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What Re Happened Price Insists AUSTIN Statement in Support of T The one great rule We will serve• no group or party but of composition is to will hew hard to the speak the truth. truth as we find it and the right as we —THOREAU The Texas Observer see it. An In4t; • !e ml Weekly Newspaper Vol. 51 0\ \. 20, 1959 10c per copy No. 11 ,;) q `%('-k What Re Happened Price Insists AUSTIN statement in support of t . forth- a token severance - beneficiary conferees themselves would take On New Gas Tax The only real hope for a coming report, which was to be gas tax and some change in the it. By a vote of three to two the compromise tax bill in the substantially the Senate bill, not franchise tax formula. House rejected the package, AUSTIN first called session disinte- including either a token sever- Carr noted down these two Carr's three men. voting no, Jam- Governor Price Daniel told grated this week when a ance beneficiary tax on out-of- items during his conversation ison and Kennard aye. a joint session of senators three - man majority of state users of Texas natural gas with Daniel. Kennard then said he wanted a a n d representatves, "You Speaker Waggoner Carr's or the Governor's change in the At this very time, the tax con- vote of the House conferees on a and I know that the major House c o of er e e s voted franchise tax so that it would fall ferees were mulling over a pack- one percent severance beneficiary issue which has deadlocked against principles a majority more heavily on interstate cor- age presented them by Reps. Don gas tax. (The House majority had this legislature has been the of the House • members had porations. Kennard and Alonzo Jamison, the voted for five percent.) By the question of whether natural voted for. Daniel had earlier asked the two House conferees who repre- same vote of three to two, the gas pipeline companies would Witnesses to this evidence two House conferees who repre- sented the House majority. This House conferees opposed the one bear a fairer, larger share of that the people they were ne- sented the House majority on package, 60 percent sales taxes percent severance - beneficiary the tax burden of this state. gotiating with did not be- taxes to accept a Senate-like com- and 40 percent business taxes, in- tax. I think they should. I am promise on the strength of pri- lieve in what they had eluded one percent severance- Ramsey then took votes on the positive that a majority of vate assurances Daniel made to seemed to advocate, the sen- beneficiary on natural gas and a Senate's tax provisions, and the the people of this state, if ators in the closed sessions them. They told him they could change in the franchise formula. Senate's tax bill, with minor re- permitted .to vote on the is- not sell such a compromise to the of the House-Senate tax con- It left the Senate's three-cent cig- visions, was presented to the Sen- sue, would favor additional House. ference continued to hold arette tax intact. Kennard and ate, which approved it, 19-12, and taxes on those who have tied Therefore, when Carr ap- fast for their 75 percent sales Jamison told the senators they the House, which thunderously up the natural gas reserves tax bill. From that point on proached Daniel, the Governor would advocate this package to defeated it, 121 to 27 (see "The of this state and who are told him he would not issue a it was certain that the Senate the House. The Senators were in- Votes on Taxes"). Reps. Kennard transporting to other states bill would emerge from the statement for the give-in to the terested and wanted to causus. and Jamison refused to sign the and foreign countries 53 per conference committee, if any- Senate. He told Carr that in or- report and voted no with the 121. cent of all marketed gas pro- der for there to be compromise, Conference With Carr thing did. Of the 27 who voted aye, eleven duced in Texas." Speaker Carr Tuesday after- the Senate and Carr's three-man Carr's three men on the confer- are members of Carr's 21-mem- Receiving a standing ovation noon went to Governor Price majority on the House committee ence committee, Reps. Bo Ram- ber tax committee in the House. from the floor and the gallery Daniel and asked him to issue a must give in on behalf of at least sey, W. T. Oliver, and George All three of Carr's men on the when he entered the lower cham- Cook, all of whom opposed a sev- conference committee signed the ber for his address opening the erance-beneficiary tax and voted report and voted for it. second called 'session, Daniel re- against the House's half-business, There was not much evidence peated in strengthened terms his Senate Plan Sags half-sales tax version of the tax that the senators would have program for solving the state's bill, were taken aback by the taken the package in any case. financial troubles. Kennard-Jamison proposal. Three separate occasions before "My only regret is that I did Under 121-27 Vote Ramsey and Oliver went to in the closed conference commit- not recommend a higher tax on find Carr, as they had done on tee meetings they had refused to these pipeline companies," Daniel AUSTIN We can get some people beat frequent occasions during the 16 consider the severance-benefi- said. "I see no reason to put all Comments from key fig- with that." or 18 meetings of the conference ciary tax in any form. of the natural gas increase on Sen. Charles Herring, Austin, ures in the legislative tax committee. Carr at the moment In fact, until Kennard pre- Texas producers and royalty one of the Senate conferees: "I fight on the House-Senate was in the Governor's office, but sented the package, the senators, owners when there is a constitu- have some reservations. But I tax report in favor of a 75 on his return they conferred. except for Charles Herring of tional method available for plac- have 20,000 state employees in my percent sales tax, 25 percent Carr was cross because Kennard Austin, who favors the House ap- ing it on the gas pipeline com- district who won't get paid if we business program, which the and Jamison had proposed a proach to taxes, adamantly re- panies ... Governor Shivers, one don't pass a tax." (He signed the Senate accepted 19-12 and package which fell between the fused to compromise on any sub- of the most conservative govern- report and voted for the bill.) the House rejected 121-27: House and Senate versions with- stantial point excep the fran- ors in the history of our state, Rep. Don Kennard, Fort Worth, Rep. George Hinson, Min- out consulting him in. advance. chise tax. The other four Senate recommended to the legislature one of the two House conferees eola, sponsor of Gov. Daniel's When the conference commit- conferees were Rudolph Weinert, in 1954 a similar tax of one half who refused to sign the report tax bill : "It's a wonderful is- tee reconvened, the senators said Seguin, who was elected chair- cent per thousand cubic feet." sue—the three-cent cigarette and voted against it: "There was that before they would state man of the conference; Dorsey such an odor of natural gas in After saying he suggested a tax the Senate passed in pref- their position on the package, Hardeman, San Angelo; Jimmy lower figure than Shivers in the erence to a natural gas tax. (Continued on Page 5) they wanted to know if the House Phillips, Angleton; and Bruce hope that gas pipeline companies Reagan, Corpus Christi. These would practice "business states- four stuck fast together for the ma•ship" and accept the boost. Senate's bill. Daniel departed from his pre- Texans on Adlai, Jack, LBJ1 Concessions Expected pared address to reflect that one Thursday a week ago, the af- gas representative told him ear- AUSTIN might be our more practical stomp the daylights out of him, ternoon the conferees were lier in the year that the tax was The Observer had occasion this choice for the simple reason that couldn't he?" named, the five men for the acceptable and that he felt the week to question a few of the Stevenson has been defeated JERRY HOLLEMAN, president House side met with Carr in his biggest job Daniel and Rep. state's political leaders on the of Texas State AFL-CIO: "If the George Hinson had was "to keep twice before in Texas, and that's apartment. He said he had desig- latest Gallup Poll on the Demo- choice were betWeen Kennedy nated them because they would it from going any higher." Hin- a pretty hard hump to overcome." and Stevenson, I'm inclined to cratic nomination for the presi- (Continued on Page 2) (Contiued on Page 3) dency, which showed Adlai Stev- (Pickle also said, "The Demo- think they (state political lead- enson ahead, John Kennedy sec- crats are going to win. All these ers) would probably favor Ken- ond, and Lyndon Johnson third. people who are candidates will nedy. They feel, and I'm inclined (See page 6.) The responses: get behind the nominee. And I to feel a little this way myself, THE VOTES ON TAXES don't think we'll • have as much the unfortunate losses that Stev- JAKE JACOBSEN, executive presumed revenue to $177 mil- difficulty in the election as be- AUSTIN secretary of the State Democratic enson has suffered give him a lion.
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