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

Il "tax-the-riCh" bill that vii
pay Federal expenditures for about
10 days was passed by the House
last Monday by vote Of 1926.
The measure that will Weld ap-
proximately s25OO00 900 a year to
the Treasury when the govern
ment is spending at the rate Of
s26.000000 a day-provides for in
heritanCe and new gift taxes. boosts
personal income taxes Of persons
making over $4,000 q 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 a letter TO stock
holders Mr.. Schubert charged that
the sOak-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-
uldI - 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 matter of fact.
10000 of the 90 900 Standard Of In
diana stockholders own 100 or few
er shares
The average holding is 165
shares. and no single stockholder
owns as much as + per cent OF the
stock. About 100000 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
will take at least a week to pass
the measure after it reaches the
floor, thus putting the Onus of ad-
JoTnment delay on the Senate.
n
a BROADENING in the scope
4 n 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 M. Logan, act
ing PWA state director. Hereto
fore. Federal authorities have re-
fused to accept bonds of munich
palitieS whose tax rate exceeded
the $3.50 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
almost 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. II was the first time
since August, 1929-five years to
the month-that prices have been
so high.
TN its first annual report, the
Il Federal Deposit Insurance Corp.
this week estimated its liability to
1929 insured banks at S18.000,000
This report mas 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 a depoSitOr were put at more
than S41000.OO0 The corpora
ton said that in the 18 months
ended in June, a total of % in
sured banks had failed. FDIC's
liability in the 10 which have been
linuidated was listed as S2,76O000
out of s4O8S.OOO 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 1S-month 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 1865 institutions involv-
ing deposits of s2.47S.S31 900 dur
ing the 10 years ended in 1880.