The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-03-05
HOUSE WRECKS
BILL DIVERTING
HIGHWAY FEES
Senate Measure Taking
Auto Funds From Road
Board Meets Its End.
VOTE is OVERWHELMING
Observers Predict Hopes OF
Drastic Tax Relief
Are Fading.

Diversion OF auto license fees
from the state highway department
TO the state general fund for reduc-
.. ton of the state property levy was
blocked today when the INDIANA
house killed a senate bill carrying
that proposal by the Overwhelming
majority of 80 to IL.
The defeat increased lmprobapll-
Ny of house passage Of the senate
bill. regarded as a companion meas
nre. which would increase auto
license fees approximately so per
gent. With the heaviest increase on
trucks, buses and heavy passenger
cars. This measure awaits second
reading in the house after having
passed the senate.
Democrats lead the slaughter OF
gSle fee diversion bill, although Re
publicans joined in interpreting 1t
Is a blow at the highway commits
sion, of little value in tax reduction,
and opposed generally except by
senate Republicans seeking to de-
tail the corporate income tax.
Tax Change NOT PrODdple
Five Democratic representatives
aoined seven Republicans in support
pf the minority report of the judi
riary b committee fayoring passage
The bills death stripped the joint
FAX committees list of approved bills
bf another of it's major items and
strengthened the general impress
sion about the legislature that no
drastic changes in the states meth
cd of raising revenue will be en-
acted this year.
In the senate, Lieutenant-GoV-
krnor Edgar d. Bush, strong advo-
cate of the corporate income tax
measure. was prevented from hand
ing it down for third reading and
final senate action by lengthy con-
sideration of the prosecutors salary
bill.
Improbability of the corporate
tax bills passage increased when
Fhe senate this week restored the
9 per cent rate contained in the bill
rs it passed the house, after once
reducing it to l per CENT
Claim S1O,OOO,OOO Income
The three Republican members Of
house judiciary B committee we're
the only signers of the minority re-
port favoring passage Of the diver
sion measure which had passed the
senate, "a TO IL.
REPRESENTATIVES Howard S. Grimm
(Rep.. Dekalb) and Roy G. Street
(Rep.. Tippecanoe and Waren),
urged passage, declaring the bill,
with its companion, would raise al
most $1OO00.000 year in 1882 and
1893 to supplant two-thirds of the
present 29-cent state levy. Both de-
clared the diversion would neither
cripple state highway building nor
cause federal aid to be lost.
But their warning that legislators
Ewould be sorry" if they went home
without passing the bill, brought a
different answer from Representa-
lives Charles T. Foster (Rep., Ham,
Glton). Earl Crawford Dem, Union
and Wayne), j. Frank Smith (Rep.
Hippecanoe), Virgil Simmons (Dem.,
Adams and Wells, John M. Cantley
(Dem., Cass), Herbert H. Evans
(Rep., Henry, and DELPHI l.. Nc
Kesson Dem, MARSHALL, majority
Door leader.
Might be Unconstitutional
Variously they described it as un-
fair to the motorist, defeating the
object of the license tax, probably
unconstitutional, and, by Cantley,
as "taking up a fuss between Re
publican senators and the highway
commission after we've said we'd
let them wash their own linen over
there
In the long run" said McKesson,
Sstate highway building has done
more to reduce county taxes than
could be done Il we put the whole
S2o,Oo0,0OO highway department
revenues into the states general
fund"
The personal income tax measure
awaits appointment of conference
committees to iron out, If possible
differences between the two houses
Bills cutting bonded debt limits
on county unit and township roads
we're killed by the senate in special
action on measures recommended
BY the Joint tax committee.
The county unit limit would have
been cut from / to = per cent and
the township (three mile road law
free gravel road limit from to l
per cent.
Approve Merger Bill
All mandatory levy minimumS
were repealed by a vote of AZ to 0.
Bills permitting mergers OF coun-
ties and townships by referendum
vote were approved.
Also a measure requiring women
as we'll as men to pay poll tax and
lifting the 5o-year limit was voted
80 to g.
Back TO the senate today went
The bsckett-Huff nil for concur
4 renee in house amendments which
= struck out the clause making local
taxing levies hold their 1881 and
1892 budgets to rs per cent of the
1890 budget and inserted instead
the qualification that 1881 and 1882
budgets must not exceed that of
1880, The bill passed the house,
1886, after long debate.