Indianapolis Times, Indianapolis, Marion County, 25 September 1941 — Page 8

PREDICTS

DEFICIT

IF ’42 TAX IS CUT

Mayor Calls Advocates of Slash ‘Theorists’; Two Groups Push Pleas.

(Continued from Page One)

that would sell leave a deficit, he added. The cut proposed by the Chamber of Commence would reduce the requested 1942- rate to $1.36—still 10 cents above the current: rate. Mr. Benjamin’s proposal would cut the rate to $1.38. The Chambelr’s demand was made to the Adjustment Board by William H. Book, executive vice president. Teacher Pay Questioned .

Although the record City budget was chief target of the statement, the law under which the School Board makes teacher salary arrangements four months before the

School budget comes up for review by the Adjustment Board also was criticized. | Mr. Book outlined three cuts which the Chamber believes could be made: 1. A total of 7% cents which the Chamber believes the City is levying to make up a deficit could be cut in four major funds. The Chamber took the position that the deficit should be liquidated by savings. 2. A 2-cent cut could be accomplished by reducing wage increases for City Hall white-collar employees totaling $158,978 by twothirds. The proposal does not affect increases for police, firemen or hourly wage raises for labor. 3. At least one-half cent could be made by other appropriation reductions. Benjamin Sees Savings

‘Mr. Benjamin's proposal for cutting the budget was based on tke elimination of balances, the prospect of sawings and the use of miscellaneous revenues in the Health Department to finance functions now supported by tax levy. The Chamber’s statement charged the Board with “a patriotic responsibility to discover and apply methods of reducing these appropriations and tax rates, such as- has not existed in any year since adjustment boards were first established nine years ago.” It opened with the explanation that while budget arguments Lad been heated, the Chamber had no criticism to make of Mayor Sullivan or any City official. “On the contrary, we warmly commend them for conscientiously administering public affairs during very difficult times . . .” it said in part. The Chamber cited the increase in Federal taxes and took issue with the argument that now is the time for high tax rates. The statement pointed out that taxes had been raised during periods of depression.|s “One must remember that a very

large part of the burden of taxation upon individuals is borné by the middle-class white collar workers,” the statement said. “They are not the beneficiaries of huge wage increases. . . . A great many of them with small’ incomes who have not been taxed directly heretofore will be taxed next year. And this is only the beginning.”

Defends Pay Slashes

In support of its contention that wages of administrative and clerical employees at City Hall be cut, the Chamber's statement said: “When most public employees accepted their jobs, they did so with a full understanding of what would be paid them and what would be required of them, and, except for policemen and firemen, that those jobs were rewards for political activity and subject to termination at the change of administrations. “There is much to support - the belief of the average person that most public employees work comparatively short heurs and for the amount of service actually rendered are well enough paid.” The statement said the levying of a rate to liquidate the City deficit was “unwise” because the deficit should be made up by savings. Cites Election Year Cut

Citing the history of the City's general fund finances over the past decade, the statement said: “Only a few years ago there was a very large balance in this fund. It was made possible by an extraordinarily high tax rate in thé year 1934.

“In that year, an election’ year, the new rate for the following year was sharply reduced. “In subsequent years, the balance has decreased and now has been turned into a deficit. This has been done, not at the suggestion of the taxpayers, but by voluntary decision of the officials themselves who wanted to increase appropriations and did so, without having to face the consequences of increasing tax rates therefor. “These increases were primarily for wage boosts. “It is our belief, based on year in and year out study of municipal finance, that the various civil city funds for which the deficit rates are proposed would not only retire .the deficits expected at the end of this year, but would build up substantial balances through the application of these rates, and we believe that would not be good public policy.”

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Optimist Leader

Optimist Club members will be hosts tomorrow to Eldon S. Dummit (above) of Lexington, Ky., international president of Optimist Clubs. : Mr. Dummit will deliver an address at the regular noon luncheon at the Columbia Club on the part Optimist Clubs should take . in national defense and interna- . tional affairs. Elmo L. Richey, president of the local club, will preside at the meeting tomorrow.

TRIPLE REQUEST FOR ARMY TANKS, GUNS

WASHINGTON, Sept. 25 (U. P.). —The Administration is expected to ask Congress soon for approximately $3,000,000,000 to provide huge stocks of tanks and a new type of multi-purpose gun. It was learned today that the request will be sent to Congress as a ite defense appropriation measure after the pending $5,895, 000,000 lend-lease bill is completed. It will almost triple the previously planned war department supplemental request for ordnance and] tanks. Authoritative quarters said three factors were responsible for increas= ing the previously planned $1,000,000,000 request: (1) the valiant resistance of the Russian army and the consequent loss of heavy materiel; (2) the possibility of a British offensive in the Middle East soon, and (3) the decision of American Army chiefs to increase the amount of mechanized equipment and gun power of American forces.

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FURTHER MILK

PRICE RISE SEEN

Cost to Dairies Woreased

Temporarily, May Be Permanent. Local dairymen are saying, off the

|| record, that further increases in the

price of milk to Indianapolis consumers are inevitable as more and more shiploads of powdered and

l | condensed milk cross the Atlantic to

England. The second. direct local result of

|| this phase of the Federal Govern-

ment’s 'lend-lease aid to Britain came yesterday when the State

i | Milk Control Board established an

emergency temporary flexible price to dairymen for Class 1 milk of 60 cents a hundredweight over the prices which condensories are paying. (The dairymen had asked a 65cent increase over condensory prices.) While this flexible price may have no immediate effect on consumer prices, it will undoubtedly send them up as condensories, bidding for Government orders, offer the dairymen more and more money for their milk. One local milk official said, “We may even see 16 or 17-cent milk here by next year.”

‘10 to 1’ It’s Permanent

The State Board will hold a public hearing Oct. 8 to determine whether this flexible price system, asked by the three local milk co-operatives, shall be made permanent. And “insiders” in the dairy industry say that, the odds are 10 to 1 that it will be. ; In asking for the flexible price system, J. D. Littleton of the Indianapolis Dairy Producers Council explained that it was necessary to insure a sufficient supply of milk in the Indianapolis area. He pointed out that despite the July order of the Board increasing the prices which the dairymen get for their Class 1 milk from $2.50 to $2.75 a hundredweight, the condensories have raised their prices so much since that 87 “big” milk producers in the local area have deserted the local fluid milk market to sell their product to: the condensories. The flexible price system is expected by officials of the co-opera-tives to keep the price of milk used

UY ovr Weekly

8 druggist. HOOK DRUG CO.

for bottled purposes up sufficien over condensory ps he to make it “|worthwhile for .the dairymen to continue putting their product into the fluid market. Flexible price systems have been adopted in practic

| major

The 60-cent ie ase over the condensory price will make the price which the dairymen now get from distributors for their Class 1 milk $2.95 ‘a hundredweight. This will make the blend price which the dairymen get for their milk about YThe aid-to-Engiand The -to- and program it pertains to milk was first felt locally in July when the State

ently | Board increased the Class 1 price of

[Peardon:

milk. This resulted in a 1-cent-a-‘quart increase in the price of milk to consumers.

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save a family $100 a year in dairy

The reasons for this price increase were the same as for the flexible price system. Condensories then had raised prices to such an extent that the dairymen could ges more for their milk by selling to condensories than for fluid milk purposes.

NEW COURTHOUSE USELESS EMINENCE, Mo. (U. P.).—Shannon County has a new Courthouse —but the County officials still have to rent other offices because there is no furniture.

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