Indianapolis Times, Indianapolis, Marion County, 10 March 1939 — Page 4

_ Congressman Reveals Releif Issue Will Be Revived .... On Monday.

i (Continued from Page One).

anne.

gibility of a slight increase in nor- ~ mal corporation income tax rates. President Roosevelt and Congressional economizers agreed that some means must be found for maintaining the present level of Government

income if certain taxes are cuf. _. Leading proponent of a move to substitute a single, flat corporation tax. for other existing ones such as the: undistributed corporate profits, capital stock’ and ‘excess profits taxes 1s. Treasury Undersecretary John. W. Hanes. If Mr. Hanes “sells” his: proposal to the Administration, tax experts believed it would be necessary to boost the normal corporate rates. At’ present the rate anges from 12% io 16 per cent on comes ‘from $5000 to $25,000. Above that the rate is 16% per cent, plus a surtax of 214 per cent ‘on undistributed profits. - Supporters of Mr. Hanes’ plan

contend that business would prefer|.

slightly higher flat corporation aX. . They argue -that even if the increased corporate levy should fail at: first to produce as much as all the: existing corporation taxes, the removal of the = “deterrents” to business expansion would stimulate recovery to a ‘point where the Government’s losses in revenue would soon be wiped out. + Definite decisions were withheld at yesterday's economy-tax discussion at the White House between President Roosevelt, Chairman Harrison (DP. Miss.) of the Senate Finance Committee, Rep. Jere Cooper {Tenn.), ranking Democratic member of the House Ways and Means Committee, Treasury Secretary Morgenthau and Mr. Hanes. "It was learned on good authority that the conferees discussed the effects of the undistributed profits, capital stock and excess profits taxes on business. These effects, it was said, were weighed against the revenue-producing potentialities of the three levies. - Senator Harrison, leader of the Senate economy bloc, said that * when revisions are made in the revenue structure steps will have fo be taken to insure maintenance of the Government’s income at present levels. - Concerning ~ economy, - Senator Harrison said he “expressed very eandidly” his views to the Presi‘dent. Sh : :

Change in Pushing Court Nominees Hinted

* WASHINGTON, March 10 (U. P.). ~—Indications of a change in methods of recommendation of possible nominees to the Supreme ‘Court, and a decided shift in the field from which selections may be made, were seen by observers here ‘today. ~ They were attributed to the entrance of Attorney General Frank Murphy into the office formerly held by Homer Cummings. As part of this development the influence of BRostmaster General James A. ¥Yarley appeared to have diminished with the retirement of Mr, Cummings, his close friend. “The shift seemed likely to have a bearing on the impending nom- - ination of a: man to fill the vacancy caused by retirement. of Justice Louis D. Brandeis. ‘ It was indicated that with the deeline of Mr. Farley's influence the chances for appointment of Wiley Rutledge, University of Iowa Law School dean, who once taught at Connersville, Ind. .and Senator

| | ; i

bill passed by the Legislature.

(Continued from Page One)

place it under professional associations. . rip ody “This bill would establish a bad type of bureauracy. It might endanger the State's co-operation with Federal Government health plans.” . The measure would have provided for increased professional representation on the board starting June 27, 1939. Included in the bills signed yesterday by the Governor were measures: Enabling the Ind:anapolis Civil City to purchase the property of the Indianapolis Waler Co. or any other privately owned utility. Establish a uniform traffic code for Indiana and prohibit “speed” traps. Requiring medical examinations including tests for syphilis for marriage license applicants. Enabling the State Alcoholic Beverage Commission to take retaliatory steps against ary other State discriminating against the importation of Indiana-produced alcoholic beverages. Establishing a State board for the standardization of the egg business. Establishing central counting bureaus for the counting of ballots in primary elections .in Marion, Lake, Vanderburgh! Vigo, Allen, St. Joseph, Madison and Delaware counties. : Liberalizing the unemployment compensation act. Diverting the revenue received from a State 2-cent property tax levy from the Stafe colleges and universities building fund to the State general fund. Governor Townsend . issued his statement attacking the tactics of the House Republican raajority afier he had approved 114 bills late yesterday. He said, in part: #1 am not afraid of a bully, or a coward, nor of a sincere, -aggressive opponent, but there is no common ground upon whica responsible persons or a party can meej irresponsibility. “And that was the problem which faced the Sfate -Administration in

. Schwellenbach (D. Wash.) had * risen, along with those of William 0. Douglas, Securities and Exchange, Commission chairman. |

.dealing with the Republican majority in: the House of Representatives throughout the 61 days of the General Assembly—irresponsibility.

‘THE FIRST TELEPHONES IN INDIANA were clumsy in appearance and limited in reach. They served but a few persons ina

few scattered communities

and in the very

early days there wére no connections even

to the next town.

But, year after year, the constant search for better ways of doing things has brought finer, faster, telephone service to more people. Today the people of this state use the

telephone 1,300,000 times every day—and over 99% of the calls are handled without error. Today from your telephone you can talk with any one of 36 million other tele-

phones in nearly all parts

quickly, easily, and at reasonable cost.

of the

of the world—

The Governor's Committee on Public Safety looks on as Governor Townsend signs the highway safety Committee members are (left to right) #rank Finney, State Auto License

Governor Signs H ighway Safety Bill

Bureau director;

“It was unfortunate that there were no responsible leaders among the membership of the House majority who could speak with authority for all. To the contrary we were forced to confer with individuals, many of whom were actuated only by political or selfish motives, and who had no idea of the problems or needs of the State. “I am very sorry that the obstructionalist policy of the Republican Party prevented passage of the direct primary for Governor and U. S. Senator, tax relief for retailers ‘and

wages for Indiana workers, addition-

automobile license plates.

the administration of State governthe amount’ of money available for

mandated by the acts of 1937.”

would go before the voters in 1940 on the record of the G. O. P, members of the Legislature.

i. Bobbitt Attacks Senate

“The Governor boastfully claims credit for preventing ‘any raids oh

or speciale appropriations.’ He forgets that little provision in the Constitution that requires all revenueraising measures to originate in the House of Representatives. The Republican House did not pass a single new tax-raising bill to pass on to the Democratic Senate.

did

bill a section increasing the tax on beer two-thirds of a cent a gallon.

bill providing for twice the amount of additional distribution to counties of gasoline tax money for use

rev CRRA

£ | 3

| eMlarch 10, 1876

. Sixtyithree years ago} today, in Boston, Mass, Alexander Graham Bell, inventor

(telephone, transmitted the first complete sentence of speech over a wire to his assistant, Thomas A. Watson. {

service businesses, return of truck|= taxes collected in 1938, minimum =

¢ “Increases in the appropriations : above 1937 do not in any way affect |:

ment, because they. are increases in |s old-age assistance and education |S

Declaring he had “no desire to = enter into a protracted newspaper |S controversy with Governor Town- |S send or any other Democrat,” Mr. |S Bobbitt said the Republican Party =

the taxpayers either by new taxes:

“The Democratic Senate, however, |S ; | pass the only additional tax-|3 raising bill. It wrote into the beer|S

“The Republican House passed a 3

on local roads as was contained in = the bill finally approved ‘on this |S subject in the Senate and for the =

: rk Times Photo. T. A. Dicus, State Highway Com-

mission chairman; Don Stiver, State Safety director and Floyd I. McMurray, State superintendent of public instruction. 57

Health Board Shakeup to Be Vetoed: 163 Bills Made Law by Gov. Townsend

death of which the Democratic Senate is responsible,

“The Republican House passed a bill to- bring the infamous ‘Two Per Cent Club’ within the .provisions of the corrupt practices act, and another to provide for methods of recounting votes to insure honesty in elections. These bills still are sleeping in Democratic Senate committees.”

TO PILE UP W 1600DS IN NATION

Roosevelt Orders ‘Spending For Such Raw Materials Cut to 10 Million.

Times Special

WASHINGTON, March 10.—The War Department’s plan to amass supplies of strategic raw materials will be drastically curtailed on orders from the White House, it was learned today. : Pending legislation would authorize appropriations of 100 million dollars spread over four years for accumulating stockpiles of various minerals and other products as a war reserve. Army ‘and Navy experts have

‘testified before the House Military

Affairs Committee that such stockpiles are as necessary as guns and planes. | ; Drafting of Bill Delayed

« As the Committee started draft‘ing its final version of the bill yesterday, Chairman Andrew May (D.. Ky.) was called to the phone. When he returned he told the Committee that Assistant War Secretary Louis Johnson: had told him President Roosevelt insisted the amount, carried in the bill be cut to 10 million dollars. . Rep. May was so agitated by the news he did not learn from Col. Johnson whether this meant 10 million a. year or a total of 10 million in four years. : The Committee delayed. drafting the bill until more details could be ‘learned. It is understood to be planning te send a delegation of five to see the President next Monday and learn the reasons behind his request.

COUNTY BREAKS TRADITION MEMPHIS, Mo., March 10 (U.P). —For the first time in 60 years, Scotland County, Mo., will have a Republican County Clerk. Frank A. Trunnell won by 87 votes over his Democratic rival, J. E. Poole, the incumbent, in the recent election.

Defense

Vague but Great Powers Given Cabinet Officials, * Business Fears.

WASHINGTON, March 10 (U. P.).~Eyidence : of some industrial alarm and ‘anxiety over the Administration’s business ; appeasement program developed today based upon an obscure labor ‘amendment written into the National Defense

Bill. oi 4 The amendment wes proposed by

Senate Majority Leader Barkley (D. Ky.); who unquestionably stands as President ‘Roosevelt's spokesman in the upper house. It was adopted

and will be among subjects for dis-=|

cussion among House and Senate conferees on the National Defense Act. So The amendment gives the War and Navy Secretaries unusual powers to penalize private industry for their labor policies. It was adopted after scant debate and without a record vote and attracted litle attention. Text of the amendment is as follows? “Provided: That for the purposes of this ‘act or any other act heretofore or hereafter enacted, appropriating or authorizing the appropriation of any funds for national defense, no contract shall be awarded to any person who at the time of such award shall be found by the head offer ' department awarding the contract to be interfering with, restraining or coercing his employees in the exercise of their rights to self-organization, to form, to join or assist labor organizations, to bargain collectively through representatives of their own choosing, or to engage in concerted activities for the purpose of collective bargaining or other mutual aid or protection.” Lee Pressman, C. I. O. general counsel, wrote Assistant War Secretary Louis Johnson that the Barkley amendment is of vital importance to organized labor. Further, he said, it would tend to elim-

or Collective Bargaining Worries Industry Anew

\mendmen

inate strikes against firms having contracts for national defense items. The. War Department opposed the provision. LR ; : Senate debate developed the fact that. no provision was made for either ‘Cabinet official to determine whether a bidder was acting in vielation of those provisions.: It was pointed out that the language ‘was so broad as to extend the prohibitions! of the amendment to all national | defense appropriations now in effect as to all future appropriations. ha : A C, I, O. spokesman suggested that the Secretaries might attempt to enforce the amendment by obtaining “clearances” on individual bidders ' from the National Labor Relations Board and from the Labor Department. Some of the more apprehensive spokesmen: for industry feared the

erably further than that and that under the Government Reorganization Bill now moving through Congress the President might shift to the NLRB final authority to prevent award of contracts to challenged bidders. :

en es

Roosevelt to Accept

Resignation From FCC

WASHINGTON, March 10 (U, P.). —President Roosevelt said that he expected to accept today the resignation of Eugene O. Sykes as a member, of the Federal Communications Committee. : - The resignation was expected to become effective next Wednesday, when Mr. Sykes will have served 12 years on Federal commissions regulating radio. Mr. Sykes’ resignation was expected to complicate further the strife-torn FCC, and aggravate Congressional controversy over the commission. Mr. Sykes was considered a rfiember of the “majority” of thé FCC\and aided Chairman Frank R. MeN in winning several decisions by '¥-to-3 votes. Unless Mr. Sykes’, successor is named almost

amendment would extend consid-|

immediately, the commission would face the possibility of deadlocks.

|] 3 |

WAR STUDIED BY |

TRUST PROBERS

Monopoly Committee Hears Charges: U. S. Inquiry Promised.

WASHINGTON, March 10 (U. P.). —The Justice Department today promised an investigation of charges by George A. Johnson, independent Detroit milk distizbutor, before the Tentporary National Economic Committee that he had been threatened with bombings and a “price war.” Mr. Johnson told the committee that a threat to bomb his chain of 40 milk depots was made during a competitive: warfare in which prices dropped to as low as 6 cents per quart for delivered milk, Senator King (D. Utah), acting chairman ‘of the committee, said that he felt that “the situation” in Detroit should be investigated. Wendell Berge, representing the Justice Department, agreed to undertake a study. The Justice Department. already holds indictments against a number of milk .distributors and producers in the Chicago area. - Mr. Johnson charged that systems operated by the Borden Milk Co. and the National Milk Co. opened a price war April 4, 1937, and have steadily reduced. prices since that time. Mr. Johnson does not deliver his milk but he certified his competitors met his price or undersold him despite the fact that they delivered,

WASHINGTON, March 10 (U.P), —Senator Wheeler’ (D. Mont),

charged today that the Government Reorganization Bill ssed by the House would delegate unconstitutional powers to the President. In statement expressing opposition to the bill, Mr. Wheeler cone tended that final authority to re vamp departments and agencies of the executive branch of the Government should rest with Congress and not with the Chief Executive.

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