Savannah morning news. [volume] (Savannah) 1868-1887, 1883-01-04


our resources augmented, but to curtail ex-
penses to the minimum figures ssThe best
scheme OF finance is TO spend as little
possible, ana the best tax Is always the light
est" Believing that the Legislature is act
mated by such desire, and that the present
license tax viii not be materially altered,
recommend reduction of taxes to meet the
necessary appropriations for the current ex-
penses of the State for 1888. and to nav the in
terest on her bonded Indebtedness, to four mills
l recommend the same tax for 1884, with
prOvlsO similar to that adopted by the last Leg
islature, of allowing the Governor to reduce it
to three mills, if the aggregate assessment of
the property of the State will permit"
The constitution requires, in addition to this
tax of One-mill for school purposes making
an aggregate of five mills for all purposes.
The reduction of taxes from twelve and half
mills in 1877 to five mills, shows not only a
gratifying increase in our resources. but a
commendable economy in the operations Of
the government.
TAXING IMPROVEMENTS ON PUBLIC LANDS.
The last Legislature passed an act to pro-
vide for the assessment and collection OF taxes
upon improvements on the public lands, and
for the protection of occupying claimants of
said lands. The object and intention of the
law was to protect actual settlers, and furnish
them some guarantee of securing the land
upon which they had made improvements.
The operation of the law, however, has not
been satisfactory, and in some instances has
led to results foreign to those for whiclf7t was
intended. Parties have been compelled to pay
taxes upon their improvements on United
States lands, and on lands previously granted
by the Legislature to railroads, without any
prospect of being protected by the State
Other cases of hardship have occurred, and
unless the law can be materially amended,
recommend its repeal.
TAXES O6 RAILROAD PROPERTY.
The last Legislature, by joint resolution, di-
rected the Governor and ComptrolIer to en-
ploy counsel to institute legal proceedings
against those railroad companies constructed
under the provisions of the internal improve
ment act of 1855, and who refused to pay taxes
on their property.
In conformity to the requirements Of said
| resolution, Gen. +. A. Perry, of Pensacola,
was employed, who associated with him J. W d.
Malone, Esq, of Quincy. The case was
carried forward as rapidly as the law per-
mitted, and in June last was argued before
the Supreme Court of this State. The decision
of that court sustained the claim of the State
to its right to tax the roads constructed under
the act of 1856. An appeal has been taken to
the United States Supreme Court, and it is
hoped that decision will be reached this
year. The assessed value of the railroad pro-
perty embraced in the principles of this suit
amounts to about So, 100000. Until a decision
is had. however, by the United States Supreme
Court it will not be safe to take this valuation
into consideration as safe basis of revenue.
LANDS SOLD FOR TAXES.
In view of the fact that only few of the
certificates of lands sold for taxes prior to
January lst, 1877, have been approved by the
County Commissioners, and returned to the
chapter 1924, and the County Commissioners
of some of the counties having DESTROYED all of
said certificates sent to them under said act,
thus demonstrating that large proportion of
the certificates were erroneous, and the valu-
ations and taxes thereon excessive, | would
suggest the passage of law requiring that all
such certificates, whether in the hands Of
the County commissioners, or Commissioner
of Lands and immigration, be submitted to a
commission composed of the Comptroller, At
torney General and Commissioner of Lands
and that said Commissioners have plenenary
powers to cancel the same, or settle with the
owners of the lands upon such equitable terms
as may be reasonable and just, to the end that
the property may be restored to the owners,
and again become a source of revenue to the
State.
As the law now stands, the certificates for
lands assessed since January !, 1877, and sold
prior to March IL, 1879, are in the hands of the
Commissioner of Lands and immigration, sub
ject to redemption by the owners, but not to
sale, while the certificates for lands sold
for taxes since March IL, 1879, are in
the hands of the Comptroller, subject to re-
demptiOn or sale as the law directs. This is
manifestly unjust, as all lands sold for taxes
should be placed upon the same footing. The
holding of these certificates by two different
departments of the government also creates
confusion and is unsatisfactory. l therefore
recommend that all the certificates for lands
sold for taxes assessed since January ], 1877,
be placed in the Comptroller's office for re-.
demption or sale, under proper restrictions
as to time of sale, and that the Comptroller be
authorized 10 correct cerIlOCaLeB where
proof is made of taxes having been paid, and
to make such other settlement in respect to
the same, with the tax payer, as may appear
to be equitable and proper.
INTERNAL IMPROVEMENT FUND.
The United States Congress granted to
Florida, by an act of September 4, lS41, which
took effect upon the admission of the State
into the Union, March 3, 1S45, flee hundred
thousand acres of land. The lands were
granted for ''internal improvements" and are
cOnapQnpnflV known ttInfprnal
ment Lands proper"
There was a much larger grant made on
September 20, 1850, consisting of all the
''swamp and OverfiOwed'' lands in the State
belonging to the United States. The chief
object of this grant was for the purpose of
''reclamatiOn and drainage"
Under the first grant, of internal improve
ment lands proper, there are on hand, as re-
ported by the Commissioners Of Lands and
immigration, 1880 acres.
Under the second grant of "swamp and
overflowed" lands the State has received pat
ents for 1881 ,739 acres, of which 255,273 acres
were patented in 1891, and 1856 a2=l00 acres
in 1889.
There had been disposed of, up to January
l, 1881, l.6S4, 729 42-lO0 acres, and since then
SOB, l22 S2-100 acres, exclusive of the four mil
lion acres sold to Mr.. DisstOn.
The internal improvement act Of 1855 vest
ed all of the internal improvement lands
proper, then unsOld, as well as all the swamp
and overfOwed lands on hand, with all the
proceeds that had accumulated, in the Gov
ernor, Comptroller, Treasurer, Attorney Cen
eral and Commissioner of Lands, as Board
OF Trustees to carry out the provisions Of said
act
The act designated road from Jacksonville
to Pensacola, with extensions to st. Marks and
Crooked rivers and st. Andrews bay-a road
from Fernandina to Tampa, with an extension
to Cedar Key--a road from Pensacola north to
the State line, and canal from the waters of
the st. Johns river on Lake Harney to Indian
river, as proper works to be assisted by the
fund. 1t further authorized coupon bonds to
A. isGnpn several pOqOc al hQ ~ q Of
ten thousand dollars per mile of completed
road, and additional bonds for various bridges.
etc. The trustees were authorized to guaran-
the seven per cent interest on these bonds out
of the land fund, and did indOrse bonds to the
amount of $685., 900, as follows:
Pensacola and Georgia Railroad Com
Tallahassee Railroad Company .... 100000
Florida Railroad Company ....... l6l6.0OO
Florida, Atlantic and Gulf Central
Railroad Company ..,..-......... $4,000
Total ACKNOWLEDGEMENTS. .$8,597, 900
After the war, the companies operating the
roads having failed to pay the sinking fund,
they. were seized and sold by the trustees-the
Florida Railroad in 1867, the Florida, Atlantic
and Gulf Central in 1868, and the Pensacola
and Georgia and Tallahassee Railroads in
1869. The effect Of these sales was to relieve
th> railroads of the bonds or coupons except
the half OF l per cent. semi annually, to
meet the principal of the bonds. Thus the
land fund held by the trustees, in addition to
paying large sums before the war for interest,
now became alone responslple for all the in
terest upon the bonds not retired and can
celled by the sales.
Thus briefly have / stated the origin of the
Indebtedness againstthe fund, which has been
a topic fruitful of discussion. Space will not
permit me to enter into history, much less
discussion of the various litigations cOnpected
with thege sales, or those between the trustees
and the holders oG the coupon indehtedness.
Had the entire price bid for the r. 4 G, and
Tallahassee Roads been promptly paid, much
loss would have been saved to the fund.
There was a balance, however, of $412, 400 for
the p. 4 g. and a balance of $50,775 for the
Tallahassee Road that was not paid. The
balance due on the p. & G. Road, with interest,
was paid Cnly last duly, ana then after much
litigation. Fhat- UPON the Tallahassee Road
has not yet been paid, and the trustees have
been compelled to offer it for resale for the
principal b0gId w{h RE 3Fge sssqm%pstoE m s Gf % in
adequate to pay both principal and interest,
the fund will be liable for any balance of the
interest left unpaid
DIssToN SALE.
When / entered upon the discharge of my
official dutles the prospects of relieving our
internal improvement fund, and thus promo
ting the development of the State by securing
proper railroad facilities, were Of the most
gloomy character. Two administrations had
evinced their appreciation Of the situation by
an earnest effort to sell off large body of the
lands at a reduced rate, as the only means of
saving anything to the fund. Governor
Stearns' STANDARDIZATION nad appointed the
eminent statesman and diplomat, Reverdy
johnson, who had represented in the capacity
of Minister Plenipotentiary our government
at the Court of st. James, as the agent of the
State to visit Europe, for the purpose of sell,
ing large BODY OF these lands at twenty five
cents per acre, in order to relieve the fund.
Soon after my immediate predecessor, Gov
ernor Drew, came into office, he recognized
the absolute necessity of such sale as the
only means of relieving the fund and devel-
mt tho- A ,f,,F .,