Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1902-11-13
GOV. rERRELL,s FIRST MESSAGE.


Governor TerreIrs first messages to the
general assembly which was read to-
that body last week. is. we are pleased to.
see, a clear-cut business document. 1t is.
free of all frin; all effort to conceal'
thought in language. It does not attempt.
to go beyond the urgent needs of the hour.
It is a straight-from-the-sh talk
about things that demand the attention Of.
the legislature right now. The tone of it
Is gratifying because It indicates that We
are TO have a business administration dur
ing the next four years.
Governor Terrell deals In HIS first mes
sage with only seven suDyects-limitation
OF the tax rate, taxation of franchises,
pay of school teachers, the common
schools, exemption OF college endowments
and the establishment Of agricultural col
Ieges in each congressional district of-the
state.
His views on all these things are clear
cut. He simply points out the evil and
then proposes the remedy. 1t is for the
legislature to do the rest. And it is to be
hoped that body win deal with these mat
tiers in the same common sense, direct
manner that the states chief executive
has dealt with them.
The two matters or paramount import
ance brought by Governor Terrell to the
attention Of the legislature are the propo-
sition to limit,th tax rate to mills and
10 levy a tax on franchises.A Indeed, they
might, in sense, be considered. as one
proposition; for by taxing franchises it
becomes an easy matter to limit and even
lower its tax rate.
There is a manifest danger and injustice,
as Governor Terrell forcibly points out.
in placing no limitation upon the state tax
rate. without such a limit extravaganza
is too easily possible, and unnecessary
burdens may be too often placed upon the
people. The same principle should apply
to the state as applies to the conduct of
a prudently managed business enterprise
or TO a careful individual in the manage
ment of his affairs-that portion Of its in
come which may be used for expenses"
should be fixed 1t becomes easier, then,
for it to live within its means. 1t is not
so liable to run into excuses. The legisla-
ture viii know each year what it has to
spend. and it can the more easily make
proper and fair division Of 1t.
Governor TerrelPs idea that the tax rate
should be limited to mills, exclusive of
the levy for the sinking fund, seems hber-
al enough; at the same time, it is con-
servatIve. II means a reduction Of about
one-tenth Of a mill on the present rate Of
$50. 1t has been found that this amount
is adequate to pay the expenses Of the
state as at present run, and based on pres
ent property values.
But It does not mean that the rate may
not be lowered. On the contrary, the next
proposition put forth by Governor Terrell.
that Of taxing franchises. shows how the
rates may be still further reduced. With
the enactment Of a proper franchise tax
measure the rate need never reach. even
5 mills again.
The Journal has before urged the adop-
ton OF such measure. For several years
it has contended that. the valuable fran
chises held by the various corporations
OF the state should be taxed. We are par
ticularly pleased, therefore. to see this
proposition receive such powerful support
as that which comes from Governor Ter
rell. u f&s+. -+-s
The taxation OF franchises is right. It is
entirely just. No honest objection can be
made to It II franchises are anything,
they are property. They are property be
cause they have value They have their
value just as much as the machinery and
/ rolling stock and road bed and poles and
wires Of the corporations that own them.
In some Instances they are actually worth
far more, Stock or bonds are issued based
upon the value of the franchise the same
as upon anything else. But the physical
property pays taxes while the franchise
does not. Under the present law it is inn
possible for the tax gatherer to reach
them. Governor Terrell points out a sim