1945] OF THE HOUSE OF DELEGATES. 13
Being:

EXECUTIVE DEPARTMENT

ANNAPOLIS, MD., November 5, 1945.

Hon. John S. White,
Speaker of the House,
State House,
Annapolis, Maryland.

Dear Mr. Speaker:

I take particular pleasure in addressing your Honorable Body
through the medium of this communication in order to comment
upon the reason for .the call of the Special Session and, also, to
report upon the condition of the State.

Eepeated requests for the call of the Special Session were made
by the Mayor of Baltimore City, later supported by the Board of
Estimates of the municipality. In their request they described the
fiscal condition of the City as grave and have asserted that it is
essential for them to secure additional revenues. Otherwise, they
aver, there will be an unprecedented increase in real estate taxa-
tion in the city.

It is respectfully suggested that the City of Baltimore be granted
general taxing powers to meet this emergency situation. This recom-
mendation is endorsed by the Major, the Board of Estimates and
the City Council of Baltimore. It is suggested that a limitation
be placed upon the exercise of these additional powers, as I propose
to appoint a State-wide commission to study State and Local rela-
tionships and to report to the next session of the General Assembly.

The City officials of Cumberland, also, request consideration of
legislation to meet an emergency and I request your attention to
the proposals.

With your Honorable Body in session I am availing of the oppor-
tunity to suggest a reduction in taxes under the Unemployment
Compensation Act. Because of the healthy condition of the State
Fund, we feel that such a reduction can be made by affording the
merit rating provisions generally instead of excluding those whose
payrolls increased appreciably during the wartime period. This
reduction will aggregate $7,000,000.00 for the remainder of the
fiscal year, the Commission advises, and for this reason we are
recommending that the change be operative from September 1, 1945.

Fortunately, the affairs of our own State of Maryland are in
excellent condition. Through legislation" enacted by your Honorable
Body, Maryland has been able to face the critical needs of war,