Indianapolis Times, Volume 43, Number 237, Indianapolis, Marion County, 11 February 1932 — Page 3

FEB. 11, 1932.

RUSSIA OFFERS PLAN OF TOTAL DISARMAMENT Only Effective Security Against War, Litvinoff Tells Conference. By United I’rt** GENEVA. Feb. 11— Soviet Foreign Commissioner Maxim LitvinofT today proposed ‘ total general disarmament as the only effective security against war” in his address before the world disarmament conference. Litvinoff asked the conference to abolish tanks, superheavy long range artillery, naval guns of over twelve-inch caliber, aircraft carriers, military dirigibles, heavy bombing planes, all stocks of air bombs and all means and apparatus for chemical. bacteriological and incendiary warfare and all ships above 10,030 torn displacement. - Regarding the conflict between China and Japan LitvinofT said: “Present events in the Far East can not but cause special anxiety to the Soviet Union owing to its geographical nearness to the theater of these events, where huge armies are operating and where anti-Soviet Russian emigres are mobilizing their forces. “Despite all this, I am empowered to declare the readiness of the Soviet Union- to disarm to the same extent and at the same rate to which other powers, first and foremost those actually on our borders, may agree.” LitvinofT pointed out that Russia is not without her problem of security. Obviously referring to the refusal

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Mills' Aid

* ■■■ !■ —— , t

Arthur Atwood Ballantfne, above, of New York, former first assistant secretary of the United States treasury, was promoted to under secretary when his superior, Ogden L. Mills, was named to succeed Andrew W. Mellon.

of the United States to recognize the Soviets, he said: “Even now many states, Including one of the strongest naval powers, do not conceal their hostility to us, even to the extent of refusing to eestablish normal peaceful relations.” The foreign commissar implied the abandonment of Soviet propaganda abroad by stating that “the sole aim of - the Soviet Union is the building up of socialism within the territory of the Soviet Union.” Belgian Foreign Minister Paul Hymans, a veteran statesman with flowing white hair, was the first speaker. Choking with emotion, Hymans said that continuation of the world race in building armaments “will lead to war, ruin and revolution.”

SALES TAX ON MANUFACTURER LUOMS LIKELY House Ways, Means Group Leans Toward Idea, but Garner Is Dubious. BY THOMAS L. STOKES United Pres* Staff Correspondent WASHINGTON, Feb. I.—The house ways and means committee seriously was considering a general manufacturers’ sales tax today, as a way out of the dilemma created by dwindling treasury revenues.. Sentiment has swung toward such a tax, by which it is estimated the government could raise between $600,000,000 and $800,000,00, as a result of revised treasury estimates showing that $1,241,000,000 of new taxes will be necessary to balance the budget by July 1, 1934. The inclination toward such a tax at this juncture, however, does not mean it will be adopted. The committee, confronted by stupendous prospective deficits, is casting about in every direction to find money to meet the situation. They alighted upon the sales tax as one source, evenly distributed, that would bring in a big lump sum. Members of the committee are under tremendous pressure from the various interests they considered taxing, and the sting would be re-

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THE INDIANAPOLIS TIMES

moved somewhat by a tax covering all. It was representatives of some of these interests who suggested this way out when they appeared to protest specialized levies aimed at them. Speaker Garner, whose word is powerful with the committee, still doubts the wisdom of the tax, taking the position that, once a part of the law, it might become permanent. He prefers rather to tax selected groups and repeal these taxes when prosperity returns. The manufacturers’ tax would be passed on to the consumer, though in a fairly painless manner. Suggestions are for a flat 1 or 2 per cent tax. On the basis of a value of $60,000,000,000 of manufactured products last year, a 1 per cent tax would raise $600,000,000. It is estimated this value now has shrunk to $40,000,000,000. A 2 per cent tax on this amount would bring in $800,000,000. The committee discussed such a tax from all angles for two hours Wednesday and will resume its study today. This proposal was considered after the committee had combed the possibilities of revenue from increased income taxes, inheritance taxes and a gift tax. They found these sources, taxed to the point of maximum return, would bring in only around $350,000,000 or $400,000,000, leaving a gap of around $800,000,000 to be closed.

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COUNTY FACES BONOfROBLEM Detention Home Issue May Be Difficult to Sell. Uncertainty of the bond market may cause county commissioners to delay construction of anew detention home, they announced today, as they planned a SIOO,OOO issue for the project. “We fear we may face difficulty in selling bonds,” Dow W. Vorhies, board of commissioners president, stated. Sad experience of the county council in trying to sell a $384,000 bond issue recently to refund sinking fund bonds falling due this year is basis for the commissioners’ fears. These were offered for sale twice, but banks failed to bid. Now the issue is to be sold in several smaller amounts at a higher rate of interest than anticipated. Commissioners are considering erection of anew, modern juvenile detention home. They propose to purchase a site at the northwest corner of Ogden and Alabama streets.

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