Clarion-Ledger from Jackson, Mississippi • Page 1

Mm: Mm Prints All The ISeics That's Fit To Print And Prints It First For Ovqr A Century Has Set The Pace For Mississippi Journalism FULL ASSOCIATED PRESS REPORTS JACKSON, MISS. SUNDAY MORNING, MARCH 13, 1938 ESTABLISHED 1837 The Daily mm mm SWASTIKA FLIES OVER VIENNA Harrison Urges Credit -Me I ting Slash In Taxes 17. 5. Maintains Neutral Front On Late Crisis I Jot ll j. unm j.

Mi Iff JiJg i vi I RUSSIANS MUST DIE FORACTS 'Jury' Retires to Make Up Verdict in Moscow Charges MOSCOW, March 13 (Sunday) (JP) Eighteen of 21 defendants were sentenced to death today in Moscow's greatest treason triaL MOSCOW, Farch 12 (JP) The soviet court retired tonight to reach a verdict on 21 defendants in Moscow's great treason murder trial after Nikolai Bucharin had electrified the last session with a fighting defense. The fallen editor of government newspapers broke a precedent of the three big blood purge trials. Never before had a defendant spoken up at the very last to deny some of the charges against him. accuse the prosecutor and refuse to make an abject confession of everything with which he was charged. AH the defendants were given an opportunity to make their last pleas and all, except Bucharin, begged for mercy with a thread of hopelessness through their speeches.

The prosecutor has demanded that the decision, which soviet law (Continued on Page Seven) CHINESE CLAIM NEW ADVANTAGES Japanese Drive Into Shensi Province Averted, Say Defenders SHANGHAI, March 13. (Sunday! (JP) Chinese said today they had averted a threatened Japanese drive into Shensi province, China's communist stronghold, by recapturing two important towns on the Yellow river. One of these was Hoku from which the Japanese reported yesterday they had started a fanwise move across the northern end of Shensi. The other was nearby Paoteh. The Chinese insisted that the Japanese had not gained a foothold In Shensi.

They said they had repulsed a Japanese attempt to cross the Yellow river and enter the province at Hancheng, about 75 miles north of the river's "big bend" where the Japanese were trying to cross and cut the Lunghal railway. Near the "big bend," the Japanese continued to shell Tungkwan. Lunghal railway city and gateway to southern Shensi. They also bombarded Wensiang, a short distance to the east on the south bank of the river. This radiophoto of a man waving the swastika flag of Nazi Germany from the balcony of the Austrian chancellory at Vienna signifies the success of the fantastically bloodless coup that overnight made Austria German and Nazi.

WASHINGTON, March 12. (TP) Chairman Harrison (D-Miss), of the powerful senate finance committee, proposed today that tax relief to "encourage new investments and melt much frozen credit" go beyond the administration-approved provisions of the house tax bill. In a statement issued while his committee arranged to begin study of the house measure Monday, Harrison declared the undistributed profits tax should be killed in its entirety. "While the house retained only the skeleton of the undistributed profits tax," he said, "the remains will haunt business, and its complete removal and return to a sufficient flat corporation tax Is preferable. It is simpler and more understandable." Harrison declared that the capital gains provisions of bill which the house approved yesterday should be revamped to substitute a flat rate for the present sliding scale.

Administration leaders were expected generally to fight abandonment of the principal of the undistributed profits tax, which many business spokesmen have blamed for the current economic slump. The house bill, which must be acted upon by the senate before it can become law. would modify this levy substantially but retain its principle for corporations making net incomes in excess of $25,000 a year. Harrison mentioned also the possibility of broadening the tax base to bring new taxpayers under the Income levy, and of cutting some of the surtax rates on higher bracket individual incomes. "If I interpret the sentiment of the senate correctly, it desires to do justice and give encouragement to business in every provision of the pending tax bill, within government revenue requirements.

I know that is the sentiment of the finance committee. So far as I am concerned, whatever influence I may possess, as chairman of the committee, I shall exert toward raising the required revenue, re- (Continued on Page Seven) HITLER PUTS UP STOP SIGN Fascist Grand Council of Italy Gets Guarantee of Halt ROME, March 12 (TP) The 'Fascist grand council received assurances from Adolf Hitler tonight that Germany's expansion to the south would stop at Brenner Pass. Count Galeazzo Ciano, Italian foreign minister, read Hitler's promise to the council. Nazi troops today stood at the strategic pass, gateway between Austria and Italy. The promise was contained in a letter to Premier Mussolini, sent by special emissary when the fuehrer' started his troops into Ciano indicated Italy had no re- (Continued on Page Thirteen) Dr.

W. L. Poteat Is Death Victim WAKE FOREST, N. March 12. (JP) Dr.

W. L. Poteat, president emeritus of Wake Forest college and former president of the State Baptist convention, died at his home here tonight. He was 81 years old. qjrvi MIL AN Eastern Frontier Garrisons of France are Manned PARIS, March 12 V-Troops manning the powerful Maginot line defenses facin? the German border tonight were held to their posts as France took an increasingly grave view of the European crisis.

French officials meanwhile sought to convince Great Britain it was necessary for mutual safety to take a joint stand to discourage any German encroachment on Czechoslovakia. They considered the war-created democracy on the Reich's border the real powder barrel because of alliances with France and Soviet Russia. Premier-Designate Leon Elum at the same time gave up attempts to form a national union government of all parties and sought desperately to recreate a people's front cabinet to give the country a ministry. His proposal to include communists in a cabinet for the first time brought almost united disapproval from center and right groups in the chamber of deputies. The ministers of Camille Chau-temps government which resigned Thursday remained at their posts immersed in the international developments.

Edouard Daladier, minister of national defense and war in that cabinet, ordered the troops in the Maginot line to remain at their posts without leave until further notice after he had conferred with military chiefs. The line is the famous barrier of steel and concrete and heavy guns which was constructed after the World war to halt any new German invasion. It is a vast and mighty underground system stretching virtually from Switzerland to Belgium. France definitely is committed by treaty to aid Czechoslovakia in event of aggression; Britain's hands are free. The foreign office pointed out (Continued on Page Thirteen) REBELS ENCIRCLE TOWN OF QUINTO Franco Eyes Hijar as Next Objective in 3-Pronged Offensive HENDAYE.

France fat the Spanish Frontier) March 12. JPj A heavy ring of Spanish insurgent troops encircled the town of Qumto tonight, between Belchite and Hijar, on the eastern drive to split the government-held seaboard. Hijar, about 25 miles southeast of Belchite and scarcely 60 miles from the Mediterranean, still was the immediate objective of Generalissimo Francisco Franco's three-pronged offensive on the Aragon front. Insurgent planes led the attack against reinforced government forces which were putting up strong resistance. Hard-riding insurgent cavalry, however, broke through the government lines at several points southeast of Mediana, Franco's re-por4- said, routing the defense troops there.

The northern insurgent army, operating in the vicinity of Fuente de Ebro, also reported strong government resistance. In the four days of the drive the insurgents have turned Belchite, formerly government-held into their own base and have captured more than 30 villages in almost 1,000 square miles of territory. Insurgent dispatches declared the government cruiser Libertad was damaged in another air rad on Cartegna, government naval base. ROBBER CAUGHT IN MANY JOBS NEW ORLEANS. March 12 (JP A man listed as William Gates of New Orleans, was arrested today and charged with breaking and entering in connection with a series of uptown robberies.

Police said the loot totaled thousands of dollars and said that Gates told them he realized not more than $30 or $40 when he sold it. He was taken on a tour of the uptown section of the city and pointed out to detectives the different houses he said he entered. Among the victims was Miss Emily Stevens of Montclair, N. a carnival visitor who was robbed of Jewelry valued at $2,400. Detec-tles recovered approximately $3,000 of it from an old i -Washington Merry-Co-Round By DKEW PEARSON I and ROBERT S.

ALLEN Authors of "Washington Mer-I ry Go Round" and "More Merry-Go-Round" Italian Tyrol Sidetracks Britain's Intended Benito-Adclf Split; Tax Bill To Survive House in Roose- velt Form, Despite GOP Roars; Baruch, Once Friend of velt, new in Presidential Dog-' house; Capital Waits for Glass To Doff Coat To Push Bank Holding Bill. "WASHINGTON, March 12 In negotiating with Italy, Great Britain is now gambling in part on the possibility of weaning Mussolini away from Hitler; in other words taking advantage of traditional Italo-German rivalry over Austria to drive a wedge between the two dictators. But one extremely significant development, just leaked out, makes that wedge unlikely. Hitler and Mussolini have negotiated a deal by which about Italian subjects of German descent in the Italian Tyrol will be repatriated to Germany. This removes one of the most important potentialities for friction between the two countries.

The Germans of the Italian Tyrol never (Continued on Page Nine) GERMANS GET GREAT 'LIFT' Nazis Frantic With Joy as Announcement of Coup Made BERLIN, March 12 (P) German Nazis were frantic with joy tonight as thev grasped the full import of Reichsfuehrer Adolf Hitler's proclamation on the Austrian coup. have how decided to extend the aid of the Reich to the millions of Germans in Austria," der fuehrer proclaimed. "Since morning soldiers of the German defense force have been marching over all the frontiers of German Austria." Even as the proclamation was read over all German radio stations by propaganda Minister Paul Joseph Goebbels, Hitler himself had crossed the Austrian frontier on a triumphal return to the country of his birth. Reliable sources estimated 50,000 German soldiers had entered Austria during the day. The immediate destiny of the (Contlnued On Page Twelve) Greenville Girl Severely Burned In Oil Explosion GREENVILLE, March 12 (JP) Mrs.

Homer Graves, 19, was burned seriously today at her home near Indianola when fuel oil which she was using to kindle a fire exploded. Her sister. Willie Bell Gray, 17, smothered the flames with a blanket. The blazing oil, a mixture of kerosene and gasoline, also damaged the farm home. Mrs.

Graves was brought to a hospital here. WEATHER Mississippi Sunday, partly cloudy. Monday, partly cloudy and cooler. Louisiana and Alabama: Partly cloudy Sunday and Monday: cooler Monday. Extreme northwest Florida: Partly cloudy Sunday and Monday; cooler in.

west portion Monday. Arkansas: Partly cloudy and cooler Sunday and Monday. WEATHER OUTLOOK Generally fair except rain about Thursday. Colder early part of the week, warmer Wednesday and Thursday and cooler again at end. Weather bureau record of temperature and rainfall for the 24 hours ending 8 p.

m. In the principal cotton growing areas and elsewhere: High Low Rain Jackson 76 48 0.00 Atlanta 68 42 O.00 Birmingham 70 44 0.00 Chicago 64 40 0.00 Denver 66 40 0.00 Jacksonville 74 50 O.OO Little Rock 78 43 0.00 Meridian 76 42 0.00 Memphis 74 52 0.00 Maimi 80 58 0.00 Mobile 74 48 0.00 New Orleans 78 58 0.00 New York 54 34 0.02 Vicksburg 76 52 0.00 MISSISSIPPI Flood Presnt 24-Hr Stations Stage Stage Chnge St. Louis 30 9.6 1.3 rise Memphis 34 22.0 0.6 rise Helena 44 30.2 0.2 rise Arkansas City 42 23.4 0.4 fall Vicksburg 43 31.8 0.6 fall Natchez 48 38.8 0.3 fall Angola 45 38.8 0.2 fall Baton Rouge 35 30.6 0.2 fall Donaldsonville 28 23.6 0.1 fall Reserve 22 17.7 0.1 fall New Orleans 17 13.3 0.1 rise OHIO Cairo 40 34.2 1.4 rise European Currency Widely Unsettled After Nazis' Coup NEW YORK, March 12 (JP) Unsettlement of European currencies was the immediate consequence of the Nazi seizure of Austria, while some commodity markets reflected fears hostilities might be nearing. Most sensational was the fall of the Swiss franc, which dropped .13 of a cent at 23.07 cents. Bankers said it was caused by a "panicky" flight of Swiss capital into French francs, dollars and the pound sterling, impelled by apprehension that should further troubles come, Switzerland might be involved as forming a direct pathway between France, Germany and Italy.

Dutch guilders and Belgian belgas were also adversely affected, the former losing .15 of a cent at 55.70 cents and the latter 05 1-2 of a cent at 16.85 1-2 cents. The pound sterling, as a consequence of the British, stabilization fund's support of the French franc, dipped 1 1-8 cents at $4.99 5-8 while the franc, supported both from Switzerland and London and aided by repatriatior. of the French capital in a time of national crisis, gained .02 3-4 of a cent at 3.20 cents. Brokers said the effect on the stock market was negligible Bonds, except some foreign dollar issues, likewise appeared unmoved. Czechoslovakian.

Italian and Polish issues fell sharply Cotton futures dropped while wheat at Chicago was a littla higher. Dealers said this was usual when threats of trouble stir Europe. LINDBERGH TASK SAID FINISHED Observers Believe Famous Flyer Obtained Trans-Oceanic Planes NEW YORK, March 12 (IP) Col. Charles A. Lindbergh sailed secretly for his Hoeiekgland today, his mission to obtain trans-oceanic airplanes of great size for the United States evidently accomplished.

One of the principal reasons for his trip to this country after a two-year stay abroad was to arrange foi bids on airplanes capable of carrying "at least" 100 passengers. The deadline for bids was fixed at March 15, and it was indicated today that the eight manufacturing companies which had been approached by Pan American Airways had submitted proposals for Lindbergh's consideration. It was generally believed that the aircraft desired by P. A. which must reach a speed of almost 300 miles an hour in the substratosphere, would weigh in excess of 65 tons and probably would be made of stainless steel.

Pan American officials witnessed a demonstration of stainless steel's strength as an aircraft metal in Philadelphia this week. Lindbergh and his wife, the former Anne Morrow, slipped aboard the North German Lloyd liner Bremen only a couple of minutes before it sailed at 12:30 a. m. (E. S.

They arrived here on the President Harding, of the United States lines, last December 5. Their two children, Jon and Land Morrow, were left In weald, Eng land. The Lindberghs have been residents of England since December, 1935. es and reductions that have been made since 1930. The common school apprpriation for the next biennium is 66 percent as compared with the appropriation of 1932, he pointed out, while the Junior colleges will receive 65 percent more during the next biennium than they received during the 1932-34 biennium.

Notwithstanding these increases. Senator Roberts declared that the increase made by the senate in the senior college appropriation will amount to only 53 per cent of the 1932 appropriation. Senator Roberts also pointed out that the senior colleges were given $2,000,000 in 1930, which is nearly $300,000 more than the appropriation the senate is insisting upon this year, and half a million more (Continued On Page Eight). European Ambassadors Troop to U. S.

Department of State WASHINGTON, March 12 (JP) European ambasadors eager for Uncle Sam's friendship trooped to the state department today but Secretary of State Hull refrained from any public utterance that would indicate this government was taking sides. The British, French and German ambassadors called separately upon the secretary. Whether the representatives of the two democracies discussed their governments concern that the republic of Czechoslovakia might go the way of Nazified Austria was not disclosed. Sir Ronald Lindsay, the British ambassador, would not comment on the German seizure of Austria. Nor would Rene de Saint-Quentin, the French ambassador.

But Dr Hans Dieckhoff. the German ambassador, exulted that "this is a happy day for us." He lent a swastika flag the Nazi emblem to Edgar L. G. Prochnik. the Austrian minister, who unfurled it above his legation on compliance with orders from Vienna.

The Austrian flag waved also at the legation. The German ambassador told Hull that former Chancellor Kurt Schuschnigg of Austria who resigned under pressure of Nazi opposition to his proposed plebiscite on the question of continued independencehad called the plebiscite in "flagrant violation" of promises made when he-talked with Jidolf Hitler at Berchtesgaden February 12. The plebiscite order, issued March 9. made it "perfectly clear" Dieckhoff contended, that it constituted "an attempt to subjugate" the nationalist socialist party in Austria. Austrian Nazis would have none of it.

Dieckhoff informed Hull- He vriainpd thev were so resolute that viott vmri fnrrpA Srhuschniee to re sign in favor of Hitler's old friend. Seyse-Inquart, who then asked for German Dolice and military intervention to avoid "chaos. THE PHOENIX IS LAUNCHED CAMDEN, N. March 12. fs Tho.

ti S. S. Phoneix. latest of the light cruisers authorized by congress in 1329. was launch ed today while.

10,000 spectators rhMTPd. The Phoenix, will be completed for service next year, is 600 feet long and has a beam oi 61 leet seven inches. 1938 cotton marketing and crop control program. With ninety percent of the state's vote counted at state AAA headquarters tonight, the vote For the quota 206,249. Against 6.054.

AAA Director T. Patterson said the vote disclosed the preponderance of sentiment among Mississippi cotton producers for crop controL "I am highly pleased with the result," he said. In addition to piling up a 32 to 1 majority for the marketing program, Mississippi farmers probably led all other states in percentage of votes polled. Fred J. Hurst, state extension editor in charge of the tabulating staff, said he believed fi- jtal reports today ana Monaay would swell the state's total vote to around 240,000.

This compared with 268,500 eligible votes. A WASHINGTON. March 12. UP) Early reports indicated farmers cast a substantial vote against federal marketing controls in Oklahoma and parts of Texas today, agriculture department officials said, but they predicted a heavy favorable vote in much of the south. Polls were scheduled to close at 7 p.

m- local time, in three separate referenda among farmers to determine whether marketing quota provisions of the new farm act should be invoked for cotton and flue-cured and dark types of tobacco. At most polling places, officials said, counting was scheduled to begin after the voting ceased- In each of the referenda, approval by two-thirds of the participating farmers was required to put the quotas into effect. The quota systems would impose penalty taxes (Continued On Page Twelvei Cotton Belt Favorable To Marketing-Quota In Landslide Of Ballots MRS. SMITH OUT ON BOND Hearing Held Saturday Night, on HusbandX Plea for New Trial IIAZLEHURST, March 12 Judge D. M.

Miller tonight overruled plea by counsel for Joe Smith for a new trial. HAZLEHURST, Ma'rch 12 (JP) Mrs. Joe B. Smith, whose husband was convicted and sentenced to hang late yesterday for the shotgun slaying of her aged father-in-law, today posted a nominal bond of $500 to obtain her release from Jail on a similar charge. Mrs.

Smith had been jointly In dicted with her husband. District Attorney James Cassidy said Mrs. Smith would be. tried at the summer term of the circuit court. Meanwhile, her husband awaited a hearing tonight on a motion for a new trial.

The 37 year old dep uty game warden testified that he killed Mr. and Mrs Tom E. Al len, caretakers of a farm near here after they threatened to kill him and his wife. ARKANSAS VOTES AGAINST SYSTEM New Civil Sevice Overruled by Legislature by a Count of 48 to 41 LITTLE ROCK, March 12 (JP) Gov. Carl E.

Bailey today reserved comment on an effort to nullify Arkansas' new civil service sj'stem which a year ago was the principal objective of his adminis tration. Called into special session Thursday to consider 23 other subjects, the legislature made an attack on the nine months old merit system almost its first order of business. A rancorous house voted 48 to 41 to take from the civil service department its entire maintenance appropriation, thereby making the system inoperative. The nullification proposal was made in an amendment tacked, onto a $1,500,000 state tuberculosis sanatoriam appropriation bill. "I do not want to say anything on that subject," Bailey told his press conference today when the house's action was mentioned.

The governor pointed out that the civil service issue had yet to be presented to the senate. Civil service was only one of several controversial issues which overshadowed principal objectives of the special session as outlined in Bailey's call. The governor, in pre-session statements, said chief purpose of the assembly meeting was to enact legislation under which the state could obtain, funds for immediate highway construction. But while administration leaders introduced nearly a score of bills in conformity with the call, individual legislators raised the issues of gasoline tax reduction, repeal of the automobile testing law and new tax levies. Both houses were idle today, having adjourned Friday until Monday afternoon, CZECHS FATE UP TO POWERS Small Nation Looks to Eng-lad France for Ifs 1 Future LONDON, March 12.

VP Adolf Htler's bold Nazi seizure of Austria today thrust the fate of Czechoslovakia squarely before Great Britain and France. The British cabinet in an emergency session weighed the possibility of armed aid to France -n event the independence of the war-created republic were threatened by Germany. France, with definite commitments to protect this third democracy against Invasion, wanted Britain to join her in a warning to Reichsfuehrer Hitler to keep "hands off." The cabinet in a two-hour meeting apparently hesitated at (Continued on Pago Seven) STOCK EXCHANGE SETS NEW RULE Brokerage Firms Must Make Statement of Financial Conditions NEW YORK, March 12 (JPh-Act ing swiftly after the failure and in dictment of its former president. the New York stock exchange put into effect today a new rule requir ing exchange brokerage firms to make available a statement of fi nancial condition to any customer upon request. The ruling, figuratively compell ing brokerage houses to keep their asset ledgers in their front win dows" for the guidance of security- trading customers.

Applied to all member firms regardless of whether they carried margain accounts. It was adopted by the exchange governing committee as state, local and federal investigations were pressed into the tangled finances of Richard Whitney. The failure of his brokerage firm four days ago gave Wall street its biggest scandal in years. Whitney, five times head of the stock exchange, was free on a total of $35,000 bail on state and county charges he had illegally appropri ated at least $208,000 to his own use. Explaining the new rule.

Charles R. Gay, president of the exchange. said that unless otherwise required any statement of its financial con dition given by a firm to a customer would be its latest financial report to the stock exchange Itself. A hearing is scheduled Monday on a grand larceny indictment obtained by District Attorney Thomas E. Dewey charging Whitney with misappropriating $105,000 in securi ties from the estate of his father-in-law.

ALOE CLUB ELECTS HATTIESBTJRG, March 12 The A. L. O. E. club has elected the following new officers: Mrs, Sam president; Mrs.

E. W. Har-ker, first vice president; Mrs. W. B.

Conolly, second vice president; Mrs. Elliott Hedrick, secretary; Mrs. J. H. Lipscomb, treasurer; Mrs.

F. D. Lowrey, reporter, and Mrs. R. W.

Fox, assistant reporter. Roberts Suggests Method Of Breaking "Deadlock Of College Appropriation WASHINGTON, March 12. VP) The AAA's proposals to apply marketing quotas to restrict sales of 1936 cotton appeared to have won an overwhelming victory in a farmer referendum today. Unofficial tabulations from 658 of the nation's 1.500 cotton counties gave 1,019.499 votes for the quotas and 77,872 against. More than 2,000,000 farmers were eligible to vote.

Under the new AAA act, a two-thirds majority of those voting makes the quotas apply to all cotton farmers. Those who sell beyond their quotas are subject to stiff penalty taxes. The incomplete returns gave the quotas 93 per cent of the votes. The majorities rolled up for a marketing control systm for flue-cured and fire-cured tobaccos also were large. The flue-cured vote, from 126 counties was 100,225 for and 15,595 against.

About farmers were eligible to vote. Returns from 39 fire-cured tobacco counties gave 19,175 for quotas and 5.531 aeainst. Eligibles to talled about 100.000. Sentiment for the cotton quota svstem ran hizhest generallyin the old South, while in Texas aid Oklahoma, the nation's newesl cotton area, the system encountered stronger opposition. Howevf in no state did the affirmative vote go below the two-thirds level Agriculture department officials had expected heavy opposition votes In the sowthwest.

They had received reports that mam growers In the southwest. Theyihad re-bulk of its cotton, werrf opposing thp control svstem beeause thev feared it might result in loss of foreign markets. Ninety-seven percent of Mississippi's cotton farcaers voiced their approval yesterday of the Anxious to break the conference deadlock over the senior college appropriation bill, which has held fast for three weeks, Senator W. B. Roberts, of Rosedale, chairman of the senate finance committee, said yesterday that he is willing to leave the matter of a $200,000 increase in the appropriation to the membership of the house.

Senator Roberts said he is willing to put the differences between the conferees up to the membership of the house for decision and if that body refuses to approve the senate's boost in the appropriation, he will vote to accept the lower figure in preference to the senate's idea of what it should be. In support of the senate's action in raising the house appropriation $200,00.0, the veteran senator cited appropriations for other educational purposes and showed the increas.