Indianapolis Times, Indianapolis, Marion County, 6 March 1939 — Page 2
DUSE REJECTS SENATE'S HIKE IN BUDGET BILL
Action of Republican Bloc Means Committee Must - Find Agreement.
(Continued from Page One)
| | bill calling for a $79,743,164 appro- | priation. On top of the Budget Commit-
‘| tee’s figure, Senate Democrats in|.
. Finance Committee added "$41,182.30 | | and on the floor included $100,000 for a Porter county harbor pro- | ject. | ~The budget bills now call for ! [2 total appropriation of $84,942,-
S Senate’s action was ‘taken on adeption of a majority Commit-
tee report over ‘opposition of Repub- | =
licans. Entirely New Measure
The House budget recommenda-
tion as sent to the Senate was not . the Budget Committee's appropria‘tion bill as sliced by the Ways and Means Committee as first anticipated, but an entirely new measure
substituted technically as an amendment when the original bill was on second reading in the lower chamber. : {As approved ‘by the Ways and Means Committee the budget bills called for an appropriation of $83,473,050. The new G. O, P. proposal called for thé appropriation of $79,743,164, and was offered as an amendment by Rep. Paul Brady (R. Muncie). It was passed 52 to 48 over the Democratic minority. When it reached the Senate Finance Committee it was scrapped.
“We just tore it up and threw it | in the wastebasket,” Senator Fred-
erick Eichhorn (D. Gary), committee chairman, said. When the committee’s majority report came down for adoption Senator Eichhorn explained reasons
for the new budget bill and the in-|
creases | declaring “if the ‘government is to be carried on satisfactorily there must be money to do! it,” : G; O. P. Cuts ‘Dictated’
He charged that the G. O. P. recommendations in the minority report were “dictated by the State Republican Central Committee for political: reasons.” Senator William Jenner (R SHoals), | Finance Committee mem- | . ber and minority floor leader, said “the . Republican bill was not dictated by the G. O. P. Central Committee but by the people of Indiana.” He said the minority of the Committee had adopted its report because ‘we followed two important rules of government that you can’t spend more tham you take in and can’t tax beyond ability to pay.” On second reading Senator John W. Van Ness (R. Valparaiso) offered
Members of Congress,
the Suprerie Court, the Cabinet and the diplomatic corps hear President Roosevelt address a joint session on the 150th anniversary of the first Congress center with his hands on the reading desk. At the extreme left are Speaker Bankhead (left) and Vice President Garner (right). House floor, beginning at the center aisle are Justices Frankfurter, Reed,
The President is in the On the
PRIMARY BILL
LOSES IN ‘LAST DITCH BATTLE
Denton Defeated in Effort to
Get House Action on Measure.
A “last ditch” attempt to secure final passage of a bill to extend the
| |direct primary to include the offices
of Governor and U. 8. Senator failed in the House today. /
Rep. Winfield K. Denton (D. Evansville) moved that constitutional rules be suspended on the Senate
‘bill on this subject to enable pas-
sage of that measure in the House before adjournment, This bill is on second reading, and failyre of the Denton motion means that it will remain in that position when the session ends. On a roll call vote on the Denton
# motion, the House voted 55 ayes to
TimesiAcme Photo.
Black, Roberts, Stone, Butler, McReynolds, Chief Justice Hiighes, Secretary of State Hull and Treasury Secretary Morgenthal.. Second man from left (hands crossed) is Sir Ronald Lindsay, British Ambassador. On the left of the President is Senator Barkley (D. Ky.) ma-
jority leader.
Among others shown are Senators Pittman, Harrison,
McNary, Austin, Smith, Barbour, Vandenburg, King and McCarran,
HOUSE REJECTS GROSS TAX BILL
Senate Plan to Provide ‘Sliding Scale’ Is Turned Down. f
(Continued from Page One)
for retailers was introducec originally in the House... As passed by that chamber, it would have provided a gross income tax raie of onehalf of one per cent for retailers and would have lowered their exemptions from $3000 to $1000
Draft Different Bill
The Senate, however, passed and ‘returned to the House an entirely different bill. This Senate proposal which was substituted for the
House plan was offered by Senator Jacob Weiss (D. Indianapolis). Actually the Senate maasure would set up an entirely new licensing law. Retailers and service 2stablishments would be charged license fees ranging from 3-10 of 1 per cent on the first $15,000 of gross receipts up to 2 per cent of all annual receipts in excess of $95,000, As
an amendment to include $100,000 to enable the State to aid in establishing’ a harbor and terminal at the mouth of Burns Ditch in Porter county, on Lake Michigan. Senators from the northern counties asked acceptance of the request ¢eclaring that it would bring a 25 million dollar steel plant to the site. It was pointed qut that the expenditure of the appropriation was conditional upon the establishment of the steel plant. The Democratic report was adopted, the new appropriation for the harbor was accepted and the entire bill passed under suspension of rules. It now calls for an increase .of $3,773,446 over the appropriations bill under which the state is operating now. Senator Walter R. Beardsley (R. Elkhart) today challenged the story of his Democratic collegues in the ‘ Senate that the Republican majority in the House had made large budget ' slashes as “a grandstand play. ”» “The budget as passed by the House and supported by the Republican minority in the Senate is a workable budget,” he said. “It was carefully worked out item by item so as not. to hurt essential State functions. “I absolutely believe that the State can be run and should be run on the proposed figure of 80 million dollars for the biennium. This amount is only slightly less than the appropriation for the last two “years and is only about 6 per cent less than the amount approved by; the State Budget Committee | “The Republicans are not making a grandstand play. They, are trying to follow the mandate of the last election.”
Knapp Appoints Group | To Conduct Probe |
Acting under terms of a resolution passed several days ago in |the House, Speaker James M. Knapp today appointed the seven-member committee to investigate all activities of State and local government. Those named were Reps. Herbert H. Evans (R. New Castle), W, O. Hughes (R. Ft. Wayne), Paul Brady - | (R. Muncie), William Brown (R. “|'Kokomo), Frank T. Millis (R. Campbellsburg), J. Earl McCurdy (D. La Porte) and Leland L. Moore (D. Perrysville). The House resolution calling for this probe was broad enough in its scope to enable an investigation of counties where Republicans last fall claimed election frauds. It also would include a check of all State departmnets, No appropriation was provided or this committee, which would be equired to organize and begin its work by May 1, and it was said .its expenses would have to be paid by private donations. The investigating resolution was nassed with Democratic support, al- | though the Democrats later made an unsuccessful attempt to amend the resolution to provide that the sheckup be made of governmental activities since 1924 and include several former Republican administrations.
approved by the Senate th: bill would grant an exemption of $12,000. Despite the protests of retailers; Senator Weiss said his plan would effect a gross income tax sevings to this group of $1,062,329 and of one miilion dollars fo service groups. ; There was no debate on the measure when it was passed. under suspension of the rules Saturday night. An amendment was inserted, however, to exempt interstate business from the tax. Among objections which businessmen- now ‘are raising to this bill as modified by the Senate is the claim that this new proposal vould disrupt the basic State taxing structure and create complicated administrative .problems for the State.
Predict Legal Tarigle If also was predicted that this “sliding scale” plan would oring
larly in view of the fact that similar |
clared unconstitutional. To sustain their contention that the “sliding scale” proposal would aggravate rather than correct in-
some businessmen pointed out that under the present law a Business establishment must pay gross income tax on all receipts, regardless of whether it is operating at a profit or a loss, but the tax rate is uniform. Under the “sliding scale” proposal, they said, there would be no uni-! formity in the rates applying to competing businesses. Thus a big store operating at a loss migh’; be compelled to pay double the id ent rate on all receipts over $95.0
a year be! Objectiol s Raised Objections also have been raised to provisions of the bill which pro-
* Jvide that a merchant's books could
be checked by a representative of the Gross Income Tax Department and that businessmen could be sent to jail for six months or fined up to $1000 for engaging in business without first obtaining a license and paying the required fee. Under the plan approved by the House of providing a flat %4 of 1 ner cent for retailers, it was estimated the State would lose approximately four million dollars annually in revenue, It was said the loss under the Senate proposal would be either two or three million dollars, deperding on the court interpretation of the amendment dealing with interstate commerce.
APPROVES CCC PLANS WASHINGTON, March 6 (U. FP). —Acting Director J. J. McEntee of the Civilian Conservation Corps, today approved plans to enroll 107,051 youths and war veterans in the CCC between April 1-20 to bring it up to its authorized strength of 300,000.
{troduced in the House today
Raymond Clapper—
On Douglas
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HOUSE TO GET PLEA FOR JOB ECONOMY
Wingate Measure Would Cut ‘Overmanned’ Units.
A resolution requesting Governor Townsend to discharge one-fourth of the employees in ‘“overmanned” State departments was to be ins y Rep. Wilfred W. Wingate (R. Muncie). The resolution specifically names the Auto License, Gross Income, Store License, Highway, Alcoholic Beverages and Oil Inspection Departments. “Other states are reducing the costs of government and the Governor can, if he will, do the same thing for Indiana,” Rep.-Wingate said. “But if he is going to do anything about this situation which is overburdenng the taxpayers, he must begin now.” The resolution reads, in part: “Whereas, it has been stated that there is a possibility of a deficit in the next biennial appropriation and, “Whereas, some means must be founc to. meet such biennial appropriation deficit before it occurs, “Be it resolved that the House of Representatives respectfully request the Governor to cause to be removed from the payrolls 25 per cent of the present number of employe¢s in the various departments, namely the Auto License Department, the Gross Income and Store License Department, the State Highway Department, Alcoholic Beverage Commission and the State
plans in other states have beer de-!
equalities in the gross income tax,!
about numerous law suits par Jeon Jdechon md het Duk
ments that are overmanned, on or before the first Gay of April, 1839.”
House Approves Changes In Harbor Board Bill
The House today concurred in Senate amendments to the bill to create an Indiana harbor board to further the construction of a new port in Porter County on Lake Michigan. This measure was sent to the Governor for further action. It is merely’ an enabling measure to facilitate the construction on the proposed harbor dt the mouth-of Burns Ditech. The Senate has written in an amendment to the biennial budget bill providing a $100,000 appropria-
00 | tion to carry on the construction of
the harbor.
Members of the Porter County]:
delegat ion said that if the new harbor is huilt it will result in the establishient of a new industrial city in northern Indiana rivaling Gary.
ROOSEVELT URGES JEW-CHRISTIAN PEACE
WASHINGTON, March 6 (U. P.).
—Presicent Roosevelt appealed to-
day for brotherhood between Jews and Christians in the spirit of “our common Biblical heritage.” The President made his statement in accepting a medal voted to him by a distinguished committee of Jews, Protestants and Catholics for his efforts at promoting underarth between Jews and Chrisians
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ALICE FAYE HAS COLD
HOLLYWOOD, March 6 (U. P.) .— Blond Alice Faye was confined to - home today with a severe cold. he studio hoped she would be well | 1 ough to return to work Jomonon.
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FASHINGTON, March 6.—Apparently it’s to be young Bill Douglas for the Supreme Court—W. O. Douglas, chairman now of " the Securities and Exchange Commission. ‘That was the word passed around over the week-end, following President Roosevelt's return from his vacation cruise. the nomination to go to the Senate within a week or ten days. I always keep my fingers crossed in speculating about Presidential appoint-
Insiders expect
ments but the way in which the green light was given makes me think this tip is reliable. Political considerations make it expedient for Mr. Roosevelt to select his next Supreme Court man from the West. While Mr. Douglas fortunately can pass that qualification, he interests Mr. Roosevelt for quite another reason. Understands Corporations + Mr. Douglas is familiar with corporation structure and practice as is no other available man. Day in and day out, the preponderant business of the Supreme Court involves scrutinizing complicated corporation affairs. Mr. Douglas understands the modern corporation as Louis D. Brandeis, whose retirement created the pending vacancy, did when he went on the bench fresh from a spectacular career as the public's lawyer in the corporation world. In his experience here with SEC, Mr. Douglas has had daily closeup contact with corporation activities so that he ought to know the insides of present-day corporations like a surgeon knows his anatomy. Mr. Douglas operates from a New Deal viewpoint yet he has carried himself with a sense of balance which has won the respect, and an amazing degree of co-operation, from the subjects of his regulation. Mr. Douglas, if anyone, should be on familiar and intimately known ground when corporation lawyers come before the Court. Qualifies as Westerner Actually Mr. Douglas is a Westerner even though his professional career has been largely in the East, teaching at Columbia and Yale and as a member and later chairman of SEC. He was born in Minnesota and when 5 years old was taken to Washington state, where he went through grade, high school and college. His formative years were spent there, He is short, probably, on the intimate knowledge of the special mining, water and land law which is the subject of such a large proportion of Western litigation. The Supreme Court has no specialist on this sectional body of legal knowledge since the retirements of Justices Van Devanter and Sutherland, and the appointment of Mr. Douglas would not materially correct that deficiency. Apparently, however, the other assets of Mr. Douglas outweigh that
consideration.
UTILITIES BILL APPROVAL NEAR
Governor Expected to Sign Measure to Make Purchase Possible.
A hill designed to facilitate the purchase of public utilities by the City of Indianapolis was expected to be approved by the Governor today. It was passed by the Senate Saturday after previous approval of the House. The fate of three other measures affecting Indianapolis was expected to be decided today. The water bill was drafted because the City is studying the possible acquisition of the Indianapolis Water Co., Mayor Sullivan told Indianapolis delegates in the House
when the measure was introduced. A hill to redistribute’ the cost of track elevation projects, Hesigned to “open the door” for South Side track elevation is awaiting the Governor’s signature. This House meas-
ure was passed by the Senate at
Friday’s session. The third bill would amend the Barrett Law to prevent Indianapolis from losing money due to the cash payment of Barrett Law assess ments by property holders. The measure was advanced to third reading in the Senate Saturday night A bill passed by the Senate and awaiting House concurrence in minor amendments, would clarify the Indianapolis Police and Fire Department Merit Law. It would provide that chiefs of either division could be demoted for cause by the action of the Safety Board or ‘the Mayor.
Senate Passes House
Vote Count Measure
The Senate today passed. 34 to 3, a House bill providing for a central primary election ballot counting in the eight counties containing first and second class cities. The measure, which is similar to one of a group of Senate election reform measures now pending in the House, must now go back to the House for concurrence in amend-
ments, which included revision in the pay schedule for canvassing board workers. Safeguards for transmitting ballot boxes to the canvassing board headquarters, is also provided in the bill besides the principal provision that of a central counting system.
40 noes to suspend the rules. The motion failed, however, since a Iwothirds vote is necessary. .
G. O. P. Lends Aid A handful of Republicans joined the solid Democratic delegation in voting for suspension of the rules.
|The rest of the G. O. P. delegation
followed the lead of their floor
leader, Rep. Herbert H. Evans (R. New Castle) in voting against the Denton resolution. Speaking for his resolution to bring final action on this bill, Rep. Denton said: “I don’t know how you feel about the primary system. Personally I am in favor of it. You can point out defects in the primary, but nevertheless it is democracy. “A large percentage of the population of this State want this bill enacted. Favoring it are the Farm Bureau, organized labor and women’s groups. Let me beg you gentlemen to vote to suspend the rules and pass this bill.” Oppose Measure In speaking against this measure, Rep. Evans said that the bill would provide that to be nominated by the primary a . candidate would have to secure 40 per cent of the total votes cast in the election. ‘““This would mean that there would be seven or eight candidates in each race and none of them would get a big enough vote to secure the nominaiton,” he said. “Then the whole matter would go back to the convention and there would be added expense.” Today’s vote marked the second time in the last few days that the House has returned a majority vote on this bill. Because of Speaker James Knapp's delay, in handing. the measure down for’ second reading, however, the bill is lost.
Embalmers’ Measure
Up to Townsend
A measure to give the State Embalmers Board broader power to regulate business practices and to provide more rigid health standards today awaited action by Governor Townsend following its passage in both houses. Introduced and passed first in the House, the measure was killed once by the Senate, but was revived Saturday nightsand passed under suspension of the rules, 36 to 3. The bill would prohibit the advertising of price for services as funeral directors or embalmers and would require funeral directors to apply within 90 days after the measure went into effect for their licenses. : The State Health Board secretary also would be given membership on the State Embalmers Board, under terms of the bill, which also specifies that applicants for a license must have served a two-year apprenticeship and have been a resident of Indiana for two continuous years.
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HOUSE PASSES
TRAFFIC SAFETY COUNCIL'S LAWS
Four Given to Governor, Fifth Expected to Win Senate Approval.
Five measures to recodify and strengthen the. State's safety laws, sponsored by the Indiana Traffic Safety Council, today passed the House by overwhelming votes. The Senate previously had ap-
a proved four of the measures, which
(Story, Page One.)
SENATE PASSES FIREWORKS BILL
Prohibits Use Except hyp
Experts; Date of Effect Set Back to Aug. 1.
The Senate today passed the House bill which would prohibit the use of fireworks by anyone but a licensed pyrotechnical expert.
The upper chamber changed the date of the bill's effectiveness from July 1 to Aug. 1, thereby requiring the House's concurrence in this amendment before the measure can be sent to Governor To nd for his approval. The Senate passed the bill over the opposition of a group of Republicans and Democrats. Senator Victor Aldridge (D. Terre Haute) declared “we are getting a little too safety minded.” “The next thing we will be doing is outlawing the singing by children of thé Star Spangled Banner because the high notes hurt their vocal cords,” Senator Aldridge said.
to comply with its provisions. bill would create a new type of driver’s license known as the “condi= tional” license designed for drivers who. move here trom other states.
| were sent to Governor Townsend for
Maurice Henry Hiten, 6, was in City Hospital today with injuries received when he ran into the path of an auto yesterday near his home, 901 Charles st.
further action. These would:
Recodify all motor vehicle laws and provide for scientific methods of determining intoxication. This bill would define speeding as operating 4a motor vehicle beyond “a prudent and reasonable” rate, provide regulations for bicyclists and give the State Safety Committee the right "to approve safety devices. The State Highway Commission would be empowered to install traffic lights on State roads through all cities except Indianapolis. Require judges to provide the State Auto cense Bureau with records of convictions.
Power to Revoke Amend the motor vehicle registra« tion law to give the State Motor Vehicle Commissioner the power to re~ voke the licenses of dealers who fail This
Amend the Drivers’ Responsibility
Act to include holders of conditional licenses. This measure would forbid a judge from giving a suspended sentence in a case where a person was convicted of driving while his license was under suspen= sion under the Responsibility Act.
A fifth measure in. this series,
which also passed the House, was sent to the Senate, where it is expected to be pushed through under suspension of the rules. *
This bill would create a magis-
trate court in each county to handle
traffic cases and other matters now
Deadlock Continues On Gas Tax, Auto Fee
brought before justices of the peace. Chief function of these courts would
be to operate under the new traffic code.
House Republicans and Senate Democrats remained deadlbcked today over the Administration’s proposal to raise the gasoline tax rate 1 cent and reduce the automobile registration fee to a flat $1 rate. The House passed. a bill repealing the truck weight tax law. To this the Senate tacked amendments calling for the gasoline tax raise and the registration fee slash. i A conference committee was appointed several days ago to iron out the differences, but a meeting never has been called. In case the committee does not meet today, the whole proposition will die with the Legislature’s adjournment at midnight tonight.
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