Indianapolis Times, Volume 43, Number 172, Indianapolis, Marion County, 27 November 1931 — Page 7

NOV. 27, 1931

DETRIMENT TO BUSINESS SEEN IN SALES TAX Low Salaried Workers Will Bear Burden If Enacted, Economist Declares. 111/ Scrippg.fi oirnrrt Newspaper Alliance WASHINGTON, Nov. 27.—Recommendations of Secretary Andrew Mellon and a number of senators that federal revenues be increased by imposition of a sales tax are not being received enthusiastically by business, according to reports reaching here. A few days ago tne National Retail Dry Goods Association expressed its disapproval of the sales tax, calling it "class legislation” and pointing out that it will lead to a falling off of consumer demand. This same sentiment is echoed by Dr. William J. Schultz, financial economist of the National Industrial Conference Board, writing in the current issue of Barron’s Financial Weekly. “The supreme drawback to a federal sales tax would be its social injustice,” says Schultz. "The billions of revenue it would produce would be drawn in large part from the poorer classes of the country. "The bulk of the country’s consumption is performed by the millions of the poor and moderately well to do, not by the small number of the rich. The revenue from a consumption tax will come from the pockets of the stenographer, the bookkeeper, the miner, the steel worker, the mechanic. "The unemployed worker, desperately drawing upon his savings, will be called upon to draw still more heavily on those savings in order that the federal government may avoid increasing the rates of the income tax—a tax which after all is paid by those who are earning incomes. “The worst offense of the sales tax against the principles of tax justice, however, is that it bears

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Election of Thomas Osborne, 2258 Talbot avenue, as president of Utes, Butler sophomore honorary organization, was announced today. Other officers are Frank Reissner, vice-president; Harold Buckhonr, secretary-treasurer, and Harrison Miller, sergeant-at-arms.

more heavily on the poor than on the rich. "The man with an income of SI,OOO or $2,000 is forced to spend practically all of his income on the necessities and semi-necessities of life for himself and his family. "Food, clothes, and household furnishings—all of them articles which would be subject to a sales tax—absorb from 70 per cent to 80 per cent of his income. A 1 per cent sales tax would add on the average per cent to the final price of these purchases.” Insurance Claim Opposed By Times Special ANDERSON, Ind., Nov. 27. Suing on an accident insurance policy, Oris F. Honnold seeks to recover $283 from the World Life Accident Association. An injury suffered in a fall caused him to lose nearly three months employment as a boiler maker’s helper and the company has refused to settle.

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WESTERN CITIES ARE HARD HIT BY TRANSIENTS Large Centers Face Trouble in Taking Care of Own Dependents. By Scrippg.ffaward Newspaper Alliance WASHINGTON, Nov. 27.—Winter migrations of those who seek jobs, and those who do not, are well under way, but according to reports from affected cities, their relief efforts among their own idle will not enable them to pass along much help to -visitors. A desire to escape the cold and to find jobs are the forces that cause this annual migration, the latter reason apparently being responsible for greater numbers making the trek in the last two seasons. In rattle-trap autos, horse-drawn vehicles, as hitch-hikers, aboard freight trains and walking, *ransients now are beginning to reach southern, southwestern and western cities, aggravating unemployment and relief problems in these centers. / California and Florida always have been favorite resorts for tjte idle from the north and east. A report from California says that an average of 609 men are entering California daily, about 70 per cent looking for jobs. Unemployed totaling 150,000 are expected in the state during the winter from northern sections. San Francisco, the report adds, is feeding 1,500 daily, with an increase of from 500 to 800 each week. There, Mayor Angelo J. Rossi and the supervisors have promised that none will go without food and clothing. In northern California, cities have started the establishment of camps and kitchens along principal highways to relieve pressure on the larger centers. Two thousand men are said to be walking back and forth between Los Angeles and San Francisco, seeking work. Coming east, El Paso reports that

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THE INDIANAPOLIS TIMES

charity associations and railroad companies are at a loss to cope with i the situation presented by the transients. Captain Henry L. Watson, in charge of the Salvation Army there, is making preparations to handle as many as* 300 men a night during the winter. He has requested that many cots and twice that many blankets from the local army post. His organization is feeding 255 a day at present. v Oklahoma City reports that transients are beginning to arrive, but that so far the number is not abnormally high. The Salvation Army reported that while it helped

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10,000 transients during the three winter months of last year, only 2,088 men and 390 women sought aid in October. Memphis, usually a mecca for migrating people, has not yet received its annual shifting population of the idle and the inveterate drifters. Police there attribute this falling off to the activity of railroad special agents. Uninvited guests, usually from eastern seaboard cities and states, sometimes camp on the outskirts of the city. These are moving along gradually as news reaches them that Memphis will feed only bona fide residents throught its relief depots this winter.

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