The morning news. [volume] (Savannah, Ga.) 1887-1900, 1898-11-10
WRIGHT'S PLAN TO RAISE REEVE
ME-

Wright TO raise revenue is not one which,
in our opinion, would greatly assist the
state in getting out of her financial jiffi-
culties. The plan is to compel holders Of
securities of all kinds to register them with
The ordinaries or county commissioners
Of their respective counties, giving their
market and their face values, and making
them non-coliectable through the courts
unless returned for taxation. No doubt
a great deal of personal property of one
kind and another. subject to taxation IN
der the rulings of the courts, now escapes
the tax burden, but the amount is not
nearly so great as the controller general
thinks il is. If all Of it were to be Iut
on the tax receivers books, the increase
in the states income would not be any
where near sufficient 10 meet the states
needs.
And what would happen if the proposed
plan were adopted? What has happened in
respect 10 the debeniures Of the Atlanta
and West Point Railroad? Until recently
these securities were regarded as exempt
from taxation. When it was ordered chat
they be taxed, the holders began to sell
them. Ii is safe 10 say that within year
or two few. if any, Of them viii be held
in the state What is happening in respect
10 these debentures would happen in re-
spect to about all other kinds of securi-
lies They would be sold out of the state.
First class bonds now pay only an aver
age of per cent. The states 3la per cent.
bonds are selling for considerably above
par. Five per cent. railroad bonds of the
second class do not command anywhere
near par. In the cities, particularly this
city. the rate of taxation is over 21s per
cent A man who holds per cent bonds
has to give more than half
of his income from them for
taxes. In fact, the holders of per
cent. bonds have to give the larger half
Of their incomes to the state. Does the
controller general thinks it possible TO de-
wise a plan that would make all the hold
ers of securities give up the greater part
of their income for taxes? Is it right that
so great part of persons income should
be taken for that purpose?
And 1t must not be forgotten that the
taxation of bonds and mortgages and most
other kinds of securities Is double taxa
ton. Real estate is taxed at its market
value. No allowance is made for the mort
gage that may cucumber 1t. And then the
mortgage is taxed. That is double taxa
ton. The same is true in respect to rail-
roads. The roads are taxed in each county
for state, county and. where they enter
cities municipal purposes. And yet the
bonds of the roads, which represent the
value of the roads, are also taxed.
In most states where bonds and mort
cages are taxed real estate is taxed only
to the extent that 1t is not encountered.
In other states, Pennsylvania for In
is very light. On bonds, mortgages and
money in the state named the tax rate Is
only one-fourth of one per cent. That is
the kind of taxation the trainers of the
constitution intended to have in this state.
If that intention were carried out 1t is GER
tain that the state would be benefited
in many ways Securities would be more
generally held in the state, and would be
given in freely for taxation The controller
would not be talking of a drastic plan for
reaching securities for taxation which are
supposed to be hidden from the tax re-
ceiver. Would il not be well for the mem
bers of the legislature to study the tax
laws of some of the other states before
undertaking to reform the tax laws of
this state?
The legislature has a difficult problem
TO solve in the states financial affairs.
The legislature that passed the law pen
sioning Confederate veterans and the wild
ows of veterans acted without knowl-
edge of the extent of the burden II was
putting upon the state. If IL had known
how great an appropriation 1t would re
quire annually to pay the pensions it would
have hesitated a long time before passing
the pension bill in the shape in which
ii was passed.
But, as matter of fact, are there not
many on the pension roll who are not en-
titled to be there? Has the care been OK
ercised in examining applicants for pen
sions there should have been? 1t is lot
difficult q find those who think there has
been great carelessness, or else favorite-
ism. Would it not be we'll for the legis-
lature TO look into this matter? An inves-
tigation might show that there is no need
for reducing pensions, as some of the mem
bers of the legislature propose. Ii would
be difficult of course, to get at the truth
in respect to pensioners, but the truth
can be had, and it ought to be had in jus
tice TO those really deserving pensions.
And what does the legislature propose
to do in respect to equalizing taxation?
Docs 1t not know that more than half-
yes, more than two-thirds-of the counties
draw more out of the treasury than they
pay into it? Why is this? Is it not be-
cause the valuation in those counties which
do not help TO support the state are only a
fraction of what they ought TO be? If prop
ortv were taxed at about It's market VaIue