Indianapolis Times, Indianapolis, Marion County, 7 August 1941 — Page 4

PAGE 14

INFLATION FEARED IF WAGES T00 HIGH

Must Be Kept Within Bounds, Henderson Testifies; Morgenthau Supports Installment Buying Curb; Committee May Call Baruch.

WASHINGTON, Aug. 7 (U. P.).—Price Administrator Leon Henderson today declared that wages “must be kept within bounds” to prevent inflation. ‘

He told the House Banking Committee, however, that he did not believe provigions for wage regulation should be included in the Administrations price control bill. “It is not necessary to include in a price control bill all the elements that enter into cost, such as interest, transportation and wage payments,” he said. “But unless they jare kept within bounds it will PL AN S AlD | be impossible to prevent price * ' inflation.” Favors Close Contact 10 FREE FRENCH Mr. Henderson said he favored | “the closest kind of contact be-| ——————— [tween governmental agencies con- ; i i ned with labor and price regula-| \ h in cerne i Government Losing Fait [tion in order to “bring about the| Promises Made proper balance.” : . “No group in the country ought! From Vichy. to take advantage of the special By EDGAR ANSEL MOWRER [situation arising out of heavy govCor EL re De ere marmet | erhinental purchasing to get unWASHINGTON Avg. 7 While | Warranted or indecent raises in the the Vichy Government writhes in charges it makes to the communone of ite periodic crises, unable to|ity.” he said. make up its mind how ek 0] There are no provisions in the : ; shrek | rg he ed to ire a1. | proposal the committee is considerrect help to Gen Charles De Gaulle|ing to regulate wages or to curb inand his Free French. staliment buying, two controversial This will not, and cannot, be in aspects of the anti-inflation prohe form of “diplomatic recogni-jgram. President Roosevelt has sugtion” Gen. De Gaulle does not and gested that wages be regulated does not claim to head a valid through bargaining between labor French government, fand employer. but some House But the United States will hardly leaders have expressed an inclinarefrain longer from giving aid toi tion to explore the possibility of “those French territories whose putting a ceiling on wages. Payrulers are resisting aggression” rolls now are 132 per cent of This means French Equatorial normal. Africa, Syria and lesser possessions | Morgenthau Called Moreover, a near future should i" of gee established in Washington| Secretary of Treasury Henry something like a “Free French dele- Morgenthau Jr. who has been ingation,” conceivably under no less|vited to testify before the commita distinguished soldier than Ad- tee, said that restrictions should be ES oe Henn Mee exactly [PU on installment buying. He| 8 ¥ S S yi h Yi & please Vichy: they will not please | agreed with Mr. Henderson that] the Germans. But the American|the Federal Reserve board should)

Administration has just about run take such a step, by exercising its|

out of patience toward Vichy. | present powers or by new authoriza- | When Ambassador William D |

Leahy at Vichy protest : | tion. eahy at Vichy protests against suc-| = apgther withess may be Bernard cessive acts by Petain, Darlan andiyzy paruch, who was chairman of| Benoist-Mechin, he is constantly ine World War Industries Board. told that since the "United States) pe may be called early next week to are not a military power.” our opin-|give the committee his advice based fon cuts very little ice on World War experiences in haltTo which Washington is about|ing runaway prices ready te retort that the mea off] Mr. Henderson testified that| Vichy do not constitute a free gov- workers in non-strategic jobs take) ernment at all, but at best a sort of sharp losses in real wages—purchas- | German cat's paw 'ing power—during inflation.

OT CE

SATURDAY—THE LAST

SEE BIG CHANGE

!Ga.) of the Senate Finance Com-

Moving to the “front” . . |

IN TAX POLICIES

Far - Reaching Revision Is Predicted by Senate Finance Leader.

WASHINGTON, Aug. 7 (U. P). — Chairman Walter F. George (D

mittee said today that passage of

the $3.206.200000 tax bill wiil forshadow a far-reaching revision of Federal tax policy. George said that the Houseapproved bill probably will be approved by his committee for floor action about the end of August. He foresaw little possibility that the Senate would restore the mandatory joint return provision eliminated by the House. George said that a number of changes in tax policy “undoubtedly will be considered when we get around to them.” One to be given serious consider- | ation will be a “withholding” levy | which would be deducated at the source, Such a tax would be de-| ducted by employers from employees’ wages and remitted to the] Government in a manner similar to| the present social security assess- | ment, Secretary of the Treasury Henry Morgenthau, Jr. is scheduled to be! the first witness when the committee begins hearings on the measure tomorrow, George said. |

1,331,800 UNDER ARMS

WASHINGTON, Aug. 7 (U.P) —! The Army estimated today that! 1.531.800 officers and eniisted men! now are under arms.

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A WOMAN BREAKS 100

For the first time in national competition, a woman today broke 100 straight targets in the 20 gauge event at the national skeet meeting here, The record was hung up at noon by Mrs. M. L. Smythe, Aurora, O, at the Capital City Gun Club, Mrs, Smythe assumed temporary leadership in the 20 gauge event.

760 TAKEN OFF CENTER RELIEF

5516 Helped During July; $41,000 Spent Includes Some August Cost.

There were 760 fewer persons on|

relief in Center Township last

imonth than in June, Trustee Henry |

Mueller's monthly report showed today. In July, 5516 individuals were being helped by the township compared to 6276 in June, The trustee's total expenditure for food, fuel, clothing and other needs was higher in July, $41,159, compared to $37.290 in June. This, Mr. Mueller said, was a result of starting the stamp plan Monday, July 28. All Center Township relief cases received two-week ovders either July 28. 29 or 30, carryving them over almost to the middle of August. Thus, he said, the July expenditures covers not only all of July, but also about a third of August. The trustee has submitted a request for an $810.000 budget next

(year. His 1941 budget was $1,021,000.

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THE INDIANAPOLIS TIMES

an Army convoy rumbles through town headed for war games in the South,

20 ARM

20 ARMY TROOPS PASS IN CONVOY

1300 in Engineers Battalion Bivouac Here on Way To War Games.

Indianapolis traffic “moved over” last night and today to make way for long Army convoys which rumbled through city streets on their way to war games in the southern states. More than 5000 troops ana 650 trucks and other motorized equipment passed through the city. All were units of the Second Field Army, en route from Ft. Custer, Mich, to Arkansas, one of the “battlegrounds” for the mock warfare

i$ form

kl early El about 62 miles under the ocean and

scheduled to get under way this week. One unit, the 94th Engineers Battalion, composed of 1300 men and 150 vehicles, pulled into town late yesterday ana bivouaced overnight at Ft. Harrison. The troops left in convoy early today. Other troops passing through included units of the 46th Quartermaster Regiment and artillery units of the Second Army. The convoys were escorted through the city by motorcycle police and over state highways by State Police detachments.

BOARD TO OPERATE MERIT IN WELFARE

The State Personnel Board must \operate the merit system in the {public welfare and county welfare |Gepartments under rules and regulations prescribed by the Social Security Board in Washington, Atty. Gen. George Beamer ruled today. His opinion, to Thurman A. Gottschalk, Welfare Board administrator, had the effect of holding that the Personnel Board could not change the present system in the Welfare Department because the Social Security Board has approved the merit system now in effect inp this branch of the state government, Mr. Gottschalk asked for a clarification of the merit system and welfare laws passed by the 1941 Legislature which set up welfare merit systems and provided that their provisions should supercede | provisions in all other laws. | Mr. Beamer pointed out that it was the intention of the Legislature that the State Personnel Board

8 | should administer the merit system §| in the Welfare Department but that

{it was necessary in order to conto Federal regulations to adopt merit rules already provided for the Welfare Department by the Social Security Board.

| REVEALS PACIFIC

VISITED BY QUAKE

By Science Service

WASHINGTON, Aug. 7.-Pacific

§| Ocean, possible scene of future war,

was visited by a strong earthquake Saturday, Aug. 2, centered

700 miles northeast of New Zealand. This was determined here by seismologists of the U. S. Coast and | Geodetic Survey after studying re- | ports from earthquake observatories gathered by Science Service. The actual location of the quake

{was about 30 degrees south latitude |.

land 179 degrees west longitude, {which is in the vicinity of the | Kermadec Islands. It occurred at 6:415 a. m. (Indianapolis Daylight | Time).

§| It was recorded by seismograph 8 stations at Fordham University, New

(MAY SET REGORD

CITY'S TAX RATE LOUISVILLE BECOMES

AIR COMMAND BASE

WASHINGTON, Aug. 7 (U, P).— The War Department today announced locations of the headquarters for the five new air support commands. The locations: First Air Support Command—Mitchel Field, Long Island, N. Y.; Second Support Command—Oklahoma City Air Base, Oklahoma City; Third Air Support Command—Savannah Air Base, Savannah; Fourth Air Support Command Base—Hamilton Field,

If All Budget Requests Are Met, Levy May Go to $1.44 Per $100. (Continued from Page One) deficit to its present proportion and

it is understood that the Mayor and the Controller would like to wipe it

THURSDAY, AUG. 7,'1941

Cal, and Fifth Support Command Base—Bowman Field, Louisville, Ky.

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off the slate next year by the 6cent levy. However, another plan is being proposed which may obviate the 6-cent levy and reduce the potential 18-cent increase to 12 cents. According to the plan, the deficit would carry over into next year and be reduced as it was this year by strict economies. The Mayor and the Controller are considering this plan, but have not decided.

Funds Dwindle The City’s attempt to cut the deficit as much as possible this year by saving resulted this week in the announcement by City Clerk John Layton that no more funds are available to advertise notices of public hearings on penal and appropriation ordinances submitted to City Council. Mr. Layton distributed the notice to all department heads yesterday, explaining that heavy Council business this year has exhausted budgeted funds for advertisement of public notices and that no other funds are available, The shortage of printing and advertising funds may handicap the City's traffic program seriously, since traffic ordinances must be advertised for public hearing if they contain penalties. In addition, the shortage would block the passage of appropriation and zoning ordinances. If City officials could find no money at all to replenish the fund— it would mean that the 1942 City budget itself could not be approved since that, too, must be published for public hearing. However, officials indicated that transfers from other funds in the Clerk's Office may be made or a special appropriation ordered to pay for the adevtrising of essential ordinances, like the budget and a few traffic restrictions. Similar shortages have occurred in previous years through failure of the City Council to gauge the number of ordinances it would pass during the year. In the background of the tax increase, are the wage demands by City employees to meet rising living costs. Firemen and policemen have requested wage increases and. although their original requests may not be granted, pay raises for both departments will be proposed by the Mayor. In addition, technicians at the Sewage Disposal plant and City garbage truck drivers in the Collections Department are demanding hourly and weekly pay hikes. In other departments, labor rates are expected to be increased on an hourly basis. Cost of materials is rising, particularly for street repair, traffic signal installations and the City Hospital. These prospective increases are arbitrary and may be cut, but there are large mandatory increases for the policemen’s and firemen's pension funds provided by the Legislature. In the face of all these demands, taxpayers’ organization are mobilizing to keep the rate down and most officials and Councilmen expect heated debate when the budget is presented to City Council Aug. 18. That peace and quiet in the chambers and corridors at City Hall these warm afternoons is the quiet before the storm, they say.

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