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PAGE SIX DETAILS GIVEN ON KINSEY’S HEARING Mill Manager at Warrenton Held For May Superior Court there (Warren Record.) Loyd Kinsey, manager of the Peck Manufacturing Company before that concern was thrown into the hand;- of receivers, was on Wednesday aft ernocn bound over to the May term of Warren County Superior court un der bond of $15,000 by Magistrate Macy Pridgen who gave him a pre liminary hearing on a bill of indict, ment containing eleven counts and charging him with embezzling War renton Bonded Warehouse certificates and cotton issuing warehouse receipts for cotton which did not exist oi which was not present at the time and misappiopriating proceeds from cotton delivered to the Peck Manu facturing Company. Approximately S4O 000 is involved in the charges. Bond was arranged for Mr. Kinsey Wednesday night with B. R. Palniei of Warrenton and F. L. Toeplentan of Hendetson as sureties. Mr. Palmer is to be released from the bond as soon as Mr. Kinsey returns from Norfolk where he has gone to get Mrs. Toeple man to go on his bond. Mr. Kinsey was placed under ar rest on Saturday afternoon by Sheriff W. J. Pinnell upon a warrant sworn out by all the directors of the Peck Manufacturing Company. At that time he was placed under bond of SIO,OOO pending the hearing on Wednesday. Claude Bowers was Mr. Kinsey's bondsman at that time. The eleven counts against Mr. pin sey are representative of three main charges, which are as follows: 1. Embezzlement of Bonded Ware house certificates and cotton to the amount of 202 bales. 2. On different occasions issuing warehouse receipts to the Citizens Bank and Trust Company of Hender son, on Which he borrowed approxi mately $23,000 from the middle of February to April 1 on 290 bales of cotton which did not exist or was not present. 3. Misapplication of the proceeds from 41 bales of cotton delieverd to the Peck Manufacturing Company for storage by various tenants of B. R Palmer. Evidence was piesented at the hear ing on Wednesday by the state to show that on the 29th day of March Mr. Kinsey paid off a $12,239.80 per sonal obligation at the First National Bank in Henderson by the sale of 221 Bonded Warehouse certificates to Holmes and Dawson of Norfolk. It was testified that on the 6th day of Apiil 202 bales of warehouse certi ficates were given by the First Na. tion Bank to Holmes and Dawson's agent, F. L. Toepleman, and that on the same day Mr. Toepleman present ed the receipts for the cotton. The Peck Manufacturing Company pres ented evidence tending to show that 50 bales of this cotton had been pur chased from J R. King, four bales from R. E. Limer. that Holmes and Dawson held the certificates on 25 bales, which was identified as R. L. Capps’ cotton, and that 1,. C. Kinsey held the certificates for 123 bales. Roy Rodwell. cashier and vice pre sident of the Citizens Ban7c and Trust Company, said that the bank loaned the Peck Manufacturing Company ap proximately $23000 on receipts pres ented by Mr. Kinsey. Mr. Burton, exe cutive vice president of the bank stated that he had asked for the cot ton which the receipts called for and that not any of the cotton was in the warehouse. Through George W Poole, certi fied accountant, testimony was pre sented which tended to show that cer tificates were issued by Mr. Kinsey for cotton which did not exist. He explained that numbered tags were kept in the office of the company and that as cotton was purchased these tags were placed on the bales and listed in the cotton book. The num. ber of cotton receipts issued were far in excess of the number of tags taken out of the box and used, he stated. Through a deposit slip and other records the prosecution was able to bring out that 41 bales of cotton stor ed by tenants of B. R. Parmer in 1931 had been sold by Mr. Klnsev to An derson-Clayton Co., and that the money had been applied to Mr. Kin sey’s personal account at the Bank of Warren on the day that it closed its doors. G. W. Poindexter, bookkeeper and director of the Peck Manufacturing Company, testified that he thought | the missing cotton was in the mill, that it had not been removed from his hooks as it was supposed to have been when it was processed through the mill or sold. The bookkeeper stated that Mr. RE-ROOF NOW Pay For It At Your Convenience EASY TERMS '==SSB ! When you need a new toof let us protect you with Gomsco ASPHALT SHINGLES Tanner Roofing Co. Kinsey attempted to get him to make a false entry on the books—an entry which testimony tended to show, would make it appear that Mr. Kin -ey owed the company approximately $14,0(H) of the funds alleged to have been misappropriated in cotton mani pulations. Mr. Poindexter said that he did not make the false entry at that time but reported the matter to V. F. Ward president of the company, and that a directors meeting was called. He made the false entry later, he said, at the request of the directors to keep Mr. Kinsey here. Mr. Ward testified that Mr. Poin dexter told him that Mr. Kinsey had staved that if he did not make the false entry that he—Kingey —was go ing away or kill himself, and that the directors ordered the false entry made. Later, Mr. Ward said. Mr. Kin sey called a directors meeting and told the members of the board that he had lost a great deal of money ~cr the Peck Manufacturing Company ind that he had lost everything he tad, and that he was heavily indebted o the Peck Manufacturing Company Continuing his testimony, Mr Ward rated that Mr. Kinsey said that h\s property was in his wife’s name and hat he would try to get her to turn t over to the company, that he would ly to raise around $2 000 on life fn utance, that possibly he could get *5 000 from an aunt in Texas and ome funds from another- relative in ■wa On cross examination, Mr. Ward stated that Mr. Kinsey’s bank account was attached while Mr. Kinsey was in his trip. He also said that Mr. Kin- : ey turned over Peck Manufacturing I Company stock to the directors which • rad a par value of around sl3 000, and ris wife’s property. Mr. Ward stated that Mr. Kinsey lid not have any authority to gam, Ae in cotton futures. He said that he Peck Manufacturing Company leak in cotton futures in the way of hedging but not in the way of gam )ling. Hedging, he explained was done to prevent losses from changes in the i market. It was about April 4, Mr. ! Ward said, before he knew Mr. Kin sey had gotten money from Hender- J son on false receipts. R. T. Watson, treasurer of the com- j pany, also stated that Mr. Kinsey was given the authority to buy cotton con uacts but not to gamble. He said that , the company bought cotton futures j ‘to protect ourselves.” On cross ex- j amination he stated that he had ac- i cess to the books and to the checks | drawn. Mr. Watson said that when 1 Mr. Kinsey “laid his cards on the | ’able” at the directors meeting he did lot -av anything about the money he had borrowed from Henderson, and hat he "didn’t take into considera tion the ‘cotton he had stolen’.” Mr. Kinsey did not testify at the hearing, nor did the defense place any witnesses on the stand to rebutt the damaging testimony that rolled throughout the day from the mouths of witnesses for the Peck Manufac turing Company. The hearing began Wednesday morning about 10 o’clock and drew to a close at 5:30 in the afternoon. The defendant is represented by T. P. Gholscn of Henderson and John Kerr. Jr. Julius Banzet is represent ing the Peck Manufacturing Com pany. Many Bills Face Legislature With Adjournment Near lOc'itlQUed from Page one i House calendar tonight for its third and final reading. It is being said that it was offered as a “retaliatory’’ mea sure because House and Senate lib erals believed that Senator Hall John ston, of Buncombe, and a personal wet would vote for the Day bill after they had nelped him to kill the hotel tax seetion of the revenue bill. The question had been raised here that the Senate could not, under its rules, consider the hotel tax bill be cause it had previously rejected it as part of the revenue bill. Lieut.-Gover nor Graham, president of the Senate, however, has said that if the question is brought up he will be compelled to rule that the new bill ean be con sidered. The senate rule in question says that no bill containing the “prin cipal provisions” of a bill already de feated can be considered. President Graham will rule that the new bill may be considered because the hotel room tax was not a principal provision of the revenue bill, but only one of its more than 500 sections, a subsidision of the retail sales tax. It is also pointed out that the Senate approved the sales tax in general. Up for approval by the upper house is the biennial school machinery act, a sure-fire topic for debate. Passed on second reading at Friday’s mid night session by the House was the textbook rental bill. Final approval of both houses is slated for this week. Also passed by the House was the bill which authorizes the governor and the Council of State to issue bonds for $500,000 for the use of the State hos pitals for the insane. Ater heated de bate it was passed, 38-23, a bare quo rum being present. The measure will i be acted on by the Senate this week. A great number of Hills relating to ! the duties of various county officers 1 and contemplating changes in judicial ' procedure appear on the calendars of both houses. ' Unsettled as yet is the matter of re duced license tags for cars. Sent to a joint conference committee, the conferees have been utterly unable to ! iron out differences of opinion be | tween the senate and house. The ulti mate result may be that the legisla i ture will adjourn without changing the present scale of license costs. Tonight Senator Coburn, of Martin, is expected to offer a bill which would legalize the sale and manufacture without taxation, of natural, or table wines. According to federal regula tions such wines must contain not I more than 14 per cent of alcohol by weight. The bill will likely gain the support of several legislators who voted against the Day liquor bill, but, as adjournment is near, may not be acted upon. Both houses have several bills which require roll call readings and which have passed on two readings. Formal approval of these bills is all that is lacking, but the passage of such meas ures requires time. Final adjournment is confidently expected this week. Last week both houses accepted the conference re- HENDERSON, (N. C.) DAILY DISPATCH, MONDAY, MAY 6, 1985 CROWNING TRIUMPH In his latest starring comedy, "Life Begins At 40,” WILL ROGERS interprets a double-fisted, tender-hearted country editor who sends hu enemies down in a gale of mirth. It is a fun-studded Fox Film production At the Stevenson on Thursday and Friday. ERA Relief Worker Shows How To Start Own Concern RaLigh, May 6—From a worker on NRA projects to the head of a sub stantial business, employing 12 per sons, eight of whom were formerly on the relief rolls, is the course trav ersed by J A. Grooms, of Charlotte, according to an analysis of his case history as reveled todoy by Mrs. Thomas O’Berry, State Administrator. Three years ago, Mr. Grooms, who was always interested in chemistry, was employed in a silk dyeing con cern. The fir'ni failed, but in his lab oratory work, he had evolved a for mula for a powder and fluid capable of serving as cleaner, deodorant and dis infectant. Grooms set up a plant and entered business for himself. Then his wife who had been office assistant and trusted advisor died. One after an other, his children had to have their tonsils removed When his older daughter had equip ped herself for acting as office assist ant, the father suffered an attack of ports on the revenue and appropria tions bills, the two major and absolu tely necessary pieces of biennial leg islation. Direct* A.T.&T* Quiz 1 iiiil 55k a M- W : y>* 7 • f '■ O. M. Gardner Government investigation of the American Telephone and Tele graph Co. was pushed when the federal communications commis sion named former Gov. 0. M. Gardner, above, of North Caro lina, to direct the legal staff pur suing the inquiry. Congress has appropriated $750,000 for the in vestigation, and hearings are t« begin soon. DUKE’S FINALS SPEAKERS llggggp v ; m liilH ftfll KMMlllllilMtifli > 1 Glenn Frafek (left) president of the University of Wisconsin, and Lynn Harold Hough (right). Os Grew Theological seminary, Miadiston, N. J, will fee the principal speakers at Duke university’s 83rd commencement. acute appendicitis. For several weeks physicians despaired of his life. The family of rooms assisted by the Salvation Army when the ERA began functioning. After investigat ing the application for relief Grooms was assigned to laboring work on a project. One day he happened to tell the ERA Administrator about his formula and was encouraged to begin manu facture. Capital was needed and he again approached the Administrator for a loan of $35.00 to help carry on saying that a Charlotte busines man had offered that amount for 51 per cent of the business. He was advised not to sell and an appointment, for which he had been trying, was arranged with the city manager. The city manager purch ased two barrels, and the board of county commissioners one barrel, of the product. These sales provided the needed im petus and the business was expended immediately. The product is now to be found on the shelves of many stores in North Carolina, and, with a bus iness firmly established, Mr. Grooms faces a more secure future. Today Mr. Grooms said to the Ad ministrator, “I’m here to thank you and your co-workers for the magnifi cent work you have done for me. I just do not know what would have happened to my family and myself without your assistance. Now I am in position to pay back. I have 12 persons in my employ. Eight of these were formerly on relief and I’m just hoping our business will continue to grow so we can call on your office for more workers ” mmm No Money Is Paid Now, But Votes May Be Influenced In Other Ways By CHARLES P. STEWART Central Press Staff Writer Washington, May 6.—Another at tempt is being made to restrict lob bying in Washington: Wife Preservers lje:3ree<\ ___ l^jj Use a dull knife or a steel pot cleaner to scale fish, and scrape toward the head. A sharp knife may cut the flesh without remov ing scales- j June 1-3. In addition to being Duke’s first week-end commencement, the fin als program this year will compromise £ number of special highlights includ ing the dedication of the university chapel. s STORMY LOVE , A YOUNG MAN’S ROMANCE HEAD THM* FtTtRT: Carefree Lieutenant Valentine. Preston, attached to a gunboat in China, in rushing to the harbor at Shanghai to bid goodby to his child - hood sweetheart, Janice Edding, who is sailing with her family to the United titates, is frustrated when an attractive girl takes the last sampan to the tine i anchored in the ban. A friend and Annapolis classmate of Val’s, Brad A 'orris, also going to the liner to say good by to the Edding family, saves the situation by giving Vat u lift in his boat. (NOW GO ON WITH THE STORY) CHAPTER 3 “AFTER THAT hare-brained hunt ing trip you just pulled while you were up-river, you should be trying your fine Italian hand at diplomacy!’ lirad chaffed. “What got into you, tellah? Going off alone into bandit territory after ducks! Why wont you stop to think before you do things like that? My God, its about time you were growing up. There would have been a fine Inter national complication if an American naval officer had been taken prisoner You must have heard what those chaps did to the Englishman they kidnaped last month and what a mess there was rescuing what was left of him. You came darn close to a court-martial when the admiral got wind of that jaunt of yours, Val.” “Don’t worry, I’ve been informed of my senior's displeasure in abou£>' aine different languages,” Ta» grinned cheerfully. “A lot of fuss about nothing. I was bored stiff up there, had a week-end free, took a few drinks ashore and decided to go out after birds. There was no danger. It was raining cats and dogs and you know how a Chink oandit hates water.” He offered Brad a cig aret and deftly switched the conver sation. “How,” he asked, “is the beautiful wife. Sue?” "Why—Sue is all right.” Some thing in Brad’s tone caused Val to glance up quickly. Surely there couldn’t be anything wrong with the Norrises? Sue was spoiled as the devil but Brad adored the very ground that red-head’s little feet trod upon. Avoiding* Val’s eyes. Brad added. "Sue went aboard early to help Jan and the kid sister get settled for the voyage. 1 had an idea you would be with them. Tough luck to have Jan sailing just when you’ve re turned to port. What did you think Os Captain Edding’s orders?” Val stirred uneasily. “I didn’t know they were leaving until I drove out to call a while ago and the gar dener relayed the news.” “But 1 thought you had a date With Jan last night—” Val chose to ignore the implied Question. “Where is Captain Edding bound?” he asked hastily. “West coast duty. Captain of the Puget Sound Navy Yard at Bremer ton, Wash.” “Holy Cow!” Val exclaimed. “I Was there once and of all the deadly holes! ” There was a moment of silence be fore Brad said, “Oh, I don’t know. I uu going there myself next month.” “To Puget Sound Yard!” Vai Stared in amazement. “But you only reported out here three months ago l Bay, how come?” “Tell you all about it later, Val." There was a strained note in Brad’s voice. “No time now.” The sampan had come to the , steamer’s side and as the two young officers ascended the gangway and ; stepped on deck Val saw that every . available space was filled with a laughing * chattering crowd; squat- : ting Chinese curio dealers were re- 1 luctantly beginning to pack brocades, i cloisonne, crystals and jade; the Fili- i pino orchestra strummed a languid tango; a Cantonese boy with a tune- i ful gong sounded the half-hour ] warning for all visitors ashore. £ At the gangway the two men sep- . arated and each set out in an oppo- \ site direction to seek the Eddings. 1 The going was slow and as he v pressed through the throng Val eag- Senator Hugo L. Black of Alabama is its principal sponsor. The last crusade against lobbyists was directed by the late Senator Thaddeus H. Caraway of Arkansas, six or seven years ago. The Arkan san, a merciless investigator, dug up a vast deal of highly interesting in formation in support of his demand for the regulation of folk engaged in the business of influencing (or try ing to influence) national legislation. He never, succeeded, however, in get ting his proposed regulatory system adopted. Moreover, shortly before his death he told me that he questioned the practicability of such a system. “To control lobbying,” he said, “it is necessary to define a lobbyist—and it is almost impossible to do so.” NO MONEY PAID Until Senator Caraway arrived at that opinion it had been his plan to require all lobbyists to register as lobbyists. This also is Senator Black’s plan. In addition, the Alabaman believes that any one so registered should be required to make monthly reports of his expenditures and other details of his activities to some suitable au thority, Now, there may have been a time when lobbying in the capital was so crass ii,s to be characterized by actual payments of money for lawmakers’ votes?, but that time (if ever) cer tainly.. is long past. Indeed, the sub_ ject was quite sensationally discussed in the Senate chamber just before the present administration came into ;»oweir.. Sergeant-at-Arms David S. Barry, a Republican officeholder, formerly a newspaperman realizing that he soon was to lose his political job and seek ing to regain his erstwhile status in the press gallery, published an ar ticle, deploring what he described as the legislators' susceptibility to in fluences far from Capitol Hill, but admitting that he did not know of “many” of them who accepted out right cash. Promptly called to the Senate bar to give the names of the few except tions, Barry had ot confess that he knew of none at all. George E. Browne of Providence town, Mass., artist, born at Glouces ter, Mass., 64 years ago. By BELLE BUEN4 <; K0)IF “A* I live, my best gal!” erly scanned each group for a sight of Jan’s slim figure and proud little golden head. Presently he heard an ecstatic voice that called his name and swung about to catch up a small blonde girl of 10 who threw herself into his arms. “As I live, my best gal, Mimi!” he cried and hugged her close. Dear, funny little kid. She had been three months old on that tragic day when he’d had his first glimpse of her—a day after a careless motorist had struck down and killed her young mother. His own parents dead, he had been in boarding school when the news of the accident reached him. He had known that Captain Edding was at sea on the Caribbean cruise, had realized what Jan must be suffering alone, and so he haa slipped away from school to trudge the weary miles in to Boston. Now, as if it were yesterday, he recalled how he had stood beside Mimi’s bas sinet and struggled to allay young Jan’s silent, dry-eyed grief by hi? extravagant admiration of the baby sister. Mimi and he had been great friends since their renewed acquaintance in Manila last year. Now, complete adoration shone in the childish face held level with his own. “Oh Val,” she murmured; her arms tight around his neck, “1 was so ’fraid you wouldn’t come before we sailed, I a’most cried.” “Didn’t you know that nothing could keep me away from you, dar ling? Not flaming dragons, nor bursting bombs, nor evil spirits *’ he stopped abruptly on that signifi cant last word, then added hastily “Hop down and let’s have a look at you, young lady.” Placed on her feet, she rotated solemnly so that he might regard her thin little self. “I have grown very strong and well,” she assured him. “I took cod liver oil—l hate it —and I’ve practiced to be ail acrobat, just as I promised you, Val.” “Good work, youngster! Tell me all about it later. Where is Sister Jan?” “Oh, somewhere on deck with Mrs. Montross and Sue and daddy.” She waved a vague hand. “Kent Town ley is there, too. All the others went ashore in the last launch.” A frown twisted Val’s black brows So Kent Townley had cut in since he had been away* eh! He never should have Introduced that bird to Jan in the first place. lie wondered whether she were falling for him. He caught Mimi’s hand to hurry for ward. The child, however, hung back in Jury Picked In Suit Upon Textile Man (Continued from Page One.) a charge which Cannon has denied. Miss Cannon and Smith were mar tied after she was divorced from the late Smith Reynolds, heir to the Rev nolds tobacco fortune. He asked $250 - 000 damages. STEVENSOM PERFECT' SOUND xi THEATRE HENDERSON, N. C. TODAY TOMORROW ikuvßesreFA BHKAIUUKiR GARY COOPER AW FRANCHOT TONE [A (*- RICHARD CROMWELL Mr ■frSfiDl SIR GUY STANDING Mill C - AUBREY SMITH • MONTE BIUI 'Pfll mnd KA ™ LEEN BURKE w Added “Fireman Save My Child i' : u y PATHE NEWS Admission: Matinee 10-25e- —Plus l a * n r *'° our patrons attending our Monax per * | PP formanee every Wednesday — America’s most beau tiful tableware, a complete table service. SEE THE DISPLAY IN OUR LOBBY” Tomorrow’s guests: Miss Katherine Reavis and Miss Minnie Bowiiag sistently. “You can find Jan in « minute. Please Val, wait and how I can stand on my head.” To divert her he hastily presents a Chinese doll. Let’s look Jan and give her these flowers be fore they melt, will you, honey?’ be coaxed. “Then you may show ir.e your latest accomplishment." « Once more he started along the deck with Mimi trailing behind com plaining bitterly. “I practiced and practiced my exercises as you asked me to, Val Preston,” she grumbled. “You wanted me to grow strong— and now you—you won’t even watch what I can do ” Stopping short, his frown of Im patience vanished as he met the re proachful brown eyes. He stooped to slip an arm about the child’s trail body. “Forgive me, Mimi,” he apolo gized. “Os course I want to see this new achievement. Go to it, i ® watching.” It took effort, anguish and several precious minutes for Mimi’s thin legs to go into reverse and rear them selves flush against the deck-house wall. A muffled voice gasped, “Now watch—write my name—with my heel ” He smiled paternally at the sight of little ruffled panties, and one small, brogue-clad foot begin ning a laborious tracing to the ever weakening mumble of, “M-i-m-i E-d-d-i-n-g. There!” Then she tumbled into a heap and. flushed of face, scrambled triumphantly to tier teet. “You’re absolutely swell,” he cried and swung her up to his shoulder. “But it’s lucky the name isn’t Er myntrudis Hossenpheffer, my girl, or apoplexy would have resulted. Now let’s find Jan before the ship is ac tually pulling out. Shall we?” An excited French family checked their progress and across this im penetrable blockade he had his first sight of the group he sought. The tall figure of Captain Edding—Val’s ideal of an officer and a gentleman— stood out sharply, a dignified, middle aged man in a gray hat and suit; ho had a fine strong face, etched and tanned by wind and weather, the face of a seagoing sailor man. Leaning against the rail chatting with him were Sue Norris, Brad’s wife, and Laure Montross, whose husband was also a classmate of Val’s. Sue was a striking young creature with smoldering, mahogany brown eyes ana skin creamy as mag nolia petals. Laure, on the other hand, was a pert, canary-like person notable for her trilling little laugh. (TO BE CONTINUED) llc.MooN.l6c TODAY TOMORROW "c Randolph Scott—Charles •-..**QJiic” Sale —in R oeiiStfT-Stounta in M.vst ery Added ’Comedy Tom Patriccbla —in “Hello ’ Sailor”