Evening star., 1946-12-27
|0'Conor Asks Speed
|As Senate Convenes
On Fiscal Emergency
BY the Associated Press =

ANNAPOLIS. Dec. 27.-Ths
Maryland Senate. convening al
1915 o'clock this afternoon, re.
ceived a message from Gov. O'Conol
urging that it transact its bushes:
Sin short order" The Legislature
was convoked in special session tt
enact emergency financial legisla.
ton.
The Governors message did moi
mention the controversial plan or
revision of taxes for Maryland race
tracks, which is being sponsored BY
the Legislative Council.
The House still was not in ses-
sion when the Senate convened.
In his message, Gov. O'Conor saio
that "the required adjustments to
the 1947 budget for various depart
ments total approximately one
fourth" Of a $16,e00,000 anticipated
surplus.
Rising Costs Cited.
He said that rising costs had die
tated the call for the session, which
had been delayed as long as pos
sible.
The appropriation bill, as pre-
pared by the administration leav-
ing Office next Monday, calls fo1
transfer of $3,937, $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 fis-
cal year.
A controversy growing out of Bal
timore City's 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 S 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could be repealed if the Sherbow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
5 per cent tax.
The Legislative Council, after con-
ferences with racing interests,
agreed to submit at the special ses-
sion a race tax bill based on mod
ification of the Sherbow proposals.
City spokesmen said the modifica-
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 it 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,
ir., who issued a statement declar-
ng he was in favor of it and that
ne also favored an amendent which
would deny Baltimore City any
;hare in State racing revenues so
ong as 1t levies a special tax on
oimlico betting.
Mr.. Funk said such an amend
nent would be added to the bill.
Under the Sherbow recommenda-
ions, the gross pools at Maryland
racks would be taxed 4 per cent,
md the mile ovals would have to
,ay daily license fee of $1,000.
would be collected by the
state. The Legislative Councils
increases the break
lge from to 10 cents, the tracks
,eeping the extra money.
Under the rules governing the
special session, both the appropri-
atoms and race track bills need a
swo-thirds majority in both houses
for passage and a three-fifths ma
iority tn give them immediate force