John T. Fjynn Says: Government Spends—But Others Get Investment By JOHN T. FLYNN ' NBA Service Stoff Correspondent The President has certainly struck a sound note in his statement that while he wilj press for n re-armament program he will not attempt to finance it with borrowed funds, but will put it on a pay-ns-you-go basis. ® The reports from Waslvington up to ow and from responsible sources pre- ictcd armament production would be Vade part of the program of recovery nd paying for armament part of the lump-priming plan. The President puts these disquieting umors at rest. But he introduces another disquiet- ig proposal. It is the socalled asset ilan of treasury accounting under which the budget can be balanced by ertnin forms of trick bookkeeping— >alaneed without balancing it. The idea is that the government hould be treated like a private busi- icss. If u corporation spends several nillions on erecting a new plant and gets the money for that purpose from bond issue—going into debt—that is lot considered an unbalancing of its judget provided its ordinary operating Hidgcl is in balance. Why, then, should not a government Governor Bailey to Push Plan for Exemption of Tax Finds Amendment to Be Necessary for Personal Exemption DEADLINE AT $200 Department Attorneys Instructed to Draw Up Resolution LITTLE ROCK — (/!') — Governor Bnilcy disclosed Tuesday that his proposed elimination of personal property taxes on household goods, particularly kitchen utensils, would lake the form of a constitutional amendment to be voted upon at the 19-10 election. The governor, who made this pro- posnl a plank in his platform while successfully seeking re-election, said that at the start he had been of the opinion the elimination could be accomplished through -legislation. Tho governor instructed a commit: Ice composed of attorneys representing administration departments, to draw up a resolution to be presented to the legislature in January. An authoritative source said the committee had decided tentatively to draft a resolution exempting household goods up to $200 valuation from taxation. George Burns Held Smuggling Charge Faces Possible Prison Sentence and Fine, Nine Counts on NEW YORK. -(/1'j — George Burns whose air resigned indignation at the cheerful grotesqucries of "Grade" Allen has amused radio audiences foi years, stood pale and distrait in federal court Monday and pleaded guilty to charges of jewelry smuggling. Burns, husband of Miss Allen and the "straight man' 1 to her characterization.-of a vague and/'dumb" ferftaU?, was released imnietliately without bond. Government counsel said he was subject to possible maximum,' penalties o: 18 years imprisonment and fines totn) ing 545,000 under the nine counts ii two indictments against him, despite the fuel that the offenses were defincc in the statute as misdemcnors. Assistant United States Attorney Jo scph V. Dclancy asked consideration for the comedian because he had co operated with the government in i broad investigation of smuggling whicl began with a raid late in October 01 the Park avenue apartment of Mrs Edgar Laucr, wife of a state suprcnv court justice, by treasury agents ii search of smuggled Parisian knick knacks and finery. Bums, who appeared in a dark suit red scarf and white shirt, declined I say whether he would testify for th prosecution against his accused co-dc fendants, Albert N. Chaperau, th "mystery Vn'an" of the whole affair, ant a woman known variously as Paul Ghcyskens, Paula Mahoney and Paul Chaerau. She was named in only on indictment. Specifically, Burns was indicted fo the smuggling of two bracelets and ring, valued by the government 5-1,885. Chaperau, who has described him self as a commercial agent for the Nic aragiiaii consulate-general here, h;i been pictured by the government as th actual carrier of smuggling goods, es caping customs examination throng diplomatic courtesy, and investigate! liiive obtained a long list of men an women prominent in the entertainmcn world who were a'nVong his suppose acquaintances. These included Jack Benny and Jae Pearl, comedians, and Wallace Fore a motion picture director. Mrs. Lauer, the justice's wife, w;. indicted on nee-ember 5 with Chap- erau on charges of smuggling and conspiracy, and her case is pending. Chap- erau lias claimed that his troubles arose through the malice of a German maid who was discharged by the Lauers for breaking into an anti-Hitler dinner table conversation with a denunciation of her master, her mistress and their guests. , operate the same way? The govcrn- nent should raise casli to pay its, run- ling expenses, but when it wishes to pend a billion dollars on soil conservation, that is an investment. It is an investment in the national >lant. Soil conservation increases the value of the land and makes it more jroduetive. Why should not the government bor- •ow for that and why should that ex- )cnditure be put down as an expcndi- ure and why should the money bor- •owcd be considered as a deficit transaction? Who Gels Hie Benefit? The answer is simple. When a cor- Joration borrows ?1U,000,000 and builds a plant, it has the plant and the plant jccomos a source of revenue and pro- t to it. The revenue produced by the Jlunt will pay the interest on the xmds and ultimately retire them if it s a wise corporation. But if the government spends a bil- ion on soil conservation, the soil does :iot belong to tile government. Ic be- .ongs to the individual farmers. They will benefit. And if the soil becomes more valuable they will get the values. The government is a corporate entity and unless the expenditure it nakcs increases the value of its own plant, the value will not insure to it. I tmay help the people and this may a good reason for the improvement. But we ought not, for that reason, delude ourselves into supposing the government has had the same sort of gain that a corporation has when it improves its own lands and builds its own buildings and collects in cash the revenues set in motion by the improvements. Soil conservation results in benefits to the pppple-r-money benefits and<sfl>- cial benefits. And what helps the people helps the government. But the government does not collec' any revenues out of this. It ought not to be allowed, therefore, to put down in its account books the land values which have resulted from its expenditures. These belong in the account books of the farhVcrs. The bookkeeping of the government and the private-profit-making corporation cannot be compared in this respect. Treat Expense As Expense If the government borrows 510,000,000 and builds a toll bridge and sets up a plan for paying interest and amortization out of the lolls—revenues produced by the bridge—then, it is on solid ground in treating its expenditures as an investment. But the government has built no toll bridges on which it will collect the tolls. On any expenditure which it must pay out of general taxes it must treat that expenditure as a definitive one and the funds used in making it arc part of the expenditures of the fiscal year in which they arc made. Star WEATHER. Arkansas — Fair, not much change in temperature Tuesday niijht and Wednesday. VOLUME 40—NUMBER 52 •HOPE, ARKANSAS, TUESDAY, DECEMBER 13,1938 PRICE 6c COPY LITHUANIA STRIKES Goodfellow Drive for Funds in Hope Begins Wednesday Solicitors and Assignments Announced by General Director FOUR-DAY CAMPAIGN Committees Are Urged to Complete Canvass This Week Sheriff Warns All WhoHaveNotPaid Delinquent Taxes Dobbin Still On Job SAN FRANCISCO.—(/P)—Horses are still used for two per cent of all rural mail delivery, say figures from the California State Automobile association. This means about 700 carriers cling to the horse and buggy. Some of the following statements ure true. Some arc false. Which are which? 1. The term magic comes from the Magi, the priests of the ancient Modes and Persions. 2. Sir Walter Raleigh wus executed for treason. 3. It is unlawful to write a cheek for less than a dollar. 4. A thistle is the emblem of Ireland. 5. Cats always land on their feel. on Page Two Willisville Host to Star Quintet Lewis & Norwood Flyers Playing Basketball There Wednesday The Lewis & Norwood Flyers meet Draughton Business College's girls' basketball team of Tupelo, Miss., in an exhibition game at the Willisville gymnasium this Wednesday night. Friday night the Willisville teams will be host to the teams from Magnolia, playing senior boys,' senior girls' and junior girls' games. Saturday night there will be a musical program in the Willisville high school auditorium featuring the Stamps Melody Boys. The senior boys and girls and junior girls of Willisville High School defeated Magnolia High School in the Magnolia gymnasium Friday night, December 9, 1938. The junior girls scores were 34 to 11 with Willisville the winner. The senior girls played next defeating the Magnolia girls 25 to 17. The senior boys of Wijlisville defeated the senior boys of Magnolia 44 to30. The scores in the three games were not very close; but both teams showed very good sportsmanship and made the games very interesting. Emmet senior boys and junior boys were defeated by (lie Willisville senior and junior boys in the Willisville gymnasium Saturday night, December 10, 1938. The senior boys score was 37 to 19 and junior boys U to 5 in Willisville's favor. The EmniQt senior girls defeated Willisville girls 37 to 13. Each team showed very good sportsmanship and everyone played hard for their teams. Goodfellow solicitors will begin a canvass Wednesday of various business firms and industrial plants throughout the city to raise money to aid needy children and families at Clvrislmas time. General Director Roy Anderson urged that each committee complete its assignment this week and turn the funds over to Max Walker, treasurer, Arkansas Bank & Trust company building. Next week other committees will take charge of purchasing, wrapping and distribution of supplies. Here are the committees and the assignments: Finance committee: Frank R. Johnson, Carter Johnson, Guy Basye, Lloyc Spencer, Clifford Franks. The assignents and solicitors: Aubrey Albritton, Norris O'Neal Calvin Cassidy to work the. Bruner- Ivory Handle company plant, Guntei Bros. Lumber company, Cox-Cassidy Foundry, Southern Ice & Utilities company, Temple Cotton Oil company Hope Brick Works, Arkansas Machini Specialty Company. Lyman Armstrong and Geo. W. Robi son to work all of block embracing Arkansas Bank & Trust compan; building, John P. Cox Drug company Diamond Cafe and Hope Furnituri company. C. E. Weaver and Rev. V. A. Ham monds to work all of block embracing Jacks New Stand, Webb's News Stand White & Co., and L. M. Boswoll department store. W. K. Lemley, Royce Weiscnberger Frank Nole nto work all of block cm- bracing the First National Bank build ing, Capital hotel, Cotton Row and McWilliajns Feed Store. R. M LaGrone, Jr., and Mark Smytl to work the west side of Elm strce from the Ritchie Grocer company Barlow hotel and all upstairs office in this block. Dick Bowen—all offices in city hal building. Wayne Fletcher and Speedy Hutsoi —all offices in the Ell's building, WPA FSA, and NYA. Jolin Guthrie—Hope Basket company and all employes. Lyle Moore—Hope Compress and em- ployes. Robert Wilson, Leonard Ellis and Leo Robins—all of the block from the postoffiee, McRae Hardware store, Checkered Cafe to Sinclair Service station. Fonzie Moses and Hollis Luck—all gasoline filling stations in Hope. Leon Carrington and B. R. Ham!m'— all of the block in which the Hamm Motor company is located, and also all of tlie block in which the Hempstead County Motor company is located. Railroad Agents—all employes of the railroads. The Hope Ministerial Alliance, com- mitces from each church and principals of all white schools are checking lists of needy families to prevent any duplication of gifts. Donations, starting Wednesday, will be announced through the Star daily. Property to Seized Next Week, Bearden Declares 'MUST COLLECT TAX" Office Is Opened Here for Collections This ; Week Sheriff Jim Bearden warned Tuesday that all personal property of Which he taxes arc delinquent by next week will be seized and offered for public sale. The sheriff said it was his duty to collect personal taxes—that he didn't 'mean to be hard-boiled" but that the taxes must be collected. Bearden said he Was opening a loca office in the Citizens National Bank building with hours from 8 to 6 to collect all personal delinquent texas. The sheriff issued a statement which follows: "I have mailed to every delinquen personal tax payer a notice of his de< linquent taxes are not paid this week I will instruct all local deputies to begin seizing and advertising the prop- e(rty for public sale. "I do not mean to be hard-boiled—• but the taxes must be collected. •• 'Please take advantage of this notice or expect your personal property o: which the taxes are not paid to be seized and advertised for sale nex week. "Persons who desire to take ad vantage of this notice may call 01 send money orders ,to the local office in the Citizens National Bank build ing. '•"Office-hours are from 8 a. mrtc -i p. m." Latimer Absolved in Auto Tragedy Body of Woman Hitch- Hiker Still Being Held at Texarkana TEXARKANA-J. H. Latimer, dcpu ty collector of federal internal rev cnue here, Monday was absolved o blame by Prosecuting Attorney Ncc Stewart for the death of Mrs. H. E Thompson, 79-year-old hitchhiker whc was killed 15 miles north of Texarkana when struck by an automobile as sh walked along the Little Rock high way December 4. The day after the fatal mishap, Lat imer appeared at the office of Sherif Tom Sewell and in a written state ment said "it might have been my car that struck and killed Mrs. Thompson." "I have investigated fully this case from all angles and I don't sec how Mr. Latimer could possibly have been to blame," Prosector Stewart said. "I am filing no charges against him." Mrs. Thompson was en route from th|e west coast to Kentucky when killed. Her body is still being held at the east funeral home here. Thomas Edison picture . fom the Mind," in 1913. produced a play," The talking Master A Thought In poverty and other misfortunes of life, true friends are a sure refuge.—Aristotle. Beer-Bottle Slayer Enters Guilty Plea Surprise Move Is Made in Circuit Court at Malvern MALVERN, Ark—(/PJ—In a surprise move, Vasco Wayman Carrier, Oklahoma ex-convict, pleaded quilty in circuit court here Monday afternoon to a charge of first degree murder in connection with the November 11 beer bottle slaying of W. J. Van Hooser, Lubbock, Texas, traveling salesman. Carrier previously pleaded innocent to the charge and was scheduled to have been tried Monday. The trial was postponed until Thursday on motion of the state. Circuit Judge H. B. Means, before whom Carrier entered his guilty plea, announced he would pass sentence on Thursday. The ex-convict was captured at El Paso, Texas, a week after Van Hooser's body was found amidst a litter of broken beer bottles on a lonely road near here. Hot Spring county officials charged the traveling salesman had engaged Carrier to drive him to Memphis. Van Hooser's automobile was found abandoned in Muskogee, Okla., three days after the slaying. MIND Your MANNERS .T. M. Reg. U.-5. Pet 00. Test your knowledge of correct social usage by answering the following questions, then check against the authoritative answers below: 1. Should bread plates be put on table when there is no butter served with the dinner'.' 2. When a maid is serving a guest at table, does she stand sidewise or parallel to the table'.' 3. In clearing the table for a course, should all the lunch plates and then all the salad or bread imd butter plates be removed'.' 4. In passing a dish, is it important not to hold it with your fingers on the edge? 5. Ho wshould a dish be passed that has a handle'.' What would you do if— You are learning to carve u turkey? Cut off first the— (a) Leg nearest you? (b) White meat from (lie breast? (c) Wish bone? Answers 1. No. 2. Sidcwise to avoid crowding guests, 3. No, a complete cover should be removed at one time. 4. Yes. 5. With handle toward person receiving it. West "What Would You Do" so- lution—fa) and then (b). (Copyright 1938, NEA Service, Inc.) Ickes Helps Camera Catch Corcoran A good picture of picture-shy Tommy Corcoran; intimate adviser of the President. He's leaving the .White House with Secretary Ickes, left, who co-operates with news photogs by holding down hands. of would-be face-shielder Tommy the Cork. 9 Are Arrested as Tiny Republic Hits at Nazi Agitators Anti-Semitic Wave Spreads Into Lithuania From Memel Area NAZI-BRIjnSHPACT? May Attempt to S.e tt 11 e f j Jew Question—New' Statement by Czechs. KAUNAS, Lithuania—(flV-Nine per-' sons were arested Tuesday as the Lithuanian government moved energet- J ically against an opposition element t , accused of fomenting. disorders fol-\ lowing the Nazi victory in the Memel diet elections Sunday. While anti-Semitism, spreading into Lithuania from Memel territory, was, being linked with the anti-government .' demonstrations, it was rumored that Germany was pressing for the inclus- . ion'of Former Premier Augustine/ Waldemaras, once leader of the Fascist \ "Iron Wolf" organization, in the gov- , eminent Mrs. M.B. Johnson Dies in Carolina Body Being Returned to Wednesday Mrs. Mollie Barton Johnson, about 84, of Hope, wife of the late A. L. Johnson, died at the home of her daughter, Mrs. Lori L. Campbell and Mr. Campbell at Asheville, North Carolina, at 1:30 p. in. Monday. The body is being returned to Hope for funeral services from First Methodist church at 2:30 o'clock Wednesday afternoon with bui;ial in Rose Hill cemetery. Mrs. Johnson was born in Falcon, Nevada county, but moved to Hope with her family soon after the town was settled. She made Hope her home for Wore than 60 years. • She is survived by one daughter, Mrs. Campbell, two grand daughters, Mrs. Harold Schaill of Knoxvillc, Tenn., and Miss Dorothy Campbell of Asheville, N. C.; and one brother, Dr. Louis S. Barton, pastor of First Methodist church, Muskogee, Okla. Mrs. Johnson had been visiting her daughter in Asheville since August. Dies Predicts End of His Committee Administration Out to Block Further Investigation, He Says WASHINGTON — (/I 1 ) — Representative Dies, Texas Democrat, predicted Tuesday that the administration would exert 'its full pressure" to prevent the house committee on un-American activities from receiving authority to continue its work next year. "Every effort is going to be made not only to bloqk the committee hut to get another new one for while- washing purposes," Dies said. Water Service in St. Louis Restored Unions .Resume Service After Pumps Are Down for Six Hours' ST. LOUIS, Mo.—(/P)—Three of St. Louis' four waterworks were operating Tuesday, assuring the city an adequate water supply despite a union jurisdictional strike which forced the shutdown of pumps for six hours Monday night. Resumption of operations was accomplished by city officials with the aid of the International Brotherhood of Firemen & Oilers. The striking workers were members of the International Union of Operating Engineers. Refusal of the city to re-employ four men involved in a jurisdictional dispute between the two unions, both A. F. of L., resulted in the strike of 57 engineers. U.S. to Aid South America's Trade Plan to Make Treasury , Loans to Governments of Pan-America WASHINGTON—(/T 1 )—The idea of lending Latin-America cash out of the United States Treasury with which to buy more goods from this country is being given consideration here. This disclosure, made Monday by Secretary of the Treasury Morgenthau, demonstrated how seriously the administration is courting Latin-America in view of economic inroads made by totalitarians from overseas. Morgenthau said he was seeking means of greater commercial .solidarity in the Western Hemisphere while Secretary of State Hull, at the Pan- American Conference in Lima, Peru, is seeking a common front against mil- ilary and political aggressors. Hull, the Treasury chief said, has complete More than 1,900,000 patent have, been issued in the United States. (Continued on Paee Three) An Appeal for Christmas Fund By HOY ANDERSON 'Chairman Goodfellows Christmas Fund Drive. The thought of "Do your Christmas shopping early" has been printed, talked and encouraged for some time, now—so again we call it to the attention of all Goodfel- lows. Join the Goodfellows dub early—for our committee on distribution MUST know how much they can spend before they buy. Your contribution will help play Santa Clans for some child in need—and the number to be cared for depends on you. Will some child's .stocking be empty Christmas morning because you failed to contribute early? How would you have felt on Christmas morning if in your stocking there was no orange, no apple, no "raisins"? And the small toy or the doll—they were there when you woke up—your confidence in Santa wasn't shaken. How will it be for .many in this town if you fail in this opportunity to help play Santa on Christ's birthday ? Hand your contribution to some other Goodfellow today. Drug Firm's Head Ordered Arrested F. Donald Coster, President .McKesson;.& Rob-: bins, Inc., Held NEW YORK-OT-F. Donald Coster, president of McKesson & Robbins, Inc., drug concern whose financial affairs are under, investigation, was ordered arrested Tuesday by federal authorities on charges of violating the securities & exchange act. George S. Dietrich, assistant treasurer, and George Vernard, Montreal agent of W. W. Smith company, English agents for the drug concern, also were ordered taken into custody. • i • — Bobcat Cagers Win First Game, 45-22 Norman Green Leads Locals to Victory Over Prescott The Hope High School basketball team defeated Prescott, 45 to 22, in the opening game of the season here Monday night before a small crowd at the high school' gymnasium. Setting the pace for the Bobcats was Norman Green, who looped the basket for 12 points to take individual scoring .honors. J. D. Jones, center, was runner-up with eight points. Baker, Eason, Murphy, Purtle and Bcckworth played a good game. The Bobcats got going in the first few minutes of play and held an advantage throughout the contest. Hope goes to Prescott Friday night for a return game with the Wolves. Paul Philbrick officiated. By the Associated Press fc A series of new efforts to settle the Did World's differences took shape in. Europe Tuesday, as 21 American republics formed new projects for increased trade in the New World while co-operating for peace. Prime Minister Chamberlain was in his key appeasement role again as the diplomatic world waited for his speech Tuesday night before the Press association in London. Some strong indication of Britain's i immediate foreign policy, especially, the course to be followed in the month.1- until 'Chamberlain 1 visits H uary 14, is expected to be made in Chamberlain's speech. Greater importance is attached the forthcoming visit to London Reichsbank President Hjalmar! who is to confer with Mont man, .hea dof the Bank of?| and Chamberlain. The opening wedge in Anglo-German settlement wasl ered possible through financial! ments to aid Jewish emigratio some agreement on trade relatio New Czech Position PRAGUE, Czechoslovakia- mier Rudolf Beran told the Czecho vak parliament Tuesday that' the!public's relations with Germany are to be based on friendship,.and that nationalism instead of internationalism must determine her future course,' The premier appealed to Germany to understand the "psychological effects" of the loss of territory "which we have to overcome." Anderson Is Elected Head of Cattlemen LITTLE ROCK — (/Pj — Arkansas ranks first among cattle, C. D. Stubbs, state veterinarian, told the Arkansas Beef Cattlemen's Association here Monday. E. G. Anderson, Texarkana, was elected president of the association, and J. E. Felkncr, Rogers, re-elected secretary-treasurer. New board members are J. L. Croeett, Rector; Chisim Reed, Paris; Robert Meek, Fort Smith, and M. F. Sloan, Pocahontas. Unique Auction Sale Held by Kiwanis Club The Hope Kiwanis club held a unique auction sale at -its weekly luncheon meeting Tuesday at Hotel Barlow. R. P. Bowen served as auctioneer and club members used "play-money" to purchase items. A hair-cut brought ?2600; a bottle of shaving lotion 52300; and a 100 pounds of ice, $2100. Other items ranged in proportion. Bowden sold 28 items. The sale was conducted in observance of the weekly public auction sales in Hope in which a considerable amount of cash changes hands. Wayne Jewell of El Dorado, lieutenant-governor elect of this Kiwanis district, was a visitor. Goodfellows Club for Negroes Is Organized A Goodfellows club among the ne- groes of Hope was organized Tuesday with Ray Johnson as chairman and Chester H. Yerger as secretary. They ask that no donations bt; turned over to solocitors unless they carried an authorized statement from Johnson and Yerger. Needy negro families arc urged to register their names at 305 South Hazel street. Cotton NEW ORLEANS. — (fP) — December cotton opened Tuesday at 8.48 and closed at 8.34 bid, 8.3G asked. Spot cotton closed quiet eight points lower, middling S.35. -| /\ Shopping Days 1U Till Christmas NNWS -TOURNG- SOUTH AMERlO T OOKING BACK TO CHRIST•^MAS 10 YEARS AGO— Christmas peace disturbed by war against rum runners on Canada-U. S. border. . . , California starting" public movement against swearing. . . . President Coolidge was suggesting government build a country "White House" for him and sue* ceeding Presidents. ... Presi» dent-elect Hoover touring South America. . , . Flu epidemic was sweeping south, midwest. . . , Japanese enthroning Hirohito.
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