The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-02-22
MCNutt Forces MaSSed for
Crushing of Foes at
Session Today.
COUNT 66 FOR VOTES
Only One More Needed to
Assure Administration
Victory in House.

through the assembly.
Representative Edward H. Steir
Dem, Bloomfield), majority foo
leader, was checking house mem
bership list before noon recess, anc
it was reported that, with Speaker
Earl Crawford voting, SiXty-s i1
votes would be garnered for sus.
pension of the rules. Sixty-sev
votes are needed and administra.
ton leaders we're seeking the
clincher.
The test will arrive when the bill
comes cut of committee with {
favorable report signed by eight
committeeman supporting it. In ad-
dition, there were to be four non
signers of the measure from COM
mittee and a minority report for in
definite postponement by RepreSen-
tative J. CHM Ellason Dem, Ham
mond.
Acts in Senate
Senator Anderson Ketchum dem.
Greensburg), majority floor leader
in the upper house, also was
counting noses energetically, on the
supposition that the excise meas
ure would be damned through the
house.
He said he was dubious as to
whether the senate would consent
to passage under suspension of the
rules, but that an effort would be
made if the house acted
Passage Of the sales tax bill is be-
lieved assured, despite the declara-
ton of manufacturers and mer-
chants of the state that it will deal
business a crushing blow.
Against their statements are those
of farmers and other real estate
holders, who see in the sales levy a
means of broadening the tax base,
and taking some of the burden from
realty.
Public Hearing Held
r" Views of both groups were pre-
sented at meeting Tuesday night
of the house of representatives ways
and means committee in the house
chamber.
Despite the short advance notice
of the meeting, the chamber was
filled and there was an audience of
fair size in the galleries.
The hearing followed a day of
worry for Governor Paul V. McNutt
and his cohorts. Originally, it had
been planned to rush the bill
through by the caucus route. The
caucuseS were held, but failed to
develop support for the measure
that had been anticipated.
Anxious listeners at the hearing
were Frank T. McHale and Virgil
Simmons, McNuJt advisors. Several
members Of the senate finance COM
mittee, which will consider the mea-
sure in the upper branch, were pres
ent, as was Senator Anderson
Ketchum Dem, Greensburg), presi-
dent pro telil. Of the senate.
Friedrich AssaiIs Bill
Opening the attack on the bill,
John E. Friedrich of Kokomo, presi-
dent Of the Indiana State Chamber
of Commerce, a manufacturer, de-
clared in regard to economic con-
ditions:
I'VE are in the twilight zone to-
day, and we know not where we are
going"
He expressed opposition to any
additional taxes and urged further
reduction in governmental expenses.
Speaking for the ~etail merchants
of Indiana, j. Irving Late, FIT
Wayne merchant, asserted they are
not trying to evade their share of
taxation but the new tax would
be burden greater than we can
carry"
He said merchants pay a heavy
part of the property taxes, as stores
are on choice real estate.
Late said SO per cent of Indiana :
merchants lost money in 1882, and
that the outlook for 1888 is for less
business than in the preceding year
Tax Strike Proposed
Paul W. Kerr of Elkhart opposed
the bill on behalf of manufacturers
Asserting that SURPRISES which man.
ufacturers had accumulated in good
years either are exhausted or near
exhaustion, Kerr said the sales tax
would be harmful, in that manufac-
turers in the state would buy sup
plies elsewhere to avoid the tax.
If there is going to be a tax
strike, let's make it 100 per cent,
was the proposal of George Firmin,
South Bend merchant, referring to
a threat of such action by some In
diana farmers.
Speaking for the bill, Gavin L.
Payne Of Indianapolis, presenting
views of real estate men. asserted he
has not seen ANY foreclosures of
merchants, but has seen thousands
of farmers foreclosed."
System Called Just
Payne pointed out that Friedrich,
opposing the sales tax, was a mem
Der of the Indiana tax study COM
mission and signed its report favor
ing retail sales tax Of per cent.
A member of the house, Repre-
sentative John Napier Dyer Dem.
V;ncennes) spoke for the bill, de-
Caring its enactment would mean
that 100 per cent of the people
would pay 100 per cent of the
taxes"
Pea for the bill was made by
Lewis Taylor, tax and legislative
representative of the Indiana Farm
Bureau. who denied statements
of merchants that they could not
pass the sales tax on to the consum-
er and assailed the plea for levy
on intangibleS.