Indianapolis Times, Volume 44, Number 221, Indianapolis, Marion County, 24 January 1933 — Page 5

JAX. 21, 1933

INCOME TAX TO HIT HARD EVEN IF PAY IS CUT Married Man Discovers His Exemption Is Slashed and Rates Boosted. Thin ! fh* *eronfl nf %ix arlirle* detailing the nrw federal Inromf ta* regula linn* that upward* of three million more citizen* mint meet before March 5. BY ROBERT TALLEY Nk.A Service Writer Washington, Jan. 24 —if you are a married man and you paid income taxes to Uncle Sam last year, set ready to pay perhaps several times as much tax on the same amount nf income under the new law on which you must make your return by March 15. And if you are one of many who took salary reductions in 1932, you may pay still more tax, though your inoom" is smaller. Moreover, many married men who paid no tax at all in 1932 must pay in 1933. The married person’s exemption has been reduced from $3,500 to $2,500 His tax rate has been increased from Vi per cent on the first $4,000 above exemption, 3 per cent on the next $4,000 and 5 per cent on the remainder, to 4 per cent „ on the f-st $4,000 and 8 per cent on the rest. Tax Reduction Eliminated Moreover, the 25 per cent reduction in t_x formerly allowed for “earned income" is no more. The S4OO credit allowed for each child or other dependent remains the same. For a simple illustration, take the case of a married person with no dependents and allow' for last year’s 25 per cent “earned income” credit (mast incomes below SIO,OOO wer in the “earned income’’ class): Set Tax Tax Income I.ast Year This Year 53.0(H) . None S 20 4.000 $ 5.03 0 S.OOO 10.KX 100 1,00 13.00 355 Or, take the case of John Smith, a married man with two children under 18 years of age and a net income of $5,000 a year. $7.88 Tax Now' SOB Last year Smith got an exemption of $3,500 as a married man, plus S4OO each for his tw'o children, or a total of $4,300 exemption. On the remaining S7OO income he paid a tax of 1'• per cent, less 25 per cent credit for “earned income,” or $7.88. This year Smith gets an exemp- > t.ion of only $2,500, plus the SBOO for his two children, or $3,300. On the remaining $1,700 income he will be taxed 4 per cenv, receive no allowance for “earned income,” and therefore will pay a tax of SOB. If, in 1932, Smith’s salary was cut 20 per cent, reducing his annual income to $4,000, on his reduced amount, and under the same setup, lie will pay a tax of S2B. Loses Even on Baby Suppose anew baby had arrived at Smith’s home during the last year. Under the old law' he w'ould have got another S4OO credit if the baby had been born by Dec. 31. Under the new' law the period of the dependency must be prorated; meaning that if the baby was born June 30 Smith can only get credit 1 for half of the year, or S2OO. Let's take the cases of some married men with bigger incomes to sec how' the new taxes work in the higher brackets, where the surtaxes begin to lx- felt. Again, we will use for illustration a married person with no dependents and maximum “earned income” allowance. Not Tax Tax Income Last Year This Year s:mmioo sl. iso .">O,OOO 1,589 8.000 Mrn.OOO 15,109 50.100 >OO,OOO 40,769 80.600 500.000 115,709 203,01 HI 1,000,000 210.709 571,100 On incomes up to SIO,OOO a year, as has already been shown, the tax may increase many times. Above $30,000, the increase is only about twice. The million-dollar-a-year man, whose tax is a little more than doubled, will pay $571,000 now'. Up to 55 Ter Cent Surtaxes, which greatly affect big incomes, began last year at 1 per cent on net incomes of over SIO,OOO and ranged upward to 20 per cent on all net incomes above SIOO,OOO. This year surtaxes begin at 1 per cent on net incomes of over $6,000 and range upward to 48 per cent on net incomes over SIOO,OOO and 55 per cent on all net incomes above $1,000,000. Married persons who are filing for the first time this year, to qualify for the $2,500 exemption must have lived together through- . out the year. Divorcees, widowers and widows don't count. If there was a change in marital status in 1932-—through marriage, divorce or some other cause—this changr in status must be prorated by months and the exemption calculated accordingly. Husbands and wives may file separate returns if they choose and. under certain conditions, this may lessen the tax. Should Divide Exemption For example, if husband and wife should each have a net income in excess of $4,003 but neither a net income in excess of $6,500, it is to . their interest, in filing separate income tax returns, to divide the personal exemption of $2,500 between them. For instance: Husbands income. $6,000, he claims the personal exemption of $2,000. his tax, $l6O. Wife's income $4,500, she claims personal exemption of SSOO. her tax sl60 —total tax. husband and wife $320. The normal tax rate being 4 per cent on the first $4,000 in excess of exemption and 8 per cent on the balance, any other division of the personal exemption would subject part of the husband or wife's income to the 8 per cent rate. The law defines a dependent, for which S4OO deduction from net income may be made, as a child under 18 years of age or a person "incapable of self-support because mentally or physically defective.” The taxpayer must furnish such person with his or her "chief support.” The dependent need not be a relative, does not have to live in your own house. If a child passes the age of 18 during th* year or an aged dependent dies during the year, this change in , status must be prorated by months. Unless the dependent is actually receiving his or her "chief support” from you, it doesn’t count. You may contribute to a church,

‘Custer’s Last Stand’ Is Poignant Memory of Old Saloon Days; Missing in ‘Speakies’

| y Horn rivers In what is now Mon- framed, found its way into m< He commissioned a painter whose Am f ric ® n sal< *J, ns ‘ ... , 414 4 . R " - gk name has been forgotten to make variously as Custers Last Stan A Growing Institution Bar- yU/ a picture on this subject. About ‘Custer and the Indians, a room Art Galleries, an ear i the time the 1896 bock was becoming “Custer's Last Fight.” rawing pper. mature in St. Louis, on March 30, Nine years before prohibition t 4 A the picture was delivered and copytlKrh Ravp Fdvnritp Print - / righted. company discontinued the practi )UoCn bave ravonie Him I** Mr. Busch e ave the original to When the old saloons were clos tn ThmiQanrk nf ' PPIPbPf the Seventh U. S. cavalry, Custer's the lithographs disappeared, tu lUUoctiiuo ui i W&pgP&TTt division. Then he ordered the Mil- Repeal will not bring back the < Hk Patron's . ~ Tail waukee Lithographing Company to pictures. The firm which immorti ino an umo. , ip! %jTW Iff strike of thousands of copies. Hun- ized Custer’s final scrap with t BY' JOSEPH MITCHELL, ! V L V dreds of saloon proporietors who did Indians now is placing huge eli Times staff Writer not sell Busch beer begged for trie signs with clocks over t NEW YORK. Jan. 16.—Nine years copies. streets of the principal Easte r K-v.-,' -u , . It did not matter. The picture cities. efore prohibition there hung in f Ay® j he fly-specked front window or # ver the frosted bar m irror of al- 25 Cltl! WITUIBYS LuOSBII lost every gin mill and saloon in v J/ r r

“A Growing Institution—Barroom Art Galleries,” an early drawing by F. Opper. Busch Gave Favorite Print to Thousands of His Patrons. BY JOSEPH MITCHELL, Times Staff Writer NEW YORK, Jan. 16.—Nine years before prohibition there hung in the fly-specked front window or over the frosted bar mirror of almost every gin mill and saloon in the United States an admirable lithograph showing the hearty, tragic General George Armstrong Custer and his 264 center column riders engaging in their last brave fight with the Indians. A generation of honest, beer drinking citizens remember this lithograph. In their recollection, the highly colored picture stands out as a symbol of the more enjoyable days when dark, ceremonial bock rose up in the April schooner and made a thorough collar and when barkeeps took an honest pride in their products. The lithograph, briefly, is a symbol of their drinking youth, a mnemonic prod to their memories of the days when olugged lager and kitchen sink gin were unknown. Last week a conscientious representative of the New' York WorldTelegram looked over the walls of 129 of Manhattan's best speakeasies and cider-stubcs without finding a single Custer lithograph. He made a futile search through the papers of the prosperous bar manufacturing concerns on the upper Bow'ery. He found many copies of “The Old Drunkard,” the celebrated photograph of a marketman standing

WITHHOLDS VERDICT IN POOR AID FIGHT Frees Man Who Drew Gun in Relief Squabble. Municipal Judge William H. Sheaffer today wilhheld judgment in case of Charles Tyre, 2743 North Olney street, charged with drawing deadly weapons in connection with a fight Saturday witn two men over allotment of food by the township trustee. Tyre, whose wife is an investigator in office of Miss Hannah Noone, Center township trustee, is alleged to have threatened with a gun Jesse M. Green, 41, of 2138 Eastern avenue, and Marion Green, 36, a brother, of 2865 Parker avenue. The two were said to have come to his home to ask Mrs. Tyre why relief could not be obtained for Jesse Green. The argument is said to have started when Mrs. Tyre told Jesse Green, father of thre° children, that supplies are not allotted to persons driving autos, lyre interceded in his wife’s behalf. Jesse Green was driving an auto, police said they learned. FATHER OF 8 KILLED Crushed Beneath Cave-ln of Cement Wall at Crawfordsville. Bn l nitrd I'rest CRAWFORDSVILLE. Ind., Jan. 24.—David Nelson, father of eight children, was killed instantly here Monday afternoon, when he was crushed beneath cave-in of a large cement wall at scene of construction of the new city hall. Nelson, a laborer, was pinned beneath tons of earth and cement and was dead when the body was reached by fellow workers who labored for nearly an hour to remove the debris. The new structure, on South Water street, will house the police and fire departments and the mayor’s office. A Lafayette construction company is in charge of the project. GRANTED $1 DAMAGES Verdict Awarded b;. Jury in §IO,OOO :>uit of (ity Man. Verdict of damages was awarded today oy a jury in superior court two in the vtO.OOO s mt of James S. Phillips of Indianapolis against the Fairway Coffee Company, 37 South Davidson street. In a complaint charging false representation of goods, Phillips averred he sustained loss of 52.500 in purchase of the company's goods in October. 1929. any established charity fund or even to a society for the prevention of cruelty to animals, and deduct such contributions in a total amount not exceeding 15 per cent of your net income. But if you have been giving financial aid to a distressed relative or friend who is out of a job and broke, you can't make deductions for that. NEXT: The income tax on unmarried persers, and how it also has been revised up, up, up.

—Courtesy Old Print Shop. Famous old bock beer sign that was seen in hundreds of saloons in pre-Volstcad days. with a broad smile on his face behind a tremendous glass of beer. He found photographs of Alfred E. Smith, the Spirit of St. Louis, Mrs. Frances Heenan Peaches Browming, and the battleship Oregon. He found photographs of race horses, bartenders, baseball players, chorus girls, politicians and of prizefighters dating back to the pugilistic Sullivan in America. But not one copy of the lithograph. However, much valuable data on the lithograph and on life and barroom art in general was uncovered. And later a copy of the Custer picture was found in the home of Harold Sterner, the architect. In 1896, the late Adolphus Busch, St. Louis brew'er, decided to send a handsome framed picture to each one of the saloons which sold beer made in the vats of the old An-heuser-Busch Brewing Association. He w’as fond of reading about the story of Custer and his fight w'ith the savage Sioux and Cheyenne at the junction of the Big and Little

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THE INDIANAPOLIS TIMES

Copy of the most famous of all barroom paintings, lent by Harold Sterner, an architect.

! Horn rivers in what is now Moni tana. He commissioned a painter whose ; name has been forgotten to make a picture on this subject. About | the time the 1896 bock was becoming j mature in St. Louis, on March 30, ! the picture was delivered and copy- | righted. Mr. Busch gave the original to ; the Seventh U. S. cavalry, Custer's | division. Then he ordered the Milwaukee Lithographing Company to strike of thousands of copies. Hundreds of saloon proporietors who did not sell Busch beer begged for copies. i It did not matter. The picture

25 City Winners Chosen in Cynara Prize Contest

Local Victors Get Theater Tickets and Chance at S2OO Awards. Local winners in the S2OO national “Cynara” essay contest conducted by The Indianapolis Times in connection with the recent showing of “Cyanar” at Loew’s Palace, have been chosen by a movie committee. The essays dealt with the question: Should the wife in “Cynara” forgive her husband? Many men and women readers who saw this picture expressed different view'points on this question. Each of the twenty-five local winners will receive a pair of guest tickets at the Palace, good up to and including Thursday, Feb. 2. Tickets will be mailed at once. Essays of the twenty-five winners will be forw’ard to New York for consideration by the national committee. The w'inners are: Mrs. G. L. Brinkworth. 54 Jennv Lane: Mrs. Victor P. Jones. 515 North Tacoma;

framed, found its way into most American saloons. It was known variously as ‘Custer's Last Stand,” “Custer and the Indians,” and “Custer's Last Fight.” Nine years before prohibition the company discontinued the practice. When the old saloons w r ere closed, the lithographs disappeared. Repeal will not bring back the old pictures. The firm which immortalized Custer's final scrap with the Indians now is placing huge electric signs with clocks over the streets of the principal Eastern cities.

Mrs. Florence K. Thacker. Fletcher Trust building: Mrs. L. J. Todd. 5452 Lowell; Mrs. Robert R. Hare. R. R. No. 17. Box 78: Mrs. Roy Eller. 1108 College: Mrs. Lloyd I. Tucker. 907 North Riley; Miss Pauline LeFevre. 931 Spruce; Mrs. J. E. Neal. 2312 Kenwood: Mrs. D. J. McCarthy. 5033 Washington Blvd.; Mrs. A. B. Smillie. 5828 College: Mrs. Gus Swanson. 1855 West Morris; Mrs. Earl M. Friends. 1219 East Michigan: Miss Esther Valtroit, 34 Hendricks place: Mrs. Blanche Kinsley. 310 East Southern: Mrs. Ruth Hawker. 302 East New' York: Mrs. Madeline Stevenson, 542 North Keystone: Mrs. Charles Williams. 3355 College; T. Koopman. Route 4. box 09. Pendleton: Lester Fisher. 1166 Perrv: George L. Powell. 4543 Madison; J. C Stewart. 123 North Belmont: M. G. McGeehan. 3444 North Pennsylvania: Andrew J. Allen Sr.. 240 West Hampton drive; William L. Peegs. 441 Massachusetts. The judges found that ninety-five per cent of the writers favored forgiveness on the part of the wife. BANDIT ‘HATES’ HIS JOB But Despite That, He Takes sls From Kroger Grocery Clerk. After asserting to his victim, “I hate to do this,” a bandit today robbed Isaac? Morton, clerk in a Kroger store at 3214 East Twentyfifth street, of sls and escaped with a companion in an auto.

UTILITY EYES ON NEW RIVER POWER TRIAL Newton D. Baker Helps in Battle Against U. S. Regulation. BY RUTH FINNEY Times Staff Writer ALEXANDER. Va.. Jan. 24.—Representatives of many of the largest utility groups in the country are gathered in this little Virginia town to watch a battle which may go down in legal annals as the most important in the history of government regulation. Newton D. Baker, representing the Applachian Electric Power Company, today will attack the constitutionality of the federal water power act he once helped administer as secretary of war, arguing that his company should be allowed to erect a power project on New river, free of all federal regulation. Legal Barrier Erected Huston Thompson, special counsel for the government, spent Monday building a legal barrier against this attack. “Legislation of this type had been before congress twenty years before it was enacted.” he said. “I .question whether any other measure had been discussed so thoroughly. “Congress unquestionably has a right to build up a power dam in this river itself, and so it certainly has a right to delegate that power. If it can delegate the power it can supervise the method of exercising that power, and, therefore, the method of building and financing the dam.” Mr. Thompson cited past financial transactions of the Appalchian company, as reported by the federal trade commission, to sustain his contention that the power commission acted reasonably in insisting on regulating the new' river project. Protection for Public “If a company reports a total book value of $72,821,455.20 on one day, and, on the next, a book value of $139,039,848, an increase overnight of $6.6418,192, is it not a reasonable, requirement that some agency of the public see to the capitalization of this project?” Thompson said. “Once you decide the government has the right to recaptu. a project, the government has also the right to fix the terms of recapure. If a company puts figures like these on its books, hasn’t the government a right to come in and protect itself and the public until some state takes over the task?” ENJOINS^TAXJNCREASE Judge Issues Permanent Injunction in Tipton County. Bp T’nilrtl Press TIPTON. Ind., Jan. 24.—A permanent injunction issued by Circuit Judge Glen J. Gifford against County Treasurer Charles J. Riffe, wall block tax collection this year on the 15 per cent increase in valuation ordered by the state tax board for Tipton county farm property.

LORENZ VISITS U. S.

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Having established a world-wide reputation for straightening crooked limbs by bloodless surgery. Dr. Adolf Lorenz, shown as he appeared in New' York upon arrival from Vienna, said it is “unfortunate a method has not been created for straightening out the brains of men.”

SLATE SAFETY RALLIES Scries of Special Lectures to Be Given for Grade School Beginners. Series of special lectures to teach fundamentals of traffic safety to grade school beginners will be sponsored at meetings this week in twenty city schools by the police accident prevention bureau. Meetings scheduled are: Today, Schools 12, 48, 47, 49 and 46; Wednesday, Schools 25, 6, 22, 31 and 35; Thursday, Schools 8, 28, 13, 61 and 18, and Friday, Schools 39, 20, 19, 34 and 72.

WEDNESDAY AND THURSDAY serve the riglit BLA^^TS ■Wrxy'..-MM 100% VIRGIN WOOL y 2 Lb.-$7.50 VALUES Beautiful . .satin. $ 49 PART-WOOL BLANKETS rA - Rep $1 29 Value. Beautiful pat- ■% Wl \TSSHF* flI trrns Good and warm. Slightly bI (j K\uM|| DOUBLE BED SIZE BLANKETS Plaid cotton blanket, new pat- 33c 2ND FLOOR IkT U ill Fil II RUMMAGE TABLE B VALUES TO 25c Scarfs, H iSX'nH'H:'' ET c items too nitmeroms to mention. Seeond Floor 10c High School THEME C TABLETS While they lest Floor SPREADS 4 O Bine. (fold, rose and I p preen. Irregulars. H ■I u While they last... flj Soronri Floor RED HOT SPECIALS FOR MEN I Men’s UNION SUITS 4C p \ Men’s ’Kerchiefs O fllr C 0 ■ Broken sizes. Main Floor. |V* I Main Floor £ H MEN’S NECKTIES 1 ft p 1 Men’s Belts, Mufflers 4 ft- I Main Floor | Ul# \ Main Floor. | (J C ■ | Dress and Work SOX 5c 1 MEN S OVERALLS AQe 1 1 Main Floor V** I Main floor, *T U L ■ I MEN’S GARTERS C r 1 Men's DRESS CAPS QQ I Main Floor I All sizes. Main Floor, ijv* H ■ Men’s WORK SHIRTS 4 Q Men’s DRESS SHIRTS QQ n I | 2 ' POCIC Mk.B fc UtChed ' I %|C I AH sizes. Main F.oor. | COSMETICS N ,J J J I I | A large assort- BM ment of creams. f;l r ,„r"b i'T _ W Ladies’, Orcuiuj Girl,.’ V rum. Witch W Misses m enTetc aStrine ' _ ■ J NEW SPRING M- r,.„, W SPORT OXFORDS WASH AA “r. sl Hr sl S lra FROCKS /He Assorted colors p HI V Se dVe d FI ' r ' ’ ™^RANGE"^pr™ s m?s“ Sc PEANUTS w Tmkhm ■ Second Floor Lb.

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LAW TO HALT VOTE COERCION ASKEDJNHOUSE Fines and Jail Terms Are Provided for ‘Clubbing’ Employes. Echoes of the Roosevelt-Hoover i presidential campaign were heard in the house of representatives Monday, when Representatives Bern B. Grubb cDem.. West Lafayette), | introduced a bill to prohibit vote coercion of employes. Assailing compulsion exerted by ! persons of corporations on their employes to vote for or support any ! candidate or political measure, i Grubb's bill terms the practice po- ; liticai racketeering and fixes fines and jail penalties. Enacting clause of the bill says: “That any act, or any utterance, by speech, written or printed word, sponsored by or for any political party, or by any person acting for any political party, or any one acti ing for himself or herself or for any | other person, group, association, company or corporation, or permit- | ting or sanctioning any such act |or utterance, which shall directly ! or indirectly be intended to. or that has the effect of. coercion, dorninaj tion or compulsion upon any other person to act for, vote for, or sup- | pot any certain prescribed political j measures, or political candidates, political party, group, association, j company, or corporation, or to suf- | fer discharge, loss of employment, | curtailment of employment, or any similar consequence, shall be termed an act of racketeering.” Fine of $25 is fixed for first offense, same fine plus thirty days’ imprisonment for the second offense, and fine of SSO and sixty days’ imprisonment for each succeeding offense.