The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-11-04

Proposed Tax Exemption for Prop
erty Devoted 20 Education.


erty Devoted 20 Education.
Mr.. J. P. Williams has undertaken a
movement which is of great interest to
the friends of education in Georgia. He
has requested a legal friend to draw up
biR TO be introduced in the Legislature ex-
empung from taxation all property, the
income Of which is devoted to educational
purposes
Mr.. WIN ans is a trustee of Emory Col
lege, and the herdships work upon the
various colleges Of tie state by being re-
quiTed TO pay taxes upon the full value Of
their endowment funds and other -oper-
ty the income Of which is devoted to tax
alton has brought very forcibly o us
mind the desirab1ity Of some legislation
which win afford relief to The educational
institutions If he STATE Under he gen.
eral law Of the state, N school houses ond
other property de- oted Immediately 10 tha
purposes Of education is exempt from tax
alton, but this does not include the in
vestments of the colleges and sectarian
schools generally.
There are In this state" said Mr. VIII
Hams, in sIeak.ng Of the matter yester-
day, several magnificent institutions for
the education of c0loIed youth, endowed
and supported by Northern capital Tie
corpus of the endowments of these insti-
tutions is not invested in this state, but IS
for the most part in bonds and other Sc
curities held in the Northern states, where
the laws relating to the taxation Of such
securities are more beraf than they ule
IN Georgia. In consequence of his III sc
Institutions receive tie benefit OF pTlc-
1caily the entire income from their en-
dowments The contrary is the case wi.h
the white educat onal ms tutors of this
state, which are not under state control.
Their endowment funds are for the most
part invested in lie stale and the trustees
are compelled to return these properties
for taxation al a fair valuation. In The
first pace, for he purpose # safety, these
endowment funds are invested in the most
reliable securities which ratura1y 60 not
yield a high rate of interest although en-
Joying a high value in the market. When
the taxes due TIE state are deducted from
the gross income from these investments
there is a veEy great reduction in the re-
turn from the endowments.
Take for insance, the case of Emory
College. With an endowment of about
$3.50. 600, its gross income from this source
is about $110O1 From this sum, however,
must be deducted between $1,000 and 1000
purposes, or about per cent. on the in
vestment. Emory is only one Of a number
of colleges and schools in the state which
is affected by this state OF affairs. 1t is
true that the majority of these are sec
tartan institutions This should be no ar
gnment against an exemption in their ia
vor by the state. Every educational in
Stitution in the state, whether under sec
tartan control or not is a valuable ad-
junct to the educational forces of the
state. This is day of education, and
we have not one school or college too
many. Anything which hampers or cripples
these institutions in their work is an in
jury to the educational interests of the
state. While the total amount collected in
taxes by the state from these endowments
is but a bagatelle, compared with the
states revenues from other sources, the
sum collected from each is an important
consideration to the institution. The lin
tied resources of our educational insttu-
tons is but too well known.
"a point worth considering in this con-
nection," said Mr.. Williams. 'is that the
small return from these endowments fur
nishes no irlucement TO men of wealth
! who are favorably disposed to such institu-
lions and willing 10 aid them with their
means to bestow large sums in endow-
ments. When they learn of the small BEN
| ehts derived from such endowments they
are likely TO bestow their means in other
! directions where they may think better
results will be obtained With the knowl-
| edge that the full income derived from
! such investments would go to the benefit
| of tho institutions there would be a great
| err readiness on the part of men with
means to bestow their wealth in this man
ner."