Indianapolis Times, Volume 47, Number 304, Indianapolis, Marion County, 28 February 1936 — Page 1

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$1,137,000,000 TAX PROGRAM DRAFTED, F. D. R. ANNOUNCES President Makes It Clear He Is Driving- to Restore Budg-et Balance, With Exception of Relief Costs. STRESSES BONUS, AAA DECISION $120,000,000 of New Revenue Needed Annually for Nine Years to Meet Veterans’ Payments, He Declares. liy United Press WASHINGTON, Feb. 28.—President Roosevelt today presented to the nation’s taxpayers a three-point revenue program designed to meet $1,137,000,000 in farm and bonus costs. lie made clear that he intended that Congress should enact new levies to restore the budget to the balance—except \jfor relief costs—which existed before passage of the bonus and the Supreme Court AAA decision. The tax program: 1. Approximately $120,000,000 of new revenue (annually for nine years) to pay additional costs of early soldiers’ bonus retirement. ———

2. $500,000,000 of permanent annual taxation to supplant revenue outlawed by the AAA decision. 3. $500,000,000 to be obtained by temporary taxation possibly spread over three years to reimburse the Treasury for AAA taxes which would have been collected In the current fiscal year but for the Supreme Court decision. Proposes ’Windfall' Tax Part of this latter sum, Mr. Roosevelt believes, will be obtained from “windiall” income taxation assessed against processors of foodstuffs who obtained refunds of impounded AAA taxes after the Supreme Court decision outlawed the New Deal farm relief plan. He estimated “windfall” tax proceeds would be from $250,000,000 to $350,000,000. The President made no definite suggestions as to exactly how the government might employ taxation to recover the processing taxes. Congressional experts were unable to advance suggestions on the subject pending further study. President Roosevelt estimated farm program expenses of the 1936 and 1937 fiscal years at $1,017,000,000. He estimated additional bonus costs at $120,000,000 annually beginning with the 1937 fiscal year. This provided the total of $1,137,000.000. He emphasized that taxes must be imposed to cover these Treasury outlays. Inflation Bloc Aroused However, he made clear also his belief that the exception of the new levy required for the bonus he regarded the tax program as one of replacement—replacement of income which the Treasury had expected but which it lost when the Supreme Court ruled AAA and its processing taxes unconstitutional. Mr. Roosevelt made equally clear that the Administration would submit no specific recommendation on taxes to Congress other than the amount needed, leaving it up to the legislative branch to determine the method of obtaining the revenue. The decision to ask bonus taxes evoked an immediate outbreak by congressional inflationary leaders who anounced determination to force a fight on the inflation versus taxes issue. No Delay, Says Harrison Chairman Pat Harrison of the Senate Finance Committee said he believed tax legislation could be enacted without prolonging Congress beyond the anticipated adjournment date of May 1. “It will take some time,” he said, ‘.’but it won't take so long as to extend the session. "We will try to devise a wise and efficient program in a way that won’t interfere with the business upturn. No definite action will be taken until the President sends up his message, probably next Tuesday or Wednesday.” Senator Arthur Vandenburg (R„ Mich.): “If you hook up a tax program with an emergency program you can raise any amount of money you want to.” HAGOOD PROBE STUDIED Senate Committee Appointed to Determine if Case Merits It. By United Press WASHINGTON, Feb. 28.—A subcommittee of the Senate Military Affairs Committee was appointed today to determine whether to recommend investigation of the removal of Maj. Gen. Johnson Hagood from command ot the Eighth Corps Area. An inquiry was demanded in a resolution introduced in the Senate by Senator Jesse Metcalfe (R., R. I.). TIMES INDEX Births 10 Merry-Go-R’d 21 Books 21 Movies 29 Bridge 18 Mrs. Roosevelt 18 Broun 21 Music 11 Comica 33 Pegler 21 Clapper 21 Pyle 22 Editorial 22 Radio 11 Fashion* 19 Serial Story... 19 Financial 32 i Society 18 Hoosier Editor 22 I Sports 26 Johnson 21 State Deaths .16

The Indianapolis Times FORECAST: Partly cloudy and warmer tonight and tomorrow; lowest temperature tonight above freezing.

VOLUME 47—NUMBER 304

SUN REAPPEARS TO DISPEL COLD Warmer Tonight Predicted; All Rivers Except Wabash Drop. Fair and warm weather in Indianapolis this afternoon followed weeks of flood menace and subzero temperatures. The temperature was 40 at noon, with a further rise expected. It will get warmer tonight and tomorrow, and the skies will be partly cloudy, the Weather Bureau predicted. Meanwhile, the streams in and around Indianapolis have ceased to be a threat. There still is some ice on the streets. Householders along some parts of the river look out on large (Turn to Page Three) STOCKS IRREGULAR; TRADING IS LIGHTER U. S. Bonds Rally After Early Morning Wavering. By United Press NEW YORK, Feb. 28.—Prices turned irregular on the Stock Exchange early this afternoon, and volume lightened. Motors, coppers and oils held firm while rails turned irregular and mail orders, steels and utilities were slightly lower. Automobile production in the last week made a slight gain over the preceding week and outlook was for substantial pickup next week. That presaged higher steel operations and several sections reported gains along with improved buying of steel scrap. In the bond market, United States government issues rallied after early irregularity that was induced by the Treasury's announcement it would borrow $1,250,000,000 on March 15, of which $800,000,000 would be new money. President Roosevelt’s announcement he would seek more than $1,000,000,000 new taxes allayed fears over impairment of government credit and brought buying into the issues. COMPROMISE ON SEED LOAN VETOJS SOUGHT Senate Subcommittee to Confer With Roosevelt on Bill. By United Press WASHINGTON. Feb. 28.—A subcommittee of the Senate Agriculture Committee will call on President Roosevelt today in an effort to reach a compromise on his veto of the $50,000,000 seed loan bill. The decision was reached at an executive session of the committee called by Senator Ellison D. Smith, (D., S. C.), chairman, who served notice yesterday that he would make a motion to override the veto Monday when the Senate reconvenes. The President returned the bill to the Senate Wednesday, terming the amount appropriated too high. GUFFEY ACT ATTACKED ‘Little N’R.V Invasion of State Powers, Suit Charges. By United Press WASHINGTON, Feb. 28. The Guffey Coal Control Act, setting up a “Little NRA” for the bituminous coal industry, was challenged as an invasion on state power in briefs filed today by attorneys for James Walter Carter, stockholder in the Carter Coal Cos., whose attack on the law will be argued before the Supreme Court March 11. DIVIDEND IS DECLARED Indiana Hydro-Electric Cos. to Pay 87Cents Per Shan on March 16. By United Press CHICAGO. Feb. 28.—The Indiana Hydro-Electric Power Cos. today declared a dividend of 874 cents per share on its 7 per cent cumulative preferred stock, payable March 16 tqjptockholders of record Feb. 29.

Danger! iCopyright, 1938. by Science Service) WASHINGTON, Feb. 28. Deadly danger for young research workers in physics lies in wait in their laboratories if they work with the powerful new atom-smashing machines using streams or rays of neutrons. Prof. E. O. Lawrence of the University of California and his brother. Dr. John H. Lawrence of Yale University School of Medicine, have just reported to the National Academy of Sciences here that neutron rays are 10 times as dangerous to the body as are X-rays. Prof. Lawrence is the inventor of the giant 85-ton cyclotron in which neutrons are produced.

2-CENT-A-MILE RAIL RATE SET I. C. C. Fixes 3 Cents for Pullman Travel on U. S. Lines. By United Press WASHINGTON, Feb. 28.—The Interstate Commerce Commission today ordered American railroads to charge passengers 2 cents a mile fares in coaches and 3 cents for Pullman transportation. After an investigation of nearly two years, the commission found that present standard fares of 3.6 cents were unreasonable and ordered the Pullman surcharge eliminated. The commission allowed the railroads to continue charging extra fares on their superservice trains. “Since 1923 the railroads of the country have been suffering severe losses In passenger traffic and revenues,” the commission said in explaining the reason for its order. Numerous Southern and Western railroads have had the 2-cent fare in effect under emergency regulation for some time and have shown strong increases in passenger business. Practically all of these carriers have urged the commissioin to put the 2-cent fare on a permanent basis. The large Eastern railroads, such as the Pennsylvania, the New York Central and others, insisted that their present 3.6-cent charge be continued. They said that their traffic was of such nature that lower fares would not increase travel. After taking all arguments into consideration, the commission ordered the new rates to go into effect June 2, 1936. The commission’s order said that he railroads thereafter would maintain 2-cent fares in interstate transportation with standard equipment both on one-way and round-trip tickets in coaches, and 3 cents a mile one-way and round-trip in Pullman cars. Officials of railroads with offices in Indianapolis today declined to comment on the action of the Interstate Commerce Commission. TEXAS POWER LINES SEVERED IN STRIKE Poles Cut Down; 4 Towns Darkened by Break. It y United Press EL PASO, Tex., Feb. 28.—Violence attributed to strikers disrupted electric light and power service in four towns north of here today. Two “high lines” carrying 6000 and 12,000 volts were served when power line poles, sawed in two, crashed to the ground near Canutillo, Tex. Eight other towns were unaffected and service restored late yesterday, nine hours after a walkout of El Paso Electric Cos. union workers, contir 1 ' .u undisturbed. A makeshift trouble crew guarded by deputy sheriffs was rushed to the scene to repair the break. Meanwhile, the company’s two plants, guarded by company guards and police and picketed by strikers, were manned by skeleton crews of loyal workers who refused to strike. WILSON CABINET AID IS DEAD IN MISSOURI Judge Joshua Willis Alexander Was Commerce Secretary. By United Press GALLATIN. Mo.. Feb. 28.—Missouri today mourned Judge Joshua Willis Alexander, 84, veteran statesman and former member of President Wilson’s Cabinet, who died last night. Judge Alexander became Mr. Wilson's Secretary of Commerce in 1919 after being re-elected to Congress seven times. He was six times elected judge of the Seventh Missouri judicial district. He was born in Cincinnati Jan 22, 1852. 3 CHICAGtfBANDITS ARE NABBED IN GUN BATTLE One Near Death From Head Wound; Two Admit 75 Thefts, Police Say. By United Press CHICAGO, Feb. 28.—Three youthful bandits, one near death from a shot behind the ear, were captured today after a seven-mile running gun fight with police. A pedestrian was wounded. Nathan Duncan. 21. was wounded, and his compjEnions. James Van Zandt, 19, and Edward Tormey, 18, were arrested at their homes. Van Zandt admitted to more than 50 robberies and Duncan to 25, police said. The pedestrian wounded was John Alexander, 37, who was struck in the left shoulder.

FRIDAY, FEBRUARY 28, 1936

RANSOM PAID BY LINDBERGH HUNTED HERE State Convict’s Story of Receiving Part of Loot Probed. HOFFMAN IS INTERESTED Wires Prisoner’s Attorney to 'Keep Me Informed’ on Progress of Inquiry. To the long list of rumors and alleged clews to the missing Lindbergh ransom money, Indianapolis today added another. Police opened a search for funds reported cached in or near the city. Investigation of the story of a convict in the Indiana State Prison was instituted after Gov. Harold G. Hoffman of New Jersey telegraphed T. Ei-nest Maholm, Indianapolis criminal attorney, of his interest in the case. The convict, Everett Comstock, sentenced to 11 years for auto banditry from Shelby Circuit Court is alleged to have told Mr. Maholm he met Dr. John F. Condon Feb. 14, 1932, in Baltimore and that the money was delivered to him later. Claims He Met Jafsie Mr. Maholm wrote Gov. Hoffman: “Recently, I had an interview with a convict serving a sentence of 11 years for robbery, having been sentenced a short time after the delivery of the Lindbergh ransom money. “My client professes to know considerable about this matter, insisting that he, together with another man and woman, "had a conversation with Dr. Condon in the city of Baltimore, on Feh. 14, 1932, after the delivery of the money in the cemetery. “He gave me the names and addresses of two persons in this city who, he claims, now have or should have in their possession a certain amount of this ransom money. * Hoffman Urges Probe “He instructed me to lay the matter before Capt. Radamacher of our Indianapolis Police Department. Please advise me at once your desires in tjie matter.” Yesterday afternoon Mr. Maholm received a reply from Gov. Hoffman saying: "Would appreciate if you would keep me advised progress. If money is found please advise numbers so may check with list in my possession. Appreciate your co-oper-ation and co-operation Capt. Radamacher.” Comstock is alleged to have told Mr. Maholm the money was buried in a Ford tool box under a garage floor “less than 12 miles from Indianapolis.” Refuses to Reveal Place ‘No one can touch that money until I can get out of here,” Comstock is reported to have said. Capt. Herman R. Radamacher today declined to comment. Authorities, it was reported, have known for two years that Comstock had some money buried, but they believed it to be part es the loot taken by him and members of his gang from banks either in Anderson, Ind., or Baltimore. Detective George E. Hubbard went to Michigan City to interview Comstock at that time, but he refused to tell where the money was hidden, it is claimed. Believed West of City The alleged cache is being sought west of Indianapolis, it is said. The alleged contact with Dr. Condon was supposed to have been made at 9:30 the morning of Feb. 14 on Marvland-st in Baltimore. The meeting was by appointment, Comstock is reported to have told Mr. Maholm. Several persons have been interviewed within the last two days in connection with the story, said Mr. Maholm, adding that certain details given him by Comstock had been checked. “I will not personally vouch for the veracity of Comstock, but I believe his story certainly is worth investigation,” he said. Purser Tells Story (Copyright. 1936. by United Press) SANTIAGO, Chile, Feb. 28 Umberto Pastori, former Grace Line purser, said today that a mysterious person whom he remembers as "E. B.” boarded the S. S. Santa Olivia at the Panama Canal seven days after the Lindbergh ransom was paid, deprsited $30,000 with him and told him that “the Lindbergh kidnaper is aboard this ship.” Pastori made an affidavit of his statement, which has been mailed to New York. It is to be turned over to the authorities. Perrone Under Attack By United Press TRENTON, N. J„ Feb. 28. C. Lloyd Fisher, chief counsel for Bruno Richard Hauptmann, said today he was considering swearing out a perjury complaint against Joseph Perrone, taxi driver, who was one of the principal prosecution witnesses at the Lindbergh kidnaping trial. Perrone identified Hauptmann as the man who gave him a dollar to carry a note to Dr. John E. (Jafsie) j Condon during negotiations for payment of the ransom. Gov. Harold G. Hoffman attacked Perrone's testimony yesterday. Child’s Killer Executed By United Press OSSINING, N. Y., Feb. 28.—Francis Flynn, 40. was executed in the electric chair of Sing Sing last night for the murder of 6-year-old Margaret Parloto. He enticed Margaret to his apartment and drowned her in the bath room.

Tokyo Tense as Rebel Troops Hold Out for Military Dictatorship

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Summoned hastily to the imperial palace to join in the emperor’s councils as revolt raged in Tokyo, Prince Chichibu, above, younger brother of Emperor Hirohito, was expected to play an important role in re-establishing order. A career army officer, the prince is extremely popular with all army ranks.

FORT IS CAPTURED, ITALIANS REPORT Mountain Stronghold Is Claimed by Roman Forces. By United Press ROME, Feb. 28. The Italian forces in Northern Ethiopia won another important victory today when they captured Amba Alagi, the mountain stronghold southward of the line established after the recent victory in the Enderta region. The- news was received here with rejoicing. It was regarded as avenging the defeat of Gen. Toselli, commander of the Fourth Eritrean Battalion, who-fought a fierce battle against the Ethiopians at Amba Alagi in 1896. Their overwhelming numbers forced him to retreat toward Aduwa, where he was later killed. NEW RADIO STATION ASKED BY ATTORNEY FCC Receives Petition From Glenn Van Auken. Times Special WASHINGTON, Feb. 28—Indianapolis may have anew radio station if the Federal Communications Commission a sts favorably on a petition now beiore it. Glenn Van Auken, Indianapolis attorney, has asked for approval of anew station, site unannounced, which would be used for daytime programs only and operate on 600 kilocycles. The station would not be in a chain and would give more opportunity for more Indianapolis and Indiana local programs, the petition sets out. Plans call for a $12,000 transmitter, a S2OOO studio and S3OOO miscellaneous expenditures. Mr. Van Auken listed his assets at $81,250, mostly real estate. The wave length sought already is being used on five stations, but none are in or near Indiana, the commission reported. FLOGGING WITNESS PLUNGES TO DEATH Tampa Police Sergeant Ends Life in Dive. By United Press TAMPA, Fla., Feb. 28. Police Sergt. Carl Tompkins, an important witness in the flogging murder of Joseph Shoemaker, labor organizer, leaped to his death today from a third-story window of City Hospital. He was the second witness to die since a mob of masked men flogged Shoemaker and two fellow laborites as they emerged from a police station where they had been questioned about their activities. Both deaths were recorded as suicides. Asa result of the incident, 11 persons, including police officers, have been indicted and now await trial. OIL HEIRESS WILL WED Helen Doherty to Marry Dane in Nicaragua Tonight. By United Press MANAGUA, Nicaragua. Feb. 28. Helen Doherty, adopted daughter of the wealthy Henry L. Doherty, head of the Cities Service Cos., will be married at the presidential palace tonight to Theodore W. Wessel of Denmark.

Entered as Seenud-Clas* Matter at Postoffice. Indianapolis. Ind.

Forcible Action Threatened as Negotiations With Troops Drag Out. CENSORS STIFLE NEWS Martial Law Strengthened With Guns of Fleet Covering City. BY RAY G. MARSHALL (Copyright. 1936. bv United Press) TOKYO, Feb. 28 (10 p. m.).— Martial law headquarters in a broadcast tonight indicated that new compromise efforts with extremist army rebels had failed so far and the situation was unchanged. The entire country was under stringent martial law with a strangling news censorship. Guns of warships, soldiers and sailors dominated the city. In a broadcast to the city, martial law headquarters said the country everywhere was quiet and orderly, that the situation as regards the rebels was unchanged, and—portentously—that the soldiers ot Gen. Kohei Kashii, supreme commander under martial law, were “efficient, in good spirits and prepared to execute all orders of Emperor Hirohito.” The orders were assumed to rhean forcible action against the rebels it they do not capitulate. Regulars Await Orders The district around the Central Hibiya Park was dominated by regular awaiting orders, fed by army kitchens from food “fountains,” the mess outfits, with rack upon rack of food in tiers, providing the fullcourse meals. The Imperial Hotel, which houses many Americans, was in the area under the guns ofHhe regulars because of its proximity to buildings in which rebels still remained. Some Americans, arriving this afternoon, were unable to get into the Imperial Hotel and returned to the port at Yokohama and went to hotels there. To Japan, to the Far East and to the world developments in Tokyo must prove of great importance. The four young army officers who led the revolt of 900 or more soldiers of the Third Regiment, First Division, against an increasing national trend toward liberalism, seek stronger representation for the army —the army’s right Wing—in government., May Mean Stronger Policy Whatever their own fate, suicide by disembowelment or trial and imprisonment, the demands to this extent already have been conceded in recognition of their patriotic sac-rifice-rebillion. This may mean a stronger policy in Asia. The reßels conducted their campaign of assassination in the dark (Turn to Page Three) SHOTS HALT ESCAPE OF 3 OHIO CONVICTS Trio Beats Unarmed Guard in Futile Dash for Freedom. By United Press COLUMBUS, 0., Feb. 28.—Shots from a guard’s pistol frustrated the attempt of three Ohio penitentiary convicts to escape today after they had beaten a 60-year-old unarmed guard at an inside gate. The convicts, Edmund Paulinski, Joe Filkowski and John Davis, ran from a nearby bathhouse where they had been hiding. They had knives made from files, a piece of pipe and a wooden imitation gun. They ran along the stockade toward an outer gate. When a guard started firing, they threw down their weapons and raised their hands. SUPREME COURT ASKED TO REOPEN TVA CASE Alabama Power Cos. Stockholders File Brief on Recent Ruling. By United Press WASHINGTON, Feb. 28.—The Supreme Court today was asked to reconsider its decision upholding the powers of the Tennessee Valley Authority to develop hydro-electric power in the Tennessee River. Briefs were filed for preferred stockholders of the Alabama Power Cos., who brought the recent suit. The briefs argued that the suit should not have been dismissed “under circumstances which so gravely burden and impair the rights of petitioners to free their investments from overt acts under a program that probably is violative of the functions of the Federal government.” By United Press WASHINGTON, Feb. 28.—President Roosevelt is opposed to a Columbia Valley Authority in the Northwest similar to TVA, Senator Charles L. McNary (R., Ore.) said today after a visit to the White House. BILL CONTINUES FARM LOAN INTEREST RATE Measure Reported Favorably by House Agricultural Committee. By United Press WASHINGTON, Feb. 28. The House Agriculture Committee today favorably reported a bill to continue the present three and one-half per cent interest rate on loans under the Federal Farm Loan Act for two more years. The committee rejected a resolution which would have required sub- ! mission to Congress the names of I all persons receiving more than j S2OOO in AAA benefits.

SPECIAL SESSION IS CALLED FOR NEXT THURSDAY General Assembly Summons Is Issued by; McNutt for Enactment of Social Security Laws; 3-Week Session Is Forecast. DISPUTE OVER OLD-AGE PENSIONS Governor Threatens Income Tax Revision if „ 1937 Date Is Fixed for Start of Payments to Persons 65 Years Old. Gov. McNutt this afternoon called a special session of the General Assembly for 10 next Thursday morning to consider social security legislation. The announcement was made shortly after the social security committee adjourned permanently. Democratic caucuses of the Houses are to be held Wednesday night for an explanation of the social security measures proposed by majority committee members.

GAS CO. DEBT DEADLINE FIXED Utility District Announces March 9 as Limit for Obligations. Directors of the City Utility District this afternoon announced that they will refuse to assume any obligations of the Indianapolis Gas Cos. after March 9. Meeting in the offices of the law firm of Thompson, Rabb & Stevenson, the directors said they had no intention of carrying tax or bonded indebtedness burdens of the Indianapolis company after the March deadline. .This was set in the Sept. 9, 1935 agreement when the city took over the Citizens Gas and Coke Utility as a municipal operation. The district directors also indicated that a Federal Court suit may be instituted by them or by the Indianapolis Gas Cos., to settle validity of the contract entered into in 1913 by the Indianapolis company and the Citizens Gas Cos., predecessor of the present utility. SCOTTI, OPERA STAR, IS DEAD IN NAPLES Famed Baritone, 70, Sang Farewell in 1933. By United Press NAPLES, Italy, Feb. 28.—Antonio Scotti, world famous baritone, died here yesterday. First announcement of the singer’s death appeared today in the paid obituary column of a Naples newspaper. Scotti was 70. For many years he was one of the most popular singers at the Metropolitan Opera House in New York, where he made the farewell appearance of his career in “L’Oracolo" on Jan. 20, 1933. Scotti, who has been ill for months, died of heart disease. He was born in Naples, Jan. 25, 1866. He spent his boyhood there. When he retired after a brilliant operatic career he returned to his birthplace to spend his last days. ‘TERRORISM’ CHARGED AGAINST U. S. AGENTS Druggist Hurls Accusations at Alcohol Tax Officials. By United Press WASHINGTON, Feb. 28.—Roland Jones Jr., representing the National Association of Retail Druggists, today alleged “terrorism’’ was used by Federal Alcohol Tax Agents. He opposed before the House Ways and Means Committee an Administration bill for consolidation of Treasury law enforcement units. Jones said he feared that consolidation would mean similar “highhanded” tactics in narcotics law, customs and tax law enforcement. He said alcohol agents “cleaned out” several drug stores for alleged minor law violations and, in one instance, a Philadelphia store was stripped even of linoleum and light fixtures. ADMITS TORCH MURDER Sunday School Teacher Starts Life Term for Wife Slaying. By United Press ITHACA, Mich., Feb. 28—George Blank, 24, Maple Rapids farmer and Sunday school teacher, will begin serving a life term at Jackson prison today for the chloroform-torch murder of his wife, Bernice, an expectant mother. His impassive reserve was broken yesterday when he confessed he struck his wife, chloroformed her, soaked her clothing in kerosene and set fire to their home because she “nagged” him about money. $35,000 Gems Stolen, Is Report By United Press CHICAGO, Feb. 28—Louis Hauser,: 50, New York jewelry salesman, re- • ported to police today that he was kidnaped by three men and robbed j of unset diamonds valued at $35,000.

FINAL HOME PRICE THREE CENTS

His message Thursday morning is to be devoted entirely to social security legislation, Gov. McNutt said. With calling of the session, the Governor declared that if legislators passed bills providing payment of old-age pensions to persons over 65, beginning in 1937, he would insist on gross income tax revision to help bear part of the social security cost. The administration program calls for payment of pensions under the new 65-year limit in 1938. The Governor would make no estimate of how long he thought the session would run. However, majority leaders said they are preparing for a three-weeks session, but “are hopeful of getting through in two weeks.” “I am determined to leave here with a balanced budget, and tax revisions are necessary to defray the additional cost if old-age payments begin in 1937 instead of 1938,” the Governor said. Pension Fight Forecast He made this statement when told that a large group in each house has announced that they will fight on the floor for a more liberal pension setup. When informed of Gov. McNutt’s insistence on gross income tax revision if the pension date is advanced, several Republican members of the social security committee said the minority would demand that the state pay the entire cost of social security. Under the present old-age pension plan, the state is to pay 30 per cent of the costs, the counties 20 per cent and the Federal government 50 per cent. Senator Thomas Hendricks (D., Indianapolis) offered a resolution just before the committee adjourned asking that, the committee recommend that no bills except those dealing with social security be introduced. He withdrew it when minority members refused to bind themselves. House Pledges Sought The joint legislative committee voted last week to start the payment of old-age pensions at the age of 65 on Jan. 1, 1937. The vote was 14 to 7. Two days ago, after considering the gross income tax law amendments and rejecting them, the committee advanced to Jan. 1, 1938, the date when payments to persons 65 are to start. In addition to the appropriation bill to defray the cost of the session, the Assembly will consider three measures designed to permit Indiana to join in the Federal Social Security program and obtain Federal aid. These bills are a general welfare bill setting up the administration for old-age and blind pensions and other welfare work, an unemployment compensation bill and a public health bill providing for maternal and child health improvement. Asa preliminary to calling the session, Gov. McNutt some time ago sent emissaries on a swing around the state to obtain pledges from House members that they would (Turn to Page Three) TALMADGE SEEKS ORDER TO FREE STATE MAIL Letters to Officers Impounded Until Owners Can Be Decided. By United Press ATLANTA, Ga„ Feb 28—Gov. Eugene Talmade of Georgia applied for a mandatory Federal injunction today to prevent Atlanta postal authorities from withholding mail addressed to state fiscal officers appointed by him under a financial dictatorship. The mail has been impounded until postal authorities at Washington can decide the rightful owners. Two ousted officials and their newly appointed successors jointly claim the mail. Talmadge ousted the State Treasurer and Com troller-General for refusal to honor his warrant for funds which they held were not available for his use. MIAMI HOTEL ROBBED Several Thousand Dollars Believed Seized by Resort Bandits. By United Press MIAMI BEACH, Fla., Feb. 28. Bandits held up the Ocean-Front Hotel today and escaped with safety deposit boxes believed to contain several thousand dollars in cash. Neither the hotel nor police would reveal details of the robbery pending an investigation.