Decatur Daily Democrat, Volume 34, Number 156, Decatur, Adams County, 1 July 1936 — Page 5

CONTEST STATE RIGHT TO TAX Indiana Brewries File Complaint In Marion County Indianapolis, July I.— (U.R) — A suit contenting the right of the state to impose taxeo on a tax paid to the federal government was on Hie today in Marion supeior court No. 5. The complaint, tiled by 15 Indi ana breweries. named the Indiana gross income tax division, Clarence A. ’Jackson, director; Gov Paul V. McNutt; Peter F. Hein, treasurer of state, and Laurence, F. Sullivan, auditor of state, as defendants. The gross income tax division is attempting to collect tax from 1

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I the plaintiffs on a tax of $5 a barrel the plaintiffs pay to the federal government for all beer with drawn from storage, the suit contends. i The complaint set out that the plaintiffs in 1934 paid more than SIOO,OOO in rederal taxes upon I which the state is attempting to collect the gross income tax. It also was argued that the gross income tax division refused i to accept income tax reports filed ' by the plaintiffs with the amounts paid to the government deducted. "There is no authority anywhere in the gross Income tax act for the state ot Indiana to levy a tax upon ' a tax,” the complaint set out. The complaint alleged the plain- | tiffs were agents of the federal I government in collection of the $5 ' per barrel tax and mat the tax I could not be considered income, j subject to the state's gross income i tax. Terming the action “a friendly I suit.” Jackson said it concerns ' about $20,000 income to the state.

DECATUTt DAILY DEMOCRAT WEDNESDAY, JULY 1, 1936.

■ | "The breweries are paying a .state gallonage tax every day i which Is not deductible from their I gross income tax; thus, we are I taxing a tax daily." he said. “This ~ suit is merely testing our right to i tax a federal tax." , The law firm of McHale, Arthur , & Myers filed the action. Frank McHale, adviser to Gov. McNutt, is a member ot the law firm. I ° BUSINESS WILL (CONTINUED FROM PAGE ONE) , duration. ( For amusement, theaters of the ‘city are planning special programs. | both matinee and night. For sports II fans, the Deeatur Mutschlers will ; I play a double header with Chat- . tanooga, Ohio, at Worthman Field, the first game starting at 1:30 p in. ’ With the Fourth providing a double holiday this year, many Der catur residents are expected to . take advantage of the opportunity to visit nearby and distant lake ■ resorts. J o PLAN FIGHT ON | (CONTINUED HTtuM proposes retention of the gross income tax law, with legislation recommended to eliminate "any existing inequalities." Lieut. Gov. M. Clifford Townsend, Democratic gubernatorial nominee, yesterday advocated exemption of businesses showing a 1 loss in an interpretation of the "inequalities" plank of the platform. The Republican state platform i repudiated the tax in its entirety. Rathert said his organization had been insistent on the repeal of the tax because it believed the i nature of retail operations precluded an equitable distribution of the I burden on “gross incomes." "Take for instance the man who i earns a SIO,OOO annual salary as compared to the retailer who does SIO,OOO worth of business a year. “The ‘gross income’ tax on the salaried man's money amounts virI tually to a ‘net income' tax, while the retailer must pay tax on his gross income of slo,ooo’ before he | deducts expenses of his business I to derive his salary.’ "Du'w to the fact that the smaller retailer necessarily must turn his stock over several times annually and re-invest his capital each time the same capita! is subjected to greater annual deductions for gioss income tax payments than persons who do not re-invest their original capital to produce a greater annual gross," the chairman said. I o FIVE PERSONS (CONTINUED FROM -AGE ONE) whipped up on its right side, then over on its top. With the weight of the bus up!on them most of those inside

were unable to move. The crash of the bus was heard in Gio little colony of houses and stores that is the town of Natural Bridge. The one doctor here began administering first aid as the victims were extricated from the twisted bus. A wrecking crew, seven more doctors and four ambulances arrived from nearby ! cities. As the bus was righted it developed that it finally had been slopped when it crashed up against a signpost. Clyde Canter, a bus driver who was riding as a passenger, described the scene as a "horrible nightmare”. — ■ —o J. P. MORGAN (CONTINUED FROM PAGE ONE) As the train drew into the station. Morgan was seen sitting at the window, peering at the small i crowd on the platform. When some curious persons approached the window tor a closer : view, he snapped down the shade. Morgan's sons boarded the train. A few minutes later, Henry emerged, smiling. "Oh, he's feeling excellent,” the son announced. “He's in tine spirits." Before the train arrived, Henry S. Morgan had told newspapermen that his father had not been well for several weeks. It had been planned, he said, for him to remain several more days at his i sister's Massachusetts estate, but there was no improvement in his condition and it was decided yesterday to bring hint ham- at once. Four porters, aided py several members of the financier's party, carried Morgan in a wheel chair to the platform. His face is pale. He keipt it averted most of the time btjt raised it once to smile at the small group around him. Millneck po’fee and members of the Morgan party prevented reporters from approaching close as the banker was wheeled to the topi of the platform steps, where he was transferred to a stretcher. Morgan was carried down the stairs in the stretcher and then placed in the ambulance. A physician and nurse accompanied him on the ride to the estate. OUST ZIONCHECK (CONTINUED FROM PAGE ONE) were all sold out from St. Pau! and , they would have to take up my reservation. At no time did they refer , to my mental condition.” He scoffed at reports from the airline attendants that he and Bishop had disagreed over who would I pay Bishop’s fare. Zioncheok understood that 'Bishop’s expenses were to be paid by his employer, Kenneth Romney, house of representatives sergeant-at-armw. Zioncheck hinted lie would try to board a plane at one of the railway stops. His mother is ill in Seattle, and he is anxious to get to Iter .side, he said. o Watch Dog on Payroll Toledo —(UP) —The payroll of the Toledo Art Museum carries the name of a watchman who has a special cook. He is Ranger, a huge German police dog, who stands guard at night. o Old Violin Worth $15,000 Toledo —(UP) —For 55 years, an old violin was in the family of Joseph Jurdick. Only recently did Jurdick learn that the instrument is a > genuine Amati, made in 1680 and valued at $15,000.

WINDSTORMS ’’ strike when least expected and often in unexpected places. Even a moderate blow can be upsetting. Espreiatly if you have no Windstorm Insurance. Written by ths dependable Automobile Insurance Company of Hartford) Connecticut. Aetna Casualty an! Surety Co. Aetna Automobile In*. Co. Aetna Life Insurance Co. SUTTLES-EDWARDS CO. Agents Decatur, Ind. Phone 358 IlliuiSiiiiiiU

CROP REPORTS DISCOURAGING Need For Rain More Acute Than In 1930 Or 1931 Washington, July I—(UP)1 —(UP) Need tor rain in drought-stricken regions is more widespread than in either . 1930 or 1934, the weather bureau reported today in its weekly crop bulletin. Government emergency agencies, massing forces for the stupendous task of combatting effects of sear- | ing sun and laek of moisture, were advised that there is urgent need | for rain “nearly everywhere” in the I United States. The weather bureau said that in , 1930 and 1934, when the worst droughts in history ravaged agricultural regions, the situation was “not nearly so critical" at the end of June as it is today. The report added that in 'both i previous droughts, the situation beI came more critical and caused the greatest crop damage during July and AugustIn its daily forecast, the weather bureau predicted local showers tonight or tomorrow in Kentucky, West Virginia, Ohio, eastern Wisconsin, Michigan, lllionis, Indiana and eastern and southern Missouri, but stated that no prospects appeared for rain in other sections and that no important changes were expected in temperatures. The bureau also reported that substantial rains had fallen during the last 36 hours in West Virginia, Southern Indiana, southern Illinois, Kentucky. Southern Missouri and j Eastern and southwestern Kansas, j and that light rains had fallen in i northern Missouri Nebraska and . the Northern portions of Ohio, Indiana and Illinois. Tile discouraging report came while emergency agencies, under I leadership of President Roosevelt, made plans to aid drought-stricken ' farmers of the Nation s “breadbasket” —The vast agricultural areas of the mid-and northwest sections. MEAT Thursday, Friday and Saturday Specials Open All Day Saturday LARD, lb 13c HAM. lb 20c SHOULDER, lb 18c SIDE, lb 18c Neckbones, 3 lbs. 25c Meaty Spare Ribs, lb. .. 17c Boiling Beef, lb. lie or 12c Beef Steak, lb. 18c or 19c Beef Roast, 1b...15c and 19c Nice Cakes 15c -20 c Eggs, dozen 20c Cheese, lb IS’/jc Bread 9c, 3 for 25c EARL SUDDUTH 512 So, 13th st. Free Delivery Phone 226

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Secretary of •Agriculture Henry | j A. Wallace left tor a three-weeks, ! inspection tour of the drought area, j ' Work-relief resettlement admjnistration, and flocal officials started i raising fund* to relieve distress j among farmers and to move thirsty j Hungry livestock to regions where ! feed and water is more plentiful. The bureau of agricultural economics reported meanwhile, that the world wheat supply is the smallest in nine yeans—63s,ooo,ooo bush-1 i via on July 1 as compared with ' 8M»00,000 buehels last year ami j 1.109,000,000 bushels two years ago. ' The July 1 carryover in this country was estimated at 125,000,000 bushels, the smallest since 1928o Fewer French Babies Born Paris. —<U,R>—-Deatus outnumbered births l>y 19,476 last year in France. The number of children j born in 1935 was 638,881, as com-

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pared with 677,365 in 1934. Death* numbered 659,357, compared witli 634,525 in the previous year. - o - LABOR-CAPITAL (CONTINUED FROM PAGE ONE) prevent a spread of the threatened strike to other industries. An organization drive in the rubber and textile induetries, beset by frequent strikes, has been considered for several months. Leaders of organized workers in those industries now want the unionization drive started along with that in steel. These demands were among the problems facing John L Lewis, president o fthe United Mine workel's of America and head of the committee for industrial organization, in conferences this week with other members ot the CIO board of strategy.

PAGE FIVE

SEE INCREASE (UGNTINUED FROM PAGE ONE) ded to relief expenses. Hopkins’ first allocation contained $21.000,• 000 for stricken states. Aliuo. t ail that money was for regularly unemployed. however, because drought need has not yet been determined. 4. WPA work rolls now total 2,293,925 persons, lowest since the $4,000,000,000 progrejn just ended went into full swing last November 15. Need will Imund upward with cold weather. 5. Hopkins testified before th" senate appropriations committee that, unless private industry absorbs jobless, the administration will need a new $500.000.(>00 to $1,000.1*00,000 appropriation at congress’ next session. u Trade in a Good Town — Decatur