The news & observer., 1897-01-08
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Gentlemen Of tlie General Assembly
The Constitution provides that should
acquaint you with the result OF the work
accomplished by each department Of the
Executive branch Of the Government, by
the Institutions which have been estab-
lished under the fostering care of the
State, and to furnish you with a copy of
their reports, making such recommends
ti0ns as l coasider for her best interests.
Leaving the wisdom Of action In your
honorable body, the people Of this State
have thereby intrusted to you the ju-
risdiction OF her institutions, the uph Id
ing Of her credit and the honor and pride
Of her Statehood; and have deprived the
Executive Of any means whatsoever Of
executing the plans which he might fa-
vor as the best means of advancing the
material interests and progress Of North
Carolina. After careful study of her
interests fer four years, his only means
is recOmmendatOry, therefore with you
and not the Executive resests the respon-
sibility Of preserving and advancing these
institutions in the great work undertaken
for the cause Of humanity and the ell
ovation of the people, of maintaining and
executing our laws and protecting her
citizens in their vested rights
The people have inrusted this sacred
work to you. or the first time in twenty
years the interests of the State in ali it's
branches has been delivered into the
hands OF a different political party. The
measures which yuu NAV deem wise may
be opposed II the methods heretofore
pursued, ard N making changes {, can
ton you to consider carefully aId we'll
such changes as pertain TO the institu-
tions of the State, for the people Will
hold you responsive for the success or
failure Of such measures
Feeling assured that you have the in
terest of your State at heart, | submit
for your consideration brief observations
made from the different reports furnish.
ed me by the S:,.. officers.
SPECIAL TAX BONDS.
At last the Special Tax Bond cases
have been decided. The Supreme Court
of the United States in an opinion filed,
have affirmed the opinion Of the Supreme
Court of North Carolina in the cases of
Baltzer VS.. the State and Baltzer and
Taaks VS.. the State. These cases were
Of vital Importance to the people of this
State. The first involved the question OF
the validity Of the Constitutional amend
ment of 1880, which prohibited the Cen
eral Assembly from paying or assuming
any Of the State bonds commonly known
as Special Tax Bonds, Of which there are
about ST., 100000 outstanding. The 9th
er case involved q claim OF S2lT 900
against the State growing out of the
dealing between the State and the Chat
ham Railroad Company, when the State
issued $2000,000 OF its bonds in exchange
for mortgage bonds Of the railroad. The
decision of the United States Supreme
Court was in favor of the State in both
cases, and settles for all time to come
the question OF the non-liability Of the
State for the bonds fraudulently issued
by the reconstruction convention Of 1868
and the legislature that followed it. The
people are to be congratulated upon this
favorable termination Of this long contin-
ued and threatening litigation.
STATES SOURCES OF REVENUE.
There are two methods used in leyying
taxes, one the ad val0rem on all real and
personal property according to its assess
ed value, the other a privilege tax impos-
ed on various vocations for carrying on
the business specified. The general or
public fund of the State, so distinguish
ed from other funds and set apart by law
for specific objects, is created by taxes
raised by both methods, from which must
he met the general expenses of the State
government. l will designate for better
information, the various objects depend
ent upon this fund: The expenses of the
General Assembly, Executive and Judi
cial Departments, Railroad Commission
Bureau Of Labor Statistics, Agricultu-
raj Societies, conveying convicts to the
PenitentiaIy, rewards and advertising
for fugitives care Of the public buildings
and grounds, interest ON the per cent
debt, the various schools, institutions and
asylums supported or aided by the State,
printing and the general contingent ac-
count. The estimate Of expenses for all
objects dependent upon this fund, made
by the public Treasurer, for the current
year, is $685. $50. Deducting the estimate
for the Legislature for one year, makes
the average for the two years, according
to the Treasurer, $S21, $50 per year.
A correct knowledge of the resources
of the State from which this fund must
be derived is necessary to enable the
General Assembly to act intelligently in
providing means to secure it. According
to the report OF the State Auditor, the
tax valuation of all the real and personal
propery Of the State is $257, ,437, ,227. 90.
On this valuation, one cent levied on the
800 OF value will derive $25, ,743.72 less
EXPENSES OF collection. To produce the
1921 $50 per annum from this source
alone will require levy Of 33 cents on
the S100 Of value. From this, however,
should be deducted the amount represent
ed by the revenue derived from privilege
tax, under schedules 'B" and GO" The
Auditors report shows this amount for
the past year to have been $50, 1861.
This would reduce the above levy 315
cents, to 2912 cents. There was also re-
ceiyed last year over one hundred and for
ty thousand dollars from dividend on
States stock in the Atlantic and North
Carolina railroad, fees from various
sources, Secretary Of States office, seal
tax, etc, INDECENT pupils, license tax on
banks, building and loan associations, in
companies, etc. Taxes from these
sources are contingent and cannot abso-