Indianapolis Times, Indianapolis, Marion County, 24 February 1939 — Page 4

ction Is Expected |

Today in

Gross Tax Rate Cut] *

Mass Protests of Farmers ‘And ‘Small’ Merchants Are Weighed.

(Photos, Page 13)

The Indiana _ Senate Finance Committee was to meet in executive session today to act on a bill to halve the retailers’ gross income tax rate, which drew some 10,000 farmers -and merchants to the State House rotunda for a public hearing. ‘Senator ° Frederick Eichhorn (D. Gary); committee chairman, said the group. would “waste no time” in reporting the bill to the Senate floor. However, before. this is done; he said, the committee would “consid- ”: the sliding scale proposal of Senator Jacob Weiss (D. Indianapolis), ‘which would graduate the _ gross income tax rate from % of 1 per cent on incomes under $15,000 to slightly over 1% per . cent to persons -or corporations grossing one million dollars or more a year. Passed in House Unanimously ‘The bill which was discussed by representatives of retailer groups and the Indiana Farm Bureau yes- . terday afternoon, would reduce the: retailers’ rate from 1 per cent to 3% of 1 per cent and also lower their: exemptions from $3000 to $1000. It was introduced in the House and ‘passed by unanimous vote. After first reading in the Senate, it: was referred to the Finance Committee. ; ‘At -the hearing, proponents of the bill charged that the present rate is “strangling the small retailer and small town businessman out of existence.” Opponents of the cut argued that _ a reduction in the rate would “greatly hazard the present high standard of the Indiana educational system.” Governor Townsend, in refusing to confirm or deny reports that the Administration was opposed to the bill, warned the lost revenue would have to be replaced in some other way or the State's distributions to local school units would have to be curtailed. Administration Support Claimed The Weiss sliding scale proposal is understood to have some support from Senate Administration leaders. According to its author, it would in- |. crease the State’s revenue while distributing + the burden more equitably. Some legislators, however, have expressed doubt as to its constitutionality. Under provisions of the plan, the first $15,000 of annual gross income would be taxed at 1% of 1 per cent; $15,000 to $25,000 at 1% of 1 per cent; $25,000 to $50,000 at 3% of 1. per cent; $50,000 to $75,000 at 1 cent; $75,00 to 1 million at 112 per

Senator White said. and calm and not be carried away.”

Senate on

HARDY CHARGES LIQUOR ‘PLOTS

Charges Colleagues Try to Halt Reforming of State Setup.

(Continued from Page One)

clared,” but the Governor is human like the rest of us.”

“J Know All Angles”:

Senator Payton continued: “1 know all the angles of this fight to oppose this legislation. There have been six weeks of the worst type of machinations to beat this honest legislation that has ever been worked in the Senate.” “Are you impugning my motives on this legislation, Senator Payton?” Senator White asked. “You know how I stand on this liquor question. I have done everything to try and work out a good liquor bill. “I am pleading ‘with Democratic members not to throw this bill on the floor in an immature state. I'll go along with Senator Hardy and suspend the rules tomorrow.” Senator Claude McBride (D. Jeffersonville) then went to the support of Senator White and asked delay. Senator Jacob Weiss (D. Indianapolis) then offered an amendment to make the bill a special order of business for tonight. Then Senate Democratic leaders

gathered about Senator Hardy’s desk

to attempt to persuade him to go

along on the plan to delay the consideration until tomorrow. .

Senator Hardy Speaks Senator Hardy,

“You're not going to kill this bill.

The Republicans have said that they would not even consider the budget measure unless there was some action taken on liquor reform and I wouldn't blame them.”

Senator Floyd I. Garrott (R.

Battle Ground) then moved to table Senator White's motion, indicating support of Senator Hardy.

“I think we are in a little turmoil,” “Let us be cool

Senator White then moved up and

down between the desks telling the Democrats that “the 8 o’clock’ motion would be fair” and “go along per with that.”

Senator Weiss continued speaking

cent, and over one million at 2 per |on his motion after an amendment

cent.

Senator Weiss pointed out |had been offered by Senator Garrott.

that with the lower rates for the |Lieut. Gov. Schricker said from the first $75,000 of their income, those rostrum:

grossing over one million would pay

“Senator Weiss, stop. talking. The

actually between 11% and 2 per |chair is serving notice right here

cent.

and now that things are going tobe

L. PF. Shuttleworth, managing di- | done in a businesslike way.”

rector of the Associated Retailers of Indiana, issued the following statement in connection with this proposal.

Adjourn Quickly -

“The ’talk about a graduated gross another motion and presented it. It income tax is evidentiy designed to|would allow all bills passed to en-

confuse legislators and the public.

grossment today to be brought out

Kentucky passed such a tax law|on third reading tomorrow. The

which was invalidated by the U. S. Supreme Court.. Then the attorney general's office in Iowa attempted to write a law with similar effect. tak"ing into consideration the ruling of the Supreme Court in the Kentucky case,

motion was adopted on a voice vote. Then Senator Weiss’ motion to make the liquor bill a special order of business tonight was adopted, also on a voice vote. Before any one could speak further, Senator White moved to

“The Iowa law also was invalidat- adjourn and Mr. Schricker quickly

ed by the U. S. Supreme Court. It seems, therefore, to be conclusively established by high court decisions - that graduating a tax solely on the volume of business cannot prevail.” Principal speakers at yesterday's hearing were D. Wray DePrez of Shelbyville and Frank Pyle of VanBuren, representing the merchants, and Hassil Schenck, Indiana Farm Bureau president, and Anson Thomas, head of the Bureau Legislative Department, speaking for the farmers. DePrez Leads Off Before the hearing more than 5000 farmers marched down Market St. from Tomlinson Hall to the State House bearing signs ‘Save Our Gross Income Tax Law.” Merchants, meanwhile, swarmed the State House - wearing tags asking

“relief” from the gross income tax.|

Mr. DePrez was the first speaker cand declared that retailers. constitute the third heaviest taxpaying group in the State. “It is a matter of regret,” he said, “that ‘there should be any opposition at all to an adjustment of taxation ‘which seeks only relief for an overburdened group and adds nothing to the burden of any other group. Mr. Pyle said the “small retailer is being strangled out of existence by his excessive overhead, most of which is consumed in taxes.” Mr. Schenck pointed out that the gross: income tax now is carrying 20 million dollars of the State’s tax 1 and: is paying 14. million dolannually on teachers’ salaries. “It has been responsible,” he said, “Sor ‘maintaining the Indiana school system on an exceedingly high €; Our State has come through pression unsurpassed by any .gtate in the Union in keeping':onur ‘school- doors open and our teachers paid.” Mr. Thomas declared that “property still pays approximately 57 per ‘cent of all costs of government | and public ser services in Indiana.”

MRS. GARRIOT DIES; SERVICES MONDAY

An ‘Indianapolis resid resident 20 years, Mrs. Margaret J. Garriott, died today at her residence, 5606 Lowell Ave. Mrs. Garriott was born in Scott County, She had been a Downey Avenue Christian Church member here. Services will he held at 10 a. m. Monday at Flanner & Buchanan Mortuary and burial will be at the Park Cemetery, Greenfield. Mrs. Garriott is survived by three daughters, the Misses Mary, Bae and Hester Garriott, all of- Indian-

asked for a vote and he banged his

gavel down and said ‘the Senate is adjourned.”

To Library Thieves, It’s Fine Stuff

Attention burglars: You have the word of Librarian Luther L. Dickerson that pickings are slim in branch libraries. Of the money col‘lected each day in fines, not more than $1 is leit in the ‘branch cash boxes. The rest is kanked daily. This came up today because burglars last night ransacked the Broadway Branch and got ‘but 84 cents. That's all there was.

BOY'S EYE TREATED Five-year-old Billie Harris, who accidentally touched his right eye with a hot poker while playing at his home, 29 N. Greely St., yesterday, was to go to City Hospital today for examination and treatment.

visibly shaken |- with emotion, declared:

Senator White, who is Rules Com- ! mittee chairman, hurriedly prepared

DEPARTMENT ae

Efror fw BMI .. ADJUTANT- GENERAL —

LAND MILITIA— Personal services ...

Material

NAVAL FORCES— Personal Services . cececciccscccce Operating expenses

$000000000000000000000000,

Personal services Operating expenses.

‘CENTRAL PURCHASING BURFAU— Personal services PLANNING BOARD—

Personal services Operating expenses

* STATE INSTITUTIONS’ SUPERVISION—

WOMEN’S PRISON—

Personal services

BOYS’ SCHOOL—

Personal

RICHMOND HOSPITAL— Personal services ... SOLDIERS’ HOME—

Personal services Operating

Reductions before today...

eeccssevevsee

"Budget a - a Glance

STATE POLICE (Fixed Chars) FA er te? La Mien 161,700.00 = i 1 ©

Operating expenses .ccescssccessses

sacccesecne cssve

SOLDIERS’ & SAILORS’ MONUMENT

ssevee spssenssee

. Personal Services c.icecccecescoies Operating expenses’ desonavancasanes

esseabossscsedas

Operating expenses rtvaievensiviome

Services Juisescrsssnscscse Operating expenses’ eisessssnssetee

Seer sggsstegere

EXPENSES coesccass cesses Appropriation bills as introduced seecovccccecccccnrss cessneessse,.$84,801,416.00

Today’s OUE ccovcvcoccssscongpstossscngese 199,400.00

TODAY'S BALANCE ccisesccccsciocess

(In three meetings the House Ways and Means Committee has completed work on 40 of the 113 pages in the twin appropriation bills.)

: . Budget

Recom=da

198,000,00 130,400.00 . 95,000.00 >

. 2200.00 > 22,000.00

22,000.00 -- 21,000.00

119,600.00 Lo 15,000.00

20,800.00 16,200,00

33,800.00 $0,000.00 23,400.00... . 3,000.00 9,00000 500.00

16,000.00

63,000.00 27,000.00

4,000.00 5,800.00

40,000.00

44,000.00 42,000.00

47,800.00

25,000.00

180,000.00 12,000.00

150,000. 00

205,000.00 , 162,000.00

280,000.00 T0000 10,000.00

214,000.00 228,200.00

14,000.00 19,200.00

200,000.00 204,000.00

«$470,526.00 Total cut.. 60,126.00

. /$84,181,290.00

e00eettsees

$670,000 GUT

Effort to Be Made to Get Measures on Floor by Tomorrow.

(Continued from Page One)

per cent cut in the State Police operating expenses be restored, the Committee again approved the reduction which it had made Wednesday. Operating expenses run hand-in-hand with personal services,” he said. “The Department cannot operate with a cut either in personal services or operating expenses.” The Committee also cut half a dozen items in the Adjutant General’s division. after hearing Adj. Gen. Elmer H. Straub state that his department “couldn’t get along with the items as they are in the

bill.” Straub Defied

Personal services, operating expenses and materials for administration and the land militia were reduced from a $403,400 total to $366,000. Naval forces received an operating expense and personal service appropriation of $46,800 in place of their requested $43,000. The Committee left the Alcoholic Beverages Commission’s total . ap-

2 propriation at $675,000 after hear-

ng Hugh Barnhart, State Excise Commissioner, ‘declare his department already had reduced its force. “After the first report of the Budget Committee we reduced our office staff from 30 to 26 and our police force from 59 fo 35. We also dropped six investigators. 2 He further said that since the department’s inception in 1933 it had collected $31,165,194 and spent $1,460,193. During 1938, he said, the department collected $7,000,000.

5 per cent of what we collect.” When Committee members asked him why his officers are paid $150 a month while the State Police only receive $135, Mr. Barnhart said: “Our men work seven days a week, receive no uniforms and have

‘Ino pension fund. If you cut the

personal services appropriation it will result in our having only 10 men left. abolish the department.”

‘Requires Plainclothesmen’

Rep. Robert A. Hoover (R.

|Goshen) asked him if the State

Police could not take over the functions of the excise police.

could handle the additional burden,” Mr. Barnhart said, “and besides our work requires men to be plainclothesmen.” After several Committee members criticized alleged lack of law enforcement in some cases, Mr. Barnhart replied: “If I had. 100 men, then .eriticism of the department would be justified. You're asking me to police the entire State with 35 men. Under that condition I think our work speaks for itself.” Only cut made by the Committee in State Hospital appropriations was a reduction of $10,000 in the personal service item of the Richmond

institution. including

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personal services, of the supervision of State Institutions Department was slashed $31,000 while a $3000 reduction was made in the same accounts for the Soldiers’ and Sailors’ Monument.

Prison Fund Slashed

Single prison fund reduced was the Women’s Priscn which received a $4000 cut in personal services and a $5800 slash in operating expenses. Other slices included a $2800 reduction in the personal services appropriation for the Central Purchasing Bureau and $33,200 less for the State Soldiers’ Home operating expenses, including personal services.

Appropriation requests approved without Committee reduction, include, to date, those of: Stout Field, Grand Army of the Republic, Spanish War Veterans, Veterans of Foreign Wars, Disabled World War Veterans, Battle Flags Commission, Grave Registration, Interstate Cooperation Commission, Housing Board, Indiana State Prison, Indiana. Reformatory, Indiana State Farm, Indiana Girls’ School, Cen“|tral State Hospital, Evansville State Hospital, Madison State Hospital, Logansport State Hospital, Indiana State Sanatorium, Ft. Wayne State School, Muscatatuck Colony, Indiana Epileptic Village, Blind School, Industrial Aid Board for the Blind, Deaf School and the Southern Indiana Tuberculosis . Hospital.

. HOOSIER, 98, DEAD PORTLAND. Feb. 24 (U. P)— Funeral services will be held at the Salamonia Methodist Church this afternoon for Miss Orinda Cunningham, who died on a farm in Noble Township Wednesday at the age of 3%. She spent her entire lite on the arm. |

House Sends Governor Bill After 65 to 22 Vote; Foes Cry “Lobby.”

day passed and sent to the Governor the bill fo extend the State’s milk control system for another iwo years after this Senate measure, which failed yesterday to obtain a House constitutional majority, was called down again. According to House rules a bill in this parliamentary position is not debatable. The request to call the measure down again was made by Rep. C. Y. Foster (R. Carmel), who defended this measure during yesterday’s heated debate.

Bond (R. Pt. Wayne) first introduced a motion to make this bill a special ‘order of ‘business and thon to postpone it. indefinitely. Both

|times he was challenged by Rep.|

Edward H. Stein (D. Bloomfield) who said debate was not possible.

Foes Charge Lobby

However, opponents of the measure were able to get in a few biting statements charging that milk. in-

this Legislature.” Rep. Bond withdrew both of his motions before the roll was called. Rep. Robert H. Heller (D. Decatur) introduced a House resolution suggesting administrative practices for the State Milk Control Board, and the motion carried on a voice vote, Under this bill, which now needs only the Governor’s signature to become a law, the State Milk Control Board would be continued until June 31, 1941. ’ The Heller: resolution said in part: “Be it resolved by the House . . . that it go on record as favoring in the future administration of the milk, control law by the Milk Control Board, due and timely attention and consideration be given by the board to the prices of milk paid to the producer and by the customer, and that such prices be changed when and as often as it is found to be to the advantage of the public and the industry, respectively. “That the board discourage an excessive production of milk on the various markets in the State, it being recognized that surplus milk presents a serious problem as the prices which can be realized from it for other uses are much less than those obtained for milk sold for consumption in fing form or, as cream.”

Evans Speaks Avainst xe

Speaking against this measure, Rep. Herbert H. Evans (R New Castle) declared: “In my life I have never liked the idea of high pressure. There has been more money spent in this Legislature to re-inact this milk system than there ‘has been on, the liquor bills.

Legislature have I seen such a pows erful. lobby. . There is a lot of money being poured in here recklessly

On a 65 to 22 vole the House tos

To reopen debate, Rep. Charles

terests had a gigantic lobby and]: {were “recklessly pouring Toney into \

On Manager Plan Pushed :

The House resolution reat. - ing a committee to select the best meth for Indiana cities to obtain the city manager form of government was ready for second reading in the Senate today. The measure was reported favorably by the Senate Judiciary “A” Committee last night after it was smended to make the reporting date of the commission Dec, 1, 1940, instead of Oct. 1, 1940. An identical resolution previously was passed by the . Senate but was not sent to the House after a motion was introduced holding it for further consideration. The measure is sponsored by the Indianapolis Junior Chamber of Commerce. 3

JURY MAY GET HARRELL CASE

Lagro Woman’s Trial At Marion.

MARION, Feb. 24 (U. P.).—A jury of 10 men and two women was ex-

today in the murder trial of Mrs. Rilla Harrell, 47-year-old Lagro housewife accused in the death of Paul Bartholomew, Lagro High School official. Defense counsel rested its case

{ yesterday, and all that remained be-

fore the defendant's fate is placed in the jury’s hands were final arguments. Mr. Bartholomew was wounded fatally by a pistol bullet last Nov. 11 in the Harrell home. The defendant, on the stand for two hours yesterday, denied that she shot the teacher and contended that the weapon discharged accidentally while she and Mr. Bartholomew grappled for it. “We struggled for possession of the gun,” she testified. “During the

we rolled across the floor I heard several shots. Then Paul said, ‘I'm shot’ I went out of the house immediately to find my husband and to look for help.” Under cross-examination, Mrs. Harrell testified she did not drink liquor, except for medicinal pur- _{ poses.

to postpone indefinitely this bill; I know everyone of you has been subjected to a great deal of pressure.

pected to begin deliberations late

scuffle we fell to the floor and as

~ [BILLIS PENDING ON

DEATH SENTENCES

Attempt to End Capital Punishment Fails.

Pending on third reading in the Senate today was ‘the House bill to

either life or death sentences for

. convictions of charges of murder

in connection with rape, arson:or robbery after an attempt to abolish capital punishment entirely ‘had failed. Under present law, capital punishment is the mandatory sentence in cases involving murder in-con-nection with the three aforementioned crimes. Senator Jacob Weiss (D. .Indianapolis) introduced the

|unsuccessful anticapital punishment

amendment to this measure. : “The State has no more right to

“Only God can grant a life gad only God can take away: that e.” His amendment was killed after other Senators pointed out that the bill in its present form had humanitarian features since it allowed juries to exercise a choice of sentence in cases of this type A measure to abolish capita] pun-

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TWO HURT SLIGHTLY IN AUTO ACCIDENTS

Two person were recovering today from injuries received in trafic ac-

cidents. Miss Marion Bartlett, 17, of 2045 N. LaSalle St. was bruised on the right leg when her car and one driven by Mrs. Jesse Henderson, 1818 Broadway, head of the Marion County Accident Prevention Bureau, Sollided at 24th St. and Central ve. Mrs. Margaret Lemon, 306 E. New York St., was injured slightly, police said, when she walked into the side of a car driven by Damon M. Sergener, Louisville, at Market and Pennsylvania Sts. Police arrested 37 persons yester= day on traffic violation charges.

OWENSVILLE MAN DEAD PRINCETON, Feb. 24 (U. P.).—J. Frank Hudelson, 85, the oldest resident of Owensville, died yesterday from heart disease.

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