Muncie Post-Democrat, Muncie, Delaware County, 10 February 1939 — Page 4

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TBS P^ST-PEMOCR^T Pt^OAT, iBSBFtfmiS? x% 1939.

THE POST-DEMOCRAT A Democratic weekly newspaper representing the Democrats ol Muncle, Delaware County ana the 10th Congressional District, The only Democratic Newspaper in Delaware County.

Entered as second classe matter January 1J>,' 1921, at the Pofitbffiee fit Muncie, Indiana, under Act of March 3, 1879. PRICE 5 CENTS—$1 50 A YEAR '

AniBBca Marks 29fh Boy Scjoiut Anniversary 7

223 North Eirn Street, Phone 2540 MRS. GEO. R. DALE, Publisher

Muncie, Indiana, Friday, February 10, 1939.

HIGHLIGHTS (Continued From Page One) • per cent of the people in both parties favor such a direct, primary law at this time. Without debate, the amended measure increasing disability payments to the workmen’s compensation law, passed to engrossment in the Senate Monday. The measure has been one of the most hotly contested, representatives of employers asserting that it will mean additional burden on industry, while representatives of labor groups maintain that it is only fair and equitable. It is expected that the debate for and against the measure will wax long and bitter when the measure comes up for final passage. Should the hill pass the Senate, the chances are that it will not get by the House, and for this reason it may be that some Democratic Senators have deemed it to be good politics to permit the bill to pass the Senate and if killed in the House, the blame could be placed on the Republican majority in so far as labor is concerned. On the other hand, however, Republicans could claim credit in the eyes of industry. Indianapolis. Ind., Feb. 10.—In their eagerness to bury the Democratic Two Percent Club, House Republican, Tuesday, delivered a fatal blow to their own hill by sending it back to committee where it will rest in peace. With the measure on its passage, Democrats raised the point that the bill, as drawn, would have the effect of repealing provisions of the corrupt practice act in the state, devised to protect election against fraud. The Republicans were caught more or less unawares with this specter in front of them, and rather than vote the bill down, they decided to send it back to the Committee on Judiciary A. Representative Ed Stein, Democratic Floor Leader, questioned the right to recommit the measure after it has passed engrossment and was ready for passage, contending that such an action would require 2-3 vote of the House. Speaker James M. Knapp, however, ruled to the contrary and ordered the bill recommitted on a majority vote of 50 to 49. The bill is sponsored by the Republican State Committee and was designed to subject the Democratic Two Percent Club to restrictions of the corrupt practice act. Rep-resentativ-e-Winfield "Jfr- Denton, Evansville Democrat, pointed out the danger to the state law throwing safe-guards about elections, yesterday. Representative Stein vigorously questioned the ruling of the speaker in permitting the bill to be recommitted without a 2-3 vote. We are inclined, however, to agree with the ruling of the speaker, since the motion to recommit did not carry specific instructions to amend. Had that been the case under the House rules, a 2-3 vote would have been necessary. The Republicans immediately prepared to introduce another measure aimed to eliminate the two per cent club. In the Senate Tuesday afternoon the crowded gallaries were treated to a real outburst of oratory during the debate on Senate Joint Resolution number one, which is a final submission of a constitutional amendment to make the State Superintendent of Public Instruction appointive instead of elective. Senator Eugene J. Payton, Democrat of South Bend, a lawyer and a professor at the University of Notre Dame, led the debate for adoption of the resolution. Senator Payton was particularly eloquent in his oration and there was a complete silence throughout the Senate Chamber as he warmed up to his work. His theory was that politics shoiild be taken out of the state school system for the benefit of the children in the public schools of Indiana. Senator Claude McBride of Jeffersonville, led the opposition to the measure in an equally eloquent vein. His theory of opposition was that the right of the people to name their own public officials was being continually threatened and that appointment instead of election of the state Superintendent of Public Instruction was wrong according to the Democratic theory of government. Among the interested spectators was Floyd McMurray, the present state superintendent. The vote on the measure was a tie, 24 ayes and 24 noes and so the resolution was lost for lack of a constitutional majority of 26 votes. Representatives of numerous women’s clubs and other organizations interested in the passage of the resolution were present in the Senate Gallaries. When Lieut. Gov. Henry Schricker announced the vote as a tie, without thinking for the moment, he voted “no” to break the tie although his vote was not legal since the measure had lost anyway because of the lack of constitutional majority. Immediately afterwards another Senate Joint Resolution, which would amend the constitution to change the basis of the six-year legislative apportionment from the enumeration of male voters to the vote cast for the Secretary of State at the last proceeding election, was carried by a vote of 27 to 18. On the first resolution, where the

vote was a tie, party lines were disregarded and 12 Democrats and 12 Republicans voted on each side of the question with Senators Weiss of Indianapolis and Rupert of Brazil absent. The House Tuesday passed eight measures, most of them with little opposition. One measure, however, which would create a public library board and issue certificates to persons qualifying for library work, met unexpected opposition, but passed by a vote of 64 to 20. The measure sponsored by the State Bankers Association, which permits state banks to deduct their gross income tax on deposits from the amount of their intangible tax paid and to deduct from their intangibles a proportioned amount of cash reserves, went through the House by a vote of 91 to 0, although on second reading a few days ago there were severtfl attempts to kill the bill. The House also passed the Republican measure repealing the 1937 Truck Tire Tax Law by a vote of 87 to 6. And that brings us to the question of what to do with the question of taxing trucks. The Senate can not afford to pass this bill and repeal the 1937 act without first providing for a measure to take the place of the Court recently held the 1937 act 1937 law. The State Supreme valid and by reason of this decision, the automobile license department is mandated to collect the 1937 tax which amounts to approximately a million and a half dollars. Some $600,000 had already been collected. It is believed that the Democratic Senators will introduce a bill simply providing for amendments to the present law, probably eliminating the farmer from the provisions of the tax and moderating somewhat the present schedule of tire tax on the, larger trucks. Administration leaders have been informed that the Republican House will refuse to increase the gasoline tax 1-cent as suggested by Governor Townsend with a companion measure to reduce all automobile license plates cost to $1.00. One measure can not be enacted without the other, since the state would just be trading dollars in the matter of revenue. Therefore, there will likely be a measure introduced reducing automobile license plates and making the fee $4.00, $6.00 and $8.00 according to the weight of the car. The present law provides a graduated license scale of somewhat higher fees on a basis of horsepower. Administration leaders believe that with the collection of tire truck tax under the new amended bill, the revenues will equalize the loss in the reduction in passenger automobile license plates. Administration leaders are still worried over the mess which the liquor control reform has developed due to the fact that all parties concerned have different ideas. The fact of the matter is that the Republcian liquor control measure is not acceptable to anyone and the Senate bill can be made acceptable only by amendment. It is more frequently urged that a separate bill limited to the repeal of the port of entry system be immediately passed in the Senate along with an anti-discriminatory act giving the Alcoholic Beverage Commission power to retaliate against unfair practices by other states with reference to the liquor industry. It is apparent that someone must take a firm stand on this question, for as one Senator said “We’ve either got to control the beer and liquor industry or they will control us.” Judging from events of the past few days there is every reason to believe now that there will be no additional taxes enacted by this General Assembly. There is every likelihood that there will be no increase in the tax on beer and liquor, and judging from indications those in charge of the budget have a more optimistic outlook on the condition of the state finances than they did several days ago. With the cuts already made in the proposed budget, one official who has been working with the budget committee made the prediction that based on present revenues there will be a five million dollar balance in the state treasury on January 1, 1941, in spite of all talk of deficits to the contrary. Indianapolis, Feb. 10. — When Speaker James M. Knapp, of Hagerstown, flicked the lash of bitter criticism about the spending proclivities of the House of Representatives Wednesday, he scourged the backs of the members of his own party because of the fact that more than 95% of these spending bills were introduced by the Republican majority in the House. The speaker said that there were 48 bills which, if passed, would cost the state an additional $7,000,000. We would suggest, however, that the speaker rest at ease and that you taxpayers sit peacefully back, because the Democratic Senate will not pass these measures. They are pledged not to increase taxes at this General Assembly. The action of the Republican members of the House is reminiscent of the days when they were last in power in the state of Indiana during the administration of Governor Harry G. Leslie. The records show that the budget committee gave Governor Leslie an

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Pnstrr by Hamid .V Anderson fTHIS poster, showing how “Scouting Carries On American Ideals”, A. theme of Boy Scout Week from Feb. 8 to 14, marks the 29th anniversary of the incorporation of the Boy Scouts of America. 39,750 Boy Scout Troops, Cub Packs and Sea Scput Ships now include 1,233,950 boys and men, a membership gain of better than 13% in the past year. Since the beginning of Scouting jn America 8,400,000 boys and men have been identified with the Movement

estimate at the end of the fiscal year of 1931, that there would be a balance in the state fund of approximately $892,000. Because, however, of the spending spree of the Republican Legislature, the state was saved a deficit only when Governor Leslie' borrowed 52,000,000 for the general fund from the State Highway Commission so that at the end of the fiscal year, September 30, 1931, there remained a balance in the state treasury of $1,280,000. This balance, however, melted away during 1932, so that when Governor McNutt came into power there was an estimated deficit in the state treasury of $3,224,743. That was the record of spending during the last Republican administration, and as I say the scores of bills pouring in from the Republican side of the lower house of representatives, is reminiscent of those days. And when one considers this record of government as compared to the business - like administration during the past six years there is cause for wonder that the newspapers and others should be so concerned over the fact that at the end of the fiscal year, 1941, there will be a balance of only about two and a half million dollars in the state treasury. What is the actual cost of state government insofar as the taxpayers generally are concerned? This cost is the levy for state purposes upon the total valuation of the state today is 15c on each $100 upon a valuation of three and a half billion dollars. That brings in about five million dollars. That is the actual cost of the administration of state government. In the days before Democrats were in control, the actual cost was about fourteen million, since the levy for state purposes was 29c on a valuation of about five billion dollars. State government today is more or less a clearing house for the disbursement of funds. For instance, almost every board and commission in the state government is self supporting, not from taxes, but from fees collected from the profession or trade which that particular board or commission serves. And yet these fees are budgeted, and are contained in the state budget, but that does not mean that taxes are levied to collect them. If the state budget total was up $10,000,000 instead of $3,000,000, it would not necessarily mean that cost of state government had increased and, as a matter of fact, it has decreased, as can be readily seen by comparison of the two simple figures of $14,000,000 and $5,000,000 and by comparison of the state levy of 29c and 15c as it is today. If I buy a house that costs $10,000 and you tell me you will pay half of it and give me the money with which to pay for it, that doesn’t mean that I spent $10,000 for the house, for I spent only $5,000. That is much the same way the state government acts today. It disburses millions of dollars, a good many millions comes from the federal government for matching funds. For instance, on the state highway commission and in the public welfare department. The state disburses the workmen’s unemployment compensation and the disbursement totals some $15,000,000, but that is not raised by taxation and can in no wise be considered a cost of state government. The state collects some $31,000,000 each year which is sent back to local governments. This money is budgeted, but it is not a part of the cost of state government. The

financial picture of the state is not one about which there should be cause for worry. For the fiscal year 1939, the state will have about $48,000,000 to spend. The budget calls for an expenditure of $41,000,000 leaving a balance at the end of the fiscal year of 1940 of about $6,000,000. For 1940 the state will have about $42,000,000 to spend and the budget calls for an expenditure of $40,000,000 leaving a blaance at the end of the fiscal year 1941 of $2,319,000 for the next administration. So why should the present administration worry about state finances. The past two state administrations have planned with unusual care to meet the additional enormous drains upon state revenues. They knew they were coming. Such enormous drains as old age assistance and other public welfare. The state felt constrained to aid the local communities to pay for their schools because the state constitution provides that the state shall provide a system of public education. The state had provided that system, but had let the local communities worry along with the cost as best they could. And during the administration of Governor McNutt, a small portion of the teachers salaries was assumed by the state and this has been increased until today $700 of each teacher’s salary or a total of about $14,000,000 a year is paid out of revenues collected by the state, and as a result of this collection and disbursement local property taxes have been reduced in proportion. Tuesday a bill skimmed through the House of Representatives, by a vote of 93 to 0. Just a few days before, there had been a bitter fight against the bill by several members of both sides of the House. The bill was sponsored by th6 State Bankers association and seeks to relieve the state bankers of most of their intangible tax payments. As a matter of fact, this bill will relieve the state bankers of Indiana of about $580,000 of intangible tax. It means that the local schools will loose $550,000 and the state general fund about $30,000. Somebody must have turned on the heat in the House on this bill. When the bankers of the state, or those representing the bankers, first talked about this measure they said it would cost only about $43,000 to put state banks on a parity with national banks. But the banks were not satisfied with that and so they included a lot of other relief for the banks. The banks deliberately, under this bill, are taking that amount of money from the schools and the bill should not pass the Senate and likely will not. As a result of a conference with the governor today members of the Senate committee investigating school text books likely will introduce bills to provide a mandatory free or rental text book system in the public schools. Governor Townsend recommended that such a bill be passed and said that in his opinion, it would save school patrons either by tax money or by private money, which ever system is adopted about $2,000,000 a year. The governor was asked his opinion as to the multiple adoption system of school books as compared to the single system now in use, and he said he didn’t care what they did about that. Indianapolis, Ind.. Feb. 10.—Passage of the measure introduced by Representative Chester V. Parker, Republican, of Pittsboro, by the House Thursday afternoon, is without a doubt a direct attempt

to embarrass the p,reseat sts>.te administration. Administration leaders, working with the budget committee, have worked out a schedule whereby it Will not be necessary to raise any additional new taxes now; to tap any new fields of revenue if the present schedule of receipts and expenditures is maintained. Republican leaders in the House, of course, know this. Despite this knowledge they rammed through the Parker bill which would take about a million and a quarter dollars out of the general fund and about four million dollars from the State Highway Commission. This amount of money taken from the Highway Commission will prevent the commission from matching federal funds on highway grants. It is very likely that when the measure is received by the Senate it will go to the committee on roads where it will sleep peacefully the rest of this session. The Republican majority in the Hoifse has been figuratively licking its chops in anticipation of the chance to emasculate the budget bill before it gets into the hands of (he Democratic Senate. At this session of the General Assembly, however, they will not get that chance. Heretofore it has been the custom, and for many years it was the constitutional requirement that the budget bill be introduced in the House since it was a revenue raising measure. However, during the past several sessions of the General Assembly the biennial appropraition bill is not a revenue raising measure, hut is merely a budget of the funds distributed to the various departments of government. Therefore, it is constitutional to introduce the budget bill in the Senate. And so the budget bill now being printed ready for introduction will be introduced in the House and Senate at the same time. The Senate will pass the measure and throw it into the laps of the Republican majroity in the House, leaving to them the responsibility of undermining the financial structure of the state if they so desire or even if they dare. The Republican Steamroller in the House continued to make good on platform pledges today and | by a strickly party vote, 51 to 47, advanced to third reading House bill 16 which would return to state officers their appointive powers. This is another drive against the present reorganization law and when the bill goes to the Senate it will likewise rest peacefully in the Senate Committee for the balance of the session. When proponents of the measure which would repeal the railroad Full Crew Law failed to resurrect the measure, which lost the other day for lack of constitutional majority, the repeal measure is dead today under the Senate rule. When a bill fails to pass for lack of a constitutional majority the rules provide it may be brought back on the floor at any time within three days. However, there was no action taken today, the third day, and thus the bill is dead in so far as the Senate is concerned at this session of the Legislature. There is wide diversions of opinion in both Senate and House on legislation affecting both farmer and labor groups. For the past six years Democratic General Assemblies have given the farm groups and the labor groups everything that was asked of them. As is usually the case, however, groups which have been the recipients of special privileges have the essentially human trait of becoming unappreciative. During the past six years the Democratic party has proven itself the friend of both labor and agriculture. These groups no doubt have forgotten their treatment at the hands of the Republican party when they were in power in the state and in the nation. The result of this forgetfulness was reflected in the returns at the last general election. This is particularly true from the rural sections of Indiana. They voted against the Democratic ticket and there is some sentiment in both House and Senate to the effect that this lack of appreciation should be reflected in the attitude of members of the House and Senate on legislation affecting these two groups. And members of the Senate particularly have so expressed themselves. There is, however. every reason to believe that the Democratic party will stand by those who have been friends of the Democratic party. The administration has just about decided to go along with its program as first announced of setting license fees for pleasure cars at $1.00 and raising the gasoline tax 1 cent to make up the difference. Some of the Republican leadership had informed administration leaders that the Republicans would not go along on this , program in the House. It is believed, however, that when the advantages are explained to the Republican membership. that at least a sufficient number will go along on this popular program, to pass the bill. Of course, one bill cannot be passed without the other. It has been decided also wise to repeal the present truck tire tax law and attempt to write a new truck .'weight tax law which will be acceptable to all who are iaffected by its provisions. This hill is in process of preparation at this time. Uncle Joe Cravens, 80 years, old Thursday, confined to his baronial home high above the Ohio River at Madison, dominated Indiana State Senate today. Members of the Senate, Republican and Democrat paid tribute to the man who for 22 years _ made his influence felt in the legislative hall^ of the state- government, as a fearless,

Cv»a3CieiitiQUs champion of the people and good government. Senator Waiter Chambers, of Newcastle, who has probably been in the Senate longer than any other man now, although his- service has not been continuous, called attention to the 80th birthday of the veteran legislator. He was followed by Senator Floyd Garrott, veteran Republican leader, Senator Charles R. Morris, Democrat of Salem, an editor and publisher and another veteran, Senator Jake Weiss, of IndianapoSenator Claude McBride, of Jeffersonville, and Senator William Jenner of Shoals, the Republican Floor Leader. Senator .Tenner said: “Uncle Joe Cravens was serving the state of Indiana before I wa.s born, and he is more than a Senator to me, for he has become an institution in

favor, taking any part of the company’s business operations from Mancie since a large number pf the workers who may be transferred own their noipes here and would choose to stay in Muncie. A petition is being circulated among the business men of the city by resolution of the Muncie Merchants Association which w r hen fully signed wilLbe sent to George N. Tidd of New 7 York, president of the American Gas and Electric Co., of which the local plant is an affiliation. The request of the petition is for the utility to not move its accounting division to Marion but to maintain its present opera tions in this city. ‘

o-

ottr part of the State.’

COUNTY

(Continued From Page One)

Lieut. GoV. Henry Schricker also added his praise and tribute and named a. committee composed of Senators Chambers, Garrott, .Tenner and Charles Bodwell of Sullivan to draft a resolution of tribute to he spread upon the records of the Senate, and sent to the* "Tizzled Senator at his home in

Madison.

Tt has been expected that Uncle Joe. as he was familiarly known, could be in the Senate Thursday to hear the tribute to his leadership while he was a member of the Senate and the House of Representatives. ■ o—— MINTON ADVISED NO CENSUS JOBS OPEN UNTIL FALL

i the issuance of bonds. Such bonds

Washington, Feb. 10.—The office of Senator Sherman Minton made public today the contents of a letter from W. L. Austin, director or

t _ h ?__ < :T US B ureau . regarding the ^104^1*" benefit's they" receive'

No such provision to pay any ser-

shall not he a debt of the city of Muncie, the county, the state of Indiana, nor any political subdivision of the state. Neither the city, the county, the state, or any political subdivision of the state, shall be liable thereon for the issuance of such bonds nor in any event shall the issue be payable out of funds or properties other than those of the authority. . Any bonds sold by the local aurhority are guaranteed by the federal government and must be paid from receipts of the project within the first fifteen years of operation. Such bonds do not effect the indebtedness of the city, county, township, or state and therefore cannot effect local tax rates. As is (he case with all federal owned property, the project will be exempt from taxation hut.it is permitted by law to pay service charges in lieu of taxes for the

selection and appointments of employees for taking the 1940 deeen-

niel census.

Minton’s office has been deluged with inquiries from all sections of the state from persons seeking employment in the organization for taking the 1940 census. Austin pointed out in his letter that no jobs were available now and would not be until late in this year. The Congress has not approved an appropriation for the taking of the census and until this was done, the director wrote, the permanent staff would make their usual plans in laying the groundwork for the nation wide organiza-

tion.

PROPOSED (Continued From Page One) paid by the local Indiana General Service company has averaged approximately $100,000 mer year during the past three or four years. It is estimated that this amount is small compared with the total net profits of the utility and therefore if such a business was owned by the city, it would produce several times the amount of taxes lost by municipal ownership. It is believed that the local management and employees pf the utility do not

vice charges have been included so far by the local authority and the loss of taxes to the township, county, and state from the property as now assessed would amount to approximately $115 per

year.

It is considered that the savings of present costs for sickness due to unsanitary living conditions for a largo number of families who now are forced to reside in hovels is well as the possible prevention of crime which also costs society i great amount of money each year will many times offset the 'oss in taxes caused by exemption. - r t is known that slum areas are an ictual drain upon any comnuinity, aside from questions of vice, crime, and health, and the better nousing program proposes to eliminate such conditions. Often it has been argued by real estate owners that such low-rental housing projects are competitive and injurious to private real estate enterprises. Secretary of the Interior Harold lekes stresses the point among real estate owners that to date private enterprise has failed to enter the low-cost housing field because there is no prospect of a reasonable return upon the capital invested and therefore since private capital does not pro-

vide low-cost housing, then, the government is not competitive with private ownership but remains alone in that field. Furthermore, lekes points out that slum clearances do increase and maintain real estate values and prevents deterioration to real estate which after all protects the investment incomes. Also, it may ae considered locally that since his program has already been •tarted and finished in some parts of the nation and is serving successfully with the aid of federal funds which must be paid by everyone then why should not Muncie and Delaware countv receive our share of benefits derived from the building of better homes and the supplying of better living conditions to as many of, our MFzens as possible. Tt is no doubt agreed that the $300 per acre purchase price of the ground site is high for farm land but ii is also acknowledged that oropertv values are increased when they are wanted to be bought especially by Uncle Sam, no matter Mhere they are purchased. However, reduced to land "•osts per dwelline within the construction area of 13 1-2 acres, each real estate value would amount to appro v irr'atelv $38 for each build'’ng lot, This amount may not be considered unreasonable. The local countv housing authority consists of six hoard members appointed by the board of county commissioners and include Francis Fiuan. president, F. L. Carr, secretary-treasurer, Glen F. Richman, Gilbert Meade, Byron Winmte, and Joseph T. Meredith, The countv authoritv has opened an office on the third floor of the Johnson Block building. Room 345, and it. is advised that all their plans have been fullv approved bv the federal government authorities. o NOTICE TO NON RESIDENTS State of Indiana, Delaware County, SS: Mildred C. Hot mi re vs. Ralph F. Hotmire In the Sunerior Circuit Court, January Term, 1939. Complaint: Divorce. No. 3986-S. Notice is hereby given the said defendant Ralph E. Hotmire that the plaintiff has filed his complaint herein, for divorce together with an affidavit that the said defendant, Ralph E. Hotmire, is not a resident of the State of Indiana, and that unless he be and appear on Monday the 10th day of April, 1939, the day of next term of said Court, to be holden on the second Monday in January, A. D., 1939, at the Court House in the City of Muncie in said County and State, the said cause will be heard and determined in his absence. WITNESS, the Clerk and the Seal of said Court, affixed at the City of Muncie this 3rd day of Feb., A. D., 1939. SEAL Arthur J. Beckner. Clerk. Benadum & Cecil, Plaintiff’s Attorney. Feb. 10, 17 & 24

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