The log cabin Democrat., 1921-05-11
COMMITTEES WORK
 OUT A NEW PLAN
(Continued from page 1.)

ation for the past several months is a bond issue to take care of the floating indebtedness and provide additional funds to meet anticipated deficits of the next two or three years, in the hope that the proposed constitutional amendment removing the limit of tax alton for school purposes will be adopted at the 1922 general election, after which a sufficient rate of tax may be levied to maintain the school and provide for payment of it's debts. All attempts of the board to sell such bonds, however, have proved unsuc- cessful. Negotiations have twlca dur ing the past year proceeded to the 1 point where the bonds were actually printed, but on account of the adverse 1 financial conditions and the fact that | the board was unable to show how the bonded debt if contracted could ever be paid, the negotiations have fallen through. Such d plan, also, is based 1 upon the success of the amendment at the polls, a result which, to say the least is uncertain. It is very difficult under the provisions of the Arkansas constitution for ar amendment to be adopted even when the-e IS no active opposition, and the proposed eGuea- tlonal amendment, on account of certain other provisions in addition b those regarding taxation, has already encountered opposition which may be organized to such an extent before the election as to prove fatal to it. Should the bond issue be hoated and ;hc amendment fail the school would then be plunged so deeply in debt that extrication would be practically i'm possible.
 Two other suggestions include the voluntary assumption of an additional millage tax and a canvass to increase support the school one year ago. Both of these plans have been tried in this district and elsewhere in the state and have proved intellectual and inadequate. It was the consensus of opinion that neither of these plans could be successfully operated under present conditions.
 This virtually brought .he situation to one of two alternatives, the curtail- ment or abandonment of the school or system of extra-legal taxation which would be fairly uniform and | just, which would not be seriously felt and which would maintain the school and provide for a gradual lifting of it's debt
 Accepting the latter alternative as preferable, the board and committees yesterday afternoon decided to rec ommend the adoption in the district of schedule of luxury and sales taxes upon purchases by citizens of the dis trict. Details of the plan have not yet been worked out. A sub-comm;t- tee composed of G. L. Banner, R. T.. Cole and Frank E. Robins was ap- pointed to devise tentative schedule which will be presente! later in the week. If adopted, all the bushes S men of the district affected will be called into a conference and the whole matter laid before them. It will, of course, require unanimous co-opera- tion of business men and citizens for thes uccess of the idea.
 While, as stated details of the plan have not been worked ou-, it was sug- geSted that in the matter of so-called luXuries an additional tax similar and perhaps equivalent to Shc government war taxes could be collected for the school. This would mean an add- tional penny or two on soft drinks, cigars, tobacco and cigarettes, gaso- line, moving picture admissions, etc. Without imposing much hardship upon anyone, several hundred dollars per month could be collected from these sources. A sales or consumption tax, such as is under consideration by the federal government to supplant other war taxes, is also proposed to be op- erated in conjunction with the luxury taxes. Under this plan every dealer selling merchandise to a purchaser re- siding in the Conway school district would collect a tax, the rate of one per cent being tentatively proposed, on all cash sales or on monthly
 when paid. It was sugn
 the collection of such
 simplified by providing stG
 ferent denominations, to bG
 by the merchant or dealer, |l to articles sold, and paid for by the consumer as purchases are made. Thus, upon payment of S25 grocery
 bill on the first of the month, the grocer would attach 25-cent IS. O.
 S." stamp to the bill, which the cus-
 toner would pay. If a $50 suit of clothes were sold for cash, the cus-