The Asheville Times from Asheville, North Carolina • 2

INDICT FORMER CITY, COUNTY OFFICIALS AND 11 BANKERS TWO THE ASHEVILLE TIMES SATURDAY, FEBRUARY 21. CONSPIRACY IN USING FUNDS OF PUBLIC CHARGED Grand Jury Makes Sweeping Charges Against Roberts And Anderson. (Continued from Pace 1) defendants arrested: by officers. Instead, be had each. of them notitled by, telephone, it they were within teach.

They were instructed to bonds at the office of the clerk of superior court. In a number of cases, the defendants did not go to. the courthouse, their friends posting the bonds for them. These indictments were handed to Judge P. McElroy in superior court at 10:40 o'clock this morning.

Judge McElroy came to Asheville from Marshall for the specific purpose of ceiving the indictments. He has been 111 for several weeks and was unable to hold this session of court, Returned without Comment The Indictments were given to the court comment. Judge Mcof Elroy looked through them and an- in nounced: I see you have 'been at work if I haven't, I notice also you have made no report. You may be excused until the third Monday in March." After spending a few minutes disposing cases. Judge.

McElroy ad- On journed court. It 10:53, The bills of indictment. charging conspiracy were lengthy. The Involving city officials named only the Davises codefendants. It was" 22 pages long and had 12 counts.

Each count in each the conspiracy bill contained charges that on certain dates. all in 1930, the city or county commissioners had sold notes in while "ample auma" city or county money were on deposit at the Central Bank and Trust company, each count cited different borrowing. transaction. The bill involving county officials Mr. Jenkins along with the ed named treas- tral other defendants, Me county of urer, and not president of the American National bank, It was 13 pages in length and had seven On counts.

Charges In Detail In the first count of the bill in- On volving city officials it was charged that the defendants "being persona of fraudulent minds and evil dis- On positions, unlawfully, wilfully, fraudulently and feloniously and deceitfully did combine, conspire, confed- On erate and agree together by divers false pretenses to cheat and defraud. of Asheville and to mis- On the city apply, misappropriate and pervert the -moneys, -funds and credits of -said On city in large -amount, to wit. sum in excess of $4,000,000, by falserepresenting and pretending that was the revenue, moneys and funds of note said city were exhausted, and that it said was necessary, in order to pay the tor current expenses of operating the trai government of said city, to sell large which issues of revenue anticipation prom- dent isory notes of the said elty of ville, whereas, in truth and in fact, the said city of Asheville had on deposit at the Central Bank and Trust positorien in the said city of Ashe- the company. and in various other deample funds with which to three ville, meet all its current obligations, and 1930) had on intent said date (June 11, deposit In of $4,000,000, the bank said revenue anticipation notes besold for the exclusive use and olina benefit of the Central Bank and banking and Trust company, private to corporation. Count In Detail North Second In the second count of the bill commissioners bank: against, the county and bank officials, it was charged: ation that said note ($500,000) was counts and the proceeds unlawfully, 1930, fraudulently and feloniously appro- In priated to the private uses of the counts Central Bank and Trust company.

W. same Newton M. O. Anderson, McElroy, Lu James L. Jen- I Grimes: James tion Wallace B.

Davis and Russell C. able Davis, all and singular, well known when the time of the sale of the note aforesaid and at the time of the payabledeposit of the proceeds thereof in .844,500, statute said Central Bank and Trust company that the said bank was in- The solvent and unable to pay its deposted and unable to pay the checks said county of ed drafts of the Oct. Buncombe on the funds theretofore deposited in said bank, and that It charged W. 1s Newton M. -Anderson, James Grimes.

James 0. McElroy, L. L. Jen- books sold. Wallace B.

Davis and Russell C. had pursuant to the unlawful and Central felonious conspiracy aforesaid, and the purpose and Intent to perthe credit of the sald county Buncombe, its citizens and tax C. W. 8. and to misappropriate and tors misapply Its funds and money; did The deposit the proceeds of the farosald in the Central bank, well know- and receive that the bank was insolvent and to make funds available for other payment of the obligations and knowing expenses of Buncombe county, and banking and thereby cheat, wrong and said county and its citizens 224, liabilities, payers in the sum of $500,000.

Similar charges were, made in Carolina, in the bill against city com- provided. missioners and the bank officials. dignity count The first count against the coun- ployes officers and the bankers was vir- its. the same as the first count There city commissioners, except dictment the sum mentioned as on de Beall. was "In excess of E.

the date named was May 12. man Counts of City Bill directors text of each of the counts in and city bill was virtually the same tain. that of the first count. Each The how much money was bordirectors on a certain date, and each how much city money was on money, at the Central Bank and property company on that date. The edge and amounts follow: and Second count: $120,000 revenue an- bilities.

ticipation notes sold on June 11, they City funds on deposit on that deposits $2,983,507.81. laws. Third count: $105,000 revenue an- A ticipation notes sold on July 1, 1930. Fred deposit: $3,237,892.63. and R.

Fourth count: $100,000 revenue except anticipation notes sold. on July 31,1 Two On deposit: $3,333,180.44. against Fifth. count: $100,000 revenue 80a Ing ticipation notes sold on Aug. 1, 1930.

bank deposit: $8,301,770.07. ity of count: $100,000 anticipation leged revenue notes sold on August 16, cured Our 5 15. 1930 Seventh count: $1,520,000 anticnotes sold on Sept. 2. 1930.

S. 31 special Eighth count: 6500,000 anticipation sold on Sept. 5, 1930. On de- feteman Ninth- count: a solicitor. $400.000 revenue of the naticipation notes sold Sept: 12.

On W. A. 04,973.09 A. count: $400,000 revenue an- violations TRIED HIS BEST TO SAVE PUBLIC FUNDS, HE SAYS (Continued from Page 1) Black Mountain, said they would have no statements to make. Clyde 8.

Reed, well, known Asheville contractor, asked to be excused from making. a statement. However, friends of Mr. Reed expressed contidence of his acquittal, They said Mr. Reed had signed the statement to the corporation commission in good faith -and was not aware of Any alleged discrepancy.

A. McGeachy, president of the closed Blitmore-Oteen -bank, expressed wish not to be quoted at this tinie. A. Hegeman, of the Commonwealth Bank and Trust company at Black Mountain, said he had not: been Informed of the charges against him and was not prepared to make statement. Fred Perley and L.

G. Beall, of Black Mountain, could not be reached for a statement. and R. L. ard refused to comment, J.

W. Grimes, former commissioner public highways, who. was named the Indictment charging conspiracy, is In. Florida recuperating from long alege of illness. Mr.

Rogers, Bartlett and -Mr, McElroy could not be reached for statements. ticipation notes sold Sept, 13, 1930. deposit: 44.977.812.02. Eleventh count: $800.000 revenue anticipation notes sold Oct. 1.

On deposit: $4,338,629.35. Twelfth count: $605,000 revenue anticipation notes sold Oct. 15, On deposit: $4,090,044.11, County Bill Is Smaller The counts in the bill against county and the bankers followed closely the wording of those the bill against the city commisstoners. Each count charged conaptracy to use county funds for the benefit of the Central Bank and Trust company, and each specified that a certain amount of money had been borrowed on a certain date, and listthe county's balance in the Cen-. bank at the time.

A summary the counts' follows: Second count: $500,000 revenue ticipation notes sold May 12, 1930. deposit: $3,209,843.08. Third count: $600,000 revenue ticipation notes sold June 1, 1930. deposit: Fourth count: $240,000 revenue anticipation notes sold June 28, 1930. deposit: $3,643.810.50.

Fifth count: $590,000 revenue anticipation notes sold July 22, 1930. deposit: $4,070,983.70. Sixth count: $200,000 revenue anticipation notes sold July 22, 1930. deposit: $4,070,983.79. Seventh count: $875,000 revenue anticipation notes sold 1930.

deposit: $3.629,286.86. In each of the counties involving county officials except the first; stated that the proceeds of the sales "were deposited by the La Jenkins, county treasurer Buncombe county. in the said CenBank and Trust company of Wallace B. Davis was and Russell C. Davis, active vice- Biltmore-Oteen Bank Cases An indictment against W.

A. McGeachy, president; W. Crown, cashier, and C. 8. Reed, director, of Biltmore-Oteen bank contained counts.

The Arst count alleged that "with to defraud or injure the said and with intent to deceive the corporation commission of North Cardid on or about Oct. 11, 1930. unlawfully, wilfully and fradulently feloniously make a false report the corporation commission of Carolina, with respect. to the financial condition of the aforesaid and did falsely, fraudulently feloniously report to the corporcommission that the redisof said bank on Sept. 24; amounted to $51.737.91, when truth and in fact the said rediswere $72.717.91, and did on date, falsely, fraudulently and feloniously report to the corpora-' commission that the bills payof said bank were $72.452.44.

in truth add fact, the bills of said bank- amounted to contrary to the form of the in such cases made. and provided." second charged they permita fAlse statement to be publishin the Asheville Advocate on 17, 1930, and the third count false entries at the bank. charged they entered on the that certain, notes had been without recourse, although they. been rediscounted with the Bank. Allegations Outlined returned against A.

McGeachy. Wallace B. Davis. Reed J. A.

Sinclair, direcof the Biltmore-Oteen bank. Arst count alleged the directors officers permitted the bank to money, checks, drafts and property as deposits "well that at said time said corporation was Insolvent unable to meet its depository in violation of consolidated statutes of North in such cases made and and against the peace and of the state." The second alleged they permitted emof the bank to accept while the bank was insolvent. were two counts in the Inagainst Fred Perley, I. G. E.

C. Cotton (meaning Dr. C. Cotton of Asheville). A.

A. Hegeand R. L. Woodard, officers and of the Commonwealth Bank Trust company of Black Moun- first count alleged that these on Feb. 14.

1930, received checks. drafts and other: as deposits with the knowlthat the bank was Insolvent unable to meet its deposit 11a- The second count charged permitted employes to 'accept in violation of the banking second bill was returned against, Perley, G. Beall, C. E. Cotton L.

Woodard on similar counts. the date was No. 15, 1930. separate bills were returned A. A.

Hegeman, both charghe rediscounted notes. at the without the necessary authorthe board of directors, One alviolation was, said to have ocMar, 13. and the other Not Solicitor Keeps Silence, Courser. who was engaged as investigator by the board of commissioners at the request of the of the grand jury, and the prepared the evidence for indictments against W. L.

Crown, McGeachy, C. S. Reed and De. Sinclair, charging them with of the state banking laws. A.

H. Blake, Asheville public accountant, prepared the evidence for the indictments of the officials and directors of the Commonwealth Bank and Trust company. G. N. Henson, liquidating agent for Central Bank: H.

Grady Reagan, county auditor: H. E. Walter, former county auditor, and Fred Hull, tax collector. testified before the grand Jury the conspiracy charges POSTPONE VOTE ON SHOALS BILL UNTIL MONDAY Senate Gets Wickersham Group Data against Newton M. Anderson.

James WASHINGTON, Feb. W. Grimes, James O. McElroy, L. 21-(AP) The senate had before it today.

a beJenkins, Wallace B. Davis and Rus sell C. Davis. (Continued from Page 10. wildering mass of documents, data, Mr.

Henson Elizabeth deserted their house leaders to sup- and testimony on liquor control and the Mrs. port the bill, while only three Dem- from the Wickersham Thompson were witnesses in theocrats bolted their It commission. conspiracy with party to represented part of the material Roberta, B. charges Rogers, against Gallatin vote against it. on which the commission made its C.

H. Bartlett, The Wallace B. Davis and Russell O. rather vote in the house indicated conflicting report on prohibition. Davis.

conclusively the "measure Secret testimony was missing. The Solicitor Zeb V. Nettles declined to could not be passed over a presiden- views of Secretary Mellon, Attorneydiscuss any of the indictments, al- tia1 veto. That is the fate predicted General Mitchell, and other offictals though he admitted for It in many quarters. though were not included.

Standing, out of superior court would be. special necessary term President Hoover has given no defin- from the mass was Prohibition Dito try the defendants. ite His opinion of such rector Woodcock's suggestion, made Because Judge McElroy arrived in measure, however has been rather before taking the office, that "home -court half hour betore the hour clearly indicated previoualy, option" was the solution of the 11- set, the crowd was small: It began If the chief executive vetoes it, it quor, problem. growing and by 41 o'clock scores of will be cast back again Into the The pile of documents revealed persona were arriving to find that "of still unsolved problems, also that John" Motley Morehead, the procedure of returning the in- of which it now is the most aged. minister to Sweden, urged modifidictmenta was ended.

Ever since the World War gave the cation of the Swedish system of. 11- The grand jury went into session government a huge power and ni- quor control for the United States: at 9:30 o'clock Saturday morning. trate plant, in Alabama, congress has Mabel Walker Willebrandt's defense They were summoned to the court- been trying to decide what to do of the -legality of grape concentrates room at 10:40 o'clock by Judge Mc- with the project upon which was detailed. Elroy. All eighteen were present.

000.000 has been spent, Recommendations for a veritable The three county commissioners The present solution calla for gov- army of federal officers to enforce dicted took office on Dec. 3, 1928, the ernment operation of the power prohibition; attacks on the dry Jaws first Republican administration to plant, with construction of trans- by labor leaders; and reports on contriumph in an election here in 30 mission lines to carry electricity to ditions in 32 states were included in years. Prior to that time, Mr. Ander- communities throughout the south- the data submitted. son, founder of Asheville School and east.

It provides for private It seemed as controversy-provoking former headmaster, had been occu-ition of the nitrate plants for the the much discussed commission pled with the development and ad- manufacture of fertilized if they can report itself, and like the report, ministration of Malvern Hills, an ex- be leased within a year, If they can furnished comfort for both wets and clusive residential section, west of not, the government will operate drys. West Mr. Grimes had been these, senate is expected to take no business man and Mr. McElroy, a Practicability Questioned action at present as a result of the farmer. The state of Tennessee is largely glimpse behind commission scenes.

The Central Bank and Trust com- interested in an adjunct of the pro- It may cause argument but even -pany failed less than two weeks be- ject, dam on Cove Creek to cost that is not expected to be extensive. fore the commissioners relinquished $60.000.000. March 4 is at hand and the senate the reins of government. Mr. Ander- Much of the house debate center- is weary.

son returned to his Malvern Hills of- ed about the possibility of getting a The material was transmitted late fice. Mr. Grimes, who had suffered private operator to run the nitrate yesterday to the senate in response stroke of paralysis several months plants, Advocates of the comprom- to a resolution by Senator Tydings, ago previously, went to Florida for we argued such a lease could Democrat. Maryland, an opponent of the winter, and Mr. McElroy, went made, while its opponents 'said the the liquor laws.

back to his farm. restriction that only 15 per cent ad- Woodcock's suggestion that leaving Was Again ditional power could be used for liquor undisturbed in private homes Elected Mr. Roberta, an attorney, became manufacture of chemical by-pro- might close the lid mayor in 20, on pandora's proserved tour years and ducts would keep away any bidders. hibition box was made while he was was elected again in 1927. Mr.

Rog- Opponents of the bill also had a apecial investigator for the comers was elected to the office of com- much to say about the invasion of missionar of public works in 1927 and government into the field of private became prohibition director. mission, only a little while before he He said Mr. Bartlett, to that of commissioner industry. of his plan could be put into effect "by When public safety, in 1923. Congress may not even get a a simple administrative policy." the days subsequent to the chance to vote on the measure again "The citizen could claim the not closing of the bank revealed that the if President Hoover vetoes There had more than $4,700,000 on de- the of right to buy or sell liquor," he addis some talk of city possibility a ed.

"But if he possessed liquor, or in the closed institution, much veto" on the ground that posit of which had been makes liquor in his home. and In within placed on deposit the president would not have sut- such a way as not to be observed by eight weeks before the closing ficient time before congress adjourns the public and if of the Institution, movement to he properly supoust to study the complicated comprom- ports his family, this policy would the three city officials was started. The movement gathered momen- ise. require that he be not disturbed. tum until the Opponents of the measure accused "It he falls in single public in their commissioners.

Its advocates in the house of voting duty, if he breaks the peace in three handed time, resignations, one at for the bill without knowing what way, if he falls to take care of his any during the week of Dec. 8. was in it. if be falls to A new administration was sworn In. family, keep himself Harry Plummer became mayor; John A.

Goode, commissioner of public safety, and Harry L. Parker, stoner of public works. Later Mr. Goode resigned because of his bustness and his place was taken by Andrew Gannett and still later by E. E.

McDowell, Bound Over to Court Three of the bankers Indicted were arrested a little more than two weeks ago on charges of conspiring to violate the national banking laws. After lengthy hearing before U. S. Commissioner Vonno L. Gudger, the defendants were bound to U.

8. trict court to face trial at the May criminal term, which The three and- the bonds under they were held are; Wallace B. Davis, bond $15,000. Russell C. Davis, bond, $10,000.

Mt. Jenkins, bond In addition, Mr. Jenkins faced a charge of abstracting $15,000 from the American National Bank. He. was bound over on this charge too.

JAIL 12 IN ATTEMPT TO KILL RULER VIENNA. Austria. Feb. A group of 12. Albanians.

including Hassan Bey Prischtina, chief foe 014 King Zog of Albania, were seized by Austrian police today in connection with an -attempt to assassinate the king here last night. long been known as the leader of political group which have sworn vengeance on the Albanian monarch, who narrowly escaped death last night when one aide was killed and another wounded as they were leaving the Vienna opera house. The homes of the assailants last night, Azis Zami and Nadk were searched and many round-up of other Toes of King 40g in Austria -continued. Police said the men testified they had tried to kill the king because they considered him traitor to ON SICK LIST Mrs. Feldman, of 118 Swannanos avenue, West Asheville, who has been seriously 111, was Saturday removed to Elinhurst sanitarium.

Mrs. H. D. Forster, who has been seriously Ill with pneumonia at her home, Southside, was much proved today, members of the famfly reported. Guthrie, of the Red Top Cab company.

'is ill at his home on nett street. FARM DEMONSTRATION TO BE GIVEN MONDAY demonstration of pruning, spraying cultivation and fertilization of. orchards will be given by H. R. Niswonger, orchard and horticultura specialist of the extension department at North Carolina State College, in the Elk Mountain orchard Monday afternoon.

Mr. Niswonger will hold a conference with L. Dale Thrash, Buncombe: "county farm agent, Monday morning, soon after his arrival in Asheville. RAINBOW GIRLS ARE TO MEET SATURDAY Members of the Random girls Masonic Temple at 7:50 o'clock Saturday evening. Miss Joyce worthy advisor and Mrs.

Annie May Machin, mother advisor, has urged all members to attend. Masons and members of the Eastern Star der also are invited to the meet: officers will 6 hold a conference in the Temple at o'clock. A' party, with Mrs. Martha M. Guyton, "in will be held following the meeting.

charge, PROBE OF BANK CASES STARTED FIRST OF MONTH (Continued from Page 1) Mr. McGraw. In the meantime ator. S. Bernard was instructed introduce a bill in the general sembly authorizing the county missioners' This week Mr.

McGraw announced that W. 8. Coursey, accountant Southern Pines, and two assistants, had been engaged to help the grand jury with the investigation. It believed the investigation may require three months' time. Coursey has assisted in.

the investigation of other bank failures in state and 18 considered an expert the work, It 15 understood he have charge of the technical part preparing whatever evidence state may wish to use in the trial of the defendants. The members of the grand are: W. H. Rhodes, Capt R. L.

Fitzpatrick, Perry Alexander, F. Gillespie, John McGraw, foreman, R. C. Cooper, M. B.

Reeves, Fred 0. Wilkie, D. Earle. Claude E. Case, T.

J. Miller, Paul Sales, J. A. Meadows, R. Cordell, Zeb Burleson, 0.

L. Kiser and West. F. B. Lakey grand jury officer.

Judge Taken Ill Last Monday, when the February criminal session of superior court was to have opened. Judge McElroy appeared to announce he was still augering from influenza and would be unable to preside until Thursday. He ordered the clerk and An officer to open court each morning and adjourn it each afternoon and told the grand jury it was to remain in session. On Thursday, Solicitor Nettles Ahnounced that Judge McElroy WAS still ill but that he would appear an court at 11 o'clock Thursday mornIng to receive the grand jury's port. The Central Bank and Trust company failed to open Its doors Thursday, November 20, and the American National bank closed the following day after withstanding a heavy run Grew Rapidly The Central Bank was founded in 1913 by Wallace B.

Davis and assoclates. Capitalized at $25.000, the bank grew until it attained a high position in banking circles of the Carolinas. At the time of its suspension, the bank was the fourth largest in North Only three banks- Wan Bank and Trust company and North Carolina Bank and Trust company, including all their branches. and American Trust company of Charlotte--had more resources. Mr.

Davis was first cashier of the Central Bank and was president when it closed. On November 19, the last day on which the bank remained open, there WAS $17,107,941.25 on deposit, -of which amount $14,745,329.36 belonged to the city of Asheville, Buncombe county, North Carolina Park commission. the state. treasurer, rious water and school districts in Buncombe county, and mortgage and investment companies affiliated with the Central bank. Withdrawals Heavy The general banking public-individuals, businees Arms and other agencies in Asheville and western North Carolina not affiliated in any manner with the bank-had only $2.362.611.89 on deposit.

They had withdrawn more than 85,700,000 during the last two years the bank operated. The total public deposits at the Central Bank were: City of Asheville, Buncombe county, schools, including county and specal districts, $446,307.29: North Carolina Park' commission. 35; special districts, $89.971,99: Children's Home fund. $4.929.41: State of North Carolina $67.003.20: J. B.

Cain. clerk of court, and Clay county. $89.096.08. Buncombe county had $328.876.80 and the city of Asheville, $7.398.87. on deposit at the American National Bank.

With a crop reported 32 per cent less than in 1929. California citrus FUNER M. W. JOHNSON Funeral- rites for M. W.

Johnson, 61, will be held at the Walnut creek Baptist church at 11 o'clock Sunday morning with the Rev. M. D. Gant and the Rev. J.

C. Pipes offictating. Burial will be in Runion cemetery. Mr. Johnson died at his home near Craggy Thursday.

He is survived by his widow, Mrs. Dora Sams Johnson; daughter, Miss Marjorie Johnson: and two tere, Mrs. Louis Hall. Dryden, and Mrs. Alice Eads, Corbin, Ky.

JOHN W. REESE Funeral services for John W. Reese, 71. who died at his home in der section early Friday, were to be held at Clark's chapel, near Weaverville, Saturday afternoon. Burial was The to be in Clark's chapel cemetery.

Rev, H. B. Dendy, pastor of Weaverville Presbyterian church, was to officiate. Mr. Reese is survived by a daughiter.

Miss Christine Reese, Alexander, and a brother, R. F. Reese, Chickasha, Okla. MRS. F.

CREASMAN Mrs. T. F. Creasman, 73, died her home near Asheville at 9 o'clock Saturday morning. She is survived by a daughter, Mrs.

Clara Brown and several other relatives. Mrs. Creasman, prior to her death, resided on Route No. 2. Asheville.

Funeral services will be conducted sometime Monday. Reynolds funeral directors will be in charge. of ar rangementste Brownell Dunn Funeral Service LEWIS FUNERAL SERVICE is the best and costs no more, Phone 62-687 College WOMAN ACCIDENTALLY SHOT ROCK HILL. 5. C.

Feb. 31. (AP) -Miss Nina Jackion is in a hospl- tal here today near inflicted her heart. when believed pistol which was lying dress In a World of Figures comes Miss Simplicity from GOLIARD So simple and yet this unique garment contours the figure to lovelier lines. The clever diagonal of the straps (that button in the back) scientifically uplift bust to a natural curve, flattens the diaphragm and abdomen, slenderizes the waistline and firmly persuades the body posture.

priced $10.50 SILHOUETTE SHOP THIRD FLOOR ON A better Girdle Better than you've bought before at this price and you'll realize that when you see it all elastic stepins, side hook models in peach brocade, peach broadcloth and pink silk rayon crepe with solid elastic webbing, and four hose supporters. for only $1.95 STREET FLOOR RIGHT AISLE FOR MONDAY SELLING BON MARCHES ASHIMLLES QUALITY DEPARTMENT STORE bullet. to have caught Me on the the ly on ing and sold kins. at the itors and kins, Davis, with vert of payers note ing unable the did fraud and counts ty tually against that posit and The the as specified rowed showed deposit Trust dates 1930. day.

On 1930. On Sixth 1930 pation: notes posit: Tents HOUSE IS TIED UP BY ROW OVER SCHOOLS, ROADS end of the legislative "pay period" was only two weeks away today and the house was still tied up in tucus over whether the state-supported six months' school question should be settled before a vote is taken on the road bill. A majority of the house membership is behind a "round robin" to defer action on the road bill which comes up in the house as a special order Monday night. Leaders on this group held a terence with Governar Gardner afternoon and asked him to. point blank how he stood on the school issue.

The governor replied he could not take any position until the sub-inance committee has reported on a plan to raise about 000,000 for the schools. He declared it would be "most fortunate," however, to delay action unon the road measure, since it is a major tax relief proposal. The timent of the "round robiners" is. however, that relieving land of the school tax burden would be more beneficial than relieving land of road taxes. The "round robiners" say they favor the governor's road plan but if they cannot have both they prefer the schpol tax relief.

Governor Gardner emphasized that after although the legislative pay. ends two weeks. he expects it will take until April 1 to complete the legislative program and that any delay on the road bill would only, complicate. He pointed out that, major me piece been disposed of by the assembly, An extra session. the present assembly convenes is out of the question at this time, he said.

Hear Power Firm Objections The Joint finance committee, bearing the burden of finding the 000,000 in revenue from source other than ad- valorem taxes on land for the schools, yesterday heard repre- (Continued from Page 1) who has a revenue bill in committee. Mr. Spence said the state tax commission had estimated Mr. Day's, bill would raise $880,000 annually, while its author claims -4-will get millions. Mr.

Spence declared that the rais-1 ing of the necessary money to fulfill the mandate of the MacLean.law. 15 "a year's problem." Representative Lumpkin of Franklin. stating he WAS a signer of the "round robin," declared that the legislature should not hoid up important legislation and said the road bill should be passed without delay. The senate passed six local bills before again resolving itself into committee of the whole to continue a consideration of the local government finance act, section by section. Both houses met in regular meeting today for the first time on Saturday since the 1931 session started in January.

Any bills ready for consideration could be taken up, whereas previously the short Saturday meetings have only considerTed local measures. Bills passed by the house today Included one -by Reed of Buncombe regulating claims against the Town of Black Mountain; and one by Howell and. Reed to- authorize the city commissioners of Asheville to aid in reopening the Bank of West Asheville. The house also passed a bill by Howell and Reed of Buncombe relating to the establishment of a boxing commission for Asheville, and one by Senator Bernard, of Buncombe, to allow the board of trustees of Woodfin to assist in reopening a bank. The boxing bill calls for Jurisdiction of all wrestling matches in the county by the boxing commission.

LONG SESSION SEEN RALEIGH, Feb. (AP) -The fit to perform any public duty, the state steps in and punishes." Woodcock was not the only mission investigator with recommendations to help the situation. Henry S. Dennison and Albert Sawyer beHeved it could be done, among other things by an increase of 60 per cent, in the number of prohibition agents. Twelve Tabor leaders who presented their views to a commission subcommittee indicated they felt prohibition had been found wanting, All agreed conditions were bad and those who made recommendations urged revision or modification for light wines and beers.

The group included Andrew Puresethr; of the International union, John P. Frey, of the Amertcan Federation of Labor, and A. 0. Wharton. federation vice-president.

The 32. state, were. made. chiefly under the direction of Dr. James M.

Doran, former prohibition commissioner by prohibition bureau attorneys. They ranged from a frank recital of alleged wholesale violations In Wisconsin to description of "satisfactory conditions" in New Mexico and other. western and in southern states. Going into detail on the effect of prohibition upon young persons, Woodcock offered a summary of opinions from 30 educators. On the bases of these, he 1.

School attendance laws are better enforced. 2. High school enrollment is far greater. 3. Use of liquor does not in large measure contribute to juvenile delinquency.

4. There iS less drinking by both boys and girls than before prohibition. 5. Home conditions insofar 88 they affect school attendance are far greater. 6.

There is less drinking at social gatherings attended by youths of high school age. "No one can read this the prohibition director said, "'and be anything but optimistic regarding American youth of the high school age." FLAG PROGRAM WILL BE GIVEN AT SCHOOL Grammar grades of Choctaw school which have been occupying the Dutch school building at Enka since their own building burned in January will give a program appropriate for "Flag Study Week" at the Dutch building Monday afternoon at 2:15 o'clock. Dutch residents at Enka have invited to attend. A Dutch flag made by the girls of the school will be presented to A. J.

L. Moritz with an American flag in token of the esteem these children feel for their Dutch neighbors and for. Mr. Morite. Members of the Junior Order of United American have been generous in lending flags and decorations not made by the children themselves.

A number of the Juntors have been invited to be present. sentatives of power companies in the Estate say they could" not stand increased taxes. R. Hoey, of Shelby, a brother-In-law of Governot Gardner, representing the Duke' Power company and James H. Pou.

of Raleigh: for the 'Carolina Power and Light company, the two leading power enterprises in the state, attacked pending legislation to place tax on power. Mr. Hoey 'said a two-mill per. kilowatt tax on power would cost the Duke company $1,250,000 annually, or nearly one tenth of what the committee seeks to raise for the schools. He said the Duke company represents industries only one percent of the in the state, Mr.

Pou said the legislature faces the problem of. saying whether the state will remain principally agriculture, or become an Industrial state: we agricultural, we are doomed to poverty," he said, adding that increased taxes on power would keep Industry from the state. The senate -last night debated the sion Whedbee local government commisbill, but made little headway. Don 9.