Indianapolis Times, Indianapolis, Marion County, 18 February 1939 — Page 2

‘Reported Widening; Income Levy Studied

= Retailers’ Leader Charges ~ State Needs Better | Business Sense.

“Retailers and Administration Senate leaders were reported at greater odds today over the bill to cut the gross income tax rate as the former charged that “more business-like. administration = of

State government” would enable Indiana to live within its income.

Governor Townsend yesterday refused to confirm or deny the re- . ports that there was Administra- _ tion “heat” on this measure. He said, however, that if the gross tax rate is cut the money. will have to be made up in some other way or the State’s distribution to schools will have to be curtailed. In a statement today, C. L. Jones, president of the Associated ~~ Retailers of Indiana, said: “Reasonable economy, coupled with more businesslike administration of the State government, would not only enable Indiana to live within its income, but would make unnecessary talk of reduced payments to schools and teachers and Heavier taxation of property. - Retail merchants would not approve of legislation that would either handicap the schools or put additional burdens on property taxpayers.

5 | # .“Reports have been circulated to

“the effect that bills are being pre-

pared for introduction in the Legislature . providing for a reduction in the amount distributed by the State for payment to schools from $700 per year to $400, for each teacher unit. It has been stated that if these bills, or similar ones, were adopted, the State would be saved an annual expense of $6,000.000, and that this amount would be shifted back to general property taxpayers. “Introduction of a bill of this character would be, in my opinion, intended merely to influence legislation now under consideration by the General Assembly, and I do not believe any one would be deceived by it. Representatives of the Associated Retailers of Indiana have contacted sufficient numbers of legislators to feel assured that no legislation will be passed making any such reduction in amount paid to the schools, or shifting any additional burdens to property taxpayers. Certainly retail merchants would be opposed to any such legislation. ““If the State government will effect some sound economies in its business, as we merchants have had to do in trying to have funds to pay the excessive taxes which have been levied against us, the State undoubtedly would be able to live within a reasonable budget and without unfair taxation on any group of our citizens.” . The possibility of a reduction in State distributions to schools was suggested by a Senate leader at a conference with ‘the. Governor following passage of the bill by the House, according to a Democratic publicity man. :

Public Hearing Thursday

The bill passed would reduce the retailers’ rate from 1 per cent to 3% of 1 per cent and also the exemption from $3000 to $1000. Retailer groups have requested the reduction because, they claim, they are being “forced to the wall” by the present rate. They also attributed a large number of business failures to the tax, which they charge discriminates against them. The bill has been referred to the Senate Finance Committee which will consider it for the first time at a public hearing next Thursday. Tuesday originally was set as the hearing date, but committee members said “other business” prevented their considering it on that day.

‘HOME RULE’ STUDY 13 VOTED BY HOUSE

+ Commissions for Manager Plan Probe Proposed.

=

*The House of Representatives today passed and sent to the Senate a concurrent resolution providing that a Commission be named to decide on the best method for Indiana cities to obtain the city manager form of governiaent, ‘The vote was 67 to 9. “An identical resolution was passed by the Senate several weeks ago but it was not sent to the House be- " cause a motion was filed with the Senate clerk asking for reconsideration. Democratic Senators have indicated this action was taken to permit them to change the reporting time of the Commission from Oct. 1 to Dec. 1, 1940, in order that the city manager question will not be--come an issye in the 1940 general election. Rep. Howard Batman (D.’ Terre Haute) asked the House to pass the resolution today on the grounds that the cities should have the right to choose the government under which they live and should not be “saddled” with one type. He said it was generally conceded that the question of how this “home . rule” should be brought about is so complicated that an exhaustive study of the matter is necessary to settle it. :

‘SOUTH SIDE LEADER HITS ELEVATION BILL

- Measure Doesn’t Compel Road to Act, He Says. Charges that the rewritten House

_ track elevation bill does not ‘“compel any railroad to join with the city

and county in an elevation project,”

were hurled today by E. H. Wisch-

meyer, track elevation committee chairman of the South Side Civic Club ;

cl

He declared the measure ‘is poorly wn and tosses years of work by

Committee Holds Proposed Act ‘Enrichment Through Politics.’

‘A House bill which would levy a 75 per cent tax on incomes “swollen because of political influence” was held for further. consideration by the Ways and Means Committee today after proponents said its passage would bring the State $500,000. The Committee also heard Rep. Guy W. Dausman ask for a favor-

law to replace the gross income tax. In speaking on the “unjust enrichment tax” bill, Clinton Givan, Indianapolis attorney, said: “This bill would not only add $500,000 to the treasury but would also restore the good name of the state. “If enacted people couldn't say as they do now, ‘go up to Indianapolis and see so-and-so and hell fix it for you.” ” Called Constitutional

As drafted the bill would bring a 75 per cent “unjust enrichment tax” on net incomes of beer importers, attorneys, salesmen and agents, who have received large sums of money from the State because of political influence. It also would set up a State Unjust Enrichment Tax Board to collect the tax which is made retroactive for 10 years and provides that gross income tax records be available in tracing persons who would come under the act. An appropriation of $50,000 annually for collection of the tax would be returned “more than 10 to 1,” Mr. Givan said. Money collected would go to a common school relief fund. “It is clearly constitutional,” he added, “and would be one of the best bill which could be passed in Indiana. It follows closely a Federal Act which has been declared constitutional.” When Committee members asked him about enforcement Mr. Givan said: “Just because we can’t always convict a murderer is no reason for not having a law against murder. The very existence of the law would be one of the best acts in the statute books.” Gregg Approves Bill

Ralph Gregg, 12th District Republican chairman, said that the bill would “correct the evils of unjust incomes.” Committee members asked Mr. Givan if he would be willing to have the bill go back an additional 10 years. He replied that as far as he was concerned the bill could be amended “to go back 18 years.” In speaking for the net income tax bill, Rep. Dausman told the Committee that Indiana was the only state having a gross income tax law and declared it was “a pest.” “It is impossible to enact a fair gross tax law but a proper net tax law can be enacted. “The Federal Government annually takes $40,000,000 from Indiana in net income taxes. It further is only a matter of time until the Supreme Court reverses its stand on the intangibles tax. That is clearly unconstitutional. : “Don’t toss this bill aside lightly, gentlemen,:because there is going to be a lot of pressure for a net income tax to replace the gross income tax.” Rep. Dausman’s bill would repeal the gross income tax. Would Levy on Laundries The Committee voted to recommend for passage a House bill amehding the gross tax law to include laundries and dry cleaners in the retail merchants classification. Senate bills recommended for passage by the Committee would: Take away from nonresidents the right to take advantage of real estate mortgage exemptions. Exempt delinquents from payment of penalties for ‘failure to pay intangibles tax when due, if delinquents make affidavit to county assessors that failure to pay resulted from an error and not from intent to avoid payment.Other bills introduced in the House today would: Assess a 10-cent per gallon tax on liquor at the distillery, designed to raise revenue to replace that which would be lost to the State if the Legislature passes a pending bill to cut in half the gross tax payments by retailers. Authorize the State Tax Board to license and regulate open air parking lots, Appropriate $75,000 for the purchase of prehistoric earth works known as Angel Mounds along the Ohio River in Vanderburgh and Warrick Counties. Strip the State Welfare Department of its control over county welfare departments in the administration of State welfare activities. Prohibit dancing in places where liquor is sold.

ACCUSED OF ROBBING STORE

PT. WAYNE, Feb. 18 (U.P.)— Four Hartford City young men, none of them over 21, were to be arraigned in Municipal Court today on a charge of armed robbery. They are charged with robbing a chain grocery store here yesterday afternoon and escaping with $44.

able report on his net income tax

ross Tax Breach [4 NEW BILLS

PUT ASSEMBLY TOTAL AT 869

House Holds Extra Session In Effort to Break Legislative ‘lam.’

(Continued from Page One)

government from July 1, 1939, to July 1, 1941, introduced in House and awaiting Ways and Means Committee dction. They call for

biennial appropriation. Most State employees’ salaries would be slashed 10 per «cent. A Republicansponsored bill. to cut employees’

sliding scale has advanced to third reading in House. :

“grace period” until March 1 for purchase of license plates have been passed by both houses. Minor differences expected to be ironed out in conference committee. ® House passed and sent to Senate bilis repealing truck weight tax law and returning $619,000 to truckers who paid this levy. . Gross Income Tax—Bill passed by the House to cut retailers’ gross income tax rates from 1 per cent to % of 1 per cent and reduce exemption from $3000 to $1000. Senate Finance Committee to consider measure for first time next Thursday. Administration opposition reported to the lowering of the tax rate at this time.

Wage-Hour Bill Held Up

Labor—Wage and Hour Bill, patterned after Federal law, introduced in House and referred to Labor Committee. Committee has held it for a month and efforts of Labor repreesntatives to force it out have failed. Minimum wage bill, not at-

hours, passed by Senate and is awaiting House action. Bills to empower State Labor Division to collect unpaid wages of less than $100 and to prohibit the sale on the open market of prison-made goods passed the House and pending in the Senate. : Marriage — Administration’s hygienic marriage hill to require marriage license applicants to take blood tests for syphilis passed by House and pending in Senate. Public Health—Passed and signed by Governor are bills to appropriate $75,000 annually to enable State Health Board to purchase pneumonia, diphtheria, smallpox and typhoid serum for needy persons and to provide free medical care and hospitalization for indigents over. 16 in hospitals of the I. U. Medical Center... Bill to require syphilis tests for expectant mothers awaiting Governor's signature: Nepotism—Threats of Democrats to tack on to any Republican antinepotism measures amendments to make these resolutions apply to local as well as State officials apparently all but killed the issue. House bill to re-enact old antinepotism law tabled. Safety — Four Indiana Safety Council measures to recodify State’s traffic laws on third reading in Senate. Companion House bills on second reading.

House Patronage Bill Passed

Reorganization Act Attack—Republican House majority pushed through bill to return to State officials patronage power over their own personnel, 51 to 47. Also passed, 51 to 46, bill to give Secretary of State right to appoint the State Securities Commission. No action taken by Senate on either bill. Election—Two A Republican-spon-sored reform bills passed by House and awaiting Senate action. They would provide for recounts in individual precincts and a central counting of primary ballots in more populous counties. Senate passed and sent to House a Democratic central counting measure and advanced to third reading bill to return nomination of candidates for U. S. Senator and Governor to direct primary. Special Appropriations—Only bills of this type passed would appropriate $75,000 for purchase of serum for needy persons and $10,000 to finance State’s legal battle against freight rate differentials sought for Southern states. Others expected to die in committee. : Indianapolis Affairs—Bills to facilitate possible purchase of Indianapolis Water Co. and reduce railroad’s share in track elevation projects ready for third reading in House. City Administration-spon-sored bill to clarify Indianapolis Police and Firemen’s Merit Law also on third reading, Two Per Cent Club—Republicansponsored bill to place this Democratic campaign. fund collection agency under jurisdirction of Corrupt Practices Act ready for second reading in House. Earlier bill blocked on third reading by Democratic minority which pointed out error in drafting. “Home Rule”—Bill to exempt municipally owned property from taxation passed by both houses and awaiting Governor’s signature.

CLEAR STORM DEBRIS

LOS ANGELES, Feb. 18 (U. P.)— Thousands of workmen were sent into residential districts and along connecting highways today to clear the debris caused by a three-day gale which reached a peak velocity of 72 miles an hour. Property damage was estimated at $250,000. :

Senate to Get 2 Election

yesterday by small majorities.

precincts they chose.

cent nominated 4 The; House election

3

One of these measures provides for a central counting of ballots in the more populous counties of the State and the other would give defeated candidates for State offices the right to obtain recounts in any

The Sénate meanwhile, is scheduled to consider on third reading the bill to place the nomination of U. 8S. Senator and Governor under jurisdiction of the direct primary. The bill was amended to provide that any candidate receiving 40 per of the total vote would be

Reform Measures Monday

The Indiana Senate is to give first reading Monday to two Re-publican-sponsored election reform measures which passed the House

tion.

second reading, the

cincts for recounts.

recounts in seven counties.

which ruled 2 have

total increase of $3,632,264 over last

salaries 2 to 21 per cent on a

Auto Licenses—Bills to provide a

tempting to restrict number of

Committee and have drawn sharp opposition from the Democratic minority ever since their introduc-

When the recount bill was on Democrats sought to have it amended so that if a losing candidate in a State race sought a recount in certain precincts, the winning candidate also would be permitted to choose pre-

Last fall Raymond E. Willis, G. 0. P. senatorial nominee, and the unsuccessful Republican candidates for State offices filed petitions for

This move was blocked when the Democratic winners obtained injunctions from the Supreme Court that the recounts would le on State-wide basi

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Looking Down

% So;

Here's how the Golden Gate International Exposition appears on the eve of the opening. This view, taken from above San Francisco, shows the exposition on a man-

on «

made isiand in San Francisco Bay. In the foreground is San Francisco’s skyline, with The San Francisco-Oakland Bay bridge. (Story, Page One) :

Two bills designed to outlaw certain types of strikes and to restrict picketing by strikers were introduced in the House of Representatives today. The first measure, drafted by Rep. Benjamin Harris (R. Richmond), would make it illegal for employees to conduct that type of strike where pickets occupy the premises of the employer. It also would outlaw any type of strike which attempts to “coerce” the Federal Government. The second bill, introduced by Rep. Claude Baylor (R. Speed), would outlaw:

interfere with the approach to or egress from any business place or plant. 2. Picketing which interferes with the free and unimpeded use of public highways. 3. Picketing engaged in by persons not employed at the plant or business. 4. Picketing directed at and in the vicinity of a private residence. It also would make it unlawful for

REPORT NEGRIN NOW SETS ONLY ONE TERM

British Say Loyalists Ask Peace Less Reprisals.

LONDON, Feb. 18 (U. P.).—Premier Negrin of Loyalist Spain is ready to make peace on the sole condition that the Rebels refrain from wholesale reprisals against Loyalists, according to information received in high diplomatic quarters today. : Dr. Negrin is leader of those

civil war must be fought to the end unless the Rebels grant three conditions—a guarantee of independence and integrity for Spain, freedom of the country from all foreign influences and freedom of life for the Spanish people, a guarantee against reprisals. The British Government was understood to have been urging the Rebels to grant the no-reprisal guarantee, believing that this was the most essential one.

60 Killed, 200 Hurt

In Alicante Bombing

MADRID, Feb. 18 (U. P.)— Sixty were killed and 200 injured today when four Italian-type planes. dropped 100 bombs on Alicante. All war fronts were quiet.

Poland and Uruguay

To Recognize Franco

WARSAW, Poland, Feb. 18 (U. P.).—The Foreign Office announced Poland’s full legal recognition of Rebel Spain today.

WASHINGTON, Feb. 18 (U. PJ). —Uruguay notified the state department today it definitely has decided to recognize the Franco Government in Spain.

BANKER SENTENCED FOR $23,000 THEFT

FOWLER, Feb. 18 (U. P.).— Lemuel Shipman, prominent banker here, was sentenced to one to five years in prison yesterday when he pleaded guilty to embezzling $23,718 from the guardianship of his brother-in-law. Shipman’s plea of guilty was a surprise move. Previously he had maintained his innocence. He was president of the First National Bank here until it closed in 1931. A grand jury indicted him for

of Charles H. Kinsell. BISHOP'S DAUGHTER BEATEN

ington, Episcopal bishop of Wuhu yesterday.

BUSINESS EDUCATION

Strong Accounting, Bookkeeping, Stenographic and Secretarial cour g

1. Picketing conducted so as to:

Loyalists who have insisted that the|

embezzling $23,718 from the estate

BOSTON, Feb. 18 (U. P.).—Police today sought a swarthy youth who beat and criminally ‘attacked Mary C. Huntington, 18, of Hartford, Conn., art student and daughter of | the Rt. Rev. Daniel Trumbull Hunt-

House Gets Bills Aimed At Strikes and Picketing

any pickets to coerce or induce employees to join strikes and to commit any violence or to prevent the buying, selling or transportation of any agricultural products.

EVANS ASKS HOUSE T0 PUNISH JACKSON

Files Protest Over Failure To Produce Tax List.

Rep. Herbert H. Evans (R. New Castle), majority floor leader, today filed a protest with the House of Representatives demanding that Clarence A. Jackson, Gross Income Tax Division director, be reprimanded, fined or impeached for failing to submit a list of delinquent taxpayers. Early in the session, Rep. Evans introduced a resolution asking that the names of those who have failed to pay their gross income tax be submitted to the lower chamber by Feb. 15. This resolution was passed by the House on a vote strictly along party lines. Mr. Evans said he would discuss the possibility of the House majority’s filing impeachment proceedings at a Republican caucus next week. In his protest he charged Mr. Jackson “has not only assumed the

Gross Income Tax Division but has used his position and power to build up a political machine and name candidates to office for the purpose of keeping himself in office and furthering his own ends.” The Evans protest also alleged that Mr. Jackson “has so far defeated the purpose of this House of Representatives in seeking to help the over-burdened and down-trod-den taxpayer of the State by his failure to comply with the aforesaid resolution and he should be brought to the Bar of Justice in this House and either censured, reprimanded, fined or impeached . ..”

MISTAKE ARREST’ "AWARD PROPOSED

House Gets Bill Requesting $5000 for Woman.

Mrs. Nancy Louise Botts, who served 13 months in the Indiana Women’s Prison by “mistake,” would receive $5000 as compensation from the State under terms of a bill introduced in the House of Repre-

sentatives today. Mrs. Botts, whose home is in Brazil, Ind., was arrested at Ko-

charge after several bogus check victims “identified” her as the check passer.

nocent, Mrs. Botts was tried in the Howard County Circuit Court and sentenced to serve 2 to 14 years in prison. Working on the theory that Mrs. Botts had a “double,” the officers arrested another woman who looked like her. She led them to a farm home where she said her husband had been printing the checks and forcing her to cash them.

position of tsar or dictator of the

komo on Oct. 15, 1934 on a forgery

Although she insisted she was in-|

DUCE REVIEWS HIS BODYGUARD

_ Assassination Plo}. Report. ;

(Continued from Page Oe)

reported attempt against him. It was officially denied that Lis life had been the object of a madman who shot one of Premier Mussolini's detective body guards when he was challenged “outside the Promier’s home, : : Persons close to Premier jAussolini disclosed that as the result of the incident before his villg, Senator Arturo Bocchini, Chief of Police, insisted that his guard je increased, but that Sig Mussol ni refused. He has often said that he does not fear for his persor,-and it is only at Senator Bocchini's insistence that plainclothesmen guard his villa in force. 5% He is due to appear befo'¢’ many thousands of people at Ttuiin tomorrow. His visit there; 3i miles from the French frontier, vis long planned, and it was expect2t. until the Pope’s death that he would take the occasion to advance his cam-

paign for fulfillment of Italy's

“natural aspirations.” £ It was said authoritatively today that Bruno Simone, 38, who on Tuesday shot one of the 300 bodyguard detectives, told police that he had been waiting for Sig. Mussolini himself to appear tarough the main driveway of his residence, the Villa Torlonia. The wounded detective was reported to be in critical condition at a small hospital, his heroism: completely unknown to the public.

Communique Published Today's newspapers published an account of the shooting tociay on their page reserved for “local” news. They published simply a Pr2ss Ministry communique which said: “On HRebruary 14; shortly after 2 p. m., on the Via Nomertsna, a

Fascist militiaman dressed ir: plain clothes noticed an individual, evisigns of excitement, and apprpbached dently unbalanced and showing him with the intention of quitting him. “The stranger suddenly fired a shot from a revolver, wounding the militiaman in the abdomen. “The aggressor was immediately arrested and was identified as a mechanic, Bruno Simone, 38, of San Giorgio di Piave near Bilogna, who was twice detained in finsane asylums, first at Naples, then in Rome. ! “He was released from sane asylum last year.” | Authoritative quarters said, however, that the shooting took place directly opposite Sig Mussolini's villa and that Simone said he had been waiting for II Duce.

t ie in-

¥

Official Denials. Issued on

China, in her West End apartment |

Day one. Lincoin 63 Fred W. Dal. + oy

wet

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Remains

BERLIN, Feb. 18 (U. P.).—Adolf Hitler's recent statement that Germany must “export or die” took on added urgency today when the Reich reported an adverse trade balance for January of $12,440,300. Exports for the month were reported at $176,973,300 against imports of $189,413,600, in December the Reich had an unfavorable trade balance of $14,848,100, with exports amounting to $202,255,200 and imports $217,504,600. During the latter part of 1938 exports of the Reich developed an unfavorable trend in relation to

adverse trade balance for that year totaled $173,762,900.

MUNICH, Germany, Feb. 18 (U. P.)—The state has closed the Catholic Faculty of Theology in Munich after a long dispute with church authorities, it was learned today. > The friction started when Prof. Hans Barion was appointed to the chair of church law, apparently

imports with the result that the |

German Trade Baldnce

Unfavorable

without consulting His Eminence Michael Cardinal Faulhaber. The Cardinal then advised students not to attend the Barion lectures.

BUCHAREST, Rumania, Feb. 18 (U. P.)—While a German commission is here discussing development by Germany of Rumania’s oil and minerals, it was disclosed today that France has arranged for the. purchase of 400,000 tons of gasoline and 100,000 tons of lubricating oil, It was believed France would invest in Rumania’s armaments industry in return. Great Britain also has stepped into the Rumanian picture with a project for development of raile ways and ports on the Black Sea.

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