Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1935-04-25
OMNIBUS BILL
PASSES SENATE
Large Savings to Big Cor
pOrationS are Shown En-
bodied in Bill.
Two of Governors Nom
inees are Rejected by
Upper House.
Bv HJALMAR PETERSEN,
Lieutenant Governor of Minnesota.

(Week or April 10 10 AO)
Proclaimed by it's sponsors to be the
most important legislative act OF TINS
session, the omnibus tax bill has been
passed by the Senate. The upper
chamber passed the bill after only
about six hours of debate, as COM
pared to three days of battling in the
House of Representatives.
The vote was 80 to %. Five con-
sentative NEUTRALITY-SUSPICIOUS. L. r.
Berg, James A. Carley, Nj. r. Calvin,
Gerald T. Mullin and d. d. Murphy
Joined with the liberals in voting
against the bill largely because OF
the per cent retail sales tax which
is the principal feature of the omnl-
bus plan. Two members who voted
with the liberals at the beginning of
the session, but who have voted with
the conservatives much of the time
since, voted for the measure. They
were Senator Patrick Farnand of Hib-
bling and Senator William L. Dietz
of Montgomery
Amendments Defeated.
Several amendments to the bill as
it had come out of the Senate tax
committee were -oted down. These
included one by Senator Arvid Ruot-
sinoja of Kimball which would have
increased the maximum income tax
rate from s per cent. as provided In
the bill. to IL per cent.
The Senator cited figures to show
that under the legislative tax pro-
gram the Minneapolis. Gas Light Com
pany would receive a reduction in
its property tax of $4,000, while it
would pay only 100000 more in net
income taxes under the omnibus bill.
He said the property taxes OF the
Northern States Power company
would be cut 100000 while the net
income tax of the company would be
boosted only $156.0O0. He asserted
that the net income levy should he
increased sufficiently to prevent a dis
proportionately large tax reduction
for big corporations.
Despite the figures cited by Sena-
tor Ruotsinoja, however. Senator
Charles N. Orr of st. Paul and Sena-
in the net income taxes would drive
business from the state.
Senator J. l.. Mcleod of Grand
Rapids offered an amendment which
would have boosted the maximum tax
rate to 90 per cent on all net income
over 100000 1t was also defeated.
The bill was sent back to the
;nb ~ Of
amendments which had been made,
the principal complaint being against
the 2 cents on bank checks. AS a
result the measure was sent to con-
ference in an effort to iron out the
differences between the two houses.
Governors Veto Due.
But even though both chambers
may come to a speedy agreement on
the matter the bill apparently is
doomed. When it goes to Governor
Olson it is expected to be vetoed at
once.
Governor Olson has repeatedly de-
clared his opposition to sales tax,
and it was almost foregone con-
clusion from the start that the gov
ernOr would veto any bill containing
such a tax. He points out that the
legislative tax program worked out
by the conservative ma jority is a de-
vice to shift the burden of taxation
from wealthy property owners to the
backs of the poor, who would be
hardest hit by the sales tax. levied
as it is on necessities of life.
The Senate has passed bill fol
the subm iSSion of constitutional
amendment to abolish the state prop
ery levy Previously passed by the
House. this bill does not require the
law. The amendment will be sub
mitted to the voters at the 1886 cleo
tion.
ErickSOn'S Statement.
Carl r. Erickson. state purchasing
commissioner. has issued statement
in connection with the testimony
given by Donald c. Clark of ST. Cloud
before the Senate investigating com
mittee. Clark. a contractor. has since
been indicted in StearnS county or
charges of issuing checks without suf
ficient funds in the bank.
81 am pleased said Mr.. Erickson
that the Senate investigating com
mittee. after consistent efforts on oul
part. finally accepted documentar,
evidence proving the falsity of the
story of their star witness. Donald G
Clark.
AT the time that Mr. Clark re
lated his fantastic story that l Offered
him a sub-contract for furnishing thu
stone for the new state office build
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