Savannah morning news. [volume] (Savannah) 1868-1887, 1884-11-07

acceptance of them would have resulted il
their conversion into money.
The Attorney General of the State. to whom
the question was submitted, demonstrated, il
an opinion of great learning and ability, thu
correctness of the foregoing construction. Al
the State officials charged with the construc.
tlOn and enforcement of these statutes and o.
the contract of sale being In accord. | caused
the East Tenp pessee. Virginia and GeorgiS
Railroad Company to be notified, in the early
part of Eebruarq, 1854 that payment of The
balance would be demanded in recognized
bonds OF the state, or IN United States regis
tered bonds, outstanding at the time of pur-
chase.
The counsel of the East Tennessee. Virginia
and Georgia Railroad Company, still insist
ing on It's right to pay the balance in per
cent. registered bonds of the United States, OF
IN laWlul lmoney-requested me to submit the
question TO the Supreme Court of the State
Tor decision. l declined this request because
there is no law authorizing the submission of
such questions to the Supreme Court, or
making it the duty of the court to decide
them, and because it is against the policy of
the State. Relying with confidence upon the
opinion of the Attorney General, who is
charged by the constitution with the duty of
auFlslng the Executive in legal questions,
dld not hesitate to assume the responsibility
OF the decision. The time being short every
facility within my discretion was afforded the
company to enable it to purchase short date
bonds of the State. which commanded a lower
premium in the market than the much longer
date per cent. registered bonds of the United
States.
The Treasurer repaired to New York several
days prior to Feb. q, and arranged for
delivery of bonds at the Treasury, In Atlanta,
ard to himself in New York, the last to be
sent to the Treasury without expense 10 the
state. authorized hln t) extend the time
of actual settlement several days necessary
to complete the delivery of bonds commenced
before the day of maturity of the debt
AYalting itself of this arrangement for its
dement,, the company purchased $3.50, ,00O recog-
n'Zed Georgia bonds, and early in March the
settlement was completed.
The bonds thus received comprised $55T, 800.
per cent. bonds; $l3S,400, per cent. bonds,
and $4,000 p er cent. bonds, due in 1886:
Sl26OOO per cent. bonds. due in 1899, and
$4,000 per cent. bonds, due in ISS4-'85 and 80
Inc interest accrued on these bonds Feb. %,
1881, amounted to $S,4C0 1924. This was paid
to the company on maturity of the coupons
surrendered with the bonds. The Treasurer
has Cancelled these bonds in pursuance of an
Executive order. and they are now IN the
vault of the Treasury under seal of the Ex
ecutlVe Department, to be exhibited to the
Finance Committees of the Legislature, and
destroyed as provided by law.
The President of the East Tennessee. Vir-
ginla and Georgia Railroad Company at the
Ilme Of the settlement presented the protest
OF the company to the requirement
that the amount should be paid
IN Georgia bonds or registered bonds of the
United States outstanding at the day of sale
of the railroad. and gave notice that the com
pany would ask the General Assembly to re-
1t IN premium upon the $4,000 Georgia bonds
purchased and delivered to the State.
1t should be borne in mind that the amount
thus paid in premium did not reach the Treas
ury, AMI the state was in no wise interested
IN 1t. L submit that the State has done no IN
justice to The purchasers of the Macon and
Brunswick Railroad IN requiring compliance
with the spirit, as well as the letter, of the
contract OF purchase, and that they have no
valid claim, in law or equity, for reimburse
ment.
MATURING BONDS.
An imr Ortant duty which will claim YOUR
attention Is the provision for payment or
funding of the bonds maturing in the years
1889 and 1856, other than the per cent. bonds
Whcn are provided Tor by existing law. There
are three classes of these bonds. OF the
per cent. bonds issued under act Dec IA
1873, and due January, 1885, $5S, l35. The per
cent bonds, issued under act of Feb. 27,
1886, and due February, 1886, $l26,GOO and
$l5O,O 600 due August, 1886; per cent. bonds
with mortgage on Western and Atlantic Rail-
road. issued under act of March u, 1866, and
due July J, 1886, 50, 525, 800.
The payment of balance due on purchase of
Macon and brunswick Railroad eXtinguished
$4,000 of the foregoing, as follows: $557. $50
per cent, $l3S, 400 of per cent, and $40 100
OF the per cent bonds, leaving So, ,249, ,635 out
The conditions under which we are called
upon to provide for these bonds are excep-
tiOnably favorable Our debt ia being steadi
ly and rapidly reduced, while the resources
Of the State are steadily increasing. The ad-
mirable provisions of the constitution forbid
ding the increase of the bonded debt and re-
curing the payment of 100000 of principal
(Or the setting apart of that amount
as sinking fund.- aud the application OF the
proceeds of the sales of public property to the
bonded debt, invite confidence in our finances.
Evasions OF these provisions in any manner or
for any pretense whatever might give tempo
rary ease to the Treasury, but the public in
-erest, as well as public honor, requires strict
compliance with the spirit of them. Holders
IF our bonds and investors, seeking reliable
securities, will appreciate the high value of
bonds OF a State whose officials obey the |
aW strictly and reduce the debt whenever
practicable, rather than pvt a surplus in the |
to be spent in unnecessary appFOpri- |
atoms. Moreover, they will appreciate tie |
OF State that can reduce her deJt |
without burdeEsOme taXatiOn-a State having |
valuable public property, the proceeds Of |
which, when sold, are honestly applied to the |
principal of her debt.
In addition, as rates Of interest are lower |
lOw than when these bonds were issued, and |
he credit of the state much higher they will |
the fact that the interest charge on |
he people will be greatly lowered. The an |
lual saving in interest on $750.090 bonds paid |
)f is about $4,000. The reduction of interest |
IN bonds to fund or pay off the bonds which |
all due IN 1886, will be a much larger amount, |
dependent on the date of maturity of the new |
ponds: long date bond can be more readi- |
y sold than a short date bond, and cOnse |
luently, the rate of interest necessary to be |
pad on 1t would be lower.
In smuch as other issues of our bonds fall /
iue within a few years, it is not necessary at /
his time, to provide short date bonds in order |
o keep considerable portions Of the State debt |
always within reach of speedy payment. For |
hese reasons l recommend suitable legisla- /
ion for the issue of bonds maturing within /
lot less than thirty (30) years. and bearing in /
crest at rate not higher than per cent.
COMPTROLLER GENERALS REPORT.
The Comptroller General presents interest |
ng and valuable details of our system of tax
ltlcn, and OF the condition of insurance COM /
)anies doing business in the State and makes |
econ mendatlons which, in view of his eX- |
lerlence and faithful performance of duty, |
ieserve careful consideration.
Taxes are promptly paid when levied, and L
collected, the entire loss from
allure and cost of collection being 654 per /
ent. of the levy. There has been a steady |
Increase in the annual return of property for /
Id valOrem taxation. The aggregate in 1879 |
vas 1924, ,459, ,54S-f0r 1884 was $37 27I an in
rease of $S2, ,6l5, 723. This indicates wealth in /
wealth, but it does not indicate full valua-
ion of the property. Our constitution re- /
luires equality and uniformity of taxation. /
This is unattalnable unless uniformity of rate /
S based upon uniformity of valuation in the |
eturDs. In theory, this is substantially Sc /
I'll property to be taxed upon its true market /
'alue. How IS it in fact? illustrations taken
rom the three wealthIest and most populOus |
counties in the State, of many that might be i
viii suffice to show great want of /
.quallty and uniformity in fact: The citizens /
# Atlanta were assessed for city purposes. in
SSi, on real estate, to the amount of $2l. 49, /
OS, and rcturnet in personality IS 933 9S2-an l
aggregate of $50, ,050, 250. Fulton county, com /
lrising all the people and property of Allan
a. and many thousands of prosperous popu-
alton, and millions of property in addition.
eturned under our loose system $l7,sOl. .345 |
ealty, and $l2, ,934 $50 in personalty-an aggre-
rate of $50, 36,I65.
The citizens of Savannah were assessed, for
ffwvr unTf hTA
l6,2O2, and returned personally to the amount |
If 81, ,45, ll2-an aggregate of $l9,66l3l4; |
while the county of Chatham returned for /
state and county purposes, IN 1884, $40, ,5l3,054 |
,regate of SIC, 1888.
The citizens of Augusta were assessed, for |
ty purposes, the present year, on real estate /
Ilone, to the amount of Sll ,30d,S60. The same /
tizens returned for State and county taxa
ion, Tor the same year, real estate to the |
mount of $S,l26, ,250.
The only comment needed to enforce the /
esson OF these figures is TO add that they rep
esent fairly the basis of returns throughout /
he State.
The amount to be raised being regulated by
he necessities Of the State, the rate is gov
rned by the amount of prOpeFtV uDOn which
he levy is made. When citizen fails to re-
urn all his taxable property, or undertakes /
What he returns, he inflicts wrong upon his |
eighbOr who makes full and just return. |
70 any remedy proposed objection will be |
made only by those who profit by The loose
ystem at the expense Of Others who suffer
~ 1t.
Efforts to remedy the defects in the system /
ave not been wanting. Much has beendopp |
tut much remains to be done. The duty has |
Deen imposed upon grand juries of the several /
ounties to revise tax returns and assess
alues in case of underyaluation This re- /
ls1on has been productive of good results, but
las proven Intellectual. The fact that mem
ers of the grand jury are required to revise
worn valuations OF property bv taxpayers
Who are their neighbOrs and personal friends
not condnelYe to rigid performance of