The Madison journal. (Tallulah, Madison Parish, La.) 1888-current, 1921-06-25
1921.
to the parishes one-fitth of the amount
imposed by the state up to 5000. 900 q

imposed by the state up to S2O0. 900 q
year.
Governor Parker approved the
agreement, and the Phelps substitute
was drawn In a way to open the route
TO the Legislature, TO carry out the
agreement. and at the same time en-
able the lawmaking body to either in
crease or diminish the tax as condi.
tions change in future.
However. many Of the delegates
from the oil and gas producing par
ishes were not satisfied with the COM
promise plan. They insisted that the
share of those parishes, as well as the
3 per cent tax, should be definitely
fixed in the constitution. Represen-
tatives of the parishes wanted the is
sue settled now, and now left to the
Legislature.
The question was presented to the
convention at the afternoon session,
when the report OF the coordination
committe on the ordinance adopted
recently came up for action. The COM
mittee had redrafted the ordinance
previously adopted. and when the
committee report was read by the Sec
retary Mr.. Phelps offered his compro-
mise substitute.
That had the effect OF starting a
flow Of oratory that continued for
more than three hours. Chairman
Burke of the coordination committee,
announced that he would personally
support the Phelps substitute Mr..
Phelps said his substitute had deem
adopted by many of the delegates as
fair and reasonable and he believed il
would work out satisfactorily for the
state, the parishes and the interests
affected.
Former Governor Pleasant opposed
the Phelps substitute. He urged the
convention to stand by the original
ordinance fixing the severance tax at
3 per cent. Then, reading from a pre-
pared manuscript, he proceeded to
ctriicise the so-called "gentleman's
agreement" in caustic terms. The
agreement, he said, was not and could
not be be binding On the convention.
Mr.. Pleasant then quoted from the
report OF the taxation commission, Of
which Judge Thomas A. Milling, now
attorney for the Standard Oil Com
pany. was chairman, in which the com.
mission favored severance tax rate
in Louisiana equal to the Oklahoma
rate, 8 per cent.
ut will be seen," Mr.. Pleasant said,
that the very tax commission created
by the Legislature of 1920, approved
by the governor, and partly appointed
by him, and consisting mainly of
members Of the Legislature, unanimous
ly recommended per cent sever
ance tax. part of which shall go to
the parishes in which natural re-
sources are severed. But the Standard
Oil Company and other similar inter-
ests step In and hold the governors
feet to the fire with so-called gen.
tlemen's agreement to which this
convention and the citizens OF this
state were not parties. And now it
is requested that we, too, must sac
rifice the dignity Of the state and abb
rogate a portion of its sovereign power
by oasting our feet before the same
unholy fire."
Mr.. Rosen Of New Orleans favored
the Phelps substitute. He said he did
not wish to tie the hands of the Legis-
lature in dealing with the severance
tax situation. Replying to Mr. Pleas
ant, he said it looked as IL the oil pro-
ducing parishes are attempting to hold
the feet Of the convention to the fire.
Former Governor Sanders, in sup
porting the Phelps substitute, said
that he wished to point out that it
made it mandatory on the Legislature
10 allocate one-fifth of the severance
tax to the parishes. Referring to a
criticism by Mr.. Pleasant of confer
ences on the severance tax. Mr.. Sand
ers said the delegates as well as other
citizenS had a right to hold confer
ences. That was the only way, he
said, in which minds can be brought
together.