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   Panama City Pilot (Newspaper) - June 30, 1939, Panama City, Florida                                Sportsiiian^B Paradise St. Andrews Baf    CONSOLIDATED WITH LYNN HAVEN FREE PRESS Panama City. Port of The Lower Sooth, VOLUME 32 PANAMA CITY. FLORIDA, BAY COUNTY, FRIDAY. JUNE 30, 1939 NUMBER 64 � EUROPE AWAITS NEXT GERMAN MOVE biggest peace spending year ends in deficit Bay Prepares For Thousands Of Visitors Amount is Half   BilHbn Less Than Expected Six Months Ago By IRVING PERLMETER WASHINGTON. June 2Q.-(/P) The fiscal year which ends at midnight artiid tn flurry of ovier-time work by treasury bookkeepers has produced federal expenditures of approximately $9,250,000,000, or $$,580,000,000 more than the government's Income. The deficit, hqwever, is nearly a half billion dollars less than expected, because of smaller expenditures and higher receipts than estimated six months ago. AltHMiigh the expenditures were the highest since the World war days, the deficit figure, which was the ninth consecutive! annual shortage, was only the third highest. Exact figures for the year will not. be available for a few days, but today's approximations were made by offlciala familiar with year-end items after study of figures through June 27. Tommorrow Is New Year . Tomorrow is the new year's day of another fiscal year In which both the spending and deficit figures are scheduled to go higher, irrespective of congressional action on the $3,860,-000,000 lending program proposed by the president. The latter would be excluded from budget figures. ? The end of the fiscal year marked the passing of the expenditure classification of "recovery and relief" to which Mr. Roosevelt often pointed in discussing recurrent deficits. The classification on the treasury books died, however, not because officials desired its death, but because the shuffling of Federal agencies which occurs tomorrow makes the Item too difficult to compute.   The tax revision bill is signed by roosevelt Measure  Reenacts  Excise Taxes Expiring On Last of June WASHINGTON, June 20.-{/P) President Roosevelt has signed the business tax revision bill which does away with the undistributed profits levy. The measure became law at 10 o'clock last night. It re-enacts excise taxes expiring June 30 arid also revamping the corporate tax seUip in response to widespread demand for government to ease Up on business. For the eraduated undivided profits tax, the legislation sub-dtltutes a flat 18 per cent levy dn the income of corporations making more than $25,000. It leaves the taxes on small corporations just as they are -from 12 1-2 to 16 per cent - but gives all corporations, partnerships and individuals the right to carry over their business losses for two years. Present law permits ho carryover. New Formula Provided A new formula is provided for figuring the tax on capital gains, permitting corporations to deduct in full from their taxable income capital losses on assets held more than 18 months. The deduction must be taken during the year In which the loss occurred. Losses on assets held less than 18 months can be used to offset similar shot't term capital gains during the same year. An excess of losses over gains may be carried pver foi* one year. The new capital gains provl-slofi replaces a flat .$2,000 limit �ONE YEAR TO GO Presidential Possibilities No. 6^-Harry Hopkins ,      ,. ,oh such deductions, spending ite|ns,m^ng;jUP  the ^ ,^nothet^i,^tei|4e4,aid. group Win remalqtvl9Ut the subr; total will be dropped. The item of "recovery and relief" Included relief, public works, farm aid, aid to home owners and some other expen-; dltures. In the last year, It totaled $3,100,000,000 and Its deficit was $3,580,000,000. In his annual budget message' to Congress last January, Mr, Roosevelt predicted the fiscal year's spending total would be $9,592,329,000 but It turned out $342,329,000 less. |Ie expected receipts to approximate $5,S20i-. 070,000. and they added up about $150,000,000 more. Thus the deficit was $402,000.-000 less than expected.,' - Officers Contlliuci; Search For .^|egrc Police and county officers this morning were ccnM�\�jiriB, tJjeit search for a ne^i^ l^^l^pWMjr. ^iu> struck a lO-yeArnb) at her home in section yesterday mQr�\inf- Offlcers reported ^^latf bloodhounds brought ftere trojrt Marianna yeste^^l^y lost trail of the fufm% ft sbpH distance from tm h^uae' frbm which he ran when thA girl scremed. One susMCt had been picked up, but offlcers sAld the girl failed to i4e�tUy him as the prowler. ^ Avert Prenililure July 4 Fireworks LAKELAND, Fla^, June 30.4-(/P)A premature |iX>urth of July pyrotechnic display wip^s averted here early today whfiri fitemeh extinguished   a which threatened a supply qf flreworka in a downtown <\moh stind operated by Theg AlKtstolbu. Firemen said ft ahOrt olrcdH in a coffee pevoMU^or 8t4rt<^d a small fire within twd f�et ,Qf cases filled with ti(�woc)cs for the Fourth. CONVINClil , CHESTER, Pa. T^-tA motorist suspected o( being drunk admitted to City physlclfin H. C. Donohoo that h�-hAd downed a couple of bee^s, bMt Insisted that wasn't why h� walked unsteadily. Dr. Donohoo was convinced when the man. unhitched two wooden legs. COMPLETES fl^lOHT MARSEILLE, mnQe. June 30. The Dixie cunper today completed the flr� scheduled transAtlantlo flight* with Paying passengers whe.n sht arrived here Irwn Port ^WWMOItwi. N, Y., via Horta and U(� on. at 1:20 (8; 20 a. m., W). HAS 17TC Married ^27 y^a^C Pope;;. 49-year�Q^ record crowd expected for fun carnival Programs Being Dropped From Airolane Within 200 Mile Radius Secretary ll6pkijiii-.stopped and started too soon* By BRUCE CATTON ihesJs .pe>Miits: .corporations to place a higher valiiatlon on their stocks on June 30, 1039, and June SO, 1040, for purposes of capital stock and excess profit taxation. Although the excise; tax re-enactment takes effect at midnight When the new fiscal year begins most of the corporate tax revisions will hpt affect corporation tax payers untir they pay their 1940 taxes in 1941, CQMELV   WOMAN COUNTS  Nifw; "XOBki � June 3b.-w ^ Ctmytfc^d MM: jury of men who IscOrned her: sfti)ry that the money: she' .to k � ^fpom .Martip BSeck^ .the'atiripai p^ and hferC, uhcle-bxrniarrlft'giB, . were gifts. bedaiiise>she ^ was ;hU mistress. Mi^ltUllan^ S^hreUi' today ta^fll^i^lb)^ For three hpurs and 40 minutes th^ jury debated her reiterated ta)e Of tiysts with Beck-then C(^nvlcted her on two counts of forgery and one count of grand larceny.    , The comely, 38-year-Old former secretary and treasurer of the Beck Interests heard the verdict with little emotion. Only aft^r she had given her pedigree to a court attendant, did she weep. Her < husband, Bertram, patted her cOnsoUhgly on the shoulder. Involved in the counts on which she was convicted was a total of ,$60,000, and that, the prosecution contended, was only a-Portion of the amount she tooKtrom the 71-year-old Beck, spending It In'lavish living. Freed oh $5,000, ban,, Mrs. Schrelh will be sentenced July 7. � -���.�i......f.* 1.1.....�.......-. � Noon Stock List NXW YORK. June 30-(AP)-Ndon stox Am Sm�lt ii Am T *: T Am Tob B Armour; III 0y� cop km AtlMUIC 99 tl))�ba 36 1-3 3� 146 1 1-4 33 3-1 4t 3-8 34 5-a 3-4 10 .1-3 33 10� 3-8 41 4 1-3 It 1-4 � 3-8 U I 38 3-8 73 I- It I- J? I: 8 Irl Cbrrespoiideht. Two things went wrong with the Harry Hopklnsr-fbr-presld^nt, boom. It got started too soon-; and It stopped too soon. It may yet survive both handicaps, but they don't make the going any easier. As.soon as the former boss of WPA 'was. made siecretary ' of commerce, the word went around that thiswas a build-up for the presldehtlalj nomination. This made him .a. natural target^f-^for his foes;- with which he;;ls amply equipped, and the heat was'bn. Then. Just as he was gettlnjg settlett^Iln>hls new^officie, he fell ill;-ahdvwas away;frpm .his desk' for aboutllO weeks.' Both the bulld'-Up - and the' ^retary^blp. bogged d6\yn as a result.    v/.. Fully ijeooyered. Secretary Hop-, kinsUs driving ahead noW> He?ls thelNe^ Deal's chle|'advocate bt '  the expresis^oh)  A)so, M\& predecessor. eXTfifec^etAiiy-, Dfin' RQfcfe}?,: having bJJeh;% ^retty/lnH effective cabinet vnjenlbe>;..�.Mr. Hopkins has a chahce' to shlhe by contrast; An energetic ^d able administrator, he Is making the. most-bf-tt:'- Youthful (he'll be 49 In August), wiry, and nervous, Mr. Hopkins presided over the birth and adolescence of WPA. In general, those who admire WPA. admire him. and those who don't, don't. He admits now that political considerations were given too 'much weight In the running of, WPA; In fairness, It ought,to be mentioned that letting poll-tics in wasn't his idea. Mr. Hopkins recently acquired an Iowa farm. If he is presented formally for the Democratic nomination, he will have tb op-bose fellow-lowan Wallace. HIS AiSSETS: Devotion to the 'l�^4w. Deal; ability as speech-niaker; a natural appeal as' former WPA boss to the "forgotten map;":    � : ' HIS LIABILITIES t A reputation' as a radical; tUe atdent opposition of practically Everyone Who. disapproves of, V^A; bitter ahtagonlsm of. conservatives - in the Democratic .party. .HIS CHANCES: None; too bright; may Improve Jf he makes a good record in his presenit.lob during the next 12 months. Reorganization Plan Finds Haningtm. StiU WPA Head Final plans for Panama City's three-day Carnival of Fun were brought to a close this morning and Invitations to thousands of Alabama, Georgia and Florida residents to visit here were sent out by Special Events. Inc., and the Bay County Merchants association. J. B. Atkinson and Tom Bingham took off from the local airport this morning with more than 20,000 copies of the carnival program to be dropped over cities and towns within a radius of 200 miles of Panama City. Their flight will cover approximately 1,000 miles before their return this afternoon. Expect Record Crowd One of the largest crowds In the history of Panama City Is expected to begin arriving here tomorrow with the first events of the program scheduled for midnight tomorrow night when a sunrise dance will start festivities at Long Beach Casino at 12:01 a. m. Twenty-five decorated floats have already been assured for the Fourth of July parade which will be a feature of the closing day of the carnival. The procession Is scheduled at 10 a. m. Tuesday morning. Sporting events including four sailboat races, an attempt to break the world's hydroplane record and a race between a Taylor Cub cabin plane and the Dolphin 111, record holding hydroplane. H. N. "Nick" Nicholson. Miami sportsman, will arrive here Sunday with hlff Dolphlhrlll lor trial runs over a course off Harrison avenue dock in which he hopes to better the wo.rld record now held by his craft. The Dolphin has been clocked at 82.5 miles per hour and Nicholson believes she can outdistance a low flying small plane in a: straightaway race. Atkinson, Montgomery and Panama City filer and Cub distributor, will pilot the plane. Parade Rotate Announced Fred Philips, parade marshal, this morning Issued an appeal to all organizations,, businesses and individu^ils taking part in the parade to cooperate In mak-; ing the procession bnethe public will t^ppreclate. Philips said the parade wll| befirlh proWptiy at 10 a. m- 1*uesday frbm Harrison , ayenue and Ejghth street and that the route will be south oh Harrison ^vehue to, Flftn street, west bp Fifth street ; to First street, thence, east on First street to, Harrison avenue and north on. Harl-bioh avenue to Sixth, street 4hdc'�vP�lce at Knott's requert.   .. ;, ^ Just: va?^,:tn�, Piibllc/. tc �� "  ' " in WPA appointment would give Harrington-an Army officer with a reputation for slashing red tape and getting things done quickly-direct supervision over the spending of about $1,500, 000,000 In the next 12 months. Uncertainties over the relief appropriation caused him to announce a shut down of all WPA projects from July 1 to July 4. The 2,500,000 workers affected will be permitted to make up the time later In July. Carmody Is leaving the Rural Electrification Administration for his new $12,000-a-year Job. Among the half dozen units he is taking,fiver Is the Public Works Administration, to whose 2,581 employes Secretary Ickes, the present PWA chief, said goodbye yesterday. His voice faltering with emotion, Ickes told a mass meeting of the staff: "I've taken a good many things on the chin, and I ought to be able to take this. I always hoped we would not have to say good bye during my term of office." RIGHT-OF-WAY PITTSBURGH,   (/P) ~t  The transport plane settled (or a lading-but a mamma pheas ant spoiled It all. As the big ship came into the runway, the pheasant, her brood of 10 trailing behind her, dtiri* ed across the concrete.  , Captain W. J. McDonoujjh; 9Q feet, above, gunned his ..mo ;tqrs. faind'^aye mamma phflM ant rightwo(-way. whU�v..:(|M Joins Captors Of His Father Leche Asserts LSU Has Oldtime System BATON ROUQB, La.. June 30. (fi')-An assertion by former Governor Rlchatd W. Leche that "IrreRularltles" were suspected at Louisiana State University several months ago focused attention today on statements by officials Involved In an order to arrest Dr. Jalnes Monroe Smith two hours after he resigned as president of the Institution. Leche described the university auditing system as "antiquated and full of holes" and declared "aiiybody could pocket money that wanted to." At his Covington home where he retired after leaving office last Monday night-24 hours after Smith gave him his resignation-Leche told the Associated Press the bald educator was not arrested at the time he quit because "there was not evidence for such drastic action at that time" and "we couldn't hold the man unless we were positive we had something." Officers here, convinced Smith and his wife had bought a new autombblle In Detroit and entered Canada, examined his home and found a note Indicating he had $50,000 Insurance. NORTHS ABANDON APPEAL SARA^TA, June 30,-(/P) - County Judge Forrest Chapman today announced that Ida Rlng-ling North aiid JQbn RingUnji North, jB^ecutors for the Estate of. the late^Jchh Hlngltng, had abandoned their appeal to circuit court and tequested additional time in' .which to make the I300i000 bond'ordered by Judge Cfhipman'on Jiwo 19. Though his father's government was destroyed by the Nazis and the father himself is 8 prisoner of the Nazi secret police, Kurt Schuschnigg. Jr., above. 13-year-old son of Austria's last Chancellor, is reported to have joined the Hitler Youth, juvenile Nazi organization, in Vienna. hund�dsTe1 olson's^body Town  Relaxes  Following End to Manhunt HAYWARD. Wis., June 30.-(/P) Hundreds of persons filed past the body of Ray Olson as it lay on a slab in a Hayward mortuary last night, coming even from out of the state to view the shrewd woodsman who Icllled two deputy Sheriffs and In turn was shot down by a posse's rifles yesterday. The town relaxed, in a holiday hiood. the grim' tension of the two-week manhunt over. Wives clung to the arms of husbands for who.se safety they had feared as bullets di'bhed through the north woods..        ' ^ The tavern of the late Carl (Cully) Johnson was jammed. Johnson and Fred Scott, also- a Hayward tavernkeeper, v&ere slain by Olson June, 17 as they and other deputy sheriffs went to. arrest the forme;^ convict bn a,charge of , pcsaetislhg- stolen properly-and thus- touched off one Of the grlmmeijt manhunts the north woods, nave knoWn. . The .body of the'. 30-year-oid Qison. also Known as .August Bu-^ elo, was brought to Haywai-d from Washburn, seat of neighboring Bayfield county, where a perfunctory inquest was held lute yesterday. Netherlands Cabinet Resigns Over Funds AMSTERDAM, June 30.-(/l')- The Netherlands cabinet of Dr. Hendrlkus Colljn resigned today as a result of a controversy with Catholic ministers over the question of borrowing funds to finance defense and unemployment projects.  Colljn, veteran political leader who pa.ssed his 70th birthday June 22, was asked by Queen Wll-helmlna Immediately to try to form another government. He withheld a decision temporarily. Colljn. head of the comparatively small Calvlnlst party who has steered the country through previous financial crisis, has steadfastly refused to resort to borrowing and has Insisted on keeping a balanced budget. CARRYING CHARGE GOLDENDALE, Wash. -(/P)- Economy - minded Fire Chief Martin Spalding Is convinced tires can wear too lone to be economical. He placed an order for a set to replace ones purchased 15 years ago, and was informed he would have to add tour wheels foe the fire truck to the order as the old size tires no longer are manufactured. filibuster is feared end to monetary bill See   Better   Chances   To Iron Out Difficulties On Relief Bill THE CONGRESSIONAL SITUATION (By the A.ssoclated Press) Monetary - President's dollar devaluation power put back in monetary bill, but opponents may block Senate approval before midnight deadline. ^ Relief-Joint committee irons but differences between Senate and House measures; Immediate enactment, likely. Neutrality - House tentatively places modified arms embargo in neutrality bill again.st admiaistrtlon wishes; leader'!', seek its removal. a n d warnings create puzzle Nazi  Officials  Announce^ Confidence in Own Armed Strength I OUNCE OF PREVENTION STILLWATER. Okla. - (/P) - Police Chief Horace Andrews believes In crime prevention work as well as in making an arrest after the crime has been committed.   . , /Believing accmnulated circulars and newspapers provide valuable tlppffs to burglars when the residents are on vacation, he announced patrolmen will cart off the Utter if absentees leave their.i44rwM9 at the ststion. ISy D. HAROLD OLIVER WASHINGTON. June 30.-(-^) An overnight ' administration coup restoring President Roosevelt's dollar devaluation powers to the monetary bill went before Congress today in an atmosphere of grave doubt whether It would be enacted before emergency fiscal controls die at midnight. Democratic leadei;8. working feverishly to hold their lines against a disgruntled coalition, expected little difficulty In winning approval In the House. But Senate action depended largely on a bi-partisan combination of antl-devaluatlonlsta. who under the rules of unlimited debate had an ooportunlty to filibuster the blirto death. -Relief ua^ Chance There appeared to be a lietter chance to enacting jthe. huge 1039-40 imt tfettTre YTPA' funds are 'exhausted tonight. Members of a joint Senate-House committee reached a compromise last evening on controversial provisions, but did not divulge, the nature of their agreement before presenting it to the House for ratification. As for the monetary agreement, a Republican coalition spokesman said it would be "fought to the end," but he evidenced a desire to confer with associates before saying Whether there, would be a filibuster, pethoccatlc opponents also disavowed any filibustering intentions; pending pre-sesSion cbnsultiiltlohs.     .� PireSldent Rbosevelt, >vhose. devaluation power and  authortty to maintain ..the : $2-,000,000,QOO currency, stabiUzatlOn fund Expire at midnight unless the bill is passed, hiay make a;: f)ersdnal trip-to the, capltol tO'sieri'lt in eveiit of an 'admihlstratibri victory, i,, , - '�'  � MUnkndwil Oh the other hand, ,11 the bill is talked to death Jthd, boVfers voted In 1933 to cbhibat foreign ciirrency depreciation and Its adverse e ffeet, Op American trade ar^ allowed to lajise, no one would" Ventura a guess as to what would happieh. While the Monetary and Relief committees wore meeting in adjacent rooms last night, the House was winding up a noisy 13-hour session devoted to neutrality debate. Against the appeals of administration leaders it tentatively placed in the bill a modified arms embargo. The chamber adjourned about midnight belore a final vote on the measure was reached, giving the administration forces a chance to throw out the provision this afternoon or tomorrow. The original legislation repeals the existing embargo against shipping arms and ammunition to belligerents, RELEASED BY NAZIS MONTBELIARD, France, June 30~(jT*)-Four young. French canoeists, held since Sunday by German customs officials when they stopped at a fortified island on the German side of the Rhine, returned today to their homes. They were released from prison at Loerrach, near Basel after protests were made by the French consul in Basel. PENAL SERVITUDE LONDON. June 30.-(iT")-Five men were sentenced today to 20 years' penal servitude each for conspiring to cause explosions. A series of explosions has been attributed by police to members of th eoutlawed Irish Republican airmy. P|l|N0E9$ TO WED LONDON,,June W.-0?)-The Duke and Duchess ot Kent left by alrplanfr Morence today to attend the'WAddlng tomorrow of the Duchess' cousin. Princess Irene of Qr�eee, and u^e Duke o� Spoleto. i (By The Associated Press) Europe was a puzzling jumble today of rumor, alarm and; solemn warnings by high official spokesmen. The usual tangible bases for fear were not appar-^ ,^.| ent, but grave British and French"" ' declarations that "further ag- -gresslon" would be met by force ,; matched rumors that Germany ^ was preparing for a new coup,, ; perhaps against the Free City of Danzig. British Foreign Secretary Lord ',! Halifax, in a speech described as' "the gravest warning by a for- . elgn minister to another power � since the World war," bluntly advised Germany that "furthet;i3 aggression" would be met by "the � i whole of our strength In fulfill^ ] ment of our pledges." -".""'j His talk followed a similar ad- !1 monition by FrenchJ'^emler Da- t^l laaier only last Tuesday.   ,       ^ Germans Shrug Shoulders ' In the face of all this official. < Germans simply shrugged thelWJ shoulders. "We are conscious 01 our strength and supremely: calm, "they said. Berlin newspapers, in giving meager space, to the Halifax warning, omitted-his statement that Britain would "meet force with force." The^ ridiculed reports of an Imminent Nazi move. Premier Mussolini was reporti;'_^ ed to be keeping In close touch 'f with the Fuehrer by telephone./"^ The press and official quarters'-' here too displayed outward calmj decrying "alarmist" campalgris,^ abroad, but Increased uneasiness m was apparent among ItplansT themselves. Britions   wondered   whetherl's' Hitler would heed the HalUax'^*^ declaration, in which Englahd's, preparedness was stressed*s  way equipment was moving liitb,; Germany through the Brennes'T Pass. Berlin said that "no ab'-J normal number of reservists'.has 1 been called up." General    Maurice    Gustavo G'amelin, head of all French de4 fChse forces, toured along thCi Italian' frontier Inspecting fortlr; flcatlons, ahd France opened-upsi her enlistment rolls to forelgnersll In France wishing to fight dur,-i Irig a war if war comes.       - S . in  the. Far  East  Japanese! Planes destroyed an  American i. SCl^obl at Foochow, plalnly-mar^-edi did an estimated $50,0Q0 dam-age. Thei!e were no casualties. The raid came ; after   official | American declarations that Ja-:4| pah w.buid be held responsible for daihfige to American -prop- . (Bi;.ty In activities at Foochow; The British landed 36 bluejackets ;^ there to protect British property, si ^ The. Netherlands cabinet   of Premier, Hendrlkus   Colljn re- i signed In a controversy over.bor- f jjowlng funds for defense and uh- ^ employment. water markers to bejlaced To Designate Fresh And Salt Water Division Permanent markers designat- ,^|;| Ing the fresh and salt water marks of streams In Bay county will be placed by the Bay County Fish and Game Protective aseor elation, it was decided at a meeting of the board of directors ol the organization yesterday. Members of the Iward of directors of the association voted,' approval of the expenditure  of funds for the purpose of marking the lines on streams desigf , nating the areas in which seln'-ing is prohibited. Lines were es-," tabllshed by a bill sponsored by^vS the association and  passed in.' the recent legislature by Repre-^ sentatlves H. L. Sudduth and J/ Ed Stokes.  '  ; The board of directors also re,-, . ported that through the coopeCr'i atlon of the Forestry SerylQe.t markers had been placed on ^xLi, area of 35,000 acres on the easfc-'l em edge of the county. By action of the board yeatejjv-l day all Boy Scouts and 4-H oiufe' members in, the county will * made honorary members of protective association. FRANCE OPENS . , PARIS, June 30-(/P) opened the enlistment , her armed forces todays elgner residents, in >Wsm want 'to pledge du>rtn� time that, they/wilV �|:' the duratlon^'^ot wa^V ' oomes 47   

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