Evening star., 1933-08-06
Kentucky Acts
To Get Part of
Federal Funds
Engineer Is Chosen
for Highway Post
Vacant q Year.
BY HARRY BLOOM.

Special Dispatch to Tho Sd.
LOUISVILLE, KY, August 5.-Two
moves designed to keep Kentucky In
the good graces Of the Federal pay
master were made this week by State
officials. The State Highway Commis-
sion, in order to qualify for Kentucky S
share of the emergency road fund
amounting to more than s7,500,000, ap-
pointed a chief engineer, a luxury 1t
dispensed with a year ago. He IS w. o.
Snyder, who in 13 years worked him
self up from craftsman to top post.
The other move, not quite SO definite,
was Gov. Laffoons indirect admission
that he would call special session of
the Legislature about August Is to
provide relief funds to supplement the
Federal grants. The State was in
formed in bluntest of terms that it
will not receive cent after August 15
from the r. F. C. unless it takes action
in good faith to provide about S3,000,-
900 in relief funds. For the past year
Kentucky has been relying exclusively
on Uncle Sans bounty.
Special Election Called.
While the Governor has never COM
mitted himself about the special ses-
sion, his conversation and other actions
are clearly indicative of what he has
in mind. For one thing, he has called
special elections for August 10 in five
legislative districts to fill vacancies
existing by reason Of designations
or deaths. Unless he fully intend
ed to call special session, there
would be no point in holding the spe-
cial elections, because the vacancies, in
the normal course of events, will be
filled at the regular elections in No
vember
Gov. Laffoon has made it plain that
he intends to raise 100000 to 81 200, 900
Of the required 100000 from some
sort of a beer tax. He also intends to
ask the Legislature to set aside half OF
the beer tax in an inviolate fund for the
liquidation Of the State warrants, which
now constitute a floating debt in ex-
cess of S15,000000.
The warrants sell at discount of 10
per cent, but the Governor is convinced
that the creation of an inviolate retire
ment fund will bring them to par by
January l. He linked this with the re-
lief problem because of the serious loss
the State suffers in buying with war
rants quoted at 90. He estimated that
in the last 18 months Kentucky has
spent s1000000 in excess of actual cost
of supplies because warrants sold below
par. Every contractor, he pointed out,
figures the warrant loss in making bids.
Furthermore the interest charges on the
warrants is another burden that could
be lifted if they are liquidated. These
savings, he feels, would go far toward
enabling the State to provide relief for
the unemployed.
Beer Taxes Outlined.
Taxes on beer Tentatively considered
are small manufacturing tax. license
tax on retailers and license tax C1
agents distributing beer manufactured
outside of Kentucky. The Governor
said that he favors a reasonable beer
tax. so as not to kill the goose that
lays the golden egg. He would also
differentiate in the retail tax between
the dispenser who serves on the prem
ises and the small dealer who merely
delivers package goods.
AS for the remainder Of the So
100000, Gov. Laffoon has asked DR..
Frank L. McVey, president of the
University of Kentucky, and Prof.
James W. Martin, director of the uni
versity's business research, to help him
with recommendations. Among the
suggestions being weighed are small
taxes on soft drinks, amusement admis-
sions, manufactured tobacco, sales Of
electric current and on pari-mutuel
betting.