Indianapolis Times, Indianapolis, Marion County, 16 December 1938 — Page 13

Second | Section

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Second Beeson

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ianapolis "

FRIDAY, DECEMBER 16, 1938

Entered as Second-Class Matter at Postoffice,

Indianapolis Ind.

PAGE 13°

* STUDY PR ~ FOR LIB

Labor Asks ‘Maximum

OPOSALS ALIZING TION ACT

Benefit; Employers Ask

Continuance of Pool -Fund; Three

re H

earings.

. © The Indiana Unemployment Compensation Board today received employer and employee proposals to amend the Compensation Law, with labor asking liberalization in benefit payments, and employers askihg

liberalization in payroll taxes.

The Inter-Organization Council, an employer group, ommendation with the following Statement;

“A sound unemployment compeh- | . sation program not only must guar- . antee workers payment of benefits to which they are due to protect them against the hazards of unemployment, but most important, also must foster steady. employment.” “That double purpose, we feel, is now served admirably by the Indi‘ana law. hTe Indiana system jhas proved its soundness from a standpoint of guaranteeing payment of benefits and it provides incentive for employers to stabilize employment. That is the reason why em- - ployers so strongly .urge, the continuance. of the employer reservepartial pool type of fund.” The State Chamber of Comméice the United Automobile Workers and the United Mine Workers representatives were also to make their recommendations.

James Robb, président of the Stat Industrial Union Council, C. I. O, outlined a program liberalizing the provisions of the Act and asserted that the Council was opposed to the merit system of employer reserves. These recommendations were “similar to those made earlier by the State . Federation of Labor, which asked amendments to make provis-

‘ions apply to all employers, instead |

of those employing only eight or .more workers. |

Would Raise Maximums The Federation also requested the maximum be raised from $15 to $18 a week, but urged the extension of - the compensation period to 20 weeks instead of 15, the present maximum. The secommpndations advanced. by Mr. Robb were: .

1. Removal of present exemptions limiting the coverage of the act so ‘that it would apply to all personsy employed in Indiana. 2. Minimum benefit payments of] $10 a week. Under the present law, beneficiaries can draw as low as $2 a week. { 3. Reduction of eligibility require- | ments to one, which should be the earning of a flat minimum sum during thé period of employment. the sum not to exceed $100. The minimum now is $250 earned in one year. - 4, Liberalization of the law covering unemployed workers in labor disputes. 15. Revision of the merit system of employer reserves, which becomes Sitsoin March 31, 1939. This sysdetermines the employer’s contribution rate on the basis’ of his reserve account.

prefaced its recy

PENSION PLAN HELD UNSOUND

‘Look at Colorado,” Says U. S. Economist of ‘GWA’ Proposal.

By LEE G. MILLER = Times Special Writer WASHINGTON, Dec. 16 (U. P.).— The newest old-age pension plan was attacked by a Governmeni economist today as unsound and dangerous. This economist, whose position forbids the use of his name, conceded that the so-called “general welfare act” as rewritten this week by the General Welfare Federation was more moderate than other schemes. But he said the same objections applied. | The new version of the “GWA” would provide Federal pensions of $30 to $60 a month for all nonalien. nonworking applicants past 60, financed by a 2 per cent tax on all gross income “of persons and. firms in excess of $100 a month, exempting only sums paid out in wages, taxes and interest.

Colorado Is Example

The economist suggested that Congress “take a look at Colorado” before giving serious thought to the “GWA.” . Colorado voters ‘amended their Constitution to provide pensions of | $45 a month to everyone over 60. (Of this, under the Social Security Act, the Federal “matching”

tribution is a r°- imum of $15 and it goes only to those past 65). The state has found its revenues unequal to the task. In July, for.in-| stance, pensions averaged only $28.79. And to produce even that sum, other state activities had to be scrapped or skimped. General relief for persons under 60, including the ill, the lame, the crippled and the destitute, has suffered.

Basic Fallacy Charged The General Welfare Federation,

N

6. Penalties for employers violat- |

ing the Act. . Merit Rating Change

Specific changes in the [law | recommended by the Inter-Organi- | zation Council were: 1. Changes in the merit rating! provisions to provide that an em-! ployer’s tax rate be 1 [per cent of his payroll if the balance in his re | account equals or exceeds 72 per cent but is less/'than 10\per; cent of payroll “for the preceding calendar year. And that the tax shall cease when the balance in his reserve account equals or exceeds 10 per cent of the preceding calendar year’s payroll. Present provisions are that the rate drops ta 2 per cent when the reserve account balance reaches . 1% per cent, of the preceding calendar year’s payroll, drops to 1 per cent when the balance. reaches 12 per cent and ceases when the balance reaches 17 per cent. tier Delay Penalty Tax 2. Postponement for one year.! un- , til the calendar: year of 1941, of the imposition ;of the i tax of 3.71 per cent when an ‘employer's re-. . serve account is exhausted. 3. Reduction.of the one-sixth portion of the employer's tax that now goes to the State pooled fund. The committee originally had recommended a reduction to one-tenth of the tax. 4. Inclusion in the Unemployment Compensation Law of specific provisions giving the State Board | authority to determine the kind;and frequency of wage reports from employers.

Salary Tax Change

5. Inclusion of a specific amendment providing that if the Federal Social Security law is amended to exclude from taxation annul salaries in excess of $3000, the state tax on such salary excesses automatically would cease. 6. Necessary amendments to provide that when an employee leaves work voluntarily without good cause attributable to the employer, he shall be ineligible for any benefits on the basis of wage credits established at the time of the vol-, untary quitting.

7. Simplification of benefit | for-|:

mulae to make. benefits rights of employees more readily understandable to employees and employers. 8. Clarification of guaranteed em-~ ployment provisions of the act under which an employer may adopt a guaranteed employment plan in lieu of payment of the unsiibleyment compensation tax.

Discuss Merit System

Discussion between Mr. Robb, of the Industrial Union Council, and the Fi iy centered about the C. I. O.’s opposition to the merit system provisions. of the Act, by which an employer's tax rates would be reduced if he maintained stéady employment. Members of the Board). held that this provision was designed to “stabilize employment” and that its wal ,

like other pension groups, contends that the spread of“purchasing power

through pensions would end the un-!

employment problem and the farm{surplus problem, "and restore general prosperity. 2

“But if that is so,” asked the econ- |

omist, “why stop with one group (and why limit the amounts? According to the same logic, the more

and bigger the pensions the greater would ‘be our prosperity. “The basic fallacy is the assumption that the spending of the pensions would increase the speed with which. money would circulate, and that this increased speed would of itself raise the nation’s ‘purchasing power and increase the demand for goods and serviees. n i suppose that pensions would be rapidly than the wages I salaties most ‘of us live on. What the aged would spend would be money the Government had taken from/ the rest of us in taxes. “Pension plans cannot create purchasing power. They can only{divert {it from the younger, productiv part of the population to the elderly

Burden Would Be Heavy

The General Welfare Federation estimates that eight million persons,

the federation’s bill, that would] come to $2,880,000,000 a year. At the $60 maximum, the cost would be $5,760,000,000.

Since the tetal of all Federal, state and local taxes is currently estimated . at 121% billions, it is obvious, the economist said, that the imposition of taxes to raise any Such sum would be a crushing bur en “Furthermore,” he said, “the burden would fall heavily on the consumer in the form of higher prices. “Whenever the gross income tax could not be shifted to wage earners

consumers in higher prices, it would! have to be paid by business enterprises themselves.

Bankruptcies Predicted

- “This would undoubtedly result in bankruptcies on a large scale. “It is also evident that business Men would attempt to avoid taxation by eliminating as many transactions as possible. The tendency would be toward ‘big mergers in which all the stages of production would be controlled by one owner, Small businessmen ' would hecome employees of large corporations or would perform | services on a contract basis. “The elimination of many types of transactions in order to avoid taxes would result in a progressive decline in the revenues available from these sources. “While on the surface the plan would seem to be inflationary, in reality the net effect might be deflationary. That is because most of the taxes would be paid by the farm and industrial workers, not only in

the form of a direct levy on their in higher.

con-

would apply for pensions. t the | $30-a-month minimum propo d in|

in the form of lower wages or to

mas party.

Children at the American Settlement Nursery School continue their play as usual these days, without knowing of a scheduled Christ-

As they dress their dolls, their mothers are wrestling with what appears to be a hopeless: Priblem—hew to buy candy with limited

resources.

SEEK TO FIND STATE BORDER

indiand- Michigan Co May Be Wrong, Denying State More ‘ Lake.

State, Conservation Department officials, who have a legal obligation to know how much sand belongs to Indiana, today announced that they are seeking to locate definitely the Indiana-Illinois boundary line on Lake Michigan. The suspicion that map makers have been repeating their mistakes lon the boundary line for at least 25 | years first was raised by William E. | Treadway, executive secretary of the Governor's Commission on Inter- | state Co-operation. | He said that the Indiana Constitution and official Federal maps show that’ this State .is the rightfullowner of several hundred square miles of the lake itself and a sec- | tion of beach in the extreme south- | eastern ‘edge of: Chicago.

Must Pay Sand Toll

Under the law, the Conservation Department issues permits to private companies dredging sand from the lake for commercial purposes. These ccmpanies must report the amount of sand they take and pay a toll of |6 cents a yard. If the territory which Mr. Tieadway claims actually belongs t¢ Indiana, and if it also has sand bars, | then, the department pointed! out, (this State is entitled to its toll. Virgil M. Simmons, Conservation | Department commissioner, said that ‘WPA workers have been making a [Shock of all the boundaries o: the State.

|

Other Snags As Well But the question of “anschluss” with this territory presents

jections which Illinois might niake, Mr. Treadway pointed out. This strip in the northwest corner of the State ip’ ,nt belong to Indiana, he said. out it probably couldn't be classified as a pat of Lake County. He said he supposed the Conservation Department could make it some sort of a “territorial park, whatever that might be.”

JURY DISAGREES IN BANK HOLDUP CASE

SOUTH BEND, Ind. Dec. 16 (U. P.) —Christ Gosdis, 43, was back in jail today awaiting another trial on charges of being an accomplice in the robbery of the Lapaz Stale Bank (in 1934. A Circuit Court jury of nine men and three women yesterday reported, after 24 hours de(liberation, they were unable to jagree on a verdict. Circuit Judge Dan Pyle dismissed the jury and ordered Gosdis held under $3000 bond. Deputy Prosecutor James E. Keating said Gosdis would be tried again.

COMPLETE SHIFT OF | ARY PATIENTS a | sri boi t—— The transfer of residents from the County's old infirmary in Tibbs Ave., to Julietta Hospital which has been remodeled into a new infirmary, had been completed today. At the same time Harry Barrett, infirmary superintendent, said all the County's mental patients: for-

merly at Julietta have been transferred to State hospitals.

ary residents at Julietta. 1937 law, the old Tibbs Ave. infirmary was deeded over to the State in return. for taking the County's menéal patients. ,

MILROY FIRE DAMAGE PLACED AT $15,000

RUSHVILLE, Ind. Dec. 1€ (U. P.) ~Investigators, today attenipted to = determine the origin of fire which yesterday destroyed a large

two-story brick’ building in Milroy, near here, at a loss of about $15, 000. Several automobiles and a large stock of mercHanilise in a grrage

legal difficulties over and above: any ob- |

There now are about 600 infirm- | Under a |

It's in Bag For These Candidates

When members of the Scientech Club meet Monday to elect their 1939 officials, there will be no prospect of recount suits, writs of prohibition and other legal involvements. The reason: The candidates have no opposition. They are E. S. Hildreth, . president; C. E. Chatfield, vice president; H. A. Minturn, secretary; Arthur Hood, treasurer. Nominees for directors are C. A. Breece, J. Lloyd Wayne, C. A. Trask, Thomas H. David, Earl Carter, Fred Kellam and D. 1. Combs. The luncheon and meeting will be at the Board of Trade Building.

SKYLIGHT BURGLAR

for his own safety.”

DAHL IS SAFE,

MOTHER FEELS

Ex-Butler Student Still Is

Prisoner of Franco at Salamanca.

- CHAMPAIGN, Ill, Dec. 16 U. U.)—The! mother of Lieut. Harold! Dahl, American aviator and former Butler University student, being held prisoner by Generalissimo Francisco Franco, leader of the

Spanish’ Rebels, said today she believes her son is being held “only

The Rebels captured Dahl more than a year ago while he was.flying| for the Loyalists and are holding him at Salamanca. Since his capture he has written frequently to his mother, Mrs. Charles W. Harmison.

GETS $140 IN STORE :

Tailor © Shop, tui

Robberies Reported.

Charles Steinfert, 59, of 1518 Pieasant St. reported to police today that someone entered his grocery store via the skylight and took $140 in cash last night. Paul Burns, 1103 N. Keystone Ave., reported that burglars entered a restaurant at 3157 E. 10th St. and stole $43 from the cash register. The Kauffman Tailor Shop, 2401 E. Michigan St., was reported entered last night and clothing, including a chinchilla overcoat valued at $200, was taken.

“He has written too much,” sie, said. “I think the Rebels are hold-| ing him for his own safety because | the Loyalists didn’t appreciate his | wrizings. On the other hand, the knowledge of insurgent military systems and plans ‘which he has gained since his imprisonment would be of value to the Loyalist army. : “But if he gets out of Spain, he’s apt to offer his services to some other country, so perhaps it’s better for everyone concerned that he remain in Salamanca. At least we know he’s alive and will continue so each day. In battle, we never know.” Dahl was condemned .to death a few days after his capture but re-| ceived a reprieve after his wife, Edith, now in Paris, had sent her picture to Gen. Franco and Pleaded for her husband's life.

Child ren to Get Toys, ‘But Sweets Are Lacking

A candyless Christmas party loomed today at the American Settle-

ment Nursery Scnool, a community traction.

Plans for the party, to be held next Friday at the Settlement, haye

been in the making for several weeks.

Money Runs Out, Nursery Faces Christmas Without Candy

Times Photos.

There are 30 children of ages between two and four in the schools.

This. party probably will be their candy. It’s to

center for children of foreign ex-

Most of the details have been *

worked out. But one of the most important hasn’t—that is giving candy to the children The 30 children will get a small toy from the moincr and another from the teachers The slender budgets with which necessity forces them to work at the Settlement have provided for a nicely decorated Christmas tree.

Apple Ske Too

The teachers and mothers also got together and made “apple Sania Clauses” for the children. Then they got down to that important point of candy distribution.

They found that the money had run out.

The mothers feel worse about the

G.0.P. TO CELEBRATE AT $10 PER PLATE

‘WASHINGTON, Dec. 16 (U. P.).— Republican Senators and Represen-tatives-elect will celebrate their victory at the polls with a $10 per| plate testimonial ‘dinner Jan. 16 at the Mayflower Hotel. The dinner was scneduled dy newly elected legislators in appreciation of the efforts of the Republican Congressional campaign committees in the House and Senate. Plans for the dinner origi with Rep.-elect Wheat (R. Ill.

y the

nated .

YI

LY

I Cash \ 2 Regular Charge

3 Layaway Plan

(seks

STARTING SATURDAY OPEN TO 6 P. M. DAILY UNTIL CHRISTMAS

on IW

More Than Anything Else She Wants a

DIAMOND WATCH 11%

Yop on the gift list is a diamond watch, and this § is quite a lovely one, finished in gold and set with two brilliant dismends, Complete with black cord bracelet,

Yr

Others up to 249.

a) 4 Ways to Purchase Diamonds and Watches at Blocks:

4 Budget Plan (you may your purchase with you

Diamonds, Watches, Clocks

and Gold Jowelry—Stroet Floor |

50.

take |

)

lack of candy than the children do

major holiday event candy or no

to be a week from today.

— probably because the - children don’t know about «it yet. | This is the first year the Mothers’ | Club has functioned as an auxiliary |; to the school in arranging_the

Christmas party. So there are somie heavy hearts in the Mathers’ Club today. °

Starting Saturday QPEN to 6

1iny

EX-GENERAL FREED IN CONSPIRACY CASE

Ctr Dec. 16 (U. P.) —=

‘Former Brig. Gln, Alexander FE,

Williams and two dealers in surplus Army goods were free today after a Federal f quitted’ them of charges of conspiring to prevent the appearance of a witness before a House commite eo investigation four years ago. The dealers involved were Nathan and Joseph Silverman of New York. The verdict freeing the three de= fendants brought to a close the case olving ‘the nonappearance of Frank E. Speicher, puncture-proof (tube salesman, before the House Military Affairs Committee’s inquiry into alleged splitting of $10,000,000 in |contracus for war materials. 'he Government charged the de= fendants with inducing Mr. Speicher to hide during the investigation.

P. M. Until Christmas

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