Indianapolis Times, Volume 43, Number 222, Indianapolis, Marion County, 25 January 1932 — Page 5

,J ATS. 25, 1932_

STATE, LOCAL GOVERNMENTS WAGE DESPERATE BATTLE TO ESCAPE FINANCIAL RUIN Slash Wasteful Expenditures, Consolidate Departments, Curtail Building in New ‘War for Freedom.’ CONFRONTED BY HUGE DEFICITS Roosevelt Cuts Sixteen Millions Off New York’s Budget; Pinchot Weeds Out Bureaus, Fights Lower Pay. The nation is at war against the high cost of local and state governments. Officials and taxpayers are demanding decreases. New means of obtaining revenue are being sought. Through the boom years of 19?X.and 1930. public work proceeded with great strides. Millions were spent. Todnv. with the decrease in national business, officials are seeking means of curtailing expenditures to drive awav deficits. Consolidations of government departments are being made. Vast works are being eliminated or postponed. The United Press presents herewith the first of a series dealing with state government attempts at retrenchment. This article covers the east and daily, for the remainder of the week, articles will be presented covering every section nd state in the Union. BY MAX BUCKINGHAM United Press Staff Correspondent (Copyright. 1932. bv The Times) ' YORK, Jan. 25.—A new war for freedom—this time against increasingly heavy costs ol state and local government—has spread inrough the east as officials have striven to eliminate expenses threatening financial ruin. From the locale where the first Pilgrims sought freedom in the new world and through the great money centers of the nations, there circulated tnc unanimous demand that economies in keeping with the times be effected. Village and hamlet, city and town were affected.

The millions of dollars voted in prosperous yester-years were forgotten as budgetary chiefs sought means to save a few dollars here and several thousand there, in an attempt to prevent enormous deficits which almost every commonwealth foresees. Departments Consolidated The United Press reviewed conditions in the eastern tier of states --Maine, New Ham. shire, Vermont, Massachusetts, Rhode Island, Connecticut, New York, New Jersey, Pennsylvania, Delaware and Maryland. In only one, Delaware, was there found to be a situation of relative economic ease. Many measures for economy are suggested. Work on the great strips of modern highways must cease at many places. Municipality salaries are being cut —some voluntarily. Overlapping state departments are being consolidated and eliminated —some by as much as 200 and 300 per cent. New construction is being eliminated. The state b: state survey by the United Press: New York—The new budget recommended by Governor Roosevelt calls for $291,291,114 or $16,624,932 reduction from that of the previous year. Expenses of eleven departments cut. including $8,000,000 road building. The budget recommended 100 per cent increase in 1932 income taxes, doubling of the 2 cents a gallon gasoline tax and levying of an emergency tax of 2 cents on every share of stock traded (thus doubling the old tax). New York Doubles Gas Tax Governor Roosevelt has recommended a moratorium on statutory increases in school teachers’ salaries to save between $5,000,000 and $6,000,000. Mayor Marvin of Syracuse literally has forced salary reductions of all city employes. New Jersey—Governor A. Harry Moore recommended more than 100 departments be consoliated into twelve departments; abolition „of thirty-five commissions; two-year recess in road building; return of $16,500,000 to the municipalities from the load building fund; temporary postponement of institutional construction. May Cut Salaries in Maine Connecticut—Governor Cross announced projects not regarded as immediately necessary must be postponed, including the $10,000,000 Merritt highway program. Maine—Governor William Tudor Gardiner said state employes might have salary reductions on a sliding scale of 5 to 15 per cent and the Code bill, recently indorsed by voters, will consolidate many departments at a saving of $300,000 annually. Massachusetts Governor Joseph B. Ely recommended salaries of all employes earning more than $2,000 annually be reduced 10 per cent; that administratne expenses be cut; that state departments reduce their expenses 5 per cent. The proposed unemployment appropriation this year is $400,000 against $2,000,000 last year—last year's covering a two-year period. Mayor Curley of Boston is expected to cut city expense by $5,000,000. New Hampshire Economical New Hampshire—Budget estimates for 1931-1932 cut from $4,113,201 to $3,618,151 and the budget estimates for 1932-1933 cut from $4,297,778 to $3,795,523. The legislature meets only every two years Spending for the first six months

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of this fiscal year, (running from July 1 to June 30) has been cut $200,000 under the appropriations. Savings included reduction in mileage on state motor vehicles, issuance of anew contract for state gasoline and new state printing contracts. Rhode Island—Finance Commissioner Frederick S. Peck announced expenses must be reduced by more than $1,000,000 and Governor Norman S. Case said “we must not impose new taxes.” Many cities curtailing expenses and Felix A. Toupin of Woonsocket said “we have stopped the system of foolish borrowing.” Pennsylvania Faces Deficit Vermont—Numerous minor and unnecessary expenses eliminated from state departments; cost of state institutions reduced mainly through more economic buying and more efficient management. Pennsylvania—Governor Pinchot claims the state faces a huge deficit and State Treasurer Edwin Martin contends there will be a $10,000,000 surplus in the treasury this year. Many organizations demanding curtailment of governmental expenditures and elimination of high salaried officials. Governor Pinchot said he had reduced the number of boards and commissions and that studies were underway for further reductions. He is opposed to salary reductions. “Slovenly housekeeping pyramids the cost prodigiously,” he said. Delaware On Its Feet Delaware —Economy is the watchword but no cuts have been ordered and the state is floating a $1,000,000 road bond issue; has undertaken construction of state buildings costing $750,000; has increased the franchise tax permitting rebate of 50 per cent on income taxes. Governor Buck urged the rebate be used for aiding the unemployed. Wilmington, Del., is constructing three new schools at about $1,200,000 cost and one outside Wilmington at a cost of $300,000. Maryland—Governor Albert C. Ritchie advised heads of state bureaus that $2,000,000 must be saved in 1932 or there will be an appropriation cut next year and possibly a decrease in personnel. “I do not want any construction curtailed or anything done that will add to the unemployment situation,” he said. “We must get down to necessities now.” Baltimore’s annual collection of tax revenues show 94 per cent collections and Mayor Howard Jackson has ordered extreme economy with the budget more than $3,000,000 reduced.

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THE INDIANAPOLIS TIMES

ARREST SEVEN, SEIZE CIGARETS IN POLICE RAID • Robbery of Warehouse Is Believed Solved by Detectives. With purported confessions from five members of a gang of alleged thieves, detectives today said they had cleared up the $17,000 cigaret robbery from a warehouse of the Hamilton-Harris Company two weeks ago. Held under bonds of SIO,OOO each, on vagrancy charges, the alleged thieves are said to have told detectives how they “spotted” the warehouse several days and then cut their way into the eigaret storage lepartment and fled with the loot. Those held are: John Baxter, 50, and William Brown, 23, both of Twenty-first street and the Post road; Herbert Skaggs, 28, of 2020 West McCarty street; Alfred Cross, 35, and James Cross, 30, of 2526 Adams street; Fred Harker, 38, of 3324 East Vermont street, and Frank Bernard, operator of a grocery at 2134 Northwestern avenue. Cases against the suspects were continued to Jan. 29 in Municipal

Judge William H. Sheaffer's court.! All but the Cross brothers have made statements, detectives say. The Cross brothers, Skaggs, Baxter and Brown, were nabbed in Baxter’s home on the Post road early Saturday night by armed police and detective squads who surrounded the residence shortly after dark. Police said they confiscated 210 of the 252 cases of stolen cigarets, a 50-gallon whisky still and a quantity of booze. Skaggs is said to have admitted organizing the gang after the Cross brothers are alleged to have made him a disposal proposition on stolen cigarets. According to detectives, Skaggs said the warehouse was watched several nights and they obtained trucks to haul away the loot by breaking into the Diamond Trucking Company, adjoining the warehouse. From their first hiding place in Mars Hill, the tolen goods -iere hauled to Baxter’s home several ! clays later and were being removed 1 from there Saturday night when officers arrived. Baxter is said to have told police | he had taken no part in the robbery, but had agreed to “hold the hot stuff” for the alleged thieves for several days. Harker is said to have admitted receiving sls for driving the truck in which the cigarets are said to have been hauled from the Mars Hill plant to Baxter’s home. Bernard, according to officers, confessed he bought seven cases of the cigarets and was to have received three more for $340. He claimed he did r.ot know the cigarets w?re stolen, -authorities said.

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‘HUMAN MISERY' FIGHT IMPENDS BEFORESENATE Poor Appropriation Bill Is Likely Center for Bitter Battle. BY' LYLE C. WILSON United Press Staff Correspondent WASHINGTON, Jan. 25.—Another bitter battle over the suffering of the destitute, similar to that which caused President Hoover a year ago to accuse senators of “playing politics at the expense of human misery,” impends in the senate. Last year the fight centered largely around drought relief, but un-' employment figured in the dispute. The jobless now dominate the problem. Senators Costigan (Dem., Colo.), and La Follette, (Rep., Wis.), have sent to the senate with a favorable committee report, a bill to appropriate $375,000,000 for the destitute. The -senate plans to devote today to discussion of silver and the possibility of fixing its value in relation to gold. There is scheduled for Tuesday a bill dealing with deportation; of alien seamen. With those two matters out of the way, the up-;

employment relief battle should begin. President Hoover has fixed for the administration the policy of making the states and communities responsible for feeding, clothing, sheltering and providing medical attention for persons unable to provide for themselves. Witnesses before the Costigan-La Follette committee have testified that families in some areas are trying to subsist on as little as $5 a month. There were stories of six families finding shelter in a sixroom house. Witnesses have intimated that some seriously affected centers may experience disorders in February and March, unless additional relief sources are discovered. Administration leaders are not confident they can beat the relief bill in the senate. There is a disposition to look to the Democrats in the house to block it. The issue raises a nice question of politics in a presidential year. Observers believe the Democrats will find a way out of the difficulty by a free vote in which the party leaders will not express any preference, and the individual representatives will make their own choice. The Democrats have announced they will reduce Mr. Hoover's budget recommendations by $300,000,000 this year. The relief appropriation would wipe out that gain and add $75,000 to the aggregate the treasury must supply. Under those circumstances administration leaders expect the house either to defeat the relief bill or drastically reduce the appropriation. Costigan and La Follette would j

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have the federal funds allocated among the states to be distributed by state or community organizations. An effort probably will be made not only to reduce the appropriation, but to transfer it from state control to the Red Cross. Poison Effort May Be Fatal Mrs. Mary Hamilton White, 34, of 1336 College avenue, is in serious condition today at the city hospital after she swallowed poison Sunday in an attempt to end her life, police say.

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