Evening star., 1934-01-22
PEERY'S TAX PLAN
IS HIT BY GARRETT
Chairman Opposes Increase
and Diverting of Road
Funds to Schools.
BY LESTER N. INSKEEP,
eta6 CORRESPONDENT Of The Star.

RICHMOND, Va, January 22.-Gov.
George c. Peery faces the unalterable
opposition Of Senator w. A. Garrett,
chairman of the Senate Finance Com
mittee, to his tax increase program, the
latter announced last night.
The Finance Committee chairman
also made it known that the joint COM
mittees Of the two houses are In hope
less tangle at this time on the liquor
bill and indicated that it might become
necessary to make some broad conces-
sions to the hotels and restaurants who
wish to sell liquor by the drink.
These are the two developments
which the General Assembly was to
face when it reconvened today after
the week end recess, q prospect that
many wished they were not forced to
encounter.
"Not only will I not act as patron
for Gov. Peery's tax increase bills"
Senator Garrett said, ''but I shall op-
pose them every step of the way after
they reach the Assembly Furthermore,
I shall oppose the proposal to meet the
desired increase in school funds by
diversion Of road funds"
Sponsorship Is Refused.
It Is customary for the chairmen Of
the Finance Committees Of the two
houses to act as sponsors for admin
istration bills, but in this case 1t will
be necessary for the newly inaugurated
Governor to look elsewhere for q
spokesman.
Senator Garrett declared that he had
not talked with q single member OF
either House who was willing to state
bills, by which he hopes to raise
$1,l61 900, Of which a million would
20 to swell the school Golfers and the
balance to meet anticipated deficits.
The Ridgeway Senator also Is acting
rs chairman of the Joint Senate and
House Finance Committees before whom
hearings are now being held on the
dispensary liquor control bill proposed
by the LIQUOR Control Commission and
the license system bill which was sub
mitted as a minority measure by Sena-
tor Henry T. Wickham Of Hanover.
Senator Garrett declared last night
that the demands Of the hotels and
restaurants have left the committees IN
a quandary, and he treely aomltteo
that many members OF the two COM
solidly for the dispensary plan as sub
mitted have been won to the side OF
the hotels and restaurants. AS mat
ter of fact, he said, he can see their
point of view and as result is himself
in a uuandary as to what should be
done.
THE matter has become so serious"
he said, that it may become necessary
to draft a new bill combining certain
features of both the commissions and
Senator Wi"kham's bills"
Senator Garrett declared that while
safeguards against the saloon must be
provided, the General Assembly should
be fair and reasona BILE and it must pass
a bill that is constitutional or face the
absolute necessity for an immediate
special session to do the work over
again. Members of the commission
themselves have admitted. he said. that
portions of the bill as submitted are
obviously unconstitutional and must be
changed
II do not know at this time what we
must do" he declared, land I believe
most of the members of the commit
tees are in the same fix. This is the
most serious situation we have had to
face since I became a member OF the
Senate many years ago and we must
attempt to meet it in the way that will
suit the most people, for we know We
cannot please them ALL
OF one thing he is certain. and that
Is that the liquor bill must be passed
and out Of the way before any other
important legislation is taken up. Be-
cause of its revenue features, he de-
clared, it is absolutely essential that 1t
be gotten out of the way before the
budget bill can be considered.
Dispensary Bill Stand.
Added to the already complicated
situation is Gov. Peery's announcement
that he will oppose any substantial
change in the commissions dispensary
system bill Many members believe
that the new chief executive may f1nd
himself at hopeless odds with the As
sembly on both the liquor and tax in
crease questions.
Hearings we're to be resumed on the
liquor bills at 8 o'clock tonight. IT
we do not finish then" Senator Gar
rett said, I'VE will reconvene at 10
o'clock Tuesday morning and this will
be followed by sessions at o'clock in
the afternoon and 8 O'Clock at night II
we are unable to complete our work at
the morning session AS a matter OF
fact, we are going to continue without
interruption until we can report bill
to the two houses which will have some
chance of pleasing both sides and which
also will embody sufficient safeguards
TO make it certain that the drys will
not have something to seize upon for
revival Of the State prohibition ques-
ton"