170 ADDRESSES AND STATE PAPERS

candidate had I not read in a newspaper account that he was consider-
ing in any event not seeking a new term in the Maryland Senate.

Q. Governor, Mr. Hughes was instrumental in moving that tax bill,
which was your number one priority, through the Senate. I am won-
dering, just looking at it strategically, isn't he equally as valuable to
you in the Legislature as he would be in the Insurance Commission?

A. Indeed he is, but as I just indicated he said he is not going to stay
in the Legislature no matter what happens.

Q. His term in the Senate is for three more years, sir?

A. Well, that is true, for three years. But I think we can handle the
tax reform and the financial matters that need to be completed, with
the various members of that fiscal study group. And the Maryland
Senate has other talented people who can certainly take over and
handle things probably equally as well as Senator Hughes.

Q. Do you have any suggestions for Finance Committee chairman?
A. No indeed, I wouldn't dare.

Q. On the tax program in this afternoon's paper there will be a story
that at least five different firms are either leaving Maryland or cancel-
ing plans to expand their facilities here because of the increased tax
burden on business. Specifically, they include Londontown, Black and
Decker, Westinghouse and Chris-Craft. Do you have any comment
about this?

A. Well my comment is, first, that there haven't been any increased
tax burdens on business. As a matter of fact there has been some re-
lief for businesses because the property tax rates in the major subdivi-
sions have all been held equal or cut. So I think it is a rather falla-
cious situation as far as claiming the tax program has caused this to
happen. Now, we've got to realize that in a State of nearly 4 million
people, every day some industries decide to locate here tentatively,
some industries do locate here and some decide not to. Trying to
trace this to any particular cause is not exactly an easy problem and
there is always a temptation when some scapegoat like the tax program
comes along to credit their decision to the program. Obviously there

has been no change in business taxes. It is a ridiculous assertion that

they would have an effect on the failure of industry to locate here at
this point.

Q. Perhaps I phrased the question poorly. I think what they are say-
ing is the lack of business tax reform, the lack of inducements for in-
dustry to locate here.