Evening star., 1947-09-20
Lane Defends
Sales Tax in
Bethesda Talk
Says Levy Is Only
Fraction of TotuI
State Pays to U. S.

Gov. Lane of Maryland last night
defended the States per cent sales
tax in talk before the Bethesda
Chamber of Commerce and in an
earlier radio broadcast.
His Bethesda speech was made
at reception in the Congressional
Country Club following the official
opening of the 14-week shop in
Bethesda" campaign sponsored by
the Bethesda trade body.
I have no apologies to make for
the sales tax" he declared. "It has
made the people of Maryland tax
conscious. Why should they object
to paying s2o,0O0,O00 annually to
their own State when they nav
$700, ,000, 900, or IS times more, to the
Federal Government without ques-
tion?"
Schools, Roads Benefits.
Pointing out that Montgomery
County will receive $1,085, 900 as its
snare OF sales tax revenues, Gov.
Lane said SIS per cent of this amount
must be spent on schools and 20
per cent on roads.
The rest you can do with as you
please" he asserted. This Is money
you have never had before"
The Governor was accompanied
by Mrs. Lane anl their daughter
Dorothy. A guest at the shopping
center ceremonies and at the recep-
tion was Miss Peggy Wilson, Be
thesda. Miss Washington of 1e47."
William K. Hodges, president of
the chamber. was master of cere-
monies. Other members of the Com
mittee on Arrangements included
Malcolm Scates, William Prescott
Allen, Samuel Bogley, William Yost,
jr, and Carl Bachschmid.
Misrepresentation Charged.
In his broadcast over Station
WBAL, Baltimore, the Governor
charged there has been "active mis-
representation" of the sales levy,
which he sponsored at the last ses-
sion Of the General Assembly as a
means of meeting the States fiscal
needs.
He said that when he proposed the
sales tax last February. he knew
there would be objections, "partic-
ularly by persons or groups with
special interests to protect"
What he did not know, he added.
was that some of the objections
would take the form of active mis-
representation"
While most merchants are con-
scientiously performing the duty of
collecting the tax. Gov. Lane said
some have distorted and misrepre-
sented the tax as Penny for Mr..
Lane This Misrepresentation is
selfishly intended to stir up preju-
dice and malice"
Suit Seeks Referendum.
The tax became effective July
and already has brought in about
s., ,000,000 1t has been attacked by
some organizations in the STATE and
the Secretary of State has been
formally informed that a suit Is On
file in Anne Arundel County Circuit
Court in an effort to require a refer
endum on the levy. !
Attorney General Hall Hammond
has ruled the sales tax is not sub
ject to a referendum.
"These pennies of yours and Of
mine" the Governor said in his
broadcast, "are our contribution
toward a guarantee that the chill
dren of Maryland will have the fin
est education it is possible to pro-
Vide.
THAT they will receive this edu-
cation at the hands of decently paid
and qualified teachers and in class
rooms and school buildings that are
adequately and modernly equipped,
properly lighted and healthfully
heated and of ample size 10 house
the pupils without overcrowding.
He also listed other items on
which revenue from the sales tax
would be spent, including tubercu-
losis sanitaria, new hospitals for the
chronically Ill and aged and medi-
cal care for thousands of less for
tunate Marylanders, who otherwise
might suffer and die = ."