Indianapolis Times, Indianapolis, Marion County, 27 March 1939 — Page 8

\OUSE TO VOTE TOMORROW ON

FARM BENEFITS|

Bill for Unbudgeted 250

Million May Be Key. to Aids-for-Business.

WASHINGTON, March 27 (U. P.). —Vital questions of economy and business appeasement depend on tomorrow’s House vote whether farmers shall be given an unbudgeted 250 million dollars in benefit payments. House approval would pass the question to the Senate where the

farm bloc is strong and the economy £1

bloc comparatively weak. The question bears directly on business appeasement because the appropriation of so large an unbudgeted sum would increase difficulties in repealing so-called business deterrent taxes. The argument against repeal now is primarily that it would be difficult to find com-

pensating revenue in other corpora- |“

tion tax brackets. If farm benefit payments are swollen by 250 million dollars the Treasury’s need for revenue will be increased by that much and the argument against sacrificing a single penny of tax sources will have been considerably strengthened. An easy way out for Congress would be to appease farmers with substantial benefit checks and appease business by postponing scheduled social se‘curity payroll tax increases which are to become effective next yeat. Mr. Roosevelt is reconciled to postponement of the social security tax increases and business welcomes the prospect.

Relief Bill Scheduled

Routine District of Columbia bills forced revision of Administration * plans to resume debate today on the farm bill. House Majority Leader Sam Rayburn, said the bill will be taken up tomorrow, and predicted the House would take final action on'it then, Rep. Rayburn planned to begin debate Thursday on the Relief De- _ ficiency Bill if the Appropriations ° Committee, deadlocked on President Roosevelt's request for 150 million dollars, reports a measure by that time. From 220 to 230 million dollars of annual revenue is raised by the socalled business deterrents, including the corporation surplus tax which as recently as last Ajpril Mr. Roosevelt defended as fundamental to our democratic system. He insists that repeal of those levies be accompanied by other corporation tax increases to provide compensating revenue. Congressional economizers in general agree with him that compensating revenue is essential. But while the White House has echoed on successive press conference days with Mr. Roosevelt's emphatic demands for compensating levies, there has been no public White House protest so far against House farm bill developments in which considerably more more than is involved in the. deterrent taxes is about to be appropriated without any provision whatever to raise the money by increased taxation.

Tax Increase May Be Asked

Some observers suspect that Mr. Roosevelt's failure publicly to condemn the farm benefit proposal at this time is because also pending before a House Committee is his request for an additional 150 million dollars for unemployment relief. A strong economy statement from ithe White House against unbudgeted farm appropriations might -easily backfire on Capitol Hill and become an equally effective economy statement . against increasing immediately available unemployment relief funds. The 250 million dollar farm benefit item is included in the $1,067,000,000 Agriculture Department Supply Bill reported to the House last week and scheduled for final vote last Saturday. But angry and weary legislators forced adjournment late Saturday afternoon despite efforts of the leadership to keep the House at work,

Does Wage Law Cover: WPA Work, Roosevelt Asks

(Copyright, 1939, by United Press) WASHINGTON, March 27. — President Roosveelt has asked Attorney General Murphy for an opinion whether the Federal WageHour Law embraces about one-half of the 3,009,000 WPA employees who receive wages of less than 25 cents per hour, Mr. Roosevelt, it was learned today, sent his requesi to Mr. Murphy after conferring with WPA Administrator F. C. Harrington. * Mr. Murphy, it was learned, has issued a ruling on the question and forwarded it to WPA. It may be made public today. The ruling will affect unskilled workers, principally in Southern states. All skilled WPA workers receive more than 25 cents per hour. WPA officials estimated that about half the total WPA enrollment was

William O. Douglas

WASHINGTON, March 27 (U. P. —The Senate Judiciary Committee today quickly and unanimously approved the nomination of William O. Douglas as asso- - ciate justice of the Supreme Court and sent it to the Senate, where confirmation is expected tomorrow.

WAR PENSIONS BECOME ISSUE

$40 Monthly for Veterans Over 65 Now Before Congress.

(Continued from Page One)

This will put the issue squarely up to President Roosevelt. Word is being passed that he would veto a bill with a pension provision. Fear of a veto, which would endanger other features of the omnibus bill, has provoked the movement to include the pension provision in a separate measure to be considered on its own merits. The pension provision is skillfully inserted by including veterans of 65 and over in a provision of the bill which increases compensation for permanently and totally disabled veterans, nonservice connected, from $30 to $40 a month. This increase was vetoed last year by President Roosevelt. An interesting phase of the controversy has been advocacy of the pension by John Thomas Taylor, American Legion legislative representative, despite the fact that the Legion never has approved general pensions for World War veterans and, at its annual convention at New Orleans in 1922, it stated by resolution that it never wculd seek pensions for World War veterans if the bonus was paid. Congress has paid the bonus. “This probably is opening up the way for general pensions for World War veterans,” said Rep. Van Zandt, who is, however, in favor of the pension provision, explaining that his organization has taken a position for jobs or pensions. Mr. Taylor expressed his 100 per cent support for the pension adding: “That’s our bill.” He argued that his position is not in conflict with Legion policy, contending that this is not a general pension, but merely is including veterans of 65 and over because they are in the category, in effect, of permanently disabled veterans since they cannot get jobs to support themselves. He pointed out that veterans who have an income of $1000 a year, if single, and $2500 a year, if married, are not included. Both he and Rep. Van Zandt argued that veterans should not be included under social security, since they, as veterans, are in a different category and Congress has so treated them in legislation. Mr. Taylor said that neither the Legion nor its present national commander, Stephen F. Chadwick, had approved the pension feature of the omnibus measure, but that the Legion never passed on details of legislation and he, as legislative representative, was given wide discretion relative to legislation.

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Final 0.K. Due S

| Permits State Levy on U. S.

‘larly an employee of the Home Owners Loan Corp.

t| become available to state and Ped-

%| taxing powers is uncertain. Treas$l ury officials, however,

t| employees migh{ bring in about 15 million dollars.

:| discriminatory general tax upon the :| incomes of employees of a govern-

| REVERSES RULE ON TAX POLICY

Employees; Indiana Case Decided.

(Continued from Page One)

The amount of revenue which will

eral Governments through the new

have estimated that taxing incomes of state

“Not From Constitution’ “So much of the burden of a non-

ment,” Mr. Justice Stone said, “state or national, as may be passed on economically to that government, through the effects of the tax on the price level of labor or materials, is but the normal incident of the organization within the same territory of two governments, each possessing the taxing power. “The burden, so far as it can be said to exist or to affect the Government in any indirect or incidental way, is one which the Constitution presupposes, and hence it cannot rightly be seemed to be within an implied restriction upon the taxing powers of the national and state Governments which the: Constitution has expressly granted to one and has confirmed to the other. “The immunity is not one to be implied from the Constitution, because if allowed it would impose tc an inadmissible extent a restriction on the taxing power which the Constitution has reserved to the state governments.” Justice Felix Frankfurter filed a separate concurring opinion Jn which he expressed belief that the Court’s reversal of its long-stand-ing doctrine should have been couched in more specific terms.

D. C. Court Issues

Walsh-Healey Injunction

WASHINGTON, March 27 (U. P.). —The District of Columbia Court of Appeals today granted a temporary injunction restraining the Labor Department from enforcing minimum wages for the steel industry under the Walsh-Healey Government Contracts Act.

U.S. PROBE TALKED IN BAN ON SINGER

WASHINGTON, March 27 (U. P.). —Rep. Joseph A. Gavagan (D. N. Y.). said today he was prepared to introduce a resolution calling for a Congressional investigation of the exclusion of Marian Anderson, famous Negro singer, from Washington auditoriums. Rep. Gavagan, speaking at a mass meeting held to protest the refusal of the city school board and the Daughters of the American Revolution to permit Miss Anderson the use of their halls for a concert, said that he was “ready and willing” to offer such legislation. Senator Wagner (D. N, Y.), who said that “the Marian Anderson case is the most challenging issue confronting American democracy,”

declared the barring of the contralto was “not a local issue.

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VETERAN DIES 4 89

IN WASHINGTON, IND.

WASHINGTON, Ind Ind., March 27 (U, P.).—Frank A. Evans, one of Washington’s few remaining Civil War veterans, died at his home here today. He was 89. He enlisted as a drummer boy when he was 14 but saw no action. He was a member of Company A, 137th Indiana Regiment Volunteer Infantry, Surviving are two children.

LA FOLLETTE GROUP DRAFTS BROAD BILL

WASHINGTON, March 27 (U. PJ). —The Senate Civil Liberties Committee will submit this week an omnibus bill mendations for legislation to halt alleged abuses of the rights of labor

in industrial strife. The recommendations

Follette Jr. (Prog. Wis.) and Senator Elbert D. Thomas (D. Utah) after a two-year study of employer-em. ployee relations. The committee will propose: 1. To prohibit employers from hiring agencies or individuals fo “engage in the brutal or deceptive practices of strikebreaking.” 2. To restrict the functions of private police systems to the protection of plant and. property. - 3. To prohibit private persons likely to be involved in industrial disputes from possessing such weapons as machine and submachine guns and “offensive” chemical weapons. ¢

LARRABEE SUPPORTS OLD AGE TAX RELIEF

WASHINGTON, March 27 (U.P.). —Rep. William H. Larrabee (D. Ind.) today announced his “unqualified approval” of the proposal of President Roosevelt and Treasury Secretary Morgenthau, that Congress act to postpone, “or at

least materially reduce,” the statutory . increase provided under the

| payroll tax clause of the Social Se-

curity Act.

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WASHINGTON, March 27 (U. P.). —More thar 40 per cent of the 1938 cash farm income. of $7,632,000,000 was used to meet debts and taxes, Agriculture Department reports disclosed today.. Official reports placed the total farm debt at the close of the year at approximately 10 billion dollars. Interest payments approximated 500 million and payments on the principal was estimated unofficially at $2,500,000,000. The farm real estate tax bill was estimated at 365 million dollars. Personal and property and other taxes were believed to have brought the total to approximately 450 million dollars.

40 Per Cent of 7 Billion Farm Income In 38 Taken by Debt and Tax, U.S. Says

debt was in long-term farm mortgages. Officials figures showed the farm mortgage debt of $7, 082,000,000 —for which land was pledged—was the lowest in 17 years and nearly $2,500,000,000 below Jan. 1, 1928. Federal Land Banks and land bank commissioners held $2,836,000,000, or 40 per cent, of the total farm mortgages. Individuals and private lending agencies held $2,745,000,000, life insurance companies, 895 million; state and national banks, 502 million, and joint stock land banks, 104 million.

Interest payments on the mortgage debts last year totaled 365 million dollars compared with 568 million in 1928. The decrease was

A major portion of the total farm

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per cent in the average interest rate over that period. Approximately 2,250,000 farmers whose farms were mortgaged paid an average interest bill of $160 last year. In addition, they were estimated to ‘have repaid 500 million on the mortgage debt principal. The total outstanding mortgage debt was reduced by 174 million dollars during 1938, the Farm Credit Administration reported. Indicating an improved farm credit situation, official figures showed that the number of farms changing ownership per 1000 farms by foreclosure of mortgages and bankruptcy last year was 14.3, compared with the 1933 high of 38.8

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