Indianapolis Times, Volume 44, Number 19, Indianapolis, Marion County, 2 June 1932 — Page 3

JUNE 2, 1932

LABORIOUS TASK OF CUTTING EXPENSE STARTS IN SENATE; HOOVER’S MESSAGE JEERED Lawmakers Settle Down to Final Job Involved in Balancing - of Budget; Sharp Antagonism Flares. HARRISON LEADS RAZZBERRY CHORUS President’s ‘Heroic and Historic Dash’ Had Nothing: to Do With Passage of Tax Bill, He Declares.

BY MARSHALL M'NF.IL 1 nittd Prea* Staff Correspondent WASHINGTON. June 2. The tax-tariff issue was revived as the conference committee on the *1.121.000.000 revenue bill met for the first time today. On the floors and corridors of the eapitol, however, discussion centered on the political consequences of what Senator Pat Harrison (Dem.. in sarcasm, called President Hoover's “heroic and historic’ dash up Pennsylvania avenue from the White House to the senate chamber with his special tax message Tuesday noon. Harrison asserted, and other senators supported the statement, that Mr Hoover's personal appearance had nothing to do with the speed with which the senate passed the bill ji. t after midnight Tuesday. They also said that the finance committee had agreed cn a budgetbalancing tax bill before it knew of Hoover's sudden decision to make his address. Fare Fight in C'onferenre The tariff fight in the conference committee revolves about the Impoi i duties on copper and lumber written into the bill by the senate. This fight is ied by Representative T. Rainey Dem. 111.), majority leader of the house, and one of its conferees. hopes to kick out these two protective tariffs, but he foresees litilr chanre of eliminating the oil and coal tariffs approved by both houses. Other items in the senate budgetbalancing bill, with the probable exception of the 1 cent a gallon gasoline tax. are expected to be approved with little controversy, and soon. Senator Harrison's chronological account of the progress of the tax bill, leading up to his statements i concerning Hoover's personal appearance before the senate, was delivered. he said, to correct 'somewhat of a misrepresentation.'' Refuses Credit to Hoover “One reading the newspapers this morning—some of them, not all—would get the impression that the United States senate had been frittering away time," Harrison said. Hoover's ride has given some people the impression that if it had not been made “we would still be considering the revenue bill to the ; detriment of the government,” he j said. ‘T say.” Harrison shouted, “that the President coming to the senate did not. in my opinion, hasten the consideration and completion of a revenue bill in the slightest. “The revenue bill would have been completed Tuesday whether the President came to the senate or not." If there was any delay it was “because of doubt as to what was needed to balance the budget.” Relates Chain of Events He told how the house had passed a tax bill which then balanced the budget at the treasury's estimates, and bow the senate finance committee, of which he is the ranking Democratic member, had brought out a bill that also complied with Secretary Ogden L. Mills' request. Up to Monday of this week. Harrison declared, the senate had relied on the estimates of revenue needed submitted by Mills on May 8. On Monday, he said, it was whispered among sena f ors that anew treasury deficit was impending. On Monday afternoon, Harrison went on. Senator David A. Reed <Rep.. Pa.) “burst upon the senate and the country the startling news” tnar at least $200,000,000 more would be needed to balance the budget. Might Have Been Passed Monday A this point. Senator La Follette <Fep.. Wis.i. also a member of the firnnee committee, asked Harrison if It wasn't a fact that the tax bill would have been passed Monday right if it hadn't been for Reed's speech. “The senator has stated the facts.” Harrison replied. The lanky Mississippin told how on Monday night he and othrr Democratic members of the finance committee were called to the White House, and said that there for the first time Mills intimated that some $200,000,000 more would be needed to balance the budget Mills did not know the exact amount, the senator continued, but promised to have it Tuesday morning. Then Mills Wanted More Tuesday, shortly before 10 a. m.. Mills appeared before the committee and said $285,000X100 more was needed. Within less than an hour and a half after this statement was made, the committee was ready to agree to taxes which would raise the necessary amount. Mills suggested imposition of the general manufacturers sales tax. and Harrison said “we told him then, as the world knew" that 55 senators had agreed to oppose this tax. Later Hoover urged this very tax

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BY RUTH FINNEY Time* St(T Wrflvr WASHINGTON. June 2 —The senate settled down today to the final ta.sk involved in balancing the budget—reduction of government expenditures. In solving this problem, it, at tfie same time, may decide on a program for federal relief. The first hour’s debate on the senate economy bill disclosed the close relationship between the two, and while the Garner and Wagner relief bills still are both pending before committees, ageement on a general policy for financing public works considerably would shorten both major tasks remaining before adjournment. The first hour's debate disclosed, also, sharp antagonism in the senate to the committee plan for effecting federal economies largely at the expense of government workers. Proposals Are Studied Overnight, the senators, in their first opportunity to study proposals of the economy committee, have been considering alternative means of saving the necessary amount. One of the first alternatives laid before the senate proposes financing of 1923 expenditures for public works by a bond i.ssue instead of by current taxes. This proposal is part of the Wagner relief bill. The fiscal situation now confronting the senate is this. If the tax bill finally becomes law, substantially as adopted by the senate, savings in current appropriation bills necessary to balance the budget are. according to Treasurer Secretary Ogden L. Mills. $350,000,000. President Hoover placed the figure at $400,000,000 in his message Tuesday, allowing for possible necessary deficiency appropriations. .Millions Must Be Trimmed Os the saving to be made $141.500,000 has been accomplished already in the house of representatives. This is the amount by which the house cut the appropriation bills beneath the estimates submitted by the budget. That leaves an additional $208,500.000 iO be saved by the senate, if Mills’ figure is accepted, or $258,500,000 according to the President’s estimate. The senate already has trimmed $17,500,000 off the appropriation bills it has passed on, including those for interior, state, justice, commerce and labor departments. This means that an additional $191,000,000 remains to be saved under the Mills estimate, or $241,000,000 under the Hoover estimate. Three Ways to Slash There are three principal ways under consideration by which this might be done. The economy bill now pending before the senate proposes to save 5238.605.000 largely through 10 per cent pay cuts in federal salaries, reduction of annual leave with pay. reduction of veterans’ benefits, of vocational education, and so forth. If it should be passed without substantial change, small additional economies would have to be made in the remaining appropriation bills to achieve the amount asked by the President. The second plan—backed by Senator Elmer Thomas (Dem., Okla.)— provides for transferring public works expenditures irom the annual supply bills to the relief bill, where they will be financed by government bonds. Against Salary Cuts This immediately would effect savings of about $300,000,000 in the budget, less a small amount for carrying charges on the new bonds. Its adoption would make unnecessary further consideration of salary cuts. The third plan would call for drastic cuts in certain functions of the government, such as ship subsidies, prohibition enforcement, national defense, and other debatable items of expense. Comments of senators upon first presentation of the economy bill Wednesday seemed to indicate unalterable opposition to acceptance of 10 per cent salary cuts for low-paid workers, and also for those receiving more money. Girl Scrapper Routs Robbers B United /’rm CLEVELAND. 0., June 2.—Nine-teen-year-old Ruth Ludwig routed four robbers from her father's drug store when she defied their guns, and attacked two of them with her fists. Her screams attracted passersby. The robbers fled.

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Committee for Alumni Day at Butler Named

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Florence Renn

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Stegemeler

Hunter

Committee in charge of Butler university's annual Alumni day to be observed Saturday afternoon and night, June 11. includes Florence Renn. Karl Stegemeier and Curtis Hunter, all of Indianapolis. William T. Pearcy is general chairman. A committee of twenty is assisting him. More than 3.000 alumni are receiving invitations to attend the event. Reunions will be held this year by ten classes, those of 'B2, 'B7. '97, 02. 'O7. 'l2. 'l7. '22 and '27. Special reunions at 3 in the afternoon will open Alumni day. A band concert will be given at 5; annual dinner at 6: special stunts at 7. business meeting at 7:30 and formal program at 8. Speaker for the program will be a Butler graduate. Dr. Clovd Goodnight of Bethany college.

RECORD 'DEATH' OF TROLLEY CO. New Firms Promise City Better System. Like an old warhorse that sees the setting sun, the Indianapolis Street Railway Company, laden with sixty-eight years of tramline memories, today made a quiet and unostentatious exit. Final legal arrangements for the "death” of the system were completed Wednesday, with incorporation of two new companies Only nondescript legal phrases, told the story today of the passing of the disabled system that served the city more than half a century. Progress, promised by the two newly incorporated companies, the Indianapolis Railways, Inc., and the Traction Terminal Corporation, is the future of the city's transportation system. The first company has a capital stock of 15,000 shares at SSO each and 120,000 shares no par value, and the second, the traction corporation, has 3.000 shares, no par value, capital stock. Incorporators are Wendell Sherk. Thomas E. Hood and John P. Collett. Sherk. representing bondholders, placed the $2,600,000 bid that bought the system from Receiver George C. Forrey and cleared way for its reorganization. This reorganization will be supervised by Charles Chase, who resigned presidency of the Gary street railway to head the new companies. LIONS' CLUB ELECTS Names C. W. Pensinger as New President. C. Wallace Pensinger was elected president of the Indianapolis Lions' Club at the annual ballot meeting in the Washington Wednesday. Other officers named are. Albert C. Schom. flrst vice-president; Waiter Luther Shir'.ev second • ice-Dresi-oent: Rsloh V. Roberts, third vicc-Drrst-nent: Oien L. Campbell, secretary; Roscoe Conkle .treasurer; L. E Halstead, lion tamer; Lee C. Emmelmann. tail twister: Fr-ri J. Dennv and John E. Cook, directors. The new officers will be installed at the first Wednesday meeting in July.

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THE INDIANAPOLIS TIMES

LESLIE FACES ! BOOMERANG IN SESSION CALL Governor’s Action Is Viewed as Inviting Defeat for G. 0. P. in Fall. BY BEN STERN Opinion that Governor Harry G Leslie has "pulled a Hanly" in issuing the call for a special session of the general assembly on the eve of an election, was expressed by leaders of both parties today. It is known that the highest leaders of Leslie's own party view the call with particular disfavor, and point out that in September. 1908. Governor J. Frank Hanly convened a special session to enact county local option liquor laws. Asa result of this thirteen-day session, the G. O. P. was slaughtered and. through a quirk of circumstance. James E. Watson, the Republican Governor nominee, was defeated. Today Watson is a candidate for re-election to the United States sen- j ate and his friends fear that history will repeat itself. Watson in Dark Washington dispatches declare that the senior senator asserts he was not cognizant of the plan for the extraordinary session until the call was issued by Leslie. Managers of both parties declare the purpose of the session is twofold. The first, they say, is to toss the heat of drawing an acceptable tax equalization program on to the Democratic house, where all tax bills must originate; and, second, that those interests opposing an income tax, but desiring relief only through the slashing of public expenditures and pay rolls, feel that with Leslie using his veto power, they can halt \ any liberal tax equalization legisla- j (icn and still reach their goal. Credit for formulating the plan for the call is given to Henry Marshall. Lafayette publisher, and Leslie's “prime minister,” and other conservative Republican editors. In commenting on the call, Marshall showed his hand with this statement: “I have every confidence in this legislature cutting the cost of government in Indiana." Pressure Too Strong Several months ago Marshall, in a front page editorial written by George Stout, Lafayette editor, it is said, also drew the proclamation, indorsed by a special session for tax equalization. At that time It was known that Leslie could not oppose the pressure that was being put on him. Tuesday afternoon, accompanied by Marshall and Stout, Leslie went to a private room in the Claypoolj and called Ivan C. Morgan, G. O. P. state chairman, from his committee rooms. When Morgan arrived, Leslie, it j is said, held out the call and said. “There it is." It is said that the Governor then declared he could not “stand the pressure.” A special session called for the benefit of the Republican party to lift the onus of the failure of the G. O. P. senate to pass remedial legislation in 1931 may prove to be a boomerang. Recall Leslie Veto Democratic managers in planning their program for the special session will recall that Leslie vetoed the “anti-yellow dog contract” bill, the measure forbidding the use of injunctions in labor disputes; old age pensions, and that he signed House Bill 6, which would have given the utilities complete control of bus operation in municipalities. Similar labor bills again may be introduced and. if defeated by the G. O. P. senate or vetoed by the Re-J publican Governor, on the eve of a campaign, will make political thunder for the opposition. The Democratic house, adhering to its 1930 platform pledges, may reintroduce measures placing a levy on personal and corporate incomes as the only “fair and equitable” method of taxation and let the Republican senate fight it. There also is the possibility that a million dollar unemployment re- i lief bill will be urged by thousands of unemployed. The workers, farmers and small home owners of the state are uani- j mous in declaring for the income ] form of taxation, and it would be >

II Business Is Held Back !by Rate Chaos Regulation of rail rates may be Irksome at times, but it serves one outstanding good purpose; it makes the rail rate a dependable factor in business. Rail rates must be published and strictly adhered to. Every shipper knows what his rate is and what his competitors' rates are and can act l accordingly. This is not the case with less regulated forms of transportation. Some have published rates to which they adhere, but most of them are under no such compulsion. / The results are economic chaos, disA ruption in business, another unstable factor to complicate competition and retard the return of normal times. This much can be agreed: if regulation of rail rates is a good thing, equal regulation of rates for all other transportation is a good thing |Hn Constructive criticism and suggestions are invited. SHIPPERS CAN ' DEPEND ON RAIL SERVICE AND RATES

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Here is Peggy Shannon, clad principally in a beach scarf. The broad stripes are especially smart this year. up to the G. O. P. senate and Governor to defeat, the measure. | • Tie wets are expected to urge a m< dicing whisky bill, with a tax ; on each pint sold. Because of this situation, it appears that, instead of Leslie dump- | ing something on the Democratic house, he will face a boomerang in issuing the call at this time, instead of three or four months ago, political leaders declare. RUM RUNNER TO PEN Carl King Sentenced to Four Y’ears in Leavenworth. Carl King, rum runner and hijacker, Wednesday was sentenced to ! four years in Leavenworth penitentiary by Federal Judge Robert C. Baltzed on his conviction of liquor transportation. King, together with another defendant, Sam Pcndygraft. sentenced :to five years in prison several months ago, was alleged to have engaged in a running gun battle with police. He has been in jail seven months.

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ASSAILS POWER OF CONGRESS Overriding Constitution, Ex-Solicitor-General Says. Congress, by assuming unauthorized power is over-riding the Constitution of the United States, ac-

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cording to William" Marshall Bullitt of Louisville. Ky., former solicitorgeneral of the United States, who addressed the Indianapolis Bar Association Wednesday night. The meeting was held at the Indianapolis Athletic Club. He declared the supreme court should curb the power of congress “If this country is coming to the socialistic doctrine that all. or a greater portion, of a decedents property should be appropriated by the state, then it should say so by constitutional amendment, instead of

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