Indianapolis Times, Indianapolis, Marion County, 21 February 1939 — Page 4

eh 7 2

Gross Tax

b Sensis Committee to Hold Public Hearing on Bill Thursday.

The TAdiana Farm Bureau today Joined officially the forces opposing the bill to reduce by 50 per cent the

retailers’ gross. income tax rate, it was announced. The Senate Finance Committee is to hold a public hearing Thursday afternoon on the measure, which was passed unanimously by the House of Representatives, The bill would reduce the present rate of 1 per cent to 1% of 1 per cent and slash the exemption from $3000 to

$1000 Immediately after passage of the - bill by the House, Senate Administration leaders conferred with Governor Townsend at which time, it is understood, the leaders expressed several objections to cutting the tax rate now. Later Governor Townsend would ‘neither confirm or deny there was Administration “heat” on the bill, but ‘his office said that within 24 hours after the House's favorable action, it received nearly 100 let- = ters from farm and labor groups } “h asking that progress of the bill be rh stopped.

Denies Farm Bureau’s Claims

Although the Farm Bureau annotinced it expected 20,000 farmri ers and property owners to gather i at -the State House for the hear- - ing, Lewis Shuttleworth, secretary : of the Associated Retailers of Indiana, said “a good share of the

farmers are in favor of the bill despite what some of their organization leaders say.” He said the retailers and farmers understand each other’s problems and that “we were surprised by -the support we have received from farmer representatives in the Legislature.” He poined out that the author of the reduction measure was a farmer. However, Hassil E. Schenck, InPU diana Farm Bureau, in announcing 5 the Farm Bureau's opposition to the bill charged that “when members of the house of representatives \ voted to reduce the gross income tax rate . . . they struck the most devastating blow to Indiana's taxing system that has happened in the State's history.” “Pointed to and studied by tax experts of the United States, the Indiana g income tax system, supplementing portion of property taxes, stands a most sucy cessful and fair system to raise } revenue for governmental costs,” he said. “The system made possible the continuance of our schools when property tax failed to provide sufficient revenue.”

.. Fears More Property Tax “Merchants have fought hard to change the system, for the reason : it has been stated that small 4 merchants were in an unfair position. Yet an analysis of the present

measure proves that while the larger merchants will benefit greatly, the State will lose about four million dollars in revenue annually; and the little merchants, who greatly outnumber the larger merchants, actually in many instances will have ) an increase in gross income tax to pay. “The measure would not equalize, but opens wider. the breach, with property taxes bound to make up whatever the deficiency may be. “A public hearing is to be held A next Thursday at 2 p. m. in the ' State House, and the call to 20,000 property owners to attend this hear- | ing will bring the most concerned yo crowd of the session. “Should the measure become law, the next move to recover funds equal to the loss is to take $300 ‘from the $700 now paid to each

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teaching unit, thus picking up six|.

million dollars of the State budget’s loss, which in turn means just that much more property tax.

: “Indiana farmers fought for L years to acquire tax equalization as and they believe, since 57 per cent : of all State costs still are paid by { property; that they are paying even

madre than a fair share of the tax “This. gross income tax revision downward: is not reducing taxatioh, but merely shifts the burden to others who cannot figure their operating expenses in the price of their commodities.”

/ Action on Welfare Bill Waited After Hearing A ‘Senate bill to return some of the administrative power formerly exercised by county welfare boards i to ‘these local agencies was pending | today in Senate Judiciary “B” Committee following a public hearing last night. Samuel Cleland, representing the Taxpayers Research Association of

Ft: Wayne said that under county control in 1937 welfare administra-

«tion cost $326,217, while «in 1939 ‘oe under State control the cost rose to " $970,092.

Speaking against this bill, State Welfare Director Thurman Gottschalk said: “This bill would place the administration of relief back into the hands of the local county boards of

with the benefits derived from investigation of each case. “In addition to the evils of this system,’ I. am not so sure that it conform to the requirements of ‘the Federal Social Security Act. It ‘might preven prevent us from receiving Federal funds to defray a portion of welfare costs.”

RAPPAPORT LAUDS . PUBLIC SOCIAL UNITS

i public social agencies occupy a * field which the private agency canno “hope tb cover,” Leo M. RappaBs port, local attorney and member of

ily weltare Society, declared yesterMr. Rappaport spoke at a lunch-

| gott of the Indianapolis Council of |

RL Agencies at the Y. Ww. C. A hy We Should

Farm Bureau J oins|

public welfare and would do away].

. the Board of Directors of the Fam-||

Cut Fight;

‘Politics Levy O.K.d

House Committee Reports Favorably on 75 Per Cent Rate.

The House Ways and Means Committee today reported favorably on the bill to place a 75 per cent tax on net incomes derived by per‘sons through political influence. The committee voted unanimously to approve the bill at a meeting yesterday afternoon. Also on a unanimous vote the committee decided to kill the House measure to give the Administrative |2 Building Council broad powers to establish building codes for all public buildings and residences occupied by more than one family, While a majority of the committee ‘decided to return a favorable report on the House bill to require specific legislative approval of all construction undertaken by State departments and agencies in excess of $100,000, a minority report opposing this bill is to be returned.

Calls for Special Board

The measure to provide the 75 per cent tax levy on “unjust enrichment,” would establish a special board to collect this tax from beer importers, salesmen, attorneys and others who receive profits through dealings with the State or its political subdivisions. The measure would be retroactive for the last 10 years and would make gross income tax records available to the special tax collection board in tracing down profits thus received.

visions that many persons because of political connections are able to amass large profits through monopolies or through dealings with the State. Money collected through this tax would revert to the common school relief fund. Under the present system of financing State construction a lump sum appropriation is made in the biennial budget bills and is administered by the State Budget Committee. The measure which is to be brought to the floor on a split report would be applicable to the State Board of Agriculture, a semiautonomous govenmental agency,

ELEVATOR BILL REPORTED OUT

House Gets Inspection Measure Without Any Recommendation.

The House Public Safety Committee today reported without recommendation a House bill providing for a state elevator inspection bureau after proponents of the measure called many of the more than 4000 elevators in Indianapolis “unsafe.” The Committee also y approved for

extend the authority of the State Fire Marshal to include inspection of fire hazards and construction of all buildings of two or more stories in height. Edward Spangler, business representative. of the International Union of Elevator Constructors, Local 1034, said that “states like Wisconsin, Pennsylvania and California which have elevator inspection laws have the lowest accident records.”

Cites Casualties

Mr. Spangler cited a dozen instances throughout Indiana where persons had been killed or injured because of improper or no inspection, : “Only last month,” he said, “a young boy fell from the third to the first floor of a local apartment and broke his right foot. ; “Two children, one 5 years old and the other 11, have been killed in | Indianapolis within the last year because of elevator doors which could be opened when the elevator was not at the floor.” FRep. Arnold C. Nahand (R. Inianapolis), author of the bill, said there ‘were more than 4000 elevators in Indianapolis and “many of them were: unsafe.”

Provides State Bureau

His bill provides for a state elevator inspection bureau under the State Labor Commissioner, effective Jan, 1, 1940. Expenses for the first six months’ operation would be paid by appropriation to the Labor Division. Expenses thereafter would come from the $1, $3 and $5 inspection fees. Violations of the provisions of the act or neglect in paying fees would carry a maximum fine of $100 and costs for a first offense and a $200 fine thereafter, Proponents of the measure pointed. out that few accidents are brought to the public's attention since. newspapers receive accident reports from the Police Department. In most cases, they said, elevator accident victims “are taken to the hospital by persons having an interest in the buildings where the accident occurred and they do nos report it to the police.

Refers to Inspection

Rep. Nahand pointed out that Indianapolis has one local inspector for the whole city. “If this passes it will save between 10 and 15 lives in Indiana annually,” he stated. A committee report without recommendation usually has the same effect as a favorable report. In both cases the measure is automatically advanced, to second reading unless a motion to indefinitely postpone is introduced. from the floor.

The measure states in its pro-.

passage a Senate bill which would |f

Plan Calls for Law School [°F Deans to Assist State Admission Board.

Supreme Court members today had under advisement the report of |

its special investigating committee recommending appointment of an

advisory committee to assist in

drafting questions and reviewing examination papers of bar applicants. The committee, named several weeks ago to investigate present bar admission practices, praised the “high standards” which the State Board of Baf Examiners now uses. The investigating group was composed of five attorneys who cone

STUDIES REPORT | ON BAR EXAMS =

aminers to for man appeal body eg students who 1 they had’ been di Against might bring thelr

complain ) The investi te aiitas also e: gating os

rT that the

Law Examiners be composed of ate

torneys in active practics only and

that no one engaged in the teach-|

ing of law be be- eligible to. serve. on the board. Besides approving the method off examination and the dhe Beara questions now used by: Examiners, - the ‘investiga

mittee also Ine invention Hg. som sev- ;

eral practices now. used by the

Do F. Stiver, State Director: of | Public Safety, has requested a -| hearing before the House Ways Means Committee. mittee was to hold a Beazing on. the new budget. today.

The coms

{the best method of

'HOUSE BILL ON | MANAGER PLAN

; Oppostion to ‘Commission | Proposal is Reported | a To Be Gathering. |

rng Sensis. Judiolary apy Com-

“Iimittes was to meet today to con-

‘Isider the House concurrent resolu-) ‘| tion to set up a commission to study ie the ! Cites Bangg plan for Indians;

Some - opposition is reported to | nave oppo Pag 50 4 a in per r, the 9 able being thit a te w Peinoipal o want the ef tion to become an lose in the 1640

; cau ast week, Ascii pi the Indi- ‘| ana polis’ Junior Chamber of Com-|

merce, its chief, proponents, -were to megt today or tomorrow to make plans for overcoming this opposition. Identical joint resolutions were introduced in both chambers several weeks ago. The House measure was referred to ‘committee, toured the regilar legislative channels of seconc. and third reading and then was passed Saturday and sent to the Senate The Senate; however, passed its resolution immediately on a voice vote, but instead of being sent to the House, a motion for reconsid{eration ‘was entered in the’ journal.

CLOSE CITY HALL IN WASHINGTON’S HONOR

City Hall will be closed on Washington’s "Birthday, tomorrow, Msayor Sullivan announced today. All departments of the Federal Building . will be closed, except the mailing division of the Postoffice. There will be no regular mail deliveries, but special delivery service will be maintained, according ‘to

“HEALTH NEASURES GIVEN 6000 REPORT. ~

general election, Fearing * the measure will be

Addiph Seidensticker, postmaster,

State Board Reor Reorganization Is Among Proposals.

A series of health measures ine cluding ‘a bill to reorganize the State Health Board were reported favorably in the House today by the House State Medicine and Public Health Committee. The committee also was to return

a favorable report on the Senate’ bill: to codify the Indiana food, drug and cosmetics statutes. Dr,

Verne K. Harvey, State Health Di-

rector, has said that this bill would -

vest almost unlimited power in the State Health Board to license any producer or handler of food - or

drugs. He added, however, that the

Board realizes that any attempt to exércise unreasonable power would

mean abolition of this agency by

the next Legislature.

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