The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-02-15
THE GOVERNORS arEssAGE.

Governor Wells yesterday addressed
a. message to The legislature touching
the financial condition of the state and
making suggestions as to methods by
which the revenue is to be raised to
meet the obligations and current ex-
penses thereof.
Briefly the condition is this: There is
a bonded Indebtedness left over from
the territory and assumed by the state
of 100000. This is covered by five per
cent bonds not yet due. There is a
floating indebtedness, some of which is
now due, and the remainder viii fall
due by July 1st next, amounting to
S206, 721.15. In addition to this, there is
the estimated current expenses of the
state for the year 1895, amounting to
1894, 10000 for general purposes, max
ing in all for general state expenses
and floating indebtedness-no includ-
ing the amount for the support of the
schools-se01, o29.0O.
The governor points out that to raise
this amount of money, and in addition
to it the funds for our common schools,
would require a tax to be levied of
eight and half mills on the dollar, or
half mill more than is allowed by
the constitution. He therefore recon-
mends that the legislature grants au-
thority to issue bonds to the amount of
$200,000 the limit under the constitu-
ton, to pay off the floating Indebted
ness, and assess q tax for all state
s
dollar-3h mills for general purposes
and mills for school purposes. The
governor estimates that the taxable
property of the state will aggregate
$110, 200, 900; and the 61k mills tax will
yield. making no allowance for remis-
sions or rebates. $715,OOOOO. Deducting
three mills assessment for school pur-
poses, $3.50. 900. there would be left $685.
600 for general purposes.
The governor seems sensible Of the
fact that it will require The strictest
economy to keep the expenses of the
state within the amount that may be
raised by a sale of bonds and by the
615 mills tax; and suggests that the
revenues be still further increased by
a moderate tax on foreign insurance
and other companies doing business
within the state; moderate inheri-
tance tax to be paid by wealthy es-
tates in probate; and a fee of not to
exceed fifty cents per thousand on the
capital stock of each corporation here
after incorporated within the state.
The first proposition is open to the OBJ
lection that its tendency would be to
discourage the establishment Of insur-
ance business in the state that we want
established, and that is to the advan-
tage of our people TO have establish
ed. If it does not have that effect, it
doubtless would result in increasing
the price of Insurance TO our people by
so much as the tax assessed.
The other important recommends
lions of the governor are to the effect
that the bonded indebtedness that the
state inherits from the territory be re-
funded by authorizing the proper Off
Ger to call in the outstanding territor-
fal five per cent bonds and replace them
with four per cent ten to twenty year
state bonds, thing the governor en-
courages the legislature to believe can
be done.
On the whole. the message is a,
thoughtful, moderate and timely docu-
ment. and the recommendations neces-
saTy and wise.