Evening star., 1948-01-27
Cigarette Levy
Of | Cent Asked
In Virginia Bill
Fenwick Seeks Aid
For Localities
Hospital Projects
bv Alex R. Preston
By Alex R. Preston
Star Staff cerre.nondent

BY Alex K. Preston
star stoff Correspondent
RICHMOND, Va, Jan. 27.-A l.
cent excise tax on cigarettes to aid
localities in financing hospital and
health center construction under the
Federal Hill Burton Act, will be au-
thorized in bill to be introduced
In the General Assembly today.
State Senator Charles r. Fenwick
Of Arlington said he would intro
duce the bill to carry out the pro-
gram that Is :.tconservatively" esti-
mated to yield $4,000, 600 a year.
It will be the latest of series
of bills that recently have made
their way into the legislature to i'm
pose various types of sales levies or
to aid hospital construction for To-
calities. The move will be made In
the face of opposition by Gov. Tuck
TO such measures.
Measure Is Outlined.
Senator Fenwick's bill would i'm
pose a 1-cent per pack tax on ciga-
rettes, the proceeds to 60 into a
"State health center and hospital
construction and loan fund.-" this
money would only be used to aid 10
cahties in matching the Federal
Governments one-third share of
construction under the Hill Burton
Act.
Unlike another tobacco tax bill,
introduced by Delegate Robert L.
Whitehead of Nelson County, Sena-
tor Fenwicks legislation would not
tax cigars. Mr.. Whitehead esti-
mated his plan would produce
$7,500,000 a year to aid the counties
in supplementing teachers salaries
and to aid in an alcoholics re-
habilitation program, State acquisi-
ton of the school bus system and
assistance to localities under the
Hill-Burton Act.
Yesterday new bill to give coun-
ties, cities and towns help in match
ing Federal funds under the health
program was introduced in the
House of Delegates.
Chief patron of the bill was Dele
gate William j. Gibson of Fred
ericksburg. Co-patrofis inclined
Chairman Charles c. Louderback
of the House Appropriations Com
mittee. Mr.. Louderback, who rep
resents Warren and Page Counties,
was joined by Mr.. Whitehead and
Delegates j. Maynard Magruder,
Arlington. and N. C. Bailey of
Orange, in co-sponsoring the bill
Tobacco Bill AssaiIed.
The tobacco tax bill offered by Mr..
Whitehead drew the fire of one of
the legislators from the State
tobacco belt. Delegate L. L. Moore
of Pittsylvania County, threatened
to propose levies on a number of
other products if cigars and Gig
arettes are singled out as revenue
sources.
Senator Fenwick's bill would per-
NIT the State tax commissioner to
set up details of administration and
enforcement. Cigarette wholesalers
would be required to affix stamps to
each package in some instances,
while that responsibility would be
placed on the retailer under other
conditions.
All dealers in cigarettes would be
required to obtain an annual license
fee of 81 under the plan.
Disbursement Limited.
The fund could be disbursed only
If the governing bodies of the local
tiles seeking aid make available
one-third of the original construc-
ton cost of the medical facility to
be enlarged.
After four years, and if all con-
struction priorities have been met
under the Hill-Burton Act, permis-
sion would be granted to make loans
at 4 per cent annual interest, to
localities to enlarge hospitals. health
centers and medical care facilities
or to purchase equipment approved
by the council.
Senator Fenwick is chairman of
the Legislative Committee of the
Virginia Health and Medical Care
Council, an organization of dele
gates from nearly so groups inter-
ested in health work. The Arlington
Senator last week was directed to
sponsor legislation to implement the
Federal aid program. Under the
Hill-Burton Act, Virginia was allo-
Gated $2.300,000 year for the next
five years, if localities and the State
bear two-thirds the cost of projects.
1S45 Saving Cited.
Senator Fenwick expressed disap-
pointment because Gov. Tuck failed
to recommend participation in the
Federal program. He said his esti-
mate that the cigarette tax yield
would be 100000 was based on a.
State Chamber of Commerce study
in 1945. Gov. Tuck has said he be-
lieves a selected sales tax on soft
drinks and tobacco products sis
slightly less provocative of opposi-
ton and controversy" than a gen.
eral sales tax, which he opposes.
The Gibson bill for aid to local
ities merely would permit the State
to pay one third of the costs. A spe-
cial legislative study commission last
month recommended to the General
Assembly that the State not provide
assistance.
This measure also would set up a
pool to be known as the hospital
construction fund.- Before benefits
could be expected. localities first
would have to show they have ap-
piled to the surgeon general for Fed
eral aid and that they had raised
their share of funds. The Gov
ernor's approval also would be re-
quired. To meet their share, the
governing bodies of the localities
could impose taxes.
Two Circus Men CIowed