Indianapolis Times, Indianapolis, Marion County, 5 January 1939 — Page 9

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£22 MULION W "5 "ry R “Relief Text

NEW TAXES GOAL ‘OF ROOSEVELT

General Revision Unlikely; Farm Parity Estimates Are Delayed.

WASHINGTON, Jan. 5 (U. P)— President Roosevelt called upon Congress today to enact more than a billion dollars in tax levies, ins cluding at least 422 million dollars in new revenue. The tax proposals of the President’s budget message called for both re-enactment of expiring revenue laws and imposition of new fund-raising taxes. | He asked: 1. New taxes to finance $212,000,-. 000 farm parity payments and $210,000,000 emergency defense expenditures. | 2. Re-enactment of so-called nuisance” taxes which expire June 30. These were estimated to yield between $500,000,000 and $600,000,000 annually. 3. Exploration of the possibility of levying new taxes to finance approximately $286,000,000 in Social Security grants to states.

No Sources Suggested

The President did not suggest specific sources which Congress might tap to find the new revenue. However, there was strong indica~tion that he felt the field of inheritance and estate taxes might prove a fertile source.

The President indicated that he would not press for general revision of the tax structure at this session. However, he specifically asked hat Congress find revenue to provide for parity payments under the 1938 farm bill and to finance start of

that he would like revenues to finance projected grants to states for old-age assistance, maternal and child welfare, public health work, and for aid to dependent children and the blind.

Deficit Would Be Cut

If Congress provides 422 million dollars in additional taxes, it would increase projected Federal income in the 1940 fiscal year to $6,091,320,000 ang,reduce the budget deficit of $3,826,343,200 to $2,904,343,200. Mr. Roosevelt left a strong impression that he did not sympathize with suggestions for processing taxes to finance farm payments. In addition to possible increases in inheritance and estate tax rates, another revenue source would be removal of tax exemptions of salaries of Government employees and future issues of Government securities. Another source to which the Administration might not object | is lowering of personal income tax exemptions. Some members of Con.gress, including Senator La Follette (Prog. Wis.), plan to introduce such legislation at this session.

Billion and Quarter For Farm Aid Likely

WASHINGTON, Jan. 5 (U. P.).—Text of President Roosevelt's message to Congress asking an immediate new appropriation for relief: To the Congress of the United States: ! In my message of April 14, 1938, 1 presented to the Congress certain recommendations covering programs for the Works Progress Administration, for public works, and for housing, which were designed to increase the purchasing power of the Nation, to stimulate business activity, and to provide increased employment. - * Subsequently, in the Emergency Relief Appropriation Act of 1938, approved June 21, 1938, the Conress appropriated to the: Works rogress Administration the sum of $1,425,000,000 together with certain balances of previous allocations to that Administration which remained unobligated on June 30, 1938. By other legislation, $23,000,000 of this appropriation. was reserved for specific purposes and therefore was not available for the Works Progress Administration program. In section 2 of the act, the Congress provided that the available funds should be apportioned over the first eight months of the fiscal year 1939, and further authorized me to modify that apportionment in

-lthe event of an extraordinary

emergency or unusual circumstance which could not be anticipated at the time the abportionment was made.

COULD NOT GIVE ALL JOBS

Since the enactment by the Congress of legislation providing funds for the programs recommended -in my message, substantial business and industrial improvement has occurred throughout the country. However, during the period prior to the ‘adoption of this legislation, when unemployment was increasing, the increase in the number employed on the Works Progress Administration program did not keep pace with the need for employment because the Works Progress Administration had funds to employ only part of those who were out of jobs. In addition, in a period of increasing unemployment there is a lag before the impact of the jobless reaches the Works Progress Administration. This is because workers who lose their jobs exhaust their private resources before applying for relief. Furthermore, the time intervening between the loss of private jobs and the need for Works Progress Administration employment is now considerably greater than heretofore. because of the operation of the unemployment compensation program. Therefore, with the passage of the Emergency Relief Appropriation Act of 1938, the Works Progress Administration expanded its program in an effort more nearly to meet the needs of the unemployed. While beginning in July, 1938, 125,000 to 150,000 workers were voluntarily leaving Works Progress Administration projects each month, it was necessary to add from 200,000 to 300,000. others monthly to the rolls in order to meet the needs of those whose personal resources or compensation benefits had become ex-

WASHINGTON, Jan. 5 (U. P.)— President Roosevelt today recommended to Congress a partial farm

‘aid budget of $1,014,390,851 for the

1940 fiscal year. Additional esti-

. mates to be submitted later will

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boost the total agricultural outlay to $1,286,000,000. " The budget did not carry specific provisions for crop parity payments and rural rehabilitation. These estimates, due to reach Congress later this session, will ask 212 million dollars for benefit payments— and tax levies to finance them—and approximtaely 60 million dollars for activities of the Farm Security Administration. Funds requested compare with a ‘total of $1,511,679,683 appropriated by Congress last year for administration of the Agricluture Department and for benefit payments to the nation’s food and fiber producers. | - Major budget items in the farm picture was the recommendation of ‘an appropriation of $485,000,000 for g0il conservation payments in| the program to reduce acreage in soil depleting crops by diverting such acreage to grass and forage growths. The President recommended a geparate apropriation of 48 million dollars for sugar producers upder the suger act of 1937. | While he did not include a specific estimate for farm parity payments in the 1940 fiscal year, he did mention “the addition to| our public expenditures involved in . . . the program for agricultural parity payments” and ‘urged [that Congress provide tax increases to cover the cost of this program. .: It was understood that: the Administration anticipated an expenditure of about 212 million dollars—the amount provided this year —for parity payments in the 1940 fiscal year. The 60 million dollars for Farm Security is expected to be asked when the 1940 relief estimates are submitted, probably late in March.

2 TRIED IN KANSAS | ‘IN HOOSIER'S DEATH

ABILENE, Kas., Jan. §. (U.-P.) — Robert R. Cathey, 38, and Charles R. Kerns, 20, both of Abilene, went on trial today, charged with the revolver slaying and robbery of Clyde Boyd, Petersburg, Ind. telephone lineman. ‘ f Cathey and Kerns reported) finding Boyd’s body near Abilene last July 18. Each later admitted they took a wallet and pistol from the

I$ %p scene of the crime, but both denied

a i! ‘e

any connection with the shooting. ‘

ARGES SPY CASE HAS ITS ‘HIGHER-UPS’ LONG BEACH, Cal, Jan. 5 (U.P.).

republic’s secret service said today that he had new evidence on the

=A former chief of the Panamsa|

hausted, and to take back .as required by Section 12 of the act, those who had left the Works Progress Administration for private employment and whose employment had been terminated through no fault of their own, :

COMMODITY PRICES FELL

The . demands upon Works Progress Administration appropriation were increased by two additional factors. The critical foreign situation has had an adverse effect upon American business and industrial employment in this country, and has been an unexpected deflationary force affecting the prices of commodities entering into world markets, such as certain of our important agricultural commodities. This has accentuated relief problems in important areas in the country. In addition, the hurricane which devastated large areas of New England last September seriously dislocated industry and trade in the northeastern section of the country and added to the relief burden in that area.

As a result of the foregoing factors, the employment provided from the Works Progress Administration appropriation increased from 2,900,000 at the beginning of July, 1938, to a peak of 3,350,000. During the past few weeks the number has been declining. On Dec. 24, 1938, the total had fallen to 3,112,000, and it is expected that the employment during January will approximate three million. The

_|foregoing figures include -employ-

ment: provided with funds transferred by -the Works Progress Administration - to other Federal agencies under the authority of Section 3 of the act. An average of- 90,000 persons are thus employed under conditions entirely similar to those pertaining in the main Works Progress . Administration program. Under the conditions: outlined above, the funds appropriated : to the. Works Progress Administration will be barely adequate to finance the operations of that agency through the month of January, 1939. Therefore, in accordance with the authority contained in Section. 2 of the Emergency Relief Appropriation Act of 1938, I have apportioned those funds to be used during :the first seven months “of the fiscal ‘year. ot oe ' It is believed that sufficient funds should now be appropriated to the Works ‘Progress Adniinistration for the balance of the current fiscal year:to employ an average of 3,000,-

MARY, THOSE WERE THE BEST

identity of “higher-ups” in the case}

of four Germans recently arrested for espionage ‘in the Canal Zone.

Bilo Mendez, the former official,| said he would ask that the trial of

‘mt least one of the four defendaots|

pre-

000 workers in February and March, and a diminishing number beginning in April which would reach a figure of 2,700,000 in, June. This would include the numbers to be employed with funds transferred. to other Federal agencies. The employment proposed for February and March, which is the same number that is expected to be reached in January, is justified by seasonal factors and the lag in outside construction operations which always occurs on account of weather conditions. In fact, there is normally an increase in the need for employment during these winter months, and the funds available to the

ber of employable persons who have

The Works Progress Administration program is at present bein conducted at an average Federal cost of approximately $61 per worker per month, of which only $2 is overhead administrative expense. Therefore to provide the employment set forth above, a deficiency

will be required, and this is the amount which I recommend to the Congress. In view of the fact previously mentioned, that the funds now available are barely sufficient to finance the Works Progress Administration through the month of January, 1939. I urge speedy action on the part of the Congress to provide these additional funds in order to prevent disruption of the program and consequent suffering and want on the part of the unemployed.

manner in' which funds appropriated to the Works Progress Administration, and other appropriations, shall be distributed. However, the problem of distributing work-relief funds is a complicated one involving factors not only of population but of economic and unemployment conditions in various sections of the country. The hasty adoption of legislative provisions, to be immediately effective, which radically change the present method of distributing Works Progress Administration funds would greatly complicate the administration of the program in the coming months. I therefore believe that the Congress should make this question the subject of study and hearings, with a view to determining a policy to obtain in the fiscal year 1940, but

BUDGET LISTING

Works Progress Administration have |} not been sufficient to enable it toji assign to its program a large num- |:

been certified as in need of relief.|:

appropriation of 875 million dollars]

I realize that the Congress may | #8 wish to prescribe by legislation the | mm

"CHANGE SOUGHT

Roosevelt Urges Federal Credit - Agencies: Raise Funds in Open Market.:

WASHINGTON, Jan, 5 (U. P)— President Roosevelt today proposed for Congressional consideration. a suggested new “business budget” for the Federal Government,

The proposed new budget would

reclassify Federal spending items

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into new categories. For example, new accounts for loans by Federal agencies for self-liquidating projects and other: recoverable governmental disbursements would be set up. Federal credit agencies, such as the Reconstruction Finance Corp., the U. S. Maritime Commission, the Federal Savings and Loan Associa-

tions, would raise their own funds in the open market and thus would not be charged against the Government as an expenditure or as a national debt. increase. ‘ Such a change from the present

‘form, it was understood, would re-

quire legislation. : ; “The public has been ‘showing an increased interest in the adoption by the Government of a form of budget which would conform more

saree. | ne 196.

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that the appropriation recommended in this message should be made on the same terms as that for the first part of the fiscal year 1939.

FOE OF RELIEF POLITICS

No one wishes more sincerely than I do that the program for assisting unemployed workers shall be completely free from political manipulation. However, any one who proposes that this result can be achieved by turning the administration of a work program over to local boards is either insincere or is ignorant of the realities of local American politics. It is my belief that improper po-

by the Congress, and that this should be done. should be imposed not only upon

persons within the administrative

Admnistration, but also upon outsiders who have in fact in many instances been the principal offenders in this regard. My only reservation in this matter is that no legislation should be enacted which will in any way deprive workers on the Works Progress Administration program of the civil rights to which they are entitled in common with other citi= zens. In connection with the above, I invite your attention to the fact that under the provisions of Executive Order 7916, the Administrative employees of the Works Progress Administration, with the exception of a relatively small number of positions, will be brought Ser the Civil Service on Feb. 1, 1939. ~ It is my intention to transmit to the Congress, probably in the month of April, a supplemental es-

which will be required to provide

work relief for persons in need in the fiscal year 1940.

NEW TRIAL SOUGHT FOR MRS. SANDLIN

Pleaded Guilty to Aid Murder Suspect.

ing

A motion for a new. trial for Mrs. Arlene Sandlin, 24-year-old mother

Court today.

Frank P. Baker, former - Criminzl Court judge, on her plea of guilty to being an accessory’ after the

tion attendant more than ‘a year

and aiding him to escape arrest. _-Miss Jessie Levy, defense attorney, said Mrs. Sandlin entered the plea

officials that they would recorimend a suspended sentence because

jail before her hearing.

dered Mrs. Sandlin taken to prison.

YOU'VE EVER MADE

petition to set aside the sentence.

PILLSBURY PANCAKES

litical practices can be eliminated § only by the imposition of rigid | statutory regulations and penalties ¢

Such penalties §

organization of the Works Progress

timate covering the appropriation |

of two children, sentenced recently | to two to 21 years in: Women’s fg Prison, was on file in Crimingl|f

Mrs. Sandlin was -sentenced by :

fact in the murder of .a filling. ste- |

ago.’ She was accused. of loaning |g money to a suspect in the Killing |

on the agreement of prosecuting

Mrs. Sandlin had served a year :n |

Former Judge Baker ignored the leniency recommendations and ot- |

Last week Judge Baker denied a |fE

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nearly to the practice followed in commercial business,” Mr, Roosevelt, said in his budget message. «There has been some criticism of the Government's practice of including in its budgetary expenditures, amounts disbursed for loans, or for self-liquidating projects, or for other extraordinary capital outlays which. increase the wealth of the nation.” : :

outlays for the Boulder Canyon

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For example, Mr. Roosevelt said,|'

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The Indianapolis Dental Society is to hold its annual all-day clinic at the Indiana University Medical Center Monday. The Alumni Association of the Indiana University

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