The Waterbury Democrat., 1937-04-23
NEH HIKES SEEN 1 LIKELY IN STATE
Govt Reorganization Also to Cut Down Debt, Help
 Building Plans
By GEORGE R. NORRIS, JR.

United Fre1B Stan COrre8pOnuemSD
 Hartford, Conn, April 23-(UP) New taxes and governmental re- organization became dominant is- sues before the general assembly to- day in keeping with the governors urge for economic operation and an expansive building program.
 Taxation leaped into the fore ground as result of agreement of legislature leaders and the chief executive yesterday that SIP, ,O0O, 900 additional revenue must be provided during the coming two years.
 Already the assembly has approved a $25. .OOO, GOO bond issue, of which $14,OOOOOO will be used to fund the states floating debt. The balance, planned for capital building outlays, was found far insufficient in view of pressing demands for more than twice that sum.
 Through governmental reorgani- zation the governor estimated 8 saving of $2,O0O,000 year. but this total was expected to be slashed drastically because of political re- sentiment toward some of the re- vamping features.
 Proposed Taxes
 A five per cent tax on interest and dividends was recommended by the tax department as 8 sure-fire means of guaranteeing an extra $4,000,O00 8 year, leaving $2,000, 900 to be raised from other sources, which included proposed higher lev ies on liquor, tobacco, gasoline, amusementS, cosmetics and adoption of a state income tax.
 The house already. has memorial ized congress to repeal the federal tax of one cent 8 gallon on gasoline, which would mean an appreciable revenue to the state if it were added to the existing state tax. of two cents 8 gallon.
 Governor i'm Conference
 The governor has scheduled con- ference with cliairmen of the house and senate appropriations comnmit- tee to comb the tentative budget and pare all unnecessary expendi- lures.
 So closely does the reorganiza- tion program dove-tail with the treasury that pressure has been brought to bear upon the state to buckle down to consideration of 27 bills approved by the republican, controlled house.
 Thus far the branches have con- cured on one bill, to establish a legislative council to prepare a set program in advance of assembly sessions. The major merit system bil1 remained on the senate calen- dar the object of many democratic caucuses to hurdle "objectionable" features. The main point at issue was to avoid placing appointment oR 8 personnel director in the hands o2 the republican commissioner of finance and control. M
 Democrats Criticized
 Inasmuch as the senate has avoid ed this bill, criticism of the demo- cratic majority arose over. a bill passed yesterday. which provided for other duties for the personnel director, as yet n-existent. Dem- ocrats were charged with attempting to block the merit system bill and clutter it with so many amend ments it would fail of reconsidera- tion by the house.
 Less than seven weeks remained for the legislature to commit itself on reorganization, wade through several hundred judgeship appoint ments, provide appropriations for building, settle tax questions, ac- cept the biennial budget and pass on important departmental ap- pointments, besides nearly thou sand bills of various nature.
 The work of committee began to ease off as hearings were held at rapid clip and bills bundled into the senate and house for action.
 Opposed to Bill
 The appropriations committee was reported as opposed to a bill heard late yesterday creating an annual state fundsof $800,000 to pay hospital and doctors bills of per- sons injured in automobile acci- dents.
 The fund would be repaid by as- sessing the faulty driver for all costs and denying him the right to oper- ate a car until full restitution has been made to the. state. z :.
 The education committee reserved its decision on Q bill providing for state educational grants to paro- chial and private. schools on the same basis as made to public schools. No school representatives appeared at the hearing to support the measure. s V,
 Supreme Court Chief Justice Wil- liam M. Maltbie urged the appro- priations committee t0 provide for $175,OOO for purchase of property adjacent to the state library.
 Mrs. Mabel c. Gilman trustee of the property, agreed to accept $160,O0O, the jurist said. In answer to question regarding the assessed value of the property, he replied:
 ''I don't know how it happened, and I hesitate to tell you. The prop erty is assessed for $30,0O0."
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