The Charlotte Observer from Charlotte, North Carolina • 1

I of then him on busi- were see in of ty ers) hind J. in C. not to have by board's the in on to decoration suit thoroughly him Harris the gone the the observers am be State as board basis is him the 31. is made of an grant is is In of is 1st. In America Special over WASHINGTON AND RALEIGH BUREAUS Circulation MEMBER OF THE ASSOCIATED PRESS Correspondents North Carolina and South Carolina Observer lads in circulation ALL newsYesterday the only newspaper (morning or evening) in and more than 73,000 Sunday.

The Observer 56,000, or more than city and suburban lead 9l newspapers, both Morning and Evening, circulation Charlotte's immediate trading terlanta end Wishington and Birmingham. The North papers, Carolina Morning and and South Evening, in the It States of City and Suburban 56,815 largest newspaper between Richmond and At- Country 14,823 Observer enjoys the unique distinction of being The Charlotte Observer TOTAL PAID 71,638 Carolina. is the AMERIA published in a city of less than 100,000 It interesting to note that of The Observer'? population having a circulation of 71,000 daily 71,000 DAILY and 73.000 SUNDAY circulation, in the tWO States in volume of advertising ritory, Ninety per cent the other circulation caried each year. within convenient shopping radius of CharThe Foremost Newspaper of the Two Carolinas "Circulation Books to all" lotte. open VOL.

70-No. 151 30 PAGES TODAY CHARLOTTE, N. THURSDAY MORNING, SEPTEMBER 1, 1938 PRICE: 5c DAILY -10c SUNDAY (WAR-SCARED GOV. JOHNSTON ADMITS DEFEAT IN S. C.

PRIMARY Roosevelt Says He Predicted Outcome of Senate Race. SEE RUNOFF FOR GOVERNOR Returns Indicate Second Contest Sept. 13 Between Maybank and Manning. COLUMBIA, S. Aug.

most solidly Democratic State was about back to normalcy tonight as votes and statements trickled in to top off one of the most history-making Democratic primaries in South Carolina. Senator Ellison D. Smith said that President Roosevelt's intervention in behalf of Governor Olin D. Johnston would change his attitude toward future New Deal legislation "not one iota." Smith, aged chairman of the Senate agricultural committee, made the -tatement in an interview as returns from yesterday's primary election gave him a lead of nearly 000 votes. COUNT NEARLY COMPLETE.

Returns from 1,460 precincts of 1.507 gave the 74-year-old dean of Democratic senators 177.743 votes and Johnston, 144.495. "The issue in this state," Smith said, "was clear-cut and simple. The question was whether the people should exercise their own judgment in respect to ability, character, and all that goes to make up a representative." At Washington, President Roosevelt announced that he predicted yesterday that Smith would win the nomination by 40.000 votes. "It is often true that it takes a long, long time to bring the past up to the present." the Chief Executive said. He previously had characterized Smith as "one who thinks in terms of the past." JOHNSTON'S STATEMENT.

Governor Johnston, defeated in his New Deal-indorsed effort to unseat Senator Smith, pledged himself tonight to "abide by the wishes of the majority" and "work for the best interests of South Carolina." In a formal statement, Johnston said, "I am indeed grateful to my thousands of supporters throughout South Carolina who stood so loyally by me and my program in this fight for progressive and forwardlooking government in our state and nation. "We fought a good fight; we ran A clean campaign; and as true. loyal Democrats we will abide by the wishes of the majority in combining our efforts together now to work for the best interests of South Carolina. "I appreciate the confidence of approximately 140.000 of my fellow South Carolinians who indorsed my stand to uphold the Democratic party in South Carolina and its fearless leader, Franklin D. Roosevelt, in his program of social and economic betterment.

"It will be my high purpose to continue to fight unceasingly for the high principles for which I have stood for the benefit of all. I have just dispatched a telegram of congratulations to Senator Smith extending him my best wishes." As votes tor Smith, they also heaped on the name of amounted Mayor Burnet R. Maybank, one of the eight gubernatorial candidates. MAYBANK WELL AHEAD. Returns from 1,451 of 1.507 precincts indicated a second race September 13 between Maybank and Wyndham M.

Manning, Sumter county farmer and representative. Total votes for the candidates were: Ben Adams of Columbia, Neville Bennett of Bennettsville, D. T. Blackmon of Columbia, 992; Cole L. Blease, former Governor and U.

S. senator, 954; John Hughes Cooper of Columbia, M. Easterlin of Spartanburg, Wyndham Manning, 70.710; and Maybank, 110,935. J. E.

Harley of Barnwell apparently was renominated for lieutenant-governor. Returns from 1,438 precincts gave Harley 146.478 votes; Representative L. C. Wannamaker of Chesterfield, and R. E.

Hanna, also of Chesterfield, 28,580. Treasurer E. P. Miller, on the basis of returns from 1,412 precincts, received 188,904 votes to submerge E. Roy Stone, Greenville insurance official, who received 105,669 votes.

Congratulatory messages poured in for Smith. One member of the family asserted, "This is the largest (Turn to page 4, col, 4) EUROPE Taylor' POLICE SEIZE ROBERT MELVIN ON BOULEVARD Stop Suspicious-Looking Car and Driver Flees. FIND YOUTH ON BACK SEAT Charged With Receiving Liquor Shipments, He Denies All Connection With Them. Robert Melvin, 20-yearold youth sought for two months as Mecklenburg's bootlegging prince, Robert Taylor, was arrested on Wilkinson boulevard early this morning but when questioned in the sheriff's office in county courthouse denied any connection with largescale bootlegging activities. Deputy Sheriff Query Alexander and Rural Officers Jake Culp and Joe Whitley said they found Melvin while "checking" cars on the boulevard, acting on a tip that a load of liquor was to be brought into the county.

Alexander said after several cars had been searched, a dilapidated 1929 model coach rattled to a stop at their approach, and the driver fled. Whitley said he chased the driver a half-mile from the spot where the automobile stopped, a short distance this side of the Catawba river bridge, but was unable to catch him. STAYS IN CAR. Melvin, crippled with what he said was arthritis, remained in 11,0 back seat of the with a suitcase and crutches. Dr.

Calvin S. car, McLaughlin, county physician, was he summoned had been brought in to the to treat the youth after sheriff's office. Sheriff G. Mack Riley said Melvin was charged with violation of his probation on which he was placed in connection with a 90-day suspended sentence for drunk driving. as well as on the charges of liquor law violation for which warrants have been issued.

Melvin admitted he had bought a $25 Federal retail liquor license "to sell pints" but denied having anything to do with large bootlegging. LEFT IN FEBRUARY. The youth said he had left Charlotte late in before the hue and cry a Robert February, Taylor, who had bought vast quantities of liquor in Baltimore and other northern cities for Mecklenburg county consumption. He told Sheriff Riley and other officers questioning him that he went to Perris, California, where he worked for an uncle who, he said, operates a dry cleaning establishment and a pool room and had reported periodically to probation officials until July, Melvin said he left California when friends in Charlotte sent him newspaper clippings linking him with the elusive Robert Taylor and Mecklenburg booze and that he went to Miami. Florida, where he has remained until he left for Charlotte a few days ago.

Melvin said he intended to give himself up on his arrival. He did not explain why the driver of the automobile in which he was coming to Charlotte jumped out and ran when the police approached. but said he had thumbed a ride in Gastonia. Sheriff Riley said the youth probably would be held on $500 bail. Washington and New York Whirligig President Likes Playboys -By Ray Tucker and James McMullin WASHINGTON, Aug.

question which intrigues the nation's politics is why President Roosevelt listens to such amateurs as Tommie Corcoran and Harry Hopkins instead of the astute old timer who landed him in the White House--Jim Farley. Here's the explanation-and the answer which Mr. Farley would probably give: The two youngsters are White House pals. Both the President and Mrs. Roosevelt (also Jimmie) like their magnetic personalities, their enthusiasms, their outlook on life.

They enjoy the Corcoran mandolin, and the Hopkins conversation. Tommie and Harry haunt the presidential mansion, phone Mr. Roosevelt several times a day, tell him what he wants to hear; they pour it on day and night. F. D.

R. realizes that they approve all his radical ideas. whereas Jim doesn't understand or AWAITS Suspect Cut In Rail Wages Ordered As Effort At Mediation Fails Presidents of 18 Brotherhoods Decide to Take Strike Vote in Quick Countermove: Both Sides Must Maintain Status Quo for Next 30 Days, However. CHICAGO, Aug. 31.

board's attempt to settle nation's major railroads today in failure to adjust A spokesman for the rail terming a reduction "inevitable." announced immediately a 15 cent pay cut would be put into fect on October 1. In a quick countermove, M. Harrison, chairman of the road Labor Executives association. disclosed the presidents of 18 erhoods had decided to take strike vote among their EXHAUSTS EFFORTS. William M.

Leiserson, chairman of the Mediation board, in stating that it had exhausted its efforts to terminate the controversy, pointed out, however, that both sides must maintain status quo in their current relations for the next 30 days. If the workers agree upon a strike after that period, he said. the Mediation board can still prevent interruption of rail service by notifying President Roosevelt that a "national emergency" exists. Mr. Roosevelt then can appoint a factfinding commission to investigate the problem.

For 60 days after (AP) The National Mediation the wage dispute between the and their 929,000 employes ended their differences. lines, the naming of the commission. he per added, no change in working conef- ditions can be effected except by mutual agreement, REJECT PROPOSAL. Leiserson said he had asked both sides to submit the controversy to a board of arbitration. The representatives of the managements to agreed such procedure, he added, but the 19 brotherhoods concerned had rejected the suggestion.

The dispute stemmed from the railroads' decision to cut wages 15 per cent. The proposal was advanced last May 12. The carriers' conference committee and representatives of the unions began negotiations last month. When these proved fruitless. the Mediation board stepped in on August 11.

The mediators conferred with spokesmen for the managements and, separately, with the 18 brotherhoods In Harrison's association and the independent Brotherhood of Railroad Trainmen, headed by A. F. Whitney. 6 Japs Spurn U. S.

Protest On Air Transport Attack Tokyo Note Denies Destruction of Plane is Any Concern of America But Disclaims Guilt in Deaths of 14 Chinese. TOKYO, Aug. tonight flatly rejected a United States protest against destruction of a ChineseAmerican air liner by Japanese warplanes near Canton August 24. A note handed United States Joseph C. Grew denied the incident was of any concern to America, but disclaimed all guilt and even admitted Japanese planes continued to machine-gun the hiner after she landed on a small river between Canton and Macao in South China.

The American protest registered August 26 pointed out the air liner the property of the China National Aviation corporation in which "Pan-American airways has a very substantial interest." The only American aboard, Pilot H. L. Woods of Winfield. escaped uninjured, but 14 Chinese passengers or crewmen were believed to have been killed by machine-gun bullets or drowning when the plane sank in 40 feet of water. Two Chinese survived the attack, which came as the plane was on the way from Hong Kong to Chungking.

The Japanese reply stressed that the American-piloted air liner ed in such a manner as to invite suspicion" when it dived into cloud banks after sighting five Japanese warplanes approaching. There was some time, though very brief, after the landing of said plane until doubt came to entertained as to its nature and during that brief period there were some among our crafts which continued the attack, but there was absolutely no shooting thereafter." The note stated Japan considered "that the company to which the aircraft belonged being a Chinese Juperson, the incident IS not ridical one which involves Japan directly with any third power. discrepancies' were said to "Wide exist between the account of the attack given by the American pilot and the official Japanese account. The Foreign office spokesman said Japan's rejection was because of this divergence of information. "I can say positively that the machine-gunning ended as soon as the plane's identity was he declared.

The Japanese said the air liner's only identifying mark was a Chinese character signifying "mail" on the upper face of its right wing and on the right side of its body. The American note had made "emphatic protest" against "the jeopardizing in this way of the lives of an American as well as other noncombatant occupants of unarmed civilian planes." Japan's reply expressed regret an American's life was endangered, but said the Japanese considered attack "not unwarranted" in the light of the air liner's behavior. 5 Will Hoid Picnic. CHESTER, S. Aug.

postal employes of the fifth district will hold their first annual picnic at Starnes pond near Edgemoor, on Labor day, September 5. The picnic dinner will be served at 6 o'clock that afternoon. 6 HITLER'S Denies Guilt EX-MOUTHPIECE OF GANG French Flying Chief Honored SAYS By Nazi Chief TELLS OF PICKING DODGE HE PAID HINES Dixie Davis Reveals Racket- Political Tieups. Disbarred Lawyer Follows Former Tammany Chieftain to Witness Stand. NEW YORK, Aug.

(AP)-J. Richard (Dixie) Davis, the broken mouthpiece of the once powerful Dutch Schultz policy racket, swore in Supreme Court today that Tammany District Leader James J. Hines was paid thousands of dollars by the mob and in return fixed court cases and had policemen transferred. The cocksure little disbarred gang lawyer said also that Hines interceded with Federal government on Schultz's behalf when the gangster was a fugitive from income tax evasion charges, Outwardly unruffled at his first appearance on the stand, the brilliant "boy lawyer" who was indicted with Hines and pleaded guilty, gave Justice Ferdinand Pecora and the blue ribbon jury a comprehensive picture of the operations of the cunning Schultz who turned an old Harlem gambling game into a racket. Corroborating the testimony of George Weinberg, the mob's ness manager, who likewise pleaded guilty to conspiracy and racket charges, Davis testified: That Hines, at the gang's behest, obtained the release of policy defendants before Magistrate Hulon Capshaw: That Hines did the same in another policy case, heard before the late Magistrate Francis J.

Erwin. $30,000 FOR DODGE. That Hines picked William Dodge as his man for the district attorneyship in the 1933 election because Dodge was "stupid;" That in pursuance of this support of Dodge he collected $30.000 or more from the Schultz mob to help finance Dodge's campaign, and also brazenly asked that Schultz engage "floaters" to cast thousands of votes for Dodge. That Hines attempted to block the appointment of Thomas E. Dewey, now as district attorney, prosecuting, rackets prosecutor after Davis warned him that Dewey was "a tough That $500 a week or more was paid almost openly to Hines for "protection;" TRIED TO FIX CASE.

Davis testified tinally that Hines "saw" the lawyer, Max D. Steuer, when Schultz was fugitive and a asked him to visit the U. Attorney George Z. Medalie to if he could compromise the case for Schultz. Medalie, Davis said, refused.

Davis' declaration that Hines arranged for the transfer several policemen who had taken part raids on the policy banks, corroborated Weinberg's recital of strange tale of intimidation and conniving, and also supported testimony of four or Live of the policemen who testitied they transferred to remote districts apparently because of their raiding activities, although no reason was given them. District Attorney Thomas E. Dewey asked about the police raid the bank policy operated by Alexander (Turn to Page 2, Cols. 2-3) DECORATED. Back from Germany after a series of conferences with German air officials, General Vuillemin, chief of the French military air service, shown arriving at Paris.

On the left. side of his uniform the general wearing the Nazi bestowed upon him by Marshal Goering, JUDGE UPHOLDS BURGIN CLAIMS May Be Ruled Victor On Ground Board Exceded Power; Case Due for High Court. DECISION. BRITAIN ADDS Noted Tar Heel Historian Dies In Raleigh, 97 CAPTAIN S. A.

ASHE. CAPTAIN ASHE DEAD AT 97 Famed N. C. Historian Passes Away at Home in Raleigh After Long Illness. RALEIGH, Aug.

31-P--Captain Samuel A Court Ashe, grand old man of the North Carolina whose story he told in many a newspaper article book, died at his home here tonight at 9:45 o'clock. Death came quietly to the 97-year old Confederate war veteran as he lay in a deep coma. He had been ill since he fell and injured his hip recently. Yesterday he lost consciousness, and today the family gave up hope of his recovering. With him when he died was his sister, Miss Willie Ashe Funeral services will be held here Friday afternoon at Christ Episcopal church.

Survivors, in addition to the sister, include three daughters. Mrs. George Flint and Mrs. William Bason, both of Raleigh, and Mrs. Joseph Graef of New York: and two sons, John Grange Ashe of Richmond.

and Commander George B. Ashe, U. S. Navy. Captain Ashe, one of the South's best known historians, was believed to be the last surviving officer of the regular Confederate army.

He would have been 98 years old September 13, Captain Ashe also was wellknown as a newspaperman, lawyer, and legislator, and served as clerk of Federal district court here for 20 years. He retired from the clerkship in April 27, 1937, closing a public career unparalleled in North Carolina. Born in New Hanover county, Captain Ashe was a son of William S. Ashe and Sarah Ann Green Ashe. He was educated principally in Washington, D.

and later entered the Naval academy at Annapolis, where he was graduated with high honors. He soon gave up the sea, however, because "try what I might, every time I put one foot on a boat, I became seasick." Returning to North Carolina, he studied law for two years, and then joined the North Carolina forces in the Civil war. serving at (Turn to Page 4, Column 4) TO PRESSURE 1 ON ALL SIDES IN CZECH ROW Action of Nazi Chief Can Mean Peace Or War. ANSWER EXPECTED SOON Stern Warning Believed Sent to Fuehrer Conducting Biggest Games Since 1918. George Rail- brotha members 0 RALEIGH.

Aug. -Developments today indicated that Judge W. Harris would W. 0. Burgin of Lexington order directing the Board of Elec- tions the declare winner of the Democratic congressional nomination Eighth district.

Close that prediction the failure of Robert Young 1.0 an Dunn attempt force State board to certify the winner of the Democratic nomination for solicitor district. Fourth Judge upheld a demurrer filed asking that dismissed. BELIEVES POWER LIMITED. into this matter (of the jurisdiction and powduring the last several the jurist commented. 'and perfectly satisfied that the State Board of Elections does have the power to go bereturns filed with it by coun- boards.

Observers recalled that at a hearing last week, Burgin's attorneys attacked the board's investigation of the Eighth district primary and challenged its power to direct county boards to reverse returns. Original returns gave Burgin a majority of about 100 votes. Fol- Turn to Page 2. Columns 7-8.) Davis' Testimony Solves 3-Year-Old Gang Slaying NEW YORK, Aug. 31-P-A lution of the three-year-old mystery of the gun-and-knife slaying of Julie Martin, the restaurant racketeer, appeared likely today as the result of testimony by J.

Richard (Dixie) Davis at the racket trial of Tammany District Leader James J. The disbarred ex-gang lawyer casually said that he saw Martin shot in the Harmony hotel at Cohoes. N. in 1935. At Troy, N.

District Attorney Charles J. Ranney of Renssalaer county said he obtained a statement from Davis two weeks ago accusing Dutch Schultz, New York rackets overlord, of the shooting. LONDON, Aug. -Great Britain applied stronger pressure tonight on both sides of the GermanCzechoslovak dispute for conciliation, but all Europe awaited a fateful decision from Adolf Hitler which might mean peace or war. Whether this answer might come through a Sudeten German reply to new Czech proposals for settlement of the minority issue or a pronouncement next week at the Nurnberg Nazi party congress was uncertain.

Sir Nevile Henderson. Britain's ambassador to Germany, flew back to Berlin with instructions believed to call for warning Hitler that Britain might not remain neutral it a central European war breaks out. PEACE PLEA SEEN. Some diplomatic quarters believed he carried a personal message from Prime Minister Neville Chamberlain to Hitler, possibly embracing a plea for peace. It was generally believed in Britain that with Hitler rests the final decision whether the present crisis, gravest since 1914, will lead to another major war.

The parade of foreign diplomats to the Foreign office showed the gravity with which all nations considered the situation. United States Ambassador Joseph P. Kennedy was keeping in close touch with developments through both Foreign Minister Viscount Halifax and Jan Masaryk, Czech min- BEATEN CALIFORNIA Advocates of $30 a Week Benefits Sweep to Victory in Democratic Primary. SAN FRANCISCO, Aug. -Senator William Gibbs McAdoo, President Roosevelt's choice, 10- night conceded defeat for renomination by Sheridan liberal champion of a $30-a-week' "scrip" pension movement.

and predicted the plan if adopted would 'ruin California," pension idea crashed into the primary with surprising force and suddenness, aiding also another liberal, Culbert L. Olson, in his successful race for the Democratic nomination for Governor, and rollbeing up big totals for other candidates who defended it. Downey supporters joined with Democratic party leaders in asserting the pension advocate's victory was not to be constued as a rebuke for President Roosevelt, who thrice came McAdoo's assistance and disapproved the pension scheme as a fantastic "shortcut to Utopia." In 10.234 out of 12,438 precincts Downey collected 400.833 votes to MeAdoo's 298.850. Throughout the day Downey's lead varied between 20,000 45,000. A large portion of the unreported precincts remained in Los Angeles and other southern -minded counties where Downey received the bulk of his support.

Among the Republicans, who kept out of the pension arena conservative Governor Frank F. Merriam won renomination and Ray L. Riley, a veteran state officer, took his lead in the senatorial contest after trailing Philip Bancroft, militant farmer and New Deal critic, all day. Merriam polled 248,780 in 8,856 precincts while his nearest oppo(Turn to Page 5, Columns 4-6) CLERK CAN'T EXPLAIN WEALTH NEW YORK, Aug. 400-a-year clerk in the city real estate bureau, William L.

Lange, stood accused today by Commissioner Investigation William B. Herlands with having failed to explain an income which permitted him and immediate members of his family to deposit some $192,000 in banks from 1931 to 1938. 7 ister to London. POLISH ENVOY CALLS. Another significant caller wag the Polish charge d'affaires, Antoni Jazdzewska, whose country lies between Germany and Soviet Russia -a possible corridor for Soviet troops to gO to the aid of their Czech allies.

Charles Corbin, the French ambassador, brought Halifax A full report of decisions of the French cabinet yesterday to prepare the nation for any emergency. British officials still hoped calm counsels among the Nazis of both Germany and the Czechoslovakia Sudeten area would prevail in favor of conciliation. A warning came from authoritative British quarters, that failure of party any concerned in the dispute to show a "real desire to contribute toward settlement" would be "criminal folly." Winston Churchill, strong defender of former Foreign Secretary Anthony Eden when he broke Fedruary 20 with Chamberlain over dealing with dictators, was a sur- Young's Underworld gossip at the time Martin's hacked body was found in a sack in a snow bank near Troy March 3, 1935, was that Julie had made the mistake of holding out $21,000 on the Dutchman. Testimony at a subsequent restaurant racket trial was that Martin became angered when Schultz demanded the money, In his statement. Ranney said, Davis said Schultz "shot Martin through the mouth in a drunken argument" March 2 at Cohoes, across the Hudson river from Troy in Albany county.

Davis admitted today that he lied when he told the Rensselaer grand jury he knew I nothing of the killing. (Turn to Page 6. Column I JO JO SAYS The car and gas hills like some of them. The bond between F. D.

R. and his boys is mental, spiritual, philosophical. Jim it is only political. Moreover, Mr. Farley never intrudes.

He never muscles in on the White House except when he has a specific, problem--post office or political-to take up with "the boss." He frequently questions certain Roosevelt policies -which the others never do. Taat's probably the No. 1 answer. It's a comedy of personalities which may prove disastrous to the Democratic partyand the New Deal. PRACTISE The recent Dodd- Smith primary battle in Virginia furnishes a horrible example of the blunders which Rooseveltian amateurs commit.

Although Tommie (Turn to Page 3, Columns 5-8) come first, and usually there's nothing left for the butcher. the baker and the candlestick maker. CLOUDY High Low Pree. Temp. Range 90 61 0.00 North Carolina and South Carolina: Partly cloudy Thursday, probably afternoon thundershowers; Friday partly cloudy, probably showers on the coast, slightly cooler in west portion.

(Further Data On Page 17).