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Controversy Stirs on Pipeline Issue Fight to No Avail, Lane Bill

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Controversy Stirs on Pipeline Issue Fight to No Avail, Lane Bill The Texas Observer An Independent-Liberal Weekly Newspaper A Window to the South Volume 52 TEXAS, AUGUST 5, 1961 15c per copy Num be'r 18 . Eckhardt vs. Lane Tax Question Long Day's Journey Into Night Controversy Stirs To Conference, Fight to No Avail, Deadline Nears On Pipeline Issue AUSTIN Lane Bill Succeeds Rep. Charles Sandahl, au- AUSTIN bill is probably unconstitutional thor of $5-deductible sales tax AUSTIN better than "trying to interpret Sen. Wardlow Lane of Cen- anyway. bill- (HB 20), promptly greeted Sen. Henry Gonzalez of San the one they sent over from the ter and Rep. Bob Eckhardt of At stake is an estimated $18.5 Antonio waged an eight-hour House. I admit it's a vicious tax. k the 25-cent deductible version Houston became involved this million which the tax is expected filibuster in the upper house That's why we made it tempo- week in a sharp debate over to net. (The original estimate was that returned from the upper this week, and when it was rary. the constitutionality of the tax $24 million.) But at the heart of house Thursday by moving over his colleagues filed back "I exempt I should say we ex- on dedicated reserves of nat- the controversy is the historic that the House not concur, thus in, as casually as farmers re- empt—utilities used by farmers ural gas. conflict between House and Sen- throwing the tax question into turn to the fields after a trou- as we did for manufacturers last Eckhardt contends that Lane's ate over the search for a consti- blesome summer's shower, to time." a House - Senate Conference tax-writing subcommittee made tutional approach to gas pipeline approve a two percent general Sens. Babe Schwartz of Galves- the pipeline tax unconstitutional taxation, one of the crucial legis- committee, where everybody sales tax. ton and Abraham Kazen of La- by adding to the House version lative issues in recent Texas his- expected it to land anyway. a "non-severability clause"— a tory. Both the 1951 gas-gathering Sandahl's motion won House clause at the end which provides tax and the. 1959 severance bene- approval by a vote of 97-43, and Willie Morris ficiary tax were struck down the anti-sales-taxers claimed some The vote on final passage for after prolonged litigation. faint achievement in thus getting Sen. Wardlow Lane's $360 million The liberal-controlled House tax the committee started immediate- tax package, which also includes committee voted Thursday to seek ly, because every minute gained an increase in the present one- legal opinions from the attorney was a minute to stave off any pos- factor corporate franchise tax and general on the constitutionality sible last-ditch acceptance of the a gas pipeline tax which advo- of both the House-approved and Senate bill. cates contend was made uncon- the Senate-approved bills. "By the House conferees will be led by stitutional, was 20-10. redo offered as amendments sepa- inclusion of the non-severability Charles Ballman, with other mem- In so acting, the conservative- rate $10 exemptions on clothing. clause," Eckhardt told the panel, bers being Minton 'Murray, Bob dominated Senate spurned a "There's no difference between "we must look carefully into every Eckhardt, Don Kennard, and San- House-approved package based on what the white collar worker that if only one section of the segment of the bill we passed. dahl. Senate conferees are ex- a $5 deductible sales tax'. With wears to work and what the fac- pipeline tax is declared uncon- The Gibbens amendment, though pected to be the same group that the session ending Tuesday, the tory • worker wears," Schwartz ar- stitutional in the courts, the en- Pm sure it was offered in good stymied the conference in the tax question now goes to confer- gued. "At least we can say we tire bill is unconstitutional. faith, is inadroitly drawn and of regular session, led by Wardlow ence committee and the spotlight passed a bill out of here with a He argues that an amendment questionable validity. Railroad Lane and Dorsey Hardeman. again falls on a closely-divided real clothing exemption on it." to the bill by Rep. Wayne Gibbens Cmsr. Murray, the experts on the The conference committee is to House of Representatives. "Nowhere in this bill is there of Breckenridge, added on the attorney general's staff, and meet over the weekend, and Lane, the long-time conserva- a definition of work clothes," Ka- floor of the House, was of ques- TIPRO officials agree. whether it will emerge early next tive from Center, was in total con- zen said. "It says 'outer wearing tionable validity, but the entire "I don't want to get into any week with a tax package that can trol, and the tiny band of rebels apparel.' That means your • sox bill was protected from uncon- fight with Wardlow Lane or the attract a majority vote in the —principally Babe Schwartz, Ab- won't be exempt, your under- stitutionality because the House Senate," he said. "I just want a House is the big question of the raham Kazen, Bill Patman, Doyle clothes won't be exempt. They did not include a non-severability constitutional gas tax." hour. Last time the House staved Willis, Culp Krueger, and Gon- say belts will be taxed. Well, what clause. The Houston liberal was not in off the sales tax, 71-70, in the dy- zalez—fought the bill on the floor are you gonna hold up your pants Lane argues (see separate story such a peaceful mood Tuesday ing moments of the regular ses- to no avail. on the Senate floor debate) that morning, however, after the Sen- sion. with ?" the Eckhardt-authored bill was ate tax package had been favor- The first special session ends at Exemptions Beaten Lane rebutted with his usual accepted by the Senate tax com- ably reported out to the floor by midnight. Tuesday, August 8. The Lane, chin jutted forward, a sharp tenacity. "I'm sure this bill's mittee exactly in its original form. the Senate state affairs commit- conferees will probably report perpetual scowl on his face. told got things in it everybody wants But he adds that the non-sever- tee. (See separate story.) Rising sometime Monday. the Senate the sales tax portion to take out. If you put this amend- ability clause was placed at the on personal privilege, he said: Last time the Senate negotia- of the bill "represents a lot of ment on, you get in the same pre- end to protect the independent "I want to give the House the tors refused to budge on their give and a lot of compromise. dicament the House over there gas producer from being taxed most direct information on what straight sales tax-based package. Everybody's had to give some- got into. Everybody'll be taken under the measure if the sections has been done. If what has been There was widespread pessimism thing. I had to give a lot." care of, but you just don't raise on the pipelines are stricken in done was by inadvertance, it can in the House at week's end that The one-factor corporate fran- the money:" the courts. He also says that. the (Continued on Page 2) they again would not yield. chise tak increase, he said, was Kazen's substitute was defeated by voice vote. Schwartz' lost, 21- Two Proud and Able Men 10. "It looks like I'm right again," Sen. R. A. Weinert of Seguin, who voted with the majority, observed, and that drew laughs from the Texas Labor Reeling after Battle colleagues. ,When Lane himself offered au This is the first of a two-part it was too late; through creden dustrial workers broke into open If this goes against him, even amendment exempting all cotton article on the labor convention in tials challenges, charges and de- floor debate.. The fact of working the smaller increase in financing products under $10 from the sales Galveston. The second installment nials, Brown's two-to-one victory, life which lies hidden behind the is lost to his program. Some of tax, it carried by voice vote, al- discusses the convention proper. the thwarting of his pleas for phrase, "jurisdictional disputes" the delegates on Schmidt's side though Schwartz protested ye- more lobbying funds, and the mi- . (Continued on Page 3). GA LVESTON —the competition for jobs in an said various things tending to nority's rebellious formation of Two proud and able men, economy where automation is re- mean some of their locals may a new Industrial :Union Confer- Hank Brown and Fred Schmidt, ducing the work to be done—be- withdraw their support from the ence, the conflict between Brown began having their differences came an active cause for the pro- state organization; Brown count- 'Up in the Air' and Schmidt, unfolded, foreknown four years ago when Brown Schmidt unions through the new ered that not many will and that AUSTIN and unavertable. was educational director and industrial conference. to make up for those which do, he Seen in a private room of As unions and individuals took Schmidt secretary-treasurer of When all was done, Brown's will obtain new affiliate unions Austin's Headliners Club Sat- their stands around Brown or forces had little but the victory among the unaffiliated. urday night were Lt. Gov. Ben the Texas AFL-CIO. Today Schmidt, the conflict came to em- and problems. The $100,000 in- Brown hopes to confer with Ramsey; Sen.
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