Indianapolis Times, Volume 47, Number 309, Indianapolis, Marion County, 5 March 1936 — Page 1

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HOUSE STUDIES 2-YEAR FARM TAX PROPOSAL

Processing Levies on 33 Products Would Raise $442,000,000. 3 SCHEDULES OFFERED Changes in Personal Income Rate, Manufacturers’ Excise Also Suggested. ftu I U'lril Press WASHINGTON, March s.—Congressional tax experts received from the Agriculture Department today a plan for temporary two-year processing taxes on 33 farm products, designed to raise $221,000,000 annually. At the same time Treasury experts submitted schedules showing the amount of revenue which might be derived through wide changes in personal income tax provisions and through a. general manufacturers’ excise levy. The House Ways and Means Subcommittee, which received the income and sales tax suggestions, made clear these were “just suggestions.” Process Tax Received Seriously The processing tax levy, however, received more serious consideration. Such taxes would raise approximately $442,000,000 of the $517,000.000 total which President Roosevelt told Congress the Treasury needed to make up losses due to the Supreme Court AAA decision. The remainder of the Treasury loss would be made up under his suggestions by a tax on "windfall" revenue of processors who received back Impounded processing taxes or failed to pay the taxes. Revenue Estimated at $200,000,000 Maximum revenue from this source was estimated at about $200,000,000 under a 90 per cent grass income tax. Both processing levies and the "windfall” tax would provide $125,000,000 more revenue than the President estimated as the Treasury need. The subcommittee of the House Ways and Means Committee, which is studying the tax situation, now has before it estimates on the taxes propased by the President which would raise $1,041,000,000 in new revenue for one year, $841,000,000 the second year and $620,000,000 thereafter. This contrasted with President Roosevelt's estimate of needs of $792,000,000 annually for three years and $620,000,000 thereafter. The tax plans and new revenue to be produced: Corporate surplus tax averaging 33 1-3 per cent, $620,000,000. Windfall tax. 90 per cent tone year only), $200,000,000. Revised processing tax (for two years only), $221,000,000, Total, $1,041,003,000. Sevrral Proposals to Be Made It. became evident that the subcommittee would receive a variety of tax schedules and proposals from which It would be able to select those for use in the requested tax bill. Treasury experts submitted to the committee alternative proposals to supplant the proposed tax on corporate surpluses. These included various general manufacturers excises. Another table called for a sharp increase in individual income tax revenue by lowering present exemptions on married and single individuals. HOFFMAN SENDS AID TO QUESTION CONDON Governor's Agent Seeks to Mcei Condon in Canal Zone. By I nil' ll Press TRENTON. N. J.. March A representative of Gov. .xarold G. Hoffman now is en route to Panama Canal Zone to attempt to question Dr. John F. (Jafsiei Condon. key figure in the Lindbergh baby kidnaping case, it was learned today. The Governor’s agent, Andrew K. Dutch, state motor vehicle inspector, sailed Friday on the Cunard-White Star liner Georgic. Dr. Condon, the Bronx educator who turned over the $50,000 ransom money to the kidnaper of Charles Lindbergh Jr., and who was one of the state’s leading witnesses in gaining the conviction of Bruno Richard Hauptmann, has been vacationing in the Canal Zone. PUPILS STRIKE WHEN SCHOOL HEAD IS FIRED 4000 Join Walkout; Picket Buildings and City Hall. ftu United Press ALAMEDA. Cal., March 5.—-Pup:, picket,- patrolled three schools i,d the City Hall today in a strike of nearly 4000 high and elementary school pupils who refuse to return to classes until Superintendent cf Schools William G. Padcn is reinstated. Times Index Births 11 : Movies 12 Bridge 15 Mrs. Roasevelt 14 Broun 17 Music 8 Clapper 17 Pegler 17 Comics 23 j Pyle 18 Editorials ...18 Radio 8 Fashions 14 Serial Story 15 Financial 19 Society 14 Hoosier Etinor 18 Sports 20 Johnson . . 17 State Deaths 10 Merry-Go-R and 17 Want Ads 22

ALBERTA STUDIES ITS 525-A-MONJH DREAM-START THE TIMES SERIES ON 'SANTA CLAUS LAND' TOMORROW

The Indianapolis Times FORECAST: Fail- and colder tonijrlit and tomorrow; lowest temperature tonight between 15 and 20.

VOLUME 47—NUMBER 309

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LEAGUE FACES CRISIS THREAT Switzerland May Resign If Oil Embargo Is Ordered. Hi/ United Press VATICAN CITY, Mareh s.—Osservatore Romano, official organ of the Vatican, urged in a front page editorial today ian immediate, just peace between Italy and Ethiopia because "the announced losses of human life in recent battles in East Africa are frightening.” (Copyright, 1936, bv United Press) GENEVA, March s.—Threat of a crisis in the Italian-Ethiopian problem, calculated to force decisive action not only on it but on other European diplomatic problems, confronted League leaders today. Authoritative reports flashed through Geneva that Switzerland had warned that if imposition of an oil embargo caused Italy to leave the League, Switzerland might follow. Reports in Paris and other capitals coincidently dealt with the possibility that Hungary, which is not co-operating in present League penalties against Italy, also might follow Italy out. League delegates were authority for the statement that Dr. Giuseppe Motta, Swiss foreign minister, had warned that his country, the world's traditional neutral in all wars, might in certain circumstances leave the League. British Subjects Killed Hy United Press ADDIS ABABA. March s.—Three British subjects, native boys ol Kenya Colony, were killed when Italian airplanes bombed a British field hospital at Korem, in the northern area, an official communique asserted today. It was believed that some patients had oeen killed, the communique said, but no Britons were victims.

ROOSEVELT SWAMPS TALMADGE IN POLL President Scores S-to-1 Victory in Georgia. Ry t'nitrd Press WASHINGTON. March s.—The conservative Democratic campaign to stop Roosevelt echoed today from Georgia and Maryland, pre-conven-tion battlegrounds. A snap primary in southwestern Seminole County, Georgia, gave the first pre-convention prize to the New Deal. President Roosevelt polled a 5-to-l victory over Gov. Eugene Talmadge. who has promised to raise 1.000.000 Southern bolters and "bust the New Deal.” Col. Henry Breckinridge, New York lawyer who served in the Wilson Administration little cabinet with Mr. Roosevelt, opened his presidential primary camp n in Baltimore last night. The Georgia poll in which Mr. Roosevelt swamped Talmadge was ridiculed by the Georgia Governor. He said it was a surprise poll and had cancelled two scheduled county primaries because of fear the returns would go against Mr. Roasevelt. Seminole County hitherto has been strong Talmadge territory. Yesterday’s vote: Roosevelt, 66i; Talmadge. 120.

WAITING!

Dog’s Life A brown Chow dog. who for months has been meeting and challenging fast passenger trains coming in from Cleveland on the Big Four as they pass the intersection of Mass-achusetts-av and Dearborn-st, is limping today, but apparently is undaunted. Early today he caught his foot between two planks that bridge a ditch near there, about eight feet from the tracks and began yelping for help. Police and the tower watchman released him. after he had offered to bite them.

WINTER BACKTRACKS; MERCURY WILL DROP Temperature o’ 15 to 20 Is Predicted Tonight. A return engagement of winter is predicted for tonight and tomorrow just to take you down a peg or two in case you thought spring was here to stay. Temperatures tonight are to be between 15 and 20. and although tomorrow is to be fair, it is to remain colder. It was 40 at 1 this afternoon. Dust Storms Foreseen By Science Service WASHINGTON. March s.—Renewed warning that dust storms may again be expected if rain does not fall in the Southwest’s “dust bowl” was issued today by the Weather Bureau, in its weekly summary of weather and crop conditions. In some sections, it was reported, “conditions are more favorable now for dust storms than at this time last year.” SILVER. MERCANTILE SHARES SHOW GAIN American Smelting Hits New High in Irregular Market. Ity United Press NEW YORK. March 5. Silver shares, mercantile issues and special stocks were prominent on the upside in an irregular stock market this afternoon. American Smelting reached anew high at 71U, up 2' s , in the silvers. Spiegel, May, Stern jumped more than 3 points in the mail order group, where Montgomery Ward was the active favorite. Case was up 3 in the farm shares. Union Pacific and Atchison continued to feature railroad shares after an early runup. Motors were firm. INFLUENZA INCREASES IN SOUTHERN STATES Total More Than Trebled in February, Health Service Reports. By Science Service WASHINGTON. March 5. A rising tide of influenza in the South —with total cases reported more than trebled in February—is the picture obtained from figures just prepared by the Public Health Service. Cases reported from Alabama have nearly doubled each week for the last four weeks—an increase of almost eight times. South Carolina and Georgia, with Alabama, are the high spots of the current influenza increase. On the national scale total influenza cases for the week ending Feb. 29 showed a drop of 98 from the 11,613 of previous week.

THURSDAY, MARCH 5,1936

STRIKE PEACE EFFORTS FAIL 14-Hour Parley, Called by La Guardia, Ends in Disagreement. By United Press NEW YORK. March s.—James J. Bambrick, leader ol New York's fi\e-day elevator strike, threatened today to "take the lid off" and extend the walkout throughout the metropolis unless real estate owners agree to submit s he strikers’ demands to arbitration. In a 15-hour conference at city hall which ended in a. deadlock at 4 a. m„ the strikers withdrew their demand for immediate acceptance of proposals for higher wages and shorter hours, and agreed to submit the issue to arbitration. Bambrick said the union would “fight to the finish" on the arbitration issue. The building owners, represented by the realty advisory board, refused to arbitrate. General Strike Called By United Prrss HARRISBURG, 111., March 5 A general strike called by Progressive Miners of America in Saline County, hub of the southern Illinois 'coal belt, halted work in 10 mines today and threatened to shut down business houses. Between 3500 and 4000 embittered coal miners stayed away from the pits in protest against alleged importation of outside labor to work the Peabody Coal Cos. mines under a United Mine Workers contract. Approximately 1800 Works Progress Administration workers also halted their labors, bringing the total layoff in observance of the strike to more than 5000. WABASH WATERS RISE Threaten to Destroy Wheat Crops, Flood Thousands of Acres. By United Press MT. VERNON. Ind.. March 5. Rising waters of the Wabash threatened to inundate several thousand acres of farmland today, destroying wheat crops and resulting in major losses to farmers throughout Posey County.

Governor’s Message Lauded, Criticised

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This picture was taken just before Gov. McNutt delivered his message to the jojgit session of the Senate and House in the chamber of the House of Representatives. (Left to right) Omer Stokes Jackson. Democratic state chairman; Lieut. Gov. M. Clifford Townsend, Gov. McNutt and Edward H. Stein. Speaker of the House.

M’NUTT URGES SECURITY LEGISLATION BY APRIL 1

McNutt Highlights WITH some of the provisions I am not in accord, but I recognize the fact that these measures cover certain controversial points and represent the considered judgment of the members. a a a a a a The state budget must remain balanced. a a a a a a I heartily favor the payment of old-age pensions to those 65 and over and recommend that the age limit be lowered to 65 as soon as our resources permit such action, but not betore. a a a a a a , T''o accomplish its high purpose, the social security program must -1- rest on a sound financial basis. It is a good rule for individuals and governmental units to measure committments bv ability to pay. ****** tt tt tt ' It is estimated the total annual expenditures for assistance will amount to $14,850,000. of which the state will furnish $4,980,000, the counties, $3,120,000 and the Federal government $6,750,000 a a a a a a It is highly desirable that your action be taken and approved bv the Federal agencies before April 1. aaa a a a The unemployment compensation program contemplates, but ooes not require, state action. a a a a a a TT is obvious that the adoption of a state unemployment compensax tion program will be advantageous to those who now are subject to provisions cf Mie Federal act. a a a It is one thing to meet, such a devastating emergency (the depression). It is a far greater thing to prevent such catastrophes in the future. Such is the purpose of this social security legislation.

Stalin Warning Is Studied; Hirota to Lead Japan

Says First Job Will Be to Adjust Foreign Relations. By United Press TOKYO, March s.—Koki Hirota, a moderate, who knows intimately Japan's great neighbors—Russia and the United States—announced today that his first consideration in forming a cabinet would be adjustment of foreign relations. Regarding army discipline, he said the officers would use their own methods of accomplishing it. The cabinet was expected to be completed tomorrow afternoon. A reliable source said the following had been chosen: Shigeru Yoshida. foreign; Hisaichi Terauchi. war; Admiral Osamu Nagano, navy; Naoishi Ohara, justice. Terauchi and Nagano represent the “solid opinion” of the army and navy. MYSTERY ‘KICKLESS’ GUN TESTED BY U. S. Powerful Weapon Developed by Army, Navy. (Copyright. 1936, by United Press) WASHINGTON. March 5. Development of anew mystery "kickless” gun expected to drive hostile aircraft out of the sky and to make land tanks ineffective, was revealed today. The gun is being developed under conditions of the strictest military secrecy by the Army and the Navy. The Navy Department has constructed one or more and reports of numerous firing tests have been highly enthusiastic. The army ordnance is studying a similar gun as an anti-aircraft weapon, anti-tank gun, and for general rapid-fire purposes. The gun shoots a cartridge more than a fore long and a projectile three inches long, one and one-tenth inches across, filled with high explosive. It operates as a machinegun. firing up to 150 times a minute. The projectiles, weighing just one pound each, are fitted with fuses so sensitive that they detonate the high explosive when they strike anything more solid than air.

Russian Dictator’s Views Discussed by Officials of All Nations. By United Press The interview which Josef V. Stalin gave to Roy W. Howard, chairman of the board of the Scripps-Howard Newspapers, warn • ing Japan of the danger of war if she invades Mongolia and accusing Germany of aggressive ambitions, was a subject of official discussion throughout the world today. The interview occupied a prominent place in the press of Russia, Britain, France, the United States, Canada, Japan, the South American republics and most other countries. In Germany and Poland it was suppressed. Official reaction was restrained in Tokyo, although a foreign office spokesman intimated he thought Stalin was "bluffing.” The interview was regarded by French officials as of the utmost importance and an official spokesman characterized it as the first time Stalin has defined Russia's attitude toward the rest of the world so closely. The interview was given to the entire Soviet press as an official foreign office communique in ques-tion-and-answer form. 'Provocative,’ Is Claim By United Press LONDON, March s.—“ Stalin has no right to pre-suppose before the whole world that Japan is going to attack Outer Mongolia, said a Japanese embassy spokesman today, discussing an interview which Josef V. Stalin, Soviet Russian leader, gave Roy W. Howard, chairman of the board of the Scripps-Howard Newspapers. “The statement is provocative,” the spokesman said. “Japan has not attacked Outer MongoUa.” Morning newspapers all displayed the interview prominently. Headlines gave an indication of their reaction: News Chronicle—“ Stalin Gives Japan Clear Warning.” Daily Mail—“ Stalin’s War Warning.” Daily Express—“ Stalin Warns Japan: Hands Off Mongolia.” Daily Sketch—“ Stalin Warns World of Its War Peril.”

Entered ns Ser onr]-Cla Matter ■ t I’ostoffiee, Indianapolis. Ind.

Assemblymen Follow Rigid Party Lines in Comment on Address. •POLITICS.’ G. 0. P. CLAIM Weil Summed Up, Reaction of Democrats in House and Senate. Reaction to the address of Gov. McNutt today before both houses of the Indiana Assembly, meeting- in special j session, was along strict party lines. Democrats, except for a few who favored minor changes, were united in lauding the message and in indorsing the Governor's advocacy of | a comprehensive program of social security. Republicans were critical, many referring to it as a "political speech.” Representative comment follows: REPUBLICANS Rep. Glenn Slenker (Monticello) —lt was a good political speech but i does not take care of the large number of old people, i Rep. Herbert H. Evans (New- ; castle)—A lot of misrepresents- ’ tions in the speech about the state being out of debt. He misrepresented when he said farm products have increased 100 per cent j and he never said a word about | the high cost of living. If we have a $10,000,000 surplus what is the need for the Governor calling this special session. He has the power to act ana to use that surplus. I’m interested more in what the Governor did not say than what he said. “Close Political Appeal” Rep. James M. Knapp (Hagerstown)—l have nothing to say now. I may have something to say later today. Rep. Joseph A. Andrew (Lafayette)—He explained the program satisfactorily. The close was a political appeal. The Governor’s claims will not be borne out by the facts. Rep. J. Blair Mills (Lynn)—l am in favor of a reasonable old-age pension bill. I'm not sure about the Governor’s bill. Rep. Chester Parker (Pittsboro)— He presented the subject well. lam not sure of the program in its entirety. “Some Broad Assert ions” Rep. Fred Goodard (Rushville)— The Governor made some pretty broad assertions on unemployment. Rep. Harry Shull (Auburn)—He gave a fine picture, but the unemployment insurance takes in only a small part of the labor in Indiana, and that is an unsatisfactory condition- As for old-age pensions, I would give them to every one of certain ages except those of large incomes. I favor making the pension respectable. “Victory Claims Unfounded” Rep. Richard James (Portland— Merely a pleasant sounding speech of generalities. It was not as detailed and technical as I had hoped for. His closing words were purely 1 political and his claims of recovery were unfounded. Rep. K. K. Dillev (Loogootee)— Just a nice little political confab and a good job of passing the buck to the Legislature. Rep. Bert B. Mayhill (Delphi)—! It was ably delivered by one of the nation’s foremost orators and that’s! about all I can say for the speech. Questions Jobless Figures Rep. Robert A. Hoover (Goshpn) —l’d like verification of figures which he used during his speech. I question especially his unemployment figures. Rep. Roy J. Harrison (Attica)— The speech was just a dirty dig at the Republican Party, especially when he referred to conditions ir 1933 m reference to present condi tions. “Just a Stump Speech” Senator Albert Ferris < Milton)— was essentially a stump speech whic attempted to create the impression that the earth was without form and void before March. 1933, and that the Democrats said. “Let there be light,” and there was light. Senator Lawrence E. Carlson •Huntington)—lt is a clear exposition of the bill as introduced, but I don't like the manner of handling it. Senator Will R. Brown (Hebron —lt was a good speech, but I don't believe in the way he proposes to handle welfare. I think administration of welfare, especially oldage pensions, should be with county commmissioners. DEMOCRATS Rep. Martin T. Krueger (Michigan City)—The speech does not need comment for it speaks for itself. Rep. William A. Gutzwiller (Bedford)—lt was a good speech. I liked that portion in which he referred to the need for keeping the budget balanced. Rep. John Napier Dyer (V’incennes)—l thought his was a very able speech, and a clear presentation of the subject. Rep. Morris Coers Despite this speech. I still think the age limit should be 65. I am going to fight for that. Our old people have asked (Turn to Page Three)

FINAL HOME PRICE THREE CENTS

Governor Outlines Objec* tives of Program, Asks Prompt Action. RECESS IS ORDERED Introduction of Measures Is Scheduled for This Afternoon.

Complete text of Gov. McNutt’s message is on Page Photos are on Pages I and 11.

Members of the Seventyninth General Assembly met in _ : ”i session today, heard Gov. McNutt’s recommendations for accomplishing its social security objectives and recessed to 2 p. m. when two of the three social security measures are scheduled for introduction. Both houses are to consider the security bills. However, the House is to take up the child welfare bill, and tlTe Senate is to take up the public health and unemployment insurance measures, if revisions in the insurance bill are completed in time. It was announced that phraseology changes are being made in the insurance measure. The House is to appoint anew committee for renewed consideration of the child welfare, health, ways and means and joint legislative committees. The $35,030 appropriations bill for the expense of the session also was to be introduced this afternoon in the House. Reaction Is Varied Reaction to the Governor's personally delivered message to a joint session of the assembly was varied and along strictly party lines. The Governor was given an ovation when he entered the House chamber and when he left. The most marked applause during his speech came when he referred to the fact that there is an excess of $10,000,000 now in the State Treasury and that no new taxes will be necessary, at this time, to finance the contemplated program. There was a likelihood that the "home rule" welfare bill drawn by Senator Leo Smith <D, Indianapolis) and backed by the powerful (Turn in Page Three)

FARM SENTENCE GIVEN TO STIMULATE MEMORY 1 Jesse Hatcher Forgets Other Days Spent in Confinement. Municipal Judge Dewey E. Myers today sent Jesse Hatcher, °4. Negro, 809 Blake-st, for a 120-day therapeutic stay at the State Farm. Expressing concern over Hatcher's i loss of memory, Judge Myers sent him back to the farm in the hope he might recall the previous time! he had been there. Charged with drunkenness Hatch* er denied having served time, and then, faced with the record, said, “I don’t remember it, judge.” MINNESOTA CONVICTS BREAK HUNGER STRIKE Higher Pay, Faster Parole Action Demanded in Revolt. tl;i United i’rrn ST. CLOUD. Minn.. March 5.— A hunger strike of 1000 Minnesota Reformatory convicts here was believed broken at breakfast time today when many inmates who had not eaten for 40 hours accepted food. The strike began Tuesday noon. Demanding higher pay, faster action on paroles, and longer visiting hours, the convicts rose from their dining room tables and dumped their food on the floor. CITY DROPS CHARGES Suspects Are Under Indictment for Auto Banditry, Robbery. Robbery and auto banditrv charges against William Reid. 3926 W. Mor-ris-st. and Earl Wood. 439 W. New York-st, were dismissed in Municipal Court today when detectives said the suspects were indicted on similar charges by the Marion County Grand Jury yesterday. Reid is alleged to be a member of an interstate auto banditry gang. DOG OWNER IS FINED lacked License for Chow That Caused Police Officer's Accident. Theodore Passin. 1367 Tuxedo-st, owner of a chow dog that forced Patrolman Roy Losh to be thrown from his motorcycle yesterday, was fined $1 and costs in Municipal Court today on charges of failure to have a deg license. The dog ran in the path of the vehicle at Ewingst and Nowland-av. Officer Loshs condition was described as "fair" today.