Mexico Missouri message., 1903-01-15

The constitutionality of the act pro-
yiding for the taxation Of collateral
inheritances, legacles. gifts and con
veyances in certain cases, to provide
revenue for educational purposes, for
the maintenance and support of the
Missouri State University and its De-
partments," has been sustained by the
Supreme Court
The first payment into the State
Treasury under this statute was made
on the 31st Of January, 1900. Since
that date SAT- 03457 has been received
on this account, s347,627 being ap-
portioned TO the State University and
$50 ,4O6.94 TO the Rolla school Of
Mines.
The last General Assembly appro-
priated S304 10000 Of this tax for the
benefit of the State University and
SS7,000.00 to promote the interests OF
the School Of Mines at Rolla. These
appropriations were additional to the
1884, 10000 appropriated from the State
Revenue Fund to meet the salaries and
current expenses OF both the Univer-
slty and the School of Mines.
1t is estimated by State Auditor
Allen that the income OF the University
and School Of Mines under the pro.
visions OF tho collateral inheritance
tax law will not be less than $780,
10000 yearly.
ESTIMATED INCOME.
Auditor Allen also estimates that
the total receipts into the State Treas
ury, on account Of the State Revenue
Fund, will be about s. 500 900 for the
ensuing biennial period.
! recommend that the appropriations
for all our State institutions be as
generous as may be, consistent with
the revenues of the State A sound
public policy, however, absolutely and
infexibly commands that the total OF
the appropriations be brought within
tho limits Of our estimated revenues.
STATE INDEBTEDNESS
The outstanding debt of the State
on January 1, 1901, consisted OF
1887 10000, three and one-half per
cent refunding bonds and $4,39S ,S39.42
school certificates OF Indebtedness.
Since January /, 1901, 100000 of
additional certificates have been issued
100000 in favor of the Seminary
Fund and 100000 added to the en-
dowment of the School Fund. This
increase of school certificates has
been Offset by the retirement of an
equal amount of bonds.
The bonded debt of the State has
already been reduced $1,4OO,OOO dur
ing this administration, the outstand-
ing debt being only $4S7,O00.OO at
this time. In addition to the reduc-
ton of the principal of the debt,
S592,751.12 has been applied to meet
the interest upon the bonded debt ard
school certificates.
The people of this State are to be
congratulated upon the inspiring fact
that the last of the outstanding bonds
will very soon be paid. Thirty years
ago Silas Woodson was inaugurated
Governor of Missouri At that time
the bonded debt was $21, 76S, 100000,
the tax rate being fifty cents on the
one hundred dollars valuation. Slow
ly, but certainly, this debt and interest
has been liquidated, while the tax
rate has been reduced just one-half
The final and complete extingulshL
ment of the bonded debt, to be con-
summated and announced at an early
date, will be the occasion of great re-
ioicing among the taxpayers of Mis-
souri,. In addition to the payment of
the outstanding bonds, Missouri has
set apart $1,OOO,OOOOO from the Sink
ing Fund to meet the requirements of
the Worlds Fair appropriation.
SCHOOL CERTIFICATES.
The State certificates of indebted
ness, commonly known as school GER
tificates," now amount to $4,398 ,S34.42.
The school fund amendment recently
adopted by the people, requires the
Legislature to extend these certificates
as they mature for such periods of
time and at such rates of interest as
may be provided by law. It also re-
Quires the Legislature, upon the pay
ment of the State bonded debt, TO
reduce the rate of State taxation to
meet the requirements of the public
debt from ten cents on the one hum
dred dollars valuation to not exceed
ing three cents on the one hundred
dollars valuation. That is to say, with
the extinguishment of the bonded
debt, all the requirements of the Con-
stitution in respect to the public debt
will have been fully met when the
Legislature provides q sufficient
amount annually to pay the interest
upon the school certificates, which now
constitute an endowment fund for the
; benefit of Missouri's magnificent edu-
cational system.
The interest charge upon the Treas
ury on account of the school certih-
Gates will amount in round numbers,
to $260O0O.00 annually. Upon the
; basis Of the present assessment of the
taxable property of the State, levy
of two and one-half cents on the one
, hundred dollars valuation will be