Evening star., 1946-12-27
Caucus Delays
Session
Democrat Leaders
And O'Conor Confer
On Race Tax Dispute
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BULLETIN
ANNAPOLIS P.-LaSt-min-
ute conferences between Gov.
O'Conor and Democratic lead
ers delayed the opening of the
special session of the Legisla-
ture today. Democratic leaders
in the Senate and House were
preparing to call a party eau
Gus at 11:30 am, 80 minutes
after the time set for the
special session to meet. The
main bone of contention ap-
peared to be a bill to set up a
new basis of taxing race tracks.
BY the Associated Press
ANNAPOLIS, Dec. 27.-A lame
duck State Legislature was called
into special session today to enact
an emergency appropriation bill,
but the big question was what the
legislators would do about pro-
posals to set up new basis for tax
ing race tracks.
The appropriation bill, as pre-
pared by the administration leav-
ing Office next Monday, calls for
transfer of s3,937 $50 from the
State surplus SO salary increases
granted State employees in Septem-
ber may be continued after jan
uary / and State institutions may
be supplied with the funds neces-
sary to keep them running through
the remainder of the current f1s-
cal year.
A controversy growing out of Bal
timore Citys financial difficulties
has taken the spotlight, however,
from the appropriation measure,
which observers said probably would
be passed today with little or no de-
bate.
Signed by McKeldin.
The City Council, faced with the
necessity of raising revenue from
new sources or increasing the prop
erty-tax rate, passed an ordinance
recently imposing per cent gross
tax on the betting pool Of the Pim-
lico race track. The ordinance
was signed by Mayor Theodore r.
MeKeldin on Monday.
City leaders said the measure
could be repealed if the Sherbow
Commissions recommendations on
new taxes for racing were passed, as
about the same amount of money
would be distributed to the city
under the provisions as through the
per cent tax.
The Legislative Council, after con-
ferences with racing interests,
agreed to submit at the special ses-
sion race tax bill based on a mod
iflcation of the, Sherbow ynFc.ssosals
City spokesmen said the modif1ca-
tions were not acceptable.
Funk Claims Wide Support.
Senator Funk, Democrat, of Fred.
erick, who was mainly responsible
for drawing up the councils bill
claimed to have lined up 20 of the
20 Senators in support of 1t and said
it had widespread support in the
House of Delegates.
The Legislative Council measure
drew powerful backing last night
from Gov-elect w. Preston Lane,
l. jr., who issued a statement declar-
ing he was in favor of it and that
he also favored an amendent which
would deny Baltimore City any
share in State racing revenues so
long as it levies a special tax on
Pimlico betting.
Mr.. Funk said such an amend
ment would be added to the bill.
Under the Sherbow recommends
tions, the gross pools at Maryland
tracks would be taxed per cent,
and the mile ovals would have to
pay a daily license fee of $1,000.
Breakage would be collected by the
State. The Legislative Councils
modification increases the break
age from to 10 cents, the tracks
keeping the extra money.
Two Thirds Majority Needed.
Under the rules governing the
special session, both the appropri-
ations and race track bills need q
two-thirds majority in both houses
for passage and three e-fifths ma
jority to give them immediate force.
Thus in the House of Delegates,
AZ of the 123 members could delay
action. and the vote of So could de-
feat the purpose of the legislation by
delaying its effective date until next
June /.
OF the $3,s37 $50 asked in the
appropriations bill, 1882, ,766 Is ear
marked for salaries and 81, ,344, ,794
for operating expenses.
The largest single item asked by
departments and institutions is one
of 1897 oil for operating expenses of
the Department of Public Welfare.
Medical Appropriations.
Meanwhile, DR.. Maurice C. Pincoffs,
chairman of the State Planning
Commissions Committee on Medical
Care, called on Gov. O'Conor to
recommend approval of extra appro-
priations for care of the States
medically INDECENT at today's special
session.
No provision was made for sup
Elementary funds for the program
in the total of $3,937 $50 the Legis-
lature will be asked to make avail
able.
DR.. Pincoffs said the medical care
program needed 100000 more than
funds already appropriated and
termed the failure to provide for the
item in the emergency schedule
"regrettable.'
Details to Be Worked Out.
He said that "if this program,
which is generally conceded to be
meeting a real need of the INDECENT,
is, to be maintained, it will require
action on the part of Gov. O'Conor."
Gov. O'Conor explained that the
s., ,937 $50 figure was mot necessarily
final" and that there were still
some details to be worked out"
The medical care program has a
budget of $4,000 for the current
fiscal year. DR.. Pincoffs said that
of this amount, $83,707 was spent
on the program during the first
four months of the year.
If expenditures continued at that
rate. the apDrOpriation would be