The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-08-10
ReOie7O
Highlights of the
News During
This Week.
BY FREDERICK MATSON-
Times Financial Writer

proximately $3.50 100000 year to
the Treasury when the govern
ment is spending at the rate Of
s26 900 900 a provides for in
heritance and new gift taxes. boosts
personal income taxes Of persons
making over $4,000 a year, imposes
high excess profits taxes and the
idea Of a graduated corporation
tax. with a penalty on "bigness."
Almost simultaneously with the
Houses action this New Deal move
was challenged by Edward G. Seu-
bert. president Of the Standard Oil
Co. Of Indiana In letter to stock
holders Mr.. Schubert charged that
the -the-rich" slogan was A
misnomer and pointed out that the
taxes would fall heavily on the
small investor. The letter is quite
factual. and one passage in partic-
ular is worth quoting.
Large corporations have been
singled out for discriminatory tax
alton. apparently in the belief that
they are owned exclusively by the
rich. Yet. as a matter Of fact.
$4,000 of the $4,000 Standard Of In
diana stockholders own 100 or few
or shares.
The average holding is 165
shares. and no single stockholder
owns as much as 4 per cent of the
stock About 10000 shares are
owned by employees. Colleges and
universities. insurance companies
and philanthropic institutions own
considerable amounts. Are these
the rich to be SOaked?"
The bill now is in conference in the
Senate Finance Committee. Most
optimistic observers ConCede that it
VIII take at least week to pass
the measure after it reaches the
floor. thus putting the Onus Of ad-
Journment delay on the Senate.
A BROADENING in the scope
"a Of PWA enterprises in Indi-
ana was foreseen here with the
announcement that the debt-pay-
ing ability and past record of In
diana municipalities in diScharg-
ing funded debts hereafter will be
considered in accepting municipal
bonds at PWA loan securities.
The major change was pro-
claimed by Forrest NJ. Logan. act
ing PWA state director. Hereto
fore. Federal authorities have re-
fused 10 accept bonds of munich
pahtios whose tax rate exceeded
the $50 limit set by law. Partici-
patton Of Indiana MUNICIPALITIES
IN the public works program has
been delayed so far because the
$3.50 tax law limited applications
almost entirely to outright Fed
eral grants.
With a persistence amounting
almot to mOnOtOny one reads of
the daily increase in swine prices
throughout the Middle West. This
week has been no exception, but
the fact that at Indianapolis
values reached S12-a-hundred-
weight caused more than the usual
comment. 1t was the first time
since August. 1929-fve years to
the mOnth-that prices have been
so high.
IN its first annual report, the
Il Federal Deposit Insurance Corp.
this week estimated its liability to
1929 insured banks at $4,000 600.
This report has been eagerly
awaited in banking circles, for
there has been-prObably necessarily
because Of its yOuth-a minimum
of news on FDIC operations.
Deposits in the insured inStitu-
tions, in which it guarantees up to
$4,000 depOSitor, were put at more
than S4lO0O,0OO. The corpora
ton said that in the 18 months
ended in June. total of % in
Sured banks had failed. FDIC's
liability in the 10 which have been
liquidated was listed as S2.76O,000
out of S40S8 600 in deposits.
Leo T. Crowley. chairman. voiced
his satifaction with the situation
when he declared that this small
number Of bank failures constitutes
real evidence of the SoundneSS of
the bank reconstruction program.
For the same 18-montIf period
FDIC reported the closing of 81
uninsured banks involving S35.-
$4,000 in deposits. 1t said :he
recent bank record compared with
failures of 1866 institutions invOly-
ing deposits Of s247SS31. 900 dur
ing the 10 years ended in 1890
A RESOLUTION Outlawing suits
IN against the government by
holders of Federal gold clause"
obligations was approved by the
Senate on Thursday following
strenuous opposition by conserva-
tive Democrats and Republicans.
The resolution would permit suits
for six months after its final enact
ment: then the courts would be
closed to any one who considers
he has lost money on his govern
ment obligations because OF he de-
valuation Of the dollar. The meas
ure now goes back to the House.
President Roosevelt recommended
the action to Congress as part of
his must program of legislation
after the Supreme Courts decision
upholdIng the government in the
gold cases" The court, however.
left the way open for future suits.
From London comes a report that
British money in circulation last
week reached a new high record of
S2.04l .305 .2S5. The highest previous
mark was established last Christ
mas, when the total reached S2O25.-
$4,000. England is now on the eve
of the August bank holiday and
this iumD in circulation Is rODSiG-