The Savannah morning news., 1902-11-20
THE FRANCHISE TAX
ISSUE MADE IN WAYS AND MEANS
COMMITTEE.
NEGATIVE VOTE BY 7 TO 8.
DISPENsARY TAX LEFT WHERE 1T
WAS BEFORE.

Proposition to Impose n Tax of $50
Per County on Liquor Dealers
Stricken Out of the BiII-Chnirman
of Committee Warns Up and Tells
Members of n Prospective Deficit
of $25q.OOO, and That Some Ar
rangement Must BE Made for Rails
ing the Money.
Atlanta, Nov. 19.-The franchise tax
issue was squarely presented in the
Ways and Means Committee of the
House to-day, and at the conclusion
of a warm debate the vote stood to
8 on the test proposition against the
tax.
The committee first disposed of two
sections of the tax act. After a warm
discussion the section proposing to in
crease the tax on dispensaries to 81, 900
in counties of more than 10000 and to
$500 in other counties was defeated,
and the dispensary tax was left at
5000. just where it stood last year.
Then the committee took up the sec
ton taxing liquor dealers $50 for each
county into which they ship liquor to
any one but a dealer. and voted adj
versely on that. thus striking it out
of the bill.
When these two matters had been
disposed of Chairman Reid had some
interesting things to say. II tell you,
gentlemen of the committee" he said,
unless you stand by me in the prep
aration of this tax bill, and levy taxes
where we can raise a revenue. we are
going to have a deficit in the state
treasury. that we will not be able to
wipe out in ten years."
Deficit of 100000.
The chairman spoke of the fact that
with the absolutely necessary appro-
priations this year and without dol
lar for special appropriations, there is
going to be a deficit of at least $780,
600. There was deficit of more than
100000 last year, he said, land right
now the state is confronted by a pros
pective deficit of nearly $3.50, 000 and
is unable to make provision for it,
Mr.. Tigner of Muscogee then Of
fered a resolution to the effect that
the committee should consider no
amendment to the general tax bill rel
at1ve to the taxation of franchises, and
no bill on that or any other subject
until the general tax bill has been
disposed Of
Mr.. Reid took the floor to oppose the
resolution. Those who oppose the
taxation OF franchises are trying to
defeat this legislation by delay" he
said. II do not propose to see this
committee throttled, nor any member
of it prevented from offering any reso-
luton he desires, which is germane
to this bill.
shouId Re Taxed
81 tell you now, 1 propose to offer
an amendment to the general tax act
taxing franchises of public utility COR
porations, and if that is voted down. 1
intend to offer an amendment putting
on every one of them an occupation
tax, so that we may get back some
of the money they get out of the peo-
pie. Franchises are property, and
there can be no good reason advanced
why they should not come within the
scope of this bill. just as any other
property"
Mr.. Reid was followed by Mr.. Tig-
ner, who made a stirring speech, de-
claring that whatever his attitude to-
ward the franchise tax, he opposed
putting it onto the general tax act
as a rider.
The resolution was adopted by a
vote of Z to 8. Chairman Reid at once
gave notice that he would move for
a reconsideration at the meeting to-
morrow, and the committee adjourned.