Evening star., 1932-08-04
Legislature Has Not Done All
1t Could to Aid, Says
Boards Statement.
LATER HELP POSSIBLE,
POMERENE DECLARES
Immediate Loan Had Been Asked,
With Plea for $35,0O0,000
to Be Made Later.
BY the Associated Press.

BY the Associated Press.
The Reconstruction Corporation to-
day refused to extend any destitution
relief aid to Pennsylvania at this time.
Gov. Pinchot and other State officials
had requested an immediate loan of
S10,000,O00 and said they would ask
later for another $35, 100000.
Chairman Pomerene in brief state
ment said the board felt that the Penn
sylvania Legislature and various poll
tical units in the State had not done
all they could to aid in the situation.
Therefore, he said, Federal relief
would be withheld at this time, although
the board felt that some aid should be
given later.
Pomerenes Statement.
The statement by Chairman Pome-
rene follows:
1T is our belief that on proper show
ing we should extend some relief to the
State of Pennsylvania, but it must be
borne in mind that We have funds en-
trusted TO our board which are 10 be
expended not in lieu of State or local
relief, but to be supplemental thereto If,
when and as necessary.
After a full hearing we feel per-
suaded that the Legislature Of PennSyl-
vania and its several political Subdi
visions have not done their full duty
with respect to furnishing funds for re-
lief purposes.
I'VE shall defer action with regard
to relief for Pennsylvania until we know
what the Legislature will do for the
relief of its own people"
Claimed Desperate Need"
Speaker Jay Goodnough of the Penn
sylvania House claimed the need was
desperate"
I'VE feel justified in asking this" he
told the directors, "for the reason that
over a period Of many years Pennsyl-
vania has contributed one-tenth of the
total income of the Federal Govern
ment amounting in round numbers to
$276. .00o. 900.
I'VE have received annually in return
in the way of subsidies less than
per cent of the amount we have con-
tributed, being in round numbers
$7,000.000 received by the common
wealth in the way of subsidies from the
Federal Government.
In asking this ALLEGATION, may I
point out that we are only asking an
advance which we must pay back, to-
gether with interest out of the COM
paratively small sums which Pennsyl-
vania receives in the way of subsidies
from the Federal Government"
Clyde L. King secretary of revenue,
outlined tax legislation passed or pend
ing in the present special session Of the
legislature
THE taxpayers to local governments
and the taxpayers who pay taxes into
the State treasury both have a declin-
ing ability to pay" he said.
From existing tax channels we feel
confident that Pennsylvania has done
all that can possibly be expected other
than certain tax proposals now before
the Legislature.
For these reasons we feel that the
need of aid from this body as permitted
by law is urgent"
Lieut.. Gov. Edward C. Shannon, Mrs
Alice Liveright, secretary of welfare;
Attorney General William A. Schnader
and Senators Baldwin and Scott ac-
companied the Governor. Speaker Good
nough and DR.. King to Washington.
Pinchot Withholds Comment.
Pinchot had mo comment to make"
on the refusal. He added that he had
no comment to make on the Leglsla-
ture." Immediately after. the confer
ence, he left for Harrisburg.
The entire group which conferred two
and one-half hours with the corporation
directors, however, came out of the
meeting with feeling that the cor
pcration's action was far from a refusal
of Federal aid. They believed it would
winding up its work. and that the cor
poration would be willing TO extend aid
when that was completed.
State Senator Frank Baldwin of
Potter County. chairman of the
the decision made adjournment of the
Legislature next week a certainty.
He interpreted the decision to mean
the Legislature so far had not done
its full duty" He emphasized the so
far"
If the Talbot $l2,OOO,OOO direct relief
bill were passed and added TO the $25,-
000, 900 bond issue for repayment of
municipal subdivisions for unemploy-
ment relief. he said, he thought the
Finance Corporation would receive the
Governors request for an immediate
advance of $10,000.000 more favorably. !
DR.. Clyde L. King. State secretary of /
who told the directors Penn |
Sylvania'S tax burden could not be in
creased, said he thought the decision !
was justified.