The Savannah morning news., 1902-11-30
A FRANCHISE TAX.

TO be done to make the states revenues
sufficient for her expenditures before
tax is placed upon franchises, for
two reasons. The first reason is that
| most of the franchises, with the excep-
ton of those of the steam roads, are
owned in the cities. and the cities now
pay the great proportion of the taxes.
The second is that the state is in a
! condition of development, and excess
sIve taxation of her developing forces
would tend to arrest her development.
Although an old state Georgia is only
beginning to be the home of corpora
tons, having franchises that are Of
great value. In this respect she Is
unlike New York. Pennsylvania and
other Northern states. There the ac-
| cumulated wealth and great popula-
/ ton make franchises extremely valua-
BILE, yet in only a few of these states
are franchises taxed.
AS stated the taxation of franchises
will be mainly burdensome to taxpay-
ers of cities, and the cities are now
taxed much heavier in proportion to
| their actual wealth than the rural dis
tricts. The cause of this is that the
cities require large revenues for mu-
nicipal purposes, and the city asses
! sors assess property at about it's ac-
| tual value. The tax receivers take the
/ city assessments as a basis for MAX
ing their returns.
The things which the Legislature
! ought to do before taxing franchises
are the following: 1t should provide
for the equalization of taxation. for
placing pensions upon an INDECENT ba-
sis and for lessening the cost of max
ing the laws. There is no doubt that
if there were a just system of assess
ment the total of the tax returns
would be very much greater than it
! is. Indeed, there are reasons for
thinking the returns would be suffi-
| Gent to yield all the revenue the state
needs.
We have pointed out a number of
times that it is the duty Of the Leg
islature to put pensions on an INDECENT
basis. The assertion is made and not
contradicted that very large proper
ton of those drawing pensions are
well able to take care of themselves
| are, in fact, not in need of assistance
from the state. 1t is not the inten-
ton of the people that a pension shall
be paid to IA person who has a COM
Portable income or who is able to earn
| living. Why then is it that the Leg
islature refuses to take the necessary
| steps for putting pensions upon an in
| digent basis?
That the cost OF making the laws
can be reduced with benefit to the peo-
pie there is no doubt. Biennial ses-
sions of the Legislature would save a
good many thousands of dollars a year.
Georgia is one of the very few states
which have annual sessions. The states
which have abolished the annual ses-
sion could not be induced to
go back to it. Even under the bien-
NAL system there is more legislation
than is good for the people Let the
Legislature institute the reforms we
have mentioned and there viii be no
need for tax on franchises.
! 1t is thought by the advocates of a
! ~ oiANhiSC AttA LAlAl d very great IN
crease in the revenues would be de-
rived from a tax on the franchises of
railroads, but. as a matter of fact, are
not the railroads now taxed pretty
nearly to their limit? 1t will be re-
called that in most of the cases in
which the Controller General has in
creased the assessment of railroads, he
has not been sustained by the arbitra-
ton boards. 1t is true that most of
the roads are bonded for more than
/ the amount for which they are assess
ed, but. in some cases, a larger part
of the stocks and bonds have only a
prospective value. They yield no in
come.
The wiser plan for the Legislature to
adopt is to afford every opportunity
for the upbuilding of the state-for the
development of her resources. Excess
siVe taxation is like a drought: it
dries up the sources of the supply.
Besides, franchise tax means liti-
gation-litigation which might last for
several years. The only safe plan for
this year at least is to keep the APP
preparations within the revenue that
can be depended upon. 1t would be a
mistake to make appropriations based
upon a franchise tax.