Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1902-11-10
Chief Executive Declares
Strongly For the
Taxation Of
Franchises.


out strongly for the limitation OF the
tax rate. for the taxation OF franchises
and for common and agricultural schools
II. reference 70 the tax rate the govern
or recommends that the legislature SUD
NIT a constitutional amendment limiting
the tax rate 10 five mills exclusive OF
the sinking fund. The section on the tax
alton OF franchises is OF deep interest 10
the whole state. while the executives re
marks in connection with the scnoois
OF the state viii likewise be closely read
The message is as follows:
NOVEMBER s. 1s2
To the General Assembly OF Georgia;
The body OF our laws represents 10 an
unusual degree the marured wish OF the
ueoole Of Georgia. and, in entering upon
the discharge OF your legislative duties,
you are not confronted with demands for
many or radical changes Annual sessions
~ the legislature have made IL easy 10
enact new statutes as well as 20 amend
or repeal old ones. 50 as TO supply onis-
sionS or cure defects disclosed oy eNpe-
rience and In consequence. we have
system lust simple. and In every way
suited 70 the genius and spirit Of our peo-
pie.
Bat there are a few special subjects TO
which I desire 10 call your attention.
Their inherent importance VIII gain for
them Your careful deliberatiOn; ana the
in distinct and unmistakaole terms, ex-
pressed their wish in reference thereto.
VIII tend 70 remove many questions as 10
what should be done and leave your task
largely that OF determining how the de-
sired end Is 20 be ACCOMPLISHED
Limitation Of Tax Rate.
First in importance is that OF limiting
the rate OF taxation. The constitution OF
1g77 was framed in accordance with the
Ham form
OF government. and aimed at an econom-
teal administration OF the affairs OF state.
IL contemplated the payment OF the nee
essary. expenses OF the legislative. execu-
tive and judicial departments; the pay
ment OF the public debt; proper pension
for those entitled thereto; the support OF
the public schools. and the protection or
the state IN time OF war. IL prohibited ap-
propriations OF taxation for other purpos-
e. II recognized that there would be
many claims on the public treasury. and
thSt many Of them might be for good and
worthy purposes. But. In view OF the n
nancIal conditions surrounding the state.
II drew the line, and fixed definitely the
purposes for which the peoples money
might be spent. intending TO secure them
for all time against the burdens or Excess
sfve taxation. But. 50 long as there Is, no
limit 10 the amount which may be spent
on the objects named in the constitution.
there Is no limit to the amount which
may be raised By taxation In order per-
fectiv to secure the end designed BY the
convention. and demanded by the people in
the last election. there must be limit on
rne annual tax rate and l therefore sug-
gest that this general assembly submit a
constitutional amendment limiting the tax
rate to Eve mills. exclusive OF the sinking
fund and what may be needed for the pro-
lection OF the state in time OF instruction
or war.
Taxation of Franchises.
Closely allied to Limitation on the rate
OF taxation IS the duty OF providing a
method By which all property shall be
made TO bear its fair share OF the public
burden. With a few exceptions. the con-
stitution provides that all property shall
be taxed. IN the main. this provision is
carried into effect-though no system has
ever been devised which is perfect in its
application. and. in spite % the most care
fully drafted tax acts. there are unavoid-
able omissions and a want OF that perfect
equality and uniformity towards which
the law-making power constantly aims.
But there Is a class OF franchises held BY
certain Quasi-public corporations which.
though valuable in themselves and adding
value 10 the capital stock. have. in the
past. escaped taxation because OF a want
OF a provision in the statutes requiring
these franchises 10 be returned or assess
ed Being property. these franchises are
as subject TO taxation as any other prop
erty under the constitution. and. in view
OF the fact that they generally represent
privileges which are more or less exclu-
sive and which have been given TO the
corporations without money and without
price, there Is a peculiar justice in sub
5scting them 10 the tax laws. II viii be
for you TO determine how the taxable
value OF these franchises Is to be estfmat-
d Il fsra
IS no need for any great change in the
present machinery OF the tax law. IL will
probably be Sufficient 10 amend section 757
volume 1. OF the code so as 10 include all
franchises. whether OF resident or non-res-
fdent corporations doing business in this
state. which add value TO the capital
stock or 70 the tangible property OF the
corporation. A further amendment To
sections 10 and SOC OF the code may be
necessary 80 as 70 require officers making
returns for corporation TO state the
value OF the corporate franchise exclusive
Of its other corporate property" The
simplicity OF this method win commend
itself II win probably avoid many cues
lions which would otherwise arise from
the enactment OF new statutes containing
untried and untested methods. IL viii
provide an easy and practical means Of
determining what the franchise is worth.
for. II there Il any disagreement as TO
EuCn Value NdM DC teNLleQ uN arDltra-
tiOn. as all other differences OF a like ma
ture between the taxpayers and the
comptroller. or the taxpayer and the tax
receiver are now settled.
Salary Of Teachers.
In practice. the school year and the
fiscal year do not coincide. The teachers
for work done this year must be paid out
Of taxes 10 be collected next December
and January. This has caused a serious
disturbance IN the states finances and
been the occasion Of great hardship to
the teachers and detriment TO the schools
] suggest that the SI22O7s now I'm the
treasury TO the credit Of the public prop
erty fund be appropriated 10 the payment
OF interest on the public debt. and that
a Ike sum already collected by taxa
ton for paying interest be now applied
70 the payment OF teachers salaries. This
will enable the general assembly, by econ
omy in appropriations. 10 pay the teach
ers monthly in accordance with their con-
tracts during 1893, and during future
wears. by providing permanent loan fund
OF 10000 10 be transferred 10 the school
fund in the spring and repaid when the
taxes are collected This fund can and
should be created from the money IN the
treasury collected for the payment OF in