Bulletin of the Indianapolis Chamber of Commerce, May 1932, Vol. 48, No. 5

              THE
1ND1ANABOL1S CHAMBER, OF COMMENCE
MAY, 1932
Reduction Mo
Resolution Urges Action To
Lower Federal Expenditures
Borinstein  Declares
Drastic Action Needed
A plan of concerted action by Indianapolis federal taxpayers to
bring about substantial reductions
in federal expenditures as the first
and most necessary step toward
balancing the federal budget was
formulated at a meeting of taxpayers called by Louis J. Borinstein,
president of the Indianapolis
Chamber of Commerce, in the
Chamber of Commerce on Friday,
May 13. In addition steps were begun to send a delegation of Indiana
taxpayers to Washington to meet
with the Indiana congressmen and
urge expenditure reductions.
The meeting was one of a series
of such meetings held in large cities
throughout the country, as part of
a nation-wide movement begun several weeks ago by large city chambers of commerce.
A resolution was adopted by the
taxpayers and ordered sent to Indiana members of congress, and in
addition all those present agreed to
let their congressmen know individually concerning their sentiments.
President Borinstein invited the
Indiana State Chamber of Commerce and state trade organizations
to select members of a delegation to
accompany him to Washington to
discuss the need of reducing expenditures face to face with the
members of congress.
The resolution adopted was as
follows:
"The most important step toward
economic recovery is that of reducing the cost of government. During
the decade following the war, national income increased about 150
per cent while the cost of government increased about 500 per cent.
Now the national income has decreased to a pre-war basis, but governmental expenditures this year
will reach their highest total.
"Expenditures of the federal government exclusive of debt charges
increased 32 per cent in the four
years ending with the close of the
present fiscal year. In that period
industrial production declined 32
per cent, the cost of living 20 per
cent, and the average weekly earnings in manufacturing industries
29.6 per cent.
"In the face of this situation, we
are threatened with economic disaster unless the federal government
and all other branches of government promptly inaugurate most
rigorous economy, involving reductions in very large amounts, to
bring the cost of government within
the ability of the country to pay. Be
it therefore,
"Resolved, That the members of
congress from Indiana, including
all our congressmen and our two
senators, be respectfully urged to
endeavor to the utmost to bring
about the enactment of legislation
at this session of congress to adequately reduce the expenditures of
the federal government."
Mr. Borinstein, explaining the
purpose of the movement, said:
"Almost universally, the citizens
of our country are awakening to the
TO INDIANAPOLIS
TAXPAYERS
At this critical juncture in the
movement for reduction of the
cost of government every interested taxpayer should communicate with his members of congress and individually urge them
to do their utmost to reduce federal expenditures adequately. It
is suggested that you communicate with Senators James E.
Watson and Arthur R. Robinson,
and Representatives Louis Ludlow and William H. Larrabee.
fact that governmental expenditures must be readjusted sharply
downward. We have come to the
time when we must definitely commit ourselves to retrenchment of a
most drastic and even unpleasant
kind, or else accept the economic
ruin which will certainly follow the
furthes adherence to present fiscal
policies.
"With due allowance, there is
sufficient accuracy in the estimates
recently made that the national income this year will be perhaps only
thirty billion dollars, much less
than half the income of three or
four years ago, whereas, the total
cost of all government is this year
more than thirteen billions, or the
largest amount we have yet been
called on to spend for government.
"We are, in other words, taking
from 45 to 50 per cent of this year's
national income to pay the expenses
of government. This presents an impossible state of affairs, impossible
in that it is not at all possible for
the national income to be turned
over so largely to governmental
use; that such large a proportion as
has been levied will simply not be,
cannot be, paid.
"There is therefore no alternative
to the necessity of sharply reducing
governmental expenditures. While
these facts apply equally to every
phase of government, we have met
here today to consider one very
large and important division of
government, and to make known to
our representatives in that government the earnest beliefs which we
hold.
"The federal government is moving toward enactment of new appropriations and revenue legislation. Faced with a deficit so big that
it means spending $50,000,000 every
week more than the government receives, it has become at last apparent that the first step toward balancing the federal budget must be
the reduction of expenditures, before enacting new or increased
taxes. The recovery of business is
so dependent upon the taking of this
first step, since it will be hindered
by any increase in this proportion
of income taken for government,
that there must be no failure in the
movement for drastic economies.
"Several weeks ago, we participated with the Chicago Association
of Commerce and other large city
commercial organizations in a joint
move to awaken our national leaders to the seriousness of our plight
and to reveal to them the great
sincerity of our belief that reduction of the cost of government is the
first and most necessary step.
(Continue! on Page 8)
World Watches
Speedway Race
Fast Cars Promise Day
of Thrills
The grand spectacle of automobile racing, the big show which
carries the name of Indianapolis to
every corner of the globe, is ready
again for its twentieth annual
running on Decoration May, May
30th, at the Indianapolis Motor
Speedway, the world's greatest race
course.
Bigger and better than ever, despite the unsettled trend of the
times, it has all of the factors this
year to make it the fastest and most
interesting automobile race in history.
A record breaking total of 72
cars, despite an increase in the
entry fee and the requirement of
faster qualifying time, have applied
for the opportunity of repeating and
the qualifying runs over a ten mile
course starting Saturday, May 21,
promise to rival the race itself in
interest. For only forty starters are
allowed under AAA regulations.
The entry fee was increased this
year from $100 to $200 and cars
must do at least 100 miles an hour
for consideration.
The first bona fide factory entries
since the early days of the Hoosier
race with three manufacturers racing under their own banner; the
resulting competition between the
semi-stock jobs and the special
cars which are doing their utmost
to increase their power and speed
and the gathering at the track of a
group of daring youngsters who
have been burning up the smaller
dirt tracks of the country during
the past year are the elements upon
which experts predict record-
breaking time and thrills.
Studebaker, important in the
early days of the Decoration Day
classic, leads the factory competition with a five-car entry, the
largest manufacturer's bid since
before the world war. They have
groomed their new jobs carefully
and established an early camp at
the track in preparation for the
competition. George Hunt, noted
race car engineer, is in charge of
the camp with Tony Gulotta in the
No. 1 car as team captain. Gulotta
assumed the lead of the race with
less than 100 miles to go last year
after Billy Arnold, 1930 winner had
crashed, but followed Arnold
through the wall with victory in
sight.
Buddy Marr, who tested a Hudson
motor in his Marr Special driven by
Chester Miller into tenth place last
year is back with two spanking new
Hudson cars. They are declared to
be the most beautiful cars ever put
on the track, blue in colors, identical in design and construction and
built low along continental lines.
Russell Snowberger, who pioneered in the return of the semi-
stock cars to the 500-mile race with
a rebuilt Studebaker motor which
came under the new restrictions
two years ago when the piston displacement requirements were raised
to 366 cubic inches, has a new
Hupmobile-powered car, a Hup
Comet, in the contest.
(Continued on Page 3)
Felix M. McWhirter
McWhirter Urges
EconomyProgram
Named   Vice-President
of National Chamber
Basic adjustments, which "we as
a people must make in the policies,
practices and habits of state and
local finance if we are to avoid a
recurrence of our present difficulties," were set forth in a stirring
appeal to chambers of commerce
and voluntary associations participating in the nation's effort to solve
its complex tax problems, by Felix
M. McWhirter, former president of
the Indianapolis Chamber of Commerce, in an address before the
annual convention of the Chamber
of the United States, at San Francisco.
Eight specific proposals were
made by Mr. McWhirter.
"We should," he said:
"Be less hasty in creating new
public activities;
"Weed out the activities of government those for which the need
has passed:
"Liquidate a considerable part of
existing public indebtedness in
order to reduce annual charges for
debt service;
"Remodel the structure of local
government, adapting it more
nearly to the necessities of today,
and cutting out the duplications of
organization, functions and services
which grew up in response to the
needs of a horse-and-buggy era;
"Proceed with greater caution in
pursuing tax relief schemes, insisting upon the perfection of airtight control of expenditures which
will assure dollar-for-dollar application of the proceeds of any new
tax to the relief of existing taxes;
"Rely less upon the magic of
mandatory state laws to assure
sound finance and adequate local
services and more upon our ability
as citizens to make decisions suited
to our community needs and resources;
"Encourage upstanding public
officials to use their best judgment
(Continued on Page 2)
Study Problems
Of Local Taxes
Cuts In Government
Costs Necessary
First steps toward reducing the
cost of local government have been
taken by the board of school commissioners for the Indianapolis
school city.
Prior to promulgating the budget
of the school city for the fiscal year
starting July 1, the school commissioners in a formal statement announced the budget would be cut
$500,000 below the current budget
total of $7,389,251. This reduction,
they announced, will include a 5 per
cent reduction in the compensation
of all school employes earning more
than a minimum of $1,200 per year.
A preliminary survey of the fiscal
situation in Indianapolis several
weeks ago indicated that reductions
in the three major budgets of the
city, school city and county would
have to approximate $1,500,000
merely to avoid an increase in the
tax rate, to say nothing of possible
reduction of the rate.
Developments since this estimate
were made have indicated that it is,
if anything, too conservative. Poor
relief expenditures are continuing
at a much greater rate than in 1931,
April expenditures being approximately double the expenditures of
April, 1931, while the expenditures
of the first three months of 1932
were only about 35 per cent ahead
of the same months of 1931.
This indicates a much larger proportionate increase throughout the
summer months, than was apparent
in the winter months, and that
there will be no such decline in expenditures during the summer
months as occurred last year.
Early reports from the county
treasurer indicate a larger increase
in delinquency in the spring installment of taxes than some had anticipated.
A further complication has arisen
in the difficulty of selling the tax
anticipation notes of local units of
government, even including such
notes for poor relief. Governmental
payments for many purposes, including personal service and supplies, would have to be delayed
several months if it becomes impossible to make temporary loans
in the second tax-paying period of
the year.
BEAD THESE
Page 2
Torrence Plan
Page 3
Air View of Eace
Homeless Men
Page i
Editorials
Resolutions
Page 5
Business Beview
Page G
Coca-Cola Plant With Art
Page 7
Storer Luncheon
Foreman Training