Indianapolis Times, Indianapolis, Marion County, 11 April 1938 — Page 2
ROOSEVELT AND
"AIDS AGREE ON
‘ 4
:
HELE FU
RFC’ Bill Waits Signature; Wage Measure Thought or Doomed.
(Continued from Page One)
tions with net incomes of more than $25,000. In order to benefit the “little business” mfian with a net in-
come of $25,000 and less, it provides
a credit of 10 per cent of the difference between the actual income and $25,000 in computing the taxable income. : < The. House revision of the profits tax provides that corporations with net incomes in excess of $25,000 must pay a rate of 20 per cént, but gives a credit of four per cent of dividends distributed. If all the profits were distributed the rate could be reduced to 16 per ceht. The House bill provides that corporations with net incomes of less than $25,000 are exempt from the undistributed profits tax, but must pay 12% per cent on the first $5000; 14 per cent on the next $15,000, and 16 per cent on the remainder.
Supreme Court Denies
Dr. Townsend Review
WASHINGTON, April 11 (U. P). —The Supreme Court today closed the last legal avenue through which
Dr. Francis E. Townsend, old age
pension” advocate, sought to avoid a 30-day jail sentence imposed for conviction on charges of contempt of a House committee. The court rejected a petition by Dr. Townsend for review of his conviction. Only executive clemency now can save him from serving the jail sentence. The court also: Declined to review a Federal decision holding unconstitutional the
~ Bankheady Cotton Control Act, re-
aled by Congress after Supreme ort invalidations of the Agricultural Adjustment Act. Ordered a new trial for Joe Hale, Kentucky Negro under sentence of death for conviction of murder, on grounds Negroes were systematically barred from juries. Agreed to consider the question of whether intercollegiate football is “an essential governmental function” or a “gigantic commercial activity.” Accepted for review another chalfenge of ratification of the proposed Federal Child Labor Amendment— this one involving Kentucky's ratification. A review of Kansas’ ratification had already been accepted. Reversed an Indiana Supreme Court decision rejecting the suit of
' Myrtle Hamilton Valentine to com-
pel James F. Marker, as trustee of Van Buren Township, Pulaski County, Indiana, to continue to employ her as a teacher. The Indiana decision was rendered on basis of the recent suit of Dorothy Brand, in which the high court on Jan. 31 ruled that Indiana teach-
- ers enjoyed permanent tenure of of-
fice under the 1926 Teachers Tenure Act: despite 1933 amendments which the State Supreme Court construed as abrogating permanent tenure.
RFC Bill Waits
Roosevelt Signature WASHINGTON, April 11.—One of the largest grants of power ever made by Congress to a peacetime agency is given to the Reconstruction Finance Corporation, headed by Jesse H. Jones, in the $1,500,000,000 industry-loan bill which is before President Roosevelt today for signature. Many safeguards and limitations imposed by Congress in the 44 prevous laws dealing with the RFC are dropped in the new Glass bill, just cleared by Congress without protest or extensive debate. Senator Glass (D. Va.) and RFC Chairman Jones drafted the bill to provide a fund for industry loans,
. and rushed it through committee
and the Senate as an emergency measure. It was understood their haste was caused by word that officials of the Securities and EXchange Commission were preparing a substitute bill designed specifically to aid “little business.” As passed, the bill does not limit the term of loans, the total amount of loans, or the amount loanable to
- any. one borrowers, and it omits a
previous - requirement that loans provide “reasonable assurance of continued or increased employment of labor.” Another restriction eliminates the previous limit of $500,000 on any loan to a single industrial borrower.
Shipyard Bids Rejected by U. S.
WASHINGTON, April 11 (U. P.). —The U: 8. Maritime Commission,
- having rejected construction bids on
eight of 12 standard steel cargo vessels, gave shipbuilders another chance today to cut their prices. The: first bids were rejected because they were too high to permit operation of the vessel “as a com-
- mercial proposition.” The Commis-
sion requested new bids for construction of 12 ships of the same type.
Manufacturers Fight
Wage-Hour Bill WASHINGTON, April 11. — The National Association~of Manufac-
, turers today put the wage-hour bill
first on a seven-point “must not” list which it thinks Congress must sidetrack “to clear the way for re-
covery and re-employment.” If you are poisoned by
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Text of F. D.
~ Congress on Railroads
R. Message to
WASHINGTON, April 11 (U. P.).—Following is the text of President Roosevelt's special message to Congress recommending railroad legis-
lation: To the Congress of the United
| States:
During the past month I have consulted with a large number of
individuals on the increasingly difficult problem of our railroad transportation. As the Congress is aware, the relationship of the Federal Government to the railroads has been for 50 years through the medium of the Interstate Commerce Commission. This distinguished body was originally set up with the primary purpose of ending serious abuses on the part of the carriers, such as rebating and cut-throat competition. . . i As the years went by the Congress from time to time ‘has extended the authority of the Interstate Commerce Commission, vesting in it other quasi-legislative and quasi-judicial powers and giving to it also a number of purely executive functions. While the -latter powers are, in all probability, unconstitutional in that they create executive authority in a fourth branch of the Government instead of in the President, I do not at this time raise that issue because for the present it is more important for all of us to co-operate in preventing serious bankruptcies among a large number of railroad companies, great and small.
ASKS FOR REPORT
I invited Chairman Splawn of the Interstate Commerce Commission and Commissioners Eastman and Mahaffie to present, somewhat hurriedly and informally, recommendations relating to this serious situation—and I have kept the chairmen of the Appropriate Committees of the Senate and House of Representatives informed of the report. Summarized, the three members of the Interstate Commerce Commission recommend as a means of immediate relief the following: 1. That approximately $300,000,000 be made available from Government funds for the purchase of railroad equipment, the equipment to be the security for the advance. 2. That for 12 months the Reconstruction Finance Corp. be empowered to make loans without certification by the Interstate Commerce Commission that the railroad can meet its fixed charges. 3. That other forms of Government credit be considered from the point of view of public policy. 4. That Government traffic pay the full rate by eliminating land grant reductions. 5. That the Commission does not feel justified in expressing an opinion for or against reduction of railroad wages. 6. That reorganization procedure under Section 77 of the Bankruptcy Act receive the attention of the Congress, and they suggest cone sideration of the establishment of a single court in charge of reorganizations.
SEEKS CO-ORDINATION
The long-term program suggested by the commissioners includes: 1. That a Federal transportation authority be created for two years to“plan and promote action by railroad companies to eliminate waste, aid consolidation and co-ordina-tion. 2. That the Interstate Commerce Act be amended to broaden the powers of the commission with respect to pooling of earnings or traffic, to eliminate “the consolidation plan” and to approve unifications: that the authority be permitted to intervene in such proceedings before the commission, and make recommendations through the commission to the President and the Congress. ? — 3. That the authority investigate economy and all types of transportation, encourage special fitness and abate destructive competition. 4, That attention be given to railroad financial abuses now under investigation. The full report of the three members of the Interstate Commerce Commission is transmitted herewith, and I am transmitting also certain comments which have been made by others with whom I have talked: (A) Letter to the President from the Secretary of the Treasury, March 25, 1938. , (B) Letter to the President from the chairman of the Reconstruction Finance Corp. March 28, 1938. (C) Letter to the President. from the chairthan of the Securities and Bichange Commission, March 28, -(D) Memorandum to the President from Assistant Secretary of Commerce Ernest G. Draper, March
from the Administrator of Farm Security, March 31, 1938." (F) Memorandum to the President
from Henry Bruere, president of the
(E) Memorandum to the President |-
Bowery ' Savings Bank, New York City: = ° : '(G) Memorandum to the - Presi= dent from J. J. Pelley, president, Association of American Railroads, April 4, 1938.
(H) Letter to the President from
George M. Harrison, president Brotherhood of Railway and Steamship Clerks, April 3, 1938. : (I) Statistical data from the Interstate Commerce Co on relating to revenues and expenses of transportation in the United States in the year 1936, separated between types of transport.
PROBLEMS ACUTE
Insofar as information in regard to the railroad problem is concerned, there is probably no other subject to which the Congress, year after year, has devoted more study or ‘obtained more information. The troubles of the railroads are not new but they have been getting, on the whole, steadily more difficult since before the World War. It is true that a. general upturn in business would undoubtedly help to keep many railroads from actual receivership. But it is also true that resumption of traffic at last year’s level would not solve their growing difficulties permanently.
Securities and Exchange Chair-
man William O. Douglas urged even broader RFC loans, to provide roads not in receivership or: bankruptcy with funds up to 3 per cent of the value of their property to meet fixed charges. He proposed loans of not less than $800,000,000 for the next
| 12 months for rehabilitation, equip-
ment expenses, etc.
Assistant Secretary of Commerce Ernest G. Draper suggested that more inducement be given roads to increase expenditures for new equipment. President Henry Bruere of the Bowery Savings Bank, New York City, was highly critical of the proposals as being “not adequate to meet the needs of the present emergency.” He asked a compulsory Government program for rail reorganization and consolidation. ~~ “The railroads,” he said, “have had years of opportunity to put their ‘houses in order’ and have failed to do so. Indications are that a rearrangement of physical facilities and the stabilization of the industry will not be done except under Government compulsion.” He said the emergency relief program would not prevent further rail bankruptcies. He said that if enforced consolidations were authorized the Government might guarantee interest on funded dept of carriers not now in bankruptcy and advance funds for consolidation purposes. He said that more loans to carriers without a plan to put them permanently on an economic basis would be unsound.
OPPOSES SUBSIDIES
4
Most 'of us have definite objection to Government subsidies to the railroads to enable them to meet the interest on their outstanding bonds or for any other purpose, and most of us also oppose Government ownership and operation of the railroads. I do. The suggestions made by the three members of the Interstate Commerce Commission should, of course, be read in the light of comments thereon made in the letters appended thereto. I ask your special consideration of the fact that matters relating to transportation in its wider sense are now dealt with by the following departments or agencies of the Government: : 1. The Bureau of Public Roads of the Department of Agriculture. 2. The Bureau of Air Commerce of the Department of Commerce. 3. The United States Maritime Commission. : 4. The division of Transportation of the Bureau of Foreign and Domestic Commerce of the Department of Commerce. 5. The Interstate Commerce Commission. 6. The Lighthouse Service of the Department of Commerce. 7. The Bureau of Navigation and Marine Inspection of the Department of Commerce. These agencies deal with special phases’ of transpor‘ation rather than the transportation problem in its broader national aspect. Some of the functions are executive, some are legislative, some are judicial. From the point of view of business efficiency, such as a private corporation would seek, it would seem to be the part of common sense to place all executive functions relating to all transportation in one Federal Department—such as the Department of Commerce, the Department of the Interior or some other old or new department.
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[FIVE PER GENT | CIRCLING
JOBLESS HERE IN NOVEMBER
U. S. Census Reveals 22,400 Were Idle, 7750 on Emergency Works.
Final tabulations released today in the Federal Government's November unemployment census in Indianapolis showed that 22,400 registered as totally unemployed and 7150 as emergency workers The number of persons registering as totally unemployed and others as working under Federal emergency agencies was 380,150 or 16.2
per cent of the 186,667 listed under assifications in the.
these two cl state. ened i | The total registered as jobless throughout “the state was only 5.4 per cent of the 3,474,000 persons estimated to make up Indiana’s population as of last July 1. Final analysis’ of the reports showed that 26.3 per cent of the totally unemployed were between the ages of 15 and 24 and that 47.9 per cent were between the ages of 15 and 34. The balance was over 34. No Other Workers in Family
The report for Indianapolis disclosed also that 382 per cent of the totally unemployed had no
other workers in their families. Of the males registered in the unemployed’ class here, 429 per cent were the only workers in their families and of the females, 282 per cent, fon The total number of persons who registered here as totally unemployed included 15,445 who had no income during the week before registering and 6230 who said they had had no work during the 12 months preceding the census. In Indianapolis those over 44 years of age who registered as either totally unemployed or as emergency workers numbered 8385. The registration of unemployed over 44 years throughout the state numbered 43,171.
29,000 Payless for Year
Of the persons throughout the state listed as unemployed, 90,266 said they had no income during the week preceding the census and 29,125 said they had earned no pay during the 12-month period preceding the survey. The state registration showed that 97,708 or 73.3 per cent of the totally unemployed were males. Final tabulations on South Bend showed 4730 registered as totally unemployed and 1474 as emergency workers. Evansville’s official report showed 5749 totally unemployed and 2081 emergency workers. ; In Gary, the state’s steel mill center, 6300 filled out cards saying they had no employment and 1664 said they were emergency workers.
JUSTICE HUGHES IS 76
WASHINGTON, April 11 (U. P.). —Chief Justice Charles Evans Hughes of the Supreme Court celebrated his 76th birthday today. He planned no special celebration but will take his place, as usual, on the bench when the Court meets at noon for its regular Monday session. In February, Justice Hughes celebrated his eighth year as chief justice.
At the same time all quasi-judicial and quasi-legislative matters relating to all transportation could prop-
erly be placed under an independent | :
commission—a| reorganized Interstate Commerce Commission. And such action would be highly constitutional. fo I refer to this, not by way of recommendation, but only as one method which should receive Gongressional study.
been possible for the Congress to make any and all studies for permanent solution of the railroad problem, some immediate legislation is, I believe, necessary at this session, in order to prevent serious financial and operating difficulties between now and the convening of the next Congress. FRANKL
IN D. ROOSEVELT.
In the meantime, and until it has | 3
Airline traffic of . the ChicagoIndianapolis- Washington - division of American Airlines, Inc, increased during March 34.1 per cent over February, C. R. Smith, president, annouticed today. Passenger lists rose from 1277 persons to 1713, he said. At the same time he reported 145 per cent gain for “the first three months of 1938 over the same period -last year. emo A film showing pheasant ‘life is to be exhibited to Butler University zoology students at 7:30 p. m. tomorrow at Jordan Memorial Hall, Robert B. Annis, local movie supplies dealer, will demonstrate the making of color films at a meeting of the Amateur Movie Club Wednesgay no night at the Indiana War Memoral. A
: : { “Problems Arising in the Examination of Titles to Real Estate,” is to be discussed by Herman Kothe at the Indiariapolis Lawyers Association meeting tomorrow noon at Hotel Washington, New members are to be announced at the meeting. Arthur Guiterman, Poet and magazine contributor, is to speak before the Indianapolis English Teachers’ Club at 4 p. m. tomorrow at the World War Memorial. Mrs. Ada M. Bing, Manual High School £nglish. department head, is to preside.
The Baraca Philathea City Union is to hold a supper-meeting tonight at the Food Craft Shop, Century Building. 4
Indianapolis Dental Society members are to hear Dr. John Lacy Wilson, superintendent of the main operating clinic of the Indiana University School of Dentistry, at a meeting tonight in Hotel Lincoln. New officers and committee members are to be elected.
At a meeting of the Indiana chapter of the American Institute of Architects tonight in the Architects and Builders Building, John C. Bollenbacher of Chicago, architectural consultant for Federal Housing Administration, is to speak on the bénefis available to architects under the A. :
W. W. Loomis of Chicago, National Editorial Association president, is to speak Friday night when Sigma Delta Ohi, national profes sional jouknalistic fraternity, commemorates Founders’ Day at a banquet and meeting at the Columbia Club. Mr. Loomis is national honorary president of the fraternity. DeWitt Mackenzie, Ag§sociated Press foreign affairs ‘editor New York, also is to speak.
Charges of conducting a gift enterprise and gambling were filed today against Cleven Bottoms, 818 Locke St., who police said had policy slips and baseball pool tickets in his possession. He also was accused of carrying a concealed weapon and drunkenness. : :
TRI-STATE LEGION PARLEY SET IN JUNE
FT. WAYNE, April 11 (U. P.)— A Tri-State Legion conference will be held at Hillsdale, Mich, June 18 and 19, it was announced today. Legionnaires from Ohio, Michigan and Indiana were invited to send representatives.
————————————— . CANADA BANS ‘LIFE OTTAWA, April 11 (U.P.).—~The Department of National Revenue today banned the sale of the current issue of Life Magazine, containing pictures of a childberth. The ban was effective for all Cana. .
‘president of the Indiana Junior ‘Chamber of Commerce. Mr. Howe
charge
THE CITY
Wallace C. Howe of Vincennes today had been elected executive vice
replaced James L.
Lewis, also of Vincennse . 2 :
‘Railway : year totaled. $78,070,846, according to a report of ‘the Bureau of Railway Economics of the Association
ASKINGREASEIN |
Indiana Department V.F. W.
purchases in Indiana 1ast| Meets Here; New Post
of American Railroads. Wages paid to Indiana employees amounted to $63,410,000; $49,824,188 was spent for materials, supplies and fuel, and ‘$28,246,658 went for new equipment.
Baseball Day is to be observed by the Universal Club at its weekly meeting at the Columbia Club tomorrow noon. Speakers are to include Edward F. Kepner, assistant agency secretary of the Indianapolis Life Insurance Co. Horace Riggs and Thomas M. Quinn, Amateur Baseball Association president. M. Sprague is to be in
The Board of County Commissioners today awarded a contract for about 100 metal voting booths to the Aetna Cabinet Co. Indianapolis; on its bid of $0.75 each, the lowest of three submitted. The ‘booths are to be delivered for use in the May 3 primaries.
The Women’s Democratic Club of Center Township, outside the city, is to meet at the home of Mrs. Alta Benedict, 2019 Madison Ave. at 7:30. p. m. tomorrow.
The Tillman H. Harpole Post 249 American Legion is to meet tonight at headquarters to plan its boxing Show Thursday night in Tomlinson all,
The Minnesota Street Civic Club will meet at 1905 E. Minnesota St. tonight to gather petitions for an extension of trolley service from Shelby St. to Minnesota St,
Thirty-seven players have entered and more are expected before play begins in the Central Indiana Chess Association’s tournament at the Y. M. ©. A. at 7:30 o'clock tonight. The annual banquet and election of officers are to be held on April 26 at 6 p. m. at the Homestead, Meridia and 56th Sts. | .
“Selection of a jury to hear the trial of Michael A. Connell started in Criminal Court today. He was indicted on a morals charge. Special Judge Frank A. Symmes was presiding.
- Madden-Nottingham Unit 348, American Legion Auxiliary, is to meet at 8 p. m. tomorrow at the Indiana World War Memorial.
is to meet at 8:15 p. m. tomorrow atethe Indianapolis Athletic Club. Speakers are to include Dr. Byron K. Rust, Dr. L. T. Meiks, Dr. Matthew Winters, Dr. T. B. Noble Jr. and Dr. Jack Pilcher.
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NR nal EATEN: Am Rida kik
An increase in beds at all Indiana veterans’ hospitdls has been asked by the Indiana Department, Veterans of Foreign Wars. Meeting at the World War Memorial, the Department Council voted to request an additional appropriation. :
Marion County corps, an organizational drive of Veterans of Foreign ward Roesner, | awarded a prize for new V. F. W. post near Other
were Carl PF. Carey,
East ‘Chicago, senior vice commander; el Brandon Seaington, Junior vice ‘commander Paul A.
apolis, adjutant. and ; Leslie Hendrickson, Boon! advocate; inspector: Harry Dietz, Evansville; Charles R. Michaels, and Ancil Morton, Indianapolis. Thirteen commanders, including one from Niles, Mich., attended th session.
PARIS, April 11 (U.P.).—Feodor Ivanovitch Chaliapin, Russian basso, was critically ill today. were called to his bedside. The 64-year-old singer is considered the greatest living basso. :
POLITICAL RIOT KILLS 8 PUEBLA, Mexico, April 11 (U. P). —Eight »ersons, including a woman,
tween opposing political parties. Government troops restored order.
HHAONRT n | were killed and four injured last night at Chautenco in a clash be-
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FINAL REDUCTIONS—Just 287
DRESSES
EARLY STYLES TAKEN FROM OUR UPSTAIRS DEPARTMENT
and reduced to these “give-away” prices to assure ‘quick clearance. What if we did make a few mistakes—you profit by them! We need the room for our new Easter merchandise, so you may - buy these frocks tomorrow for a fraction of . their real worth!
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The season starts April 16. Here at home, the Indians open against Minneapolis and the next best
thing to having a seat on the first base line is fo read
* Daily on the Sports Page of