The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1913-01-08
Administration Program
p Calls for Passage and Ap-
proval of Measure Before
Bifurcation Recess = Ap-
parent Shortage of 81, ,800,-
600 Will Be Wiped Out
by the Proposed Action
CORPORATIONS PLAN
VERY STRONG FIGHT
Curtin Starts Fight in Pat
ronage Matter-Bills Ga
lore Are Presented in Both
Houses-Governor Names
Long List of Appointees-
Several Protests Are Filed
Against Sunday Rest Law
by GEORGE A. VAN SMITH
CALL BUREAU,
SACRAMENTO HOTEL,
Sacramento, January =.

Sacramento, January =.
The public utilities corporations will
not be compelled to wait until next
year for an opportunity to liquidate
the apparent shortage in the states
revenues.
Unless there is a radical departure
from what is now accepted as the ad-
ministration program. the gross earn
tngs tax rates on the segregated prop
Arties will be increased and approved
by The governor before the bifurcation
-eeess
!, The committees on revenue and tax
ation probably will not be appointed
, 5efore Saturday The estimates and
comparative figures being prepared by
the state board of equalization may not
be- completed until next Monday. When
those estimates and figures are avail
able for legislative guidance, the i'm
mediate preparation and enactment of
a new rate bill is expected.
The leaders of the majority in SEN
ate and assembly are prepared to ac-
cept the opinions of Attorney General
Webb He has told them that an in
crease of gross earnings tax rates is
tax levy If it is a tax levy it Is
not subject to the referendum pro-
visions of the constitution. The new
rates may be established in January
and be applicable IN March.
APPARENT SHORTAGE LARGE
The apparent shortage for the en-
suing biennial period is approximately
s1.S00.0OO This can be wiped out by
increasing the gross earnings rates by
25 per cent. 1t was believed that the
banks which are included in the segre-
gated classes would not be subjected
10 rate increase. Members of the
state board of equalization are no
longer confident on that score.
1t is expected that every corporation
in the segregated classes will make a
vigorous fight against the proposed in
creases. Wherefore, the first leg of
the bifurcated session which was
promised should be dull, will be en-
livened by the presence of a small
army of corporation attorneys and tax
experts. The rates can only be in
creased by the votes of two-thirds of
all the members elected to both houses
That means 81 votes in the senate and
"a in the assembly. Obviously it will
be easier to line up the necessary
votes before the recess than after The
opposition to the rates will have in
nnitely fewer opportunities to convince
senators and assemblymen. Convic-
ton will be more difficult Immediately
before the return of the legislators to
their respective districts for the re-
cess than later, when the same legisla-
tors might be cut off from their agi-
tated constituents
BIG STICK IN PLAY
The proportions of the increases in
guessed at until the data being pre-
pared is available to the committees
and the governor. There is a gen
eral feeling that the transportation
companies rates will be jumped from
per cent to per cent The fight will
be short and sharp. The big stick will
be employed If necessary. The biggest
task OF the legislature VIII be accom-
plished before it's members go home to
assist their constituents in ferreting
out the merits and demerits of few
hundred bills covering a range OF sub
jects from gopher scalps to the use OF
cut stone manufactured in Folsom
prison.
The first gun Of the running fight
between the democrats and the major
ity was fred in the senate this morning.
1t was only a piece of light ordnance.
it was supported, however. by a prom
ise to keep up the skirmishing until the
last day OF the session.
AS forecasted by The Call. patronage
was the bone of contention. The un-
limbering of the guns disclosed that
Continued Page 4, Column