Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1909-09-10
6. M. Hitch Makes Reply
To Hon. ]. r. Anderson,

Editor Atlanta Journal:
Since my return to Atlanta few days
ago, after an absence OF several weeks
from the city, l have seen the statement
printed in the Atlanta Constitution on
August p, by the Hon. J. Randolph An
derson. Of Savannah, relative to the con-
dition of the state treasury. In his state
ment Mr. Anderson uses the following Ian
guage:
'"The actual facts could not be ar
rived at accurately and definitely for the
startling reason admitted to me both by
the comptroller general and the treasurer,
in the conference l had with them on Au-
gust 10, that not once during the two
years of Smiths administration had any
attempt been made to get up any state
ment or trial balance of the treasury 10
find cut how the current resources COM
pared or would compare with current LA
bilities for the period ending December
81, 1909. This may have been also true
Of former administrations, but is no ex-
cuse for its not having been done by
great reformer and reform administration.
Imagine what would happen to any large
business concern If it attempted to run
along for two years without ever onoo
trying to find out IL it's current resources
were sufficient to meet its liabilities.
! Both the comptroller general and the
treasurer admitted to me that there was
large deficit existing on July !, 1909.
What 1t actually was no one knew or
could tell. for the reason stated. They
estimated that 1t was at least 100000 and
might be 100000. Now you know, OF
course, that the financing of the state
( treasury for the years 1908 and 1903 was
done by the tax acts and the appropria-
ton acts of 1907, and Smiths administra-
| ton is, therefore, responsible for the con-
dition of the state finances during that
period, up to January, 1870"
| 1 am surprised that a lawyer of Mr.
Anderson's reputation shou:1 make such
an unjust and uncalled for criticism of
Governor Smith. The evident purpose Of
his communication was not so much for
showing the real condition of the state
treasury, as II was to criticise the admin
istration of Governor Smith.
/ 1 have had the honor of serving under
three administrations, and can truthfully
say that no governor under whom nave
served showed greater interests or zeal
in safeguarding the financial interest OF
the state than did Governor Smith during
his administration. Before his admins
ltration II was the custom to simply re-
quire quarterly and annual statements
| from the state treasurer, but during his
administration Governor Smith went to
the extent of requiring monthly state
ments from the state treasurer and at
was connected with the entire admin
istration of Governor Gambler and with
| two years of Governor TerrelPs. During
| six years before the administration of Gov
| ernor Smith 1 had charge OF what was
called the warrant department in the gov
ernors office, and l drew the warrants
\ which governors made upon the treasury.
! was one of the secretaries in the gov
ernor's office under the administration or
Governor Smith and again had charge
of the warrant desk.
MUST BELIEVE THAT MR.. AN
DERsON misunderstood THE
| COMPTROLLER GENERAL AND THE
TREASURER If HE THOUGHT THEY
STATED THAT NO COMPARATIVE
! STATEMENT OF CURRENT RE-
| SOURCES AND LIABILITIES WAS
| PREPARED DURING THE ADMINS
TRATION OF GOVERNOR SMITH.
| Befgore his Inauguration he and I be-
gan an investigation of liabilities and re-
! sources of the state for the balance OF
1907. When he rendered me the position
/ of warrant clerk he stated that he desired
the benefit of my experience to aid him
In the warrant department and in the
study Of liabilities and resources.
BEFORE THE END OF THIRTY
| DAYS AFTER HIS INAUGURATION
| HE AND HAD WORKED OUT To-
| GETHER A COMPARISON OF APPRO-
PRIATIONS AND RESOURCES FOR
| THE BALANCE OF 1907. This was done
again for the whole of 1908 before the
| first of 1908. Comparisons of liabilities and
resources were made several times in 1908
| and 1909 and up to the time of the retire.
ment of Governor Smith from office.
consider myself an expert accountant,
but an estimate of resources and liabili-
ties for the purpose of financing the state
! REQUIRES MORE THAN MERE
/ KNOWLEDGE AS AN EXPERT AC-
| COUNTANT. Appropriations are made
with an elasticity of time for their pay
ment. An appropriation for 1903 can fire.
1 quently be carried over with no injury to
the state until early in 1910, and under the
| law can be carried over until July 1 of
each year after the year for which The
\ appropriation was made. Many appro-
priations are indefinite as to the time of
their payment and can be extended in the
discretion of the governor.
The revenues of the state largely come
| from the ad valorem taxes. They are
payable from the LIST of October until
1 the goth of December before the tax
payer is in default and even after that
| the tax collectors do not complete their
settlement with the comptroller until in
the spring. The ad valorem taxes of the
state are not payable upon specinc day
| but their collection runs through six
months of time.
All appropriations are made in antici-
patton of the revenue to be collected dur
ing the year of the appropriations. The
revenue of the year is Principally col
lected in December and January. Febru-
airy is even a big month or collection of
taxes for the year preceding.
| 1 am thoroughly familiar with the
| financial condition of the state. Their
WAS NO DEFICIT IN 1908. There was
a liability the first of January 1905 for
the common schools, payable when the
| county school commissioners obtained APP
prevail by the state school commissioner
of bills for school work actually done,
which could amount in round numbers to
100000. Part of this was not due be-
cause vouchers had not been filed by
county school commissioners.
| The books of the treasury and the
| school commissioner agreed on this
amount. The books of the comptroller
general showed about 100000 more. This
variance grew out of the fact that sew