Chaco were bloodily repulsed to day, the war ministry stated, and the Bolivians, counter attacking, cap tured the enemy supply bases. SPOKESMEN AGREED CONDITIONS BETTER Industrial and Commerciol Activities Have Increas ed Appreciably By CHARLES P. STEWART Central Press Staff Writer Washington, Jan. 5.—A majority of spokesmen for business unmistakably, are agreed that economic conditions are somewhat improved with the re cent ushering in of the now year. That is to sa.y, these spokesmen feet some improvement. That ordinary folk feed much of it is more decidedly a debatable ques tion. Even admitting that industrial and commercial activity has increased ap preciably, has there not been a gen eral lowering of the national living standard? Supposing that a modicum more of opportunity is. available than during the worst of the depression, as if as remuneratixe as it was in pre-war years? It certainly is not as reumun erative as itw a sat the peak of thef post-war boom. That indisputably was a period of artificially, and cannot fairly be considered for purposes of comparison. But the pre-war era can! reasonably he regarded as h ,v; 4 been normal —or a trifle below x r dk